On this page of StockholderLetter.com we present the latest annual shareholder letter from Heritage Insurance Holdings, Inc. — ticker symbol HRTG. Reading current and past HRTG letters to shareholders can bring important insights into the investment thesis.
Heritage Insurance Holdings, Inc.
1401 N Westshore Blvd,
Tampa, Florida 33607
April 25, 2024
To Our Stockholders
BUILDING RESILIENCE AND CHARTING GROWTH
First and foremost, I want to thank our stockholders that have had confidence in our strategy and our ability to
execute on that strategy, our Board of Directors which supported the strategy, our employees that executed on
our strategy, and our reinsurers who partnered with Heritage to provided sufficient reinsurance to pursue the
strategy. I assumed the role of CEO at the end of 2020 and recognized the need to respond to market conditions
by focusing our efforts on enhancing underwriting criteria, achieving rate adequacy, and managing exposure to
reduce both reinsurance and loss costs. I and my executive management team understood that it would take
several years for the strategy to begin to benefit the bottom line given the time it takes to earn rate throughout
the book of business and to effect the necessary underwriting changes. These focused efforts produced
meaningful benefits to the bottom line in 2023.
The conclusion of fiscal year 2023 marks a pivotal chapter in that effort, characterized by significant achievement
of strategic milestones, improved financial performance, and an unwavering commitment to continuing the
progress that we have made. This letter provides an overview of the strategic initiatives that propelled our
success, and a perspective on our enduring commitment to growth and stockholder value.
A key component of our strategy has been and will continue to be the focus on bottom line profitability. To
achieve this, we contracted our policy count in certain geographies, grew policy count in other geographies, and
increased rates throughout the book of business to meet the higher costs of conducting business. We focused
our growth in those areas where our rates adequately considered reinsurance cost, loss costs, and overhead to
provide much-needed products in the relevant market. The 2023 results reflect our adeptness at capitalizing on
market opportunities and effectively allocating capital to generate adequate returns.
Our operational achievements this past year were underscored by a strategic clarity that bolstered our financial
position and enabled us to pursue growth opportunities with precision. We are confident that this, coupled with
our strategic investment in technological advancements and process optimizations, will enhance our operational
efficiency, customer experience, and risk assessment capabilities.
Although I am pleased with our 2023 results, which include a return on average equity of 25.8% and earnings
per diluted share of $1.73, our mission continues.
As we venture into 2024, our strategic focus remains steadfast on generating underwriting profit across all
operational geographies, maintaining rate adequacy, ensuring selective underwriting, meticulous but fair claims
handling, providing products the market needs and fostering long-term reinsurance relationships. We remain
dedicated to driving stockholder value through consistent long-term earnings, underpinned by our strategic
profitability initiatives. In closing, the achievements of 2023 are a clear testament to our team's dedication,
strategic acumen, and operational discipline. We are appreciative for your continued trust and support, which
fuels our drive toward excellence and sets the foundation for our future success.
Thank you for your support and we look forward to sharing our progress and achievements as we continue this
journey of growth and success.
Sincerely yours,
Ernie Garateix
Chief Executive Officer
 • shareholder letter icon 4/25/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 HRTG Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon HRTG Benford's Law Stock Score = 95


HRTG Shareholder/Stockholder Letter Transcript:

Heritage Insurance Holdings, Inc.
1401 N Westshore Blvd,
Tampa, Florida 33607
April 25, 2024
To Our Stockholders
BUILDING RESILIENCE AND CHARTING GROWTH
First and foremost, I want to thank our stockholders that have had confidence in our strategy and our ability to
execute on that strategy, our Board of Directors which supported the strategy, our employees that executed on
our strategy, and our reinsurers who partnered with Heritage to provided sufficient reinsurance to pursue the
strategy. I assumed the role of CEO at the end of 2020 and recognized the need to respond to market conditions
by focusing our efforts on enhancing underwriting criteria, achieving rate adequacy, and managing exposure to
reduce both reinsurance and loss costs. I and my executive management team understood that it would take
several years for the strategy to begin to benefit the bottom line given the time it takes to earn rate throughout
the book of business and to effect the necessary underwriting changes. These focused efforts produced
meaningful benefits to the bottom line in 2023.
The conclusion of fiscal year 2023 marks a pivotal chapter in that effort, characterized by significant achievement
of strategic milestones, improved financial performance, and an unwavering commitment to continuing the
progress that we have made. This letter provides an overview of the strategic initiatives that propelled our
success, and a perspective on our enduring commitment to growth and stockholder value.
A key component of our strategy has been and will continue to be the focus on bottom line profitability. To
achieve this, we contracted our policy count in certain geographies, grew policy count in other geographies, and
increased rates throughout the book of business to meet the higher costs of conducting business. We focused
our growth in those areas where our rates adequately considered reinsurance cost, loss costs, and overhead to
provide much-needed products in the relevant market. The 2023 results reflect our adeptness at capitalizing on
market opportunities and effectively allocating capital to generate adequate returns.
Our operational achievements this past year were underscored by a strategic clarity that bolstered our financial
position and enabled us to pursue growth opportunities with precision. We are confident that this, coupled with
our strategic investment in technological advancements and process optimizations, will enhance our operational
efficiency, customer experience, and risk assessment capabilities.
Although I am pleased with our 2023 results, which include a return on average equity of 25.8% and earnings
per diluted share of $1.73, our mission continues.
As we venture into 2024, our strategic focus remains steadfast on generating underwriting profit across all
operational geographies, maintaining rate adequacy, ensuring selective underwriting, meticulous but fair claims
handling, providing products the market needs and fostering long-term reinsurance relationships. We remain
dedicated to driving stockholder value through consistent long-term earnings, underpinned by our strategic
profitability initiatives. In closing, the achievements of 2023 are a clear testament to our team's dedication,
strategic acumen, and operational discipline. We are appreciative for your continued trust and support, which
fuels our drive toward excellence and sets the foundation for our future success.

Thank you for your support and we look forward to sharing our progress and achievements as we continue this
journey of growth and success.
Sincerely yours,
Ernie Garateix
Chief Executive Officer



shareholder letter icon 4/25/2024 Letter Continued (Full PDF)
 

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