TAMPA,
Fla., Oct. 22, 2024 /PRNewswire/ -- Heritage
Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the
"Company"), a super-regional property and casualty insurance
holding company, today announced estimated losses for Hurricanes
Debby, Helene, and Milton.
Ernie Garateix, CEO at Heritage,
commented, "Our thoughts are with those impacted by the devastating
hurricanes that have ravaged so many communities across the
southeast. This has been a difficult storm season leaving millions
with significant damage and loss. At Heritage, we are working
tirelessly to support our claimants and communities to ensure they
have the necessary resources to quickly rebuild. I am especially
proud of our employees from across our company who have been
providing a rapid response to our claimants as well as the
thousands of adjustors that we have in the field who are supporting
our customers daily."
Third Quarter 2024 Estimated Catastrophe Losses
The
Company expects to incur approximately $48
million of net current accident quarter catastrophe losses
stemming from Hurricanes Debbie and Helene in the third quarter
2024. Despite the impact of the hurricanes, the Company expects to
deliver positive net income for the third quarter of
2024.
Fourth Quarter 2024 Estimated Catastrophe Losses
The
Company expects to incur approximately $57
million of net current accident quarter catastrophe losses
stemming from Hurricane Milton in the fourth quarter of 2024. On
the day after Hurricane Milton struck Florida, the Company had assembled claims
handing resources in several locations including over 2,000
adjusters and more than 200 emergency service vendors ready to
assist our policy holders. Twelve days following the storm the
Company has received 5,435 claims with the average wait time for
policy holders calling in their claims of under one minute. The
reported claim count for Hurricane Milton is just under 50% of that
experienced during Hurricane Ian during the same time frame.
Mr. Garateix continued, "Overall, we are in a strong financial
position and backed by a $1.30
billion reinsurance tower. We expect gross losses from
hurricane Milton to possibly reach the third layer of our
reinsurance tower which starts at $450
million and goes to $914
million. We continue to maintain a robust level of
reinsurance coverage through year end 2024. Importantly, the
strategic actions that we have taken over the last three years have
helped to mitigate our losses from significant events like the
three recent hurricanes. These actions which include rate adequacy,
exposure management and underwriting discipline will enable
Heritage to continue to support our customers as well as, we
believe, further expand our business for years to come."
Third Quarter 2024 Earnings Dates
The Company will
announce third quarter 2024 financial results after the market
closes on Wednesday, November 6,
2024, followed by a 12:00pm ET
conference call on Thursday, November 7,
2024.
Conference Call Details:
Participant Dial-in:
1-888-346-3095
International Dial-in: 1-412-902-4258
Webcast:
A live audio webcast of the earnings call
will be available in the investors section of the company's
website. The call will be archived and available for replay.
Financial information, including material announcements about
Heritage, is routinely posted on investors.heritagepci.com.
About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property
and casualty insurance holding company. Through its insurance
subsidiaries and a large network of experienced agents, the Company
writes approximately $1.4 billion of
gross personal and commercial residential premium across its
multi-state footprint covering the northeast, southeast,
Hawaii and California excess and surplus lines.
Forward-Looking Statements
Statements in this press release that are not historical facts
are forward-looking statements that are subject to certain risks
and uncertainties that could cause actual events and results to
differ materially from those discussed herein. Without limiting the
generality of the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "intend," "could," "would," "estimate,"
"or "continue" or the other negative variations thereof or
comparable terminology are intended to identify forward-looking
statements. This release includes forward-looking statements
relating to the impact of recent hurricanes including the expected
net current accident quarter catastrophe losses stemming from
Hurricanes Debbie, Helene and Milton; the availability of our
reinsurance tower and our ability to expand our business in the
future. The risks and uncertainties that could cause our actual
results to differ from those expressed or implied herein include,
without limitation: more extensive losses from Hurricanes Debbie,
Helene and Milton, the success of the Company's underwriting and
profitability initiatives; inflation and other changes in economic
conditions (including changes in interest rates and financial and
real estate markets), including changes that may impact demand for
our products and our operations; lack of effectiveness of
exclusions and loss limitation methods in the insurance policies we
assume or write; inherent uncertainty of our models and our
reliance on such models as a tool to evaluate risk; the impact of
macroeconomic and geopolitical conditions, including the impact of
supply chain constraints, inflationary pressures, labor
availability and conflicts
between Russia and Ukraine and in
the Middle East; the impact of new federal and state
regulations that affect the property and casualty insurance market
and our failure to meet increased regulatory requirements,
including minimum capital and surplus requirements; continued and
increased impact of abusive and unwarranted claims; the cost of
reinsurance, the collectability of reinsurance and our ability to
obtain reinsurance coverage on terms and at a cost acceptable to
us; assessments charged by various governmental agencies; pricing
competition and other initiatives by competitors; our ability to
obtain regulatory approval for requested rate changes, and the
timing thereof; legislative and regulatory developments; the
outcome of litigation pending against us, including the terms of
any settlements; risks related to the nature of our business;
dependence on investment income and the composition of our
investment portfolio; the adequacy of our liability for losses and
loss adjustment expense; our ability to build and maintain
relationships with insurance agents; claims experience; ratings by
industry services; catastrophe losses; reliance on key personnel;
weather conditions (including the severity and frequency of storms,
hurricanes, tornadoes and hail); changes in loss trends; acts of
war and terrorist activities; court decisions and trends in
litigation; and other matters described from time to time by us in
our filings with the Securities and Exchange Commission, including,
but not limited to, the Company's Annual Report on Form 10-K for
the year ended December 31, 2023 filed with the
Securities and Exchange Commission on March 13, 2024, and
subsequent filings. The Company undertakes no obligations to
update, change or revise any forward-looking statement, whether as
a result of new information, additional or subsequent developments
or otherwise.
Investor Contact:
Kirk Lusk
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
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SOURCE Heritage Insurance Holdings, Inc.
