Heritage earnings rose in the third quarter of 2026, with net income increasing 1.4% to $51.1 million from $50.4 million a year earlier, despite higher catastrophe losses.
Key Takeaways
- Pre-tax catastrophe losses were $15.8 million, compared with none in the prior-year quarter.
- Net premiums earned rose 5.4%, even as gross premiums written declined.
- Heritage repurchased more than one million shares in the year to date, CEO Ernie Garateix said.
Heritage earnings and underwriting losses
The insurer’s net weather and catastrophe losses for the current accident quarter rose to $33.6 million from $13.8 million a year earlier. The latest figure included $9.1 million in hurricane losses and $6.7 million in other catastrophe losses.
Net favorable prior-year loss development was $14.0 million, compared with $5.0 million a year earlier. The net combined ratio was 73.0%, little changed from 72.9%. A ratio below 100% generally indicates an underwriting profit.
Heritage’s third-quarter 2025 results recorded net income of $50.4 million and no catastrophe losses for that quarter.
Net premiums and investment income increase
Gross premiums written fell 3.1% to $322.8 million, primarily reflecting lower commercial residential premiums, partly offset by growth in personal lines. Gross premiums earned declined 2.5% to $352.8 million.
Net premiums earned rose 5.4% to $205.6 million because lower ceded premiums more than offset the decline in gross premiums earned. Total revenue increased 3.2% to $219.2 million, reflecting higher net premiums earned and investment income.
Net investment income rose 17.3% to $11.4 million, driven by growth in invested assets.
Share repurchases and growth
Garateix said the company had repurchased more than one million common shares in the year to date. He said Heritage saw selective growth opportunities across its markets while remaining selective where competition had intensified.
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This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
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