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Heritage Insurance Q3 revenue slightly beats estimates

By Reuters News


Overview

  • US property and casualty insurer's Q3 revenue grew 3.2%, slightly beating analyst expectations

  • Diluted EPS for Q3 rose 5.5% to $1.72, aided by share repurchases


Outlook

  • Heritage expects to capitalize on selective growth opportunities in new and existing markets


Result Drivers

  • CATASTROPHE LOSSES - Co absorbed $15.8 mln pre-tax catastrophe losses in Q3, including hurricane and Noreaster events

  • LOWER CEDED PREMIUMS - Revenue growth driven by reduced ceded premiums, aided by improved catastrophe excess of loss reinsurance pricing

  • HIGHER INVESTMENT INCOME - Net investment income rose 17.3% in Q3, driven by growth in invested assets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$219.24 mln

$217.34 mln (3 Analysts)

Q3 EPS

$1.72

Q3 Combined Ratio

73.00%

Q3 Expense Ratio

33.40%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "hold."

  • Wall Street's median 12-month price target for Heritage Insurance Holdings Inc is $39.00, about 7.7% above its October 27 closing price of $36.21

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 27 - Arch Capital Q3 net income falls, catastrophe losses rise

  • Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised

  • Oct 26 - Insurance brokerage Brown & Brown's Q3 revenue misses estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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