Heritage Insurance Completes Catastrophe Reinsurance Program Successfully
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Newsfilter
- Successful Reinsurance Program: Heritage Insurance has successfully completed its 2026-2027 catastrophe excess-of-loss reinsurance program, securing over $2.2 billion in limits, which demonstrates strong commitment from reinsurance partners and is expected to enhance the company's financial stability and market competitiveness.
- Significant Cost Reduction: The total cost of this reinsurance program is approximately $367.5 million, a decrease of $63.2 million from last year's renewal, and this cost saving will directly improve the company's profitability while providing funding for future expansions.
- Enhanced Multi-Year Coverage: The program includes $712 million of multi-year coverage, with $550 million obtained through fully collateralized catastrophe bonds, further strengthening the company's risk management capabilities and ensuring financial security in the face of natural disasters.
- Stable Loss Retention Levels: The company's loss retention levels remain at approximately $50 million for the Southeast and Hawaii, and $38 million for the Northeast, which will help maintain operational continuity when facing potential catastrophic events.
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Analyst Views on HRTG
Wall Street analysts forecast HRTG stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 22.000
Low
34.00
Averages
35.50
High
37.00
Current: 22.000
Low
34.00
Averages
35.50
High
37.00
About HRTG
Heritage Insurance Holdings, Inc. is a property and casualty insurance holding company. The Company primarily provides personal and commercial residential insurance through its insurance company subsidiaries. It is vertically integrated and controls or manages substantially all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. Its subsidiaries include Heritage Property & Casualty Insurance Company (Heritage P&C), which provides personal and commercial residential property insurance and commercial general liability insurance; Narragansett Bay Insurance Company (NBIC), which provides personal and commercial residential property insurance, and Zephyr Insurance Company (Zephyr), which provides personal residential and wind-only property insurance in Hawaii. The Company provides personal residential insurance in approximately 14 eastern and gulf states and commercial residential insurance in three of those states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Heritage Insurance Completes Catastrophe Reinsurance Program Successfully
- Successful Reinsurance Program: Heritage Insurance has successfully completed its 2026-2027 catastrophe excess-of-loss reinsurance program, securing over $2.2 billion in limits, which demonstrates strong commitment from reinsurance partners and is expected to enhance the company's financial stability and market competitiveness.
- Significant Cost Reduction: The total cost of this reinsurance program is approximately $367.5 million, a decrease of $63.2 million from last year's renewal, and this cost saving will directly improve the company's profitability while providing funding for future expansions.
- Enhanced Multi-Year Coverage: The program includes $712 million of multi-year coverage, with $550 million obtained through fully collateralized catastrophe bonds, further strengthening the company's risk management capabilities and ensuring financial security in the face of natural disasters.
- Stable Loss Retention Levels: The company's loss retention levels remain at approximately $50 million for the Southeast and Hawaii, and $38 million for the Northeast, which will help maintain operational continuity when facing potential catastrophic events.
See More
Heritage Insurance Completes Reinsurance Program Successfully
- Successful Reinsurance Program: Heritage Insurance has successfully completed its 2026-2027 catastrophe excess-of-loss reinsurance program, securing over $2.2 billion in limits, which demonstrates strong commitment from its reinsurance partners and is expected to enhance the company's financial stability and market competitiveness.
- Enhanced Coverage: The program includes two new catastrophe bonds and increased multi-year coverage, significantly reducing reinsurance costs while providing stronger protection for its insurance entities, ensuring better risk management in future catastrophic events.
- Broad Market Coverage: Heritage Insurance writes approximately $1.4 billion in personal and commercial residential premiums across multiple states including the Northeast, Southeast, Hawaii, and California, showcasing its strong influence and business expansion capabilities in the super-regional market.
- Disaster Response Capability: As a catastrophe-focused property insurer, Heritage has accumulated extensive experience in managing risks associated with wildfires, hurricanes, and winter storms, and will continue to enhance customer service and risk management capabilities in the future.
See More
Heritage Insurance Options Trading Volume Surges
- Surge in Options Volume: Heritage Insurance Holdings Inc (HRTG) saw options trading volume reach 4,396 contracts today, representing approximately 439,600 shares, which is about 82.4% of its average daily trading volume of 533,505 shares over the past month, indicating strong market interest in the stock.
- High-Frequency Trading Insights: Notably, the $30 strike call option expiring on July 17, 2026, has seen 4,072 contracts traded today, equating to approximately 407,200 shares of HRTG, suggesting a significant bullish sentiment among investors regarding future price increases.
- Zoom Options Activity: Concurrently, Zoom Communications Inc (ZM) has also shown active options trading, with a volume of 40,748 contracts today, representing around 4.1 million shares, which accounts for 79.7% of its average daily trading volume of 5.1 million shares over the past month, reflecting ongoing market interest.
- Put Option Trading: Among ZM's options, the $90 strike put option expiring on May 22, 2026, has recorded a trading volume of 3,290 contracts, representing approximately 329,000 shares, highlighting investor concerns regarding potential downside risks in its stock price.
See More
Heritage Insurance Shares Hit Oversold Signal
- Oversold Indicator: Heritage Insurance Holdings Inc (Ticker: HRTG) saw its RSI drop to 26.0 during Friday's trading, indicating an oversold condition as shares traded as low as $20.98, suggesting that the recent heavy selling may be nearing exhaustion, prompting bullish investors to consider buying opportunities.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 76.7, HRTG's oversold status may attract bullish investors, especially given the strong overall market performance, indicating that HRTG's undervaluation could present rebound potential.
- Historical Performance Analysis: HRTG's 52-week low stands at $16.825 and its high at $31.98, with the current trading price at $22.41, indicating potential rebound space within its trading range, which may attract value-seeking buyers.
- Investor Sentiment: As HRTG's oversold signal emerges, market sentiment may gradually shift towards optimism, with investors likely to seek entry points in the coming days to capitalize on potential price recoveries.
See More
Heritage Insurance Q1 2026 Earnings Call Insights
- Profitability Improvement: HRTG reported a net income of $36.5 million or $1.19 per share in Q1 2026, reflecting the successful implementation of a multi-year strategic shift while maintaining acceptable margins, indicating enhanced profitability.
- New Business Growth: New business written increased by 62.7% from Q1 2025 and over 30% from Q4 2025, demonstrating growth momentum in reopened markets, with expectations for a growth inflection in the coming quarters.
- Capital Repurchase Plan: The Board approved a new $50 million share repurchase plan, replacing the previous one, with 446,884 shares repurchased year-to-date for $12 million, indicating confidence in the stock's value and proactive capital management.
- Market Outlook: Management anticipates premium trends to turn positive in Q2 and Q3 of 2026, with declining reinsurance costs expected to benefit policyholders through premium reductions while maintaining the company's margins.
See More
Heritage Insurance Reports Strong Q1 2026 Financial Results
- Profitability Surge: Heritage Insurance reported a net income of $36.5 million for Q1 2026, translating to earnings per share of $1.19, marking a 19.7% increase from the previous year, indicating a significant improvement in profitability driven by higher investment income and reduced losses.
- Underwriting Performance Improvement: The net loss ratio decreased to 45.9%, a 3.8 percentage point improvement from the same quarter last year, primarily due to stricter underwriting standards and effective risk management strategies, demonstrating the company's resilience in adverse weather conditions.
- Shareholder Return Strategy: The Board of Directors has opted to suspend the quarterly dividend to prioritize strategic growth while repurchasing 446,484 shares at a cost of $12 million in 2026, reflecting the company's confidence in future growth and flexibility in capital management.
- Market Expansion Plans: Management indicated that over 90% of territories have achieved rate adequacy and plans to expand into new markets such as Texas, highlighting strategic decisions in product diversification and geographic expansion that will lay the groundwork for future growth.
See More
Heritage Insurance Completes Catastrophe Reinsurance Program Successfully
- Successful Reinsurance Program: Heritage Insurance has successfully completed its 2026-2027 catastrophe excess-of-loss reinsurance program, securing over $2.2 billion in limits, which demonstrates strong commitment from reinsurance partners and is expected to enhance the company's financial stability and market competitiveness.
- Significant Cost Reduction: The total cost of this reinsurance program is approximately $367.5 million, a decrease of $63.2 million from last year's renewal, and this cost saving will directly improve the company's profitability while providing funding for future expansions.
- Enhanced Multi-Year Coverage: The program includes $712 million of multi-year coverage, with $550 million obtained through fully collateralized catastrophe bonds, further strengthening the company's risk management capabilities and ensuring financial security in the face of natural disasters.
- Stable Loss Retention Levels: The company's loss retention levels remain at approximately $50 million for the Southeast and Hawaii, and $38 million for the Northeast, which will help maintain operational continuity when facing potential catastrophic events.
See More
Heritage Insurance Completes Reinsurance Program Successfully
- Successful Reinsurance Program: Heritage Insurance has successfully completed its 2026-2027 catastrophe excess-of-loss reinsurance program, securing over $2.2 billion in limits, which demonstrates strong commitment from its reinsurance partners and is expected to enhance the company's financial stability and market competitiveness.
- Enhanced Coverage: The program includes two new catastrophe bonds and increased multi-year coverage, significantly reducing reinsurance costs while providing stronger protection for its insurance entities, ensuring better risk management in future catastrophic events.
- Broad Market Coverage: Heritage Insurance writes approximately $1.4 billion in personal and commercial residential premiums across multiple states including the Northeast, Southeast, Hawaii, and California, showcasing its strong influence and business expansion capabilities in the super-regional market.
- Disaster Response Capability: As a catastrophe-focused property insurer, Heritage has accumulated extensive experience in managing risks associated with wildfires, hurricanes, and winter storms, and will continue to enhance customer service and risk management capabilities in the future.
See More
Heritage Insurance Options Trading Volume Surges
- Surge in Options Volume: Heritage Insurance Holdings Inc (HRTG) saw options trading volume reach 4,396 contracts today, representing approximately 439,600 shares, which is about 82.4% of its average daily trading volume of 533,505 shares over the past month, indicating strong market interest in the stock.
- High-Frequency Trading Insights: Notably, the $30 strike call option expiring on July 17, 2026, has seen 4,072 contracts traded today, equating to approximately 407,200 shares of HRTG, suggesting a significant bullish sentiment among investors regarding future price increases.
- Zoom Options Activity: Concurrently, Zoom Communications Inc (ZM) has also shown active options trading, with a volume of 40,748 contracts today, representing around 4.1 million shares, which accounts for 79.7% of its average daily trading volume of 5.1 million shares over the past month, reflecting ongoing market interest.
- Put Option Trading: Among ZM's options, the $90 strike put option expiring on May 22, 2026, has recorded a trading volume of 3,290 contracts, representing approximately 329,000 shares, highlighting investor concerns regarding potential downside risks in its stock price.
See More
Heritage Insurance Shares Hit Oversold Signal
- Oversold Indicator: Heritage Insurance Holdings Inc (Ticker: HRTG) saw its RSI drop to 26.0 during Friday's trading, indicating an oversold condition as shares traded as low as $20.98, suggesting that the recent heavy selling may be nearing exhaustion, prompting bullish investors to consider buying opportunities.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 76.7, HRTG's oversold status may attract bullish investors, especially given the strong overall market performance, indicating that HRTG's undervaluation could present rebound potential.
- Historical Performance Analysis: HRTG's 52-week low stands at $16.825 and its high at $31.98, with the current trading price at $22.41, indicating potential rebound space within its trading range, which may attract value-seeking buyers.
- Investor Sentiment: As HRTG's oversold signal emerges, market sentiment may gradually shift towards optimism, with investors likely to seek entry points in the coming days to capitalize on potential price recoveries.
See More
Heritage Insurance Q1 2026 Earnings Call Insights
- Profitability Improvement: HRTG reported a net income of $36.5 million or $1.19 per share in Q1 2026, reflecting the successful implementation of a multi-year strategic shift while maintaining acceptable margins, indicating enhanced profitability.
- New Business Growth: New business written increased by 62.7% from Q1 2025 and over 30% from Q4 2025, demonstrating growth momentum in reopened markets, with expectations for a growth inflection in the coming quarters.
- Capital Repurchase Plan: The Board approved a new $50 million share repurchase plan, replacing the previous one, with 446,884 shares repurchased year-to-date for $12 million, indicating confidence in the stock's value and proactive capital management.
- Market Outlook: Management anticipates premium trends to turn positive in Q2 and Q3 of 2026, with declining reinsurance costs expected to benefit policyholders through premium reductions while maintaining the company's margins.
See More
Heritage Insurance Reports Strong Q1 2026 Financial Results
- Profitability Surge: Heritage Insurance reported a net income of $36.5 million for Q1 2026, translating to earnings per share of $1.19, marking a 19.7% increase from the previous year, indicating a significant improvement in profitability driven by higher investment income and reduced losses.
- Underwriting Performance Improvement: The net loss ratio decreased to 45.9%, a 3.8 percentage point improvement from the same quarter last year, primarily due to stricter underwriting standards and effective risk management strategies, demonstrating the company's resilience in adverse weather conditions.
- Shareholder Return Strategy: The Board of Directors has opted to suspend the quarterly dividend to prioritize strategic growth while repurchasing 446,484 shares at a cost of $12 million in 2026, reflecting the company's confidence in future growth and flexibility in capital management.
- Market Expansion Plans: Management indicated that over 90% of territories have achieved rate adequacy and plans to expand into new markets such as Texas, highlighting strategic decisions in product diversification and geographic expansion that will lay the groundwork for future growth.
See More
