/ADVISORY — Heritage Insurance Holdings, Inc./

A press release, Heritage Reports Second Quarter 2022 Results, has been released 04-Aug-2022 by Heritage Insurance Holdings, Inc. over PR Newswire, in a table titled “Book Value Per Common Share”, the value of Common stockholder’s equity June 30, 2021 read “424,873” and not “42,873” as erroneously reported by PR Newswire. The full, edited release follows:

Heritage Reports Second Quarter 2022 Results

TAMPA, Fla., Oga. 4, 2022 /PRNewswire/ — Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a leading regional insurance and casualty insurance company, today reported its 2022 financial results.

Heritage Insurance (PRNewsFoto/Heritage Insurance Holdings, Inc) (PRNewsfoto/Heritage Insurance Holdings, In)

Results for Second Quarter 2022

  • Second quarter loss for $87.9 million or $3.32 on the reduced portion, down from the total loss of $4.0 million or $0.14 on a reduced basis in the prior year quarter, with a net reduction $90.8 million or $3.48 on the reduced value of the non-cash basis.

  • Payments for damage to assets driven by: (i) the disruption of the commercial markets, especially the property and casualty insurance companies, especially due to the recent disasters related to the weather; (ii) a higher rate of property insurance losses in our markets; and (iii) sell our stock below book value.

  • Adjusted earnings for the second quarter1 about $2.9 million or $0.11 for the reduced portion, from the modified damage1 about $4.0 millionor $0.14 for the reduced share in the previous quarter driven by the improvement of the consolidated net of 5.8 points, reaching 99.4%.

  • The loss rate of 64.1%, 4.7 points down from the quarter of the year of 68.8%, led by the income, which exceeded the number of losses of 0.7%.

  • Weather damage for next year’s disaster of $38.1 millionup by 7.3% from $35.5 million in the quarter of the previous year. Currently, the annual damage to the weather is included $32.1 million casualty losses for the quarter, from $24.5 million in the previous quarter, and $6.0 million of some weather damage, down from $11.0 million in the quarter of the previous year.

  • Gross profit ratio of 35.3%, down 1.1 points from last year’s quarter of 36.4%.

  • Display management tools:

  • All the money you have earned $296.2 millionup by 3.7% from $285.6 million in the quarter of the previous year, showing the total premiums written in the previous twelve months under the direction of the highest premiums for each policy.

  • All fees listed $365.3 millionup by 8.2% from $337.7 million in the previous year, driven by higher prices, and deliberate control and rewriting efforts that resulted in a 4.6% increase. Florida driven by increased activity and growth of 12.1% in other regions.

  • All money returned to the owners of $1.6 millionto show $0.06 for each share of each quarter.

  • Continuing to follow the various strategies of Heritage, with 74.4% of TIV outside of Floridafrom 69.8% from the second quarter of 2021.

“Our net profit in this segment is a reduction of almost 6-points in our consolidation showing that our focus on profitability, management style and cost effectiveness is having the desired effect,” said the Heritage CEO. Ernie Garateix. “The metrics we have achieved are significant compared to the previous year and we expect this improvement to continue every quarter in a row. In addition, I am pleased with the results of our accident re-assurance program that was implemented. June 1St. Heritage acquired qualified reinsurance units, we implemented the new Florida Reinsurance to Assist Policyholders program, and our program included the deployment of Citrus Re, which brings additional collateral through the capital markets. We are hopeful that what they have done is a Florida Parliament will have a positive impact on our results and areas that claim to be difficult, but also believe that more laws should be implemented to improve the health of Florida property insurance market.”

Capital Management

Considering that Heritage’s stock is being sold below book value, Heritage’s Board of Directors has decided to distribute the proceeds this quarter. $0.06 per share is often used to issue a quarterly dividend to stockholders for the resale of common stock, which is a surplus for stockholders. The Board of Directors will review the distribution of shares on a quarterly basis and will determine, among other things, based on current market value compared to book value.

Performance Results

The following table summarizes the results of operations for the past three and six months June 30, 2022 and 2021 (totals in thousands, excluding percentages and fractions):

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

Change it

2022

2021

Change it

Money

$

163,770

$

150,197

9.0

%

$

322,378

$

297,441

8.4

%

Total loss

$

(87,866)

$

(3,950)

NM

%

$

(118,625)

$

(9,097)

NM

%

Adjusted income (loss) [1]

$

2,908

$

(3,950)

(173.6)

%

$

(27,851)

$

(9,097)

206.2

%

Loss per share

$

(3.32)

$

(0.14)

NM

%

$

(4.46)

$

(0.33)

NM

%

Adjusted income (loss)[1]

$

0.11

$

(0.14)

(178.6)

%

$

(1.05)

$

(0.33)

218.2

%

Book value per share

$

6.80

$

15.20

(55.3)

%

$

6.80

$

15.20

(55.3)

%

The cost of the revised book[1]

$

8.35

$

15.20

(45.1)

%

$

8.35

$

15.20

(45.1)

%

Return to justice*

(152.0)

%

(3.7)

%

(148.3)

pts

(90.6)

%

(4.2)

%

(86.4)

pts

Adjusted financial returns[1]*

5.0

%

(3.7)

%

8.7

pts

(21.3)

%

(4.2)

%

(17.1)

pts

Summary of articles

All fees listed

$

365,284

$

337,700

8.2

%

$

648,480

$

611,881

6.0

%

All the money you have earned

$

296,211

$

285,646

3.7

%

$

583,579

$

556,057

4.9

%

Payment received earned

$

(137,940)

$

(139,147)

(0.9)

%

$

(272,379)

$

(267,359)

1.9

%

All the money you have earned

$

158,271

$

146,499

8.0

%

$

311,200

$

288,698

7.8

%

The number of premiums

46.6

%

48.7

%

(2.1)

pts

46.7

%

48.1

%

(1.4)

pts

Estimated Total Earnings:

Loss ratio

64.1

%

68.8

%

(4.7)

pts

77.6

%

68.8

%

8.8