We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Heritage Insurance Poised for Policy Growth Amid Repositioning?
Read MoreHide Full Article
Key Takeaways
Heritage Insurance's policies in force fell, but premiums rose 27.3% over four years.
HRTG is re-opening profitable regions and leveraging analytics to drive policy growth.
The Zacks Consensus Estimate for HRTG's 2025 and 2026 EPS and revenues indicate year-over-year gains.
Heritage Insurance Holdings Inc.’s (HRTG - Free Report) policies-in-force (“PIF”) are an important growth indicator, reflecting the total number of active insurance policies. This super-regional U.S. property and casualty insurer has prioritized profitability, thus exiting less profitable personal lines in high-risk areas and increasing its focus on higher-margin commercial, residential and Excess & Surplus (E&S) segments. This has caused policies in force to drop by 0.2 million over four years. However, in-force premiums have increased by about 27.3% in the same time frame.
In the second quarter of 2025, policies in force decreased, albeit by a small margin. As HRTG’s new business production is gaining traction, management estimates personal lines policies in force to gradually increase through the second half of 2025. The company’s strategic initiatives for 2025 include re-opening profitable geographies and expanding market share across the Northeast, Mid-Atlantic, Southeast, West and Pacific regions. The insurer also stays focused on improving exposure by leveraging data-driven analytics. This should help HRTG get its PIF growth on track eventually. It expects PIF to accelerate in 2026.
Continued growth in PIF will help it attain a competitive edge, benefiting premium volumes. These, along with prudent underwriting and technological advancement, will help HRTG sustain long-term growth and profitability.
What About HRTG’s Competitors?
PIF plays a vital role in driving Kinsale Capital’s (KNSL - Free Report) growth, underscoring its expanding presence in the excess and surplus insurance market. Disciplined underwriting and focus on underserved, hard-to-place risks have steadily increased its policy count, boosting premium and enhancing underwriting profitability, supporting Kinsale’s operational scalability.
Kingstone Companies (KINS - Free Report) has demonstrated robust growth in PIF, reflecting a strategic pivot toward its core personal lines business, which now represents 96% of total PIF. Kingstone’s intensified focus on core markets follows its deliberate exit from underperforming and non-core areas, enabling a sharper allocation of underwriting resources, translating into steady gains in both policy count and premium.
HRTG’s Price Performance
Shares of HRTG have gained 94.8% year to date, outperforming the industry.
Image Source: Zacks Investment Research
HRTG’s Expensive Valuation
HRTG trades at a price-to-book value ratio of 1.89, above the industry average of 1.56. But it carries a Value Score of B.
Image Source: Zacks Investment Research
Estimate Movement for HRTG
The Zacks Consensus Estimate for HRTG’s third-quarter and fourth-quarter 2025 EPS witnessed 103.8% and 6.1% northward movement, respectively, in the past 30 days. The same for full-year 2025 and 2026 has increased 26.2% and 12.8%, respectively.
Image Source: Zacks Investment Research
The consensus estimates for HRTG’s 2025 and 2026 revenues and EPS indicate year-over-year increases.
Image: Bigstock
Heritage Insurance Poised for Policy Growth Amid Repositioning?
Key Takeaways
Heritage Insurance Holdings Inc.’s (HRTG - Free Report) policies-in-force (“PIF”) are an important growth indicator, reflecting the total number of active insurance policies. This super-regional U.S. property and casualty insurer has prioritized profitability, thus exiting less profitable personal lines in high-risk areas and increasing its focus on higher-margin commercial, residential and Excess & Surplus (E&S) segments. This has caused policies in force to drop by 0.2 million over four years. However, in-force premiums have increased by about 27.3% in the same time frame.
In the second quarter of 2025, policies in force decreased, albeit by a small margin. As HRTG’s new business production is gaining traction, management estimates personal lines policies in force to gradually increase through the second half of 2025. The company’s strategic initiatives for 2025 include re-opening profitable geographies and expanding market share across the Northeast, Mid-Atlantic, Southeast, West and Pacific regions. The insurer also stays focused on improving exposure by leveraging data-driven analytics. This should help HRTG get its PIF growth on track eventually. It expects PIF to accelerate in 2026.
Continued growth in PIF will help it attain a competitive edge, benefiting premium volumes. These, along with prudent underwriting and technological advancement, will help HRTG sustain long-term growth and profitability.
What About HRTG’s Competitors?
PIF plays a vital role in driving Kinsale Capital’s (KNSL - Free Report) growth, underscoring its expanding presence in the excess and surplus insurance market. Disciplined underwriting and focus on underserved, hard-to-place risks have steadily increased its policy count, boosting premium and enhancing underwriting profitability, supporting Kinsale’s operational scalability.
Kingstone Companies (KINS - Free Report) has demonstrated robust growth in PIF, reflecting a strategic pivot toward its core personal lines business, which now represents 96% of total PIF. Kingstone’s intensified focus on core markets follows its deliberate exit from underperforming and non-core areas, enabling a sharper allocation of underwriting resources, translating into steady gains in both policy count and premium.
HRTG’s Price Performance
Shares of HRTG have gained 94.8% year to date, outperforming the industry.
Image Source: Zacks Investment Research
HRTG’s Expensive Valuation
HRTG trades at a price-to-book value ratio of 1.89, above the industry average of 1.56. But it carries a Value Score of B.
Image Source: Zacks Investment Research
Estimate Movement for HRTG
The Zacks Consensus Estimate for HRTG’s third-quarter and fourth-quarter 2025 EPS witnessed 103.8% and 6.1% northward movement, respectively, in the past 30 days. The same for full-year 2025 and 2026 has increased 26.2% and 12.8%, respectively.
Image Source: Zacks Investment Research
The consensus estimates for HRTG’s 2025 and 2026 revenues and EPS indicate year-over-year increases.
HRTG stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.