Heritage reports Q1 profit as combined ratio improves to 81%

Heritage Insurance reported first quarter net income of $36.5 million, up 19.7% year over year, driven by improved underwriting performance and lower catastrophe losses.

The Florida-based carrier posted a combined ratio of 81%, improving 3.5 points from the prior year quarter, while the net loss ratio improved to 45.9% from 49.7%. Gross premiums written declined 2.6% to $346.7 million, reflecting continued pressure in Florida’s commercial residential market.

Heritage said it has reopened more than 90% of its geographies for new business after achieving rate adequacy targets, with new business written up 62.7% compared to Q1 2025. The company also confirmed plans to begin writing surplus lines business in Texas and said four new products launched during the quarter, with six additional products expected in the second half of 2026.

Premiums in force were relatively flat at $1.43 billion. Personal residential premiums in force increased 1.4% to $1.16 billion, while commercial residential premiums in force declined 7.8% to $256.4 million.

During the quarter, Heritage repurchased approximately 446,000 shares for $12 million and authorized a new $50 million share repurchase plan through the end of 2026.