Heritage Insurance Holdings Inc. (HRTG) stock surged 9.33% in trading on Wednesday following the release of its impressive third-quarter 2025 financial results. The property and casualty insurer significantly outperformed analyst expectations, demonstrating strong growth and improved operational efficiency.
The company reported earnings per share of $1.63 for the quarter ended September 30, far exceeding the mean analyst estimate of $0.53. This represents a substantial increase from the $0.27 per share reported in the same quarter last year. Revenue also beat expectations, rising 0.3% to $212.46 million, compared to the analyst consensus of $210.12 million.
Heritage Insurance's strong performance was driven by several factors. The company's net income soared to $50.4 million, up from $8.2 million in the prior-year quarter. The net combined ratio, a key measure of underwriting profitability, improved significantly to 72.9%, indicating better overall performance. Additionally, new business premiums increased by an impressive 166% to $36.3 million, reflecting the company's successful expansion into reopened profitable geographies. The insurer's book value per share also rose 48.9% year-to-date to $14.15, further boosting investor confidence.
Analysts have responded positively to Heritage's results, with the current average rating on the stock being "buy". The median 12-month price target stands at $31.50, suggesting potential further upside from current levels. As Heritage Insurance continues to demonstrate disciplined underwriting and improved operational metrics, investors appear optimistic about the company's growth prospects in the property and casualty insurance sector.
Comments