| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 4.9x | 17.8x | Top tier | |
Growth | 70 | 1.5% | 7.1% | Top tier | |
Quality | 99 | — | — | Top tier | |
Safety | 28 | — | — | Bottom tier | |
Capital Return | 67 | — | 2.12% | Top tier | |
Momentum | 91 | 61.4% | 2.9% | Top tier | |
Sentiment | 22 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Heritage Insurance Holdings operates in residential property insurance through personal and commercial policies, distributing its business across multiple states, products, and channels that rely on an agent network. Its operating income is generated primarily from earned premiums, while investing cash and assets in high-quality fixed-income securities provides another source of income; in Q2 FY2026, net premiums earned totaled $201.1 million, and net investment income totaled $10.6 million. The company uses reinsurance to limit catastrophe risk, balancing the cost of ceded premiums against protection from major losses.
In Q2 FY2026, Heritage recorded record net income of $61.7 million and diluted earnings per share of $2.05, compared with $48 million and $1.55 in the corresponding quarter of FY2025. Net premiums earned increased 2.4% to $201.1 million, and the net loss ratio improved to 30.4% from 38.5%, while the combined ratio declined to 64.9% from 72.9%, implying an underwriting margin of 35.1%. This performance included $23.4 million of favorable prior-period reserve development, compared with $2.3 million in the comparative period.
Premiums in force totaled $1.41 billion at the end of Q2 FY2026, down 1.4% year over year, with a clear divergence in the mix: personal residential premiums in force increased 1.2%, while commercial residential premiums in force declined 12.7% under competitive pressure, particularly in Florida. Gross premiums earned totaled $351.2 million versus $353.6 million, while gross premiums written declined 5.5% to $380.4 million due to the reduction of commercial residential business in Florida. EDGAR results for Q1 FY2026 showed revenue of $212.7 million, net income of $36.5 million, and earnings per share of $1.19.
Automated analysis for informational purposes only — not investment advice.
The stock carries a consensus “Buy” rating, with an average price target of $36.5 and a wide range between $31 and $42. The average target equals the upper end of the 52-week range of $20.48–$36.5, while the highest target exceeds it by approximately 15%; this reflects analyst confidence but makes achievement of the target valuation dependent on the sustainability of underwriting earnings after excluding non-recurring reserve development and overcoming commercial pricing pressure. The $11 gap between the lowest and highest targets also highlights uncertainty regarding the sustainability of margins and the pace of the return to policy growth.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Heritage's net income reached a record $61.7 million, or $2.05 per diluted share, compared with $48 million and $1.55 in the corresponding quarter of FY2025. Net premiums earned increased 2.4% to $201.1 million, and net investment income rose 17.3% to $10.6 million. Lower weather losses, improved claims results, and $23.4 million of favorable reserve development helped reduce the combined ratio to 64.9%.
Premiums in force for the personal residential business increased 1.2% year over year in Q2 FY2026, and management said that most regions had opened to new business. The Guidewire implementation is still causing several months of slower production while agents learn the system, but management reported improved activity after they became accustomed to it. In contrast, total premiums in force remained at $1.41 billion, down 1.4% due to the decline in the commercial residential business.
Heritage placed more than $2.2 billion of protection limits under its 2026–2027 catastrophe program, with expanded use of multiyear coverage and catastrophe bonds. The company expects annual savings of approximately $63 million compared with the previous program, and net premiums earned increased in Q2 FY2026 partly because of lower ceded premiums. On August 6, 2026, management also indicated that the ceded premium ratio could decline by approximately one to two points under the new program.
Commercial residential premiums in force declined 12.7% in Q2 FY2026 due to competition and pricing pressure, particularly in Florida. Gross premiums written fell 5.5% to $380.4 million because the company declined to renew some accounts it considered inadequately priced. At the same time, the number of commercial policies increased 4.9% as it wrote smaller accounts and expanded activity in Hawaii, New York, and New Jersey.
Operating cash flow totaled $166.5 million during the first six months of FY2026, and Q2 ended with assets of $2.45 billion, including $1.39 billion in cash and investments. The company repurchased more than one million shares for $24.6 million during the same period, and $37.4 million remained under the repurchase authorization available through December 31, 2026. Book value per share also increased to $19.09 on June 30, 2026, despite the repurchases and a net after-tax increase of $4.9 million in unrealized losses in the fixed-income portfolio.
The analyst consensus is “Buy,” with an average price target of $36.5, a lowest target of $31, and a highest target of $42. The average target matches the upper end of the 52-week range of $20.48–$36.5, while the highest target is approximately 15% above it. This range reflects differing estimates of the sustainability of the 64.9% combined ratio after the $23.4 million impact of reserve development and of how quickly improved production will translate into actual policy growth.
