The gains stem from M&A activity, policy acquisitions and organic growth.
Heritage, whose subsidiary is Heritage Property & Casualty Insurance Company, said its net income surpassed $16.8 million during the quarter, or $0.55 per diluted share. That’s a 70 percent increase over the just under $10 million, or $0.33 per diluted share, booked during Q3 2014.
Heritage’s combined ratio came in at 83.8, up slightly from 82.9 in the same year-ago quarter.
Net premiums written for Q3 are booked at just under $149 million, compared to more than $86.7 million in the 2014 third quarter. Gross premiums earned are at $128.2 million, up from nearly $79.9 million in Q3 2014. Net premiums earned came in at $82.36 million during Q3, up from $55.5 million in the 2014 third quarter.
Over the last few months, Heritage disclosed an agreement to buy-up Hawaii-based Zephyr Acquisition Company and its subsidiary, specialty insurer Zephyr Insurance Company, for $120 million in cash. The deal, expected to close in the 2015 fourth quarter, gives Heritage an instant, dominant presence in Hawaii. As well, Heritage’s policy assumptions from Citizens Insurance hit 26,000 policies and $55 million in annualized premium.
Heritage Chairman and CEO Bruce Lucas noted these and other market advances in prepared remarks summarizing Q3 growth.
“The prospects for our company are exciting as we close out the year and move into 2016,” Lucas said.
Lucas added that Heritage would continue to look for M&A opportunities “that are complementary to our core business.” He also noted the insurer’s expansion into other states, including new licenses in North Carolina and South Carolina, plus license applications pending in Massachusetts, Rhode Island, Georgia, Alabama and Mississippi.
Source: Heritage Insurance Holdings, Inc.