Heritage Insurance Holdings, Inc (HRTG) has reported 19.40 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $5.98 million, or $0.21 a share in the quarter, compared with $7.42 million, or $0.24 a share for the same period last year.
Revenue during the quarter dropped 11 percent to $99.29 million from $111.56 million in the previous year period. Net premium earned for the quarter declined 13.32 percent or $14.17 million to $92.18 million.
Total expenses come down
Benefits, losses and expenses for the quarter were at $87.40 million, or 94.82 percent of premium earned from $99.52 million or 93.59 percent of premium earned in the last year period. Operating income for the quarter was $11.89 million, compared with $12.04 million in the previous year period. Net investment income was at $2.50 million for the quarter, up 22.83 percent or $0.46 million from year-ago period. The company has recorded a gain on investments of $0.77 million in the quarter compared with a gain of $0.38 million for the previous year period.
Bruce Lucas, the Company’s Chairman and Chief executive officer, said, “The first quarter is marked by some very favorable developments. Year over year, our loss ratio improved 13.9 points. We ended the quarter with a 30.2% loss ratio, which was better than our previous forecast. Tri-County continues to lead Florida in assignment of benefits and other abusive claims practices. However, as a result of underwriting actions that we initiated a year ago, our Tri-County claims were down approximately 30% compared to the first quarter of 2016. This trend is encouraging and helps to improve our underwriting profit while decreasing costly AOB claims. We have initiated two rate increases that are targeted to the Tri-County and results have been positive thus far as there has been a slight decrease in our policy retention rate countered by an increase in average premium per policy. This approach should benefit the Company as we move forward. We have almost completed our 2017 reinsurance program and we are anticipating meaningful savings compared to the 2016 treaty. Our voluntary production continues to grow and is further diversifying our risk profile. We are off to a great start in 2017.”
Liabilities outpace assets growth
Total assets increased 8.69 percent or $76.36 million to $955.40 million on Mar. 31, 2017. On the other hand, total liabilities were at $594.57 million as on Mar. 31, 2017, up 13.73 percent or $71.77 million from year-ago. Return on assets stood at 0.63 percent in the quarter, down 0.22 from 0.84 percent in the last year period. At the same time, return on equity was at 1.66 percent in the quarter, down 0.43 from 2.08 percent in the last year period.
Investments increase substantially
Investments stood at $605.84 million as on Mar. 31, 2017, up 25.91 percent or $124.67 million from year-ago. Meanwhile, yield on investments went down 1 basis points to 0.41 percent in the quarter. Total debt was at $73.04 million as on Mar. 31, 2017. Shareholders equity stood at $360.83 million as on Mar. 31, 2017, up 1.29 percent or $4.59 million from year-ago. As a result, debt to equity ratio was at 0.20 percent in the quarter.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
