Heritage Insurance Holdings Inc (HRTG) has reported a 34.99 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $10.93 million, or $0.37 a share in the quarter, compared with $16.81 million, or $0.55 a share for the same period last year.
Revenue during the quarter grew 22.48 percent to $109.31 million from $89.24 million in the previous year period. Net premium earned for the quarter increased 23.30 percent or $19.19 million to $101.56 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $90.69 million, or 89.31 percent of premium earned from $61.53 million or 74.71 percent of premium earned in the last year period. Operating income for the quarter was $18.61 million, compared with $27.72 million in the previous year period.
Net investment income was at $2.33 million for the quarter, up 17.89 percent or $0.35 million from year-ago period. The company has recorded a gain on investments of $1.12 million in the quarter compared with a gain of $1.95 million for the previous year period.
Bruce Lucas, the Company’s chairman and chief executive officer, said, “Florida experienced its first hurricane in over ten years during the third quarter. Our vertically integrated claims department was instrumental in our response to Hurricane Hermine and we were able to respond efficiently to the needs of our policyholders. Our ability to quickly service policyholders, many within hours of the storm, demonstrates the benefits of our unique approach to managing claims. Losses from the storm were contained, and our current estimate for losses related to Hurricane Hermine is $4 million. Despite the hurricane, I am pleased to report net income of $10.9 million and return on average equity of 11.7 percent for the quarter.”
Liabilities outpace assets growth
Total assets increased 23.24 percent or $198.67 million to $1,053.71 million on Sep. 30, 2016. On the other hand, total liabilities were at $676.47 million as on Sep. 30, 2016, up 29.43 percent or $153.83 million from year-ago.
Return on assets stood at 1.04 percent in the quarter, down 0.93 from 1.97 percent in the last year period. At the same time, return on equity was at 2.90 percent in the quarter, down 2.16 from 5.06 percent in the last year period.
Investments increase substantially
Investments stood at $549.78 million as on Sep. 30, 2016, up 38.94 percent or $154.09 million from year-ago. Meanwhile, yield on investments went down 8 basis points to 0.42 percent in the quarter.
Shareholders equity stood at $377.24 million as on Sep. 30, 2016, up 13.49 percent or $44.84 million from year-ago.
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