Citizens policies drive rapid growth at Heritage Insurance
Heritage Insurance Holdings reported a big increase in its profits for 2014 while its gross earned premiums also grew substantially.
The company made a net profit of $47.1 million compared with $34.2 million for the prior year. Its gross earned premiums were $311.5 million in 2014 compared to $140 million in 2013. The company’s combined ratio was 79.4 percent compared with 81.5 percent for the prior year, primarily as a result of an improved ceded premium ratio.
The company’s strong growth was particularly apparent in the fourth quarter when its gross written premiums increased by 116 percent in the quarter alone, partly boosted by its assumption of $85 million in annualised commercial residential premium and $84 million in annualised personal lines premium from Citizens Insurance.
Bruce Lucas, the company’s chief executive, said: "The fourth quarter was another excellent quarter for us. It was our best fourth quarter in the Company's history. Our year over year growth has been strong as evidenced by triple digit increases in gross premiums written and net premiums earned.
“Our fourth quarter net income of $19.7 million significantly exceeded expectations. I am particularly pleased with our introduction into the commercial residential line of business with three Citizens depopulations totalling $85.4 million of inforce premiums and $5.8 million of voluntary business written during the quarter.
“The launch of the commercial residential business coupled with our successful transition of Sunshine State Insurance Company's (SSIC) policies to Heritage fuelled our strong growth over the prior year. Additionally, we believe the growth in the fourth quarter positions us very well for the future."
