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• State Farm for homes in hurricane-prone areas.
• A regional Allstate focused on coastal homeowners.

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• Homeowners Insurance: Provides coverage for owner-occupied residential properties against various perils, including damage to the structure, personal belongings, and liability.
• Condominium Insurance: Offers protection for the interior of condominium units, personal property, and liability unique to condo owners.
• Renters Insurance: Protects tenants' personal belongings from damage or theft and provides liability coverage within a rented home or apartment.
• Commercial Residential Property Insurance: Supplies property and liability coverage for businesses owning and managing residential rental properties, such as apartment complexes or multiple dwelling units.

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Heritage Insurance (symbol: HRTG) primarily sells property and casualty insurance directly to individuals and small entities, not to other large companies as its major customers.

The company serves the following categories of customers:

1. Homeowners: Individuals who own and reside in single-family homes, townhouses, or mobile homes, seeking comprehensive property and liability coverage for their primary residences.
2. Condominium Owners: Individuals who own condominium units and require specialized HO-6 insurance policies to cover their interior unit, personal belongings, and specific liabilities beyond what the master condo association policy covers.
3. Rental Property Owners (Landlords): Individuals or small entities who own residential properties (e.g., single-family homes, multi-unit dwellings, or commercial residential properties) that they rent out to tenants, seeking coverage for the property structure, loss of rental income, and liability as landlords.

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Ernie Garateix, Chief Executive Officer

Ernie Garateix has served as Heritage's Chief Executive Officer since 2020, after previously holding roles as Chief Operating Officer from 2014 and Executive Vice President from 2012. Before joining Heritage at its inception in 2012, Mr. Garateix was an executive at American Integrity Insurance Group, where he oversaw operational functions as Vice President of Operations. He also served as Associate Vice President of Information Technology at FCCI Insurance Group from 2000 to 2007, where he managed a team of developers and directed major software implementations. Mr. Garateix began his career at United States Fidelity and Guaranty Company (USF&G), advancing through various claims positions.

Kirk Lusk, Chief Financial Officer

Kirk Lusk has been Heritage Insurance's Chief Financial Officer since April 2018, having previously served as Co-Chief Financial Officer since January 2018. From 2013 to 2018, Mr. Lusk was the Chief Financial Officer of Narragansett Bay Insurance Company (NBIC), which Heritage Insurance acquired in November 2017. Prior to NBIC, he served as International Chief Financial Officer of Aetna, Inc. from 2008 to 2012, Chief Financial Officer of Alea Group Holdings Bermuda Ltd. from 2005 to 2008, and Chief Financial Officer of GE ERC's Global Casualty and GE Capital Auto Warranty Services from 1998 to 2004.

Richard A. Widdicombe, Chairman of the Board

Richard A. Widdicombe is a co-founder of Heritage Insurance Holdings, Inc., which he founded in 2012, and currently serves as the Chairman of the Board. He served as President of Heritage Insurance Holdings, Inc. since August 2012, and was its Chief Executive Officer from August 2012 until May 2014. His extensive career includes serving as President of People's Trust Insurance Company from 2007 to 2009, and as Chief Executive Officer of Federated National Holding Company from 2003 to 2005. He also held presidential roles at Assurance Managing General Agents Inc., Federated National Insurance Company, and American Vehicle Insurance Company.

Sharon Binnun, Chief Accounting Officer & Executive VP of Finance

Ms. Sharon Binnun has served as Heritage Insurance Holdings, Inc.'s Chief Accounting Officer since May 2016 and as its Executive Vice President of Finance since November 2014. Before joining Heritage, Ms. Binnun was the Executive Vice President of Cypress Property Insurance Company from 2013 to 2014. She also served as the Chief Financial Officer at Citizens Property Insurance Corporation from 2007 to 2013. Her earlier career includes a role as Deputy Commissioner at the Florida Office of Insurance Regulation and a manager position at Deloitte & Touche.

Timothy Moura, President, NBIC

Timothy Moura serves as the President of Narragansett Bay Insurance Company (NBIC), a subsidiary of Heritage Insurance Holdings, Inc., a role he has held since January 2018. He also holds the title of Executive Vice President at Heritage Holdings, Inc. Prior to becoming President, Mr. Moura was Senior Vice President of Marketing, Agency, and Client Services at NBIC from 2014. With over 25 years of experience in the insurance industry, his previous roles include Vice President of Business Development and Commercial Lines for Tower Group Companies and Vice President of Underwriting and Product Management, Personal Lines, at OneBeacon Insurance Group.

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The key risks to Heritage Insurance (HRTG) are:

1. Exposure to Catastrophic Weather Events: As a property and casualty insurer, particularly focused on coastal states like Florida, Heritage Insurance faces significant financial exposure to catastrophic weather events such as hurricanes, floods, and other natural disasters. This risk is further compounded by the potential for increased costs or reduced availability of reinsurance, which is crucial for mitigating these large-scale losses.
2. Execution Risk of Growth Strategy and Market Competition: There is a notable disconnect between Heritage Insurance's management's aggressive growth narrative and more conservative near-term revenue forecasts. This raises concerns about the company's ability to achieve sustained top-line growth, especially in an environment of intensifying competition from larger, well-established insurers. If the company sacrifices its underwriting strategy and pricing to meet growth targets, its profitability could suffer.
3. High Forward Price-to-Book (P/B) Ratio: Heritage Insurance's forward Price-to-Book ratio is considered high compared to the sector median, suggesting that the stock may be expensive relative to its tangible net worth. This elevated valuation metric poses a downside risk, questioning the perception of the stock being undervalued despite other favorable financial indicators.

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There are two clear emerging threats for Heritage Insurance (HRTG):

• Disruptive Insurtech Competitors: The rise of tech-driven insurance companies (Insurtechs) that leverage artificial intelligence, big data analytics, and direct-to-consumer digital platforms to offer property insurance. These companies often boast lower overhead, more personalized underwriting, and a streamlined customer experience, directly challenging traditional insurers like Heritage Insurance in their core markets by eroding market share and compressing margins. Examples include companies like Kin Insurance, Hippo, and Openly, which are actively expanding in high-growth, high-risk regions.

• Escalating Catastrophic Weather Events: The accelerating frequency and severity of catastrophic weather events, particularly hurricanes and other severe storms in Heritage Insurance's primary operating regions (e.g., Florida, Gulf Coast). This trend leads to significantly higher claims payouts, dramatically increased reinsurance costs, and greater regulatory scrutiny. These factors can undermine underwriting profitability, force market withdrawals, restrict growth in high-risk areas, and fundamentally challenge the traditional risk assessment and pricing models of property insurers, making the business of insuring properties in these regions increasingly unsustainable.

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Heritage Insurance (symbol: HRTG) primarily offers personal and commercial residential insurance products in various U.S. states. The company has diversified its exposure, with operations across the Northeast, Southeast, West Coast, Caribbean, and Hawaii. The addressable market sizes for their main products in key regions are as follows:

• Florida: The total direct premium written for property insurance in Florida climbed to approximately $23 billion by mid-2025. As of Q4 2023, there were around 7.45 million residential insurance policies in force in the Florida property market.
• Georgia: The market size for the Property, Casualty and Direct Insurance industry in Georgia is projected to be $37.4 billion in 2025. Homeowners insurance premiums in Georgia totaled nearly $4.6 billion in 2022.
• North Carolina: The Property, Casualty and Direct Insurance industry in North Carolina is estimated to have a market size of $23.1 billion in 2025. Direct homeowners multi-peril premiums in the state reached $3.7 billion in 2022.
• South Carolina: The market size for the Property, Casualty and Direct Insurance industry in South Carolina is $4.1 billion in 2025.
• Mississippi: The market size for the Property, Casualty and Direct Insurance industry in Mississippi is $1.8 billion in 2025. The total property and casualty (P&C) premiums in Mississippi were $7.5 billion in 2023, with Homeowners Multi-Peril accounting for $1.5 billion.
• Alabama: The Property, Casualty and Direct Insurance industry in Alabama is expected to grow. However, a specific total market size in dollar value for 2025 was not readily available. The average annual cost of home insurance in Alabama is $3,420.
• Louisiana: While a total market size figure for property insurance was not available, Louisiana's state-run insurer of last resort, Louisiana Citizens Property Insurance Corporation, saw its total insured value of policies increase to $33.3 billion in August 2022.

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Heritage Insurance (HRTG) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Growth in Customers and Policies In-Force: Heritage Insurance anticipates a return to full-year policy growth in 2026, with an acceleration in customer acquisition. This follows a period where the company strategically reduced policies in force for profitability. New business premiums have shown significant growth, increasing by 166% in the third quarter of 2025 compared to the same period last year. The company has also reopened nearly all its operational geographies for new business, indicating a renewed focus on expanding its customer base.

2. Expansion to New Markets and Geographies: Heritage is actively expanding its market presence across its existing 16 operational states, particularly in Florida, Virginia, Hawaii, and New York, and plans to pursue new territories. The company's strategic initiatives for 2025 include re-opening profitable geographies and expanding market share across various regions, including the Northeast, Mid-Atlantic, Southeast, West, and Pacific. This geographic diversification is aimed at capturing new growth opportunities.

3. Price Increases and Rate Adequacy: The company has implemented "rate actions" and achieved "rate adequacy" across the majority of its markets. This strategic pricing allows Heritage to maintain profitability and supports the reopening of areas for new business. While future rate increases may moderate, the established adequate rates provide a solid foundation for sustainable revenue growth.

4. Improved Operational Efficiency and Underwriting: Heritage Insurance has demonstrated an improved net loss ratio, which is a key indicator of better underwriting and claims management. The company is also investing in technology, including a new policy, billing, and claims system expected to be fully integrated by the end of 2026, to enhance operational efficiency and customer service. These improvements contribute to more profitable policies and support the company's ability to pursue new business aggressively.

5. Potential for New Products and Services: Management commentary from the Q3 2025 earnings call highlighted potential expansion into "new regions and products." While the core focus remains on property and casualty insurance, exploring and launching new product offerings could provide additional avenues for revenue generation and further diversify the company's income streams.

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Share Repurchases

• Heritage Insurance Holdings announced a new $10.0 million share repurchase program starting December 31, 2024, and extending through December 31, 2025, succeeding a previous $10.0 million plan.
• During the third quarter of 2025, the company repurchased 106,135 shares of common stock at a cost of $2,282,356 under the existing share repurchase authorization.
• A new share repurchase plan was approved on November 5, 2025, authorizing the repurchase of up to $25.0 million of common stock through December 31, 2026, commencing after the expiration of the 2025 plan.

Share Issuance

• The number of outstanding shares for Heritage Insurance was 31,004,218 as of November 2025.
• The company's shares outstanding increased from 27.74 million in 2020 to 30.67 million in 2024 and 31 million in 2025.

Capital Expenditures

• Capital expenditures were $0.76 million in 2020, $1.01 million in 2021, $12 million in 2022, $9.89 million in 2023, and $8.23 million in 2024.