Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q1 2022 Earnings Conference Call May 6, 2022 9:25 AM ET
Company Participants
Ernie Garateix – Chief Executive Officer
Kirk Lusk – Chief Financial Officer
Conference Call Participants
Marla Backer – Sidoti
Paul Newsome – Piper Sandler
Matt Carletti – JMP
Nick Lacoviello – Dowling and Partners
Operator
Good morning. And welcome to the Heritage Insurance Holdings, First Quarter 2022, earnings conference call. All participants will be in a listen-only mode. [Operator Instructions] I would now like to turn the conference over to Kirk Lusk, Chief Financial Officer. Please go ahead.
Kirk Lusk
Good morning. And thank you for joining us today. We invite you to visit the Investors section of our website, investors. heritagepci.com, where the earnings release and our earnings call will be archived. These materials are available for replay or review at your convenience. Today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management's current expectations and subject to uncertainty and changes in circumstances. In our earnings press release, and our SEC filings, we detail material risks that may cause our future results to differ from our expectations.
Our statements are as of today, and we have no obligation to update any forward-looking statements we may make. For a description of the forward-looking statements and the risks that could cause our results to differ materially from those described in the forward-looking statements, please refer to our annual report on Form 10-K earnings release and other SEC filings. Our comments today will also include non-GAAP financial measures. The reconciliations of and other information regarding these measures can be found in our press release. With me on the call today is Ernie Garateix, our Chief Executive Officer. I will now turn the call over to Ernie.
Ernie Garateix
Thank you. Kirk and I would like to thank everyone for joining the call today. I would like to thank our Heritage employees for their dedication to the company, as well as our policyholders. I also would like to thank our valued reinsurance partners for their commitment to our program. On this call, we will begin with an overview of our performance for the quarter ending March 31, 2022, provide updates on key financial performance metrics and then open the call for Q&A.
The first quarter of 2022 marked another quarter impacted by severe weather losses. These higher weather losses resulted in a net loss of $30.7 million or $1.15 per diluted share. Despite the substantial increase in net current accident year weather losses during the quarter, we remain encouraged by the rate and form changes implemented throughout the book of business over the last 18 months. These changes, coupled with additional geographic diversification and more restricted underwriting for new and renewal business will continue to positively impact our portfolio. These changes are highlighted by the improvement in our attritional loss ratio for new business quarter-over-quarter. The initiatives to tighten underwriting, an increase rates have improved our average premium per policy by 10.7% from the first quarter of 2021. The impact of existing rate increases has not worked its way through our entire book of business.