HERITAGE INSURANCE HOLDINGS Business Summary

Heritage Insurance Holdings (HRTG) operates as a super-regional property and casualty insurance holding company, generating revenue primarily through gross premiums earned from personal and commercial residential policies, supplemented by net investment income from its $1.4 billion premiums-in-force portfolio. The company’s business is vertically integrated, managing underwriting, actuarial analysis, and claims processing through subsidiaries such as Heritage Property & Casualty, Narragansett Bay Insurance Company (NBIC), and Zephyr Insurance Company. Its primary segments include personal residential insurance—covering homeowners, condo, and dwelling fire across 16 states—and commercial residential property insurance. As of March 2026, Heritage has successfully diversified its catastrophe-exposed footprint, with approximately 50% of its exposure in the Northeast and the remainder across the Southeast, Hawaii, and California. It competes directly with HCI Group, American Coastal Insurance, Slide Insurance, and NMI Holdings, positioning itself as a high-growth, diversified regional player with a focus on rate adequacy and disciplined underwriting in volatile coastal markets. Founded in 2012 by a team including former CEO Bruce Lucas, the company is currently led by Chief Executive Officer Ernie Garateix, who has been with the firm since its inception and previously served as COO. Garateix brings over 30 years of industry experience from roles at American Integrity and FCCI Insurance Group. The executive team is further anchored by CFO Kirk Lusk, a veteran financial officer with a pedigree including Aetna, GE Capital, and Alea Group, and Sharon Binnun, who serves as Chief Accounting Officer. The Board of Directors is chaired by Richard Widdicombe, a founding executive with extensive property and casualty expertise. Notable institutional backing includes positions from Mirae Asset Global and Graham Capital Management, reflecting a leadership team and board with an average tenure of over eight years, focused on maintaining a robust statutory surplus and managing a complex reinsurance program to mitigate climate-related risks.