Heritage Insurance Holdings, Inc. Reports Financial Results for Third Quarter of 2016

CLEARWATER, Fla., Nov. 8, 2016

Third Quarter Highlights

• 28% increase in gross premiums earned for 3Q16 as compared to 3Q15
• 36% increase in policy count at September 30, 2016 as compared to September 30, 2015
• Net income of $10.9 million for 3Q16 and $36.7 million YTD 2016
• Stockholders' equity of $377.2 million at September 30, 2016 increased 14% compared to September 30, 2015
• Return on average equity of 11.7% in 3Q16
• Repurchased 284,377 shares for a total of $4.0 million in 3Q16; $49 million remains in share repurchase authorization
• Continued growth in voluntary personal lines aided by expansion in North Carolina with 4,899 policies-in-force at September 30, 2016
• Began writing policies in South Carolina with production showing steady growth month over month

Bruce Lucas, the Company's Chairman and CEO, 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."

Quarterly Dividend

The Company announced that its Board of Directors has declared a quarterly cash dividend on the Company's common stock of $0.06 per share. The fourth quarter dividend of $0.06 per share is payable on January 4, 2017 to stockholders of record as of December 15, 2016. The declaration and payment of any future dividends will be subject to the discretion of the Board of Directors and will depend on a variety of factors including the Company's financial condition and results of operations.

Results of Operations

The following table summarizes our results of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands, except percentages and per share amounts):