Heritage Insurance Holdings, Inc.

Good morning and welcome to Heritage Insurance Holdings First Quarter 2020 Financial Results Conference Call. My name is Ailee and I will be the operator today. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Please note this event is being recorded. I would now like to turn the conference over to Arash Soleimani, Executive Vice President at Heritage. Please go ahead.

Good morning and thanks for joining us today. We invite you to visit the investor 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 on management's current expectations and are subject to uncertainty and changes in circumstances. In our earnings press release and in 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 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. With us on the call today are Bruce Lucas, our Chairman and Chief Executive Officer, and Kirk Lusk, our Chief Financial Officer. I will now turn the call over to Bruce.

Thank you, Arash. I would like to welcome all of you to our first quarter 2020 earnings call. Before we begin the call, I'd like to thank all of our employees for their dedication to our company. I'd also like to thank all healthcare workers and other essential personnel for their service during these unprecedented times. The company has had tremendous momentum over the past year. The core components of the company continue to improve, and this improvement accelerated again in the first quarter. Book value per share is up 9% year over year and at a 12% compound annual growth rate since year end. Top line revenue continues to trend higher, and gross premiums written increased 8.9% year over year, Both new business production and gross premiums written hit a new record for the company in the first quarter. Our higher growth rate outside Florida reflects our continued shift to more stable and diversified markets and further solidifies our standing as a premier super regional insurer. At the end of the first quarter, approximately 30% of our consolidated TIV was in Florida, with only 6% of consolidated TIV in the volatile tri-county region. and I'm unaware of any peer carrier that has this market advantage. Heritage continues to be unique among peers, as evidenced by reporting our seventh consecutive quarter of favorable prior year reserve development. During that same period, our peers have more often reported adverse reserve development. We believe our diversification, solid underwriting, and prudent reserving process will continue to drive outperformance. While COVID-19 remains an issue for the macro economy, the homeowners insurance sector, our core focus, continues to be highly resilient. Our products are essentially a must-have for all homeowners, renters, and landlords, regardless of economic conditions. We did not see a drop-off in sales in March, and new business sales in April set a new monthly record for the company. There is no guarantee that these trends continue, particularly in an uncertain and volatile macroeconomic environment, but we have weathered the storm incredibly well so far. We do not write business interruption insurance, and we don't have material exposure to other economically sensitive lines of insurance. Given our confidence in the resilience of our business through economic cycles, we took advantage of stock market conditions and aggressively repurchased our shares in the first quarter. We repurchased 766,900 shares at an average price of $10.41, 35.4% below first quarter book value of $16.11. We have every intention of continuing our share repurchase program as long as our share price does not reflect fair value. I will now turn the call over to Kirk to provide more details on our financials.