Heritage Insurance Holdings, Inc.

Good morning and welcome to Heritage Insurance Holdings Second Quarter 2021 Financial Results Conference Call. My name is Ilie 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 Ernie Garate, our Chief Executive Officer, and Kirk Lusk, our Chief Financial Officer. I will now turn the call over to Ernie.

Thank you, Arash. Good morning, everyone. Thank you for joining us today. We have been very fortunate that COVID-19 continues to have virtually no impact on our business, and much of that has to do with our employees. productivity remains high and we continue to provide our policyholders and distribution partners with the service they have come to expect from Heritage. I would like to thank all of our employees for their dedication. At first glance, the second quarter's negative net income appears disappointing, but there's a brighter story underlying the quarter's results. Despite a $9.4 million reinstatement premium in the quarter and a $4.1 million uptake in weather losses relative to the first quarter of this year, net income improved sequentially, suggesting the benefits of our underwriting and pricing actions are starting to show. It's still early innings, but we're optimistic that we're on the path to improvement. We're continuing to aggressively raise rates and taking underwriting actions to improve our profitability. As we previously communicated, our focus is firmly on bottom line results rather than top line growth. We demonstrated this in the second quarter as gross premiums written growth decelerated from the first quarter. Additionally, premiums enforce growth significantly outpace policies enforce growth, which is indicative of our focus on rate adequacy. We renewed our core excess of loss reinsurance program in the second quarter, and I believe we are solidly positioned for hurricane season. Relative to prior year's program, we've prepaid all reinstatement and eliminated co-participation above our retention. Overall, we have a solid program with fewer moving parts, which is a testament to our relationship with our valued reinsurance partners. I will now turn the call over to Kirk to provide more details on our financials.