Heritage Insurance Holdings, Inc.

Good morning, and welcome to the Heritage Insurance Holdings Third Quarter 2021 Financial Results Conference Call. My name is Ian, and I'll be your operator today. At this time, all participants are in the list only mode. A brief question and answer session will follow the formal presentation. Please note, this event is being recorded. Now I turn the conference over to Arash Soleimani, Executive Vice President at Heritage. Please go ahead, sir.

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, and thank you for joining us today. First, let me start by thanking our employees for their hard work and dedication over the past few months. Our employees continue to provide superior customer service to our agents and policyholders and demonstrate Heritage's ability to serve in its markets as a super regional carrier. While we were disappointed with the loss in the quarter, I'm encouraged by the underlying signs of improvement that I expect will continue next quarter and throughout 2022. Excluding realized capital gains, pre-tax income improved by about $10 million year-over-year, which was largely driven by a 10-point improvement in the net combined ratio, including almost seven points of net loss ratio improvement. Even though current accident quarter weather losses were up about 4 million year over year, the corresponding current accident quarter weather loss net loss ratio actually improved by almost three points. These improvements are driven by our focus on rate adequacy and underwriting optimization. For example, as of quarter end, premiums in force were up 13%, while policies in force were only up by 3%, resulting in premium growth outpacing policy growth by over 10 points. This was even more pronounced in our Florida Homeowners Book, where quarter-end premiums in force were up 7.5%, while policies in force were down 5.4%. with premium growth outpacing policy growth by 13 points. I'm confident in our business plan and the underlying improvements that have started to emerge should become even more visible next quarter and particularly in 2022. I will now turn the call over to Kirk to provide more details on our financials.