Heritage Insurance Holdings, Inc.

e.g., third quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, today's event is being recorded. I'd now like to turn the conference over to Kirk Lusk, CFO. Please go ahead.

Good morning and thank you 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 upon management's current expectations and subject to uncertainty and changes in circumstances. In our earnings press release and 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 the 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. Our comments today will also include non-GAAP financial measures. The reconciliations of and other information regarding these measures can be found in our press release. With me on the call today is Ernie Garite, our Chief Executive Officer. I will now turn the call over to Ernie.

Thank you, Kirk, and to everyone joining us today. I will discuss our third quarter performance, progress of our strategic initiatives, and provide updates on our progress towards sustained profitability. After my overview, Kirk will delve into our financial metrics, and then we'll open the floor for questions. Despite challenges in the property insurance space, including social and actual inflation, increased frequency and severity of catastrophic events, and rising reinsurance costs, I'm encouraged to report a substantial improvement in our financial position and strides towards sustained profitability. Our third quarter saw a net loss, but with an improvement from the same quarter last year. Our policyholders, agents, and employees were significantly affected by two catastrophic events this quarter. In early August, wildfires on the island of Maui caused devastating losses, followed by Hurricane Idalia in the Florida Panhandle at the end of the month. Our policyholders and employees affected by these events remain in our thoughts. and we are steadfast in our commitment to fair and timely claim handling. The strategic profitability initiatives we shared a year ago continue to guide our actions. We've seen a 25.5% increase in average premium per policy year over year, and a 5.1% increase quarter over quarter. Our premiums in force are up by 8.4% at $1.3 billion. with a reduction in policy count by 13.6%. These improvements signify our meticulous efforts to manage exposures, particularly in personal residential business while expanding commercial residential business. In Florida, we selectively grew our commercial residential premiums in force by 75.3%. while maintaining a disciplined approach that led to a 16% decrease in Florida personal lines policies enforced year over year. This approach has created a more balanced and diversified portfolio, with no state exceeding 27% of the company's total insured value, even with the significant commercial business growth. Our total insured value outside of Florida accounts for 73.5% of our entire portfolio, slightly down from 74.8% in the same quarter of 2022. This change reflects a conscious strategy driven by careful exposure management and selective expansion in Florida's commercial segment. Our focus remains unaltered. We continue to prioritize rate adequacy selective underwriting, and judicious capital allocation to products and geographies promising long-term returns. We are committed to continuous improvements in claim handling, including an upgraded claim system and claim processes, which will allow our claims team to work more efficiently. We remain resolute in our commitment to timely pay legitimate claims and deny or contest what we do not owe. We are confident that our strategic initiatives will continue to bear fruit, translating in consistent long-term quarterly earnings and enhanced shareholder value. Let me turn things over to Kirk for a review of the results in the quarter and key financial performance metrics.