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Investor Presentation March 2016 Heritage Insurance Holdings, Inc. (NYSE:HRTG) Disclaimer Safe Harbor Statement This presentation contains forward - looking statements that are based on managements beliefs and assumptions and on


  1. Investor Presentation March 2016 Heritage Insurance Holdings, Inc. (NYSE:HRTG)

  2. Disclaimer Safe Harbor Statement This presentation contains “forward - looking statements” that are based on management’s beliefs and assumptions and on information cur rently available to management. Most forward-looking statements contain words that identify them as forward- looking, such as “anticipates,” “believes,” “continues,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms that relate to future events. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Heritage Insurance Holdings, Inc. (“Heritage”) to be materially different from any projected results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent the beliefs and assumptions of Heritage only as of the date of this presentation and Heritage undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. As such, Heritage’s future results may vary from any expe ctations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree. Heritage cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial or operational goals or targets will be realized. For a discussion of some of the important factors that could cause H eritage’s results to differ materially from those expressed in, or implied by, the forward-looking statements included in this presentation, investors should refer to risks identified in Heritage’s Annual Report on Form 10 -K for the year ended December 31, 2014 and the Annual Report on Form 10-K for the year ended December 31, 2015 which is expected to be filed with the SEC on March 8, 2016, subsequent Quarterly Reports on Form 10- Q and Heritage’s other filings with the Securities and Exchange Commission. 1

  3. Innovative Team Identifying New Opportunities Continued Opportunity in Florida & Multi-State Expansion Underway New Product Introductions Seasoned Management Team Proven Underwriting & Unique Claims Servicing Model Deep Relationships with Highly Rated Reinsurers Strong, Conservative Capital Structure 2

  4. Heritage: Investment Case • Founded in 2012 to provide personal residential insurance in Florida Business • Business has expanded to include commercial residential; policies in force have grown to ~257K, or ~$592MM in annualized premium as of 12/31/15 • 2013: 45.0% ROAE (1) Superior ROE • 2014: 26.5% ROAE (1) Potential • 2015: 30.2% ROAE (1) • Rated “A” (Exceptional) by Demotech; $357MM GAAP equity as of Strong Balance 12/31/15 • Conservative reinsurance program, which includes pre-paid Sheet reinstatements, designed to capitalize on favorable pricing dynamics • Vertically integrated, end-to-end claims resolution Unique Claims • In-house water mitigation / restoration & reconstruction services is key Servicing Model competitive advantage • Voluntary policy growth, multi-state expansion and M&A, incremental Sustainable Citizens take-outs Market • Expansion in commercial residential, general liability and other Opportunity products; approved in North & South Carolina, Alabama & Mississippi 3 (1) ROAE = Net income / (Beginning stockholders equity + ending stockholders equity / 2 )

  5. Core Market: Attractive Florida Market Dynamics Population by sq. mile 1-50 50-500 >5000 • Capturing opportunity in Florida Florida is 3 rd largest U.S. state and is projected to grow over 36% by 2040 (1)  Population is skewed toward hurricane-prone coastal areas  Market dislocation following Hurricane Andrew accelerated post 2004/2005 seasons  National & regional insurers reduced exposure in Florida with market share declining 87% in 1999 to  32% in 2013, creating opportunity for FL specialists (2) Heritage has opportunistically grown its market share to become the 3rd largest FL domestic personal and commercial lines insurer by gross premium written as of 9/30/15 (3) Source: FLOIR, Citizens, SNL Financial. (1) University of Florida, Bureau of Economic and Business Research, Florida Population Studies, Bulletin 169, June 2014. (2) Market share defined by Direct Premiums Written. Excludes insurers who only operate in Florida and Citizens 4 (3) Excludes State Farm

  6. History: Strategic Approach to Market Opportunities 2012 2013 2014 2015 • Initial $23MM equity • Formed the CAN • IPO: NYSE “HRTG” • Acquired BRC raise Managed Repair Restoration • Acquired the assets of • Began writing Vendor Program Specialists SVM (water mitigation • Second $33MM equity • Approved to write voluntary policies in firm) and formed Florida raise Heritage Claims P&C in North & South Response Team Carolina • Participated in 1 st • Formed Osprey Re • Built commercial • Assumed ~68K Citizens take-out • Assumed 5 Citizens residential department personal and ~830 personal residential • Acquired SSIC commercial policies take-outs totaling • Announced ~90K policies • Assumed ~57K acquisition of Zephyr personal and 2.2K commercial policies 5

  7. Overview of Zephyr Transaction Zephyr Overview Transaction Highlights • Zephyr Insurance Company (“Zephyr”) is a specialty property insurance company domiciled in Hawaii and • Acquisition of Zephyr by Heritage in an Transaction headquartered in Honolulu, HI all-cash transaction • Founded in 2000, owned by privately-held Ocean Harbor Insurance Group • Led by President Richard Toyama with 15 employees • $120mm purchase price, subject to Deal Value focused on providing differentiated customer service to closing GAAP book value adjustments policyholders • One of the largest residential insurers in Hawaii with LTM GPW $68mm and ~30% of the wind-only market share • Cash on hand Financing • Product: single peril residential hurricane-only policies to Hawaii residents • Form A acquisition filing with the State of • Distribution: Network of 80 independent agents and Approval and Hawaii Insurance Division approved late through partnerships with other insurers Timing February; expected close in 1Q16 • Key Statistics: • 6/30/15 LTM Net Income (1) : $10MM • Zephyr management team and employees to remain in place • 6/30/15 Capital & Surplus: $58MM Other • Opportunity for substantial reinsurance • Rating: Financial Strength Rating of A’ from Demotech savings from diversification 1) Net income negatively impacted due to elimination of quota share in June 2015. Excluding 6 quota share estimated annual net income ~$13MM

  8. Since IPO: Delivering on Growth and Strategic Initiatives • Opportunistic policy assumptions ~257K policies in force as of 12/31/15, 75% assumed from Citizens  ~$60MM in premium acquired from Sunshine State Insurance Company (SSIC)  Citizens take-outs in 2015 were ~68K policies. Incremental 2016 Citizens take-outs:  ~4,000 policies in Jan, ~7,000 policies in Feb before final opt-outs • Diversification Growing commercial book, commercial underwriting team established  Multi-state growth: licensed to write new business in North & South Carolina, approved in  Alabama & Mississippi, and have applications pending in Massachusetts & Georgia Zephyr acquisition provides immediate presence in Hawaii; opportunistic M&A  • Optimal Reinsurance Program 2015-2016 Favorably priced, multi-year reinsurance (~$1.8B first event, ~$2.2B total)  Completed $200MM Citrus Re CAT bonds in 2014; $277MM in 2015; $250MM placed for  2016 • Grow Florida Market Share Approval on take-outs from State Farm, Allstate, B&B, AAA Insurance  Network of ~1,400 independent agents actively writing policies  • Enhance Claims Handling and Repair Services Acquisition of Contractors Alliance Network for water mitigation & loss containment  BRC Restoration Specialists adds fire, mold, roofing services & add’l water mitigation  7

  9. Executing Voluntary Business Strategy Personal Residential (1) Policies Inforce (000) • Personal Lines Voluntary 25,000 $70,000 2015 new policies bound were  $60,000 approximately 23,000 polices, 20,000 $50,000 +24% y/y 15,000 $40,000 2015 inforce written premium of  $30,000 10,000 $60MM, +63% y/y $20,000 Inforce written premium including  5,000 $10,000 SSIC $99MM at year-end - $0 2013 2014 2015 New Policies Bound Inforce Written Premium • Commercial Lines Voluntary Commercial Lines Premium Written (1) Established in-house commercial  $(000) team in 4Q14 40,000 New premium written in 4Q15  over $20MM 30,000 Inforce written premium of $46MM  20,000 at end of 4Q15, up from $6MM in 4Q14 10,000 Commercial offers attractive biz  0 mix-shift given lower loss ratios 2014 2015 (1) Excludes SSIC policies and premium. 8

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