Heritage Insurance Holdings, Inc.

Book Value Analysis:

Book value per share was $20.22 at September 30, 2026, an increase of 23.4% from December 31, 2025 and an increase of 42.9% from September 30, 2025. The increase in stockholders' equity from December 31, 2025 was primarily driven by net income, partially offset by a $22.7 million net-of-tax increase in unrealized losses on the Company’s fixed income securities portfolio and the $27.9 million repurchase of 1,101,508 shares of common stock in 2026. The decline in the number of shares outstanding from December 31, 2025 was driven by the repurchase of common stock and shares surrendered which was partially offset by the issuance of restricted stock in 2026. Average stockholders’ equity increased 42.2% over the prior-year quarter, which caused the return on equity for the prior-year quarter to be higher than the current quarter, despite higher net income.

The accumulated other comprehensive loss of $33.2 million, net of tax, represents unrealized losses on the investment portfolio and is unrelated to credit risk but is instead attributable to rising interest rates. Heritage does not anticipate a need to sell investments in advance of their maturity. As such, the Company expects unrealized losses to continue to roll off the portfolio as investments mature. The average duration of the fixed income portfolio is 3.3 years as the Company has extended duration to take advantage of higher yields further out on the yield curve, while still maintaining a short duration, high credit quality portfolio.