Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q4 2022 Earnings Call Transcript

Ernie Garateix: So, what I would say is that we have very good relationship with each of our regulatory environments. And we are always proactive to provide them information of what’s going on. So, a case in point, as we go out and are placing our reinsurance, we are not waiting until the reinsurance has place to have the discussions. We are giving them some insight as to what’s going on and working with them on that piece. So, again, everything from a rate perspective is backed up actuarially, right. We are not looking at numbers and saying, this is what we think. This is based on metrics that are coming in from loss costs, reinsurance pricing that the actuaries put together and then make the case on that piece. So, I think we will continue those conversations with them proactively in front so they understand what is happening in the marketplace and why these rates are necessary.

Kirk Lusk: Yes. And I would say, it does vary by state, but in general, they are seeing the reality of the reinsurance rate increases. And I would say, the bulk of them understand the situation. And so therefore are understanding how we are approaching it.

Paul Newsome: This is also last question. And I appreciate the strong results.

Ernie Garateix: Thank you, Paul.

Kirk Lusk: Thanks Paul.

Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to the management team for any final remarks.

Ernie Garateix: Thank you. We would like to thank everyone for joining the call today and appreciate the interest in Heritage. We are encouraged by these fourth quarter results and look forward to the balance of 2023 as we continue to execute against our strategic profitability initiatives, to achieve consistent long-term quarterly earnings and drive shareholder value. Thank you, and have a great weekend.

Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.