HRTG - Earnings call transcript Q1 2018 | Heritage Insurance Holdings, Inc.

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Operator

Good morning, and welcome to Heritage Insurance Holdings' First Quarter 2018 Financial Results Conference Call. My name is Andrea and I will be the Operator today. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Joe Peiso. Please go ahead.

Joseph Peiso

morning. Good to current section our quarter will archived. you heritagepci.com, our earnings the be the where earnings visit invite of Investor website, call We release and convenience. for review These replay are available at materials your or Today's call may forward-looking statements. contain to These current represent risks, and judgment no to our uncertainties. subject update, statements are undertake which assumptions we obligation and

for XX-K For to statements, those Form on Chairman from & the earnings are CFO forward-looking call release, this other Chief differ over please or to non-GAAP financial our report the in one our Bruce measures of to and described I the risks annual GAAP more Lucas, today's discussing Kirk and call, could the that along with press Also, Financial the description defined our made now measures. materially With most a Officer. cause call Chairman results the our refer the will compatible and our including filings today during be us of SEC our in Lusk, quarter's will reconciliations on CEO with SEC. required Bruce. disclosures, course turn

Bruce Lucas

quarter like you, to first Thank all XXXX of earnings would welcome our call. you Joe. to I

ago employees dedication business plan. like We I'd thank we the expand making consolidated excellent our with are geographic to begin years results. on our is very Before producing call, the began to I pleased initiative all for of am to footprint, company. our their our progress several which we an

total multi-state Florida The quarter in season, only the XXXX. Florida. volatility. risk diversification first new insured During and to consolidated hedge the hurricane enables into were earnings Heading of of quarter, the business originated policies of in the XXXX our company versus is value of expansion of XX% XX.X% first XX.X% outside

just The storm million $X in impacted winter were and in retention reinsurance first however, the the $XX.X severe particularly pre-tax over income. million; record winter was further reinsurance $XX able operating after hedge net storms a these NBIC's we significantly Northeast million was in This to loss company by to helps on solid produce portfolio gross net income quarter. recoveries. reduced to totaled the Our million activity. $XX.X true risk. Despite that the NBIC conservative program in was storms,

to continue the We improved operating see metrics company. across

increase first combined net to XXXX. increased the Book Our an a in and declined XX.X% to $XXX.X correlates per increase sales grow to jumped The numbers to in quarter Policy share year-over-year value to sales compared which $XX.XX per XX.X% million. record ratio in XX.X% in quarter-over-quarter share. to premiums increased continue year-over-year. XX% of XX% force

integrated fraud, decrease The to Finally, gross where diversify network vertically decision our the in particularly XX.X% to loss effectiveness despite claims reflects of consolidated versus persistent AOB our the Tri-County our fraud ratio and AOB from away XX.X% Florida the ratio of prevalent. loss declined year-over-year. area is

has Network We anticipate are Hawaii completed foundation network operational company its and areas. these Contractors expansion Northeast, Southeast in of once further reinsurance laying is the in Alliance and additional for the XXXX program. The benefits the

On our was the earnings early I about placements. call, optimistic prior reinsurance

our our and noted, market the approximately Florida X/X is adjustment in lowest believed expense the average As to be expense the loss of of composite. ratio peer

Our program. our expenses, unique placement reduced approach to of handling the facilitated which claims

detail Year-over-year, company. helped on for will also risk-adjusted keep a basis. the reinsurance financials. to on provide under We reinsurance consolidated than X% reinsurance purchase result our only meaningful multi-year Kirk further This our tremendous turn the to I increased over control. now our have costs call a is less to coverage, which more

Kirk Lusk

period. reflecting XXXX as to XXX% was and basic XX% acquired our $XX.X million income million the share of in to million, generated to the million an $XX.X vertically income compared November in earnings fourth as well model, XXXX. NBIC first $X.XX per income, increase quarter reinsurance by Operating of of operating business quarter the diversification quarter net of an acquisition of of Net integrated over XXX% the $XX.X Good per reflecting compared in of geographic of prior an in the Bruce. the XXXX. morning. of program. NBIC, The XXXX. to an increase increased our excluding The income earnings year quarter, which the which increase an for you, increase for share breadth of earned for QX of as of XXX% was translates income strength QX Thank $XX.X from million is $X.XX, was reflects the $XX.X increase for the the Operating of for portfolio, quarter, the the

The commercial Looking the of at exclusively $XX the the almost year-over-year offset gross line; $XX written due of the reflecting acquisition NBIC, premiums increased in decrease an increase property to was portfolio. top million, by million $X in million an legacy portfolio. decrease by

Broward. quarter. XXXX, taken communicated, previously has over of last QX $XX of and earned residential increase the million a As in increase actions XX% Miami-Dade reduce its premiums counties the were to Gross contributed and in million $XXX commercial particular exposure management year. for to at the NBIC QX

the reflecting premiums in Excluding million, earned decreased NBIC, gross portfolio, the de-risking commercial previously. by mentioned $X

for the year-end. also ratio of the in as XX.X% of of of to various XX.X% XXXX, addition Florida, policies million from reflecting tri-county $XX of the premiums in Policies of Correspondingly, NBIC portfolio. in the of $XXX was million the the against XXXX. for XXXX $XX diversification; highest and CAT at the at to portion provide up the measured XX.X%, premium consolidated the geographic with shift business. business QX To and increased of XX.X% to on quarter. of from increased perspective levels new XX.X% area premium Ceded million, the company a its force the over at of earned, from from quota gross ceded QX as overall XX% on premiums programs from dropped generated end program QX XX.X% share down quarter the force were the production the business one New in our in in

contributed incurred premium ceded ratio the increased XXXX from QX first Net of year-over-year at down premiums $XX prior to the increase the were XX% in to million QX year increase period. a XX%. $XX.X million include $XXX from Losses earned of XXXX, loss NBIC, is XX%, expenses NBIC million adjustment which $XX earned Excluding the $X XXXX. at was and for in Loss period. The million net for from premiums. XX.X%, quarter losses from in decreased net and loss last XX.X% from year relatively $X.X prior storms year down period. the loss and was in same ratio the quarter of And year. gross our ratios XX.X% prior winter the the million million Both with adverse development. of net the the loss net year consistent quarter, XX.X% prior gross ratio was the

associated XX.X% production Heritage's was decreased in measured net were premiums the performance. and earned, QX, costs commissions proportion net XXXX. as to XX.X% the year-over-year the at at costs from million QX, impact XXXX on reflecting positive loss the NBIC, loss ratio, expenses business. underwriting to expense ratio Ceding against offset the operating acquisition of with Excluding XX.X% and actions of ratio against The net $XX from CAN

approval Connecticut, increases business received and HOX for the for in Massachusetts in voluntary rate have We Florida.

of and is ratio as of drop ratio net from XXXX percentage down premiums slight from the at of year-over-year improvement quarter which a was year-over-year Our XX.X%, XX.X% in as a decrease combined the expense The QX, quarter, XXXX. XX% earned, down losses XX for reflects the for the the in year-end points. and

the Moving of the to the investments, change to shareholders, by the to of predominantly minimize end are decreased portfolio With balance at our to $XXX and reflects claims, XXXX. increased questions. million Hurricane stock million by The the shares to-date quarter, payment investment Reinsurance change post the repurchase of investment your reinsurance income XXX,XXX the shareholders' offset for a that, funds the The from tax-effected approximate of for Bruce dividends assets of available invested $XX very $XXX pending common quarter. sheet, Irma during $XXX for million. portfolio. Total the received I take quarter, the net remains unrealized to and equity use in of conservative mostly risk recoveries recoveries. quarter-end driven million

Operator

question And Barnidge John [Operator our comes from of Sandler O'Neill. first Instructions]

John Barnidge

than this year XQ of a year? premium are in the XX.X% quarter ceded in of I closer XQ, your ceded the off to forward? leveling XX% on you Narragansett What the Heritage not balance ratio see expecting. were Do know in higher is we the to thoughts was premium The because going some wonkiness the are program. ratio XX% on reinsurance there

Kirk Lusk

reduction, but year. CAT throughout I quarter-over-quarter. a the It going their ratio coming be way to in consistent slight have of to going be think the that -- the of because could could rest the is XOL is probably that minimal it's relatively

it's consistent. to say, would be, going So I fairly

John Barnidge

the have going there real A driven being basis. a positive been net and by the What's expense on ratio to policy sustainable acquisition the how XX.X% cost that? on ratio in quarter is seemed decline,

Kirk Lusk

by those Expense is the are coming do commissions We that ceding that. driven lot impacting between G&A, and a cost the that it's ratio, acquisition yes, allocate through. policy the so

expense -- the to think, going consistent relatively, could going it's we the year forward, Looking be is a bit, probably also. be but ratio for that uptick think I little

John Barnidge

quarter? Narragansett you Bay contribution quantify way could from the level net any there of Is premiums the earned in

Kirk Lusk

Net premiums earned?

John Barnidge

Yes.

Kirk Lusk

million. $XX Yes, it's small, relatively

John Barnidge

is question wind-only to And volcano, have Zephyr the exposure and then, re-queue. the for to case in confirm it no Hawaii, is I in just know anyone last concerned, you but I'll correct?

Kirk Lusk

no exposure That's at all. right,

Operator

Mark Our next of from comes question SunTrust. Hughes

Mark Hughes

XXs, ceded ratio, is are So you low the that premium suggesting? what

Kirk Lusk

Yes.

Mark Hughes

synergies were generating successful how with then, program? you And the reinsurance in combined

Bruce Lucas

Yes, generating synergies we with some were basis a NBIC. definitely combined successful on in

time I'm synergies, to it the of in. in get treaties its acquisition, treaties rate year. on XXX% Those going a a this are take was will numbers to a full increases of buys baked lot report NBIC basis. pricing year-over-year. the XOL tough companies us multi-year sure primary at stated are adjusted the As the XX% two because It approximately of environment a of

relatively synergies are did and increases under For kept the market, pressure that flat we our that to helped good some there price while control. counteract in us, remain it have

Mark Hughes

Right.

the X% does the synergies? So, include risk-adjusted

Bruce Lucas

Yes, it would.

Mark Hughes

storm? of probably of And network, to this you are drops how much element you consider then some think some QX you as quarters, about would getting benefit that related follow-through subsequent there that off? which the Is contractor did non-recurring of get the we in or

Bruce Lucas

you Yes, there fourth benefit into another is unless I would probably successful drop the pretty were we in but to see going as storm, quarter, that and third get off, say us. getting out tail second expect positive tail is that for the policyholders. quarter. There in would I down to of to is business, wind see the way its you're kind a that which

time about right frame. think probably the that's I

Mark Hughes

throw any of magnitude then care at the numbers the you extra of say? And kind you benefit to that, might

Bruce Lucas

is competitors This five everybody secret. separates trade it, will our is market. a the this in us in calls, building We other from their division. what years last try own. spent I year in let on said our $XXX we've million figure developing this out to it on did as No, else revenue it,

Mark Hughes

Then us a new you or could quarter, final question; quarter, that the $XX in ago few for million I context suggested -- stacks year last business up? quarters you of how what had think generated that give some

Bruce Lucas

have Yes, would get I've PEFs I we're pulling the premium got levels. on to numbers levels. now, back you those PEF. are to

look XX,XXX. a year you was generated at PEF, just If ago, was that it under

year, up plus. XX,XXX, of over so kind comparison, a You this look it's year-over-year XX% about at

a So, it big increase. pretty is

Mark Hughes

the Yes. that is Is that? bigger of the driver -- NBIC

Bruce Lucas

in we because them going year fair it, that's of be Yes, obviously didn't portfolio ago. have to a the amount a

above tell been We're multiple that quarters -- hitting can see that I are absent don't yet sales we trending in trailing we well numbers off Southeast expectations. our a However, sales again. are at NBIC, all. getting you and It's row record

Operator

of Our comes James Citi. from next question Naklicki

James Naklicki

So the you of bit loss year-over-year, had XX about a improvement ratio bps. in little

XX%. some a rate the that expect increase the over of balance improvement loss around on Property getting the You're book ratio? big year Citizens in pretty we Can

Bruce Lucas

we so. the handling a downward really It Alliance have we are claims quarters that effectiveness but all the depends get hope aware our where hope of to level. business. ratio. now Contractors to not dividends. down jurisdictions paying strategy, carriers in They for we other a over been of trend weather, Florida additional really low once in write of six definitely consistently And online diversification it We It's improvement. that's Network loss true we I'm on our But testament divisions. particularly five, have pretty showing a

James Naklicki

is contract, reinsurance going And then still the be on to new million? your retention $XX

Bruce Lucas

Heritage P&C, it's That's Yes. Narragansett number Bay. lower a for for

Operator

Our of next from question Soleimani KBW. comes Arash

Arash Soleimani

X the XX Just net? gross, wanted Did a couple numbers were to first of questions. you confirm say CATs

Bruce Lucas

Yes.

quarter, Bay the Narragansett correct. For first in

Arash Soleimani

that is Alliance, Florida And is -- currently Contractors only?

Bruce Lucas

Yes.

Arash Soleimani

like that of in marginal for up Alliance, would was ratios said trying that it just contributor a And the release, or where Contractors not was meaningful just that? so contributor the been you to sense loss if and have get a

Bruce Lucas

that Arash, It's really cost Contractors I in claims handling. and meaningful, considerably pretty does mean help Network Alliance us we of the in work control do terms

Network Alliance quarter. Contractors loss our ratio really is a contributor So our meaningful substantial part It's performance to a business. of every

Arash Soleimani

in I at into that each can down And terms subsidiaries of acquisition it then you the question break was cost, had, of and like Heritage, Zephyr Narragansett? next what the policy

Kirk Lusk

look we segment. it at No, as one

businesses. break don't we by So, it those individual down

Arash Soleimani

-- release, allocate cost had acquisition separately. do between and G&A two? into policy you million determines, split you it And in and the how $X.X how then like those like What $XX.X million

Kirk Lusk

to XX% just acquisition that entity the G&A has right percentage. XX%, split for the and Yes. with can also the within it's In a service sector, for as, at it It about example, do total. policy costs now you look

it really expenses proportion is are in utilized generate allocated that So the it. to to

you our and when G&A premium then taxes, supplemental, the acquisition piece. expenses, So policy those into at the cost commissions, look items all

about it's XX%, split. So XX%

Arash Soleimani

ceding without that? will excluding so the the benefit? is that be G&A And it Why commission why is elevated that it

Kirk Lusk

part of it and -- is little up part of it's investments. is, continuing a are there Well, bit it

the fact network adding So some some looking Northeast. There those. for we're up the at in additional the that CAN associated mentioned expenses with there. additional example, Bruce expanding are products We're

and continue go we going additional forward. the to profits as additional year, be generate So revenue there throughout will investments to

Arash Soleimani

like we process like or investment? that kind would in in that, drop the at a be expense XXXX suggests the of off XXXX kind some or is we ratio if look of decent that expect as should a there terms roll of does that And investments of multi-year to those this continue

Bruce Lucas

drop us new 'XX off Yes, to for in the next ramp-up territories. new where year. is CAN expanding different it we're probably I products, out would expect year into states, some rolling

ramp look projected understanding some decrease that me that up. firm try there be numbers, So to with honest the have and Arash, is don't just be level with right I through what have a of you, to detail I to get now. would would of and

Arash Soleimani

problem. haven't a an in Sure, with the And that those of yet, not renewed terms have policies, been cost acquisition associated do them? Sawgrass

Bruce Lucas

No.

Arash Soleimani

ceded XOL premium NBIC premium in and was quota And 'XX? what terms in of the the XQ reinsurance, the for share

Bruce Lucas

premium of There ratios. ceded was one quarter

Kirk Lusk

like typically total, CAT that's Yes, well the in up include both for to around it's ceded quota premium XX% ratios and -- going NBIC, again, shares the portion.

get So we then you can get XX. kind of -- the where to can to

Arash Soleimani

XX% the was what So representing?

Kirk Lusk

NBIC's ceded ratio. premium

Arash Soleimani

was And you said quota-share? the XX the

Kirk Lusk

total, Yes, consolidated.

Bruce Lucas

Consolidated.

Arash Soleimani

And in of at in we basically this that or place, process non-renewing is had to Florida expect that done process continue terms should the management you've exposure point?

Bruce Lucas

firmly pretty that AOB Arash, and and this I'm we we yes, believe is going for are not have -- on adamant been anywhere years. --

a monumental just I think other are making are that in carriers market mistake. aggressively that writing

Beach, until much. and years. that's The real trend a We in Palm AOB in and here bit areas are there but do not fix legislative it, is is take little writing in in that will a Broward. Dade select We not

take down So our seeing increase but does we despite policies increases. the are rate continuing high increases. attrition percentage there, bit rate to of we're a a remarkably That little sticking

lot risk. We're we're that. the the downward that some building do comfortable with makes of So, takes area of reinsurance we're projections our stabilizes of to around additional stable volatility program terms us a believe going downward risk and erosion much how stabilizes in management spend, of in that it's overall exposure. it Tri-County pretty the But that. there a is to more going in it financials and from earnings, company be standpoint, it a our out it trickle in picture a managing I be

Arash Soleimani

And in does both and commercial this include homeowners Tri-County? residential the

Bruce Lucas

of Yes incredibly Arash, competitors if a commercial those located and there, TIV concentrated pick wants they our lot Southwest. it. it is look Tri-County does. in I high the were some In that to one think that policies just risk and particular, we was them, said in one had have residential of can We at

even And them. knowledge, those on go. so let policies didn't we we my quote To did

one just one with right of commercial TIV? management Do in And million it's have $XXX a million be $XXX that TIV, to down want street off risk from so $XXX million with next really. TIV to a I to tornado CAT a policy which in another is there in If could with spawn-off residential really a and the hit Not that were pretty devastating. down perspective. area;

with Matthew post comfortable else I risk, him just us, luck. wish things Irma. re-evaluated somebody the if for feels and So best that we of But

Arash Soleimani

expect the end when to effect, run book a the something this kind level? like you reduction should kind we exposure or kind like of at are like do you the where terms point premium is of leave think gets So the of of comfortable XXXX a until of to in rate

Bruce Lucas

margin On commercial rate I XX% residential, and between Tri-County, because saw run it absolute have axe. stabilize guard and well. we're rate inflation QX, We balance non-renewed rate to increases go your if up a with helps portfolio kind the drop mean It the we residential some really on QX the as in attrition comfortable you premium in commercial the there. policies. numbers. you attrition. level. We're large And extremely In that mainly -- biggest versus of plus it's of it's is

Arash Soleimani

And much QX? Sawgrass as last on again is how wanted from I just force base in to was of business Sawgrass year touch -- still

Bruce Lucas

for you. Let's see if pull we can that

force, about which what $XX to assumed. is million we in have of We close pretty

Arash Soleimani

been, for some cost, cost on you did the the of in with dollars new say provided have know I actual reinsurance that, the program? you And would detail the terms

Bruce Lucas

that in We just literally fact closed have program. and on we not,

right net costs etcetera. So we're with that associated now the placement are fees, going through

soon. given premium what have we spend is on consolidated updates actual probably better have reinsurance. some should that But for ratios we So ceded

So think those right I safe pretty are use to number now.

Kirk Lusk

that contemplates that and spend. Yes

Bruce Lucas

the Arash, we make anyone. the peers, in evident want I way what I our Florida. for we the really increase And that article Sun loss what We things absolutely pricing, at And almost there our that increased our I'm looked better Florida of increases -- that Then was I'm to quarter, And litigation. our to average writers, the only quarter first knowledge, other in than one litigation. too exactly that in was it State at got best-in-market don't litigation reason going average XX tower a I group you of the in were carriers, little And around single-digits. ratio, that first spend handled to do if the top the lowest like looks XX% is like, across the the Sentinel out XX% for CAT. came looked expense versus believe Top a to we compared say our nine was adjustment because

on litigation, keeping I way right reducing to, really houses, the to CAT see keeping surprised I check fixing end, be front costs best-in-market the wouldn't pricing, the LAE wouldn't. control, handling we're in under So, translated the that

Arash Soleimani

ceded out? that put program me the said Can you what remind premium you for guidance was that

Bruce Lucas

don't that on that we the know we guidance number. income I on gave guidance just give guidance gave -- didn't we Arash, net on

Arash Soleimani

related I sheet; seen what's of before? on line you guys haven't accrued this because have there that the now line And balance that to exactly compensation,

Kirk Lusk

It's timing an issue. just for accrual to payroll, just due a

Arash Soleimani

it quarter when or was there to the is G&A other expenses that? related And CAN expense asked with this just Kirk ramp-up the I aside network, any mentioned earlier what about from one-time

Kirk Lusk

in really. one-time Nothing struggling material. Not G&A quarter. think of any I'm to significant the

Arash Soleimani

Narragansett, kind for you M&A are mentioned looking obviously so? looking what Bruce, have appetite you are if and before, for, Post of an you you for do M&A And opportunities. still always exactly

Bruce Lucas

synergy for is against hedge production have entity an whole, of look do synergies, the reinsurance exposures production that'd a the an The some on organization M&A. for entity we is that providing we'd that appetite synergies, for G&A Yes, or whether sort etcetera. certain -- towards hedge, a

billion and operations. set line of appetite line $X continued there five I we no we zero five bottom doubt is We $X organization first billion; years. line that top the in have did sight a and are to the in have and about in firmly to market the top next my being of $X years on billion grow the in

are lot I now. to for of goal of of trend ahead So high. said, we very have Like years hit is right us. work consistently like and where We've a them I'd our we

So right at right the short it be yes, is price. to has answer but fit

Arash Soleimani

on in And terms sell last CAN want that and... try quarter progress you mentioned that ultimately to of had to you'd that. front Any

Bruce Lucas

What the was about, ultimately had right clarify but if to least just offer Yes, we it, sell I to come there I the that wanted did mentioned not quarter it. last that in would at entertain Arash.

how material where credit handle big of a contributor is outside you we for can team that organization our CAN claims success box that other and for hedging multiple us people to for management the Now being would be missed the me the that's a to paying it. have valuable for flows. It's high. risk terms just and high incredibly division, sell cash us It in to just of on that

to looking come would I've if potentially nothing come asset. sell, multiple ask ask I'm competitors about and but or had others company I've question the that shareholders offers. divesting large it's we had entertain So

see a us but that sell every the offer, to So it it given we just currently. to mention day. if those intrinsic operations actively because it it to looking benefits of are We We offer, would in it that has crossroads believe the value. not our two, right wanted high provides entertain we an the I is of

Arash Soleimani

question, last in was? earlier prior-year mentioned just the remind development you think me call? what you the I And can number it

Kirk Lusk

million. $X.X

Arash Soleimani

Favorable adverse? or

Kirk Lusk

That was adverse.

Arash Soleimani

And was 'XX? the just year of that accident

Kirk Lusk

had -- actually of do to and that No, Hermine. the majority with Matthew it

Operator

a Our Sandler next question Barnidge John is O'Neill. of from follow-up

John Barnidge

came tax forward The we bit mute. be were higher to seem in bit I than a rate higher? should ballpark that or XX% reasonable it it sorry, Does Yes, expecting. going assume XX% a on was just

Kirk Lusk

range I be it's be higher. going XX.X%-XX% probably is pretty would probably think the the, to I No, say going that close. to think I

John Barnidge

in NBIC Heritage as property opportunities maybe please? on expound Could PCI as some both new distribution well you

Bruce Lucas

Yes.

We're state out applications as we fairly in mid-Atlantic speak rolling York residential product are in So areas. we of soon. commercial filing kind New our new John,

at some as applications state network our some in production production. the new -- existing result across new a added looking independent do We additional lot of a into that uptick Coast. are partner up We've expect would East We those On relationships. of with agent for kind sources the definitely agents an of are our 'XX we predominance front, and etcetera, be of earned every the footprint. G&A in be 'XX our premium. of up ramping terms will increasing big production. of of that plans, would terms buildup the operations growth push in Heritage

also are on Florida. E&S think products to We as can We with water come in E&S handle State carrier situation to Narragansett licensing some the the Bay unique of basis. an an we frog market

So what here. to process It's approach building that's a we're really that's well underway. a a multi-prong

John Barnidge

the that's then my I there assume? bit year-over-year. And a think Can And reasonable a to of line rate quite item, me revenue run all kind other you questions. and declined tell it what's in what's

Bruce Lucas

current the going rate probably is pretty think I be Yes, good. run to

the big where the last revalue was year that equities we the so the there year, do about equity in at impacted is evaluation guidance ASU that the the have a a impact number of new the you to which I securities, had issue $XXX,XXX. and actually There is by drop think when of look true-up that there. this little is -- also, bit

Operator

Our follow-up Mark from of Hughes a next question is SunTrust.

Mark Hughes

is run pretty the for million a did good say -- that rate revenue? sorry, I'm you current $X.X other the

Kirk Lusk

event upon the here the what the one-time a equity to one-time do. See is based $XXX,XXX there, is change -- going looking

you item. would it, look that when that flatter would it So we excluding think at one-time be

Mark Hughes

is say So mid-X's? that,

Kirk Lusk

Yes.

Mark Hughes

target, if XXXX? organic rate then And at going, get and do if what terms these your an of look in premium for initiatives you growth is growth say, we up

Bruce Lucas

good a that. variability and that's of in a lot question, there Yes, Mark, is

been at of we have state projected expansion We look working etcetera. new forward on kind as numbers

you're North to new just You in South and tell can like you I way us, above market. came going projections. get for in Carolina a markets we what know never

little projection. So Alabama far, been had below Georgia and

projected think be. and a got right It's what we say. guidance work I we've to hard it's before more would as legit that formally question to now give So, number

unfortunately, work you're right you So, give that it's can't the detailed now, process. I clarity for asking just in

Kirk Lusk

Yes, each trying factors calculate were also and the think there far to what there of lot of anticipated in one of the one a in is each impact take-up looking we at as rate. is the geographies, the is what products as

of So of that putting so... we're in kind altogether, the process

Mark Hughes

the refresher question, kind I of one gross think NBIC. written just Heritage versus How on think about think in other quarters, historical business, we the their we in Then the premiums come got of NBIC? in gross premiums seasonality about final we've when record seasonality written usually when on much QX a track a on at

Kirk Lusk

little written year NBIC, the bit second Heritage I Heritage kicks in up at that in the little where from a in earlier different It's then standpoint. quarter. it lower is not The probably a in ticks second actually quarter, the quarter, bit trend fourth a up the in third think and

Bruce Lucas

pretty close. are pretty Percentages they're But close. The

Operator

our session. concludes The Thank question-and-answer now you This also presentation. concluded. conference for attending today's has

disconnect. now may You

Heritage Insurance (HRTG) 12 May 182018 Q1 Earnings call transcript