Aug. 6 at 3:31 PM
$HRTG dropped 20% after Q2, but I’m still bullish.
EPS crushed it at
$1.55 (+154% YoY), combined ratio hit 72.9%, ROE was a wild 53.9%, and book value is up 49% YoY. Zero CAT losses this quarter. Fundamentals are rock solid.
The selloff? Likely because there’s still no dividend or buybacks, and gross premiums written were down slightly. But this was always a turnaround story, and they’re still playing offense carefully.
Management (who owns 6% of the company) is focused on long-term profit, not short-term optics. With a forward P/E of ~6.4x and best-in-class ROE, I still see upside to
$30+ if they keep executing.
Sometimes the market overreacts. This looks like one of those times.
