Heritage Insurance Holdings (HRTG) stock is soaring 19.60% in intraday trading on Wednesday, following the release of its impressive first-quarter 2025 financial results. The Florida-based insurance carrier reported significant improvements in key metrics, boosting investor confidence.

The company's combined ratio, a crucial measure of profitability for insurers, improved by 9.5 percentage points to 84.5% in Q1 2025. This improvement was accompanied by a substantial increase in operating income, which rose to $42.43 million from $22.7 million in the same period last year. Earnings per share also saw a significant boost, climbing to $0.99 from $0.47 in the prior-year quarter.

Heritage CEO Ernie Garateix attributed the strong performance to the company's strategic initiatives, including managing exposure, obtaining rate adequacy, and diversifying its business. He also noted the positive impact of recent Florida legislation aimed at curbing claims abuse. Looking ahead, Garateix expressed optimism about the Florida market, stating that the company plans to gradually open more territories for new personal lines business. This expansion strategy is expected to accelerate production growth, potentially supporting further stock appreciation in the future.