Heritage Insurance Holdings Inc. (HRTG) stock is surging 11.03% in pre-market trading on Thursday, following the release of its outstanding third-quarter 2025 financial results. The property and casualty insurer significantly outperformed analyst expectations, showcasing robust growth and improved operational efficiency that has excited investors.

For the quarter ended September 30, Heritage reported earnings per share of $1.63, dramatically exceeding the mean analyst estimate of $0.53 and marking a substantial increase from the $0.27 per share reported in the same quarter last year. Revenue also beat expectations, rising 0.3% to $212.46 million, compared to the analyst consensus of $210.12 million. The company's net income soared to $50.4 million, up from $8.2 million in the prior-year quarter, while the net combined ratio improved significantly to 72.9%, indicating better overall underwriting profitability.

Analysts have responded positively to Heritage's results, with the current average rating on the stock being "buy". The median 12-month price target stands at $31.50, suggesting potential further upside from current levels. As Heritage Insurance continues to demonstrate disciplined underwriting and improved operational metrics, including a 166% increase in new business premiums to $36.3 million and a 48.9% year-to-date rise in book value per share to $14.15, investors appear optimistic about the company's growth prospects in the property and casualty insurance sector.