Core Insights - The Hartford Insurance Group, Inc. (HIG) reported third-quarter 2025 adjusted operating earnings of $3.78 per share, exceeding the Zacks Consensus Estimate by 20.8% and reflecting a 49% year-over-year increase [1][8] - Operating revenues increased by 9.5% year over year to $5.1 billion, driven by improved earned premiums, fee income, and investment income, surpassing the consensus mark by 1.5% [1][2] Financial Performance - Earned premiums reached $6.1 billion, a 6.3% year-over-year increase, although slightly below the Zacks Consensus Estimate by 0.1% [3] - Pre-tax net investment income rose 15.2% year over year to $759 million, exceeding the consensus estimate of $708.8 million, attributed to increased invested assets and improved income from alternative investments [4] - Total benefits, losses, and expenses increased by 2% year over year to $5.9 billion, primarily due to higher amortization of DAC and insurance operating expenses [5] Segment Performance - **Business Insurance**: Revenues grew 10.2% year over year to $4 billion, with core earnings of $723 million, a 35% increase year over year, driven by higher earned premiums and lower catastrophe losses [6] - **Personal Insurance**: Revenues advanced 7.7% year over year to $1 billion, with core earnings rising to $143 million from $33 million in the prior year, supported by improved earned premiums and reduced catastrophe losses [7] - **Employee Benefits**: Revenues rose 0.7% year over year to $1.8 billion but fell short of estimates, with core earnings declining 3% year over year to $149 million due to higher expense ratios [10] Investment and Capital Management - The company returned $547 million to shareholders through share buybacks of $400 million and dividends of $147 million, with a remaining buyback capacity of $1.95 billion as of September 30, 2025 [15] - Total investments increased by 5.7% year over year to $62.6 billion, while total assets grew by 5% to $85 billion [13] Financial Health - Cash decreased by 18% from the end of 2024 to $150 million, while total stockholders' equity improved by 12.2% year over year to $18.5 billion [13][14] - Book value per share increased by 15.9% year over year to $63.86, with a core earnings return on equity improving by 100 basis points to 18.4% [14]

Group 1 - Hartford Insurance Group shares fell below their 200-day moving average of $123.45, trading as low as $120.33 per share, representing a decline of approximately 2.1% on the day [1] - The 52-week low for Hartford Insurance Group shares is $104.93, while the 52-week high is $135.17, with the last trade recorded at $122.44 [4]

Financial Data and Key Metrics Changes - The Hartford reported core earnings of $1.1 billion or $3.78 per diluted share, both records for the company, with a trailing twelve-month core earnings ROE of 18.4% [6][16] - Written premium growth in business insurance was 9%, with an underlying combined ratio of 89.4, while personal insurance had an underlying combined ratio of 90, a 3.7 point improvement over the prior year [6][16] - Employee benefits achieved a core earnings margin of 8.3% [13] Business Line Data and Key Metrics Changes - Business insurance saw written premium growth of 11% in small business, with an underlying combined ratio of 89.8, and 10% growth in middle and large business with an underlying combined ratio of 91.4 [7][16] - Global Specialty reported net written premium growth of 5% with underlying margins in the mid-80s [8][16] - Personal insurance written premium increased by 2%, with homeowners achieving 10% written premium growth and an underlying combined ratio of 74.4 [11][17] Market Data and Key Metrics Changes - The Hartford's small business franchise delivered record-breaking new business premium, with E&S binding up 47% [7] - In the business insurance sector, renewal written pricing excluding workers compensation was 7.3% above overall loss trend [9][10] - The company anticipates written premium to exceed $6 billion in 2025, representing a 10% growth over the prior year [7] Company Strategy and Development Direction - The Hartford is focused on leveraging digital capabilities and advanced data science to enhance underwriting expertise and customer relationships [6][15] - The company is rolling out a new product, Prevail, to retail distribution, with plans for 30 state launches by early 2027 [12] - The Hartford aims to maintain strong margins while pursuing growth opportunities, particularly in the small business segment [37][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic market cycle and deliver superior returns for shareholders [15] - The company noted that while pricing competition is increasing, it remains disciplined in its pricing strategies [49][50] - Management anticipates fourth quarter results to be similar to the third quarter, with a focus on maintaining profitability [20][21] Other Important Information - The Hartford announced a 15% increase in the common quarterly dividend, reflecting confidence in sustained earnings power and capital generation [14][21] - The company repurchased 3.1 million shares for $400 million during the quarter, with $1.95 billion remaining on its share repurchase authorization [21] Q&A Session Summary Question: Discussion on workers compensation pricing trends - Management indicated that the workers comp market remains stable, with slight price increases but no significant changes expected for 2026 [25][26] Question: Insights on underlying loss ratios in business insurance - Management noted that the underlying combined ratio is running at 88.6%, with no changes in workers comp strategies [30][31] Question: Commentary on new business growth in small and mid-sized segments - Management highlighted strong growth in small business, with a focus on maintaining margins and leveraging technology [36][39] Question: Retention and shopping behavior in personal lines - Management observed that shopping behavior remains elevated, but retention is stable due to policyholder engagement initiatives [64][65] Question: Confidence in capital position and dividend increase - Management attributed the dividend increase to strong fundamentals and earnings power, indicating no change in focus on growth opportunities [66][67] Question: Impact of tariffs on personal auto results - Management stated that the impact of tariffs was negligible this quarter, with appropriate adjustments expected in 2026 [70] Question: Technology budget allocation and initiatives - Management shared that the IT budget is $1.3 billion, with over $500 million allocated for investments in new initiatives [58][60]

Financial Data and Key Metrics Changes - The company reported core earnings of $1.1 billion or $3.78 per diluted share, both records for the company, with a trailing twelve-month core earnings ROE of 18.4% [6][16] - Written premium growth in business insurance was 9%, with an underlying combined ratio of 89.4, while personal insurance had an underlying combined ratio of 90, a 3.7 point improvement over the prior year [6][16] - Employee benefits achieved a core earnings margin of 8.3% [13] Business Line Data and Key Metrics Changes - Business insurance saw written premium growth of 11% in small business, with an underlying combined ratio of 89.8, and 10% growth in middle and large business with an underlying combined ratio of 91.4 [7][16] - Global Specialty reported net written premium growth of 5% with underlying margins in the mid-80s [8][16] - Personal insurance written premium increased by 2%, with homeowners achieving 10% written premium growth and an underlying combined ratio of 74.4 [11][17] Market Data and Key Metrics Changes - The company expects written premium in business insurance to exceed $6 billion in 2025, representing a 10% growth over the prior year [7] - Pricing execution in business insurance renewal written pricing was 7.3% above overall loss trend [9][49] - The auto pricing remained near 11%, while workers compensation pricing was slightly up from the second quarter [10] Company Strategy and Development Direction - The company is focused on leveraging digital capabilities and advanced data science to enhance underwriting expertise and customer relationships [6][15] - The introduction of the Prevail product aims to improve competitive positioning and expand market share in personal insurance [12][42] - The company plans to continue strategic investments and maintain strong capital generation to support growth [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic market cycle and delivering superior returns for shareholders [15] - The company anticipates fourth quarter results to be in a similar range to the third quarter [20] - Management noted that while the competitive environment remains challenging, they are well-positioned to capture additional market share over time [12][66] Other Important Information - The company announced a 15% increase in the common quarterly dividend, reflecting confidence in sustained earnings power [14][21] - S&P and Moody's upgraded the debt and financial strength ratings of the company, highlighting effective risk selection and sophisticated pricing strategies [14] Q&A Session Summary Question: Discussion on workers compensation pricing trends - Management indicated that the workers comp market remains consistent, with slight price increases but no significant changes expected for 2026 [25][26] Question: Insights on underlying loss ratios in business insurance - Management noted that the underlying combined ratio is running at 88.6%, with no changes in workers comp strategies, attributing differences to incentive compensation [29][30] Question: Commentary on new business growth in small and mid-sized segments - Management highlighted strong growth in small business and national accounts, with broad-based performance across various lines [36][37] Question: Impact of pricing competition in the market - Management acknowledged some pressure on pricing, particularly in middle and large business segments, but emphasized disciplined execution [48][49] Question: Technology budget allocation and initiatives - Management shared that the total IT budget is $1.3 billion, with over $500 million allocated for investments in new initiatives and modernization of core platforms [56][58] Question: Retention rates and shopping behavior in personal lines - Management noted that shopping behavior remains elevated, but retention is stable, with initiatives in place to enhance customer experience [64][65] Question: Confidence in capital position and dividend increase - Management expressed that the increase in dividends reflects strong fundamentals and earnings power, with continued opportunities for growth [66][67]

Financial Data and Key Metrics Changes - The Hartford reported core earnings of $1.1 billion or $3.78 per diluted share, both records for the company, with a trailing twelve-month core earnings ROE of 18.4% [5][15] - Written premium growth in business insurance was 9%, with an underlying combined ratio of 89.4 [5][15] - Personal insurance had an underlying combined ratio of 90, a 3.7 point improvement over the prior year [5] - Employee benefits achieved a core earnings margin of 8.3% [12][18] Business Line Data and Key Metrics Changes - Business insurance core earnings were $723 million, with written premium growth of 9% and an underlying combined ratio of 89.4 [15] - Small business insurance saw written premium growth of 11% and an underlying combined ratio of 89.8 [15] - Middle and large business insurance had written premium growth of 10% and an underlying combined ratio of 91.4 [15] - Global Specialty reported written premium growth of 5% and an underlying combined ratio of 85% [15] Market Data and Key Metrics Changes - The Hartford's small business franchise delivered record-breaking new business premium with strong underlying combined ratios [6] - Written premium in personal insurance increased by 2% in the third quarter, with homeowners achieving 10% written premium growth [11][16] - The company expects written premium to exceed $6 billion in 2025, representing a 10% growth over the prior year [6] Company Strategy and Development Direction - The Hartford is focused on leveraging industry-leading tools, underwriting expertise, and advanced data science to sustain strong results [14] - The company is committed to helping business customers succeed by using digital capabilities and offering a comprehensive product suite [9] - The introduction of the Prevail product aims to enhance competitive positioning and drive growth in personal insurance [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic market cycle and deliver superior returns for shareholders [14] - The company anticipates fourth quarter results to be in a similar range to the third quarter [19] - Management noted that while pricing competition is increasing, they maintain a disciplined approach to pricing and underwriting [40][41] Other Important Information - The Hartford announced a 15% increase in the common quarterly dividend, reflecting confidence in sustained earnings power [13][20] - The company repurchased 3.1 million shares for $400 million during the quarter, with $1.95 billion remaining on its share repurchase authorization [21] Q&A Session Summary Question: Discussion on workers compensation pricing trends - Management indicated that the workers comp market remains stable, with slight price increases expected but no significant changes anticipated for 2026 [23][24] Question: Insights on underlying loss ratios in business insurance - Management noted that the underlying combined ratio is running at 88.6%, with no changes in workers comp strategies [25][26] Question: Commentary on new business growth in small and mid-sized segments - Management highlighted strong performance across various lines, with significant growth in small business and national accounts [30][31] Question: Pricing competition and market conditions - Management acknowledged increasing price competition but emphasized their disciplined pricing strategy and strong market position [40][41] Question: Technology investments and outlook - Management discussed a substantial IT budget focused on modernizing systems and enhancing customer experience through technology [45][48] Question: Retention and shopping behavior in personal lines - Management noted that shopping behavior remains elevated, but retention is stable due to various customer engagement initiatives [53][54] Question: Capital position and dividend increase rationale - Management attributed the dividend increase to strong fundamentals and earnings power, indicating confidence in continued growth [55][56]

Financial Performance - The Hartford reported an 18.4% trailing 12-month core earnings ROE[11, 12] - Net investment income reached $759 million, before tax, driven by greater income from LPs, increased asset levels, and reinvesting at higher rates[13] - Core earnings were $1077 million, a 43% increase compared to $752 million in the third quarter of 2024[19] - Net income available to common stockholders was $1074 million, a 41% increase from $761 million in 3Q24[19] - Core earnings per diluted share increased by 49% to $3.78, compared to $2.53 in 3Q24[19] Segment Results - Business Insurance net written premiums grew by 9% in 3Q25[11], reaching $3.6 billion[20, 21], with Small Business up 11% and Middle & Large Business up 10%[20] - Business Insurance combined ratio improved to 88.8[18, 20, 29] from 92.2 in 3Q24[29] - Personal Insurance written premiums increased by 2% to $987 million[20, 31] - Personal Insurance combined ratio improved to 88.7[18, 20, 31, 34] from 102.5 in 3Q24[31] - Employee Benefits core earnings margin was 8.3%[18, 20, 35], with fully insured ongoing premiums remaining flat at $1.6 billion[20, 35, 40] - Hartford Funds reported core earnings of $53 million, up from $47 million in 3Q24[19, 42] Capital Management - The company repurchased $400 million of shares and paid $147 million in common stockholder dividends in 3Q25[18, 64] - A 15% increase to the quarterly common dividend per share was announced[18, 64] - Book value per diluted share (ex AOCI) increased to $70.92[16, 59, 63]

Core Insights - The Hartford Insurance Group reported $5.11 billion in revenue for Q3 2025, a 9.5% year-over-year increase, with an EPS of $3.78 compared to $2.53 a year ago, exceeding both revenue and EPS estimates [1] - The company’s revenue surpassed the Zacks Consensus Estimate by 1.51%, while the EPS surprise was 20.77% [1] Financial Performance Metrics - Business Insurance Expense ratio was reported at 31.1%, slightly above the estimated 31% [4] - The Underlying combined ratio for Business Insurance was 89.4%, compared to the estimated 88.4% [4] - The Combined ratio for Business Insurance was 88.8%, better than the estimated 91.3% [4] - The Loss and loss adjustment expense ratio for Business Insurance was 57.3%, lower than the estimated 60.1% [4] - Earned Premium for Personal Insurance was $950 million, slightly above the estimate of $949.19 million, reflecting a 7.3% year-over-year increase [4] - Net investment income for Property and Casualty was $605 million, exceeding the estimate of $448.34 million, marking a 16.8% increase year-over-year [4] - Total revenues for Employee Benefits were $1.79 billion, slightly below the average estimate of $1.81 billion [4] - Net investment income for Employee Benefits was $136 million, above the estimated $127.91 million [4] - Premiums and other considerations for Employee Benefits were $1.66 billion, compared to the estimated $1.67 billion [4] - Fee income for Business Insurance was $11 million, slightly below the estimate of $11.13 million [4] - Earned premiums for Business Insurance were $3.54 billion, above the estimate of $3.52 billion [4] - Fee income for Personal Insurance was $8 million, in line with the estimate of $8.03 million, showing no year-over-year change [4] Stock Performance - The Hartford Insurance Group's shares have returned -6% over the past month, while the Zacks S&P 500 composite increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Performance - Total revenues for Q3 2025 reached $7,232 million, a 7.1% increase from $6,751 million in Q3 2024[18] - Net income for Q3 2025 was $1,080 million, up 40.7% from $767 million in Q3 2024[18] - Earned premiums increased to $6,093 million in Q3 2025, compared to $5,734 million in Q3 2024, reflecting a growth of 6.3%[18] - Net investment income rose to $759 million in Q3 2025, a 15.1% increase from $659 million in Q3 2024[18] - Comprehensive income for Q3 2025 was $1,461 million, down from $1,830 million in Q3 2024[21] - The company reported a basic net income per common share of $3.82 for Q3 2025, compared to $2.60 for Q3 2024, representing a 46.9% increase[18] - Total revenues for the nine months ended September 30, 2025, were $21,029 million, an increase from $19,656 million in the same period of 2024, representing a growth of 7%[46] - Net income for the nine months ended September 30, 2025, was $2,705 million, compared to $2,258 million for the same period in 2024, reflecting an increase of 20%[48] Segment Performance - Total segment revenues for Q3 2025 reached $7,181 million, up 7% from $6,709 million in Q3 2024[41] - Business Insurance earned premium and fee income increased to $3,551 million in Q3 2025, compared to $3,260 million in Q3 2024, a rise of 9%[41] - Personal Insurance earned premium and fee income rose to $958 million in Q3 2025, up from $893 million in Q3 2024, reflecting a 7% increase[41] - Employee Benefits premium and other considerations totaled $1,658 million in Q3 2025, slightly up from $1,655 million in Q3 2024[44] - The Hartford's Business Insurance segment reported earned premium and fee income of $10,321 million for the nine months ended September 30, 2025, compared to $9,451 million in 2024, reflecting a growth of 9.2%[46] - The Personal Insurance segment earned $2,804 million in premium and fee income for the nine months ended September 30, 2025, up from $2,571 million in 2024, which is an increase of 9%[48] Investment and Assets - Total assets increased to $84,995 million as of September 30, 2025, up from $80,917 million at December 31, 2024, representing a growth of 3.3%[24] - Total investments rose to $62,568 million as of September 30, 2025, compared to $59,210 million at December 31, 2024, marking an increase of 4.0%[24] - The company reported net cash provided by operating activities of $4,114 million for the nine months ended September 30, 2025, compared to $4,035 million for the same period in 2024, an increase of 2.0%[28] - The Hartford's retained earnings increased to $23,779 million as of September 30, 2025, from $21,531 million at December 31, 2024, reflecting a growth of 10.4%[26] - The total stockholders' equity reached $18,450 million as of September 30, 2025, compared to $16,447 million at December 31, 2024, an increase of 12.2%[24] Liabilities and Expenses - Total benefits, losses, and expenses for Q3 2025 were $5,914 million, a slight increase from $5,799 million in Q3 2024[18] - The Hartford's total liabilities increased to $66,545 million as of September 30, 2025, from $64,470 million at December 31, 2024, an increase of 3.2%[24] - Significant segment expenses for the nine months ended September 30, 2025, totaled $17,427 million, an increase from $16,628 million in 2024, which is a rise of 4.8%[48] - The total provision for unpaid losses and loss adjustment expenses for the nine months ended September 30, 2025, was $7,989 million, compared to $7,578 million for the same period in 2024, marking an increase of approximately 5.4%[196] Risk Management and Future Outlook - The company remains vigilant regarding potential risks from economic and market conditions that could impact future performance[9] - The company anticipates continued growth in earned premiums and net investment income for the upcoming quarters[9] - The company anticipates continued growth in earned premiums and fee income across its segments for the upcoming quarters[42] Credit and Investment Risks - The company has $4,068 million in short-term investments, with $2,699 million classified as Level 2[58] - The company’s total credit exposure from below investment grade risk exposure was $392 million as of September 30, 2025, unchanged from December 31, 2024[171] - The company’s average credit ratings for investment grade risk exposure remained at AAA as of both September 30, 2025, and December 31, 2024[171] - The company’s total notional amount for credit default swaps was $493 million as of both September 30, 2025, and December 31, 2024, indicating stability in its credit risk management strategy[171] Reinsurance and Losses - The gross reinsurance recoverables amounted to $7,167 million as of September 30, 2025, compared to $7,215 million as of December 31, 2024, indicating a decline of about 0.7%[186] - The net reinsurance recoverables were $7,091 million as of September 30, 2025, down from $7,140 million as of December 31, 2024, representing a decrease of approximately 0.7%[186] - The total allowance for uncollectible reinsurance decreased to $76 million for the nine months ended September 30, 2025, from $102 million in the same period of 2024, representing a reduction of approximately 25.5%[195]

Financial Performance - Net income for Q3 2025 was $1,080 million, an increase of 8.5% from $995 million in Q2 2025 and 71.1% from $630 million in Q1 2025[9] - Total revenues for Q3 2025 reached $7,232 million, up 3.5% from $6,987 million in Q2 2025 and 6.9% from $6,810 million in Q1 2025[9] - Core earnings for Q3 2025 were $1,077 million, reflecting a 9.8% increase from $981 million in Q2 2025 and a 68.8% increase from $639 million in Q1 2025[9] - The net income available to common stockholders for Q3 2025 was $1,074 million, up from $990 million in Q2 2025[9] - The Hartford's net income available to common stockholders for the nine months ended September 30, 2025, was $2.689 billion, compared to $2.242 billion for the same period in 2024, representing a 19.9% increase[18] - The company reported a total of $1,080 million in net income for the three months ended September 30, 2025, compared to $767 million for the same period in 2024, reflecting a 40.7% increase[18] Investment Income - Net investment income for Q3 2025 was $759 million, an increase of 14.3% from $664 million in Q2 2025 and 15.7% from $656 million in Q1 2025[13] - Total net investment income for the three months ended September 30, 2025, was $759 million, an increase from $664 million in the previous quarter[91] - The annualized investment yield before tax for the three months ended September 30, 2025, was 4.8%, up from 4.3% in the previous quarter[91] - The total net investment income for the nine months ended September 30, 2025, reached $2,079 million, compared to $1,854 million for the same period in 2024[91] - The total net investment income for the Property & Casualty segment for the three months ended September 30, 2025, was $605 million, up from $526 million in the previous quarter[101] Premiums and Underwriting - Earned premiums for Q3 2025 amounted to $6,093 million, a rise of 2.2% from $5,961 million in Q2 2025 and 4.4% from $5,835 million in Q1 2025[13] - Written premiums for the third quarter of 2025 were $4,560 million, compared to $4,045 million in the same quarter of 2024, reflecting a year-over-year increase of 12.7%[34] - The underwriting gain for the third quarter of 2025 was $502 million, compared to $331 million in the same quarter of 2024, showing a significant improvement[34] - The combined ratio for the three months ended September 30, 2025, improved to 88.8%, down from 94.5% in the same period last year, indicating enhanced underwriting performance[43] - The total written premium is derived from the sum of net new business premium and renewal written premium, highlighting the Company's growth in policy issuance[121] Assets and Equity - The total assets of the company as of September 30, 2025, were $84,995 million, compared to $83,639 million at the end of Q2 2025[9] - The total stockholders' equity as of September 30, 2025, was $18.450 billion, up from $16.447 billion as of December 31, 2024, indicating an increase of 12.1%[20] - Total investments as of September 30, 2025, amounted to $62.568 billion, an increase from $59.210 billion as of December 31, 2024, reflecting a growth of 4.0%[20] Ratios and Returns - The return on common stockholders' equity (ROE) for Q3 2025 was 20.3%, compared to 19.8% in Q2 2025[9] - The loss and loss adjustment expense ratio for Q3 2025 was 62.9%, an improvement from 69.0% in Q2 2025 and 79.1% in Q1 2025[64] - Core earnings return on equity (ROE) for Q3 2025 was 18.4%, an increase from 17.0% in Q2 2025 and 16.2% in Q1 2025[135] Segment Performance - For the three months ended September 30, 2025, net income for Business Insurance was $710 million, up from $528 million in the same period of 2024, representing a 34.5% increase[18] - Core earnings for Personal Insurance reached $143 million for the three months ended September 30, 2025, compared to $33 million in the same period of 2024, marking a significant increase of 333.3%[18] - The total revenues for the Employee Benefits segment for the three months ended September 30, 2025, were $1,786 million, an increase from $1,774 million in the same period of 2024[72] Operational Efficiency - The expense ratio for the three months ended September 30, 2025, was 30.0%, consistent with the same period in 2024, indicating stable operational efficiency[43] - The total benefits, losses, and expenses for the Employee Benefits segment were $1,606 million for the three months ended September 30, 2025, compared to $1,580 million in the same period of 2024[72] - The total expenses for Q3 2025 were $65 million, slightly higher than $64 million in Q2 2025, indicating a need for cost management[87] Customer Metrics - Policy count retention remained stable at 84% for both Q3 2025 and Q3 2024, indicating consistent customer loyalty[54] - The effective policy count retention for automobile policies was 80% for the three months ended September 30, 2025, consistent with the previous year[68]

Core Insights - The Hartford Insurance Group, Inc. (HIG) is set to release its third-quarter 2025 results on October 27, with earnings expected to be $3.13 per share, reflecting a 23.7% increase from the same quarter last year [1][6] - The Zacks Consensus Estimate for revenues is projected at $5 billion, indicating a 7.9% growth year-over-year [2][6] Earnings Estimates and Revisions - The third-quarter earnings estimate has seen five upward revisions and one downward revision in the past 30 days [2] - The Earnings ESP for The Hartford is +0.91%, with the most accurate estimate at $3.16 per share, higher than the consensus estimate [5] Revenue Breakdown - Business Insurance is expected to contribute significantly, with earned premiums estimated at $3.5 billion, reflecting growth driven by rate increases and new business [7] - Personal Insurance is projected to have earned premiums of $949 million, a 7.2% increase from the prior year, supported by rate hikes and higher insured values [8] - Employee Benefits revenues are anticipated to reach $1.8 billion, driven by strong persistency rates and improved sales, although offset by rising technology and staffing costs [9] - Overall net investment income is expected to be $709 million, suggesting a 7.6% growth year-over-year [10] Cost and Margin Pressures - The bottom line is likely to be pressured by increased benefits, losses, and higher operating costs, alongside ongoing investments in digital capabilities [11]