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Financial Data and Key Metrics Changes - The Hartford reported core earnings of $639 million or $2.2 per diluted share, with a trailing twelve-month core earnings ROE of 16.2% [30] - The company experienced elevated catastrophe activity, impacting results, particularly from the January California wildfires, which accounted for $325 million of the $467 million in catastrophe losses [10][30] - The underlying combined ratio for business insurance improved to 88.4%, while personal insurance saw a 6.4% improvement to 89.7% [9][32] Business Line Data and Key Metrics Changes - Business insurance achieved a 10% growth in written premiums, with small business showing a 9% growth and an underlying combined ratio of 89.4% [31] - Global Specialty reported a record first-quarter written premium of $1 billion and an underlying combined ratio of 84 [31] - Personal insurance written premiums increased by 8%, with auto pricing increases of 15.8% and homeowners pricing increases of 12.3% [33] Market Data and Key Metrics Changes - The company noted strong growth in the small business segment, with a 29% increase in E and S binding premium, indicating significant market opportunities [14] - The overall market environment remains competitive, particularly in the workers' compensation sector, which has seen pressure on retention [50][104] - The company is well-positioned to navigate the dynamic market conditions, leveraging its diversified portfolio and strong underwriting capabilities [7][12] Company Strategy and Development Direction - The Hartford is focused on enhancing digital capabilities and leveraging AI to improve customer experience and operational efficiency [28][59] - The company aims to grow its market share while maintaining disciplined underwriting practices, particularly in the small and middle market segments [90] - The strategic emphasis is on customer-centric innovation and expanding into new markets to better serve evolving customer needs [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, emphasizing a strong balance sheet and solid fundamentals [7][29] - The outlook for 2025 remains positive, with expectations to surpass $6 billion in annual written premium in the small business segment [15] - Management highlighted ongoing investments in technology and customer experience as key drivers for future growth [24][26] Other Important Information - The company repurchased 3.5 million shares for $400 million during the quarter, with $2.75 billion remaining on its share repurchase authorization [42][43] - The first quarter also marked the launch of a new brand aimed at reinforcing The Hartford's position as an innovative industry leader [27] Q&A Session Summary Question: Competitive market conditions in business insurance segment - Management acknowledged pressure on retention in workers' compensation but noted strong overall growth in small and middle markets [50][51] Question: Technology progress and digital integration - Management discussed ongoing investments in core platforms and a multi-year project to transition data and applications to the cloud [56][59] Question: Impact of tariffs on loss costs - Management indicated that tariffs could affect auto and commercial insurance pricing but expressed confidence in their ability to manage these impacts [62][66] Question: Pricing environment and loss trends - Management confirmed no changes to loss trend assumptions and expressed confidence in achieving pricing ahead of loss cost trends [93][94] Question: Sustainability of small commercial growth - Management remains optimistic about the small business market, indicating no significant changes in the pricing environment outside of workers' compensation [104] Question: Workers' compensation pricing pressure - Management noted that pricing is slightly better than expectations, with retentions on plan and profitability holding up well [110] Question: Expense ratio improvement - Management expects gradual improvement in the expense ratio over time, driven by operating leverage and strategic investments [112]

The Hartford Insurance Group, Inc. (HIG) reported first-quarter 2025 adjusted operating earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.13. However, the bottom line decreased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)HIG's total revenues amounted to $6.8 billion, which improved from $6.4 billion in the prior year due to higher earned premiums and investment income.Better-than-expected quarterly earnings benefited from improved Employe ...

Financial Data and Key Metrics Changes - The Hartford reported core earnings of $639 million or $2.2 per diluted share, with a trailing twelve-month core earnings ROE of 16.2% [30] - The company experienced elevated catastrophe activity, impacting results, particularly from the January California wildfires, which accounted for $325 million of the $467 million in catastrophe losses [10][30] - The underlying combined ratio for business insurance improved to 88.4%, while personal insurance saw a 6.4% improvement to 89.7% [9][32] Business Line Data and Key Metrics Changes - Business insurance achieved a 10% growth in written premiums, with small business showing a 9% growth and an underlying combined ratio of 89.4% [31] - Global Specialty reported a record first-quarter written premium of $1 billion and an underlying combined ratio of 84 [31] - Personal insurance written premiums increased by 8%, with auto pricing increases of 15.8% and homeowners pricing increases of 12.3% [33] Market Data and Key Metrics Changes - The company noted strong growth in the small business segment, with a 29% increase in E and S binding premium, indicating significant market opportunities [14] - The overall pricing environment remains healthy, with business insurance renewal written pricing increasing by 9.9% [18] - The company is well-positioned in the competitive market, leveraging its digital capabilities and underwriting expertise [12][13] Company Strategy and Development Direction - The Hartford is focused on enhancing digital capabilities, leveraging AI, and expanding product offerings to better serve customers [28] - The company aims to maintain a disciplined approach to underwriting while pursuing growth opportunities across various segments [90] - The strategy includes a commitment to customer-centric innovation and technology investments to improve operational efficiency [27][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, emphasizing strong fundamentals and a robust balance sheet [7][29] - The outlook for 2025 includes expectations for continued premium growth and improved profitability across business lines [31][90] - Management highlighted the importance of adapting to changing market conditions and maintaining competitive pricing strategies [102] Other Important Information - The company repurchased 3.5 million shares for $400 million during the quarter, with $2.75 billion remaining on its share repurchase authorization [42][43] - The Hartford launched a new brand to reinforce its commitment to innovation and customer service [27] Q&A Session Summary Question: Competitive market conditions in business insurance segment - Management acknowledged pressure on retention in workers' compensation but noted strong overall growth in small and middle markets [48][50] Question: Technology progress and digital integration - Management discussed ongoing investments in core platforms and a multi-year project to transition data and applications to the cloud [56][59] Question: Impact of tariffs on loss costs - Management indicated that tariffs could affect auto and commercial insurance pricing but expressed confidence in their ability to manage these impacts [62][66] Question: Pricing environment and loss trends - Management confirmed no changes to loss trend assumptions and expressed confidence in achieving pricing ahead of loss cost trends [93][94] Question: Small commercial growth sustainability - Management remains optimistic about the small business market, expecting continued growth despite competitive pressures [104] Question: Workers' compensation pricing pressure - Management noted that pricing is slightly better than expectations, with retention on plan across business insurance [110] Question: Expense ratio improvement - Management expects gradual improvement in the expense ratio over time, driven by operational efficiencies and strategic investments [112]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-Q ____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission file number 001-13958 ____________________ ...

The Hartford Insurance Group, Inc. As of April 23, 2025 Address: One Hartford Plaza A.M. Best Standard & Poor's Moody's Hartford, CT 06155 Insurance Financial Strength Ratings: Hartford Fire Insurance Company A+ A+ A1 Hartford Life and Accident Insurance Company A+ A+ A1 Navigators Insurance Company A+ A+ NR - Hartford Fire Insurance Company ratings are on positive outlook at Standard and Poor's and Moody's and on stable outlook at A.M. Best - Hartford Life and Accident Insurance Company ratings are on posi ...

Core Viewpoint - The Hartford Insurance Group, Inc. (HIG) is expected to report a decline in earnings for Q1 2025, with a consensus estimate of $2.13 per share, reflecting a 9% decrease from the previous year [1]. Earnings Estimates - The earnings estimate for Q1 has seen six downward revisions with no upward adjustments in the last 30 days [1]. - The Zacks Consensus Estimate for revenues is projected at $4.8 billion, indicating an 11.5% growth compared to the same quarter last year [1]. Earnings Surprise History - HIG has beaten earnings estimates in three of the last four quarters, with an average surprise of 4.66% [2]. Earnings ESP and Zacks Rank - The Hartford has an Earnings ESP of -4.40%, with the Most Accurate Estimate at $2.04 per share, lower than the consensus estimate [4]. - The company currently holds a Zacks Rank of 3 (Hold) [4]. Revenue Drivers - Revenue growth is anticipated from Business Insurance, Personal Insurance, and Employee Benefits segments, with overall net premiums expected to reach $5.9 billion, reflecting an 8.3% increase from the prior year [5]. Business Insurance Segment - The Business Insurance segment is projected to benefit from rate increases and new business growth, with earned premiums estimated at $3.4 billion, a 10.2% increase year-over-year [6][7]. Personal Insurance Segment - The Personal Insurance unit is expected to see earned premiums of $910 million, an 11.9% increase from the previous year, driven by rate hikes and new business growth [8][9]. Employee Benefits Segment - The Employee Benefits business is likely to generate revenues of $1.6 billion, a 2.6% rise from the prior year, supported by improved premiums and favorable mortality trends [10]. Investment Income - The Hartford's net investment income is expected to reach $709 million, indicating a 19.6% growth from the year-ago quarter, aided by higher invested assets and improved reinvestment rates [11]. Cost Pressures - The bottom line is anticipated to be pressured by rising benefits, losses, and higher operating costs, alongside ongoing investments in digital capabilities [12].

Analysts on Wall Street project that The Hartford Insurance Group (HIG) will announce quarterly earnings of $2.13 per share in its forthcoming report, representing a decline of 9% year over year. Revenues are projected to reach $4.84 billion, increasing 11.6% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates ...

Core Viewpoint - Hartford Insurance Group, Inc. (HIG) is experiencing growth driven by premium increases, strong performance in Business Insurance and Employee Benefits, new product launches, and a solid financial position [1]. Financial Performance - HIG's stock has appreciated by 17.4% over the past year [3]. - The Zacks Consensus Estimate for 2025 earnings is $10.98 per share, reflecting a 6.6% increase from 2024, with revenue expectations of $20.1 billion, indicating a 10% rise [3]. - For 2026, earnings are estimated at $12.65 per share, a 15.2% growth from 2025, with revenues projected at $21.9 billion, an 8.9% increase [4]. - HIG has a history of earnings surprises, exceeding estimates in three of the last four quarters with an average surprise of 4.66% [5]. Operational Strengths - The return on equity for HIG stands at 19.6%, significantly higher than the industry average of 8.3%, indicating effective use of shareholder funds [7]. - The Business Insurance segment, which contributed approximately 54% of consolidated revenues in 2024, benefits from rate hikes, new business generation, and high customer retention [8]. - The Employee Benefits division is thriving, with core earnings improving by 2% year-over-year in 2024, supported by rising premiums and strong sales [9]. - Premium growth in these segments is crucial for HIG's revenue, with catastrophe-related losses leading to higher policy renewal rates [10]. Strategic Initiatives - HIG is enhancing market capabilities through new product launches and targeted acquisitions, while divesting non-core operations to focus on domestic growth [11]. - The company generated $5.9 billion in net cash from operations in 2024, a 40% increase from 2023, and announced an 11% dividend hike in October 2024, emphasizing its commitment to shareholder value [12].

Financial Performance - Total assets of The Hartford as of December 31, 2024, were $80.9 billion, with total stockholders' equity at $16.4 billion[23]. - 2024 revenues reached $26,535 million, with Business Insurance contributing $12,721 million in earned premiums[30][32]. - In 2024, the Company reported premiums and other considerations of $6,615 million in the Employee Benefits segment[66]. - The Hartford Funds segment had Assets Under Management (AUM) of $139,598 million as of December 31, 2024[74]. - Mutual Fund AUM was $123,571 million as of December 31, 2024[77]. - The Hartford's investment portfolio was valued at $59.2 billion as of December 31, 2024[105]. Strategic Initiatives - The Hartford aims to enhance its market leadership by leveraging underwriting excellence, risk management, and product development[26]. - The company is investing in data, analytics, and artificial intelligence to improve decision-making and customer experiences[27]. - The Hartford's strategic priorities include maximizing distribution channels and optimizing organizational efficiency for continuous improvement[27]. - The company plans to balance excess capital use between growth initiatives, business investments, and stockholder returns through dividends and share repurchases[27]. - The Hartford differentiates itself in the investment management industry through global sub-advisors and competitive fees[82]. Market Position and Competition - The Hartford operates in five reportable segments: Business Insurance, Personal Insurance, Property & Casualty Other Operations, Employee Benefits, and Hartford Funds[28]. - The small business market remains highly competitive, with carriers seeking differentiation through product expansion and technology[41]. - The competitive landscape for Employee Benefits is intensifying, with a focus on mental health and wellness benefits[71]. - Competitive pressures from larger insurers and insurtech firms may lead to increased pricing pressures and impact the company's market share[165]. Technology and Innovation - The company has launched a new cloud-based product, Prevail, which includes digital service capabilities and is now available in nearly all states[53]. - The company quotes over 75% of its Spectrum package business and workers' compensation new business policies without human intervention through its ICON quoting tool[42]. - The company continues to invest in underwriting systems and capabilities, enhancing digital experiences and leveraging data analytics for risk selection and pricing decisions[45]. - The Company continues to invest in telematics capabilities, including the TrueLane program, which offers discounts based on driving behavior[61]. Employee Engagement and Culture - The company achieved top quartile employee engagement and performance enablement scores in 2024, as measured by independent third-party surveys[120]. - Over 60% of employees were members of at least one Employee Resource Group (ERG) as of December 31, 2024, promoting diversity and inclusion[121]. - The company offers a comprehensive benefits package that supports employees' physical, emotional, social, and financial well-being[126]. - The company is committed to attracting and retaining talent to enhance leadership capabilities and foster a strong organizational culture[27]. Risks and Challenges - The company is facing inflationary pressures, with increased costs for automobile repairs due to supply chain issues and advanced vehicle technology[63]. - The company is sensitive to unfavorable economic, political, and global market conditions, which may adversely impact demand for insurance and financial products[132]. - A decline in equity markets may result in net realized losses on equity securities and lower earnings from Hartford Funds, where fee income is based on the fair value of assets under management[137]. - Climate change may increase the frequency and intensity of natural catastrophes, leading to higher claims in property, automobile, and workers' compensation businesses[144]. - The company faces regulatory constraints that may limit its ability to charge adequate pricing for catastrophe exposures, affecting profitability[163]. Compliance and Regulatory Environment - Compliance with increasingly onerous state, federal, and international regulations regarding data privacy is essential, as misuse of confidential information could result in legal liability and reputational harm[197]. - U.S. insurance subsidiaries are subject to extensive state regulations that prioritize policyholder interests, which may constrain the company's operational flexibility and strategic transactions[210]. Investment and Capital Management - The company must hold capital based on risk-based capital (RBC) formulas, which are sensitive to external factors and regulatory changes[176]. - Dividend payments are subject to Board discretion and regulatory limitations, impacting cash flow from insurance subsidiaries[184]. - The availability and cost of reinsurance are critical, with potential changes leading to higher costs or reduced business volume[183].