The Hartford Financial Services Group, Inc. (HIG) is scheduled to release first-quarter 2024 results on Apr 25, 2024, after the closing bell.What Do the Estimates Say?The Zacks Consensus Estimate for Hartford Financial’s first-quarter earnings per share is pegged at $2.43, which indicates an improvement of 44.6% from the prior-year quarter’s reported figure. The consensus mark for revenues is $4.4 billion, suggesting 11.8% growth from the year-ago quarter’s reported number.Hartford Financial’s bottom line b ...

The Hartford Financial Services Group, Inc. (HIG) recently announced its partnership with Active Minds to enhance its Group Benefits offerings with a mental health guide. Hartford Financial aims to promote mental health awareness and improve employee productivity.Per Hartford Financial’s Future of Benefits Study, 45% of Gen Z employees feel anxious or depressed at least several times a week. 52% of workers said that the taboo surrounding mental health prevents them from seeking care, per the report. These t ...

Sezeryadigar Elevator Pitch I rate The Hartford Financial Services Group, Inc. (NYSE:HIG) stock as a Buy. My earlier write-up published on November 21, 2023 touched on HIG's shareholder capital return and the performance of certain businesses. The current article focuses on Hartford Financial's latest personnel changes. I have a favorable opinion of HIG's recent appointment of a new head of sales at its Middle & Large Commercial sub-segment's Northeastern operations, and the expanded role of its Chief I ...

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20BUSINESS) HFSG is a holding company offering P&C insurance, group benefits, and mutual funds/ETFs, with a strategy focused on underwriting, digital capabilities, and sustainability The Hartford Financial Services Group, Inc. Key Financials (as of Dec 31, 2023) | Metric | Amount (as of Dec 31, 2023) | | :----- | :-------------------------- | | Total Assets | $76.8 billion | | Total Stockholders' Equity | $15.3 billion | - The Hartford's strategic priorities include **advancing underwriting capabilities**, emphasizing **digital capabilities and data science (including AI)**, **maximizing distribution channels**, **optimizing organizational efficiency**, **balancing capital for growth and shareholder returns**, and **advancing sustainability leadership**[24](index=24&type=chunk)[25](index=25&type=chunk)[30](index=30&type=chunk) 2023 Revenues by Segment | Segment | 2023 Revenues ($ millions) | | :----------------------------- | :------------------------- | | Commercial Lines | 11,641 (Earned Premiums) | | Personal Lines | 3,087 (Earned Premiums) | | Group Benefits | 6,515 (Premiums & Other Considerations) | | Hartford Funds | 973 (Fee Income & Other Revenue) | | P&C Other Operations & Corporate | 176 (Revenue) | | **Total Revenues** | **24,527** | [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces significant risks across economic, industry, financial, operational, and regulatory domains, impacting its business and financial condition - The Company's investment portfolio and insurance businesses are **highly sensitive to changes in economic, political, and global market conditions**, including credit spreads, equity prices, interest rates, inflation, and foreign currency exchange rates, which can impact demand for products, investment returns, and loss costs[152](index=152&type=chunk)[155](index=155&type=chunk) - **Unfavorable loss development**, particularly for **long-tailed exposures like asbestos and environmental (A&E) claims**, and vulnerability to **natural and man-made catastrophes** (e.g., hurricanes, cyber-attacks, terrorism) pose **significant risks to financial results**[169](index=169&type=chunk)[170](index=170&type=chunk)[175](index=175&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - **Downgrades in financial strength or credit ratings** can **negatively impact competitiveness and cost of capital**. The Company's capital requirements are subject to external factors, and **nonperformance by counterparties** (reinsurers, investment issuers) can lead to losses. Dividend payments are also subject to **regulatory limitations**[196](index=196&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) - **Operational risks** include **system failures, cyber breaches, reliance on third-party vendors**, and challenges in executing capital management plans. The Company also faces **extensive and complex regulatory and legislative developments** that can increase costs and affect strategy[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[225](index=225&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) [Item 1C. Cybersecurity](index=43&type=section&id=Item%201C.%20CYBERSECURITY) The Hartford employs a NIST-aligned 'defense-in-depth' cybersecurity strategy to protect information assets - The Company implements a **'defense-in-depth' cybersecurity strategy**, aligned with the **NIST Cybersecurity Framework**, covering identification, protection, detection, response, and recovery[253](index=253&type=chunk) - **Protection measures** include reputational filtering, anti-virus scans, intrusion prevention, multi-factor authentication, and account isolation. **Detection methods** involve dark web searches, email sandboxing, endpoint detection, and intrusion detection[254](index=254&type=chunk) - Cybersecurity governance involves **regular reports to the Board, Audit Committee** (primary oversight), and **Finance, Investment and Risk Management Committee (FIRMCo)** by senior Enterprise Risk Management, Information Protection, and Internal Audit functions[258](index=258&type=chunk)[259](index=259&type=chunk) - Management believes **no cybersecurity threats have materially affected** or are reasonably likely to materially affect the Company's business strategy, results of operations, or financial condition[258](index=258&type=chunk) [Item 2. Properties](index=45&type=section&id=Item%202.%20PROPERTIES) The Hartford owned 1.8 million sq ft and leased 935k sq ft in the U.S., deeming its properties suitable and adequate - Owned building space: approximately **1.8 million square feet** in Hartford, Connecticut area[264](index=264&type=chunk) - Leased office space as of December 31, 2023: approximately **935 thousand square feet** in the United States, **22 thousand square feet** in London, and **6 thousand square feet** in other international locations[266](index=266&type=chunk) - The Company believes its properties and facilities are **suitable and adequate for current operations**[266](index=266&type=chunk) [Item 3. Legal Proceedings](index=45&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The Hartford is involved in routine claims litigation and other legal actions, including class actions and punitive damages - The Company is involved in claims litigation arising in the ordinary course of business, including as a liability insurer and in coverage disputes[265](index=265&type=chunk)[1352](index=1352&type=chunk) - Other legal actions include putative class actions alleging underpayment of claims or improper sales/underwriting practices, and individual actions seeking punitive damages for alleged bad faith[1353](index=1353&type=chunk) - Management expects the ultimate liability from ordinary-course claims litigation to be **immaterial to the consolidated financial condition, results of operations, or cash flows**[1352](index=1352&type=chunk)[1353](index=1353&type=chunk) Part II [Item 5. Market for The Hartford's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=46&type=section&id=Item%205.%20MARKET%20FOR%20THE%20HARTFORD'S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The Hartford's common stock (HIG) is traded on the NYSE, with 297.35 million shares outstanding and $1.35 billion remaining for repurchases as of December 31, 2023 - The Hartford's common stock is traded on the New York Stock Exchange under the trading symbol "**HIG**"[268](index=268&type=chunk) - As of February 22, 2024, there were **297,350,060 shares** of Common Stock outstanding[7](index=7&type=chunk) Common Stock Repurchases for Q4 2023 | Period | Total Number of Shares Purchased [1] | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | :--------------------------------- | :--------------------------------- | :--------------------------- | :----------------------------------------------------------------- | | October 1, 2023 - October 31, 2023 | 2,043,934 | $71.72 | 2,039,013 | | November 1, 2023 - November 30, 2023 | 1,294,172 | $76.29 | 1,290,733 | | December 1, 2023 - December 31, 2023 | 1,370,044 | $80.19 | 1,356,163 | | **Total** | **4,708,150** | **$75.44** | **4,685,909** | - As of December 31, 2023, **$1.35 billion remained available for equity repurchases** under the $3.0 billion share repurchase program authorized by the Board of Directors, effective through December 31, 2024[272](index=272&type=chunk)[769](index=769&type=chunk) Cumulative Five-Year Total Return to Stockholders (Base Period 2018 = $100) | Company/Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :------------------------------------ | :--- | :--- | :--- | :--- | :--- | :--- | | The Hartford Financial Services Group, Inc. | $100 | $139.72 | $116.07 | $167.45 | $188.07 | $204.11 | | S&P 500 Index | $100 | $131.49 | $155.68 | $200.37 | $164.08 | $207.21 | | S&P Insurance Composite Index | $100 | $129.38 | $128.81 | $170.19 | $187.42 | $204.78 | [Item 7. Management

Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford's future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ, including those discussed i ...

Financial Data and Key Metrics Changes - The company reported core earnings for Q4 2023 of $935 million or $3.06 per diluted share, with a 12-month core earnings ROE of 15.8% [58][66] - The Group Benefits segment achieved record core earnings of $567 million for the full year, reflecting a core earnings margin of 8.1% [90] - The overall investment portfolio produced strong results, with net investment income of $653 million for the quarter and a total annualized portfolio yield of 4.3% before tax [91] Business Line Data and Key Metrics Changes - Group Benefits fully insured premium growth was 6% for Q4 and 7% for the year, with a core earnings margin of 9.8% for the quarter [50][90] - Small Commercial reported record-breaking annual written premium of $5 billion, with a decade-long trend of annual sub-90 underlying combined ratios [51] - Commercial Lines had a strong quarter with written premium growth of 10% for the year and an underlying combined ratio of 87.8% [75][76] Market Data and Key Metrics Changes - The company experienced a 6% increase in renewal written pricing in Commercial Lines, up from 5.5% in the previous quarter [54] - Personal Lines achieved auto renewal written price increases of nearly 22% and homeowners renewal written pricing of 14.7% [55][86] - The Group Life loss ratio improved to 83 for the quarter, reflecting an improving mortality trend [65] Company Strategy and Development Direction - The company aims to sustain profitable growth in Small Commercial through data science advancements and pricing expertise [52] - The focus on the preferred market within Personal Lines is seen as a competitive advantage, with plans to expand the Prevail product to additional states [81] - The company is committed to disciplined underwriting and expects to maintain underlying margins consistent with 2023 [94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic environment, noting low unemployment and a supportive macroeconomic setup [170] - The company anticipates continued strong performance in 2024, with expectations for core earnings margins in Group Benefits to remain between 6% and 7% [96] - Management highlighted the importance of maintaining pricing discipline to offset loss cost trends, particularly in long-tail liability casualty lines [164] Other Important Information - The company repurchased 4.7 million shares for $350 million during the quarter, with plans to maintain this level of repurchases in the first quarter of 2024 [92][145] - An increase in environmental reserves was noted, primarily due to higher estimated site remediation costs, including PFAS exposures [62][40] - The company expects total dividends from operating companies to be approximately $2.2 billion in 2024, up from 2023 [92][140] Q&A Session Summary Question: What is the outlook for the Commercial Lines expense ratio? - Management indicated a continuous improvement mindset and plans to seek additional efficiencies while maintaining investments for outstanding results [126][127] Question: Can you clarify the 21.9% rate increase in auto? - The majority of the increase was attributed to pure rate, with minimal exposure growth, and an expected improvement in the loss ratio of five to six points [128] Question: Are there concerns about peak margins in the current results? - Management expressed that while they are pleased with the current performance, it is viewed as the beginning of their mission, not the end [151]

Financial Data and Key Metrics Changes - The company reported core earnings of $708 million, or $2.29 per diluted share, with a core earnings return on equity (ROE) of 13.8% [137][133] - The underlying combined ratio for Commercial Lines improved to 87.8, reflecting strong performance [137][133] - Net investment income for the quarter was $597 million, benefiting from higher interest rates, with a total annualized portfolio yield of 4.1% before tax [17][133] Business Line Data and Key Metrics Changes - Commercial Lines experienced an 8% growth in top-line revenue, with written premiums exceeding $1 billion in Middle & Large Commercial, and an exceptional underlying combined ratio of 88.1 [15][133] - Group Benefits saw premium growth of 8% and a quarterly earnings margin of 9.8%, with core earnings reaching a record $170 million [6][133] - Small Commercial written premiums were $1.2 billion, with a 16% growth in new business and an underlying combined ratio below 90 for the 13th consecutive quarter [140][137] Market Data and Key Metrics Changes - The U.S. economy remains resilient, with robust payroll and strong retail sales supporting the company's business environment [11] - The company noted strong pricing trends across various lines, with Commercial property pricing exceeding 10% and Auto and General Liability nearing that level [5][133] - The company anticipates a 25% increase in commercial property premium for the full year, approaching $2.5 billion [134][133] Company Strategy and Development Direction - The company is focused on disciplined pricing and underwriting, aiming to sustain profitable growth while managing catastrophe exposure [20][134] - The management emphasized the importance of data science capabilities and underwriting tools to enhance margins and competitive positioning [12][134] - The company plans to return Personal Lines to targeted profitability by 2025, with ongoing rate increases expected [30][77] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategies, talent, and technology to continue delivering consistent results [18] - The company is monitoring economic conditions closely, with expectations of continued strong performance in Group Benefits due to low unemployment levels [61][82] - Management acknowledged competitive pressures in the market but remains optimistic about maintaining pricing discipline and growth [110][96] Other Important Information - The company reported total net favorable prior accident year development of $43 million, with reserve reductions in workers' compensation and package businesses [145][133] - The investment portfolio produced strong results, with expectations of a $200 million before-tax increase in investment income excluding limited partnerships [146][133] Q&A Session Summary Question: What are the trends in Commercial Lines premium growth? - Management noted a disciplined approach to pricing and underwriting, which may have led to a slowdown in premium growth in the Middle Market [19][20] Question: How is the company addressing medical cost inflation in workers' compensation? - Management indicated that medical severity is trending lower than expected, with claims management strategies in place to mitigate risks [38][39] Question: What is the outlook for Personal Lines profitability? - Management expects a return to profitability in Personal Lines by 2025, with ongoing rate increases and improved execution [30][77] Question: How does the company view the competitive environment in commercial insurance? - Management believes the competitive environment remains stable, with a focus on maintaining pricing discipline despite rising reinsurance costs [110][95] Question: Can you elaborate on the Group Benefits business and its economic sensitivity? - Management highlighted that the Group Benefits business is sensitive to employment levels, with strong performance linked to low unemployment rates [80][82]

The Hartford Financial Services Group, Inc. | October 26, 2023 The Hartford's Third Quarter 2023 Financial Results Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford's future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should ...

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 September 30, 2023 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 Financial Services Group, Inc. (NYSE:HIG) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET Company Participants Susan Spivak Bernstein – Senior Vice President, Investor Relations Chris Swift – Chairman and Chief Executive Officer Beth Costello – Chief Financial Officer Stephanie Bush – Head-Small Commercial and Personal Lines Mo Tooker – Head-Enterprise Sales & Distribution, Global Specialty, and Middle & Large Commercial Conference Call Participants Alex Scott – Goldman Sachs Mike Zar ...