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The Hartford(HIG) - 2025 Q2 - Quarterly Results
The HartfordThe Hartford(US:HIG)2025-07-28 20:16

Company Information Corporate Details and Ratings The company presents its corporate details and strong insurance financial strength ratings from major agencies as of July 25, 2025 Insurance Financial Strength Ratings (as of July 25, 2025) | Entity | A.M. Best | S&P | Moody's | Outlook (S&P, Moody's) | | :--- | :--- | :-- | :--- | :--- | | Hartford Fire Insurance Company | A+ | A+ | A1 | Positive | | Hartford Life and Accident Insurance Co.| A+ | A+ | A1 | Positive (S&P) | | Navigators Insurance Company | A+ | A+ | NR | Positive (S&P) | Other Ratings (as of July 25, 2025) | Rating Type | Rating | Outlook (S&P, Moody's) | | :--- | :--- | :--- | | Senior debt | BBB+ | Positive | | Junior subordinated debentures | bbb+ | Positive | | Preferred stock | bbb+ | Positive | - Common stock and preferred stock of The Hartford Insurance Group, Inc. are traded on the New York Stock Exchange under the symbols "HIG" and "HIG PR G", respectively5 Consolidated Financials Consolidated Financial Results The company reports significant year-over-year growth in net income, core earnings, and total revenues for the second quarter of 2025 Consolidated Financial Highlights (in millions, except per share data) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $995 | $738 | +34.8% | $1,625 | $1,491 | +8.9% | | Net income available to common stockholders | $990 | $733 | +35.1% | $1,615 | $1,481 | +9.0% | | Core earnings* | $981 | $750 | +30.8% | $1,620 | $1,459 | +11.0% | | Total revenues | $6,987 | $6,486 | +7.7% | $13,797 | $12,905 | +6.9% | | Total assets (period end) | $83,639 | $79,046 | +5.8% | | | | Per Share and Shares Data | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Basic EPS (Net income) | $3.49 | $2.48 | +40.7% | $5.66 | $4.99 | +13.4% | | Basic EPS (Core earnings*) | $3.46 | $2.54 | +36.2% | $5.68 | $4.92 | +15.4% | | Diluted EPS (Net income) | $3.44 | $2.44 | +41.0% | $5.58 | $4.92 | +13.4% | | Diluted EPS (Core earnings*) | $3.41 | $2.50 | +36.4% | $5.60 | $4.84 | +15.7% | | Book value per common share (period end)| $60.87 | $52.20 | +16.6% | | | | | Book value per common share (excl. AOCI)| $69.32 | $62.63 | +10.7% | | | | Return on Common Stockholders' Equity (ROE) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | | :--- | :--- | :--- | :--- | | Net income ROE | 19.8% | 19.8% | 0.0 pp | | Core earnings ROE | 17.0% | 17.4% | -0.4 pp | Consolidated Statements of Operations Increased earned premiums and net investment income drove higher total revenues and net income for the second quarter and first half of 2025 Consolidated Revenues (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Earned premiums | $5,961 | $5,578 | +6.9% | $11,796 | $11,024 | +7.0% | | Fee income | $342 | $339 | +0.9% | $688 | $672 | +2.4% | | Net investment income | $664 | $602 | +10.3% | $1,320 | $1,195 | +10.5% | | Total revenues | $6,987 | $6,486 | +7.7% | $13,797 | $12,905 | +6.9% | Consolidated Expenses and Income (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Benefits, losses and loss adjustment expenses | $3,712 | $3,661 | +1.4% | $7,712 | $7,272 | +6.0% | | Total benefits, losses and expenses | $5,741 | $5,574 | +3.0% | $11,768 | $11,082 | +6.2% | | Income before income taxes | $1,246 | $912 | +36.6% | $2,029 | $1,823 | +11.3% | | Net income | $995 | $738 | +34.8% | $1,625 | $1,491 | +8.9% | | Core earnings* | $981 | $750 | +30.8% | $1,620 | $1,459 | +11.0% | Operating Results by Segment Business Insurance remains the largest earnings contributor, while Personal Insurance shows a significant turnaround from a net loss to a net income Net Income (Loss) by Segment (in millions) | Segment | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Business Insurance | $696 | $540 | +28.9% | $1,173 | $1,113 | +5.4% | | Personal Insurance | $91 | $(11) | N/A | $96 | $23 | +317.4% | | P&C Other Operations | $13 | $11 | +18.2% | $26 | $19 | +36.8% | | Property & Casualty | $800 | $540 | +48.1% | $1,295 | $1,155 | +12.1% | | Employee Benefits | $150 | $171 | -12.3% | $283 | $279 | +1.4% | | Hartford Funds | $54 | $44 | +22.7% | $97 | $89 | +9.0% | | Corporate | $(9) | $(17) | N/A | $(50) | $(32) | -56.3% | | Net income | $995 | $738 | +34.8% | $1,625 | $1,491 | +8.9% | Core Earnings (Loss) by Segment (in millions) | Segment | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Business Insurance | $697 | $551 | +26.5% | $1,168 | $1,097 | +6.5% | | Personal Insurance | $94 | $(4) | N/A | $100 | $29 | +244.8% | | P&C Other Operations | $14 | $14 | 0.0% | $27 | $21 | +28.6% | | Property & Casualty | $805 | $561 | +43.5% | $1,295 | $1,147 | +12.9% | | Employee Benefits | $163 | $178 | -8.4% | $299 | $285 | +4.9% | | Hartford Funds | $46 | $43 | +7.0% | $90 | $84 | +7.1% | | Corporate | $(33) | $(32) | -3.1% | $(64) | $(57) | -12.3% | | Core earnings | $981 | $750 | +30.8% | $1,620 | $1,459 | +11.0% | Consolidating Balance Sheets Total assets grew, driven by increased investments and premiums receivable, strengthening the overall financial position as of June 30, 2025 Consolidated Assets (in millions) | Metric | Jun 30 2025 | Dec 31 2024 | Change | | :--- | :--- | :--- | :--- | | Total investments | $60,903 | $59,210 | +2.9% | | Premiums receivable and agents' balances, net | $6,698 | $5,998 | +11.7% | | Total assets | $83,639 | $80,917 | +3.4% | Consolidated Liabilities and Equity (in millions) | Metric | Jun 30 2025 | Dec 31 2024 | Change | | :--- | :--- | :--- | :--- | | Unpaid losses and loss adjustment expenses | $45,482 | $44,610 | +2.0% | | Unearned premiums | $10,337 | $9,408 | +9.9% | | Total liabilities | $66,121 | $64,470 | +2.6% | | Common stockholders' equity, excluding AOCI* | $19,568 | $18,999 | +3.0% | | Total stockholders' equity | $17,518 | $16,447 | +6.5% | Capital Structure The company's capital structure shows stable debt and improved leverage ratios, reflecting prudent financial management as of June 30, 2025 Capitalization (in millions) | Metric | Jun 30 2025 | Jun 30 2024 | Change | | :--- | :--- | :--- | :--- | | Total debt | $4,369 | $4,364 | +0.1% | | Total stockholders' equity | $17,518 | $15,680 | +11.7% | | Common stockholders' equity, excluding AOCI* | $19,568 | $18,414 | +6.3% | | Total capitalization, including AOCI, net of tax | $21,887 | $20,044 | +9.2% | | Total capitalization, excluding AOCI, net of tax* | $24,271 | $23,112 | +5.0% | Debt to Capitalization Ratios | Metric | Jun 30 2025 | Jun 30 2024 | Change (pp) | | :--- | :--- | :--- | :--- | | Total debt to capitalization, including AOCI | 20.0% | 21.8% | -1.8 | | Total debt to capitalization, excluding AOCI* | 18.0% | 18.9% | -0.9 | | Total debt and preferred stock to capitalization, including AOCI | 21.5% | 23.4% | -1.9 | | Total debt and preferred stock to capitalization, excluding AOCI* | 19.4% | 20.3% | -0.9 | Fixed Charge Coverage Ratios | Metric | Jun 30 2025 | Jun 30 2024 | Change | | :--- | :--- | :--- | :--- | | Total earnings to total fixed charges | 18.8:1 | 17.1:1 | +1.7 | Statutory Capital to GAAP Stockholders' Equity Reconciliation The reconciliation details key adjustments from U.S. statutory capital to U.S. GAAP stockholders' equity as of June 30, 2025 Statutory Capital to GAAP Stockholders' Equity Reconciliation (in millions) - June 30, 2025 | Metric | P&C | Employee Benefits | | :--- | :--- | :--- | | U.S. statutory net income (6M) | $1,101 | $296 | | U.S. statutory capital | $13,686 | $2,560 | | U.S. GAAP adjustments: | | | | DAC | $1,276 | $34 | | Non-admitted deferred tax assets | $249 | $158 | | Deferred taxes | $(340) | $(325) | | Goodwill | $113 | $723 | | Other intangible assets | $16 | $296 | | Non-admitted assets other than deferred taxes | $808 | $108 | | Unrealized losses on investments | $(963) | $(617) | | Deferred gain on retroactive reinsurance agreements | $(856) | — | | U.S. GAAP stockholders' equity of U.S. insurance entities | $14,838 | $4,280 | | Total U.S. GAAP stockholders' equity | $16,010 | $4,280 | Accumulated Other Comprehensive Income (Loss) Total Accumulated Other Comprehensive Income (AOCI) loss improved as of June 30, 2025, driven by reduced unrealized losses on investments Accumulated Other Comprehensive Income (Loss) (in millions) | Metric | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sept 30 2024 | Jun 30 2024 | Mar 31 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net unrealized loss on fixed maturities, AFS | $(1,029) | $(1,237) | $(1,539) | $(671) | $(1,732) | $(1,642) | | Total net unrealized gain (loss) | $(1,028) | $(1,203) | $(1,505) | $(643) | $(1,709) | $(1,628) | | Pension and other postretirement plan adjustments | $(1,430) | $(1,436) | $(1,443) | $(1,422) | $(1,429) | $(1,435) | | Total AOCI | $(2,384) | $(2,580) | $(2,886) | $(2,005) | $(3,068) | $(2,997) | Property & Casualty (P&C) P&C Income Statements The P&C segment reported strong growth in premiums and underwriting gain, driven by favorable prior accident year development P&C Premiums and Underwriting (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Written premiums | $4,796 | $4,453 | +7.7% | $9,395 | $8,659 | +8.5% | | Earned premiums | $4,355 | $3,970 | +9.7% | $8,578 | $7,831 | +9.5% | | Current accident year catastrophes | $212 | $280 | -24.3% | $679 | $441 | +54.0% | | Prior accident year development | $(187) | $(115) | -62.6% | $(309) | $(171) | -80.7% | | Total losses and loss adjustment expenses | $2,562 | $2,512 | +2.0% | $5,361 | $4,917 | +9.0% | | Underwriting gain* | $497 | $254 | +95.7% | $627 | $533 | +17.6% | | Net income | $800 | $540 | +48.1% | $1,295 | $1,155 | +12.1% | | Core earnings* | $805 | $561 | +43.5% | $1,295 | $1,147 | +12.9% | P&C Prior Accident Year Development (in millions) | Line of Business | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Workers' compensation | $(61) | $(52) | -17.3% | $(126) | $(119) | -5.9% | | General liability | — | $32 | N/A | — | $49 | N/A | | Commercial property | $(20) | $(2) | -900.0% | $(23) | $(5) | -360.0% | | Bond | $(22) | $(22) | 0.0% | $(22) | $(22) | 0.0% | | Personal automobile liability | $(10) | $(13) | +23.1% | $(22) | $(13) | -69.2% | | Homeowners | $(13) | $(10) | -30.0% | $(31) | $(10) | -210.0% | | Catastrophes | $(39) | $(38) | -2.6% | $(39) | $(38) | -2.6% | | Total prior accident year development | $(187) | $(115) | -62.6% | $(309) | $(171) | -80.7% | P&C Underwriting Ratios P&C underwriting ratios demonstrate improved profitability, with a lower combined ratio and underlying combined ratio for Q2 2025 P&C Underwriting Ratios | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loss and loss adjustment expense ratio | 58.8% | 63.3% | -4.5 pp | 62.5% | 62.8% | -0.3 pp | | Expense ratio | 29.5% | 30.1% | -0.6 pp | 29.9% | 30.2% | -0.3 pp | | Combined ratio | 88.6% | 93.6% | -5.0 pp | 92.7% | 93.2% | -0.5 pp | | Underlying combined ratio* | 88.0% | 89.5% | -1.5 pp | 88.4% | 89.8% | -1.4 pp | | Underlying loss and loss adjustment expense ratio* | 58.3% | 59.1% | -0.8 pp | 58.2% | 59.3% | -1.1 pp | | Current accident year catastrophes | 4.9% | 7.1% | -2.2 pp | 7.9% | 5.6% | +2.3 pp | | Prior accident year development | (4.3%) | (2.9%) | -1.4 pp | (3.6%) | (2.2%) | -1.4 pp | Business Insurance Income Statements Business Insurance delivered strong growth in premiums and underwriting gain, supported by favorable prior accident year development Business Insurance Premiums and Underwriting (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Written premiums | $3,816 | $3,540 | +7.8% | $7,502 | $6,902 | +8.7% | | Earned premiums | $3,424 | $3,121 | +9.7% | $6,748 | $6,169 | +9.4% | | Current accident year catastrophes | $114 | $155 | -26.4% | $394 | $264 | +49.2% | | Prior accident year development | $(146) | $(81) | -80.2% | $(229) | $(137) | -67.2% | | Underwriting gain | $444 | $319 | +39.2% | $631 | $620 | +1.8% | | Net income | $696 | $540 | +28.9% | $1,173 | $1,113 | +5.4% | | Core earnings | $697 | $551 | +26.5% | $1,168 | $1,097 | +6.5% | Business Insurance Prior Accident Year Development (in millions) | Line of Business | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Workers' compensation | $(61) | $(52) | -17.3% | $(126) | $(119) | -5.9% | | General liability | — | $32 | N/A | — | $49 | N/A | | Commercial property | $(20) | $(2) | -900.0% | $(23) | $(5) | -360.0% | | Bond | $(22) | $(22) | 0.0% | $(22) | $(22) | 0.0% | | Catastrophes | $(28) | $(33) | +15.2% | $(28) | $(33) | +15.2% | | Total prior accident year development | $(146) | $(81) | -80.2% | $(229) | $(137) | -67.2% | Business Insurance Underwriting Ratios Business Insurance underwriting ratios show an improved combined ratio, reflecting strong overall underwriting performance in Q2 2025 Business Insurance Underwriting Ratios | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loss and loss adjustment expense ratio | 56.1% | 58.4% | -2.3 pp | 59.4% | 58.4% | +1.0 pp | | Expense ratio | 30.6% | 31.1% | -0.5 pp | 30.9% | 31.3% | -0.4 pp | | Combined ratio | 87.0% | 89.8% | -2.8 pp | 90.6% | 90.0% | +0.6 pp | | Underlying combined ratio | 88.0% | 87.4% | +0.6 pp | 88.2% | 87.9% | +0.3 pp | | Underlying loss and loss adjustment expense ratio | 57.0% | 56.1% | +0.9 pp | 57.0% | 56.3% | +0.7 pp | Business Insurance Combined Ratios by Line of Business | Line of Business | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Small Business Combined ratio | 89.7% | 88.7% | +1.0 pp | 91.5% | 88.8% | +2.7 pp | | Small Business Underlying combined ratio| 89.0% | 86.8% | +2.2 pp | 89.2% | 88.1% | +1.1 pp | | Middle & Large Business Combined ratio | 86.6% | 95.9% | -9.3 pp | 93.1% | 95.0% | -1.9 pp | | Middle & Large Business Underlying combined ratio | 89.1% | 89.6% | -0.5 pp | 89.8% | 89.4% | +0.4 pp | | Global Specialty Combined ratio | 85.9% | 83.4% | +2.5 pp | 87.5% | 85.6% | +1.9 pp | | Global Specialty Underlying combined ratio| 84.8% | 85.2% | -0.4 pp | 84.4% | 85.2% | -0.8 pp | Business Insurance Supplemental Data Supplemental data highlights written premium growth across all major business segments, with strong pricing power in renewals Business Insurance Written Premiums by Segment (in millions) | Segment | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Small Business | $1,503 | $1,373 | +9.5% | $3,056 | $2,798 | +9.2% | | Middle & Large Business | $1,197 | $1,140 | +5.0% | $2,308 | $2,156 | +7.1% | | Global Specialty | $1,100 | $1,013 | +8.6% | $2,106 | $1,920 | +9.7% | | Total | $3,816 | $3,540 | +7.8% | $7,502 | $6,902 | +8.7% | Business Insurance Statistical Premium Information | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Small Business Net New Business Premium | $305 | $291 | +4.8% | $603 | $559 | +7.9% | | Small Business Renewal Written Price Increases | 5.7% | 6.4% | -0.7 pp | 6.1% | 6.0% | +0.1 pp | | Small Business Policy Count Retention | 83% | 84% | -1.0 pp | 84% | 84% | 0.0 pp | | Middle Market Renewal Written Price Increases | 5.8% | 6.7% | -0.9 pp | 6.3% | 6.9% | -0.6 pp | | Global Specialty Renewal Written Price Increases | 5.1% | 6.2% | -1.1 pp | 5.6% | 6.2% | -0.6 pp | Personal Insurance Income Statements Personal Insurance achieved a significant turnaround from a net loss to a net income, driven by premium growth and improved underwriting results Personal Insurance Premiums and Underwriting (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Written premiums | $980 | $913 | +7.3% | $1,893 | $1,757 | +7.7% | | Earned premiums | $931 | $849 | +9.7% | $1,830 | $1,662 | +10.1% | | Current accident year catastrophes | $98 | $125 | -21.5% | $285 | $177 | +61.0% | | Prior accident year development | $(41) | $(34) | -20.6% | $(80) | $(41) | -95.1% | | Underwriting gain (loss) | $55 | $(63) | N/A | $0 | $(76) | N/A | | Net income (loss) | $91 | $(11) | N/A | $96 | $23 | +317.4% | | Core earnings (loss) | $94 | $(4) | N/A | $100 | $29 | +244.8% | Personal Insurance Prior Accident Year Development (in millions) | Line of Business | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automobile liability | $(10) | $(13) | +23.1% | $(22) | $(13) | -69.2% | | Homeowners | $(13) | $(10) | -30.0% | $(31) | $(10) | -210.0% | | Catastrophes | $(11) | $(5) | -120.0% | $(11) | $(5) | -120.0% | | Total prior accident year development | $(41) | $(34) | -20.6% | $(80) | $(41) | -95.1% | Personal Insurance Underwriting Ratios Personal Insurance underwriting ratios reflect a notable improvement in profitability, with a significantly lower combined ratio Personal Insurance Underwriting Ratios | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loss and loss adjustment expense ratio | 69.0% | 81.0% | -12.0 pp | 73.9% | 78.7% | -4.8 pp | | Expense ratio | 25.1% | 26.4% | -1.3 pp | 26.1% | 25.9% | +0.2 pp | | Combined ratio | 94.1% | 107.4% | -13.3 pp | 100.0% | 104.6% | -4.6 pp | | Underlying combined ratio | 88.0% | 96.7% | -8.7 pp | 88.8% | 96.4% | -7.6 pp | | Underlying loss and loss adjustment expense ratio | 62.8% | 70.3% | -7.5 pp | 62.7% | 70.5% | -7.8 pp | Personal Insurance Combined Ratios by Product | Product | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automobile Combined ratio | 94.0% | 105.4% | -11.4 pp | 93.8% | 104.7% | -10.9 pp | | Automobile Underlying combined ratio | 95.2% | 104.9% | -9.7 pp | 95.7% | 104.7% | -9.0 pp | | Homeowners Combined ratio | 94.4% | 114.5% | -20.1 pp | 113.1% | 105.6% | +7.5 pp | | Homeowners Underlying combined ratio | 72.7% | 77.8% | -5.1 pp | 73.9% | 77.4% | -3.5 pp | Personal Insurance Supplemental Data Supplemental data shows premium growth across distribution channels and product lines, with strong renewal written price increases Personal Insurance Written Premiums by Distribution (in millions) | Distribution | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Direct | $796 | $780 | +2.1% | $1,554 | $1,508 | +3.0% | | Agency | $184 | $133 | +38.3% | $339 | $249 | +36.1% | | Total | $980 | $913 | +7.3% | $1,893 | $1,757 | +7.7% | Personal Insurance Written Premiums by Product Line (in millions) | Product Line | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automobile | $633 | $617 | +2.6% | $1,260 | $1,217 | +3.5% | | Homeowners | $347 | $296 | +17.2% | $633 | $540 | +17.2% | | Total | $980 | $913 | +7.3% | $1,893 | $1,757 | +7.7% | Personal Insurance Statistical Premium Information (Year Over Year) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automobile Net New Business Premium | $81 | $82 | -1.2% | $162 | $154 | +5.2% | | Homeowners Net New Business Premium | $69 | $47 | +46.8% | $131 | $81 | +61.7% | | Automobile Renewal Written Price Increases | 14.0% | 23.4% | -9.4 pp | 14.8% | 24.4% | -9.6 pp | | Homeowners Renewal Written Price Increases | 12.7% | 14.9% | -2.2 pp | 12.5% | 15.0% | -2.5 pp | | Automobile Effective Policy Count Retention | 79% | 79% | 0.0 pp | 79% | 79% | 0.0 pp | | Homeowners Effective Policy Count Retention | 83% | 84% | -1.0 pp | 83% | 83% | 0.0 pp | P&C Other Operations Income Statements P&C Other Operations reported a net income for Q2 2025, influenced by stable net investment income and favorable prior year development P&C Other Operations Income (Loss) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Prior accident year development | $0 | $0 | 0.0% | $0 | $7 | N/A | | Underwriting loss | $(2) | $(2) | 0.0% | $(4) | $(11) | +63.6% | | Net investment income | $19 | $19 | 0.0% | $37 | $37 | 0.0% | | Net income (loss) | $13 | $11 | +18.2% | $26 | $19 | +36.8% | | Core earnings (loss) | $14 | $14 | 0.0% | $27 | $21 | +28.6% | Employee Benefits Income Statements The Employee Benefits segment reported stable premiums and healthy margins, reflecting consistent performance for the second quarter of 2025 Employee Benefits Revenues and Income (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Earned premiums | $1,606 | $1,608 | -0.1% | $3,218 | $3,193 | +0.8% | | Fee income | $57 | $57 | 0.0% | $113 | $111 | +1.8% | | Net investment income | $118 | $112 | +5.4% | $244 | $226 | +8.0% | | Total revenues | $1,765 | $1,768 | -0.2% | $3,555 | $3,522 | +0.9% | | Net income | $150 | $171 | -12.3% | $283 | $279 | +1.4% | | Core earnings* | $163 | $178 | -8.4% | $299 | $285 | +4.9% | Employee Benefits Margins and ROE | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income margin | 8.5% | 9.7% | -1.2 pp | 8.0% | 7.9% | +0.1 pp | | Core earnings margin* | 9.2% | 10.0% | -0.8 pp | 8.4% | 8.1% | +0.3 pp | | Net income available to common stockholders ROE | 16.1% | 18.0% | -1.9 pp | | | | | Core earnings ROE* | 15.3% | 16.4% | -1.1 pp | | | | Supplemental Data Supplemental data shows stable fully insured ongoing premiums, though total sales decreased compared to the prior year Employee Benefits Premiums (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Group disability | $838 | $837 | +0.1% | $1,682 | $1,673 | +0.5% | | Group life | $644 | $663 | -2.9% | $1,294 | $1,308 | -1.1% | | Other | $120 | $107 | +12.1% | $238 | $211 | +12.8% | | Total fully insured ongoing premiums | $1,602 | $1,607 | -0.3% | $3,214 | $3,192 | +0.7% | | Total premiums | $1,606 | $1,608 | -0.1% | $3,218 | $3,193 | +0.8% | Employee Benefits Sales (Gross Annualized New Premiums) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Group disability | $48 | $37 | +29.7% | $210 | $284 | -26.1% | | Group life | $44 | $51 | -13.7% | $207 | $205 | +1.0% | | Other | $15 | $13 | +15.4% | $71 | $56 | +26.8% | | Total fully insured ongoing sales | $107 | $101 | +5.9% | $488 | $545 | -10.5% | | Total sales | $111 | $102 | +8.8% | $492 | $546 | -9.9% | Employee Benefits Ratios, Excluding Buyouts | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Group disability loss ratio | 68.5% | 67.1% | +1.4 pp | 68.8% | 68.6% | +0.2 pp | | Group life loss ratio | 74.3% | 74.9% | -0.6 pp | 77.1% | 78.7% | -1.6 pp | | Total loss ratio | 69.1% | 68.9% | +0.2 pp | 70.5% | 71.1% | -0.6 pp | | Expense ratio | 25.7% | 24.4% | +1.3 pp | 25.5% | 24.9% | +0.6 pp | Hartford Funds Income Statements Hartford Funds reported stable revenues and an increase in daily average Assets Under Management (AUM), reflecting consistent performance Hartford Funds Revenues and Income (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Investment management fees | $198 | $195 | +1.5% | $400 | $386 | +3.6% | | Total revenues | $271 | $261 | +3.8% | $535 | $520 | +2.9% | | Net income | $54 | $44 | +22.7% | $97 | $89 | +9.0% | | Core earnings* | $46 | $43 | +7.0% | $90 | $84 | +7.1% | Hartford Funds AUM and Return on Assets | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Daily average Hartford Funds AUM (in millions) | $138,195 | $134,064 | +3.1% | $140,004 | $132,856 | +5.4% | | Net income Return on assets (bps) | 15.6 | 13.1 | +2.5 | 13.9 | 13.4 | +0.5 | | Core earnings Return on assets (bps)* | 13.3 | 12.8 | +0.5 | 12.9 | 12.6 | +0.3 | Asset Value Rollforward - Assets Under Management By Asset Class Total Assets Under Management (AUM) increased, driven by positive market value changes despite net outflows in Equity Funds Hartford Funds AUM by Asset Class (in millions) | Asset Class | Jun 30 2025 | Jun 30 2024 | Change | | :--- | :--- | :--- | :--- | | Equity Funds | $89,072 | $83,212 | +7.0% | | Fixed Income Funds | $21,827 | $17,825 | +22.4% | | Multi-Strategy Investments Funds | $18,544 | $18,807 | -1.4% | | Exchange-Traded Funds ("ETF") AUM | $4,847 | $3,842 | +26.1% | | Mutual Fund and ETF AUM | $134,290 | $123,686 | +8.6% | | Third-party life and annuity separate account AUM | $11,226 | $11,832 | -5.1% | | Hartford Funds AUM | $145,516 | $135,518 | +7.4% | Hartford Funds Net Flows by Asset Class (in millions) | Asset Class | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Funds | $(1,221) | $(1,219) | -0.2% | $(2,360) | $(3,279) | +28.0% | | Fixed Income Funds | $58 | $489 | -88.1% | $66 | $814 | -91.9% | | Multi-Strategy Investments Funds | $(381) | $(458) | +16.8% | $(828) | $(1,025) | +19.2% | | Exchange-Traded Funds ("ETF") AUM | $29 | $103 | -71.8% | $175 | $(106) | N/A | | Net flows - mutual fund and ETF | $(1,515) | $(1,085) | -39.6% | $(2,947) | $(3,596) | +18.0% | Hartford Funds Change in Market Value and Other by Asset Class (in millions) | Asset Class | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Funds | $7,501 | $1,094 | +585.6% | $7,432 | $7,139 | +4.1% | | Fixed Income Funds | $371 | $135 | +174.8% | $702 | $238 | +194.9% | | Multi-Strategy Investments Funds | $604 | $(3) | N/A | $860 | $540 | +59.3% | | Exchange-Traded Funds ("ETF") AUM | $110 | $(14) | N/A | $189 | $49 | +285.7% | | Change in market value and other (Mutual Fund and ETF AUM) | $8,586 | $1,212 | +608.4% | $9,183 | $7,966 | +15.3% | Corporate Income Statements The Corporate segment reported a net loss, primarily due to interest expense and other unallocated operating costs Corporate Revenues and Expenses (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenues | $52 | $33 | +57.6% | $59 | $68 | -13.2% | | Interest expense | $50 | $50 | 0.0% | $100 | $100 | 0.0% | | Total expenses | $64 | $63 | +1.6% | $130 | $130 | 0.0% | | Net loss | $(9) | $(17) | +47.1% | $(50) | $(32) | -56.3% | | Core loss* | $(33) | $(32) | -3.1% | $(64) | $(57) | -12.3% | Investments Investment Income Before Tax - Consolidated Consolidated net investment income increased, driven by higher income from fixed maturities and mortgage loans Consolidated Net Investment Income (Loss) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total fixed maturities | $584 | $537 | +8.8% | $1,158 | $1,063 | +8.9% | | Mortgage loans | $72 | $65 | +10.8% | $142 | $128 | +10.9% | | Limited partnerships and other alternative investments | $13 | $16 | -18.8% | $52 | $32 | +62.5% | | Total net investment income | $664 | $602 | +10.3% | $1,320 | $1,195 | +10.5% | Consolidated Annualized Investment Yields and Rates | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Annualized investment yield, before tax | 4.3% | 4.1% | +0.2 pp | 4.3% | 4.1% | +0.2 pp | | Annualized investment yield, before tax, excluding limited partnership and other alternative investments* | 4.6% | 4.4% | +0.2 pp | 4.5% | 4.3% | +0.2 pp | | Annualized investment yield, net of tax | 3.5% | 3.3% | +0.2 pp | 3.4% | 3.3% | +0.1 pp | | Average reinvestment rate | 5.9% | 6.4% | -0.5 pp | 5.7% | 6.2% | -0.5 pp | | Portfolio duration (in years) | 3.9 | 3.9 | 0.0 | 3.9 | 3.9 | 0.0 | Investment Income Before Tax - Property & Casualty P&C investment income increased, supported by strong contributions from fixed maturities and an improved annualized investment yield P&C Net Investment Income (Loss) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total fixed maturities | $464 | $418 | +11.0% | $917 | $823 | +11.4% | | Mortgage loans | $54 | $49 | +10.2% | $107 | $95 | +12.6% | | Total net investment income | $526 | $471 | +11.7% | $1,038 | $930 | +11.6% | P&C Annualized Investment Yields and Rates | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Annualized investment yield, before tax | 4.4% | 4.2% | +0.2 pp | 4.3% | 4.1% | +0.2 pp | | Annualized investment yield, before tax, excluding limited partnership and other alternative investments | 4.7% | 4.4% | +0.3 pp | 4.5% | 4.4% | +0.1 pp | | Average reinvestment rate | 5.8% | 6.4% | -0.6 pp | 5.7% | 6.2% | -0.5 pp | | Portfolio duration (in years) | 3.8 | 3.8 | 0.0 | 3.8 | 3.8 | 0.0 | Investment Income Before Tax - Employee Benefits Employee Benefits' investment income grew, driven by fixed maturities and an improved annualized investment yield Employee Benefits Net Investment Income (Loss) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total fixed maturities | $104 | $102 | +2.0% | $208 | $205 | +1.5% | | Mortgage loans | $18 | $16 | +12.5% | $35 | $33 | +6.1% | | Total net investment income | $118 | $112 | +5.4% | $244 | $226 | +8.0% | Employee Benefits Annualized Investment Yields and Rates | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Annualized investment yield, before tax | 4.1% | 3.9% | +0.2 pp | 4.2% | 3.9% | +0.3 pp | | Annualized investment yield, before tax, excluding limited partnership and other alternative investments | 4.4% | 4.3% | +0.1 pp | 4.4% | 4.2% | +0.2 pp | | Average reinvestment rate | 6.1% | 6.6% | -0.5 pp | 6.0% | 6.5% | -0.5 pp | | Portfolio duration (in years) | 5.0 | 4.9 | +0.1 | 5.0 | 4.9 | +0.1 | Net Investment Income by Segment Consolidated net investment income increased, with Property & Casualty and Employee Benefits as the primary contributors Net Investment Income by Segment (in millions) | Segment | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Business Insurance | $449 | $402 | +11.7% | $886 | $793 | +11.7% | | Personal Insurance | $58 | $50 | +16.0% | $115 | $100 | +15.0% | | P&C Other Operations | $19 | $19 | 0.0% | $37 | $37 | 0.0% | | Total Property & Casualty | $526 | $471 | +11.7% | $1,038 | $930 | +11.6% | | Employee Benefits | $118 | $112 | +5.4% | $244 | $226 | +8.0% | | Hartford Funds | $6 | $5 | +20.0% | $10 | $9 | +11.1% | | Corporate | $14 | $14 | 0.0% | $28 | $30 | -6.7% | | Total net investment income by segment | $664 | $602 | +10.3% | $1,320 | $1,195 | +10.5% | Net Investment Income from Limited Partnerships and Other Alternative Investments (in millions) | Segment | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Property & Casualty | $11 | $16 | -31.3% | $39 | $31 | +25.8% | | Employee Benefits | $2 | $0 | N/A | $13 | $1 | +1200.0% | | Total net investment income from limited partnerships and other alternative investments | $13 | $16 | -18.8% | $52 | $32 | +62.5% | Components of Net Realized Gains (Losses) The company reported overall net realized losses, as gains on sales were offset by losses on fixed maturities and other items Consolidated Net Realized Gains (Losses) (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross gains on sales of fixed maturities | $19 | $6 | +216.7% | $32 | $11 | +190.9% | | Gross losses on sales of fixed maturities | $(45) | $(75) | +40.0% | $(70) | $(86) | +18.6% | | Equity securities | $36 | $14 | +157.1% | $25 | $49 | -48.9% | | Other net gains (losses) | $(20) | $(3) | -566.7% | $(48) | $(6) | -700.0% | | Total net realized gains (losses) | $(10) | $(59) | +83.1% | $(59) | $(31) | -90.3% | | Total net gains (losses) excluded from core earnings, before tax | $(10) | $(58) | +82.8% | $(57) | $(28) | -103.6% | Composition of Invested Assets The invested asset portfolio is diversified, with a high-quality fixed maturities portfolio dominated by corporate bonds Total Investments (in millions) | Metric | Jun 30 2025 | Jun 30 2024 | Change | | :--- | :--- | :--- | :--- | | Total investments | $60,903 | $56,890 | +7.0% | Composition of Fixed Maturities, AFS by Type (in millions) | Type | Jun 30 2025 | Percent | Jun 30 2024 | Percent | Change (Amount) | | :--- | :--- | :--- | :--- | :--- | :--- | | Corporate | $22,525 | 50.6% | $19,493 | 47.8% | +15.6% | | Residential mortgage-backed securities | $5,513 | 12.4% | $4,787 | 11.7% | +15.2% | | Municipal | $4,650 | 10.4% | $5,294 | 13.0% | -12.2% | | Asset-backed securities | $4,376 | 9.8% | $3,014 | 7.4% | +45.2% | | Collateralized loan obligations | $3,393 | 7.6% | $3,514 | 8.6% | -3.5% | | Commercial mortgage-backed securities | $2,585 | 5.8% | $2,942 | 7.2% | -12.2% | | U.S. Treasuries | $1,061 | 2.4% | $1,224 | 3.0% | -13.3% | | Total fixed maturities, AFS | $44,558 | 100.0% | $40,814 | 100.0% | +9.2% | Composition of Fixed Maturities, AFS by Credit Rating (in millions) | Rating | Jun 30 2025 | Percent | Jun 30 2024 | Percent | Change (Amount) | | :--- | :--- | :--- | :--- | :--- | :--- | | A | $12,239 | 27.5% | $10,785 | 26.4% | +13.5% | | BBB | $10,070 | 22.6% | $9,204 | 22.6% | +9.4% | | AA | $7,439 | 16.7% | $7,283 | 17.8% | +2.1% | | AAA | $7,333 | 16.4% | $6,413 | 15.7% | +14.3% | | U.S. government/government agencies | $5,130 | 11.5% | $4,770 | 11.7% | +7.5% | | Total fixed maturities, AFS | $44,558 | 100.0% | $40,814 | 100.0% | +9.2% | Invested Asset Exposures Invested asset exposures are well-diversified across various sectors, with no significant concentration in any single issuer Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector (in millions) | Sector | Fair Value | Percent of Total Invested Assets | | :--- | :--- | :--- | | Financial services | $7,075 | 11.6% | | Technology and communications | $3,078 | 5.1% | | Consumer non-cyclical | $2,701 | 4.4% | | Utilities | $2,522 | 4.2% | | Capital goods | $1,783 | 2.9% | | Consumer cyclical | $1,660 | 2.7% | | Energy | $1,465 | 2.4% | | Basic industry | $1,140 | 1.9% | | Transportation | $890 | 1.5% | | Other | $740 | 1.2% | | Total | $23,054 | 37.9% | Top Ten Exposures by Issuer (in millions) | Issuer | Fair Value | Percent of Total Invested Assets | | :--- | :--- | :--- | | Morgan Stanley | $235 | 0.4% | | NextEra Energy Inc. | $222 | 0.3% | | Hyundai Motor Company | $195 | 0.3% | | Entergy Corporation | $187 | 0.3% | | Government of Canada | $179 | 0.3% | | Bank of America Corporation | $177 | 0.3% | | Goldman Sachs Group Inc. | $176 | 0.3% | | Enterprise Holdings Inc. | $163 | 0.3% | | SPCC Funding I LLC | $162 | 0.3% | | Duke Energy Corporation | $162 | 0.3% | | Total | $1,858 | 3.1% | Appendix Basis of Presentation and Definitions This section outlines the basis of presentation for the financial supplement and defines the company's reportable segments and key metrics - The Hartford Insurance Group, Inc. conducts business principally in five reportable segments: Business Insurance, Personal Insurance, Property & Casualty Other Operations ("P&C Other Operations"), Employee Benefits and Hartford Funds, as well as a Corporate category114 - Key operating and statistical measures for P&C Business Insurance and Personal Insurance include net new business premium, gross new business premium, renewal written price increases, policy count retention, effective policy count retention, premium retention, and policies in-force119121 - Key performance measures for the Employee Benefits segment include the loss ratio and expense ratio, both excluding buyout premiums123 Discussion of Non-GAAP Financial Measures This section provides a comprehensive discussion and reconciliation of various non-GAAP financial measures used to assess operating performance - Core earnings is a non-GAAP measure that excludes certain realized gains and losses, restructuring costs, and other non-recurring items to provide insight into ongoing business trends125126128 Basic Earnings Per Share Reconciliation | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income available to common stockholders per share | $3.49 | $2.48 | +40.7% | $5.66 | $4.99 | +13.4% | | Adjustments to reconcile to core earnings per share: | | | | | | | | Net realized losses (gains), excluded from core earnings, before tax | 0.04 | 0.20 | -0.16 | 0.20 | 0.09 | +0.11 | | Change in deferred gain on retroactive reinsurance, before tax | (0.08) | (0.13) | +0.05 | (0.20) | (0.21) | +0.01 | | Core earnings per share | $3.46 | $2.54 | +36.2% | $5.68 | $4.92 | +15.4% | Core Earnings ROE Reconciliation (Last Twelve Months Ended) | Metric | Jun 30 2025 | Jun 30 2024 | Change (pp) | | :--- | :--- | :--- | :--- | | Net income ROE | 19.8% | 19.8% | 0.0 | | Adjustments to reconcile to core earnings ROE: | | | | | Net realized losses (gains), excluded from core earnings, before tax | 0.5% | 0.8% | -0.3 | | Change in deferred gain on retroactive reinsurance, before tax | (0.5%) | 0.9% | -1.4 | | Impact of AOCI, excluded from denominator of core earnings ROE | (2.8%) | (3.8%) | +1.0 | | Core earnings ROE | 17.0% | 17.4% | -0.4 | P&C Underlying Underwriting Gain Reconciliation (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $800 | $540 | +48.1% | $1,295 | $1,155 | +12.1% | | Underwriting gain | $497 | $254 | +95.7% | $627 | $533 | +17.6% | | Current accident year catastrophes | $212 | $280 | -24.3% | $679 | $441 | +54.0% | | Prior accident year development | $(187) | $(115) | -62.6% | $(309) | $(171) | -80.7% | | Underlying underwriting gain | $522 | $419 | +24.6% | $997 | $803 | +24.2% | P&C Underlying Loss and Loss Adjustment Expense Ratio Reconciliation | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loss and loss adjustment expense ratio | 58.8% | 63.3% | -4.5 pp | 62.5% | 62.8% | -0.3 pp | | Current accident year catastrophes and prior accident year development | (0.6%) | (4.2%) | +3.6 pp | (4.3%) | (3.4%) | -0.9 pp | | Underlying loss and loss adjustment expense ratio | 58.3% | 59.1% | -0.8 pp | 58.2% | 59.3% | -1.1 pp | Consolidated Net Investment Income Excluding Limited Partnerships and Other Alternative Investments Reconciliation (in millions) | Metric | Jun 30 2025 (3M) | Jun 30 2024 (3M) | YoY Change (3M) | Jun 30 2025 (6M) | Jun 30 2024 (6M) | YoY Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total net investment income | $664 | $602 | +10.3% | $1,320 | $1,195 | +10.5% | | Adjustment for income from limited partnerships and other alternative investments | $(13) | $(16) | +18.8% | $(52) | $(32) | -62.5% | | Net investment income excluding limited partnerships and other alternative investments | $651 | $586 | +11.1% | $1,268 | $1,163 | +9.0% |