The Hartford (HIG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - The Hartford reported $4.46 billion in revenue for Q2 2024, a year-over-year increase of 9.4%, with an EPS of $2.50 compared to $1.88 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 0.65%, while the EPS exceeded the consensus estimate by 10.62% [1] Financial Performance Metrics - Commercial line loss and loss adjustment expense ratio was 58.4%, better than the average estimate of 60.3% [3] - Commercial line expense ratio matched the average estimate at 31.1% [3] - The underlying combined ratio for commercial lines was 87.4%, compared to the average estimate of 88.7% [3] - The combined ratio for commercial lines was 89.8%, better than the average estimate of 91.6% [3] - Net investment income for Property and Casualty was $471 million, slightly below the estimated $476.21 million, but showed a year-over-year increase of 13.5% [3] - Earned premiums for commercial lines were $3.12 billion, below the average estimate of $3.17 billion, reflecting an 8.1% year-over-year increase [3] - Earned premiums for personal lines were $849 million, exceeding the average estimate of $836.37 million, with an 11.7% year-over-year increase [3] - Net investment income for group benefits was $112 million, below the average estimate of $121.24 million, showing a year-over-year decrease of 0.9% [3] - Fee income for personal lines was $8 million, slightly above the average estimate of $7.92 million, representing a 14.3% year-over-year increase [3] - Fee income for commercial lines was $11 million, exceeding the average estimate of $10.50 million, with a 10% year-over-year increase [3] - Earned premiums for group benefits were $1.61 billion, below the average estimate of $1.63 billion, reflecting a 2.2% year-over-year increase [3] - Total earned premiums for Property & Casualty were $3.97 billion, below the average estimate of $4.01 billion, with an 8.9% year-over-year increase [3] Stock Performance - The Hartford's shares returned -0.3% over the past month, matching the Zacks S&P 500 composite's -0.3% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]