Workflow
Hartford Financial Q3 Earnings Beat on Personal Lines Growth
HIGThe Hartford(HIG) ZACKS·2024-10-25 17:26

Core Insights - Hartford Financial Services Group, Inc. (HIG) reported third-quarter 2024 adjusted operating earnings of 2.53pershare,exceedingtheZacksConsensusEstimateby1.62.53 per share, exceeding the Zacks Consensus Estimate by 1.6% and reflecting a year-over-year increase of 10.5% [1] - Operating revenues reached 4.7 billion, marking a 10.9% year-over-year improvement and beating the consensus mark by 1.1% [1] Q3 Operations - Earned premiums rose 8% year over year to 5.7billionbutfellshortoftheZacksConsensusEstimateby0.45.7 billion but fell short of the Zacks Consensus Estimate by 0.4%, driven by increases in P&C and Group Benefits earned premiums [2] - Pre-tax net investment income grew 10% year over year to 659 million, surpassing the consensus mark by 5.9% [2] - Total benefits, losses, and expenses increased 8.3% year over year to 5.8 billion, attributed to higher claims and operating expenses [2] Segmental Update P&C - Commercial Lines revenues were 3.7 billion, up 10.6% year over year, beating the consensus estimate by 2.2%, while core earnings declined 1.5% due to higher catastrophe losses [4] - Personal Lines revenues improved 13.7% year over year to 971million,exceedingtheconsensusestimateby3.3971 million, exceeding the consensus estimate by 3.3%, with core earnings of 33 million [5] - Group Benefits revenues grew 3.2% year over year to 1.8billionbutmissedtheconsensusestimateby0.91.8 billion but missed the consensus estimate by 0.9%, with core earnings declining 9.4% [7] Hartford Funds - Revenues reached 275 million, a 10.9% year-over-year increase, beating the consensus estimate by 5.5%, with core earnings improving 4.4% to 47million[8]Corporate−Corporaterevenuessurged223.147 million [8] Corporate - Corporate revenues surged 223.1% year over year to 42 million, significantly exceeding the consensus estimate, although the segment incurred a core loss of 26million[9]FinancialUpdate(asofSept.30,2024)−Cashincreasedto26 million [9] Financial Update (as of Sept. 30, 2024) - Cash increased to 223 million from 126millionattheendof2023,whiletotalinvestmentsroseto126 million at the end of 2023, while total investments rose to 59.4 billion from 55.9billion[10]−Totalassetsgrewto55.9 billion [10] - Total assets grew to 81.2 billion from 76.8billion,andtotalstockholders′equityimprovedto76.8 billion, and total stockholders' equity improved to 17 billion from 15.3billion[10]−Bookvaluepershareincreasedto15.3 billion [10] - Book value per share increased to 56.39 from 50.23,withcoreearnings′returnonequityimproving250bpsyearoveryearto17.450.23, with core earnings' return on equity improving 250 bps year over year to 17.4% [10] Capital Deployment Update - Hartford Financial returned 538 million to shareholders through share buybacks and dividends, with an increase in quarterly common dividend by 11% [11]