The Hartford(US:HIG) ZACKSยท2025-04-25 16:55Core Insights - The Hartford Insurance Group, Inc. (HIG) reported first-quarter 2025 adjusted operating earnings of $2.20 per share, exceeding the Zacks Consensus Estimate of $2.13, but reflecting a 6% year-over-year decline [1] - Total revenues for HIG reached $6.8 billion, up from $6.4 billion in the prior year, driven by increased earned premiums and investment income [1] Financial Performance - Quarterly earnings benefited from improved performance in Employee Benefits and Hartford Funds, although higher expenses partially offset these gains [2] - Earned premiums rose 7.1% year over year to $5.8 billion, but fell short of the Zacks Consensus Estimate by 1.1%, with Business Insurance and Employee Benefits contributing to the growth [3] - Pre-tax net investment income increased by 10.6% year over year to $656 million, although it missed the consensus mark by 7.5% [4] - Total benefits, losses, and expenses rose 9.4% year over year to $6 billion, primarily due to higher claims and operating expenses [5] Segment Analysis - Business Insurance: Revenues increased 8.3% year over year to $3.7 billion, but core earnings declined 14% to $471 million due to rising expenses [6] - Personal Insurance: Revenues improved 10.2% year over year to $982 million, but core earnings dropped significantly from $33 million to $6 million due to increased costs, particularly from the California Wildfire Event [7] - Employee Benefits: Revenues rose 2.1% year over year to $1.79 billion, with core earnings increasing 27% to $136 million, aided by a low group disability loss ratio [8] - Hartford Funds: Revenues reached $264 million, a 1.9% year-over-year increase, but missed the consensus estimate by 3.7%. Core earnings improved 7% to $44 million [9] - Corporate: Revenues plummeted 80% year over year to $7 million, with a core loss of $31 million, wider than the previous year's loss [10] Financial Position - As of March 31, 2025, HIG had cash of $138 million, down from $183 million at the end of 2024. Total investments rose to $60.1 billion from $59.2 billion [11] - Total assets increased to $82.3 billion from $80.9 billion, while debt slightly rose to $4.4 billion [11] - Stockholders' equity improved to $16.8 billion from $16.4 billion, with book value per share rising to $57.07 from $55.09 [12] Capital Deployment - HIG returned $550 million to shareholders through share buybacks of $400 million and dividends of $150 million, with a remaining buyback capacity of $2.75 billion as of March 31, 2025 [13]