HIG Posts Q4 Earnings Beat on Higher Premiums & Investment Income

Core Insights - The Hartford Insurance Group, Inc. (HIG) reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, exceeding the Zacks Consensus Estimate by 27.9% and reflecting a 38% year-over-year increase [1] - Operating revenues rose 8.9% year over year to $5.2 billion, surpassing the consensus mark by 1.4% [1] Financial Performance - Higher net investment income, favorable prior accident year development (PYD), and lower property and casualty (P&C) catastrophe losses contributed to the financial results [2] - Earned premiums reached $6.1 billion, a 5.7% increase year over year, but fell short of the Zacks Consensus Estimate by 0.3% [3] - Net investment income increased 16.5% year over year to $832 million, exceeding the consensus estimate by 11.9% [3] - Total benefits, losses, and expenses rose 2.1% year over year to $5.9 billion [4] - Pre-tax income climbed 31.6% year over year to $1.4 billion [4] Segment Performance - Business Insurance: Revenues totaled $4.1 billion, a 9.5% increase, with core earnings of $915 million, up 37.6% year over year [5] - Personal Insurance: Revenues amounted to $1 billion, beating the consensus estimate by 2.7%, with core earnings of $214 million, reflecting a 38% year-over-year increase [6] - P&C Other Ops: Revenues improved 5.6% year over year to $19 million, but the segment reported a core loss of $140 million [7] - Employee Benefits: Revenues were $1.8 billion, a 1.6% increase, but core earnings declined 0.7% year over year to $138 million [9] - Hartford Funds: Revenues increased 7.4% year over year to $292 million, with core earnings of $58 million, up 13.7% [10] - Corporate: Revenues were flat at $37 million, with a core loss of $37 million, narrower than the previous year's loss [11] Financial Position - As of December 31, 2025, cash declined 27.3% to $133 million, while total investments increased 8% to $64 billion [12] - Total assets grew 6.3% to $86 billion, and total stockholders' equity improved 15.4% to $19 billion [12] - Book value per share was $66.31, a 20.4% year-over-year increase [13] Capital Deployment - The company returned $546 million to stockholders in Q4 2025, including $400 million in share repurchases and $146 million in dividends [14] - Total capital returned for 2025 amounted to $2.2 billion [14] Full-Year Update - Adjusted operating earnings for 2025 were $13.42 per share, a 30% year-over-year surge, with total revenues of $20 billion [15] - Net earned premiums rose 6.5% year over year to $24 billion, and net investment income increased 13.4% to $2.9 billion [15]