Financial Data and Key Metrics Changes - The Hartford reported Core Earnings of $3.8 billion for 2025, with a Core Earnings ROE of 19.4% [5][15] - Core earnings for Q4 2025 were $1.1 billion, or $4.06 per diluted share [15] - The business insurance segment achieved written premium growth of 7% with an underlying combined ratio of 88.1 [15] - The overall expense ratio for business insurance increased to 31.8, up 1 point from the prior year [16] Business Line Data and Key Metrics Changes - Business insurance delivered top-line growth of 8%, with small business written premium of $6 billion and an underlying combined ratio of 88.9 [4][8] - Personal insurance core earnings were $214 million, with an underlying combined ratio of 84.3, improving by 5.9 points [17] - Employee benefits reported a Core Earnings margin of 8.2%, driven by strong life and disability results [4][12] Market Data and Key Metrics Changes - Business insurance renewal written pricing, excluding workers' compensation, was 6.1% for the quarter [10] - The Hartford's small business segment was ranked number one for digital capabilities by Keynova Group, with a double-digit lead in all categories [8] - The investment portfolio generated net investment income of $832 million, a 17% increase from Q4 2024 [22] Company Strategy and Development Direction - The Hartford is focusing on technology and innovation, with a multi-year journey towards an AI-first mindset [6] - The company aims to sustain industry-leading ROEs through disciplined underwriting and risk selection, particularly in the SME segment [10][14] - The Hartford is expanding its presence in the under 500 lives segment within employee benefits, with a focus on enhancing product offerings [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture additional market share while maintaining strong profitability in small business [8] - The company anticipates continued growth in personal insurance, particularly in the agency channel, while facing challenges in the direct channel [11] - Management remains optimistic about the economic outlook and the potential for growth in 2026, despite some pressures in the property market [44][74] Other Important Information - The Hartford completed its A&E reserve study, resulting in an increase in reserves of $165 million, primarily for asbestos and environmental claims [18] - The company renewed its catastrophe cover with favorable terms, enhancing capital strength and supporting growth in property underwriting [20] Q&A Session Summary Question: How long can favorable renewal premium changes in small business be sustained? - Management believes the small business segment can continue to grow at healthy levels due to strong relationships with agents and brokers, and a differentiated market position [28][30] Question: What is the outlook for the Prevail platform? - The Prevail platform is expected to grow significantly, with plans to expand to 30 states by early 2027, focusing on new business in both direct and agency channels [33][36] Question: Why is the buyback pace not increased in line with dividend increases? - Management indicated a balanced approach to share buybacks and dividends, considering overall capital flexibility and market conditions [39][40] Question: What is the outlook for business insurance margins in 2026? - Management refrained from providing specific numbers but emphasized a strong starting position and a disciplined approach to underwriting [42][44] Question: How will technology impact the expense ratio in a soft market? - Management is optimistic about capturing market share and believes that technology investments will lead to improved expense ratios over time [49][50]

Financial Data and Key Metrics Changes - The company reported core income of $2.5 billion for Q4 2025, or $11.13 per diluted share, with a core return on equity of 29.6% [6][21] - Full-year core income increased by 26% to $6.3 billion, with a core return on equity of 19.4% [21][24] - Underwriting income for Q4 was $2.2 billion, a 21% increase compared to the prior year quarter, driven by strong net earned premiums and improved margins [7][24] - The underlying combined ratio improved to 82.2%, marking the fifth consecutive quarter below 85 [24] Business Line Data and Key Metrics Changes - Business Insurance net written premiums reached $5.5 billion, with a renewal premium change of 6.1% [9][38] - Bond and Specialty Insurance net written premiums grew to $1.1 billion, with retention at 87% [10][48] - Personal Insurance net written premiums were $4.2 billion, reflecting strong renewal premium change in homeowners and higher new business in auto [11][54] Market Data and Key Metrics Changes - The company grew net written premiums to $10.9 billion in Q4 2025, with disciplined execution across all segments [9] - The investment portfolio increased by approximately $7.5 billion to $106 billion, with after-tax net investment income of $867 million, up 10% from the prior year [8][28] Company Strategy and Development Direction - The company is transitioning to Innovation 2.0, leveraging AI and advanced technology to enhance underwriting, claims processing, and overall operational efficiency [15][18] - The focus remains on maintaining strong underwriting income and profitability while investing in technology to drive future growth [12][20] - The company aims to balance its portfolio between auto and property, with a strategic emphasis on risk selection and pricing [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate substantial shareholder value and maintain strong performance in 2026 and beyond [22][21] - The company is well-positioned to handle future challenges, including regulatory scrutiny and market dynamics, while continuing to invest in technology and innovation [71][73] Other Important Information - The company returned $1.9 billion of capital to shareholders in Q4, including $1.7 billion in share repurchases [8][34] - Adjusted book value per share increased by 14% year-over-year to $158.01 [33] Q&A Session Summary Question: Insights on technology investments and expense ratio - Management acknowledged the importance of optimizing operating leverage and indicated that efficiency gains from technology investments may not immediately reflect in the expense ratio [68][70] Question: Regulatory focus on profitability in Personal Insurance - Management highlighted that while profitability is a concern, the company has historically managed to maintain a balanced approach to pricing and risk [72][74] Question: Deceleration in renewal premium change in Business Insurance - Management noted that the deceleration is due to a combination of rate and exposure factors, with both playing a role in the overall change [76][78] Question: Overall rate adequacy in national property - Management indicated that while pricing dynamics are challenging, they believe the profitability of the business justifies current rates [80][81] Question: Capital return strategy and future buybacks - Management confirmed that while they expect higher buybacks in Q1, future buybacks will depend on various factors including catastrophe losses and overall profitability [82][85] Question: Catastrophe losses expectations for 2026 - Management clarified that the attachment point of their catastrophe treaty provides a buffer, and they do not expect significant drag on premium growth from ceded premiums [87][89] Question: Technology initiatives and headcount growth - Management refrained from providing specific headcount projections but noted that premium per employee is expected to continue increasing due to productivity initiatives [92] Question: Pricing trends in casualty commercial lines - Management reported that general liability pricing is in the mid-single digits, while umbrella lines are experiencing double-digit renewal premium changes [94]

Financial Data and Key Metrics Changes - The company reported core income of $2.5 billion for Q4 2025, or $11.13 per diluted share, with a core return on equity of 29.6% [4] - Full-year core income increased by 26% to $6.3 billion, with a core return on equity of 19.4% [13] - Underwriting income for Q4 was $2.2 billion pre-tax, a 21% increase compared to the prior year quarter, with an underlying combined ratio improving to 82.2% [4][15] Business Line Data and Key Metrics Changes - Business Insurance net written premiums reached $5.5 billion, with a renewal premium change of 6.1% [5][25] - Bond and Specialty Insurance grew net written premiums to $1.1 billion, with retention at 87% [6][32] - Personal Insurance net written premiums were $4.2 billion, reflecting strong renewal premium change in homeowners and higher new business in auto [7][36] Market Data and Key Metrics Changes - The company grew net written premiums to $10.9 billion in Q4 2025, driven by disciplined execution across all segments [5] - The underlying combined ratio for Business Insurance was 87%, with a strong retention rate of 85% [24][27] - The overall market environment remains competitive, with pricing dynamics reflecting profitability in the property line [51] Company Strategy and Development Direction - The company is transitioning to Innovation 2.0, leveraging AI and advanced technology to enhance underwriting and operational efficiency [9][10] - Strategic investments in technology exceeded $1.5 billion, focusing on automation and data analytics to improve risk assessment and customer service [13][34] - The company aims to maintain a balance between auto and property lines while optimizing risk return profiles [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of strong underlying business performance, expecting continued substantial shareholder value generation [14] - The company anticipates a stable expense ratio of around 28.5% for 2026, reflecting ongoing efficiency gains [15][22] - Management acknowledged regulatory scrutiny on profitability but emphasized the importance of fair pricing and risk management over time [49] Other Important Information - The company returned $1.9 billion of capital to shareholders in Q4, including $1.7 billion in share repurchases [5][22] - The investment portfolio grew to $106 billion, with after-tax net investment income of $867 million for the quarter, up 10% [5][17] - Catastrophe losses for Q4 were $95 million pre-tax, with favorable prior year reserve development contributing positively [16][17] Q&A Session Summary Question: Inquiry about technology investments and expense ratio - Management indicated that the expense ratio is managed and that efficiency gains from technology investments provide flexibility in operations [45][46] Question: Concerns about regulatory pushback on profitability - Management acknowledged the importance of affordability and clarified that recent profitability levels are not indicative of over-earning [49] Question: Clarification on renewal premium change in Business Insurance - Management noted that the deceleration in renewal premium change is due to both rate and exposure factors [50][51] Question: Discussion on capital return strategy - Management confirmed no change in capital management strategy and emphasized responsible capital distribution based on profitability and growth environment [54] Question: Expectations for catastrophe losses in 2026 - Management explained that the attachment point of the treaty provides tail protection and that the year-over-year impact of ceded premium is not expected to be significant [57]