The Hartford Insurance Group (HIG) Q2 2024 earnings summary

Executive summary

• Net income available to common stockholders rose 35% year-over-year to $733 million ($2.44 per diluted share), with core earnings up 28% to $750 million ($2.50 per diluted share), reflecting strong underwriting, premium growth, and higher investment income.

• P&C written premiums increased 12%, with Commercial Lines up 11% and Personal Lines up 14% year-over-year.

• Group Benefits fully insured ongoing premiums increased 2% year-over-year, with a core earnings margin of 10.0%.

• Board approved a new $3.3 billion share repurchase authorization effective through 2026.

• Returned $981 million to stockholders year-to-date, including $700 million in share repurchases and $281 million in dividends.

Financial highlights

• Book value per diluted share rose 16% year-over-year to $51.43; excluding AOCI, it increased 11% to $61.71.

• Net investment income was $602 million, up 11% year-over-year, with a total annualized portfolio yield of 4.4% (excluding limited partnerships).

• Commercial Lines combined ratio improved to 89.8; Personal Lines combined ratio improved to 107.4; Group Benefits loss ratio improved to 68.9%.

• P&C current accident year catastrophe losses were $280 million, up from $226 million a year ago.

• Net realized investment losses were $59 million, compared to $64 million in the prior year.

Outlook and guidance

• Personal auto expected to return to profitability in 2024, with target margins anticipated by mid-2025.

• Group Benefits expected to outperform long-term margin guidance for the remainder of 2024.

• Management expects continued strong capital and liquidity positions, with flexibility for further share repurchases and dividend payments.

• LP returns expected to increase in the second half of 2024, but full-year LP income to be below 2023 levels.

• Focused on advancing underwriting, digital and data science, and maximizing distribution channels for growth.