The Hartford (HIG) Q3 2024 earnings summary

Executive summary

• Net income available to common stockholders rose 18% year-over-year to $761 million ($2.56 per diluted share) in Q3 2024, with core earnings up 6% to $752 million ($2.53 per diluted share) and ROE of 20.0% for the trailing 12 months.

• Achieved strong premium growth in both Commercial (9%) and Personal Lines (12%), with Group Benefits and Hartford Funds also contributing to revenue gains.

• Book value per diluted share (excluding AOCI) reached $63.17, up 11% year-over-year; total book value per share rose 14% to $56.39.

• Returned $538 million to stockholders in Q3 2024, including $400 million in share repurchases and $138 million in dividends; announced an 11% increase in the quarterly dividend.

Financial highlights

• Q3 2024 earned premiums grew 8% year-over-year to $5.73 billion; P&C net written premiums up 10%, with Commercial Lines up 9% and Personal Lines up 12%.

• Net investment income was $659 million, up 10% year-over-year, with an annualized portfolio yield (excluding alternatives) of 4.5%.

• Commercial Lines combined ratio was 92.2, with an underlying combined ratio of 88.6; Personal Lines combined ratio improved to 102.5, underlying combined ratio at 93.7.

• Group Benefits core earnings margin was 8.7%, with net income margin at 8.8% and persistency above 90%.

• Net realized losses narrowed to $13 million from $90 million in Q3 2023.

Outlook and guidance

• Management expects continued market share gains and highly profitable margins, especially in small commercial and E&S binding, and is on track to achieve a $3 billion full-year property premium target.

• Personal auto margins are expected to reach targets by mid-2025, with strong renewal price increases continuing.

• Group Benefits margins expected to normalize over time, with ongoing focus on disciplined pricing and product innovation.

• Management anticipates continued use of its new $3.3 billion share repurchase authorization through 2026.

• Annualized net investment income yield (excluding alternatives) is expected to remain above 2023 levels due to higher reinvestment rates.