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), 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 Commercial Lines (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 30% to $56.39.

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

• Net investment income grew 10% year-over-year to $659 million, with higher yields and invested assets.

Financial highlights

• P&C net written premiums grew 10% year-over-year, with Commercial Lines up 9% and Personal Lines up 12%.

• Group Benefits fully insured ongoing premiums increased 2% year-over-year, with a core earnings margin of 8.7%.

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

• Commercial Lines combined ratio was 92.2, with an underlying combined ratio of 88.6.

• Personal Lines combined ratio improved to 102.5 from 107.9; underlying combined ratio at 93.7.

Outlook and guidance

• Management expects continued market share gains and highly profitable margins in Commercial and Small Commercial businesses.

• Personal auto margins are on track to reach targets by mid-2025, with renewal written price increases of 20.8%.

• Management highlighted strong capital generation and believes the company is well positioned to sustain industry-leading financial performance.

• Focused on advancing underwriting, digital capabilities, and maximizing distribution to drive profitable growth.

• Hurricane Milton is expected to result in Q4 2024 losses of $65–$110 million, net of reinsurance and before tax.