The Hartford (HIG) Q3 2026 earnings summary

Executive summary

• Q3 net income available to common stockholders rose 23% YoY to $1.317B, or $4.82 per diluted share; core earnings fell 6% to $956M, or $3.50 per diluted share.

• Trailing 12-month core earnings ROE was 17.9%; disciplined underwriting supported Business Insurance growth and improving Personal Insurance underlying results.

• Investment income increased 13% to $850M, while higher catastrophe losses, lower Personal Insurance premiums and higher Employee Benefits claims weighed on operating results.

Financial highlights

• Q3 revenue was $7.220B, up 4% YoY; continuing net income increased 24% to $1.262B.

• Net investment income was $850M, up 13% YoY, driven by limited partnership income and higher invested assets; net realized losses were $116M versus $17M.

• Net favorable prior-year development was $594M before tax, including a $497M A&E cover commutation gain excluded from core earnings; core favorable development was $97M.

• P&C current-year catastrophe losses were $198M before tax, versus $70M in Q3 2025.

Outlook and guidance

• Strategic priorities remain focused on profitable growth, disciplined underwriting and investment in technology, data, AI and customer-focused risk insights.

• 2026 net investment income is expected to increase YoY, supported by higher invested assets and yields; results remain subject to market variability.

• Employee Benefits remains a 6%-7% core margin business long term; the Equitable acquisition is expected to be modestly dilutive in 2027, excluding amortization, then improve as it integrates and scales.

• Equitable integration costs are expected at $30-$40M and excluded from core; annual intangible amortization of ~$30M will be included in core earnings.

• Management viewed 2026 workers' compensation frequency as a step change and did not expect another year of elevated frequency in 2027, while noting uncertainty.