The Hartford (HIG) Q4 2024 earnings summary

Executive summary

• Full year 2024 core earnings were $3.1 billion, up 11% year-over-year, with net income also at $3.1 billion, up 24% year-over-year.

• Fourth quarter 2024 core earnings were $865 million ($2.94 per diluted share), down 7% year-over-year; net income was $848 million ($2.88 per diluted share), up 11% year-over-year.

• Returned $2.1 billion to stockholders in 2024, including $1.5 billion in share repurchases and $556 million in dividends.

• Strong underwriting execution and risk management drove robust profitability and capital efficiency across all business segments.

• Commercial Lines and Personal Lines delivered improved combined ratios, while Group Benefits maintained robust margins.

Financial highlights

• Book value per diluted share (excluding AOCI) rose 10% to $64.95 at year-end 2024.

• Net investment income for Q4 2024 was $714 million, up from $653 million in Q4 2023; full year net investment income was $2.6 billion.

• P&C written premiums grew 7% in Q4 and 10% for the year, driven by Commercial Lines (+6% Q4, +9% year) and Personal Lines (+12% Q4, +13% year).

• Core earnings ROE for 2024 was 16.7%, and net income ROE was 19.9%.

• 4Q24 EPS (core) was $2.94, and full year EPS (core) was $10.30.

Outlook and guidance

• Management expects to sustain profitable growth and industry-leading ROEs in 2025, with Commercial Lines targeting sub-90 underlying combined ratios and robust growth.

• Personal Lines auto underlying combined ratio is targeted to reach the mid-90s in 2025, with continued improvement.

• Group Benefits core earnings margin expected in the 6%-7% range, with disability incidence trends returning to historical averages.

• Net investment income (excluding LPs) anticipated to be higher in 2025, driven by increased invested assets and higher yields.

• Expects FY25 holding company resources from dividends totaling ~$2.44 billion, with continued share repurchases under a $3.3 billion program through 2026.