The Hartford Insurance Group (HIG) Q4 2024 earnings summary

Executive summary

• Full year 2024 core earnings were $3.1 billion, up 11% year-over-year, and net income was $3.1 billion, up 24% year-over-year, reflecting strong underwriting, top-line growth, and strategic achievements across all business segments.

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

• Maintained strong underwriting discipline and risk management, with a focus on profitable growth and capital efficiency.

• Commercial Lines and Personal Lines delivered significant profitability improvements, with Group Benefits maintaining robust margins.

• Investment income remained strong, supporting capital management and shareholder returns.

Financial highlights

• Q4 2024 core earnings were $865 million ($2.94 per diluted share); full year core earnings ROE was 16.7%.

• 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, with a portfolio yield of 4.6% (excluding LPs); 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%.

Outlook and guidance

• Commercial Lines expected to maintain consistent underlying combined ratios in 2025, with pricing actions to offset elevated loss cost trends.

• Personal Lines auto underlying combined ratio targeted to reach mid-90s in 2025, driven by prior rate actions and moderating severity.

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

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

• Management expects to sustain momentum and deliver profitable growth at industry-leading ROEs in 2025 and beyond.