The Hartford (HIG) Q4 2025 earnings summary

Executive summary

• Achieved core earnings of $3.8 billion for 2025, up 25% year-over-year, with core EPS of $13.42, a 30% increase from 2024, and core earnings ROE of 19.4%.

• Net income rose 23% to $3.8 billion, and book value per diluted share (ex. AOCI) increased 13% to $73.62.

• Returned $2.2 billion to stockholders through $1.6 billion in share repurchases and $592 million in dividends.

• Strong performance was driven by Business Insurance, improved Personal Insurance profitability, robust Employee Benefits margins, and solid investment returns.

• Investments in AI and digital platforms are driving operational efficiencies and improved customer experiences.

Financial highlights

• Q4 core earnings were $1.1 billion ($4.06 per diluted share), up 33% year-over-year.

• Net investment income for Q4 was $832 million, up 17% year-over-year; full year net investment income was $2.9 billion, up 13%.

• Book value per diluted share (ex. AOCI) at year-end was $73.62, up 13% from prior year.

• Business Insurance written premiums grew 8% to $14.5 billion in 2025, with a combined ratio of 88.3.

• Personal Insurance written premiums rose 4% to $3.7 billion, with a combined ratio of 91.9.

Outlook and guidance

• Expect continued growth in business insurance, especially in SME and property, with property premiums targeted to grow to $3.6–$3.7 billion in 2026.

• Net investment income projected to increase in 2026, supported by higher invested assets and improved LP returns.

• Quarterly share repurchases to increase to $450 million, with $1.55 billion authorization through 2026.

• Personal insurance aims for policy count growth in agency channel, with pricing increases moderating in 2026.

• For 2026, expects net P&C dividends of $2.2 billion, Employee Benefits dividends of $580 million, and Hartford Funds dividends of $170 million.