The Hartford Financial Services Group, Inc. - HIG STOCK NEWS

The Hartford's Junior Fire Marshal Day on October 5 saw over 65,000 children across 200+ cities participate in a virtual fire safety education event. This initiative, which began in 1947, has educated over 111 million children on fire safety. The event featured lessons on fire prevention and culminated in students becoming Junior Fire Marshals. The Hartford continues to support local fire departments and aims to educate an additional 1.5 million children, donating over $1.5 million to at-risk communities.

The Hartford has announced the creation of The Hartford Scholars Program, committing $1 million to fund 50 students from the City of Hartford to attend UConn Hartford tuition-free for four years. This initiative aims to cover gaps in existing financial aid, providing essential support to first-generation and underrepresented students. The program will be implemented in two phases, supporting 25 students in 2021 and another 25 in 2022. This effort is part of The Hartford's broader commitment to enhance educational access and economic opportunities in the community.

AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to The Hartford Financial Services Group (NYSE: HIG). This rating applies to the recently announced $600 million senior unsecured notes, maturing in September 2051. The funds will be used to redeem existing $600 million junior subordinated debentures due 2042. AM Best foresees a modest increase in financial leverage but maintains that it will stay within acceptable limits for the current ratings, which were affirmed in July 2021.

The Hartford (NYSE: HIG) has reached a new agreement-in-principle in the Boy Scouts of America (BSA) bankruptcy, replacing an earlier $650 million settlement. The new deal involves a payment of $787 million to resolve claims, mainly from policies issued in the 1970s. The BSA and local councils will release The Hartford from any obligations under these policies. A charge of approximately $137 million is expected to impact Q3 2021 earnings. Court approval of the settlement is anticipated in late 2021, subject to certain conditions.

The Hartford has appointed Shahzad Ahmad as head of the Western Division for its Middle and Large Commercial Insurance business. Ahmad will oversee sales and underwriting across 13 states, reporting to Tracey Ant. With over 16 years of experience, including leadership roles in Northern California, he has played a crucial role in the company's growth strategy. Ahmad succeeds Gretchen Thompson, who moves to head Construction and other solutions. The Hartford, a leader in property and casualty insurance, continues to focus on service excellence and market leadership.

The Hartford has appointed Claire Burns as chief marketing and communications officer effective September 1. She succeeds Kathleen Bromage, who will remain in an advisory role. Burns, previously chief marketing officer at Prudential International, brings extensive experience in branding, marketing, and digital transformation. Meanwhile, Bromage has served in various senior leadership roles at The Hartford since 2004, significantly enhancing the company’s digital capabilities and brand reputation. This leadership transition aims to strengthen The Hartford's position in a competitive market.

AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” and the Long-Term Issue Credit Ratings (Long-Term IR) of The Hartford Financial Services Group (HIG). Additionally, the Financial Strength Rating (FSR) of A+ for Hartford Insurance Group has been retained, reflecting its strong balance sheet and operating performance. The ratings outlook is stable, supported by strong capitalization, liquidity, and a diverse investment portfolio. Hartford's successful integration of its 2019 Navigators acquisition and its Hartford Next cost reduction plan further enhance its favorable business profile.

The Hartford reported a robust second quarter for 2021, with net income of $900 million, or $2.51 per diluted share, marking a 94% increase from the previous year. Core earnings reached $836 million, or $2.33 per diluted share, a 91% rise. Despite catastrophe losses of $128 million, the company benefitted from a $149 million reserve development and improved operational efficiencies. The combined ratio for Commercial Lines improved significantly, indicating strong underwriting results. Overall, the company projects continued efficiency gains with estimated pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.