The Hartford Announces Outstanding Second Quarter 2024 Financial Performance
The Hartford (NYSE: HIG) reported outstanding second quarter 2024 financial results, with net income available to common stockholders of $733 million ($2.44 per diluted share), a 35% increase from the same period in 2023. Core earnings rose 28% to $750 million ($2.50 per diluted share). The company achieved a net income ROE of 19.8% and a core earnings ROE of 17.4%.
Key highlights include:
- Property & Casualty written premiums up 12%
- Commercial Lines combined ratio of 89.8
- Group Benefits net income margin of 9.7%
- New $3.3 billion share repurchase program authorized
The Hartford's strong performance reflects its effective strategy and ongoing investments to differentiate itself in the marketplace.
Hartford (NYSE: HIG) ha riportato risultati finanziari straordinari per il secondo trimestre del 2024, con un utile netto disponibile per gli azionisti comuni di 733 milioni di dollari (2,44 dollari per azione diluita), un aumento del 35% rispetto allo stesso periodo del 2023. Gli utili core sono aumentati del 28% a 750 milioni di dollari (2,50 dollari per azione diluita). L'azienda ha raggiunto un ROE netto del 19,8% e un ROE degli utili core del 17,4%.
I punti salienti includono:
- Premi riservati a Proprietà e Infortuni aumentati del 12%
- Rapporto combinato delle Linee Commerciali di 89,8
- Margine di utile netto dei Benefici di Gruppo del 9,7%
- Nuovo programma di riacquisto di azioni da 3,3 miliardi di dollari autorizzato
Le forti performance di Hartford riflettono la sua strategia efficace e i continui investimenti per distinguersi nel mercato.
Hartford (NYSE: HIG) reportó resultados financieros excepcionales para el segundo trimestre de 2024, con un ingreso neto disponible para los accionistas comunes de 733 millones de dólares (2.44 dólares por acción diluida), un aumento del 35% en comparación con el mismo período de 2023. Las ganancias básicas crecieron un 28% a 750 millones de dólares (2.50 dólares por acción diluida). La compañía logró un ROE neto del 19.8% y un ROE de ganancias básicas del 17.4%.
Los puntos destacados incluyen:
- Las primas escritas de Propiedad y Accidentes aumentaron un 12%
- Ratio combinado de Líneas Comerciales de 89.8
- Margen de ingreso neto de Beneficios de Grupo del 9.7%
- Nuevo programa de recompra de acciones por 3.3 mil millones de dólares autorizado
El sólido desempeño de Hartford refleja su estrategia efectiva y las inversiones continuas para diferenciarse en el mercado.
하트포드(Hartford, NYSE: HIG)는 2024년 2분기 뛰어난 재무 실적을 보고했으며, 보통주 주주에게 제공 가능한 순익은 7억 3천 3백만 달러(희석 주당 2.44달러)로 2023년 같은 기간에 비해 35% 증가했습니다. 핵심 수익은 28% 증가하여 7억 5천만 달러(희석 주당 2.50달러)에 달했습니다. 이 회사는 순익 ROE가 19.8% 및 핵심 수익 ROE가 17.4%를 달성했습니다.
주요 하이라이트는 다음과 같습니다:
- 재산 및 사고 보험의 인수 보험료가 12% 증가
- 상업 라인의 결합 비율이 89.8
- 그룹 보험의 순익 마진이 9.7%
- 신규 33억 달러 주식 재매입 프로그램 승인
하트포드의 강력한 실적은 시장에서의 차별화 전략과 지속적인 투자 덕분입니다.
Hartford (NYSE: HIG) a rapporté des résultats financiers exceptionnels pour le deuxième trimestre 2024, avec un bénéfice net disponible pour les actionnaires ordinaires de 733 millions de dollars (2,44 dollars par action diluée), soit une augmentation de 35 % par rapport à la même période en 2023. Le résultat core a augmenté de 28 % pour atteindre 750 millions de dollars (2,50 dollars par action diluée). L'entreprise a atteint un ROE net de 19,8 % et un ROE de résultat core de 17,4 %.
Les points clés incluent :
- Les primes d'assurance dommages et accidents ont augmenté de 12 %
- Ratio combiné des lignes commerciales de 89,8
- Marge de bénéfice net des avantages collectifs de 9,7 %
- Un nouveau programme de rachat d'actions de 3,3 milliards de dollars a été autorisé
Les performances solides de Hartford reflètent sa stratégie efficace et ses investissements continus pour se différencier sur le marché.
Hartford (NYSE: HIG) berichtete über herausragende Finanzergebnisse für das zweite Quartal 2024, mit einem Nettogewinn von 733 Millionen Dollar (2,44 Dollar pro verwässerter Aktie), was einem Anstieg von 35 % im Vergleich zum gleichen Zeitraum 2023 entspricht. Die Kerngewinne stiegen um 28 % auf 750 Millionen Dollar (2,50 Dollar pro verwässerter Aktie). Das Unternehmen erzielte eine Nettogewinn-ROE von 19,8 % und eine Kerngewinn-ROE von 17,4 %.
Zu den wichtigsten Highlights gehören:
- Die Beiträge aus der Sach- und Unfallversicherung stiegen um 12 %
- Die kombinierte Quote der gewerblichen Linien beträgt 89,8
- Die Nettogewinnmarge der Gruppenleistungen beträgt 9,7 %
- Neues Aktienrückkaufprogramm über 3,3 Milliarden Dollar genehmigt
Die starke Leistung von Hartford spiegelt seine effektive Strategie und fortlaufenden Investitionen wider, um sich im Markt zu differenzieren.
- Net income available to common stockholders increased 35% to $733 million
- Core earnings rose 28% to $750 million
- Net income ROE of 19.8% and core earnings ROE of 17.4%
- Property & Casualty written premiums up 12%
- Commercial Lines combined ratio improved to 89.8
- Group Benefits net income margin increased to 9.7%
- Board authorized a new $3.3 billion share repurchase program
- Personal Lines segment reported a net loss of $11 million, though improved from a $60 million loss in the previous year
- Hartford Funds segment experienced net outflows of $1.085 billion
Insights
The Hartford's Q2 2024 results demonstrate exceptional financial performance across key metrics. Net income available to common stockholders surged
The Property & Casualty segment showed strong growth, with written premiums up
Group Benefits also performed well, with core earnings increasing
The company's investment portfolio yielded solid results, with net investment income rising
Perhaps most significantly for investors, the Board authorized a new
Overall, these results indicate The Hartford is executing well across its business lines, maintaining profitability while achieving growth in a challenging market environment.
The Hartford's Q2 results reveal several key trends in the insurance industry:
- Pricing power: Commercial Lines achieved renewal written price increases of
9.5% excluding workers' compensation, outpacing loss cost trends. This demonstrates the company's ability to push through rate increases in a hardening market. - Personal Lines challenges: While still posting a loss, the significant improvement in Personal Lines' combined ratio (from
114.9% to107.4% ) reflects the industry-wide push to address profitability issues in this segment. The23.5% renewal price increase in auto is particularly notable. - Catastrophe losses: CAY CAT losses of
$280 million (7.1% of the combined ratio) highlight the ongoing impact of severe weather events on insurers' results. - Group Benefits strength: The
10% core earnings margin in this segment is impressive, particularly given the competitive nature of the employee benefits market. - Investment yield improvements: The increase in annualized investment yield to
4.1% reflects the broader trend of insurers benefiting from higher interest rates in their investment portfolios.
These results suggest that The Hartford is successfully navigating current industry challenges while capitalizing on market opportunities, particularly in Commercial Lines and Group Benefits.
The Hartford's Q2 2024 results offer valuable insights into broader market trends:
1. Economic resilience: The strong performance across Commercial Lines suggests continued economic activity and business confidence, despite concerns about a potential recession.
2. Inflation impact: The need for significant price increases, particularly in Personal Lines (auto up
3. Labor market dynamics: The Group Benefits segment's strong performance, with a
4. Catastrophe trends: The increase in catastrophe losses (
5. Investment environment: The improvement in investment yield to
6. Capital management: The new
These trends indicate a complex but generally favorable operating environment for well-positioned insurers, with opportunities for growth and profitability improvement despite ongoing challenges from inflation and catastrophe losses.
Board Authorized New
-
Second quarter 2024 net income available to common stockholders of
$733 million $2.44 35% from$542 million $1.73 $750 million $2.50 28% from$588 million $1.88 -
Net income ROE of
19.8% and core earnings ROE* of17.4% . -
Property & Casualty (P&C) written premiums rose
12% in second quarter 2024, driven by Commercial Lines and Personal Lines premium growth of11% and14% , respectively. - Commercial Lines second quarter combined ratio of 89.8 and underlying combined ratio* of 87.4.
-
P&C current accident year (CAY) catastrophe (CAT) losses in second quarter 2024 of
$280 million $226 million -
Group Benefits second quarter net income margin of
9.7% and core earnings margin* of10.0% . -
Board of Directors authorized a new
$3.3 billion
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures.
** All amounts and percentages set forth in this news release are approximate unless otherwise noted.
“The Hartford’s second quarter 2024 financial results were outstanding with a trailing 12-month core earnings ROE of 17.4 percent,” said The Hartford’s Chairman and CEO Christopher Swift. “Commercial Lines maintained robust top-line growth at highly profitable margins. Personal Lines continues to make great strides towards restoring target profitability in auto and Group Benefits achieved a stellar 10 percent core earnings margin during the quarter.”
The
Swift continued, “The excellent financial performance in the first half of 2024 reflects the effectiveness of our strategy and on-going investments to differentiate The
CONSOLIDATED RESULTS:
|
Three Months Ended |
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($ in millions except per share data) |
Jun 30
|
Jun 30
|
Change |
Net income available to common stockholders |
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Net income available to common stockholders per diluted share1 |
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|
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Core earnings |
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Core earnings per diluted share |
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Book value per diluted share |
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|
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Book value per diluted share (ex. accumulated other comprehensive income (AOCI))2 |
|
|
|
|
|
|
|
Net income available to common stockholders' return on equity (ROE)3, last 12-months |
|
|
5.4 |
Core earnings ROE3, last 12-months |
|
|
3.8 |
| [1] Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends |
| [2] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures |
| [3] Return on equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders’ equity including AOCI; for core earnings ROE, the denominator is common stockholders’ equity excluding AOCI |
Second quarter 2024 net income available to common stockholders of
Second quarter 2024 core earnings of
-
An increase in earnings generated by
9% growth in P&C earned premium. -
Net favorable prior accident year development (PYD) in core earnings of
$78 million $39 million - Commercial Lines loss and loss adjustment expense ratio of 58.4 improved 1.3 points compared with 59.7 in second quarter 2023, including 1.3 points of more favorable PYD and 0.7 points of higher CATs. Underlying loss and loss adjustment expense ratio* of 56.1 compared with 56.8 in second quarter 2023, with the improvement largely due to lower non-CAT property losses.
- Personal Lines loss and loss adjustment expense ratio of 81.0 improved 8.2 points compared with 89.2 in second quarter 2023, including 3.6 points of more favorable PYD and 1.1 points of higher CATs. Underlying loss and loss adjustment expense ratio of 70.3 compared with 76.1 in second quarter 2023, with the improvement largely due to the impact of earned pricing increases, partially offset by an increase in severity in auto and homeowners as expected.
-
P&C CAY CAT losses of
$280 million $226 million -
Group Benefits loss ratio of 68.9 improved 3.2 points compared with 72.1 due to lower claim severity in group life, lower long-term disability claim incidence and a higher
New York paid family leave risk adjustment benefit, partially offset by a higher loss ratio in paid family and medical leave products. -
Net investment income of
$602 million $540 million
June 30, 2024, book value per diluted share of
Book value per diluted share (excluding AOCI) of
Net income available to common stockholders' ROE (net income ROE) for the 12-month period ending June 30, 2024, was
Core earnings ROE for the 12-month period ending June 30, 2024, was
BUSINESS RESULTS:
Commercial Lines
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net income |
|
|
|
Core earnings |
|
|
|
Written premiums |
|
|
|
Underwriting gain1 |
|
|
|
Underlying underwriting gain1 |
|
|
|
Losses and loss adjustment expense ratio |
|
|
|
Current accident year before catastrophes |
56.1 |
56.8 |
(0.7) |
Current accident year catastrophes |
5.0 |
4.3 |
0.7 |
Favorable prior accident year development |
(2.6) |
(1.3) |
(1.3) |
Expenses |
31.1 |
31.3 |
(0.2) |
Policyholder dividends |
0.3 |
0.2 |
0.1 |
Combined ratio |
89.8 |
91.2 |
(1.4) |
Impact of catastrophes and PYD on combined ratio |
(2.4) |
(3.0) |
0.6 |
Underlying combined ratio |
87.4 |
88.3 |
(0.9) |
| [1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures |
Second quarter 2024 net income of
Commercial Lines core earnings of
-
8% growth in earned premium. -
Net investment income of
$402 million $364 million - An underlying loss and loss adjustment expense ratio of 56.1, in second quarter 2024 compared with 56.8 in second quarter 2023, with the improvement primarily driven by lower non-CAT property losses.
-
Net favorable PYD within core earnings of
$44 million $38 million -
CAY CAT losses of
$155 million the United States , but concentrated in the South and Midwest, up from CAY CAT losses of$123 million
Combined ratio of 89.8 in second quarter 2024, improved from 91.2 in second quarter 2023, primarily due to a 1.3 point improvement in the loss and loss adjustment expense ratio, including 1.3 points of more favorable PYD (including 1.2 points of favorable development related to the amortization of the deferred gain) partially offset by 0.7 points of higher CAY CAT losses. Underlying combined ratio of 87.4 improved from 88.3 in second quarter 2023 primarily due to a 0.7 point decrease in the underlying loss and loss adjustment expense ratio.
- Small Commercial combined ratio of 88.7 improved from 90.8 in second quarter 2023, including 0.3 points of less favorable PYD and 0.4 points of higher CAY CATs. Underlying combined ratio of 86.8 compared with 89.7 in second quarter 2023 primarily due to lower non-CAT property losses.
- Middle & Large Commercial combined ratio of 95.9 compared with 93.6 in second quarter 2023, driven by 1.0 points of higher CAY CATs and 0.3 points of more unfavorable PYD. Underlying combined ratio of 89.6 compared with 88.7 in second quarter 2023, primarily due to higher non-CAT property losses compared with a favorable non-CAT experience in the prior year, partially offset by a lower expense ratio.
- Global Specialty combined ratio of 83.4 compared with 87.3 in second quarter 2023, driven by 5.0 points of more favorable PYD, partially offset by 0.9 points of higher CAY CATs. The combined ratio included 4.4 points of favorable development due to the amortization of the deferred gain related to the Navigators ADC. Underlying combined ratio of 85.2 compared with 85.0 in second quarter 2023.
Second quarter 2024 written premiums of
Personal Lines
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net loss |
( |
|
|
Core loss |
( |
|
|
Written premiums |
|
|
|
Underwriting loss |
|
|
|
Underlying underwriting gain (loss) |
|
|
NM |
Losses and loss adjustment expense ratio |
|
|
|
Current accident year before catastrophes |
70.3 |
76.1 |
(5.8) |
Current accident year catastrophes |
14.7 |
13.6 |
1.1 |
Favorable prior accident year development |
(4.0) |
(0.4) |
(3.6) |
Expenses |
26.4 |
25.7 |
0.7 |
Combined ratio |
107.4 |
114.9 |
(7.5) |
Impact of catastrophes and PYD on combined ratio |
(10.7) |
(13.2) |
2.5 |
Underlying combined ratio |
96.7 |
101.7 |
(5.0) |
Net loss of
Personal Lines core loss of
-
12% growth in earned premium. - An underlying loss and loss adjustment expense ratio of 70.3 in second quarter 2024 improved from 76.1 in second quarter 2023, primarily driven by the impact of earned pricing increases, partially offset by an increase in severity in auto and homeowners as expected.
-
$34 million $3 million -
Net investment income of
$50 million $34 million -
CAY CAT losses of
$125 million the United States , but concentrated in the South and Midwest, up from$103 million
Combined ratio of 107.4 in second quarter 2024, improved from 114.9 in second quarter 2023, primarily due to an 8.2 point improvement in the loss and loss adjustment expense ratio, including 3.6 points of more favorable PYD and a 5.8 point improvement in the underlying loss and loss adjustment expense ratio, partially offset by 1.1 points of higher CAY CAT losses. Underlying combined ratio of 96.7 improved from 101.7 in second quarter 2023, primarily due to improvement in the underlying loss and loss adjustment expense ratio in auto and homeowners, partially offset by a 0.7 point increase in the expense ratio, largely driven by higher marketing expenses.
- Auto combined ratio of 105.4 improved from 116.4 in second quarter 2023. The underlying combined ratio of 104.9 improved from 111.8 in second quarter 2023, primarily due to the impact of double-digit earned pricing increases, partially offset by higher marketing expenses and an increase in auto liability and physical damage claim severity as expected.
- Homeowners combined ratio of 114.5 improved from 115.1 in second quarter 2023. The underlying combined ratio of 77.8 improved from 79.6 in second quarter 2023, primarily due to the impact of double-digit earned pricing and favorable weather and non-weather frequency, partially offset by higher marketing expenses and elevated weather and non-weather severity.
Written premiums in second quarter 2024 were
-
Renewal written price increases in auto and homeowners of
23.5% and14.9% , respectively, in response to elevated loss cost trends. -
An increase in new business in both auto and homeowners from second quarter 2023 of
$30 million 58% , and$25 million 114% , respectively. - Lower effective policy count retention, driven by auto, due to renewal written price increases.
Group Benefits
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net income |
|
|
|
Core earnings |
|
|
|
Fully insured ongoing premiums |
|
|
|
Loss ratio |
|
|
(3.2) |
Expense ratio |
|
|
(0.1) |
Net income margin |
|
|
2.7 |
Core earnings margin |
|
|
2.4 |
Net income of
Fully insured ongoing premiums were up
Loss ratio of 68.9 improved from 72.1 in second quarter 2023.
- Group life loss ratio of 74.9 improved 9.2 points largely driven by lower claim severity experience.
-
Group disability loss ratio of 67.1 was essentially flat with second quarter 2023, driven by lower long-term disability claim incidence and a higher
New York paid family leave risk adjustment benefit, offset primarily by a higher loss ratio in paid family and medical leave products.
Net investment income of
Hartford Funds
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net income |
|
|
(2)% |
Core earnings |
|
|
(2)% |
Daily average Hartford Funds AUM |
|
|
|
Mutual Funds and exchange-traded funds (ETF) net flows |
|
|
|
Total Hartford Funds AUM |
|
|
|
Second quarter 2024 net income of
Core earnings of
Daily average AUM of
Mutual fund and ETF net outflows totaled
Corporate
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net loss |
|
|
|
Net loss available to common stockholders |
|
|
|
Core loss |
|
|
|
Net investment income, before tax |
|
|
|
Interest expense and preferred dividends, before tax |
|
|
—% |
Net loss available to common stockholders of
Second quarter 2024 core loss of
INVESTMENT INCOME AND PORTFOLIO DATA:
|
Three Months Ended |
||
($ in millions, unless otherwise noted) |
Jun 30
|
Jun 30
|
Change |
Net investment income, before tax |
|
|
|
Annualized investment yield, before tax |
|
|
0.2 |
Annualized investment yield, before tax, excluding LPs1 |
|
|
0.4 |
Annualized LP yield, before tax |
|
|
(1.6) |
Annualized investment yield, after tax |
|
|
0.2 |
| [1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures |
Second quarter 2024 consolidated net investment income of
Second quarter 2024 included
Net realized losses of
Total invested assets of
CONFERENCE CALL
The
More detailed financial information can be found in The
About The
The
The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The
HIG-F
From time to time, The
THE HARTFORD FINANCIAL SERVICES GROUP, INC. |
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CONSOLIDATING INCOME STATEMENTS |
||||||||||||||||||||||
Three Months Ended June 30, 2024 |
||||||||||||||||||||||
($ in millions) |
||||||||||||||||||||||
|
Commercial
|
Personal
|
P&C
|
Group
|
|
Corporate |
|
Consolidated |
||||||||||||||
Earned premiums |
$ |
3,121 |
|
$ |
849 |
|
$ |
— |
|
$ |
1,608 |
|
$ |
— |
|
$ |
— |
|
|
$ |
5,578 |
|
Fee income |
|
11 |
|
|
8 |
|
|
— |
|
|
57 |
|
|
253 |
|
|
10 |
|
|
|
339 |
|
Net investment income |
|
402 |
|
|
50 |
|
|
19 |
|
|
112 |
|
|
5 |
|
|
14 |
|
|
|
602 |
|
Net realized gains (losses) |
|
(50 |
) |
|
(8 |
) |
|
(3 |
) |
|
(9 |
) |
|
3 |
|
|
8 |
|
|
|
(59 |
) |
Other revenue |
|
— |
|
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
|
26 |
|
Total revenues |
|
3,484 |
|
|
924 |
|
|
16 |
|
|
1,768 |
|
|
261 |
|
|
33 |
|
|
|
6,486 |
|
Benefits, losses, and loss adjustment expenses |
|
1,824 |
|
|
688 |
|
|
— |
|
|
1,147 |
|
|
— |
|
|
2 |
|
|
|
3,661 |
|
Amortization of DAC |
|
489 |
|
|
63 |
|
|
— |
|
|
9 |
|
|
— |
|
|
— |
|
|
|
561 |
|
Insurance operating costs and other expenses |
|
494 |
|
|
188 |
|
|
2 |
|
|
387 |
|
|
203 |
|
|
11 |
|
|
|
1,285 |
|
Restructuring and other costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
50 |
|
|
|
50 |
|
Amortization of other intangible assets |
|
7 |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
— |
|
|
|
17 |
|
Total benefits, losses and expenses |
|
2,814 |
|
|
939 |
|
|
2 |
|
|
1,553 |
|
|
203 |
|
|
63 |
|
|
|
5,574 |
|
Income (loss) before income taxes |
|
670 |
|
|
(15 |
) |
|
14 |
|
|
215 |
|
|
58 |
|
|
(30 |
) |
|
|
912 |
|
Income tax expense (benefit) |
|
130 |
|
|
(4 |
) |
|
3 |
|
|
44 |
|
|
14 |
|
|
(13 |
) |
|
|
174 |
|
Net income (loss) |
|
540 |
|
|
(11 |
) |
|
11 |
|
|
171 |
|
|
44 |
|
|
(17 |
) |
|
|
738 |
|
Preferred stock dividends |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
5 |
|
Net income (loss) available to common stockholders |
|
540 |
|
|
(11 |
) |
|
11 |
|
|
171 |
|
|
44 |
|
|
(22 |
) |
|
|
733 |
|
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss) |
|
|
|
|
|
|
|
|
||||||||||||||
Net realized losses (gains), excluded from core earnings, before tax |
|
50 |
|
|
9 |
|
|
3 |
|
|
9 |
|
|
(3 |
) |
|
(10 |
) |
|
|
58 |
|
Integration and other non-recurring M&A costs, before tax |
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2 |
|
Change in deferred gain on retroactive reinsurance, before tax |
|
(37 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(37 |
) |
Income tax expense (benefit) |
|
(4 |
) |
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
2 |
|
|
— |
|
|
|
(6 |
) |
Core earnings (loss) |
$ |
551 |
|
$ |
(4 |
) |
$ |
14 |
|
$ |
178 |
|
$ |
43 |
|
$ |
(32 |
) |
|
$ |
750 |
|
THE HARTFORD FINANCIAL SERVICES GROUP, INC. |
||||||||||||||||||||||
CONSOLIDATING INCOME STATEMENTS |
||||||||||||||||||||||
Three Months Ended June 30, 2023 |
||||||||||||||||||||||
($ in millions) |
||||||||||||||||||||||
|
Commercial
|
Personal
|
P&C
|
Group
|
|
Corporate |
|
Consolidated |
||||||||||||||
Earned premiums |
$ |
2,886 |
|
$ |
760 |
|
$ |
— |
|
$ |
1,574 |
|
$ |
— |
|
$ |
— |
|
|
$ |
5,220 |
|
Fee income |
|
10 |
|
|
7 |
|
|
— |
|
|
56 |
|
|
244 |
|
|
11 |
|
|
|
328 |
|
Net investment income |
|
364 |
|
|
34 |
|
|
17 |
|
|
113 |
|
|
4 |
|
|
8 |
|
|
|
540 |
|
Net realized gains (losses) |
|
(51 |
) |
|
(5 |
) |
|
(1 |
) |
|
(19 |
) |
|
1 |
|
|
11 |
|
|
|
(64 |
) |
Other revenue |
|
1 |
|
|
24 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
25 |
|
Total revenues |
|
3,210 |
|
|
820 |
|
|
16 |
|
|
1,724 |
|
|
249 |
|
|
30 |
|
|
|
6,049 |
|
Benefits, losses, and loss adjustment expenses |
|
1,723 |
|
|
678 |
|
|
2 |
|
|
1,175 |
|
|
— |
|
|
2 |
|
|
|
3,580 |
|
Amortization of DAC |
|
436 |
|
|
57 |
|
|
— |
|
|
9 |
|
|
— |
|
|
— |
|
|
|
502 |
|
Insurance operating costs and other expenses |
|
477 |
|
|
162 |
|
|
2 |
|
|
381 |
|
|
192 |
|
|
11 |
|
|
|
1,225 |
|
Restructuring and other costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
3 |
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
50 |
|
|
|
50 |
|
Amortization of other intangible assets |
|
7 |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
— |
|
|
|
17 |
|
Total benefits, losses and expenses |
|
2,643 |
|
|
897 |
|
|
4 |
|
|
1,575 |
|
|
192 |
|
|
66 |
|
|
|
5,377 |
|
Income (loss) before income taxes |
|
567 |
|
|
(77 |
) |
|
12 |
|
|
149 |
|
|
57 |
|
|
(36 |
) |
|
|
672 |
|
Income tax expense (benefit) |
|
109 |
|
|
(17 |
) |
|
3 |
|
|
28 |
|
|
12 |
|
|
(10 |
) |
|
|
125 |
|
Net income (loss) |
|
458 |
|
|
(60 |
) |
|
9 |
|
|
121 |
|
|
45 |
|
|
(26 |
) |
|
|
547 |
|
Preferred stock dividends |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
5 |
|
Net income (loss) available to common stockholders |
|
458 |
|
|
(60 |
) |
|
9 |
|
|
121 |
|
|
45 |
|
|
(31 |
) |
|
|
542 |
|
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss) |
|
|
|
|
|
|
|
|
||||||||||||||
Net realized losses (gains), excluded from core earnings, before tax |
|
43 |
|
|
4 |
|
|
1 |
|
|
16 |
|
|
(1 |
) |
|
(10 |
) |
|
|
53 |
|
Restructuring and other costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
3 |
|
Integration and other non-recurring M&A costs, before tax |
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2 |
|
Change in deferred gain on retroactive reinsurance, before tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Income tax expense (benefit) |
|
(10 |
) |
|
(1 |
) |
|
— |
|
|
(4 |
) |
|
— |
|
|
3 |
|
|
|
(12 |
) |
Core earnings (loss) |
$ |
493 |
|
$ |
(57 |
) |
$ |
10 |
|
$ |
133 |
|
$ |
44 |
|
$ |
(35 |
) |
|
$ |
588 |
|
The
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
The
Annualized investment yield, excluding limited partnerships and other alternative investments - This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, as applicable, excluding derivatives book value and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of the annualized investment yield to annualized investment yield excluding limited partnerships and other alternatives investments for the quarterly periods ended June 30, 2024 and 2023 is provided in the table below.
|
Three Months Ended |
|||
|
Jun 30
|
Jun 30
|
||
|
Consolidated |
|||
Annualized investment yield |
4.1 |
% |
3.9 |
% |
Adjustment for income from limited partnerships and other alternative investments |
0.3 |
% |
0.1 |
% |
Annualized investment yield excluding limited partnerships and other alternative investments |
4.4 |
% |
4.0 |
% |
Book value per diluted share (excluding AOCI) - This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable
|
As of |
|||
|
Jun 30
|
Dec 31
|
Change |
|
Book value per diluted share |
|
|
|
|
Per diluted share impact of AOCI |
|
|
|
|
Book value per diluted share (excluding AOCI) |
|
|
|
|
|
As of |
|||
|
Jun 30
|
Jun 30
|
Change |
|
Book value per diluted share |
|
|
|
|
Per diluted share impact of AOCI |
|
|
( |
|
Book value per diluted share (excluding AOCI) |
|
|
|
|
Core earnings - The
-
Certain realized gains and losses - Generally realized gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The
Hartford believes, however, that some realized gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. - Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
- Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
- Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
- Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.
- Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
- Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and excluding the deferred gain on retroactive reinsurance and related amortization of the deferred gain from core earnings provides greater insight into the economics of the business.
- Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before tax income, such as tax attributes like capital loss carryforwards.
- Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable
A reconciliation of net income (loss) to core earnings for the quarterly periods ended June 30, 2024 and 2023, is included in this news release. A reconciliation of net income (loss) to core earnings for individual reporting segments can be found in this news release under the heading "The Hartford Financial Services Group, Inc. Consolidating Income Statements" and in The
Core earnings margin - The
|
Three Months Ended |
||
Margin |
Jun 30
|
Jun 30
|
Change |
Net income margin |
|
|
2.7 |
Adjustments to reconcile net income margin to core earnings margin: |
|
|
|
Net realized gains, before tax |
|
|
(0.4) |
Integration and other non-recurring M&A costs, before tax |
—% |
—% |
— |
Income tax expense benefit on items excluded from core earnings |
(0.1)% |
(0.2)% |
0.1 |
Core earnings margin |
|
|
2.4 |
Core earnings per diluted share - This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measure. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted common share to core earnings per diluted share for the quarterly periods ended June 30, 2024 and 2023 is provided in the table below.
|
Three Months Ended |
||
|
Jun 30 2024 |
Jun 30 2023 |
Change |
PER SHARE DATA |
|
|
|
Diluted earnings per common share: |
|
|
|
Net income available to common stockholders per share1 |
|
|
|
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share: |
|
|
|
Net realized losses (gains), excluded from core earnings, before tax |
0.19 |
0.17 |
|
Restructuring and other costs, before tax |
— |
0.01 |
(100)% |
Integration and other non-recurring M&A costs, before tax |
0.01 |
0.01 |
—% |
Change in deferred gain on retroactive reinsurance, before tax |
(0.12) |
— |
NM |
Income tax expense (benefit) on items excluded from core earnings |
(0.02) |
(0.04) |
|
Core earnings per diluted share |
|
|
|
[1] Net income available to common stockholders includes dilutive potential common shares |
|
|
|
Core Earnings Return on Equity - The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable
A reconciliation of consolidated net income available to common stockholders ROE to consolidated core earnings ROE is set forth below.
|
Last Twelve Months Ended |
|
|
Jun 30 2024 |
Jun 30 2023 |
Net income available to common stockholders ROE |
|
|
Adjustments to reconcile net income available to common stockholders ROE to core earnings ROE: |
|
|
Net realized losses excluded from core earnings, before tax |
|
|
Restructuring and other costs, before tax |
—% |
|
Integration and other non-recurring M&A costs, before tax |
|
|
Change in deferred gain on retroactive reinsurance, before tax |
|
|
Income tax benefit on items not included in core earnings |
(0.4)% |
(0.8)% |
Impact of AOCI, excluded from denominator of core earnings ROE |
(3.8)% |
(3.4)% |
Core earnings ROE |
|
|
Underlying combined ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for individual reporting segments can be found in this news release under the heading "Business Results" for Commercial Lines" and "Personal Lines". A reconciliation of the combined ratio to underlying combined ratio for lines of business within the Company's P&C reporting segments is set forth below.
SMALL COMMERCIAL
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Combined ratio |
88.7 |
|
90.8 |
|
(2.1 |
) |
Adjustment to reconcile combined ratio to underlying combined ratio: |
|
|
|
|||
Current accident year catastrophes |
(6.1 |
) |
(5.7 |
) |
(0.4 |
) |
Prior accident year development |
4.2 |
|
4.5 |
|
(0.3 |
) |
Underlying combined ratio |
86.8 |
|
89.7 |
|
(2.9 |
) |
MIDDLE & LARGE COMMERCIAL
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Combined ratio |
95.9 |
|
93.6 |
|
2.3 |
|
Adjustment to reconcile combined ratio to underlying combined ratio: |
|
|
|
|||
Current accident year catastrophes |
(4.8 |
) |
(3.8 |
) |
(1.0 |
) |
Prior accident year development |
(1.4 |
) |
(1.1 |
) |
(0.3 |
) |
Underlying combined ratio |
89.6 |
|
88.7 |
|
0.9 |
|
GLOBAL SPECIALTY
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Combined ratio |
83.4 |
|
87.3 |
|
(3.9 |
) |
Adjustment to reconcile combined ratio to underlying combined ratio: |
|
|
|
|||
Current accident year catastrophes |
(3.5 |
) |
(2.6 |
) |
(0.9 |
) |
Prior accident year development |
5.3 |
|
0.3 |
|
5.0 |
|
Underlying combined ratio |
85.2 |
|
85.0 |
|
0.2 |
|
PERSONAL LINES AUTO
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Combined ratio |
105.4 |
|
116.4 |
|
(11.0 |
) |
Adjustment to reconcile combined ratio to underlying combined ratio: |
|
|
|
|||
Current accident year catastrophes |
(3.6 |
) |
(3.8 |
) |
0.2 |
|
Prior accident year development |
3.1 |
|
(0.8 |
) |
3.9 |
|
Underlying combined ratio |
104.9 |
|
111.8 |
|
(6.9 |
) |
PERSONAL LINES HOMEOWNERS
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Combined ratio |
114.5 |
|
115.1 |
|
(0.6 |
) |
Adjustment to reconcile combined ratio to underlying combined ratio: |
|
|
|
|||
Current accident year catastrophes |
(40.4 |
) |
(35.5 |
) |
(4.9 |
) |
Prior accident year development |
3.7 |
|
(0.1 |
) |
3.8 |
|
Underlying combined ratio |
77.8 |
|
79.6 |
|
(1.8 |
) |
Underwriting gain (loss) - The
Underlying underwriting gain (loss) - This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of net income (loss) to underlying underwriting gain (loss) for individual reporting segments for the quarterly periods ended June 30, 2024 and 2023, is set forth below.
COMMERCIAL LINES
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
||||
Net income |
$ |
540 |
|
$ |
458 |
|
Adjustments to reconcile net income to underwriting gain: |
|
|
||||
Net investment income |
|
(402 |
) |
|
(364 |
) |
Net realized losses |
|
50 |
|
|
51 |
|
Other expense |
|
1 |
|
|
— |
|
Income tax expense |
|
130 |
|
|
109 |
|
Underwriting gain |
|
319 |
|
|
254 |
|
Adjustments to reconcile underwriting gain to underlying underwriting gain: |
|
|
||||
Current accident year catastrophes |
|
155 |
|
|
123 |
|
Prior accident year development |
|
(81 |
) |
|
(38 |
) |
Underlying underwriting gain |
$ |
393 |
|
$ |
339 |
|
PERSONAL LINES
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
||||
Net loss |
$ |
(11 |
) |
$ |
(60 |
) |
Adjustments to reconcile net income (loss) to underwriting loss: |
|
|
||||
Net investment income |
|
(50 |
) |
|
(34 |
) |
Net realized losses |
|
8 |
|
|
5 |
|
Net servicing and other income |
|
(6 |
) |
|
(7 |
) |
Income tax benefit |
|
(4 |
) |
|
(17 |
) |
Underwriting loss |
|
(63 |
) |
|
(113 |
) |
Adjustments to reconcile underwriting loss to underlying underwriting gain: |
|
|
||||
Current accident year catastrophes |
|
125 |
|
|
103 |
|
Prior accident year development |
|
(34 |
) |
|
(3 |
) |
Underlying underwriting gain (loss) |
$ |
28 |
|
$ |
(13 |
) |
Underlying loss and loss adjustment expense ratio - This non-GAAP financial measure of the loss and loss adjustment expense ratio for Commercial Lines and Personal Lines represents the loss and loss adjustment expense ratio before catastrophes and prior accident year development. The loss and loss adjustment expense ratio is the most directly comparable GAAP measure. The underlying loss and loss adjustment expense ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year reserve development. A reconciliation of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio for the quarterly periods ended June 30, 2024 and 2023, is set forth below.
COMMERCIAL LINES
|
Three Months Ended |
|||||
|
Jun 30
|
Jun 30
|
Change |
|||
Loss and loss adjustment expense ratio |
|
|
|
|||
Total losses and loss adjustment expenses |
58.4 |
|
59.7 |
|
(1.3 |
) |
Current accident year catastrophes |
(5.0 |
) |
(4.3 |
) |
(0.7 |
) |
Prior accident year development |
2.6 |
|
1.3 |
|
1.3 |
|
Underlying loss and loss adjustment expense ratio |
56.1 |
|
56.8 |
|
(0.7 |
) |
PERSONAL LINES
|
Three Months Ended |
|||||
|
Jun 30 2024 |
Jun 30 2023 |
Change |
|||
Loss and loss adjustment expense ratio |
|
|
|
|||
Total losses and loss adjustment expenses |
81.0 |
|
89.2 |
|
(8.2 |
) |
Current accident year catastrophes |
(14.7 |
) |
(13.6 |
) |
(1.1 |
) |
Prior accident year development |
4.0 |
|
0.4 |
|
3.6 |
|
Underlying loss and loss adjustment expense ratio |
70.3 |
|
76.1 |
|
(5.8 |
) |
SAFE HARBOR STATEMENT
Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects,” and similar references to future periods.
Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The
- Risks Relating to Economic, Political and Global Market Conditions: challenges related to the Company’s current operating environment, including global political, economic and market conditions, and the effect of financial market disruptions, economic downturns, changes in trade regulation including tariffs and other barriers or other potentially adverse macroeconomic developments on the demand for our products and returns in our investment portfolios; market risks associated with our business, including changes in credit spreads, equity prices, interest rates, inflation rate, foreign currency exchange rates and market volatility; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy; the impacts of changing climate and weather patterns on our businesses, operations and investment portfolio including on claims, demand and pricing of our products, the availability and cost of reinsurance, our modeling data used to evaluate and manage risks of catastrophes and severe weather events, the value of our investment portfolios and credit risk with reinsurers and other counterparties;
- Insurance Industry and Product-Related Risks: the possibility of unfavorable loss development, including with respect to long-tailed exposures; the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims; the possibility of another pandemic, civil unrest, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the intensity and frequency of thunderstorms, tornadoes, hail, wildfires, flooding, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; the possible occurrence of terrorist attacks and the Company’s inability to contain its exposure as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; the Company’s ability to effectively price its products and policies, including its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal of certain product lines; actions by competitors that may be larger or have greater financial resources than we do; technological changes, including usage-based methods of determining premiums, advancements in certain emerging technologies, including machine learning, predictive analytics, “big data” analysis or other artificial intelligence functions, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing; the Company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues; political instability, politically motivated violence or civil unrest, which may increase the frequency and severity of insured losses; the ongoing effects of COVID-19, including exposure to COVID-19 business interruption property claims and the possibility of a resurgence of COVID-19 related losses in Group Benefits;
Financial Strength, Credit and Counterparty Risks: risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments; capital requirements which are subject to many factors, including many that are outside the Company’s control, such as National Association of Insurance Commissioners ("NAIC") risk based capital formulas, rating agency capital models, Funds at Lloyd's and Solvency Capital Requirement, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; losses due to nonperformance or defaults by others, including credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; state and international regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;
Risks Relating to Estimates, Assumptions and Valuations: risks associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance and catastrophe risk management; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the Company’s fair value estimates for its investments and the evaluation of intent-to-sell impairments and allowance for credit losses on available-for-sale securities and mortgage loans; the potential for impairments of our goodwill;
Strategic and Operational Risks: the Company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber or other information security incident or other unanticipated event; the potential for difficulties arising from outsourcing and similar third-party relationships; the risks, challenges and uncertainties associated with capital management plans, expense reduction initiatives and other actions; risks associated with acquisitions and divestitures, including the challenges of integrating acquired companies or businesses, which may result in our inability to achieve the anticipated benefits and synergies and may result in unintended consequences; difficulty in attracting and retaining talented and qualified personnel, including key employees, such as executives, managers and employees with strong technological, analytical and other specialized skills; the Company’s ability to protect its intellectual property and defend against claims of infringement;
Regulatory and Legal Risks: the cost and other potential effects of increased federal, state and international regulatory and legislative developments, including those that could adversely impact the demand for the Company’s products, operating costs and required capital levels; unfavorable judicial or legislative developments; the impact of changes in federal, state or foreign tax laws; regulatory requirements that could delay, deter or prevent a takeover attempt that stockholders might consider in their best interests; and the impact of potential changes in accounting principles and related financial reporting requirements.
Any forward-looking statement made by the Company in this document speaks only as of the date of this release. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725404986/en/
Media Contacts:
Michelle Loxton
860-547-7413
michelle.loxton@thehartford.com
Matthew Sturdevant
860-547-8664
matthew.sturdevant@thehartford.com
Investor Contact:
Susan Spivak Bernstein
860-547-6233
susan.spivak@thehartford.com
Source: The
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