01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
The Hartford Insurance Group (NYSE: HIG) closed 2024 with a strong year.
Net income rose 24% to $3,111 milliona and net income available to common stockholders reached $3,090 million, or $10.35 per diluted share (up 30%). Total revenues grew 8% to $26.5 billion, driven by 7% earned premium growth to $22.6 billion, 11% higher net investment income, and a $61 million net realized loss versus $188 million in 2023. Book value per diluted share excluding AOCI and common stockholders' equity both rose, and the company repurchased $1.5 billion of stock during 2024 while paying $1.93 per common share in dividends.
Underwriting profitability improved meaningfully. The P&C combined ratio improved 1.7 points to 89.9% in Business Insurance area terms and Personal Insurance returned to an underwriting gain of $31 millionb from a loss of $230 million, helped by renewal price increases of roughly 6% to 22% and favorable prior-year reserve development. Employee Benefits net income rose 5% to $561 million, with a 7.9% net income margin.
Hartford Funds net income increased to $192 millionc on daily average AUM of $136.5 billion. Catastrophe losses were higher, and the company recorded $203 million of adverse asbestos and environmental (A&E) reserve charges, of which $141 million was not covered by the NICO adverse development cover, which is now fully exhausted.
Key risks for investors include the exhausted A&E adverse development cover, which leaves future A&E reserve development fully exposed; reserve uncertainty in general liability, workers' compensation and commercial auto; and an estimated $300 to $350 milliond first-quarter 2025 loss from the Los Angeles wildfires. The company also renamed itself from The Hartford Financial Services Group to The Hartford Insurance Group on February 6, 2025, and it holds a $3.15 billion remaining repurchase authorization through 2026.
02—Key points
Key Highlights
- Net income available to common stockholders rose 24% to $3.09 billion, and diluted EPS increased 30% to $10.35.
- Total revenues grew 8% to $26.5 billion, with earned premiums up 7% to $22.6 billion led by Business Insurance (+9%) and Personal Insurance (+12%).
- Personal Insurance swung to a $31 million underwriting gain from a $230 million loss, supported by double-digit renewal price increases in automobile and homeowners.
- Book value per diluted share rose 11% to $5.66 higher, while $1.5 billion of common stock was repurchased in 2024 and $3.15 billion remains authorized through 2026.
- The A&E adverse development cover with National Indemnity (NICO) is fully exhausted, so any future adverse A&E reserve development will hit earnings directly; 2024 A&E charges were $203 million before NICO cessions.
- Catastrophe losses rose to $768 million net of reinsurance, and the company expects a $300 to $350 million pre-tax first-quarter 2025 loss from the California wildfires.
- Capital position remains solid, with $16.0 billion of U.S. statutory capital, an A+ AM Best financial strength rating at the principal P&C and life subsidiaries, and 2025 expected net dividends of about $1.7 billion from P&C subsidiaries.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $26.54B$24.53B | +8.2% |
| SG&A Expenses | $5.26B$4.88B | +7.7% |
| Interest Expense | $199.00M$199.00M | 0.0% |
| Net Income | $3.11B$2.50B | +24.2% |
| EPS (Basic) | $10.51$8.09 | +29.9% |
| EPS (Diluted) | $10.35$7.97 | +29.9% |
| Shares Outstanding (Basic) | 293.90M307.10M | −4.3% |
| Shares Outstanding (Diluted) | 298.60M311.50M | −4.1% |
05—Questions
Frequently Asked Questions
Why did net income grow so much in 2024?
Net income rose $607 million to $3.09 billion available to common stockholders. Main drivers were higher earned premiums and underlying underwriting improvement in Personal Insurance, favorable prior-year reserve development (including a $145 million benefit from amortizing the Navigators ADC deferred gain), higher net investment income from reinvesting at higher yields, and lower net realized losses. Partial offsets were higher catastrophe losses and higher expense ratios.
Is the company's A&E exposure still a risk after the NICO reinsurance?
Yes. The $1.5 billion A&E adverse development cover with NICO has been fully used, so no reinsurance remains for future adverse A&E development. The company recorded $203 million of A&E reserve increases in 2024, of which $62 million was deferred under retroactive accounting and $141 million hit earnings. Future A&E charges would reduce earnings directly, and management says the outcome could be material.
How strong is the balance sheet and capital position?
Stockholders' equity was $16.4 billion and total assets were $80.9 billion at year-end 2024. Debt to capitalization was 21%, and the company has a $750 million undrawn revolving credit facility plus about $1.3 billion of holding-company liquidity. Insurance subsidiaries reported $16.0 billion of U.S. statutory capital, and all operating subsidiaries exceeded required risk-based capital levels.
What is the outlook for 2025?
Management expects Business Insurance written premium growth from new business and written pricing increases in most lines, with slight workers' compensation margin headwinds. Personal Insurance expects pricing increases to moderate from 2024 levels, with improving retention and continued loss ratio improvement in automobile. Employee Benefits expects fully insured premium growth and a long-term net income margin of about 6% to 7%. Hartford Funds expects higher net income if equity markets keep growing.
Why did the company change its name and what does it mean for investors?
The Hartford Financial Services Group, Inc. changed its name to The Hartford Insurance Group, Inc. on February 6, 2025. The filing states that the strategy and business operations are unchanged, and the ticker remains HIG on the NYSE. The name change reflects the company's focus on its insurance businesses, which generate the large majority of its earnings and revenue.
06—Continue