01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
The Hartford Insurance Group (HIG) closed 2025 with a strong year: net income rose 23% to $3,836 milliona, net income available to common stockholders was $3,815 million (up 23%), and diluted EPS reached $13.32, up 29%.
Total revenues grew 7% to $28.4 billionb, driven by 6% earned premium growth, a 13% increase in net investment income to $2,911 million, and a $1.7 billion (up from $1.6 billion-ish levels in prior year) of P&C dividends upstreamed to the holding company. Core earnings rose 25% to $3,845 million. Book value per diluted share excluding AOCI increased 20% to a level implied by $20.7 billion of common equity excluding AOCI, and total stockholders' equity reached $19.0 billion.
Management expects continued premium growth in 2026 but flags an increasingly competitive Business Insurance market. Underwriting profitability improved meaningfully: the P&C combined ratio improved 2.9 points, supported by favorable prior accident year reserve development of $424 millionc (before the Navigators ADC benefit, $360 million) and lower catastrophe losses, which were partially offset by the $305 million net California wildfire loss. Business Insurance's combined ratio was 88.3% and Personal Insurance's was 91.9%.
Employee Benefits margins were flat at about 8%, pressured by a higher group disability loss ratio and expense ratio. The A&E adverse development cover with NICO is now fully exhausted at $1.5 billiond, meaning any future adverse A&E development will hit earnings directly; the company added $165 million to A&E reserves in Q4 2025. Capital and shareholder returns remain robust: the company repurchased $1.6 billion of stock in 2025 (12.9 million shares), has $1.55 billion remaining under its $3.3 billion authorization, and raised its quarterly common dividend to $0.60 per share.
Ratings were upgraded by A.M. Best, S&P and Moody's during 2025. Key risks include A&E tail exposure, catastrophe and wildfire losses, interest rate and credit spread movements, and competitive pressure in small business and personal auto.
02—Key points
Key Highlights
- Net income available to common stockholders rose 23% to $3.8 billion; diluted EPS rose 29% to $13.32, and core earnings increased 25% to $3.8 billion.
- Total revenues increased 7% to $28.4 billion, led by 6% earned premium growth to $24.0 billion and a 13% rise in net investment income to $2.9 billion.
- P&C combined ratio improved 2.9 points, aided by $424 million of favorable prior accident year development (including the $64 million Navigators ADC benefit) and lower current accident year catastrophe losses.
- Business Insurance written premium grew 8% and Personal Insurance written premium grew 4%, with ongoing renewal price increases and the rollout of the Prevail platform.
- Capital return remained strong: $1.6 billion of share repurchases in 2025, $1.55 billion of authorization remaining, and quarterly common dividend of $0.60 per share.
- A&E ADC with NICO is fully exhausted ($1.5 billion limit), so future adverse run-off A&E development will be charged directly to earnings; Q4 2025 A&E reserve strengthening totaled $165 million.
- Credit ratings were upgraded in 2025 by A.M. Best (senior debt to 'a'), S&P (core subsidiaries to 'AA-') and Moody's (senior debt to 'A3').
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $28.37B$26.54B | +6.9% |
| SG&A Expenses | $5.58B$5.26B | +6.2% |
| Interest Expense | $199.00M$199.00M | 0.0% |
| Net Income | $3.84B$3.11B | +23.3% |
| EPS (Basic) | $13.51$10.51 | +28.5% |
| EPS (Diluted) | $13.32$10.35 | +28.7% |
| Shares Outstanding (Basic) | 282.40M293.90M | −3.9% |
| Shares Outstanding (Diluted) | 286.50M298.60M | −4.1% |
05—Questions
Frequently Asked Questions
How did The Hartford perform financially in 2025 compared with 2024?
Net income rose 23% to $3,836 million, and net income available to common stockholders rose 23% to $3,815 million. Diluted EPS increased to $13.32 from $10.35. The improvement was driven by higher P&C underwriting gains, a $343 million increase in net investment income and more favorable prior-year reserve development, partially offset by a higher Employee Benefits expense ratio and $39 million of larger net realized losses.
Is the company's A&E exposure still a risk to investors?
Yes. The A&E adverse development cover with National Indemnity Company (Berkshire Hathaway) has been fully used up at its $1.5 billion limit, so any future adverse development on pre-1986 asbestos and environmental claims will flow directly through earnings. Net A&E reserves were $1.7 billion before NICO recoverables, and management acknowledges significant uncertainty in estimating ultimate liabilities.
What is the outlook for 2026?
Management expects continued written premium growth and higher market share in Business Insurance, though the market is becoming more competitive. In Personal Insurance, it expects written premium growth from renewal pricing as increases moderate toward loss cost trends. Net investment income is expected to rise on higher invested assets and higher alternative investment yields, and Hartford Funds net income is expected to increase if equity markets continue to grow.
How strong is the balance sheet and capital position?
Total stockholders' equity was $19.0 billion and debt to capitalization was 19%, down from 21%. U.S. statutory capital for the insurance subsidiaries reached $17.1 billion, and the holding company expects about $2.2 billion of net P&C dividends and about $580 million from HLA in 2026. The company also has a $750 million undrawn revolving credit facility and a $2.0 billion intercompany liquidity agreement.
How much capital is the company returning to shareholders?
In 2025 the company repurchased $1.6 billion of common stock and paid $607 million in common dividends. It had $1.55 billion of authorization remaining at year-end and repurchased an additional $247 million between January 1 and February 19, 2026. The quarterly common dividend was $0.60 per share, declared in both October 2025 and February 2026.
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