What were the key drivers of The Hartford's increased net income in 2025?

The Hartford's net income increased significantly in 2025 primarily due to a substantial rise in its property and casualty (P&C) underwriting gains, which were boosted by higher earned premiums and favorable prior accident year reserve development. Additionally, higher net investment income, driven by increased invested assets and improved yields on alternative investments, also contributed positively to the bottom line.

How did the Business Insurance and Personal Insurance segments perform?

Both the Business Insurance and Personal Insurance segments showed strong performance in 2025. Business Insurance experienced an 8% increase in earned premiums, driven by new business growth and earned pricing increases. Personal Insurance also saw an 8% rise in earned premiums, primarily due to renewal price increases and, in the homeowners line, an increase in new business premium. While both segments benefited from pricing actions, Business Insurance faced a slightly higher underlying loss and LAE ratio, which partially offset gains.

What is the company's outlook for 2026?

The Hartford anticipates a competitive market in Business Insurance for 2026 but expects continued growth in written premium and an increase in market share while maintaining profitable margins. For Hartford Funds, assuming favorable equity market performance, net income is expected to increase. The company anticipates continued growth in fully insured ongoing premiums for Employee Benefits.

How is The Hartford managing its capital and returning value to shareholders?

The Hartford continues to maintain a strong capital position and actively manages its capital. In 2025, the company repurchased $1.6 billion of common stock under its $3.3 billion repurchase program. The company also expects to receive substantial dividends from its subsidiaries in 2026 to support its capital needs and potential shareholder returns. The company's strong financial performance has led to upgrades or stable outlooks on its ratings from major agencies.

HIG/HIG-PG 10-K FY2025 Annual Report — Revenue, Net Income, EPS

Summary

The Hartford Insurance Group, Inc. (HIG) reported a strong financial performance for the fiscal year ending December 31, 2025. The company's net income available to common stockholders increased by 23% year-over-year, driven by robust growth in its property and casualty (P&C) underwriting gains and higher net investment income. The P&C segment benefited from increased earned premiums across both Business Insurance and Personal Insurance lines, coupled with favorable prior accident year reserve development and a lower underlying loss and loss adjustment expense (LAE) ratio in Personal Insurance, though partially offset by a higher underlying LAE ratio in Business Insurance. The company continued to invest in technology and talent, aligning with its strategic priorities focused on growth, innovation, and customer centricity. Hartford Funds also saw an increase in assets under management, contributing positively to fee income. The company maintained a strong capital position, with significant regulatory dividend capacity in its insurance subsidiaries, and continued its share repurchase program, returning capital to stockholders. Management expressed optimism for 2026, anticipating continued written premium growth and market share gains in Business Insurance.

Key Highlights

1Net income available to common stockholders increased by 23% to $3.815 billion.

2Property & Casualty (P&C) underwriting gain improved significantly by $623 million, driven by earned premium growth and favorable reserve development.

3Net investment income rose by 13% to $2.911 billion, supported by higher invested assets and yields from alternative investments.

4Business Insurance segment saw an 8% increase in earned premiums, while Personal Insurance saw an 8% increase, reflecting pricing actions and business growth.

5Hartford Funds' Assets Under Management (AUM) grew 10% to $154.2 billion, boosting fee income.

6The company repurchased $1.6 billion of common stock in 2025 under its authorized repurchase program.

7Financial strength ratings from major agencies (AM Best, S&P, Moody's) were upgraded or affirmed with stable outlooks, reflecting strong performance and risk management.

HARTFORD INSURANCE GROUP, INC. Annual Report, Year Ended Dec 31, 2025

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