Summary
The Hartford Financial Services Group, Inc. (HIG) reported solid financial results for the nine months ended September 30, 2018. The company achieved significant year-over-year growth in net income and earnings per share, driven by improved performance across its core segments, particularly Property & Casualty and Group Benefits. This growth was bolstered by favorable prior accident year development in P&C and strong sales in Group Benefits, partly attributed to the Aetna acquisition. The company also benefited from a lower corporate federal income tax rate. Total revenues saw a healthy increase, supported by higher earned premiums and fee income, reflecting the positive impact of strategic acquisitions and organic growth. Investment income also rose due to increased asset levels. While net realized capital gains were lower year-over-year, this was offset by gains in equity securities. The company maintained a strong liquidity position, with adequate cash flows from operations to meet its obligations and strategic growth initiatives, including the announced acquisition of The Navigators Group.
Financial Highlights
36 data points| Revenue | $4.84B |
| Operating Expenses | $1.09B |
| Operating Income | $1.29B |
| Interest Expense | $69.00M |
| Net Income | $432.00M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 358.60M |
| Shares Outstanding (Diluted) | 364.10M |
Key Highlights
- 1Net income increased by 85% to $432 million for the three months ended September 30, 2018, and by 182% to $1.611 billion for the nine months ended September 30, 2018.
- 2Diluted earnings per share were $1.19 for the three months and $4.42 for the nine months ended September 30, 2018.
- 3Total revenues increased by 16% to $4.84 billion for the three months and by 14% to $14.32 billion for the nine months ended September 30, 2018.
- 4The Property & Casualty combined ratio improved significantly to 97.3 for the third quarter of 2018 from 107.1 in the prior year period, driven by lower catastrophe losses and favorable prior accident year development.
- 5Group Benefits saw a 70% increase in premiums and other considerations for the third quarter, largely due to the acquisition of Aetna's U.S. group life and disability business.
- 6The company announced an agreement to acquire The Navigators Group, Inc. for $2.1 billion, expected to close in the first half of 2019.
- 7Book value per diluted share decreased to $34.95 as of September 30, 2018, from $37.11 at December 31, 2017, mainly due to a decrease in Accumulated Other Comprehensive Income.