Summary
The Hartford Financial Services Group, Inc. (HIG) reported a mixed financial performance for the second quarter and first six months of 2019. While total revenues saw a notable increase driven by earned premiums and net investment income, net income available to common stockholders experienced a decline. This decrease was primarily attributed to the impact of discontinued operations following the sale of the life and annuity business in May 2018, alongside significant charges related to the acquisition of The Navigators Group, Inc., including a loss on reinsurance and reserve increases totaling $188 million before tax. Despite these headwinds, the company demonstrated growth in its Commercial Lines segment, largely due to the Navigators acquisition, and saw improved net investment income driven by higher asset levels and strong performance from alternative investments. Personal Lines experienced a decline in written premiums and a slight increase in combined ratio. Overall, while the company navigates integration costs and reserve adjustments from the Navigators acquisition, its core investment and underwriting activities show areas of resilience, particularly in Commercial Lines.
Financial Highlights
37 data points| Revenue | $5.09B |
| SG&A Expenses | $1.14B |
| Operating Expenses | $1.14B |
| Operating Income | $1.00B |
| Interest Expense | $63.00M |
| Net Income | $372.00M |
| EPS (Basic) | $1.03 |
| EPS (Diluted) | $1.02 |
| Shares Outstanding (Basic) | 361.40M |
| Shares Outstanding (Diluted) | 365.10M |
Key Highlights
- 1Total revenues increased by 6% to $5.1 billion for the three months ended June 30, 2019, and by 6% to $10.0 billion for the six months ended June 30, 2019.
- 2Net income available to common stockholders decreased by 36% to $372 million for the three months ended June 30, 2019, and by 15% to $997 million for the six months ended June 30, 2019.
- 3The acquisition of The Navigators Group, Inc. for $2.136 billion was completed on May 23, 2019, contributing positively to Commercial Lines written premiums but also incurring significant acquisition-related costs and reserve adjustments.
- 4Property & Casualty combined ratio increased by 4.2 points to 100.3% for the quarter, impacted by reserve increases on the Navigators acquisition and higher non-catastrophe property losses.
- 5Net investment income increased by 14% to $488 million for the quarter, driven by higher asset levels and strong performance in alternative investments.
- 6The company repurchased approximately 0.5 million shares for $27 million during the first six months of 2019 under a new $1.0 billion share repurchase authorization.
- 7The company's statutory capital for its insurance subsidiaries remained strong, with total U.S. statutory capital at $11.9 billion as of June 30, 2019.