HARTFORD INSURANCE GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Hartford Insurance Group, Inc. (HIG) reported a net income of $249 million for the first quarter of 2021, a decrease from $273 million in the same period of 2020. This decline was primarily attributed to higher property and casualty prior accident year reserve development, increased mortality within group life due to COVID-19 impacts, and higher current accident year catastrophe losses. These factors were partially offset by improved net realized capital gains, higher net investment income, and a better underlying Property & Casualty combined ratio. The company's total revenues increased by 7% to $5,299 million, driven by growth in fee income and net investment income, while earned premiums saw a slight decrease.

Key Highlights

• 1Net income available to common stockholders decreased by 9% to $244 million ($0.67 per diluted share) compared to $268 million ($0.74 per diluted share) in Q1 2020.
• 2Total revenues increased by 7% to $5,299 million, driven by higher net investment income (+11%) and fee income (+11%).
• 3Property & Casualty (P&C) segment experienced an underwriting loss of $216 million, a significant shift from a $20 million underwriting gain in Q1 2020, primarily due to higher prior accident year reserve development and catastrophe losses.
• 4Group Benefits segment saw a substantial decrease in net income to $9 million from $104 million in Q1 2020, largely due to higher mortality claims from COVID-19 in group life.
• 5The company repurchased $123 million of common stock during the quarter and announced an increase in its share repurchase authorization to $2.5 billion.
• 6Total investments decreased slightly to $55,727 million from $56,532 million at the end of 2020, with a notable increase in limited partnerships and other alternative investments.
• 7The company continues to execute its "Hartford Next" operational transformation plan, aiming for significant annual expense reductions.

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