Summary
The Hartford Financial Services Group, Inc. (HIG) reported a solid third quarter of 2021, with net income available to common stockholders increasing by 5% to $476 million, or $1.36 per diluted share, compared to the same period in the prior year. This growth was driven by a significant increase in net investment income, particularly from alternative investments, and improved performance in Commercial Lines, benefiting from an economic recovery and higher audit/endorsement premiums. The company also saw reduced restructuring costs and a favorable change from net realized losses to gains. However, these positives were partially offset by higher excess mortality losses in the Group Benefits segment, an unfavorable shift in prior accident year reserve development (largely due to the Boy Scouts of America settlement), and increased current accident year catastrophe losses from Hurricane Ida. For the nine-month period, net income available to common stockholders saw a more substantial increase of 37% to $1.62 billion, or $4.54 per diluted share. This was driven by strong growth in net investment income, a significant turnaround in net realized gains, and improved underwriting results in Property & Casualty, partially offset by the aforementioned catastrophe losses, prior year reserve development, and increased mortality losses. The company also actively managed its capital, repurchasing $1.2 billion in common stock during the first nine months of the year, demonstrating a commitment to returning value to shareholders while maintaining a strong financial position.
Financial Highlights
34 data points| Revenue | $5.69B |
| SG&A Expenses | $1.20B |
| Operating Income | $1.64B |
| Interest Expense | $58.00M |
| Net Income | $482.00M |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.36 |
| Shares Outstanding (Basic) | 345.60M |
| Shares Outstanding (Diluted) | 350.70M |
Key Highlights
- 1Net income available to common stockholders increased by 5% to $476 million for the three months ended September 30, 2021.
- 2Net income available to common stockholders for the nine months ended September 30, 2021 increased by 37% to $1.62 billion.
- 3Net investment income saw a significant increase of 32% for the quarter and 35% for the nine-month period, driven by strong performance in limited partnerships and alternative investments.
- 4The company repurchased $1.2 billion of common stock during the first nine months of 2021 and announced an increase in its repurchase authorization to $3.0 billion.
- 5Commercial Lines performance improved, with written premiums up 15% for the quarter and 11% for the nine-month period, supported by economic recovery.
- 6Group Benefits experienced increased excess mortality losses and higher short-term disability losses related to COVID-19, impacting segment profitability.
- 7Property & Casualty faced higher current accident year catastrophe losses ($300 million for the quarter) and an unfavorable shift in prior accident year reserve development.