10-QPeriod: Q2 FY2024

HARTFORD INSURANCE GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 25, 2024For Securities:HIGHIG-PG

Summary

The Hartford Financial Services Group, Inc. (HIG) reported a strong second quarter for 2024, with net income available to common stockholders increasing by 35% year-over-year to $733 million, or $2.44 per diluted share. This growth was primarily driven by higher earned premiums across its Property & Casualty (P&C) and Group Benefits segments, alongside a notable increase in net investment income due to a higher yield on fixed maturities and larger invested asset base. The P&C segment demonstrated robust underwriting performance, with a combined ratio improving to 90.0% for the first six months of 2024. This improvement was supported by favorable prior accident year reserve development, a lower current accident year loss and loss adjustment expense ratio before catastrophes, and a modest benefit from the amortization of a deferred gain on retroactive reinsurance. While current accident year catastrophe losses increased, the overall P&C results reflect disciplined underwriting and effective risk management. The company continued its commitment to shareholder returns, repurchasing approximately $700 million of common stock in the first six months of 2024 and announced a new $3.3 billion repurchase program. With ample capital resources and a solid liquidity position, The Hartford is well-positioned to navigate market conditions and continue delivering value to its shareholders.

Financial Statements
Beta
Revenue$6.49B
SG&A Expenses$1.28B
Interest Expense$50.00M
Net Income$738.00M
EPS (Basic)$2.48
EPS (Diluted)$2.44
Shares Outstanding (Basic)295.50M
Shares Outstanding (Diluted)299.90M

Key Highlights

  • 1Net income available to common stockholders increased by 35% to $733 million for the three months ended June 30, 2024.
  • 2Diluted earnings per share rose to $2.44, a 41% increase year-over-year.
  • 3Earned premiums grew by 7% to $5.58 billion for the three months ended June 30, 2024, driven by increases in both Commercial and Personal Lines within P&C, and Group Benefits.
  • 4Net investment income increased by 11% to $602 million, reflecting higher invested assets and improved yields.
  • 5The P&C combined ratio improved to 90.0% for the first six months of 2024 from 91.9% in the prior year period.
  • 6The company repurchased $700 million of common stock in the first six months of 2024 and announced a new $3.3 billion repurchase program.
  • 7Total investments increased to $56.9 billion as of June 30, 2024, primarily due to growth in fixed maturities.

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