The Hartford Insurance Group Inc (HIG) reported a strong start to 2025 with significant growth across various business segments, despite facing substantial catastrophe losses. The company’s Business Insurance segment saw a 10% increase in written premium growth, with an underlying combined ratio of 88.4%. The Personal Insurance segment showed improvement, with an underlying combined ratio of 89.7%, representing a 6.4 point improvement. Employee Benefits achieved a core earnings margin of 7.6%, exceeding the long-term target of 6% to 7%. Global Specialty reported outstanding results with over $1 billion in quarterly written premium and an underlying combined ratio in the mid-80s.
Financial Highlights
- Core Earnings: $639 million or $2.20 per diluted share
- Trailing 12 Month Core Earnings ROE: 16.2%
- Business Insurance Written Premium Growth: 10%
- Business Insurance Underlying Combined Ratio: 88.4%
- Global Specialty Written Premium: $1 billion
- Global Specialty Underlying Combined Ratio: 84%
- Personal Insurance Written Premium Growth: 8%
- Auto Written Pricing Increases: 15.8%
- Homeowners Written Pricing Increases: 12.3%
- P&C Current Accident Year Catastrophe Losses: $467 million before tax
- Net Investment Income: $656 million
- Annualized Portfolio Yield (Excluding LPs): 4.4% before tax
Business Performance
The Hartford Insurance Group demonstrated resilience in the face of challenges, with strategic advancements in technology integration and digital capabilities. The company’s investment in AI and cloud migration is expected to enhance customer experience and operational efficiency. Despite competitive pressures in the workers’ compensation market, The Hartford achieved 9% growth in Middle & Large business, leveraging diversification to maintain topline growth.
Challenges and Outlook
The company faced significant catastrophe losses, including $325 million from the January California Wildfires. The Hartford is cautious about potential impacts from tariffs on loss costs, particularly in auto insurance, and is prepared to adjust pricing accordingly. The company remains confident in achieving consistent underlying combined ratios and is executing well in the SME market with strong pricing increases in property and general liability.
Management Insights
Christopher Swift, CEO, highlighted The Hartford’s long-term investment in core platforms, including claim systems and billing systems, and recent focus on organizing data and enhancing customer-centric digital capabilities. The company is making strategic choices on renewals in competitive markets and is cautious with post-COVID accident year reserves. The Hartford’s approach to workers’ compensation reserves reflects a careful and seasoned strategy, with releases this quarter coming from 2020 and prior years.
