NYSE$HIG
The Hartford Financial Services Group Inc · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
The Hartford reported mixed results for Q1 2021, with net income impacted by significant settlement and catastrophe losses, but underlying performance remained strong.
The Hartford's Q1 2021 net income was $244 million, or $0.67 per diluted share, while core earnings were $203 million, or $0.56 per diluted share. Results were impacted by a $650 million settlement with the Boy Scouts of America, $214 million in catastrophe losses, and $185 million in COVID-19 related excess mortality losses. The company is increasing its share repurchase authorization to $2.5 billion and expects to achieve a return on equity of 13-14% in 2022 and 2023.
- Net income available to common stockholders was $244 million, or $0.67 per diluted share.
- Core earnings were $203 million, or $0.56 per diluted share.
- Commercial Lines combined ratio was 109.7% with an underlying combined ratio of 91.2%.
- Net investment income grew 11% to $509 million, driven by strong partnership returns.
Headline financials
Revenue & EPS history
The Hartford · Revenue · Quarterly
$5.3B
Revenue by segment
The Hartford · $298M total across 2 segments · Q1 2021
- Hartford Funds$285M+20.3%95.6%
- Corporate$13M—4.4%
Forward guidance
The Hartford expects 'Hartford Next' savings to reach $540 million in 2022 and $625 million in 2023. The company is increasing its share repurchase authorization to $2.5 billion, expecting to utilize $1.5 billion in 2021, and targets a 13-14% ROE in 2022 and 2023.
Tailwinds
- Expects ‘Hartford Next’ savings to reach $540 million in 2022 and $625 million in 2023
- Increases share repurchase authorization to $2.5 billion
- Targets 13-14% ROE in 2022 and 2023
- Small Commercial new business premiums were up 12% in the first quarter of 2021 driving record quarterly premium in this business
- Improving operating efficiencies and a lower expense ratio from ‘Hartford Next’, the company’s cost transformation program, have been a contributor to margin expansion.
Headwinds
- Reported results include the impact of the $650 million settlement with the Boy Scouts of America (BSA)
- $214 million in pre-tax net catastrophe (CAT) losses, mainly due to winter storms in Texas and other areas
- $185 million in COVID-19 related excess mortality losses in Group Benefits
- Commercial Lines combined ratio of 109.7%
- Group Benefits net income margin was 0.6% while the core earnings margin was (0.2)%*; both the net income margin and core earnings margin included approximately 10.0 points in excess mortality and COVID-19 short-term disability losses
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2021
-0.1%
Avg return
Earnings day
+0.6%
Avg return
5 days after
+2.7%
Avg return
30 days after
44%
32 / 73 earnings
Positive
+7.8%
Q3 2010
Best reaction
-9.0%
Q2 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.2% | -2.1% | -2.5% | |
| Q4 2025 | +3.9% | +6.4% | +6.4% | |
| Q3 2025 | -1.8% | -0.6% | +9.9% | |
| Q2 2025 | +2.8% | +1.5% | +9.1% | |
| Q1 2025 | -0.4% | +2.9% | +8.1% | |
| Q4 2024 | -2.4% | -0.6% | +3.5% | |
| Q3 2024 | -6.3% | -6.4% | +0.7% | |
| Q2 2024 | +7.5% | +9.7% | +10.5% | |
| Q1 2024 | -4.6% | -3.0% | +1.4% | |
| Q4 2023 | +3.9% | +3.2% | +8.6% | |
| Q3 2023 | -2.1% | +2.2% | +8.7% | |
| Q2 2023 | -4.5% | -4.9% | -5.1% | |
| Q1 2023 | +3.7% | +3.0% | +0.3% | |
| Q4 2022 | -1.7% | +0.3% | +1.9% | |
| Q3 2022 | +4.2% | +6.5% | +9.7% | |
| Q2 2022 | +0.2% | -2.1% | +2.9% | |
| Q1 2022 | -0.1% | +1.0% | +3.9% | |
| Q4 2021 | -3.6% | -0.5% | -7.7% | |
| Q3 2021 | +0.2% | -0.0% | -4.9% | |
| Q2 2021 | +2.1% | +4.1% | +10.1% | |
| Q1 2021 | +1.3% | +3.0% | -3.0% | |
| Q4 2020 | +2.0% | +1.6% | +8.5% | |
| Q3 2020 | +3.1% | +5.8% | +22.7% | |
| Q2 2020 | +2.1% | -2.1% | +0.2% | |
| Q1 2020 | -3.4% | -10.0% | -2.7% | |
| Q4 2019 | -2.6% | +0.9% | -9.1% | |
| Q3 2019 | +5.0% | +6.2% | +5.7% | |
| Q2 2019 | -0.3% | -0.0% | +1.1% | |
| Q1 2019 | -0.3% | +0.5% | +0.7% | |
| Q4 2018 | +2.8% | +1.9% | +3.1% | |
| Q3 2018 | +0.5% | +0.5% | -1.8% | |
| Q2 2018 | -0.7% | +0.6% | -4.5% | |
| Q1 2018 | +5.3% | +4.0% | +2.1% | |
| Q4 2017 | -3.4% | -3.4% | +0.5% | |
| Q3 2017 | -2.9% | -2.3% | -1.3% | |
| Q2 2017 | +3.0% | +4.7% | +3.4% | |
| Q1 2017 | +0.5% | +1.4% | +2.3% | |
| Q4 2016 | -2.3% | -2.3% | +1.5% | |
| Q3 2016 | +1.9% | +1.6% | +10.2% | |
| Q2 2016 | -9.0% | -8.4% | -9.0% | |
| Q1 2016 | -1.4% | — | — | |
| Q4 2015 | +4.1% | — | — | |
| Q3 2015 | -7.9% | — | — | |
| Q2 2015 | +0.8% | — | — | |
| Q1 2015 | -1.1% | — | — | |
| Q4 2014 | +1.9% | — | — | |
| Q3 2014 | +3.3% | — | — | |
| Q2 2014 | -2.7% | — | — | |
| Q1 2014 | +0.5% | — | — | |
| Q4 2013 | -1.3% | — | — | |
| Q3 2013 | +1.5% | — | — | |
| Q2 2013 | -2.6% | — | — | |
| Q1 2013 | +3.6% | — | — | |
| Q4 2012 | -3.3% | — | — | |
| Q3 2012 | -2.1% | — | — | |
| Q2 2012 | -1.8% | — | — | |
| Q1 2012 | -4.5% | — | — | |
| Q4 2011 | -0.5% | — | — | |
| Q3 2011 | -1.7% | — | — | |
| Q2 2011 | -4.4% | — | — | |
| Q1 2011 | +3.5% | — | — | |
| Q4 2009 | -2.2% | — | — | |
| Q4 2010 | -2.2% | — | — | |
| Q4 2008 | -2.2% | — | — | |
| Q4 2007 | -2.2% | — | — | |
| Q3 2010 | +7.8% | — | — | |
| Q2 2010 | -3.2% | — | — | |
| Q1 2009 | -1.2% | — | — | |
| Q1 2010 | +3.0% | — | — | |
| Q3 2009 | -1.5% | — | — | |
| Q3 2008 | -1.5% | — | — | |
| Q2 2008 | +4.5% | — | — | |
| Q2 2009 | +4.5% | — | — |
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