NYSE$HIG

The Hartford Financial Services Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

The Hartford's financial performance was solid in Q1 2023, marked by growth in P&C written premiums and Group Benefits premiums, offset by higher catastrophe losses.

The Hartford reported a net income of $530 million for Q1 2023, a 21% increase compared to Q1 2022. Core earnings were $536 million. The company experienced growth in Property & Casualty (P&C) written premiums and Group Benefits fully insured ongoing premiums. The results were impacted by higher catastrophe losses in the P&C segment.

  • Net income available to common stockholders increased 21% to $530 million ($1.66 per diluted share).
  • P&C written premiums rose 10%, driven by Commercial Lines premium growth of 11%.
  • Group Benefits fully insured ongoing premium growth of 8%.
  • Returned $484 million to stockholders through share repurchases and dividends.

Headline financials

Total Revenue

$5.91B

Previous: $5.39B+9.6%
EPS (adj)

$1.68

Previous: $1.66+1.2%
Group Benefits Loss Ratio

75.2%

Previous: 81.9%-8.2%
Group Benefits Expense Ratio

24.7%

Previous: 25.9%-4.6%
Capital Expenditures

-$49M

Previous: -$31M-58.1%
Free Cash Flow

$486M

Previous: $414M+17.4%
Net Income

$535M

Previous: $445M+20.2%
Operating Income

$703M

Previous: $605M+16.2%
Gross Profit

$1.94B

Previous: $1.84B+5.6%
Cash & Equivalents

$152M

Previous: $223M-31.8%
Total Assets

$74.2B

Previous: $75.3B-1.3%

Revenue & EPS history

The Hartford · Revenue · Quarterly

$5.91B

Q1 2023+9.6%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

The Hartford · $275M total across 2 segments · Q1 2023

  • Hartford Funds
    $249M-10.8%
  • Corporate
    $26M+2500.0%

Forward guidance

The Hartford anticipates continued growth and margin expansion and is confident in achieving its ROE target of 14 to 15 percent.

Tailwinds

  • Continued growth
  • Margin expansion
  • ROE target of 14 to 15 percent
  • Delivering Sustained strong results in Commercial Lines
  • Renewal written pricing in Standard Commercial Lines, excluding workers’ compensation, rose to 8.1 percent, above loss cost trends.

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 2023

Historical avgQ1 2023

-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

Earnings price reactions
QuarterReport dateReaction (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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