NYSE$HIG

The Hartford Financial Services Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported strong financial performance in the first quarter of 2024.

The Hartford announced excellent first quarter 2024 financial results, with a net income of $748 million, or $2.47 per diluted share, a 41% increase from Q1 2023. Core earnings were $709 million, or $2.34 per diluted share, up 32% from the same period last year. The company's Commercial Lines continues to generate strong top-line growth, Personal Lines results are improving, and Group Benefits margins remained solid.

  • Net income available to common stockholders increased 41% to $748 million ($2.47 per diluted share).
  • Core earnings increased 32% to $709 million ($2.34 core earnings per diluted share).
  • P&C written premiums rose 9%, driven by Commercial Lines and Personal Lines premium growth.
  • Returned $491 million to stockholders through share repurchases and dividends.

Headline financials

Total Revenue

$6.42B

Previous: $5.91B+8.6%
EPS

$2.47

Previous: $1.68+47.0%
Group Benefits Loss Ratio

73.5%

Previous: 75.2%-2.3%
Group Benefits Expense Ratio

25.4%

Previous: 24.7%+2.8%
Capital Expenditures

-$50M

Previous: -$49M-2.0%
Free Cash Flow

$703M

Previous: $486M+44.7%
Net Income

$753M

Previous: $535M+40.7%
Operating Income

$961M

Previous: $703M+36.7%
Gross Profit

$2.26B

Previous: $1.94B+16.8%
Cash & Equivalents

$274M

Previous: $152M+80.3%
Total Assets

$77.7B

Previous: $74.2B+4.7%

Revenue & EPS history

The Hartford · Revenue · Quarterly

$6.42B

Q1 2024+8.6%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

The Hartford · $248M total across 1 segment · Q3 2023

  • Hartford Funds
    $248M+0.4%

Forward guidance

The Hartford is off to a strong start in 2024, with first quarter results reflecting consistency in performance and stability of margins. The company is confident in its ability to grow the franchise and deliver enhanced value for shareholders with an industry-leading ROE.

Tailwinds

  • Commercial Lines continues to generate strong top-line growth at highly profitable margins.
  • Personal Lines results demonstrate progress towards restoring target profitability in auto.
  • Group Benefits margins remained solid.
  • Pricing, excluding workers’ compensation, accelerated to 9 percent in the quarter and remains above loss cost trends.
  • Personal Lines achieved written price increases in auto of nearly 26 percent.

Headwinds

  • Elevated but moderating loss trends in auto and homeowners.
  • Lower effective policy count retention, driven by auto, due to renewal written price increases.
  • Mutual fund and ETF net outflows totaled $2.5 billion.
  • Lower group life sales, partially offset by an increase in group disability sales.
  • Lower income from limited partnerships and other alternative investments (LPs).

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 2024

Historical avgQ1 2024

-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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