NYSE$HIG

The Hartford Financial Services Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

The Hartford's financial results for Q2 2021 were announced, showcasing a significant increase in net income and core earnings compared to the same period last year, driven by strong performance across all businesses and investment returns.

The Hartford reported a strong second quarter in 2021, with net income available to common stockholders of $900 million, a 94% increase from Q2 2020. Core earnings were $836 million, up 91% year-over-year. The company benefited from increased net investment income, improved underwriting gains in Commercial Lines, and a lower expense ratio from the Hartford Next cost transformation program.

  • Net income available to common stockholders increased by 94% to $900 million, or $2.51 per diluted share.
  • Core earnings rose by 91% to $836 million, or $2.33 per diluted share.
  • Net investment income increased by 71% to $581 million, driven by strong returns on limited partnerships and alternative investments.
  • Commercial Lines written premiums increased by 15% to $2.5 billion, with improvements in the combined ratio and underlying combined ratio.

Headline financials

Total Revenue

$5.59B

Previous: $5.07B+10.3%
EPS (adj)

$2.33

Previous: $1.22+91.0%
Group Benefits Loss Ratio

0.7%

Previous: 72.0%-99.0%
Group Benefits Expense Ratio

0.3%

Previous: 25.6%-99.0%
Capital Expenditures

-$47M

Previous: -$51M+7.8%
Free Cash Flow

$858M

Previous: $417M+105.8%
Net Income

$905M

Previous: $468M+93.4%
Operating Income

$1.17B

Previous: $649M+79.8%
Gross Profit

$2.39B

Previous: $1.79B+33.1%
Cash & Equivalents

$177M

Previous: $291M-39.2%
Total Assets

$74.7B

Previous: $71B+5.3%

Revenue & EPS history

The Hartford · Revenue · Quarterly

$5.59B

Q2 2021+10.3%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

The Hartford · $374M total across 2 segments · Q2 2021

  • Hartford Funds
    $298M+26.3%
  • Corporate
    $76M-32.7%

Forward guidance

The Hartford continues to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023 from Hartford Next.

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 Q2 2021

Historical avgQ2 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

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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