NYSE$HIG

The Hartford Financial Services Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

The Hartford delivered an excellent quarter with strong performance across Commercial Lines, Personal Lines, and Group Benefits, driven by premium growth, investment income, and underwriting results.

The Hartford reported a strong third quarter in 2024, with net income available to common stockholders increasing by 18% to $761 million, or $2.56 per diluted share. Core earnings also rose by 6% to $752 million, or $2.53 per diluted share. The company benefited from growth in written premiums, higher net investment income, and improvements in the P&C current accident year loss ratio. The company returned $538 million to stockholders through share repurchases and dividends and increased the quarterly common dividend per share by 11%.

  • Net income available to common stockholders increased 18% to $761 million, or $2.56 per diluted share.
  • Core earnings increased 6% to $752 million, or $2.53 per diluted share.
  • Property & Casualty (P&C) written premiums rose 10%, driven by Commercial Lines and Personal Lines premium growth.
  • The company returned $538 million to stockholders through share repurchases and dividends and increased the quarterly common dividend per share by 11%.

Headline financials

Total Revenue

$6.75B

Previous: $6.17B+9.5%
EPS

$2.56

Previous: $2.29+11.8%
Net Investment Income

$659M

No prior period
Book Value Per Share

$56.39

No prior period
Group Benefits Loss Ratio

70.2%

Previous: 70.2%+0.0%
Group Benefits Expense Ratio

25.3%

Previous: 24.0%+5.4%
Capital Expenditures

-$171M

Previous: -$151M-13.2%
Free Cash Flow

$596M

Previous: $500M+19.2%
Net Income

$767M

Previous: $651M+17.8%
Operating Income

$1B

Previous: $863M+16.0%
Gross Profit

$2.34B

Previous: $2.11B+11.1%
Cash & Equivalents

$223M

Previous: $111M+100.9%
Total Assets

$81.2B

Previous: $74.5B+9.0%

Revenue & EPS history

The Hartford · Revenue · Quarterly

$6.75B

Q3 2024+9.5%vs Q3 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's franchise is well-positioned to sustain industry-leading financial performance and create value for all stakeholders.

Tailwinds

  • Strong capital generation.
  • Excellent quarter with a trailing 12-month core earnings ROE of 17.4 percent.
  • Commercial Lines generated strong top-line growth at highly profitable margins.
  • Personal Lines continues to make progress toward restoring target profitability in auto.
  • Group Benefits margin remained strong, and all businesses benefited from a consistent contribution from the investment portfolio.

Headwinds

  • Industry-wide elevated catastrophe losses.
  • Higher expense ratios across P&C and Group Benefits from third quarter 2023, primarily driven by higher incentive compensation and benefits costs, and higher marketing spend in Personal Lines.
  • Commercial Lines loss and loss adjustment expense ratio of 61.0 compared with 58.9 in third quarter 2023.
  • Global Specialty underlying combined ratio of 85.3 compared with 84.3 in third quarter 2023, primarily due to a higher loss ratio in global reinsurance and a higher expense ratio.
  • Group disability loss ratio of 67.9 compared with 67.3 in third quarter 2023, driven by a higher loss ratio in paid family and medical leave products.

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 Q3 2024

Historical avgQ3 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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