NYSE$HIG

The Hartford Financial Services Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced financial results for the fourth quarter and year ended December 31, 2019.

The Hartford reported a strong fourth quarter in 2019, with net income available to common stockholders increasing by 186% compared to the fourth quarter of 2018. Core earnings also rose significantly, driven by improved underwriting results in P&C, a lower group disability loss ratio in Group Benefits, and higher net investment income.

  • Net income available to common stockholders increased 186% compared to Q4 2018.
  • Core earnings rose 84% from fourth quarter 2018.
  • P&C underwriting income improved due to lower catastrophe losses.
  • Group Benefits results were exceptional with continued margin improvement.
  • Net investment income was higher than fourth quarter 2018 by 10%.

Headline financials

Total Revenue

$5.36B

Previous: $4.63B+15.7%
EPS (adj)

$1.43

Previous: $0.78+83.3%
Group Benefits Loss Ratio

68.8%

Previous: 72.6%-5.2%
Group Benefits Expense Ratio

25.8%

Previous: 24.1%+7.1%
Capital Expenditures

$30M

Previous: $52M-42.3%
Net Income

$543M

Previous: $196M+177.0%
Operating Income

$676M

No prior period
Gross Profit

$5.36B

Previous: $4.63B+15.7%

Revenue & EPS history

The Hartford · Revenue · Quarterly

$5.36B

Q4 2019+15.7%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

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

  • Hartford Funds
    $248M+0.4%

Forward guidance

The Hartford provided its outlook for 2020 key business metric ranges for Commercial Lines and Personal Lines combined ratios and Group Benefits margins. The company does not provide an outlook for consolidated net income or core earnings.

Tailwinds

  • Commercial Lines combined ratio between 95.5 - 97.5
  • Commercial Lines underlying combined ratio between 92.0 - 94.0
  • Personal Lines combined ratio between 98.5 - 100.5
  • Personal Lines underlying combined ratio between 91.5 - 93.5
  • P&C current accident year catastrophe loss ratio of 4.0
  • Group Benefits net income margin between 6.25% - 7.25%
  • Group Benefits core earnings margin between 6.5% - 7.5%

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 Q4 2019

Historical avgQ4 2019

-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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