The Hartford Insurance Group NYSE: HIG reported what executives described as a “strong” start to 2026, driven by underwriting results across commercial lines, improved profitability in personal lines, and higher investment income. Core earnings for the first quarter totaled $866 million, or $3.09 per diluted share, with a trailing 12-month core earnings return on equity of 20.3%, according to Chief Financial Officer Beth Costello.
Commercial lines growth and margins, with pricing discipline emphasized
Chairman and CEO Christopher J. Swift said Business Insurance delivered written premium growth of 6% and an underlying combined ratio of 89.2, calling results “another strong quarter” reflecting “excellent execution across all lines.” He said underwriting discipline and pricing rigor remain central amid a competitive market, and noted the company is embedding “real-time insights” into workflows and rolling out tools including an “AI assistant” to augment underwriting.
Within Business Insurance, small business was a key contributor. Costello said small business produced written premium growth of 8% and an underlying combined ratio of 89.4. Swift said growth was supported by “double-digit growth in package and commercial auto,” and highlighted a multi-channel model that allows customers to engage through agents, direct offerings, or embedded partners such as payroll providers.
Middle and large commercial lines generated written premium growth of 5% and an underlying combined ratio of 91.3, Costello said, while Global Specialty posted written premium growth of 3% and an underlying combined ratio of 86.1. Swift said Global Specialty growth reflected economic conditions, including fewer construction projects in the company’s core focus areas, though he characterized underlying margins as remaining in the “mid-80s.”
On pricing, Swift said Business Insurance renewal written pricing excluding workers’ compensation was 6% in the quarter, “down 10 basis points” from the fourth quarter of 2025. He added that general liability pricing rose to 9.7% from 9.2% in the prior quarter, while small business pricing excluding workers’ compensation was 7.2%, down from 7.7%, which he attributed “mostly due to auto.” Middle market pricing excluding workers’ compensation was 5.3%, down from 6.2%.
In response to questions about rate resilience in small commercial, Swift said The Hartford aims to be “consistent and steady with price increases” and avoid “shock and surprise” for customers and agents. A business leader identified in the transcript as “Mo” added that the company’s quarter-to-quarter actions are driven by “execution and rate adequacy” rather than reacting to competitive pressures, with the goal of maintaining margins and finding attractive growth.
Personal Insurance: improved combined ratio, but competitive auto market pressures growth
Costello said Personal Insurance core earnings were $141 million with an underlying combined ratio of 85, improving 4.7 points year-over-year. The segment’s written premium declined 6%, driven by a 10% decrease in auto, partially offset by 4% growth in home. The personal insurance expense ratio was 27, flat to the prior year.
Swift described the auto market as “dynamic,” citing competitors “aggressively positioning renewal rate decreases, increasing marketing spend, and introducing new business discounts.” He said The Hartford remains disciplined and expects direct auto growth to remain “challenged in the near term.” Costello said renewal written pricing increases were 6.8% in auto and 11.8% in home, and that retention was relatively stable, with expectations for improvement as pricing moderates.
In homeowners, Swift called results “outstanding,” supported by “low double-digit pricing.” He also said the agency-channel rollout of the company’s updated personal insurance offering is progressing with “very positive agent feedback.” The offering is live in 15 states, with 30 states planned by early 2027, he said.
Employee Benefits: strong life results, higher disability claim trends and paid leave utilization
Employee Benefits produced core earnings of $127 million and a core earnings margin of 6.9%, Costello said, driven by “outstanding group life and strong disability performance.” She said the group life loss ratio improved 6.7 points to 73.2, reflecting lower mortality in term life and accidental death products.
Disability results were mixed. Costello said the group disability loss ratio increased 3.7 points to 72.7, driven by “less favorable long-term disability loss trends” and higher short-term disability claim incidence, including in Paid Family and Medical Leave (PFML). She said the company is “continu[ing] to take pricing actions to reflect the increased utilization.”
Swift said PFML incidence has been higher than anticipated and described PFML and short-term disability as “short cycling businesses” with one- to two-year rate guarantees that allow pricing adjustments. Mike Fish, head of Employee Benefits, said new state PFML programs typically create a “pent-up demand element” with higher utilization early on, which the company expects to moderate. He also said the company implemented “double-digit” rate increases again this year while maintaining persistency in the “upper 80% range.”
On sales, Swift said Employee Benefits sales growth increased 53% in the quarter, and estimated that excluding PFML states coming online, sales growth would have been about 40%. Fish attributed results to pipeline development, investments in sales footprint and analytics, and technology investments that have improved the company’s story with brokers and customers, particularly in larger accounts.
Catastrophe losses, reserve movements, and investment income details
Costello said P&C current accident year catastrophe losses were $230 million before tax, or 5.1 combined ratio points. Business Insurance catastrophe losses of $171 million were “primarily driven by winter storms,” with small business winter storm losses of $73 million versus $8 million a year earlier. She said freeze-driven storms “tend to impact small business customers to a greater degree.” Personal Insurance catastrophe losses of $59 million were driven by tornado, wind, and hail across the Midwest.
Costello also discussed reserve updates. Favorable prior-year development was driven by reserve reductions in workers’ compensation, homeowners, and personal auto. However, she said general liability reserves related to sexual abuse and molestation exposures from the 1970s and 1980s were increased by $70 million, including a provision tied to “a settlement in principle in one bankruptcy proceeding involving a religious institution.” Excluding that general liability increase, she said total net favorable prior-year development impacting core earnings was $75 million.
Net investment income was $739 million, up $83 million from the first quarter of 2025, Costello said, driven by higher income from limited partnerships and other alternatives, a higher level of invested assets, and reinvestment at higher rates. She said direct lending and business development company investments represent about 2% of invested assets, with the BDC portion less than 1%. For full-year 2026, Costello said the company expects net investment income to increase, supported by growth in invested assets, with overall portfolio yields “generally in line with 2025.”
Capital management: share repurchases and liquidity
Costello said holding company resources totaled $1.8 billion at quarter-end. The company repurchased 3.3 million shares for $450 million during the quarter and expects to remain “at that level of repurchases” in the second quarter. As of March 31, The Hartford had $1.1 billion remaining on its repurchase authorization through Dec. 31, 2026.
Looking ahead, Swift said the company’s strategy remains focused on disciplined underwriting and profitability through market cycles, stating he does not expect the firm’s “business model strategy” to change materially based on softening competition. Executives also reiterated plans to pursue expense ratio improvement over the next several quarters, with Swift saying the company expects expense ratio declines in major business segments in 2026 and “continued improvement” in 2027.
About The Hartford Insurance Group NYSE: HIG
The Hartford Financial Services Group, commonly known as The Hartford, is a U.S.-based insurance and investment company that provides a broad range of commercial and personal insurance products and employee benefits. Its core businesses include property and casualty insurance for businesses and individuals, group benefits such as group life, disability and dental plans, and retirement and investment solutions offered through affiliated asset-management operations. The company also delivers risk management, claims-handling and loss-prevention services designed to support policyholders across a variety of industries.
Founded in Hartford, Connecticut, in 1810, The Hartford is one of the oldest insurance organizations in the United States and has a long history of underwriting and product development across multiple insurance lines.
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