The Hartford Insurance Group Q2 Earnings Call Highlights

Key Points

• The Hartford reported second-quarter 2026 core earnings of $945 million, or $3.42 per share, with an 18.7% trailing 12-month core earnings ROE. The company also announced a new $4.2 billion share-repurchase program through December 2028 and plans to sell Hartford Funds to Wellington Management.
• Business Insurance and Personal Insurance both showed solid underwriting performance. Business Insurance premiums rose 5% and the segment posted an 89.3 underlying combined ratio, while Personal Insurance improved to an 86.3 underlying combined ratio despite a 7% decline in written premiums.
• Management highlighted reserve strengthening in general liability and commercial auto due to higher-severity claims, but said the impact was modest. Meanwhile, Employee Benefits and net investment income both helped support results, with investment income up 22% year over year to $800 million.

The Hartford Insurance Group NYSE: HIG reported second-quarter 2026 core earnings of $945 million, or $3.42 per diluted share, as strength in its commercial insurance, employee benefits and investment operations supported results. The insurer’s trailing 12-month core earnings return on equity was 18.7%, while book value per share excluding accumulated other comprehensive income rose 7% from year-end to $78.91.

Chairman and Chief Executive Officer Chris Swift said the company’s results reflected the strength of its property-and-casualty and Employee Benefits franchises, distribution relationships and customer-service capabilities. The Hartford also announced an agreement to sell Hartford Funds to Wellington Management, characterizing the business as a non-core long-term investment.

The board authorized a new $4.2 billion share-repurchase program through December 2028, in addition to approximately $650 million remaining under the prior authorization as of June 30. Chief Financial Officer Beth Costello said the company repurchased 3.4 million shares for $450 million during the quarter and expects to raise quarterly repurchases to $475 million for the rest of 2026.

Business Insurance Posts Premium Growth

Business Insurance generated core earnings of $695 million, with written premiums increasing 5% and an underlying combined ratio of 89.3. Small Business written premiums rose 7%, supported by double-digit growth in package products and excess-and-surplus binding business. Its underlying combined ratio improved 2.5 points from a year earlier to 86.5, primarily due to lower non-catastrophe property losses and improved operating leverage.

Middle and Large business premiums increased 4%, while its underlying combined ratio was 95.3. Costello said results included elevated non-catastrophe property losses, including several large fire losses, as well as a business mix shift toward National Accounts and commercial auto. She said the company expects the full-year Middle and Large underlying combined ratio to be roughly a point better than its 93.3 year-to-date level if non-catastrophe property losses normalize in the second half.

Global Specialty premiums grew 4%, and the segment reported an 85.8 underlying combined ratio. The ratio increased from the previous year because of a higher international loss ratio and technology-related expenses. Swift said the business continued to see momentum in wholesale excess casualty and auto, bond, and financial lines.

Business Insurance renewal written pricing excluding workers’ compensation was 5.8%, relatively consistent with prior trends. Commercial auto and general liability rates remained above loss trends, while umbrella and excess lines achieved some of the strongest increases across the portfolio. Property pricing moderated, particularly in large property, although Swift said aggregate pricing in Small Business package and middle-market general-industry property remained in the mid-single digits.

Morris Tooker, president of Commercial Lines, said increased competition affected Middle and Large retention, rather than any targeted pruning following reserve actions. He added that The Hartford has reduced its shared-and-layered large-property book to less than $25 million as pricing in that market no longer met the company’s benchmarks.

Reserve Actions Reflect Casualty Trends

The company reported favorable prior-year reserve development in workers’ compensation, catastrophes, bond and Personal Insurance, partly offset by increases in general liability and commercial auto liability reserves.

Costello said general liability prior-year reserves increased by $46 million during the quarter, primarily because of a higher frequency of large losses in excess casualty and umbrella lines across several accident years. The affected periods included 2017 through 2019 and 2022 and 2023, with no addition to accident year 2025, she said.

Commercial auto liability reserves rose as adverse development in accident years 2023 and 2024 pointed to higher severity than previously estimated. Costello said the company is seeing more attorney representation and time-limit demands in claims that previously may have involved more minor accidents and injuries.

Management described the changes as modest relative to the reserve base and said the reserve review process was unchanged. Costello said the effect on expected forward loss trends was minimal, amounting to tenths of basis points.

Current accident-year property-and-casualty catastrophe losses totaled $222 million before tax, compared with $212 million a year earlier. The catastrophe ratio remained unchanged at 4.9 combined-ratio points.

Personal Insurance Profitability Improves Despite Lower Premiums

Personal Insurance produced $128 million in core earnings and an 86.3 underlying combined ratio, an improvement of 1.7 points from the second quarter of 2025. Auto’s underlying combined ratio improved 1.9 points as earned pricing continued to exceed loss trends, while home results were supported by underwriting execution and low-double-digit pricing.

Written premiums in Personal Insurance declined 7%, including a 10% decline in auto and flat home premiums, amid elevated competition for new business. Agency business grew 7% from a year earlier. Renewal written pricing increased 5.5% in auto and 10.4% in home, while auto policy retention improved slightly and home retention was relatively stable.

The Personal Insurance expense ratio rose to 26.3 from 25.1 a year earlier, driven by lower earned premiums and higher commissions associated with a growing agency-business mix. Swift said the company’s contemporary agency product was available in 23 states following its July rollout and is expected to reach 30 states by early 2027. He said direct-channel growth is likely to face continued pressure amid high customer shopping activity and strong competition.

Employee Benefits and Investments Add Support

Employee Benefits earned $139 million in core earnings, producing a 7.4% core earnings margin. Fully insured premium growth benefited from sales execution and persistency in the low 90s. Group life performance was described as excellent, while disability performance was solid.

The group disability loss ratio increased 6.3 points to 74.8%, reflecting increased claim incidence across short- and long-term disability. Mike Fish, head of Employee Benefits, said behavioral-health claims were rising somewhat more than other diagnoses in short-tail lines. Paid family and medical leave utilization was also higher in newly launched states and in some longer-established states, though Fish said the company continues to apply rate increases to the book.

Net investment income climbed 22% year over year to $800 million, driven by income from limited partnerships and other alternative investments, along with a higher level of invested assets. Annualized limited partnership returns were 7.6% before tax, supported by real estate joint-venture sales and infrastructure and energy-transition funds. The Hartford expects full-year net investment income to increase, with overall portfolio yields broadly in line with 2025.

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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