Asked how The Hartford maintains its competitive advantage in small business, given other companies are using AI to push into this market.

Management asserted their strong capabilities in the SME space, built over decades with technology orientation and strong agent partnerships. They are a digital leader and continue to invest to differentiate. They believe their 'moat' is strong, constantly defended, and their multi-channel capabilities (agents, direct, embedded) prepare them for market shifts. They also noted that capabilities built in small business are highly valuable in the middle market. “I do believe that there is a moat that we got to constantly defend because there is a lot of good competition out there and a lot of good brands that agents and people recognize.”

Inquired about the seasonality and future trajectory of the Business Insurance expense ratio, especially given Q1's higher ratio and the target below 30% by end of 2027.

Management confirmed some Q1 seasonality due to year-end and compensation activities, but stated expense targets are on plan. They reaffirmed the 2027 target and expect incremental improvements in 2026, with continued decline in 2027 across major business segments. “I reaffirm everything that we've talked about last call and the targets that we're aiming for at the end of '27. So nothing's changed, absolutely nothing in our ability, I believe, to deliver on expense improvements over the next 7 quarters.”

Asked about business flow between standard and E&S markets and the impact of MGA competition.

For binding business (small commercial), flow remains strong, with the admitted market not taking much back. In Global Specialty (brokerage model), flow is strong, but there's some flow back to admitted in larger risk. MGA impact is felt in areas where capacity is being built, a persistent trend. “We do feel a little bit more flow back to the admitted in the larger risk space. There is a little bit of a competitive nature there.”

HIG

Hartford Insurance Group (HIG) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· Apr 24, 2026

Source: earnings call transcript

Executive summary

The Hartford Q1 FY26 — Strong Underwriting Performance and Capital Returns

The Hartford delivered strong first-quarter results, driven by disciplined underwriting and profitable growth across its diversified portfolio. Business Insurance continued to perform well, leveraging its market leadership and technology investments. While Personal Insurance faced competitive headwinds, the company remains committed to thoughtful market share expansion and sustained profitability. Employee Benefits saw robust sales and strong earnings, supported by strategic investments and product enhancements.

Highlights

Business Insurance delivered strong written premium growth of 6% with an underlying combined ratio of 89.2%.
Personal Insurance's underlying combined ratio improved 4.7 points year-over-year to 85%.
Employee Benefits core earnings margin was 6.9%, driven by strong life and disability performance, along with 53% new business sales growth.
Core earnings reached $866 million, contributing to an outstanding trailing 12-month core earnings ROE of 20.3%.
The company repurchased 3.3 million shares for $450 million in the quarter, with $1.1 billion remaining on its authorization.

Concerns

Personal Insurance written premium declined 6%, with auto decreasing 10%, impacted by a competitive market and aggressive competitor pricing.
Employee Benefits group disability loss ratio increased 3.7 points to 72.7%, driven by less favorable long-term disability trends and higher short-term disability claim incidents.
P&C current accident year catastrophe losses totaled $230 million, or 5.1 combined ratio points, with Business Insurance losses of $171 million primarily from winter storms.

Guidance & targets

Category	Target	Timeline	Confidence
Net investment income	Increase medium materiality	FY26	Medium
Share repurchases	$450 million high materiality	Q2 · FY26	High
Personal Insurance agency offering expansion	30 states medium materiality	Early 2027 · FY27	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Business Insurance Strong written premium growth with excellent execution across all lines. Underlying combined ratio reflects disciplined underwriting and risk selection. Expense ratio generally consistent with prior year, partially offset by earned premium growth. Core earnings: $551 millionUnderlying combined ratio: 89.2%Expense ratio: 31.6%	—	6%	—	89.2%
Business Insurance - Small Business Delivered excellent results, supported by a flexible multichannel go-to-market model and expansion of the small business ecosystem. Underlying combined ratio: 89.4%Double-digit growth in package and commercial autoPricing ex-comp: 7.2% (down 50 bps from Q4 FY25)	—	8%	—	89.4%
Business Insurance - Middle & Large Solid written premium growth with focus on disciplined underwriting and selecting opportunities in an increasingly competitive market. Underlying combined ratio: 91.3%Pricing ex-comp: 5.3% (down from 6.2%)	—	5%	—	91.3%
Business Insurance - Global Specialty Solid results with underlying margins in the mid-80s. Growth reflected economic conditions, including fewer construction projects. Investing in automation and enhancing underwriting workflows. Underlying combined ratio: 86.1%Pricing: 4.8% (up from 4.1%)	—	3%	—	86.1%
Business Insurance - Global Re Premium growth driven by lines with strong risk-adjusted returns.	—	11%	—	—
Personal Insurance Solid execution amid a competitive market backdrop. Focus remains on thoughtful market share expansion with sustained profitability. Core earnings: $141 millionUnderlying combined ratio: 85% (improved 4.7 points YoY)Expense ratio: 27% (flat YoY)Effective policy count retention: relatively stable	—	-6%	—	85%
Personal Insurance - Auto Growth impacted by competitive market with competitors aggressively positioning renewal rate decreases. Annual policies are over 70% of the book. Renewal written pricing: 6.8%	—	-10%	—	—
Personal Insurance - Home Outstanding results supported by consistent underwriting and low double-digit pricing. Renewal written pricing: 11.8%	—	4%	—	—
Personal Insurance - Agency Channel Strong growth over the prior year, with new product rollout progressing as planned and positive agent feedback. Now live in 15 states with 30 planned by early 2027.	—	9%	—	—
Employee Benefits Driven by outstanding life and strong disability results. Sales benefited from new Paid Family and Medical Leave states coming online. Enhancing digital capabilities and API connectivity. Core earnings: $127 millionCore earnings margin: 6.9%Persistency: low 90sFully insured premium growth: 3% YoYSales growth: 53% (double-digit increase in quote activity)Expense ratio: 26.7% (increased 1.3 points compared with 25.4% in Q1 FY25)	3% (fully insured premium)	—	—	6.9%
Employee Benefits - Group Life Reflecting lower mortality in term life and accidental death products. Loss ratio: 73.2% (improved 6.7 points)	—	—	—	—
Employee Benefits - Group Disability Driven by less favorable long-term disability loss trends and higher short-term disability claim incidents, including Paid Family and Medical Leave. Loss ratio: 72.7% (increased 3.7 points)	—	—	—	—

Risks & headwinds

Competitive market in Personal Insurance Near term

Personal Insurance written premium declined 6%, with auto decreasing 10%.

Mitigation:Remaining disciplined, thoughtful market share expansion, and continued progress in the agency channel.

Increased utilization in Paid Family and Medical Leave (PFML) products Current

Employee Benefits group disability loss ratio increased 3.7 points to 72.7%.

Mitigation:Taking appropriate double-digit pricing actions; expecting moderation as pent-up demand subsides.

Geopolitical volatility and economic uncertainty impacting investment returns Near term

Q1 annualized limited partnership returns were lower than Q4 FY25.

Mitigation:Diversified portfolio with strong quality across public and private credit and equity.

Higher-than-expected catastrophe losses Q1 FY26

P&C current accident year losses totaled $230 million, or 5.1 combined ratio points. Business Insurance losses were $171 million, and Personal Insurance losses were $59 million. Small business winter storm losses were $73 million compared to $8 million in Q1 FY25.

Mitigation:Aggregate reinsurance treaty (kicks in at $750 million, with $204 million in subject losses through Q1 FY26).

Q&A highlights

Inquired about the stability of pricing in Business Insurance, particularly small business, given competitors' deceleration, and if the small business market can sustain rate increases despite broader market competition.

Management highlighted overall BI renewal pricing (ex-workers' comp) was stable at 6%, with GL pricing up to 9.7%. Small business ex-comp pricing was 7.2%. They emphasized their consistent, thoughtful approach to pricing in small business, taking 'little bites at the apple' to maintain retention and margins, which agents appreciate. They believe their execution and rate adequacy drive maneuvers, not just competitive pressures.

“I think there is a level of durability that if you don't shock and surprise customers and agents with modest increases, your retention will hold and you can maintain your margins.”

asked by Andrew Kligerman · answered by Christopher Swift

2 min read 6 chapters

Detailed narrative

Underwriting Discipline and Technology Integration

The Hartford continues to prioritize underwriting discipline, pricing rigor, and risk selection across its Business Insurance segments. The company is actively integrating real-time insights and AI assistants into underwriting workflows, which supports more precise risk selection and accurate pricing. This strategic approach enables profitable growth by ensuring that pricing, terms, and conditions appropriately compensate for risk, even in a dynamic market.

Expansion of Small Business Ecosystem

The company is strategically expanding its market-leading small business ecosystem across multiple dimensions. This includes targeting the small end of the middle market, seamlessly transitioning between admitted and E&S offerings, and combining specialty products with its distribution network. Additionally, The Hartford is launching efforts to extend its small business expertise into the small and midsized employer segment within Employee Benefits, leveraging its established capabilities for broader market penetration.

Personal Insurance Strategic Focus and Agency Channel Growth

Despite facing a competitive market, Personal Insurance remains focused on thoughtful market share expansion and achieving sustained profitability at target levels. The rollout of new products through the agency channel is progressing as planned, currently live in 15 states with a target of 30 states by early 2027, and has received positive agent feedback.

The company aims to balance growth with the imperative of maintaining the target margins it has worked hard to achieve.

Employee Benefits Performance and Sales Drivers

Employee Benefits delivered strong performance, characterized by outstanding life and disability results and robust persistency in the low 90s. Sales increased significantly by 53%, driven by a double-digit rise in quote activity, effective sales management, and continued technology investments that enhance value propositions for customers and brokers.

The segment also benefited from the launch of Paid Family and Medical Leave programs in two new states during the quarter.

Strong Investment Portfolio Performance

The Hartford's diversified investment portfolio continued to generate strong net investment income, totaling $739 million, an increase of $83 million from the prior year. This growth was primarily attributed to higher income from limited partnerships and other alternative investments, an increased level of invested assets, and the benefit of reinvesting at higher rates.

The portfolio maintains strong quality across public and private credit and equity, with direct lending and BDC investments comprising approximately 2% of invested assets.

Capital Management and Shareholder Returns

The company maintains a strong capital position, with holding company resources totaling $1.8 billion at quarter-end. During the first quarter, The Hartford repurchased 3.3 million shares for $450 million under its share repurchase program, and expects to maintain this level of repurchases in the second quarter.

A substantial $1.1 billion remains on the share repurchase authorization through December 31, 2026, underscoring the company's commitment to returning capital to shareholders.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.