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    HIG
    Earnings call· Mar 2026(Q1 FY26)

    HARTFORD INSURANCE GROUP Q1 FY26 earnings call HIG

    Apr 24, 2026 Source

    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

    5

    • 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

    3

    • 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

    3
    CategoryTargetConfidence
    Net investment income
    Increase
    medium materiality
    Medium
    Share repurchases
    $450 million
    high materiality
    High
    Personal Insurance agency offering expansion
    30 states
    medium materiality
    High

    Segment performance

    12
    SegmentRevenueYoYQoQMargin
    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)
    		————

    Operational metrics

    16
    GL Pricing
    9.7%up 50 bps from 9.2% in Q4 FY25
    Q1 FY26

    Management's focus on discipline in liability lines.

    Property Book Growth Target
    10%from $3.3 billion in FY25
    FY26

    Expected growth for the property book, which closed 2025 with over $3.3 billion in premium.

    Small Business Property Pricing (BOP Spectrum)
    6.3%
    Q1 FY26

    Pricing for the property component of Business Owner's Policy (BOP).

    General Industries Property Pricing
    4%
    Q1 FY26

    Pricing for general industries property.

    Workers' Compensation Pricing
    relatively flatto Q4 FY25
    Q1 FY26

    Market still competitive with some negative rates in various states, excluding California.

    Workers' Compensation Severity
    3%-3.5%
    Q1 FY26

    Primarily medical severity, stable and within 5% pricing and reserving assumption.

    Small Business Winter Storm Losses
    $73 millioncompared with $8 million in Q1 FY25
    Q1 FY26

    Part of Business Insurance catastrophe losses, from freeze-driven winter storms like Storm Fern.

    Holding Company Resources
    $1.8 billion
    Q1 FY26

    Total resources at quarter end.

    Private Credit and BDC Exposure
    2%
    Q1 FY26

    Represents percentage of invested assets, diversified across subsectors and underlying loans.

    Total Annualized Portfolio Yield (ex-LPs)
    4.5%up 10 bps YoY, down 10 bps QoQ
    Q1 FY26

    Before tax, decline from Q4 primarily due to lower returns on public equity-related fund investments and modestly lower yield on variable rate securities.

    Annualized Limited Partnership Returns
    5.1%materially higher YoY, lower than Q4
    Q1 FY26

    Before tax, reflecting reduced returns in private equity and real estate portfolios.

    Aggregate Reinsurance Treaty Subject Losses
    $204 million
    Q1 FY26

    Amount of subject losses through Q1 FY26 towards the $750 million aggregate treaty threshold.

    Q1 CAT Losses vs. Expectations
    $30 million higher
    Q1 FY26

    Compared to original internal expectations, primarily due to freeze activity in small business.

    Employee Benefits Sales Growth (ex-PFML states)
    40%
    Q1 FY26

    Sales growth excluding the impact of new Paid Family and Medical Leave states coming online.

    Paid Family and Medical Leave Pricing Actions
    double-digit
    FY26

    Pricing increases being implemented due to higher utilization, with persistency maintained in the upper 80% range.

    Property Book Composition
    60%
    Q1 FY26

    Represents the concentration of the property book.

    Industry KPIs

    10
    MetricValueDetails
    Combined ratio89.2%%
    Capital returns$450 millionUSD
    ROE operating ROE20.3%%
    Catastrophe losses$230 millionUSD
    Net investment income$739 millionUSD
    Retention persistencylow 90s%
    Life specific when present73.2%%
    Net premiums written earned6%%
    Renewal rate change pricing6%%
    Prior year reserve development$75 millionUSD

    Risks & headwinds

    4
    Competitive market in Personal InsuranceNear 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) productsCurrent

    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 returnsNear 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 lossesQ1 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

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.