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    HIG
    Earnings call· Sep 2025(Q3 FY25)

    HARTFORD INSURANCE GROUP, INC. HIG

    Oct 28, 2025 Source

    Executive summary

    The Hartford Q3 FY25 — Record Core Earnings and Strong Underwriting Performance

    The Hartford delivered record core earnings in Q3 FY25, driven by strong underwriting performance and disciplined execution across its Business Insurance, Personal Insurance, and Employee Benefits segments. The company is leveraging strategic investments in digital capabilities and data science to drive profitable growth and maintain strong margins, while also increasing its common quarterly dividend by 15% and continuing share repurchases. Management noted a competitive market impacting Personal Lines PIF growth and Employee Benefits sales, but expressed confidence in their ability to navigate dynamic market cycles.

    Highlights

    6
    • Core earnings of $1.1 billion or $3.78 per diluted share, both records for the company.

    • Business Insurance written premium grew 9% with an underlying combined ratio of 89.4%.

    • Personal Insurance underlying combined ratio of 90%, a 3.7-point improvement over prior year.

    • Employee Benefits achieved an outstanding core earnings margin of 8.3%.

    • Trailing 12-month core earnings ROE reached 18.4%.

    • The common quarterly dividend was increased by 15% to $0.60 per share.

    Concerns

    4
    • Global Specialty wholesale written premium dipped 3% due to a decline in new construction projects.

    • Personal Insurance total policies in force (PIF) growth continues to be impacted by a highly competitive market.

    • Employee Benefits fully insured premium and sales were flat year-over-year, reflecting a competitive market and lower large case sales.

    • Elevated shopping behavior persists in Personal Lines, though retention is stable.

    Guidance & targets

    10
    CategoryTargetConfidence
    Business Insurance Written Premium
    exceed $6 billion
    high materiality
    High
    Business Insurance Property Written Premium
    reach $3.3 billion
    medium materiality
    High
    Prevail agency rollout
    30 state launches
    medium materiality
    High
    Employee Benefits Quote Activity and Known Sales
    trending very favorably
    medium materiality
    Medium
    Limited Partnership Returns
    in a similar range to third quarter
    low materiality
    High
    Share Repurchases
    $400 million
    medium materiality
    High
    Business Insurance Underlying Combined Ratio
    slightly below 88.6%
    high materiality
    High
    Personal Auto Pricing
    drop into the high single -- single digits
    medium materiality
    Medium
    Personal Auto Pricing
    continue to moderate
    medium materiality
    Medium
    Leave Product Utilization
    level out
    low materiality
    Medium

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Business Insurance
    Excellent growth with strong underlying margins, sustaining momentum from the first half of the year.
    Underlying combined ratio: 89.4%
    9%$723 million
    Business Insurance - Small Business
    Continues to set the standard for growth and profitability, fueled by double-digit increases in package product and auto. E&S binding up 47% to over $100 million.
    Underlying combined ratio: 89.8%New business premium: record-breaking
    11%
    Business Insurance - Middle & Large Business
    Outstanding growth driven by robust new business generation, strong retention, and solid pricing execution.
    Underlying combined ratio: 91.4%
    10%
    Business Insurance - Global Specialty
    Solid results with underlying margins in the mid-80s. Growth driven by U.S. financial lines, bond, and international, partially offset by a 3% dip in wholesale due to new construction project decline.
    Underlying combined ratio: 85.8%
    5%
    Personal Insurance
    Results continued to improve over prior year. Total PIF growth impacted by a highly competitive market.
    Underlying combined ratio: 90%Expense ratio: 25.8% (relatively flat from 2024 period)
    2%$143 million
    Personal Insurance - Homeowners
    Strong quarter with pricing driven by net rate and insured value increases.
    Underlying combined ratio: 74.4% (1-point improvement over prior year)Renewal written pricing: 12.6% (flat to Q2)
    10%
    Personal Insurance - Auto
    Underlying results improved and remain in line with expectations, reflecting typical seasonality.
    Underlying combined ratio: improved by 3.6 pointsYear-to-date underlying combined ratio: mid-90sRenewal written pricing: 11.3%
    Employee Benefits
    Excellent group life and strong disability performance. Flat premium and sales reflect competitive market and lower large case sales. Expense ratio increased due to staffing costs, incentive compensation, technology investments, and commission ratio.
    Core earnings margin: 8.3%Persistency: low 90sFully insured premium and sales: flat year-over-yearGroup life loss ratio: 74.2% (improved 3.3 points)Group disability loss ratio: 70.6% (increased 2.7 points)Expense ratio: 26.7% (increased 1.4 points)
    $149 million

    Operational metrics

    41
    Core Earnings
    $1.1 billionrecord for the company
    Q3 FY25

    The Hartford delivered outstanding third quarter results with core earnings of $1.1 billion or $3.78 per diluted share, both records for the company.

    Diluted EPS
    $3.78record for the company
    Q3 FY25

    The Hartford delivered outstanding third quarter results with core earnings of $1.1 billion or $3.78 per diluted share, both records for the company.

    Trailing 12-month Core Earnings ROE
    18.4%
    TTM

    All these items contributed to an outstanding trailing 12-month core earnings ROE of 18.4%.

    Business Insurance Renewal Written Pricing (ex-Workers' Comp)
    7.3%above overall loss trend
    Q3 FY25

    Business Insurance renewal written pricing, excluding workers' compensation, was 7.3%, above overall loss trend.

    Business Insurance Renewal Written Pricing (General Liability)
    high single digitsremained firm and above loss trend
    Q3 FY25

    General liability remained firm and above loss trend, supported by rate increases and proactive underwriting actions focused on segmentation, limits management and geographic optimization.

    Business Insurance Renewal Written Pricing (Excess and Umbrella)
    double-digitdouble-digit pricing increases
    Q3 FY25

    Excess and umbrella lines delivered double-digit pricing increases and primary lines moderated slightly while still in the high single digits.

    Business Insurance Renewal Written Pricing (Auto)
    near 11%remained near 11%
    Q3 FY25

    Despite modest easing this quarter, auto pricing remained near 11%, while workers' compensation pricing was slightly up from the second quarter.

    Business Insurance Renewal Written Pricing (Workers' Compensation)
    slightly upfrom the second quarter
    Q3 FY25

    Despite modest easing this quarter, auto pricing remained near 11%, while workers' compensation pricing was slightly up from the second quarter.

    Business Insurance Property Written Premium Growth
    50%
    past 3 years

    Over the past 3 years through the team's thoughtful and disciplined strategy, including CAT management, the Business Insurance property book grew 50%.

    Small Business Property Pricing (Package Product)
    12%strong
    Q3 FY25

    In Small business, property pricing within the package product remained strong, achieving 12% renewal written price increases.

    Other Property Lines Renewal Pricing (E&S and Large)
    1.2%up nearly 2 points from the second quarter
    Q3 FY25

    Other property lines, primarily E&S and Large representing approximately 20% of the property book, achieved renewal pricing increases of 1.2%, up nearly 2 points from the second quarter.

    Personal Insurance Agency Policies in Force Growth
    17%over prior year
    Q3 FY25

    We are pleased with growth in agency, where policies in force grew 17% over prior year, including 4% in auto.

    Personal Insurance Agency Auto Policies in Force Growth
    4%over prior year
    Q3 FY25

    We are pleased with growth in agency, where policies in force grew 17% over prior year, including 4% in auto.

    P&C Current Accident Year Catastrophe Losses (pre-tax)
    $70 million
    Q3 FY25

    With respect to catastrophes, P&C current accident year losses were $70 million before tax for 1.6 combined ratio points, which included $37 million of favorable prior quarter development.

    Aggregate Property Catastrophe Treaty Attachment Point
    $750 million
    through September 30

    Through September 30, we have reached the $750 million attachment point for our aggregate property catastrophe treaty, which means that CAT losses of up to $200 million in the fourth quarter would be covered by the treaty.

    Aggregate Property Catastrophe Treaty Coverage
    up to $200 million
    Q4 FY25

    Through September 30, we have reached the $750 million attachment point for our aggregate property catastrophe treaty, which means that CAT losses of up to $200 million in the fourth quarter would be covered by the treaty.

    P&C Net Favorable Prior Accident Year Development (pre-tax)
    $95 millionnet favorable
    Q3 FY25

    Total P&C net favorable prior accident year development within core earnings was $95 million before tax, primarily due to reserve reductions in workers' compensation and personal auto liability and physical damage.

    Deferred Gain Amortization (Navigators ADC)
    $8 million
    Q3 FY25

    We recorded $8 million of deferred gain amortization related to the Navigators ADC, which has now been fully amortized.

    Group Life Loss Ratio
    74.2%improved 3.3 points
    Q3 FY25

    The group life loss ratio of 74.2%, improved 3.3 points, reflecting lower mortality across both term and accidental life products.

    Group Disability Loss Ratio
    70.6%increased 2.7 points from the prior year
    Q3 FY25

    The group disability loss ratio of 70.6% increased 2.7 points from the prior year.

    Net Investment Income
    $759 millionincreased $100 million from third quarter 2024
    Q3 FY25

    Net investment income of $759 million increased $100 million from third quarter 2024 due to income from limited partnerships and other alternative investments, a higher level of invested assets and reinvesting at higher interest rates, partially offset by a lower yield on variable rate securities.

    Total Annualized Portfolio Yield (ex-LPs)
    4.6%consistent with the second quarter
    Q3 FY25

    The total annualized portfolio yield, excluding limited partnerships, was 4.6% before tax, consistent with the second quarter.

    Reinvestment Spread
    50 basis pointsabove the sales and maturity yield
    Q3 FY25

    In the quarter, we reinvested at 50 basis points above the sales and maturity yield, reflecting increased call and paydown activity on higher-yielding corporate bonds and certain structured securities.

    Annualized LP Returns (pre-tax)
    6.7%higher than the first half of the year
    Q3 FY25

    As expected, our third quarter annualized LP returns of 6.7% before tax were higher than the first half of the year, reflecting increased returns from our private equity portfolio.

    Holding Company Resources
    $1.3 billion
    quarter end

    Holding company resources totaled $1.3 billion at quarter end.

    Shares Repurchased
    3.1 million
    Q3 FY25

    During the quarter, we repurchased 3.1 million shares under our share repurchase program for $400 million, and we expect to remain at that level of repurchases in the fourth quarter.

    Share Repurchase Program Amount
    $400 million
    Q3 FY25

    During the quarter, we repurchased 3.1 million shares under our share repurchase program for $400 million, and we expect to remain at that level of repurchases in the fourth quarter.

    Remaining Share Repurchase Authorization
    $1.95 billion
    as of September 30

    As of September 30, we had $1.95 billion remaining on our share repurchase authorization through December 31, 2026.

    IT Budget (Total)
    $1.3 billion
    annual

    we run basically $1.3 billion all-in IT run in an invest budget.

    IT Budget (Invest)
    over $500 million
    annual

    And I would say a little over $500 million is sort of the invest side of that.

    Cloud Migration Journey
    6-year journeyin our fourth year
    null

    We're still taking all our data and applications to the cloud, which we're in our fourth year of a 6-year journey to get that done.

    Small Commercial Spectrum Product Growth
    13%
    Q3 FY25

    our Spectrum product in Small Commercial, it was up 13% in the quarter.

    Global Re Growth
    14%
    Q3 FY25

    Global Re was up 14%.

    Business Insurance Auto Growth
    10%
    Q3 FY25

    Business Insurance, auto, was up 10%.

    National Account Business Growth
    17%
    Q3 FY25

    national account business, which was up 17% in the quarter

    Excess Liability Line Growth
    20%
    Q3 FY25

    I would even say our excess liability line was up 20%.

    Workers' Comp Growth
    3%year-over-year
    Q3 FY25

    And workers' comp, I think, grew 3% year-over-year.

    Small Business Market Share
    less than 5%
    today

    our market share today, Mike, is less than 5% in the Small business space.

    Leave Product Book Size
    a little over $500 million
    today

    And that book is a little over $500 million for us today, Mike Fish.

    Business Insurance 9-month YTD Underlying Combined Ratio
    88.6%versus 88.1%
    9-month YTD

    let's look at the 9-month year-over-year underlying combined ratio. Currently, it's running 88.6% versus 88.1%.

    Business Insurance Pricing Exposure Component
    1.8%consistent
    Q3 FY25

    The quarter, I would call it at 1.8%, and it's been sort of consistent of 75% rate and 25% exposure as we break that down.

    Industry KPIs

    11
    MetricValueDetails
    Combined ratio89.4%%
    Capital returns$0.60 per shareUSD/share
    ROE operating ROE18.4%%
    Catastrophe losses$70 millionUSD
    Net investment income$759 millionUSD
    Retention persistencylow 90s%
    Life specific when present74.2%%
    Net premiums written earned9%%
    Renewal rate change pricing7.3%%
    Statutory regulatory capital
    Prior year reserve development$95 millionUSD

    Product announcements

    1
    ProductTypeDetails
    Prevail agencylaunch

    Risks & headwinds

    7
    Decline in new construction projects affecting wholesale business.Q3 FY25

    Global Specialty wholesale written premium down 3%.

    Mitigation: Management is taking advantage of innovative solutions combining specialized underwriting expertise with advanced technology and broad distribution through their 'One Hartford approach'.

    Highly competitive market impacting Personal Insurance PIF growth.Q3 FY25 and ongoing

    Total PIF growth continues to be impacted.

    Mitigation: Rolling out Prevail agency product to retail distribution (6 states live, 30 by early 2027) to improve competitive positioning. Focusing on bundling auto and home.

    Competitive market and lower large case sales impacting Employee Benefits.Q3 FY25

    Fully insured premium and sales flat year-over-year.

    Mitigation: Recent investments in technology and customer-facing tools are gaining traction, with quote activity and known sales for 2026 trending favorably.

    Elevated shopping behavior and switching in Personal Lines.Q3 FY25 and ongoing

    Shopping is still elevated.

    Mitigation: Retention is stable, and the company is implementing initiatives focused on policyholder education and experiences (coverage counseling, billing reminders) to create seamless experiences and connection with customers. Expect moderating renewal price changes to alleviate pressure on retention.

    Potential impacts of tariffs on auto loss costs.Q4 FY25 and FY26

    Very negligible impact in Q3 FY25 and for the whole year.

    Mitigation: Will make appropriate trend picks for loss costs in 2026, considering any tariff pressure, but do not expect significant impact.

    Increased utilization of paid family and medical leave products.Q3 FY25 and ongoing

    Some increase in utilization.

    Mitigation: Pricing this into renewals and new business. Expect utilization to level out in the next couple of years.

    Market competition leading to lower margins in certain lines.Ongoing

    Mentioned pulling back in public D&O and large property where margins aren't there.

    Mitigation: Disciplined underwriting, using advanced tools and data science to identify profitable opportunities and 'draw lines in the sand' when margins are insufficient. Watching the London market closely.

    What to watch in Q4 FY25

    5

    Personal Auto Pricing Moderation

    Q4 FY25 and early 2026
    Current11.3% renewal written pricing in Q3 FY25
    TargetDrop into high single digits in Q4 FY25, continue to moderate in early 2026

    Why it matters

    Moderating pricing is expected to alleviate pressure on retention and PIF growth in Personal Lines, which is currently impacted by a competitive market.

    I think by the fourth quarter, those loss -- or those pricing numbers will probably drop into the high single -- single digits, and will continue then to moderate in early '26 and throughout '26, which gives us, again, the opportunity to be competitive and try to grow our PIF count.

    Q&A highlights

    6

    Inquired about the sustainability of recent workers' comp price increases and the current rate vs. trend status.

    Management stated that the workers' comp market remains consistent, with a negligible price increase of 0.4 points. They do not foresee meaningful rate increases in 2026 due to the line's high profitability and stable loss trends, except for specific states with outsized loss trends.

    I would say the workers' comp market remains consistent. When we talked about pricing this quarter, it was really up 0.4 from a slight negative to a slight positive. So that's really not a meaningful move.

    asked by Brian Meredith · answered by Christopher Swift

    2 min read6 chapters

    Detailed Narrative

    01

    Record Core Earnings and ROE

    The Hartford achieved record core earnings of $1.1 billion or $3.78 per diluted share in Q3 FY25, contributing to an outstanding trailing 12-month core earnings ROE of 18.4%. These results underscore the company's strong franchise and effective execution of its strategy, maintaining robust margins while growing the top line in a dynamic market.

    02

    Business Insurance Growth and Profitability

    Business Insurance demonstrated excellent growth with 9% written premium increase and an underlying combined ratio of 89.4%. Small Business led with 11% written premium growth and an 89.8% underlying combined ratio, driven by record new business and strong performance in package products and auto. E&S binding also saw exceptional growth, up 47% to over $100 million in the quarter.

    03

    Personal Insurance Improvement and Prevail Rollout

    Personal Insurance continued its improvement, with an underlying combined ratio of 90%, a 3.7-point year-over-year improvement. Homeowners had a strong quarter with 10% written premium growth and a mid-70s underlying combined ratio. The Prevail agency product was introduced to retail distribution in 6 states, with plans for 30 state launches by early 2027, aiming to enhance competitive positioning and drive future growth.

    04

    Disciplined Pricing and Loss Trends

    Business Insurance renewal written pricing, excluding workers' compensation, was 7.3%, remaining above overall loss trend. Management emphasized disciplined pricing, particularly in liability-related lines like commercial auto, primary GL, excess, and umbrella, where rates are in high single to low double digits. Workers' compensation pricing saw a slight increase but remains largely stable with predictable loss trends.

    05

    Capital Management and Ratings Upgrades

    The company announced a 15% increase in its common quarterly dividend to $0.60 per share, reflecting confidence in sustained earnings power and capital generation. S&P and Moody's upgraded The Hartford's debt and financial strength ratings, citing effective risk selection, sophisticated pricing strategies, and well-diversified revenues and earnings.

    06

    Technology Investments and Strategic Focus

    The Hartford continues to invest significantly in technology, with an annual IT budget of $1.3 billion, including over $500 million for investment. Key initiatives include migrating data and applications to the cloud (fourth year of a six-year journey) and rolling out AWS Connect across all service centers by H1 2026. These investments aim to augment human talent, create frictionless customer experiences, and differentiate the company in the marketplace.

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