The Hartford Financial Services Group Inc (HIG) Q4 2024 Earnings Call Highlights: Strong …

• Core Earnings: $865 million for the quarter, $2.94 per diluted share.

• Full-Year Core Earnings ROE: 16.7%.

• Commercial Lines Written Premium Growth: 6% for the quarter.

• Commercial Lines Underlying Combined Ratio: 87.1% for the quarter.

• Small Commercial Written Premium Growth: 9% for the quarter.

• Small Commercial Underlying Combined Ratio: 86.7% for the quarter.

• Middle and Large Commercial Underlying Combined Ratio: 90.2% for the quarter.

• Global Specialty Underlying Combined Ratio: 83.6% for the quarter.

• Personal Lines Core Earnings: $155 million for the quarter.

• Personal Lines Underlying Combined Ratio: 90.2% for the quarter.

• Auto Written Pricing Increases: 19.1% for the quarter.

• Homeowners Written Pricing Increases: 13.9% for the quarter.

• Group Benefits Core Earnings Margin: 7.8% for the quarter.

• Net Investment Income: $714 million for the quarter.

• Share Repurchases: 3.4 million shares for $400 million during the quarter.

• Warning! GuruFocus has detected 6 Warning Sign with STEL.

Release Date: January 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• The Hartford Financial Services Group Inc (NYSE:HIG) reported strong top-line growth in Commercial Lines, with a 6% increase for the quarter and 9% for the year.

• Personal Lines achieved significant improvement, with a 9.3-point enhancement in the underlying combined ratio for the quarter.

• Group Benefits delivered an impressive core earnings margin of 7.8% for the quarter and 8.2% for the year.

• The investment portfolio continues to generate solid performance, contributing to a core earnings ROE of 16.7% for the year.

• The company achieved a record-breaking written premium of $5.5 billion in Small Commercial, maintaining a sub-90 underlying combined ratio for the 18th consecutive quarter.

• The Hartford Financial Services Group Inc (NYSE:HIG) strengthened its general liability reserves by $130 million before tax due to increased settlement costs and higher attorney representation rates.

• The Personal Lines expense ratio increased by 1.9 points, driven by higher direct marketing costs, staffing costs, and commissions.

• The company faced a net unfavorable prior accident year development of $97 million before tax, primarily due to asbestos and environmental development.

• The Group Benefits disability loss ratio increased to 66.9%, driven by higher loss ratios in paid family and medical leave products.

• The company is closely monitoring potential losses from the California wildfires, which could impact its reinsurance programs.