The Hartford Q1 2024 Earnings Report
Key Takeaways
The Hartford announced excellent first quarter 2024 financial results, with a net income of $748 million, or $2.47 per diluted share, a 41% increase from Q1 2023. Core earnings were $709 million, or $2.34 per diluted share, up 32% from the same period last year. The company's Commercial Lines continues to generate strong top-line growth, Personal Lines results are improving, and Group Benefits margins remained solid.
Net income available to common stockholders increased 41% to $748 million ($2.47 per diluted share).
Core earnings increased 32% to $709 million ($2.34 core earnings per diluted share).
P&C written premiums rose 9%, driven by Commercial Lines and Personal Lines premium growth.
Returned $491 million to stockholders through share repurchases and dividends.
The Hartford
The Hartford
The Hartford Revenue by Segment
Forward Guidance
The Hartford is off to a strong start in 2024, with first quarter results reflecting consistency in performance and stability of margins. The company is confident in its ability to grow the franchise and deliver enhanced value for shareholders with an industry-leading ROE.
Positive Outlook
- Commercial Lines continues to generate strong top-line growth at highly profitable margins.
- Personal Lines results demonstrate progress towards restoring target profitability in auto.
- Group Benefits margins remained solid.
- Pricing, excluding workers’ compensation, accelerated to 9 percent in the quarter and remains above loss cost trends.
- Personal Lines achieved written price increases in auto of nearly 26 percent.
Challenges Ahead
- Elevated but moderating loss trends in auto and homeowners.
- Lower effective policy count retention, driven by auto, due to renewal written price increases.
- Mutual fund and ETF net outflows totaled $2.5 billion.
- Lower group life sales, partially offset by an increase in group disability sales.
- Lower income from limited partnerships and other alternative investments (LPs).
Revenue & Expenses
Visualization of income flow from segment revenue to net income