The Hartford Q2 2024 Earnings Report
Key Takeaways
The Hartford reported outstanding second-quarter 2024 financial results, with a 35% increase in net income available to common stockholders, reaching $733 million, and a 28% increase in core earnings, totaling $750 million. The company's performance was driven by strong growth in P&C written premiums, an improved combined ratio in Commercial Lines, and a stellar core earnings margin in Group Benefits. A new $3.3 billion share repurchase program was authorized, effective from August 1, 2024, through the end of 2026.
Net income available to common stockholders increased by 35% to $733 million, or $2.44 per diluted share.
Core earnings increased by 28% to $750 million, or $2.50 per diluted share.
P&C written premiums rose by 12%, driven by Commercial Lines and Personal Lines premium growth.
The Board of Directors authorized a new $3.3 billion share repurchase program.
The Hartford
The Hartford
The Hartford Revenue by Segment
Forward Guidance
The Hartford did not provide specific forward guidance in this earnings report. The report highlights the company's confidence in its ability to continue growing the franchise and enhancing shareholder value.
Positive Outlook
- Commercial Lines maintained robust top-line growth at highly profitable margins.
- Personal Lines continues to make great strides towards restoring target profitability in auto.
- Group Benefits achieved a stellar 10 percent core earnings margin during the quarter.
- Pricing, excluding workers’ compensation, accelerated to 9.5 percent in the quarter and remains above loss cost trends.
- Personal Lines achieved written price increases in auto of nearly 24 percent.
Challenges Ahead
- Increase in severity in auto and homeowners as expected.
- Lower effective policy count retention, driven by auto, due to renewal written price increases.
- Fully insured ongoing sales were $101 million in second quarter 2024, compared with $151 million in second quarter 2023, driven by lower group disability and group life sales.
- Mutual fund and ETF net outflows totaled $1.1 billion in second quarter 2024, compared with net outflows of $1.3 billion in second quarter 2023.
- Lower income from limited partnerships and other alternative investments (LPs).
Revenue & Expenses
Visualization of income flow from segment revenue to net income