The Hartford Q3 2024 Earnings Report
Key Takeaways
The Hartford reported a strong third quarter in 2024, with net income available to common stockholders increasing by 18% to $761 million, or $2.56 per diluted share. Core earnings also rose by 6% to $752 million, or $2.53 per diluted share. The company benefited from growth in written premiums, higher net investment income, and improvements in the P&C current accident year loss ratio. The company returned $538 million to stockholders through share repurchases and dividends and increased the quarterly common dividend per share by 11%.
Net income available to common stockholders increased 18% to $761 million, or $2.56 per diluted share.
Core earnings increased 6% to $752 million, or $2.53 per diluted share.
Property & Casualty (P&C) written premiums rose 10%, driven by Commercial Lines and Personal Lines premium growth.
The company returned $538 million to stockholders through share repurchases and dividends and increased the quarterly common dividend per share by 11%.
The Hartford
The Hartford
The Hartford Revenue by Segment
Forward Guidance
The Hartford's franchise is well-positioned to sustain industry-leading financial performance and create value for all stakeholders.
Positive Outlook
- Strong capital generation.
- Excellent quarter with a trailing 12-month core earnings ROE of 17.4 percent.
- Commercial Lines generated strong top-line growth at highly profitable margins.
- Personal Lines continues to make progress toward restoring target profitability in auto.
- Group Benefits margin remained strong, and all businesses benefited from a consistent contribution from the investment portfolio.
Challenges Ahead
- Industry-wide elevated catastrophe losses.
- Higher expense ratios across P&C and Group Benefits from third quarter 2023, primarily driven by higher incentive compensation and benefits costs, and higher marketing spend in Personal Lines.
- Commercial Lines loss and loss adjustment expense ratio of 61.0 compared with 58.9 in third quarter 2023.
- Global Specialty underlying combined ratio of 85.3 compared with 84.3 in third quarter 2023, primarily due to a higher loss ratio in global reinsurance and a higher expense ratio.
- Group disability loss ratio of 67.9 compared with 67.3 in third quarter 2023, driven by a higher loss ratio in paid family and medical leave products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income