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Dec 31, 2023

The Hartford Q4 2023 Earnings Report

The Hartford reported outstanding financial results driven by effective strategy and consistent execution.

Key Takeaways

The Hartford announced strong Q4 and full year 2023 results, with net income available to common stockholders increasing by 30% to $766 million ($2.51 per diluted share) compared to Q4 2022. Core earnings also rose by 25% to $935 million ($3.06 core earnings per diluted share). The company's performance was driven by exceptional underwriting in Commercial Lines, record core earnings from Group Benefits, and solid investment portfolio performance.

Net income available to common stockholders increased 30% to $766 million, or $2.51 per diluted share.

Core earnings increased 25% to $935 million, or $3.06 per diluted share.

Property & Casualty (P&C) written premiums rose 10%, driven by Commercial Lines and Personal Lines premium growth.

Group Benefits fully insured ongoing premium growth of 6%.

Total Revenue
$6.4B
Previous year: $6.02B
+6.4%
EPS
$3.06
Previous year: $2.31
+32.5%
Group Benefits Expense Ratio
24.2%
Previous year: 25%
-3.2%
Group Benefits Loss ratio
69.9%
Previous year: 73.6%
-5.0%
Gross Profit
$6.4B
Previous year: $6.02B
+6.4%
Cash and Equivalents
$189M
Previous year: $344M
-45.1%
Free Cash Flow
$1.56B
Previous year: $1.03B
+51.6%
Total Assets
$69.7B
Previous year: $73B
-4.6%

The Hartford

The Hartford

The Hartford Revenue by Segment

Forward Guidance

The Hartford is well-positioned to sustain its exceptional performance in 2024, driven by its diverse portfolio, ongoing investments in growth and innovation, and commitment to delivering for customers.

Positive Outlook

  • Diverse and complementary portfolio of businesses
  • Ongoing investments in growth and innovation
  • Sustained double-digit written pricing increases in Personal Lines
  • Exceptional underwriting in Commercial Lines
  • Strong persistency and new business sales in Group Benefits

Challenges Ahead

  • Higher severity in auto liability and physical damage in Personal Lines
  • Decrease in income from limited partnerships and other alternative investments
  • Modestly lower effective policy count retention due to renewal written price increases
  • Decrease in large account sales in Group Benefits
  • Potential for unfavorable loss development

Revenue & Expenses

Visualization of income flow from segment revenue to net income