Board Authorized New $3.3 Billion Share Repurchase Program
- Second quarter 2024 net income available to common stockholders
of $733 million ($2.44 per diluted share) increased 35% from $542
million ($1.73 per diluted share) over the same period in 2023.
Core earnings* of $750 million ($2.50 core earnings per diluted
share*) increased 28% from $588 million ($1.88 core earnings per
diluted share) over the same period in 2023.
- Net income ROE of 19.8% and core earnings ROE* of 17.4%.
- Property & Casualty (P&C) written premiums rose 12% in
second quarter 2024, driven by Commercial Lines and Personal Lines
premium growth of 11% and 14%, respectively.
- Commercial Lines second quarter combined ratio of 89.8 and
underlying combined ratio* of 87.4.
- P&C current accident year (CAY) catastrophe (CAT) losses in
second quarter 2024 of $280 million, before tax, or 7.1 points on
the combined ratio, compared with $226 million, or 6.2 points on
the combined ratio, in second quarter 2023.
- Group Benefits second quarter net income margin of 9.7% and
core earnings margin* of 10.0%.
- Board of Directors authorized a new $3.3 billion share
repurchase program, effective from Aug. 1, 2024, through the end of
2026.
* Denotes financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP
measures can be found in this news release under the heading
Discussion of Non-GAAP Financial Measures.
** All amounts and percentages set forth in this news release
are approximate unless otherwise noted.
The Hartford (NYSE: HIG) today announced financial results for
the second quarter ended June 30, 2024.
“The Hartford’s second quarter 2024 financial results were
outstanding with a trailing 12-month core earnings ROE of 17.4
percent,” said The Hartford’s Chairman and CEO Christopher Swift.
“Commercial Lines maintained robust top-line growth at highly
profitable margins. Personal Lines continues to make great strides
towards restoring target profitability in auto and Group Benefits
achieved a stellar 10 percent core earnings margin during the
quarter.”
The Hartford's Chief Financial Officer Beth Costello said,
“Commercial Lines had an exceptional quarter with an underlying
combined ratio of 87.4. 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 and Group Benefits continued to
outperform with record core earnings, driven by strong performance
in life and disability."
Swift continued, “The excellent financial performance in the
first half of 2024 reflects the effectiveness of our strategy and
on-going investments to differentiate The Hartford in the
marketplace. With continued strong capital generation from our
businesses, we are pleased to announce a new share repurchase
authorization of $3.3 billion. I remain confident in our ability to
continue to grow the franchise while enhancing shareholder value
with an industry-leading ROE."
CONSOLIDATED RESULTS:
Three Months Ended
($ in millions except per share data)
Jun 30 2024
Jun 30 2023
Change
Net income available to common
stockholders
$733
$542
35%
Net income available to common
stockholders per diluted share1
$2.44
$1.73
41%
Core earnings
$750
$588
28%
Core earnings per diluted share
$2.50
$1.88
33%
Book value per diluted share
$51.43
$44.43
16%
Book value per diluted share (ex.
accumulated other comprehensive income (AOCI))2
$61.71
$55.76
11%
Net income available to common
stockholders' return on equity (ROE)3, last 12-months
19.8%
14.4%
5.4
Core earnings ROE3, last
12-months
17.4%
13.6%
3.8
[1] Includes dilutive potential common shares; for net income
available to common stockholders per diluted share, the numerator
is net income less preferred dividends [2] Denotes financial
measure not calculated in accordance with generally accepted
accounting principles (non-GAAP); definitions of non-GAAP measures
and reconciliations to their closest GAAP measures can be found in
this news release under the heading Discussion of Non-GAAP
Financial Measures [3] Return on equity (ROE) is calculated based
on last 12-months net income available to common stockholders and
core earnings, respectively; for net income ROE, the denominator is
common stockholders’ equity including AOCI; for core earnings ROE,
the denominator is common stockholders’ equity excluding AOCI
Second quarter 2024 net income available to common stockholders
of $733 million, or $2.44 per diluted share, improved from $542
million in second quarter 2023, primarily due to a higher P&C
underwriting gain, higher net investment income, and an improvement
in the Group Benefits loss ratio, driven by group life results.
Included in the second quarter 2024 net income was a benefit of $37
million, before tax, from amortization of a deferred gain on
retroactive reinsurance related to an adverse development cover for
Navigators pertaining to 2018 and prior accident years (Navigator’s
ADC).
Second quarter 2024 core earnings of $750 million, or $2.50 per
diluted share, compared with $588 million of core earnings in
second quarter 2023. Contributing to the results were:
- An increase in earnings generated by 9% growth in P&C
earned premium.
- Net favorable prior accident year development (PYD) in core
earnings of $78 million, before tax, in 2024 compared with net
favorable PYD of $39 million in core earnings in 2023. Net
favorable PYD in second quarter 2024 primarily included reserve
reductions in workers’ compensation, catastrophes, personal lines,
and bond, partially offset by reserve increases in general
liability, assumed reinsurance, and commercial auto liability.
- Commercial Lines loss and loss adjustment expense ratio of 58.4
improved 1.3 points compared with 59.7 in second quarter 2023,
including 1.3 points of more favorable PYD and 0.7 points of higher
CATs. Underlying loss and loss adjustment expense ratio* of 56.1
compared with 56.8 in second quarter 2023, with the improvement
largely due to lower non-CAT property losses.
- Personal Lines loss and loss adjustment expense ratio of 81.0
improved 8.2 points compared with 89.2 in second quarter 2023,
including 3.6 points of more favorable PYD and 1.1 points of higher
CATs. Underlying loss and loss adjustment expense ratio of 70.3
compared with 76.1 in second quarter 2023, with the improvement
largely due to the impact of earned pricing increases, partially
offset by an increase in severity in auto and homeowners as
expected.
- P&C CAY CAT losses of $280 million, before tax, in second
quarter 2024, compared with CAY CAT losses of $226 million in
second quarter 2023.
- Group Benefits loss ratio of 68.9 improved 3.2 points compared
with 72.1 due to lower claim severity in group life, lower
long-term disability claim incidence and a higher New York paid
family leave risk adjustment benefit, partially offset by a higher
loss ratio in paid family and medical leave products.
- Net investment income of $602 million, before tax, compared
with $540 million in second quarter 2023, primarily driven by
higher invested assets and higher yields on our fixed income
portfolio.
June 30, 2024, book value per diluted share of $51.43 increased
4.0%, from $49.43 at Dec. 31, 2023, principally due to net income
in excess of stockholder dividends through June 30, 2024, partially
offset by the dilutive effect of share repurchases and greater net
unrealized losses on investments within AOCI driven by higher
interest rates.
Book value per diluted share (excluding AOCI) of $61.71 as of
June 30, 2024, increased 4.9%, from $58.83 at Dec. 31, 2023, as the
impact from net income in excess of stockholder dividends through
June 30, 2024, was partially offset by the dilutive effect of share
repurchases.
Net income available to common stockholders' ROE (net income
ROE) for the 12-month period ending June 30, 2024, was 19.8%, an
increase of 5.4 points from second quarter 2023, primarily due to
an increase in 12-month trailing net income available to common
stockholders, and an increase in average net unrealized losses on
investments in AOCI.
Core earnings ROE for the 12-month period ending June 30, 2024,
was 17.4%, an increase of 3.8 points from second quarter 2023 due
to higher trailing 12-month core earnings.
BUSINESS RESULTS:
Commercial Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net income
$540
$458
18%
Core earnings
$551
$493
12%
Written premiums
$3,540
$3,177
11%
Underwriting gain1
$319
$254
26%
Underlying underwriting gain1
$393
$339
16%
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
56.1
56.8
(0.7)
Current accident year catastrophes
5.0
4.3
0.7
Favorable prior accident year
development
(2.6)
(1.3)
(1.3)
Expenses
31.1
31.3
(0.2)
Policyholder dividends
0.3
0.2
0.1
Combined ratio
89.8
91.2
(1.4)
Impact of catastrophes and PYD on combined
ratio
(2.4)
(3.0)
0.6
Underlying combined ratio
87.4
88.3
(0.9)
[1] Denotes financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP
measures can be found in this news release under the heading
Discussion of Non-GAAP Financial Measures
Second quarter 2024 net income of $540 million compared with net
income of $458 million in second quarter 2023, principally due to
the impact of earned premium growth, more favorable PYD, higher net
investment income, and an improved underlying loss and loss
adjustment expense ratio, partially offset by higher CAY CAT
losses. PYD includes a $37 million, before-tax, benefit due to the
amortization of the deferred gain related to the Navigators
ADC.
Commercial Lines core earnings of $551 million in second quarter
2024 compared with $493 million in second quarter 2023.
Contributing to the results were:
- 8% growth in earned premium.
- Net investment income of $402 million, before tax, compared
with $364 million in second quarter 2023.
- An underlying loss and loss adjustment expense ratio of 56.1,
in second quarter 2024 compared with 56.8 in second quarter 2023,
with the improvement primarily driven by lower non-CAT property
losses.
- Net favorable PYD within core earnings of $44 million, before
tax, in second quarter 2024, compared with $38 million of net
favorable PYD within core earnings in second quarter 2023. The net
favorable PYD in second quarter 2024 primarily includes reserve
reductions in workers’ compensation, catastrophes, and bond,
partially offset by reserve increases in general liability, assumed
reinsurance, and auto liability.
- CAY CAT losses of $155 million, before tax, in second quarter
2024, primarily from tornado, wind and hail events across several
regions of the United States, but concentrated in the South and
Midwest, up from CAY CAT losses of $123 million in second quarter
2023.
Combined ratio of 89.8 in second quarter 2024, improved from
91.2 in second quarter 2023, primarily due to a 1.3 point
improvement in the loss and loss adjustment expense ratio,
including 1.3 points of more favorable PYD (including 1.2 points of
favorable development related to the amortization of the deferred
gain) partially offset by 0.7 points of higher CAY CAT losses.
Underlying combined ratio of 87.4 improved from 88.3 in second
quarter 2023 primarily due to a 0.7 point decrease in the
underlying loss and loss adjustment expense ratio.
- Small Commercial combined ratio of 88.7 improved from 90.8 in
second quarter 2023, including 0.3 points of less favorable PYD and
0.4 points of higher CAY CATs. Underlying combined ratio of 86.8
compared with 89.7 in second quarter 2023 primarily due to lower
non-CAT property losses.
- Middle & Large Commercial combined ratio of 95.9 compared
with 93.6 in second quarter 2023, driven by 1.0 points of higher
CAY CATs and 0.3 points of more unfavorable PYD. Underlying
combined ratio of 89.6 compared with 88.7 in second quarter 2023,
primarily due to higher non-CAT property losses compared with a
favorable non-CAT experience in the prior year, partially offset by
a lower expense ratio.
- Global Specialty combined ratio of 83.4 compared with 87.3 in
second quarter 2023, driven by 5.0 points of more favorable PYD,
partially offset by 0.9 points of higher CAY CATs. The combined
ratio included 4.4 points of favorable development due to the
amortization of the deferred gain related to the Navigators ADC.
Underlying combined ratio of 85.2 compared with 85.0 in second
quarter 2023.
Second quarter 2024 written premiums of $3.5 billion were up 11%
from second quarter 2023, with increases across the segment, strong
double-digit new business growth in Small Commercial and Middle
Market, and the effect of renewal written price increases.
Personal Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net loss
($11)
$(60)
82%
Core loss
($4)
$(57)
93%
Written premiums
$913
$802
14%
Underwriting loss
$(63)
$(113)
44%
Underlying underwriting gain
(loss)
$28
$(13)
NM
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
70.3
76.1
(5.8)
Current accident year catastrophes
14.7
13.6
1.1
Favorable prior accident year
development
(4.0)
(0.4)
(3.6)
Expenses
26.4
25.7
0.7
Combined ratio
107.4
114.9
(7.5)
Impact of catastrophes and PYD on combined
ratio
(10.7)
(13.2)
2.5
Underlying combined ratio
96.7
101.7
(5.0)
Net loss of $11 million in second quarter 2024 improved from a
net loss of $60 million in second quarter 2023, driven by improved
underwriting results and an increase in net investment income.
Contributing to the improved underwriting results was the impact of
higher earned premium and a lower loss and loss adjustment expense
ratio of 81.0 compared with 89.2 in second quarter 2023.
Personal Lines core loss of $4 million improved from a core loss
of $57 million in second quarter 2023. Contributing to the results
were:
- 12% growth in earned premium.
- An underlying loss and loss adjustment expense ratio of 70.3 in
second quarter 2024 improved from 76.1 in second quarter 2023,
primarily driven by the impact of earned pricing increases,
partially offset by an increase in severity in auto and homeowners
as expected.
- $34 million, before tax, of favorable PYD in second quarter of
2024, compared with $3 million favorable PYD in second quarter
2023. The net favorable PYD in second quarter 2024 is driven by
reserve reductions in auto liability related to property damage,
homeowners and auto physical damage.
- Net investment income of $50 million, before tax, in second
quarter 2024 compared with $34 million in second quarter 2023.
- CAY CAT losses of $125 million, before tax, in second quarter
2024, primarily from tornado, wind and hail events across several
regions of the United States, but concentrated in the South and
Midwest, up from $103 million of CAY CAT losses in second quarter
2023.
Combined ratio of 107.4 in second quarter 2024, improved from
114.9 in second quarter 2023, primarily due to an 8.2 point
improvement in the loss and loss adjustment expense ratio,
including 3.6 points of more favorable PYD and a 5.8 point
improvement in the underlying loss and loss adjustment expense
ratio, partially offset by 1.1 points of higher CAY CAT losses.
Underlying combined ratio of 96.7 improved from 101.7 in second
quarter 2023, primarily due to improvement in the underlying loss
and loss adjustment expense ratio in auto and homeowners, partially
offset by a 0.7 point increase in the expense ratio, largely driven
by higher marketing expenses.
- Auto combined ratio of 105.4 improved from 116.4 in second
quarter 2023. The underlying combined ratio of 104.9 improved from
111.8 in second quarter 2023, primarily due to the impact of
double-digit earned pricing increases, partially offset by higher
marketing expenses and an increase in auto liability and physical
damage claim severity as expected.
- Homeowners combined ratio of 114.5 improved from 115.1 in
second quarter 2023. The underlying combined ratio of 77.8 improved
from 79.6 in second quarter 2023, primarily due to the impact of
double-digit earned pricing and favorable weather and non-weather
frequency, partially offset by higher marketing expenses and
elevated weather and non-weather severity.
Written premiums in second quarter 2024 were $913 million
compared with $802 million in second quarter 2023 with:
- Renewal written price increases in auto and homeowners of 23.5%
and 14.9%, respectively, in response to elevated loss cost
trends.
- An increase in new business in both auto and homeowners from
second quarter 2023 of $30 million, or 58%, and $25 million, or
114%, respectively.
- Lower effective policy count retention, driven by auto, due to
renewal written price increases.
Group Benefits
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net income
$171
$121
41%
Core earnings
$178
$133
34%
Fully insured ongoing premiums
$1,607
$1,574
2%
Loss ratio
68.9%
72.1%
(3.2)
Expense ratio
24.4%
24.5%
(0.1)
Net income margin
9.7%
7.0%
2.7
Core earnings margin
10.0%
7.6%
2.4
Net income of $171 million in second quarter 2024 increased from
$121 million in second quarter 2023, largely driven by improvement
in the group life loss ratio. Core earnings were $178 million, up
from $133 million in second quarter 2023, consistent with the
growth in net income.
Fully insured ongoing premiums were up 2% compared with second
quarter 2023, including an increase in exposure on existing
accounts, new business sales, and persistency in excess of 90%,
though slightly below the prior year period. 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.
Loss ratio of 68.9 improved from 72.1 in second quarter
2023.
- Group life loss ratio of 74.9 improved 9.2 points largely
driven by lower claim severity experience.
- Group disability loss ratio of 67.1 was essentially flat with
second quarter 2023, driven by lower long-term disability claim
incidence and a higher New York paid family leave risk adjustment
benefit, offset primarily by a higher loss ratio in paid family and
medical leave products.
Net investment income of $112 million, before tax, compared with
$113 million in second quarter 2023.
Hartford Funds
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net income
$44
$45
(2)%
Core earnings
$43
$44
(2)%
Daily average Hartford Funds
AUM
$134,064
$127,540
5%
Mutual Funds and exchange-traded funds
(ETF) net flows
$(1,085)
$(1,256)
14%
Total Hartford Funds AUM
$135,518
$129,906
4%
Second quarter 2024 net income of $44 million, compared with $45
million in second quarter 2023, primarily due to a slight decrease
in fee income net of operating costs and other expenses, partially
offset by higher net realized gains and higher net investment
income.
Core earnings of $43 million compared with $44 million in second
quarter 2023, primarily due to a slight decrease in fee income net
of operating costs and other expenses, partially offset by higher
net investment income.
Daily average AUM of $134 billion in second quarter 2024
increased 5% from second quarter 2023.
Mutual fund and ETF net outflows totaled $1.1 billion in second
quarter 2024, compared with net outflows of $1.3 billion in second
quarter 2023.
Corporate
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net loss
$(17)
$(26)
35%
Net loss available to common
stockholders
$(22)
$(31)
29%
Core loss
$(32)
$(35)
9%
Net investment income, before
tax
$14
$8
75%
Interest expense and preferred
dividends, before tax
$55
$55
—%
Net loss available to common stockholders of $22 million in
second quarter 2024 compared with $31 million in second quarter
2023, primarily due to higher net investment income in the 2024
period and restructuring costs in the 2023 period, partially offset
by a decrease in realized capital gains.
Second quarter 2024 core loss of $32 million compared with a
second quarter 2023 core loss of $35 million, primarily due to an
increase in net investment income.
INVESTMENT INCOME AND PORTFOLIO DATA:
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2024
Jun 30 2023
Change
Net investment income, before
tax
$602
$540
11%
Annualized investment yield, before
tax
4.1%
3.9%
0.2
Annualized investment yield, before
tax, excluding LPs1
4.4%
4.0%
0.4
Annualized LP yield, before tax
1.3%
2.9%
(1.6)
Annualized investment yield, after
tax
3.3%
3.1%
0.2
[1] Denotes financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP
measures can be found in this news release under the heading
Discussion of Non-GAAP Financial Measures
Second quarter 2024 consolidated net investment income of $602
million compared with $540 million in second quarter 2023,
primarily due to a higher level of invested assets, the impact of
reinvesting at higher rates, and a higher yield on variable-rate
securities, partially offset by lower income from limited
partnerships and other alternative investments (LPs).
Second quarter 2024 included $16 million, before tax, of LP
income as compared with $32 million in second quarter 2023.
Annualized LP yield, before tax, of 1.3% compared to 2.9% in second
quarter 2023. Lower LP income was primarily driven by lower returns
on real estate joint ventures.
Net realized losses of $59 million, before tax, in second
quarter 2024 compared with net realized losses of $64 million,
before tax, in second quarter 2023.
Total invested assets of $56.9 billion increased $1.0 billion
from Dec. 31, 2023, primarily due to a net increase in book value,
partially offset by lower valuations on fixed maturities driven by
an increase in interest rates net of credit spread tightening.
CONFERENCE CALL
The Hartford will discuss its second quarter and full year 2024
financial results on a webcast at 9:00 a.m. EDT on Friday, July 26,
2024. The call can be accessed via a live listen-only webcast or as
a replay through the Investor Relations section of The Hartford's
website at https://ir.thehartford.com.
The replay will be accessible approximately one hour after the
conclusion of the call and be available along with a transcript of
the event for at least one year.
More detailed financial information can be found in The
Hartford's Investor Financial Supplement for June 30, 2024, and the
second quarter 2024 Financial Results Presentation, both of which
are available at https://ir.thehartford.com.
About The Hartford
The Hartford is a leader in property and casualty insurance,
group benefits and mutual funds. With more than 200 years of
expertise, The Hartford is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at https://www.thehartford.com.
The Hartford Financial Services Group, Inc., (NYSE: HIG)
operates through its subsidiaries under the brand name, The
Hartford, and is headquartered in Hartford, Connecticut. For
additional details, please read https://www.thehartford.com/legal-notice.
HIG-F
From time to time, The Hartford may use its website and/or
social media channels to disseminate material company information.
Financial and other important information regarding The Hartford is
routinely accessible through and posted on our website at
https://ir.thehartford.com. In
addition, you may automatically receive email alerts and other
information about The Hartford when you enroll your email address
by visiting the “Email Alerts” section at https://ir.thehartford.com.
THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
CONSOLIDATING INCOME
STATEMENTS
Three Months Ended June 30,
2024
($ in millions)
Commercial Lines
Personal Lines
P&C Other
Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$
3,121
$
849
$
—
$
1,608
$
—
$
—
$
5,578
Fee income
11
8
—
57
253
10
339
Net investment income
402
50
19
112
5
14
602
Net realized gains (losses)
(50
)
(8
)
(3
)
(9
)
3
8
(59
)
Other revenue
—
25
—
—
—
1
26
Total revenues
3,484
924
16
1,768
261
33
6,486
Benefits, losses, and loss adjustment
expenses
1,824
688
—
1,147
—
2
3,661
Amortization of DAC
489
63
—
9
—
—
561
Insurance operating costs and other
expenses
494
188
2
387
203
11
1,285
Restructuring and other costs
—
—
—
—
—
—
—
Interest expense
—
—
—
—
—
50
50
Amortization of other intangible
assets
7
—
—
10
—
—
17
Total benefits, losses and
expenses
2,814
939
2
1,553
203
63
5,574
Income (loss) before income
taxes
670
(15
)
14
215
58
(30
)
912
Income tax expense (benefit)
130
(4
)
3
44
14
(13
)
174
Net income (loss)
540
(11
)
11
171
44
(17
)
738
Preferred stock dividends
—
—
—
—
—
5
5
Net income (loss) available to common
stockholders
540
(11
)
11
171
44
(22
)
733
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses (gains), excluded from
core earnings, before tax
50
9
3
9
(3
)
(10
)
58
Integration and other non-recurring
M&A costs, before tax
2
—
—
—
—
—
2
Change in deferred gain on retroactive
reinsurance, before tax
(37
)
—
—
—
—
—
(37
)
Income tax expense (benefit)
(4
)
(2
)
—
(2
)
2
—
(6
)
Core earnings (loss)
$
551
$
(4
)
$
14
$
178
$
43
$
(32
)
$
750
THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
CONSOLIDATING INCOME
STATEMENTS
Three Months Ended June 30,
2023
($ in millions)
Commercial Lines
Personal Lines
P&C Other
Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$
2,886
$
760
$
—
$
1,574
$
—
$
—
$
5,220
Fee income
10
7
—
56
244
11
328
Net investment income
364
34
17
113
4
8
540
Net realized gains (losses)
(51
)
(5
)
(1
)
(19
)
1
11
(64
)
Other revenue
1
24
—
—
—
—
25
Total revenues
3,210
820
16
1,724
249
30
6,049
Benefits, losses, and loss adjustment
expenses
1,723
678
2
1,175
—
2
3,580
Amortization of DAC
436
57
—
9
—
—
502
Insurance operating costs and other
expenses
477
162
2
381
192
11
1,225
Restructuring and other costs
—
—
—
—
—
3
3
Interest expense
—
—
—
—
—
50
50
Amortization of other intangible
assets
7
—
—
10
—
—
17
Total benefits, losses and
expenses
2,643
897
4
1,575
192
66
5,377
Income (loss) before income
taxes
567
(77
)
12
149
57
(36
)
672
Income tax expense (benefit)
109
(17
)
3
28
12
(10
)
125
Net income (loss)
458
(60
)
9
121
45
(26
)
547
Preferred stock dividends
—
—
—
—
—
5
5
Net income (loss) available to common
stockholders
458
(60
)
9
121
45
(31
)
542
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses (gains), excluded from
core earnings, before tax
43
4
1
16
(1
)
(10
)
53
Restructuring and other costs
—
—
—
—
—
3
3
Integration and other non-recurring
M&A costs, before tax
2
—
—
—
—
—
2
Change in deferred gain on retroactive
reinsurance, before tax
—
—
—
—
—
—
—
Income tax expense (benefit)
(10
)
(1
)
—
(4
)
—
3
(12
)
Core earnings (loss)
$
493
$
(57
)
$
10
$
133
$
44
$
(35
)
$
588
The Hartford defines increases or decreases greater than or
equal to 200%, or changes from a net gain to a net loss position,
or vice versa, as "NM" or not meaningful.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
The Hartford uses non-GAAP financial measures in this news
release to assist investors in analyzing the company's operating
performance for the periods presented herein. Because The
Hartford's calculation of these measures may differ from similar
measures used by other companies, investors should be careful when
comparing The Hartford's non-GAAP financial measures to those of
other companies. Definitions and calculations of other financial
measures used in this news release can be found below and in The
Hartford's Investor Financial Supplement for second quarter 2024,
which is available on The Hartford's website, https://ir.thehartford.com.
Annualized investment yield, excluding
limited partnerships and other alternative investments -
This non-GAAP measure is calculated as (a) the annualized net
investment income, on a Consolidated, P&C or Group Benefits
level, excluding limited partnerships and other alternative
investments, divided by (b) the monthly average invested assets at
amortized cost, as applicable, excluding derivatives book value and
limited partnerships and other alternative investments. The Company
believes that annualized investment yield, excluding limited
partnerships and other alternative investments, provides investors
with an important measure of the trend in investment earnings
because it excludes the impact of the volatility in returns related
to limited partnerships and other alternative investments.
Annualized investment yield is the most directly comparable GAAP
measure. A reconciliation of the annualized investment yield to
annualized investment yield excluding limited partnerships and
other alternatives investments for the quarterly periods ended June
30, 2024 and 2023 is provided in the table below.
Three Months Ended
Jun 30 2024
Jun 30 2023
Consolidated
Annualized investment yield
4.1
%
3.9
%
Adjustment for income from limited
partnerships and other alternative investments
0.3
%
0.1
%
Annualized investment yield excluding
limited partnerships and other alternative investments
4.4
%
4.0
%
Book value per diluted share (excluding
AOCI) - This is a non-GAAP per share measure that is
calculated by dividing (a) common stockholders' equity, excluding
AOCI, after tax, by (b) common shares outstanding and dilutive
potential common shares. The Company provides this measure to
enable investors to analyze the amount of the Company's net worth
that is primarily attributable to the Company's business
operations. The Company believes that excluding AOCI from the
numerator is useful to investors because it eliminates the effect
of items that can fluctuate significantly from period to period,
primarily based on changes in interest rates. Book value per
diluted share is the most directly comparable U.S. GAAP measure. A
reconciliation of book value per diluted share to book value per
diluted share (excluding AOCI) is provided in the table below.
As of
Jun 30 2024
Dec 31 2023
Change
Book value per diluted share
$51.43
$49.43
4.0%
Per diluted share impact of AOCI
$10.28
$9.40
9.4%
Book value per diluted share (excluding
AOCI)
$61.71
$58.83
4.9%
As of
Jun 30 2024
Jun 30 2023
Change
Book value per diluted share
$51.43
$44.43
15.8%
Per diluted share impact of AOCI
$10.28
$11.33
(9.3%)
Book value per diluted share (excluding
AOCI)
$61.71
$55.76
10.7%
Core earnings - The Hartford
uses the non-GAAP measure core earnings as an important measure of
the Company’s operating performance. The Hartford believes that
core earnings provides investors with a valuable measure of the
performance of the Company’s ongoing businesses because it reveals
trends in our insurance and financial services businesses that may
be obscured by including the net effect of certain items.
Therefore, the following items are excluded from core earnings:
- Certain realized gains and losses - Generally realized gains
and losses are primarily driven by investment decisions and
external economic developments, the nature and timing of which are
unrelated to the insurance and underwriting aspects of our
business. Accordingly, core earnings excludes the effect of all
realized gains and losses that tend to be highly variable from
period to period based on capital market conditions. The Hartford
believes, however, that some realized gains and losses are
integrally related to our insurance operations, so core earnings
includes net realized gains and losses such as net periodic
settlements on credit derivatives. These net realized gains and
losses are directly related to an offsetting item included in the
income statement such as net investment income.
- Restructuring and other costs - Costs incurred as part of a
restructuring plan are not a recurring operating expense of the
business.
- Loss on extinguishment of debt - Largely consisting of
make-whole payments or tender premiums upon paying debt off before
maturity, these losses are not a recurring operating expense of the
business.
- Gains and losses on reinsurance transactions - Gains or losses
on reinsurance, such as those entered into upon sale of a business
or to reinsure loss reserves, are not a recurring operating expense
of the business.
- Integration and other non-recurring M&A costs - These
costs, including transaction costs incurred in connection with an
acquired business, are incurred over a short period of time and do
not represent an ongoing operating expense of the business.
- Change in loss reserves upon acquisition of a business - These
changes in loss reserves are excluded from core earnings because
such changes could obscure the ability to compare results in
periods after the acquisition to results of periods prior to the
acquisition.
- Deferred gain resulting from retroactive reinsurance and
subsequent changes in the deferred gain - Retroactive reinsurance
agreements economically transfer risk to the reinsurers and
excluding the deferred gain on retroactive reinsurance and related
amortization of the deferred gain from core earnings provides
greater insight into the economics of the business.
- Change in valuation allowance on deferred taxes related to
non-core components of before tax income - These changes in
valuation allowances are excluded from core earnings because they
relate to non-core components of before tax income, such as tax
attributes like capital loss carryforwards.
- Results of discontinued operations - These results are excluded
from core earnings for businesses sold or held for sale because
such results could obscure the ability to compare period over
period results for our ongoing businesses.
In addition to the above components of net income available to
common stockholders that are excluded from core earnings, preferred
stock dividends declared, which are excluded from net income, are
included in the determination of core earnings. Preferred stock
dividends are a cost of financing more akin to interest expense on
debt and are expected to be a recurring expense as long as the
preferred stock is outstanding.
Net income (loss) and net income (loss) available to common
stockholders are the most directly comparable U.S. GAAP measures to
core earnings. Core earnings should not be considered as a
substitute for net income (loss) or net income (loss) available to
common stockholders and does not reflect the overall profitability
of the Company’s business. Therefore, The Hartford believes that it
is useful for investors to evaluate net income (loss), net income
(loss) available to common stockholders, and core earnings when
reviewing the Company’s performance.
A reconciliation of net income (loss) to core earnings for the
quarterly periods ended June 30, 2024 and 2023, is included in this
news release. A reconciliation of net income (loss) to core
earnings for individual reporting segments can be found in this
news release under the heading "The Hartford Financial Services
Group, Inc. Consolidating Income Statements" and in The Hartford's
Investor Financial Supplement for the quarter ended June 30,
2024.
Core earnings margin - The
Hartford uses the non-GAAP measure core earnings margin to
evaluate, and believes it is an important measure of, the Group
Benefits segment's operating performance. Core earnings margin is
calculated by dividing core earnings by revenues, excluding buyouts
and realized gains (losses). Net income margin, calculated by
dividing net income by revenues, is the most directly comparable
U.S. GAAP measure. The Company believes that core earnings margin
provides investors with a valuable measure of the performance of
Group Benefits because it reveals trends in the business that may
be obscured by the effect of buyouts and realized gains (losses) as
well as other items excluded in the calculation of core earnings.
Core earnings margin should not be considered as a substitute for
net income margin and does not reflect the overall profitability of
Group Benefits. Therefore, the Company believes it is important for
investors to evaluate both core earnings margin and net income
margin when reviewing performance. A reconciliation of net income
margin to core earnings margin for the quarterly periods ended June
30, 2024 and 2023, is set forth below.
Three Months Ended
Margin
Jun 30 2024
Jun 30 2023
Change
Net income margin
9.7%
7.0%
2.7
Adjustments to reconcile net income
margin to core earnings margin:
Net realized gains, before tax
0.4%
0.8%
(0.4)
Integration and other non-recurring
M&A costs, before tax
—%
—%
—
Income tax expense benefit on items
excluded from core earnings
(0.1)%
(0.2)%
0.1
Core earnings margin
10.0%
7.6%
2.4
Core earnings per diluted
share - This non-GAAP per share measure is calculated
using the non-GAAP financial measure core earnings rather than the
GAAP measure net income. The Company believes that core earnings
per diluted share provides investors with a valuable measure of the
Company's operating performance for the same reasons applicable to
its underlying measure, core earnings. Net income (loss) available
to common stockholders per diluted common share is the most
directly comparable GAAP measure. Core earnings per diluted share
should not be considered as a substitute for net income (loss)
available to common stockholders per diluted common share and does
not reflect the overall profitability of the Company's business.
Therefore, the Company believes that it is useful for investors to
evaluate net income (loss) available to common stockholders per
diluted common share and core earnings per diluted share when
reviewing the Company's performance. A reconciliation of net income
available to common stockholders per diluted common share to core
earnings per diluted share for the quarterly periods ended June 30,
2024 and 2023 is provided in the table below.
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common
stockholders per share1
$2.44
$1.73
41%
Adjustments made to reconcile net
income available to common stockholders per diluted share to core
earnings per diluted share:
Net realized losses (gains), excluded from
core earnings, before tax
0.19
0.17
12%
Restructuring and other costs, before
tax
—
0.01
(100)%
Integration and other non-recurring
M&A costs, before tax
0.01
0.01
—%
Change in deferred gain on retroactive
reinsurance, before tax
(0.12)
—
NM
Income tax expense (benefit) on items
excluded from core earnings
(0.02)
(0.04)
50%
Core earnings per diluted share
$2.50
$1.88
33%
[1] Net income available to common
stockholders includes dilutive potential common shares
Core Earnings Return on
Equity - The Company provides different measures of the
return on stockholders' equity (ROE). Core earnings ROE is
calculated based on non-GAAP financial measures. Core earnings ROE
is calculated by dividing (a) the non-GAAP measure core earnings
for the prior four fiscal quarters by (b) the non-GAAP measure
average common stockholders' equity, excluding AOCI. Net income ROE
is the most directly comparable U.S. GAAP measure. The Company
excludes AOCI in the calculation of core earnings ROE to provide
investors with a measure of how effectively the Company is
investing the portion of the Company's net worth that is primarily
attributable to the Company's business operations. The Company
provides to investors return on equity measures based on its
non-GAAP core earnings financial measure for the reasons set forth
in the core earnings definition. A quantitative reconciliation of
net income available to common stockholders ROE to core earnings
ROE is not calculable on a forward-looking basis because it is not
possible to provide a reliable forecast of realized gains and
losses, which typically vary substantially from period to
period.
A reconciliation of consolidated net income available to common
stockholders ROE to consolidated core earnings ROE is set forth
below.
Last Twelve Months
Ended
Jun 30 2024
Jun 30 2023
Net income available to common
stockholders ROE
19.8%
14.4%
Adjustments to reconcile net income
available to common stockholders ROE to core earnings ROE:
Net realized losses excluded from core
earnings, before tax
0.8%
1.5%
Restructuring and other costs, before
tax
—%
0.1%
Integration and other non-recurring
M&A costs, before tax
0.1%
0.1%
Change in deferred gain on retroactive
reinsurance, before tax
0.9%
1.7%
Income tax benefit on items not included
in core earnings
(0.4)%
(0.8)%
Impact of AOCI, excluded from denominator
of core earnings ROE
(3.8)%
(3.4)%
Core earnings ROE
17.4%
13.6%
Underlying combined ratio-
This non-GAAP financial measure of underwriting results represents
the combined ratio before catastrophes, prior accident year
development and current accident year change in loss reserves upon
acquisition of a business. Combined ratio is the most directly
comparable GAAP measure. The Company believes this ratio is an
important measure of the trend in profitability since it removes
the impact of volatile and unpredictable catastrophe losses and
prior accident year loss and loss adjustment expense reserve
development. The changes to loss reserves upon acquisition of a
business are excluded from underlying combined ratio because such
changes could obscure the ability to compare results in periods
after the acquisition to results of periods prior to the
acquisition as such trends are valuable to our investors' ability
to assess the Company's financial performance. A reconciliation of
the combined ratio to the underlying combined ratio for individual
reporting segments can be found in this news release under the
heading "Business Results" for Commercial Lines" and "Personal
Lines". A reconciliation of the combined ratio to underlying
combined ratio for lines of business within the Company's P&C
reporting segments is set forth below.
SMALL COMMERCIAL
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Combined ratio
88.7
90.8
(2.1
)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(6.1
)
(5.7
)
(0.4
)
Prior accident year development
4.2
4.5
(0.3
)
Underlying combined ratio
86.8
89.7
(2.9
)
MIDDLE & LARGE COMMERCIAL
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Combined ratio
95.9
93.6
2.3
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(4.8
)
(3.8
)
(1.0
)
Prior accident year development
(1.4
)
(1.1
)
(0.3
)
Underlying combined ratio
89.6
88.7
0.9
GLOBAL SPECIALTY
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Combined ratio
83.4
87.3
(3.9
)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(3.5
)
(2.6
)
(0.9
)
Prior accident year development
5.3
0.3
5.0
Underlying combined ratio
85.2
85.0
0.2
PERSONAL LINES AUTO
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Combined ratio
105.4
116.4
(11.0
)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(3.6
)
(3.8
)
0.2
Prior accident year development
3.1
(0.8
)
3.9
Underlying combined ratio
104.9
111.8
(6.9
)
PERSONAL LINES HOMEOWNERS
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Combined ratio
114.5
115.1
(0.6
)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(40.4
)
(35.5
)
(4.9
)
Prior accident year development
3.7
(0.1
)
3.8
Underlying combined ratio
77.8
79.6
(1.8
)
Underwriting gain (loss) -
The Hartford's management evaluates profitability of the Commercial
and Personal Lines segments primarily on the basis of underwriting
gain or loss. Underwriting gain (loss) is a before tax non-GAAP
measure that represents earned premiums less incurred losses, loss
adjustment expenses and underwriting expenses. Net income (loss) is
the most directly comparable GAAP measure. Underwriting gain (loss)
is influenced significantly by earned premium growth and the
adequacy of The Hartford's pricing. Underwriting profitability over
time is also greatly influenced by The Hartford's underwriting
discipline, as management strives to manage exposure to loss
through favorable risk selection and diversification, effective
management of claims, use of reinsurance and its ability to manage
its expenses. The Hartford believes that underwriting gain (loss)
provides investors with a valuable measure of profitability, before
tax, derived from underwriting activities, which are managed
separately from the Company's investing activities. A
reconciliation of net income to underwriting gain (loss) for the
quarterly periods ended June 30, 2024 and 2023, is set forth
below.
Underlying underwriting gain
(loss) - This non-GAAP measure of underwriting
profitability represents underwriting gain (loss) before current
accident year catastrophes, PYD and current accident year change in
loss reserves upon acquisition of a business. The most directly
comparable GAAP measure is net income (loss). The Company believes
underlying underwriting gain (loss) is important to understand the
Company’s periodic earnings because the volatile and unpredictable
nature (i.e., the timing and amount) of catastrophes and prior
accident year reserve development could obscure underwriting
trends. The changes to loss reserves upon acquisition of a business
are also excluded from underlying underwriting gain (loss) because
such changes could obscure the ability to compare results in
periods after the acquisition to results of periods prior to the
acquisition as such trends are valuable to our investors' ability
to assess the Company's financial performance. A reconciliation of
net income (loss) to underlying underwriting gain (loss) for
individual reporting segments for the quarterly periods ended June
30, 2024 and 2023, is set forth below.
COMMERCIAL LINES
Three Months Ended
Jun 30 2024
Jun 30 2023
Net income
$
540
$
458
Adjustments to reconcile net income to
underwriting gain:
Net investment income
(402
)
(364
)
Net realized losses
50
51
Other expense
1
—
Income tax expense
130
109
Underwriting gain
319
254
Adjustments to reconcile underwriting
gain to underlying underwriting gain:
Current accident year catastrophes
155
123
Prior accident year development
(81
)
(38
)
Underlying underwriting gain
$
393
$
339
PERSONAL LINES
Three Months Ended
Jun 30 2024
Jun 30 2023
Net loss
$
(11
)
$
(60
)
Adjustments to reconcile net income
(loss) to underwriting loss:
Net investment income
(50
)
(34
)
Net realized losses
8
5
Net servicing and other income
(6
)
(7
)
Income tax benefit
(4
)
(17
)
Underwriting loss
(63
)
(113
)
Adjustments to reconcile underwriting
loss to underlying underwriting gain:
Current accident year catastrophes
125
103
Prior accident year development
(34
)
(3
)
Underlying underwriting gain
(loss)
$
28
$
(13
)
Underlying loss and loss adjustment
expense ratio - This non-GAAP financial measure of the
loss and loss adjustment expense ratio for Commercial Lines and
Personal Lines represents the loss and loss adjustment expense
ratio before catastrophes and prior accident year development. The
loss and loss adjustment expense ratio is the most directly
comparable GAAP measure. The underlying loss and loss adjustment
expense ratio is an important measure of the trend in profitability
since it removes the impact of volatile and unpredictable
catastrophe losses and prior accident year reserve development. A
reconciliation of the loss and loss adjustment expense ratio to the
underlying loss and loss adjustment expense ratio for the quarterly
periods ended June 30, 2024 and 2023, is set forth below.
COMMERCIAL LINES
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
58.4
59.7
(1.3
)
Current accident year catastrophes
(5.0
)
(4.3
)
(0.7
)
Prior accident year development
2.6
1.3
1.3
Underlying loss and loss adjustment
expense ratio
56.1
56.8
(0.7
)
PERSONAL LINES
Three Months Ended
Jun 30 2024
Jun 30 2023
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
81.0
89.2
(8.2
)
Current accident year catastrophes
(14.7
)
(13.6
)
(1.1
)
Prior accident year development
4.0
0.4
3.6
Underlying loss and loss adjustment
expense ratio
70.3
76.1
(5.8
)
SAFE HARBOR STATEMENT
Certain of the statements contained herein are forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“projects,” and similar references to future periods.
Forward-looking statements are based on management's current
expectations and assumptions regarding future economic,
competitive, legislative and other developments and their potential
effect upon The Hartford Financial Services Group, Inc. and its
subsidiaries (collectively, the "Company" or "The Hartford").
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual results could
differ materially from expectations depending on the evolution of
various factors, including the risks and uncertainties identified
below, as well as factors described in such forward-looking
statements; or in The Hartford’s 2023 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and our other filings with the
Securities and Exchange Commission.
- Risks Relating to Economic, Political and
Global Market Conditions: challenges related to the
Company’s current operating environment, including global
political, economic and market conditions, and the effect of
financial market disruptions, economic downturns, changes in trade
regulation including tariffs and other barriers or other
potentially adverse macroeconomic developments on the demand for
our products and returns in our investment portfolios; market risks
associated with our business, including changes in credit spreads,
equity prices, interest rates, inflation rate, foreign currency
exchange rates and market volatility; the impact on our investment
portfolio if our investment portfolio is concentrated in any
particular segment of the economy; the impacts of changing climate
and weather patterns on our businesses, operations and investment
portfolio including on claims, demand and pricing of our products,
the availability and cost of reinsurance, our modeling data used to
evaluate and manage risks of catastrophes and severe weather
events, the value of our investment portfolios and credit risk with
reinsurers and other counterparties;
- Insurance Industry and Product-Related
Risks: the possibility of unfavorable loss development,
including with respect to long-tailed exposures; the significant
uncertainties that limit our ability to estimate the ultimate
reserves necessary for asbestos and environmental claims; the
possibility of another pandemic, civil unrest, earthquake, or other
natural or man-made disaster that may adversely affect our
businesses; weather and other natural physical events, including
the intensity and frequency of thunderstorms, tornadoes, hail,
wildfires, flooding, winter storms, hurricanes and tropical storms,
as well as climate change and its potential impact on weather
patterns; the possible occurrence of terrorist attacks and the
Company’s inability to contain its exposure as a result of, among
other factors, the inability to exclude coverage for terrorist
attacks from workers' compensation policies and limitations on
reinsurance coverage from the federal government under applicable
laws; the Company’s ability to effectively price its products and
policies, including its ability to obtain regulatory consents to
pricing actions or to non-renewal or withdrawal of certain product
lines; actions by competitors that may be larger or have greater
financial resources than we do; technological changes, including
usage-based methods of determining premiums, advancements in
certain emerging technologies, including machine learning,
predictive analytics, “big data” analysis or other artificial
intelligence functions, advancements in automotive safety features,
the development of autonomous vehicles, and platforms that
facilitate ride sharing; the Company's ability to market,
distribute and provide insurance products and investment advisory
services through current and future distribution channels and
advisory firms; the uncertain effects of emerging claim and
coverage issues; political instability, politically motivated
violence or civil unrest, which may increase the frequency and
severity of insured losses; the ongoing effects of COVID-19,
including exposure to COVID-19 business interruption property
claims and the possibility of a resurgence of COVID-19 related
losses in Group Benefits;
Financial Strength, Credit and
Counterparty Risks: risks to our business, financial
position, prospects and results associated with negative rating
actions or downgrades in the Company’s financial strength and
credit ratings or negative rating actions or downgrades relating to
our investments; capital requirements which are subject to many
factors, including many that are outside the Company’s control,
such as National Association of Insurance Commissioners ("NAIC")
risk based capital formulas, rating agency capital models, Funds at
Lloyd's and Solvency Capital Requirement, which can in turn affect
our credit and financial strength ratings, cost of capital,
regulatory compliance and other aspects of our business and
results; losses due to nonperformance or defaults by others,
including credit risk with counterparties associated with
investments, derivatives, premiums receivable, reinsurance
recoverables and indemnifications provided by third parties in
connection with previous dispositions; the potential for losses due
to our reinsurers' unwillingness or inability to meet their
obligations under reinsurance contracts and the availability,
pricing and adequacy of reinsurance to protect the Company against
losses; state and international regulatory limitations on the
ability of the Company and certain of its subsidiaries to declare
and pay dividends;
Risks Relating to Estimates, Assumptions
and Valuations: risks associated with the use of analytical
models in making decisions in key areas such as underwriting,
pricing, capital management, reserving, investments, reinsurance
and catastrophe risk management; the potential for differing
interpretations of the methodologies, estimations and assumptions
that underlie the Company’s fair value estimates for its
investments and the evaluation of intent-to-sell impairments and
allowance for credit losses on available-for-sale securities and
mortgage loans; the potential for impairments of our goodwill;
Strategic and Operational Risks:
the Company’s ability to maintain the availability of its systems
and safeguard the security of its data in the event of a disaster,
cyber or other information security incident or other unanticipated
event; the potential for difficulties arising from outsourcing and
similar third-party relationships; the risks, challenges and
uncertainties associated with capital management plans, expense
reduction initiatives and other actions; risks associated with
acquisitions and divestitures, including the challenges of
integrating acquired companies or businesses, which may result in
our inability to achieve the anticipated benefits and synergies and
may result in unintended consequences; difficulty in attracting and
retaining talented and qualified personnel, including key
employees, such as executives, managers and employees with strong
technological, analytical and other specialized skills; the
Company’s ability to protect its intellectual property and defend
against claims of infringement;
Regulatory and Legal Risks: the
cost and other potential effects of increased federal, state and
international regulatory and legislative developments, including
those that could adversely impact the demand for the Company’s
products, operating costs and required capital levels; unfavorable
judicial or legislative developments; the impact of changes in
federal, state or foreign tax laws; regulatory requirements that
could delay, deter or prevent a takeover attempt that stockholders
might consider in their best interests; and the impact of potential
changes in accounting principles and related financial reporting
requirements.
Any forward-looking statement made by the Company in this
document speaks only as of the date of this release. Factors or
events that could cause the Company’s actual results to differ may
emerge from time to time, and it is not possible for the Company to
predict all of them. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725404986/en/
Media Contacts: Michelle Loxton 860-547-7413
michelle.loxton@thehartford.com
Matthew Sturdevant 860-547-8664
matthew.sturdevant@thehartford.com
Investor Contact: Susan Spivak Bernstein 860-547-6233
susan.spivak@thehartford.com
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