The Hartford (NYSE: HIG) has released its financial results for the second quarter ending 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.”
Beth Costello, The Hartford’s Chief Financial Officer, added, “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 ongoing 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:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net income available to common stockholders | $733M | $542M | 35% |
| Net income per diluted share | $2.44 | $1.73 | 41% |
| Core earnings | $750M | $588M | 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 (excluding AOCI) | $61.71 | $55.76 | 11% |
| Net income ROE (last 12-months) | 19.8% | 14.4% | 5.4% |
| Core earnings ROE (last 12-months) | 17.4% | 13.6% | 3.8% |
The improvement in net income was driven by higher P&C underwriting gain, increased net investment income, and an improved Group Benefits loss ratio. The second quarter saw favorable development in prior accident years and robust performance across various lines of business.
Business Segment Highlights:
Commercial Lines:
- Net income: $540M (up 18% from Q2 2023)
- Core earnings: $551M (up 12%)
- Written premiums: $3.54B (up 11%)
- Combined ratio: 89.8 (improved from 91.2 in Q2 2023)
Personal Lines:
- Net loss: $11M (improved from a $60M loss in Q2 2023)
- Core loss: $4M (improved from a $57M loss)
- Written premiums: $913M (up 14%)
- Combined ratio: 107.4 (improved from 114.9 in Q2 2023)
Group Benefits:
- Net income: $171M (up 41%)
- Core earnings: $178M (up 34%)
- Fully insured ongoing premiums: $1.607B (up 2%)
- Loss ratio: 68.9% (improved from 72.1% in Q2 2023)
Hartford Funds:
- Net income: $44M (down 2%)
- Core earnings: $43M (down 2%)
- Daily average AUM: $134.1B (up 5%)
- Mutual Funds and ETF net flows: -$1.085B (improved from -$1.256B)
Investment Income and Portfolio Data:
- Net investment income: $602M (up 11% from Q2 2023)
- Annualized investment yield (before tax): 4.1%
- Total invested assets: $56.9B (up $1.0B from Dec 31, 2023)
The improved results reflect the company’s effective strategy, strong investment performance, and robust underwriting across its segments, leading to enhanced shareholder value and a new share repurchase authorization.
