The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — Q4 2024 Earnings Presentation
26 slides from The Hartford Insurance's earnings presentation, Jan 31, 2025
Slide 1: The Hartford's Fourth Quarter and Full Year 2024 Financial Results
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% The Hartford’s Fourth Quarter and Full Year 2024 Financial Results The Hartford Financial Services Group, Inc. | January 30, 2025
Slide 2: Safe Harbor Statement
SAFE CORE 4Q21 HARBOR 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% STATEMENT EARNINGS Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford’s
Slide 3: Diversified insurer with core strengths and market leadership
THE HARTFORD 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORE Diversified EARNINGS insurer with core strengths and market leadership Hartford Funds Other 4% 1% Market leader in desirable segments with high Personal return characteristics Lines 14% Delivering consistently strong results
Slide 4: 2024 – Another Year of Disciplined Execution
2024 – ANOTHER YEAR1 OF DISCIPLINED EXECUTION 4Q21 EARNINGS OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% COREdelivered… The Hartford Growth: P&C net written premium growth of 7%, including 6% in Commercial Lines and 12% in Personal Lines in 4Q24 ▪ Full Year 2024 P&C net written premium growth o
Slide 5: 4Q24 Core Earnings by Segment
4Q21 CORE EARNINGS1 OF $865 4Q24 $697 MILLION, EPS1,2 OF $2.94, $2.02, ROE1,3 OF 12.7% 16.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) 4Q24 4Q23 Change4 Commercial Lines $665 $723 (8)% Personal Lines 155 36 NM P&C Other Operations (106) (1) NM Property & Casualty
Slide 6: Full Year 2024 Core Earnings by Segment
4Q21 FY CORE CORE EARNINGS 1 OF EARNINGS 1 OF $3.1 $697 BILLION, MILLION, 1,2 OF EPSEPS 1,2 OF $10.30, $2.02, ROE 1,3 1,3 ROE OFOF16.7% 12.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) FY 2024 FY 2023 Change4 Commercial Lines $2,296 $2,194 5% Personal Lines 217 (2
Slide 7: 4Q24 Key Business Highlights vs. 4Q23
4Q24 CORE 4Q21 KEY BUSINESS EARNINGS 1 OF $697 MILLION, HIGHLIGHTS VS. 4Q23EPS1,2 OF $2.02, ROE1,3 OF 12.7% PROPERTY & CASUALTY Strong contribution from Commercial Lines with growth across the segment Written premiums Combined ratio (%) Underlying combined ratio1 (%) $4.0B 7% 92.1 92.1 1.6 pts 87.8
Slide 8: 2024 Key Business Highlights vs. 2023
2024 KEY 4Q21 COREBUSINESS EARNINGS 1 OF $697 MILLION, HIGHLIGHTS VS. 2023EPS1,2 OF $2.02, ROE1,3 OF 12.7% PROPERTY & CASUALTY Strong contribution from Commercial Lines with growth across the segment Written premiums Combined ratio (%) Underlying combined ratio1 (%) $16.9B 10% 93.2 92.1 1.7 pts 89.2
Slide 9: Commercial Lines
COMMERCIAL LINES 1 1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 StrongCORE EARNINGS contributions OFbusiness from each $697 MILLION, continue EPS to deliver profitable growth Written premiums of $3.2 billion in 4Q24 were up 6% from 4Q23 with increases across Commercial Lines Renewal Written Pricing % the segm
Slide 10: Personal Lines
PERSONAL LINES 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORE Significant EARNINGS improvement in the underlying combined ratio1 Personal Lines Renewal Written Price Increase % Written premiums of $871 million increased by 12% compared to 4Q23 Renewal written price increase in auto of
Slide 11: Group Benefits
GROUP 4Q21 BENEFITS CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Strong results in 4Q24 with a core earnings margin1 of 7.8% Core Earnings1 and Core Earnings Margin ($ in millions) Core earnings margin1 of 7.8% in 4Q24 benefitting from continued strong group life results, fully i
Slide 12: Hartford Funds
HARTFORD FUNDS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 COREfee High return, EARNINGS generating business Total AUM4 ($ in billions) Core earnings1 of $51 million in 4Q24 compared to $39 million in 4Q23 Mutual fund and Exchange-traded funds (ETF) net inflows2 of $0.8 billion in 4Q24,
Slide 13: Corporate
CORPORATE 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORE Core loss EARNINGS 1 of $39 million compared to a core loss of $36 million in 4Q23 Components of Corporate Core Losses Corporate Holding Company Resources ($ in billions) ($ in millions) 4Q23 1Q24 2Q24 3Q24 4Q24 Net investment i
Slide 14: The Investment Portfolio
THE INVESTMENT PORTFOLIO 1 1,2 1,3 4Q21 COREand High quality EARNINGS diversified OF $697 MILLION, EPS OF $2.02, ROE OF 12.7% Invested Assets3,4 by Sector Net investment income of $714 million increased from $653 million in 4Q23, $59.2B as of December 31, 2024 benefiting from the impact of a higher
Slide 15: Core Earnings ROE of 16.7% in 4Q24
CORECORE 4Q21 EARNINGS ROE11 OF EARNINGS OF 16.7% IN 4Q24 EPS1,2 OF $2.02, ROE1,3 OF 12.7% $697 MILLION, Consolidated Core Earnings ROE P&C Core Earnings ROE Group Benefits Core Earnings ROE Net income ROE of 19.9% versus 17.5% in 4Q23 Core earnings ROE of 16.7% versus 15.8% in 4Q23 ▪ Core earnings1
Slide 16: Book Value Per Share and Capital Returned to Stockholders
BVPSCORE (EX. AOCI) 1 OF $64.95 AT DECEMBER 1 OF $697 31,1,2 2024 4Q21 EARNINGS MILLION, EPS OF $2.02, ROE1,3 OF 12.7% Capital Returned to Stockholders Book value per diluted share of $55.09 increased from $49.43 at December ($ in billions) 31, 2023, principally due to net income in excess of stockh
Slide 17: The Hartford's Priorities
THE HARTFORD’S PRIORITIES1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 COREstrategies Our focused EARNINGS to produce desired outcomes Advance leading underwriting capabilities across our portfolio to offer expanded products and services Emphasize digital, data and analytics, and data sci
Slide 18: Stockholder Value Creation
STOCKHOLDER VALUE1 CREATION 4Q21 A clearCORE EARNINGS roadmap to continue OF $697 MILLION, to generate EPS1,2 OF $2.02, superior risk-adjusted 1,3 returnsROE OF 12.7% Accelerate profitable Unwavering focus on Consistent generator Ethical culture organic growth across ROE performance, of excess capit
Slide 19: Appendix
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% APPENDIX 19
Slide 20: The Hartford's Expected 2025 Holding Company Resources
4Q21 CORE EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% THE HARTFORD’S EXPECTED 2025 HOLDING COMPANY RESOURCES Expected sources of holding company resources in FY25 include: Net P&C dividends of approximately $1.7 billion Group Benefits dividends of approximately $590 million Hartford
Slide 21: Impact of Deferred Gain Amortization
IMPACT 4Q21 OF DEFERRED CORE EARNINGS1 GAIN AMORTIZATION OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Navigators and Asbestos & Environmental Adverse Development Covers Adverse Development Covers Financial Impacts of Deferred Gain Amortization • Cumulatively ceded full limit of $300 million, be
Slide 22: 2025 Property Catastrophe Treaties
4Q21 CORE EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 2025 PROPERTY CATASTROPHE TREATIES Primary Catastrophe Treaty Reinsurance Coverages as of January 1, 2025 [1] Portion of losses reinsured Changes from 2024 program Per Occurrence Property Catastrophe Treaty from 1/1/2025 to 12/31
Slide 23: P&C Prior Accident Year Development
P&C PRIOR 4Q21 ACCIDENT 1YEAR CORE EARNINGS DEVELOPMENT OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Re-estimates of Prior Accident Year Reserves in 4Q24 Unfavorable (Favorable) Prior Accident Year Development 4Q24 Workers’ o pe sat o reserves were decreased primarily for accident years 2020 an
Slide 24: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 24
Slide 25: Discussion and Reconciliation of Non-GAAP Financial Measures
4Q21 DISCUSSION CORE EARNINGS 1 OF $697 MILLION, AND RECONCILIATION EPS1,2 OFFINANCIAL OF NON-GAAP $2.02, ROE1,3 MEASURES OF 12.7% The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing The Hartford's operating performance for the periods presented herein
Slide 26: Discussion and Reconciliation of Non-GAAP Financial Measures
4Q21 DISCUSSION CORE EARNINGS 1 OF $697 MILLION, AND RECONCILIATION EPS1,2 OFFINANCIAL OF NON-GAAP $2.02, ROE1,3 MEASURES OF 12.7% Underlying loss and loss adjustment expense ratio This non-GAAP financial measure is the cost of non-catastrophe loss and loss adjustment expenses incurred in the curren
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