The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — The Hartford Financial Services Group — Investor Presentation (May 2024)
32 slides from The Hartford Insurance's investor presentation, May 1, 2024
Slide 1: We Are The Hartford
WE ARE THE HARTFORD A Leading Provider of Property and Casualty Insurance, Group Benefits and Mutual Funds The Hartford Financial Services Group, Inc. Investor Presentation Copyright Copyright © 2021 by©The Hartford. 2024 by The All rights reserved. Hartford. No part ofNo All rights reserved. thispa
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 future results of operations. We caution investors that these forward-l
Slide 3: An Unwavering Resolve
AN UNWAVERING RESOLVE Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2024 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted w
Slide 4: The Hartford
THE HARTFORD 4 Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2024 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without
Slide 5: Our Value Proposition
OUR VALUE PROPOSITION We are a Performance Driven Culture with a history of strong financial and shareholder returns. We have the right business lines to compete in markets and produce superior risk adjusted returns to maximize shareholder value. We have, and will continue to create value for shareh
Slide 6: Diversified Insurance Businesses
DIVERSIFIED INSURANCE BUSINESSES Provide a strong and balanced platform Hartford Funds Other 4% 1% Leading U.S. Market Positions… Personal Leader – P&C Small Commercial Lines 14% #1 –Fully insured disability inforce2 #1 –Fully insured disability sales2 #2 –Workers’ compensation insurer, based on dir
Slide 7: Commercial Lines, Group Benefits & Personal Lines
COMMERCIAL LINES, GROUP BENEFITS & PERSONAL LINES Continuously investing and improving Commercial Lines Small Middle & Large Global Specialty Group Benefits Personal Lines Commercial Commercial Unmatched Reinventing and Accelerating value: Leverage scale: Leading Direct performance: delivering: • Cr
Slide 8: Financial Stability
FINANCIAL STABILITY Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford
Slide 9: Financial Snapshot
FINANCIAL SNAPSHOT Solid franchise creating meaningful returns Earned Premiums and Fees Core Earnings2 and Core Earnings ROE1,2 ($ in millions) ($ in millions) $5,779 16.6% $22,326 $5,382 15.8% $20,739 $333 14.5% $19,487 $1,300 $319 12.7% 14.3% $1,349 $1,488 $2,767 $709 $19,390 $21,026 $5,063 $5,446
Slide 10: Financial Snapshot
FINANCIAL SNAPSHOT Solid franchise creating meaningful returns 1 P&C Underlying Combined Ratio 99.3% 93.7% 97.0% 89.9% 96.1% 87.8% 88.4% 89.1% 88.3% 88.5% 89.4% 89.5% 90.2% 90.4% 90.1% 2021 2022 2023 1Q23 1Q24 Commercial Lines Underlying Combined Ratio Personal Lines Underlying Combined Ratio 1 Grou
Slide 11: Balance Sheet
BALANCE SHEET Well positioned with low leverage and strong ratings Recent Capital Management Actions Capital Structure ($ in millions) • $3.0 billion share repurchase authorization 2021 2022 2023 1Q24 program through the end of 2024 with approximately $1.0 billion remaining as of March Total Debt2 $
Slide 12: Capital Management
CAPITAL MANAGEMENT Capital Returned to Stockholders Corporate Holding Company Resources ($ in billions) ($ in billions) $2.2 $2.1 $1.9 $0.5 2021 2022 2023 1Q24 Share Repurchases Common Dividends • As of March 31, 2024, we had approximately $1.0 billion remaining on our share repurchase authorization
Slide 13: Core Earnings Return on Equity
CORE EARNINGS RETURN ON EQUITY1,2,3 THE HARTFORD 19% THE HARTFORD 17% 16.3% 16.4% THE 15.8% HARTFORD 14.5% 14.7% 15% 14.1% 12.9% 12.7% 13% 10.9% 10.8% 10.8% 10.7% 11% 10.4% 9.5% 9.1% 9% 8.6% 8.5% 8.0% 7% 6.6% 5.7% 5% 3% 1.9% 1% 2021 2022 2023 Company A Company B Company C Company D Company E Company
Slide 14: Business Offerings to Meet Client Needs
BUSINESS OFFERINGS TO MEET CLIENT NEEDS Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2024 by The Hartford. All rights reserved. No part of this document may be reproduced, pub
Slide 15: Commercial Lines Overview
COMMERCIAL LINES Overview Diversified Premium Mix & Strengthened Market Position Strong Underwriting Discipline & Profitability 2023 Earned Premiums by Product Commercial Lines Marine 95.8 Other 2% Bond Assumed 1% 3% Reinsurance 5% Professional 90.2 Liability 89.6 90.1 6% Workers' Commercial Compens
Slide 16: Small Commercial
SMALL COMMERCIAL Strong Profitability 1 Combined Ratio Underlying Combined Ratio • Market leader with unparalleled product and digital capabilities. 89.6 88.6 • Leading Worker’s Compensation provider for Small 89.0 Businesses and rebuilt pre-eminent Business Owner’s 87.2 88.2 86.7 Product (Spectrum)
Slide 17: Middle & Large Commercial
MIDDLE & LARGE COMMERCIAL • Selling expanded suite of traditional P&C and specialty products, while growing specialized industry verticals in Improving Profitability Through a high touch business. Disciplined Underwriting • Pricing continues to improve with focus on underwriting Combined Ratio Under
Slide 18: Global Specialty
GLOBAL SPECIALTY • Venerable specialty franchise with broad product Strong Underlying Underwriting Results portfolio • Cross-selling momentum across commercial P&C with Combined Ratio Underlying Combined Ratio 1 expanded distribution 94.1 • Reshaped portfolio, with rigorous execution on renewal rate
Slide 19: Personal Lines
PERSONAL LINES Leading Direct Personal Lines Insurer Centered on AARP Relationship 2023 Written Premiums by Distribution • Focus on niche market through exclusive partnership with AARP through 2032 1% • Innovative and cloud-based auto and home product Prevail, launched in 2021 6% 7% • Significant fo
Slide 20: Group Benefits
GROUP BENEFITS Loss Ratios Market Leader #1 Fully insured disability inforce 1 Total Life Disability #1 Fully insured disability sales 1 101.5 87.4 #3 Combined fully insured life and disability 1 80.9 83.5 82.6 inforce 74.5 71.8 73.5 • Continued synergies and similarities with 68.2 70.1 68.3 67.1 P&
Slide 21: Hartford Funds
HARTFORD FUNDS Assets Under Management Investment Platform Leverages Expertise From ($ in billions) Institutional Money Managers $157.9 $15.3 $131.0 $135.6 $124.1 • Leveraging the full capabilities of institutional quality $11.7 $12.1 $11.6 sub-advisors − Wellington Management $142.6 $123.5 − Schrod
Slide 22: Ethical Responsibility at the Forefront
ETHICAL RESPONSIBILITY AT THE FOREFRONT Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2024 by The Hartford. All rights reserved. No part of this document may be reproduced, pub
Slide 23: Progressing with Purpose: Our Approach to Sustainability
PROGRESSING WITH PURPOSE: Our Approach to Sustainability To learn more, please access our Sustainability Report at: https://www.thehartford.com/about-us/sustainability-reporting Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted wit
Slide 24: Diverse and Inclusive Culture
DIVERSE AND INCLUSIVE CULTURE Industry leading We take pride in the recognition we received from others that reflect our commitment to being inclusive of our many valued stakeholders Additional Awards Received: • Best Place to Work in IT 2024; Computerworld's Best Places to Work in IT • Named one of
Slide 25: Transparency That Can Be Trusted
TRANSPARENCY THAT CAN BE TRUSTED Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2024 by The Hartford. All rights reserved. No part of this document may be reproduced, published
Slide 26: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing the Company's operating performance for the periods presented herein. Because The Hartford's calculation of these measures may differ from
Slide 27: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSOLIDATED 3 Months Ended Year Ended ($ in millions) Mar 31 2024 Mar 31 2023 Dec 31 2023 Dec 31 2022 Dec 31 2021 Net income $ 753 $ 535 $ 2,504 $ 1,819 $ 2,371 Preferred stock dividends 5 5 21 21 21 Net income available to common stockho
Slide 28: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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
Slide 29: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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 b
Slide 30: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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
Slide 31: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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 sh
Slide 32: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides thi
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