The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — Q1 2024 Earnings Presentation
20 slides from The Hartford Insurance's earnings presentation, Apr 26, 2024
Slide 1: The Hartford's First Quarter 2024 Financial Results
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% The Hartford’s First Quarter 2024 Financial Results The Hartford Financial Services Group, Inc. | April 25, 2024
Slide 2: Safe Harbor Statement
4Q21 SAFE CORE HARBOR EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 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
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: First Quarter 2024 – Disciplined Execution
FIRST QUARTER 2024 –1 DISCIPLINED EXECUTION 4Q21 EARNINGS OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% COREdelivered… The Hartford Growth: Book Value Per Diluted Share P&C net written premium growth of 9%, including 8% in Commercial Lines and 13% in Personal Lines (ex AOCI)1,2 Group Benefits fu
Slide 5: Core earnings by segment
4Q21 CORE EARNINGS1 OF $709 1Q24 $697 MILLION, EPS1,2 OF $2.34, $2.02, ROE1,3 OF 16.6% 12.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) 1Q24 1Q23 Change4 Commercial Lines $546 $436 25% Personal Lines 33 — NM P&C Other Operations 7 8 (13)% Property & Casualty Total
Slide 6: Key Business Highlights vs. 1Q23
1Q24 CORE 4Q21 KEY BUSINESS EARNINGS 1 OF $697 MILLION, HIGHLIGHTS VS. 1Q23EPS1,2 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 (%) $4.2B 9% 92.8 92.1 2.9 pts 90.1
Slide 7: 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 $3.4 billion in 1Q24 were up 8% from 1Q23 with increases across Commercial Lines Renewal Written Pricing % the segm
Slide 8: Personal Lines
PERSONAL LINES 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORErate Double-digit EARNINGS actions being taken to address higher auto claim loss costs Personal Lines Renewal Written Price Increase % Written premiums of $844 million increased by 13% compared to 1Q23 Renewal written price
Slide 9: Group Benefits
GROUP BENEFITS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORE EARNINGS Solid margins in 1Q24 Core Earnings1 and Core Earnings Margin Core earnings margin1 of 6.1% compared with 5.2% in 1Q23 reflecting improved life results, ($ in millions) continued strong long-term disability results
Slide 10: 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 $41 million in 1Q24 increased from $37 million in 1Q23 with an increase in fee income net of variable expenses, driven by higher dail
Slide 11: Corporate
CORPORATE 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 CORE Core loss EARNINGS 1 of $25 million compared to a core loss of $35 million in 1Q23 Corporate Holding Company Resources ($ in billions) Components of Corporate Core Losses ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Net investment i
Slide 12: 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 $56.1B as of March 31, 2024 Net investment income of $593 million benefited from the impact of reinvesting at higher rates, a higher level of inv
Slide 13: Core Earnings ROE of 16.6% in 1Q24
CORECORE 4Q21 EARNINGS ROE11 OF EARNINGS OF 16.6% IN 1Q24 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 18.5% versus 12.8% in 1Q23 Core earnings ROE of 16.6% versus 14.3% in 1Q23 1Q24 trailing
Slide 14: Book value per share and capital returned to stockholders
BVPSCORE (EX. AOCI) 1 OF $60.18 AT MARCH 1 OF $697 31,EPS 2024 1,2 OF $2.02, ROE1,3 OF 12.7% 4Q21 EARNINGS MILLION, Capital Returned to Stockholders ($ in billions) Book value per diluted share of $50.23 increased from $49.43 at December 31, 2023, principally due to net income in excess of stockhold
Slide 15: 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 16: Stockholder Value Creation
STOCKHOLDER VALUE1 CREATION 1,2 1,3 4Q21 A clearCORE EARNINGS roadmap to generateOF $697risk-adjusted superior MILLION, EPSreturnsOF $2.02, ROE OF 12.7% Accelerate profitable Unwavering focus on Consistent generator Ethical culture organic growth across ROE performance, of excess capital, supporting
Slide 17: Appendix
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% APPENDIX 17
Slide 18: 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 19: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 19
Slide 20: Discussion and Reconciliation of Non-GAAP Financial Measures
4Q21 DISCUSSION CORE EARNINGS1 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.
The Hartford Insurance Group — Q1 2024 Earnings Presentation on 6ix