The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — Q3 2024 Earnings Presentation
21 slides from The Hartford Insurance's earnings presentation, Oct 25, 2024
Slide 1: The Hartford's Third Quarter 2024 Financial Results
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% The Hartford’s Third Quarter 2024 Financial Results The Hartford Financial Services Group, Inc. | October 24, 2024
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: Third Quarter 2024 – Disciplined Execution
THIRD 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 10%, including 9% in Commercial Lines and 12% in Personal Lines (ex AOCI)1,2 Group Benefits f
Slide 5: Core Earnings by Segment
4Q21 CORE EARNINGS1 OF $752 3Q24 $697 MILLION, EPS1,2 OF $2.53, $2.02, ROE1,3 OF 17.4% 12.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) 3Q24 3Q23 Change4 Commercial Lines $534 $542 (1)% Personal Lines 33 (8) NM P&C Other Operations 10 11 (9)% Property & Casualty T
Slide 6: 3Q24 Key Business Highlights vs. 3Q23
3Q24 CORE 4Q21 KEY BUSINESS EARNINGS 1 OF $697 MILLION, HIGHLIGHTS VS. 3Q23EPS1,2 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 10% 94.5 92.1 0.5 pts 89.7
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 $3.3 billion in 3Q24 were up 9% from 3Q23 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 CORE Continued EARNINGS improvement in the underlying combined ratio1 Personal Lines Renewal Written Price Increase % Written premiums of $970 million increased by 12% compared to 3Q23 Renewal written price increase in auto of 2
Slide 9: Group Benefits
GROUP 4Q21 BENEFITS CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Excellent results in 3Q24 with a core earnings margin1 of 8.7% Core Earnings1 and Core Earnings Margin ($ in millions) Core earnings margin1 of 8.7% in 3Q24 benefitting from fully insured premium growth and continue
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 $47 million in 3Q24 compared to $45 million in 3Q23 Mutual fund and Exchange-traded funds (ETF) net outflows2 of $0.4 billion in 3Q24
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 $26 million compared to a core loss of $52 million in 3Q23 Corporate Holding Company Resources ($ in billions) Components of Corporate Core Losses ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 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 Net investment income of $659 million increased from $597 million in 3Q23, $59.4B as of September 30, 2024 benefiting from the impact of reinvest
Slide 13: Core Earnings ROE of 17.4% in 3Q24
CORECORE 4Q21 EARNINGS ROE11 OF EARNINGS OF 17.4% IN 3Q24 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 20.0% versus 17.7% in 3Q23 Core earnings ROE of 17.4% versus 14.9% in 3Q23 ▪ 3Q24 trailing
Slide 14: Book Value Per Share and Capital Returned to Stockholders
BVPSCORE (EX. AOCI) 1 OF $63.17 AT SEPTEMBER 1 OF $697 30, 1,22024 4Q21 EARNINGS MILLION, EPS OF $2.02, ROE1,3 OF 12.7% Capital Returned to Stockholders Book value per diluted share of $56.39 increased from $49.43 at December ($ in billions) 31, 2023, principally due to net income in excess of stock
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 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 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: 2024 Property Catastrophe Treaties
4Q21 CORE EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% 2024 PROPERTY CATASTROPHE TREATIES Primary Catastrophe Treaty Reinsurance Coverages as of September 30, 2024 [1] Portion of losses reinsured Changes from 2023 program Per Occurrence Property Catastrophe Treaty from 1/1/2024 to 12
Slide 20: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 20
Slide 21: 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
The Hartford Insurance Group — Q3 2024 Earnings Presentation on 6ix