The Hartford Insurance Group, Inc.
HIG · NYSE
Next quarter
Expected to report Jan 28, 2027 — estimated from last year’s reporting date.
Consensus is $3.28 EPS for Dec 2026 across 10 estimates, ranging $3.05 to $3.65.
HIG Sep 2026
- 11.11%
- -1.79%
- $3.15
- $3.50
- —
- $111.00M
Reported results
- $111.00M
- $1.32B
- $4.82
Highlights
- Core earnings were $956 million, or $3.50 per diluted share, beating the supplied $3.15 consensus by 11.1%; core EPS was up from $3.42 in Q2 but below $3.85 a year ago.
- A&E reinsurance commutation generated a $497 million pre-tax benefit, lifting GAAP net income to $1.323 billion and diluted EPS to $4.82; the benefit was excluded from core earnings.
- P&C underwriting produced an $884 million gain and an 81.1% combined ratio, helped by $594 million of favorable prior-year development. The underlying combined ratio was 89.6%, versus 88.7% in Q2 and 88.4% a year ago.
- Investment income rose 13% year over year to $850 million; the annualized pre-tax yield increased to 5.1% from 4.8% in Q2 and 4.3% a year ago.
- Business Insurance core earnings were $731 million, up from $695 million in Q2 but down from $915 million a year ago; earned premiums increased 7% year over year to $3.775 billion.
- Personal Insurance core earnings fell to $105 million from $128 million in Q2, while its combined ratio worsened to 93.2% from 90.1%; catastrophe losses were $92 million.
- Employee Benefits core earnings declined to $120 million from $139 million in Q2 and $149 million a year ago; its total loss ratio rose to 74.9% from 72.5% and 70.1%, respectively.
- Capital and book value reflected market losses: AOCI fell to negative $3.843 billion from negative $2.371 billion at Q2-end, while book value excluding AOCI rose to $83.42 per share from $79.79.
Analysis
The Hartford delivered a solid core earnings beat, but headline GAAP earnings were amplified by a one-time reinsurance accounting benefit. Core diluted EPS of $3.50 exceeded the supplied $3.15 consensus by 11.1%; core earnings of $956 million were slightly above Q2’s $945 million but 12% below the year-ago $1.087 billion. GAAP net income rose to $1.323 billion from $1.298 billion in Q2 and $1.080 billion a year earlier, with diluted EPS of $4.82. Total revenue was $7.220 billion, up 4% year over year and down slightly from $7.263 billion in Q2.
The quarter’s standout was a $497 million pre-tax benefit from commuting and terminating the asbestos and environmental adverse development cover and resolving the related arbitration; the gain was excluded from core earnings. In the underlying insurance business, P&C’s combined ratio improved sharply to 81.1%, though most of that improvement came from favorable reserve development, while its underlying ratio edged higher year over year. Investment income provided another tailwind, reaching $850 million as portfolio yield increased. Results were mixed across lines: Business Insurance core earnings improved sequentially, while Personal Insurance and Employee Benefits weakened. Hartford also reported materially worse AOCI, largely reflecting unrealized investment losses.
Core earnings and commutation
Core earnings were $956 million, or $3.50 per diluted share, versus $945 million and $3.42 in Q2 and $1.087 billion and $3.85 a year ago. The reported EPS beat uses the supplied consensus of $3.15; GAAP diluted EPS was $4.82. The gap reflects items excluded from core earnings, including realized investment losses, discontinued operations and the retroactive-reinsurance adjustment.
- Reinsurance resolution: The agreement with National Indemnity, a Berkshire Hathaway subsidiary, commuted and terminated the A&E adverse development cover and resolved the associated arbitration.
- Reported impact: The $497 million pre-tax benefit from the change in deferred gain contributed to P&C Other Operations’ $406 million net income, compared with $17 million in Q2; it was excluded from core earnings.
P&C underwriting
P&C underwriting gain increased to $884 million from $404 million in Q2 and $502 million a year ago, with the reported combined ratio improving to 81.1% from 91.2% and 88.8%. The $594 million of favorable prior-year development included the $497 million reinsurance-related benefit; excluding it, prior-year development was favorable by $97 million. The underlying combined ratio, a better guide to current underwriting performance, was 89.6%, up from 88.7% in Q2 and 88.4% a year ago. Current-year catastrophe losses were $198 million, versus $222 million in Q2 and $212 million a year ago.
- Business Insurance: Core earnings were $731 million, up 5% sequentially but down 20% year over year. Earned premiums grew 7% to $3.775 billion; the combined ratio was 91.3%, while the underlying ratio rose to 90.1% from 89.3% in Q2 and 89.2% a year ago.
- Personal Insurance: Core earnings were $105 million, down from $128 million in Q2 but above $94 million a year ago. The combined ratio increased to 93.2% from 90.1% in Q2, including $92 million of catastrophe losses; the underlying ratio was 87.1%.
Investment income
Net investment income rose to $850 million from $800 million in Q2 and $755 million a year ago, supporting earnings across the insurance segments. The annualized pre-tax portfolio yield was 5.1%, up from 4.9% sequentially and 4.3% a year ago; excluding limited partnerships and other alternatives, the yield was 4.6%, flat year over year. Alternative investment income was $156 million, compared with $114 million in Q2 and $91 million a year ago, with a 10.2% annualized pre-tax yield.
Employee Benefits
Employee Benefits core earnings declined to $120 million from $139 million in Q2 and $149 million a year ago. Earned premiums were $1.662 billion, up 4% year over year, but claims growth weighed on profitability: the total loss ratio climbed to 74.9%, compared with 72.5% in Q2 and 70.1% a year ago. Group disability’s loss ratio was 76.3%, up from 74.8% sequentially and 68.5% a year ago.
Capital and portfolio marks
Book value per common share was $69.10, down from $71.06 at Q2-end, while book value excluding AOCI increased to $83.42 from $79.79. AOCI worsened to negative $3.843 billion from negative $2.371 billion, primarily as the net unrealized loss on available-for-sale fixed maturities widened to $2.362 billion from $942 million. The company repurchased $480 million of stock in the quarter and $1.389 billion year to date, and declared a $0.60 common dividend per share, versus $0.52 a year earlier. Hartford Funds remained classified as discontinued operations and held for sale; discontinued operations contributed $61 million of quarterly net income. The Equitable employee benefits acquisition closed on October 13, after quarter-end.
