HIG Q2 2026 Earnings Call Summary

Core Earnings: $945 million, or $3.42 per diluted share.
Return on Equity (ROE): 18.7% over the trailing 12 months.
Book Value per Share: $78.91, up 7% from year-end and 15% year-over-year.
Business Insurance: Core earnings of $605 million with a written premium growth of 5% and an underlying combined ratio of 89.3.
Personal Insurance: Core earnings of $128 million with an underlying combined ratio of 86.3; written premium declined by 7%.
Employee Benefits: Core earnings of $139 million with a margin of 7.4%.
Net Investment Income: $800 million, up 22% from the previous year.

Hartford Funds Sale: Agreement to sell Hartford Funds to Wellington Management, monetizing a non-core investment.
Share Repurchase Authorization: New authorization of $4.2 billion approved, reflecting strong capital generation and expected cash from the Hartford Funds sale.
Business Insurance Growth: Strong performance driven by disciplined underwriting and technology investments, particularly in small business, which saw a 7% growth.
Employee Benefits: Continued strong premium growth and a focus on integrated benefits platforms to enhance workforce productivity.

Investment Income: Expected to increase in the second half of 2026, supported by growth in invested assets.
Share Repurchases: Anticipated increase in quarterly repurchases to $475 million for the remainder of 2026.
Market Position: The company remains optimistic about its ability to deliver strong returns and maintain competitive pricing in various segments.

Personal Insurance Challenges: Decline in written premiums, particularly in auto insurance, due to heightened competition.
Loss Reserve Development: Adverse developments in general liability and commercial auto reserves, attributed to increased frequency and severity of claims, particularly with higher attorney involvement.
Competitive Pressures: Notable competition in the middle and large commercial space, leading to potential impacts on retention and growth.
Expense Ratios: Increased pressure in personal insurance to meet long-term goals, with challenges in maintaining profitability amid competitive dynamics.

Loss Reserve Adequacy: Management indicated that while there were adverse developments in general liability and commercial auto, they remain confident in their overall reserve adequacy.
Employee Benefits Outlook: Despite a rise in the group disability loss ratio, management believes the business remains strong and within long-term expectations.
Market Dynamics: The company is closely monitoring competitive pressures, particularly in the middle and large commercial segments, and is prepared to adjust strategies accordingly.
AI and Efficiency: Management is investing in AI to enhance underwriting and claims efficiency, although specific KPIs were not disclosed.

This summary encapsulates the key aspects of the earnings call, highlighting both the strengths and challenges faced by The Hartford in Q2 2026.

HIG — The Hartford Insurance Group, Inc.