The Hartford Insurance Group, Inc. HIG reported first-quarter 2025 adjusted operating earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.13. However, the bottom line decreased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
HIG's total revenues amounted to $6.8 billion, which improved from $6.4 billion in the prior year due to higher earned premiums and investment income.
Better-than-expected quarterly earnings benefited from improved Employee Benefits and Hartford Funds performance, partially offset by higher expenses.
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote
HIG’s Q1 Operations
Earned premiums of Hartford Financial rose 7.1% year over year to $5.8 billion in the first quarter but missed the Zacks Consensus Estimate by 1.1%. The metric was driven by a 9.1% and 1.7% year-over-year rise in Business Insurance and Employee Benefits’ earned premiums, respectively.
Pre-tax net investment income of $656 million grew 10.6% year over year but missed the consensus mark by 7.5%. The year-over-year growth came from improved returns from the fixed-income portfolio and higher invested assets. Net investment income witnessed year-over-year growth in the Business Insurance, Personal Insurance and Employee Benefits segments.
Total benefits, losses and expenses increased 9.4% year over year to $6 billion in the quarter under review. The year-over-year rise was due to higher benefits, losses and loss adjustment expenses, and insurance operating expenses.
Pretax income of $783 million decreased 14.1% year over year in the first quarter.
HIG’s Segmental Update
Business Insurance
Revenues in the segment amounted to $3.7 billion in the first quarter, which rose 8.3% year over year. However, core earnings of $471 million declined 14% year over year due to higher expenses.
The underlying combined ratio remained in line with the year-ago level of 88.4%. The loss and loss adjustment expense ratio increased 450 bps year over year to 62.8%.
Personal Insurance
The segment recorded revenues of $982 million, which improved 10.2% year over year due to higher earned premiums and net investment income. However, core earnings were $6 million in the quarter under review, a massive decline from $33 million a year ago due to increased costs. The California Wildfire Event affected its performance.
The underlying combined ratio of 89.7% improved 640 bps year over year.
Employee Benefits
The segment’s revenues increased 2.1% year over year to $1.79 billion in the quarter under review. Core earnings of $136 million rose 27% year over year due to a low group disability loss ratio and an improvement in net investment income.
The loss ratio improved 160 bps year over year to 71.9% in the first quarter.
Hartford Funds
Revenues amounted to $264 million, which increased 1.9% year over year in the first quarter but missed the Zacks Consensus Estimate by 3.7%. Core earnings improved 7% year over year to $44 million in the first quarter of 2025.
The segment’s daily average assets under management improved 8% year over year to $141.8 billion.
Corporate
The segment’s revenues decreased 80% year over year to $7 million, and the metric missed the consensus estimate by 71.8%. The unit incurred a core loss of $31 million in the quarter under review, wider than the year-ago quarter’s loss of $25 million due to a lower tax benefit.
Financial Update (as of March 31, 2025)
Hartford Financial exited the first quarter with cash of $138 million, which fell from the 2024-end figure of $183 million. Total investments of $60.1 billion rose from the 2024-end figure of $59.2 billion.
Total assets of $82.3 billion increased from the 2024-end figure of $80.9 billion.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2024.
Total stockholders’ equity improved from the 2024-end level of $16.4 billion to $16.8 billion.
Book value per share was $57.07, up from the 2024-end level of $55.09.
Core earnings’ return on equity in the trailing 12 months deteriorated 40 bps year over year to 16.2% at the first-quarter end.
Capital Deployment Update
Hartford Financial returned $550 million to shareholders via share buybacks of $400 million and common stockholder dividends of $150 million. HIG had a leftover buyback capacity of $2.75 billion as of March 31, 2025.
HIG’s Zacks Rank & Key Picks
HIG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, HCI Group Inc. HCI and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.29 billion, implying 9.2% year-over-year growth.
The Zacks Consensus Estimate for HCI Group’s current-year earnings is pegged at $14.98 per share. It has remained stable over the past week. HCI Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.7%. The consensus estimate for current-year revenues is pegged at $881.3 million, suggesting 17.5% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.
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