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The Hartford Insurance Group, Inc. HIG reported second-quarter 2025 adjusted operating earnings of $3.41 per share, which surpassed the Zacks Consensus Estimate by 23.1%. The bottom line climbed 36% year over year.
HIG's operating revenues rose 9.9% year over year to $4.9 billion on the back of improved earned premiums, fee income and investment income. The top line beat the consensus mark by 0.2%.
The quarterly results were aided by increased earned premiums and investment income, solid segmental performance, especially in Business Insurance and Personal Insurance with improved loss ratios and reduced catastrophe losses, and invested asset growth, boosting net investment income. However, the upside is partly offset by an elevated expense level and pressure in Employee Benefits unit due to rising expenses and loss ratios.
The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote
Earned premiums of Hartford amounted to $5.96 billion, which advanced 6.9% year over year but fell short of the Zacks Consensus Estimate of $6.02 billion. The metric was driven by a 9.7% increase in Business Insurance and Personal Insurance earned premiums.
Pre-tax net investment income improved 10.3% year over year to $664 million in the quarter under review but missed the consensus mark of $672 million. The year-over-year growth came from an increase in invested assets. Net investment income witnessed year-over-year improvement in the Business Insurance, Personal Insurance, Employee Benefits and Hartford Funds segments.
Total benefits, losses and expenses of $5.7 billion increased 3% year over year due to higher benefits, losses and loss adjustment expenses, amortization of DAC and insurance operating expenses.
Pretax income climbed 36.6% year over year to $1.2 billion.
Revenues in the segment grew 10.9% year over year to $3.87 billion in the second quarter but marginally missed the Zacks Consensus Estimate of $3.9 billion. Core earnings of $697 million improved 26% year over year, attributable to higher earned premiums, increased net investment income and lower catastrophe losses.
The underlying combined ratio deteriorated 60 basis points (bps) year over year to 88%. The losses and loss adjustment expense ratio of 56.1% improved 230 bps year over year.
The segment’s revenues of $1 billion advanced 10.1% year over year and beat the consensus mark of $994 million. Core earnings were $94 million against the prior-year quarter’s core loss of $4 million on the back of improved earned premiums, higher net investment income, improved loss and loss adjustment expense ratio and a decline in catastrophe losses.
The underlying combined ratio improved 870 bps year over year to 88%
Revenues in the unit improved 6.3% year over year to $17 million.
The segment recorded revenues of $1.77 billion, which dipped 0.2% year over year in the quarter under review and fell short of the Zacks Consensus Estimate of $1.83 billion. Core earnings tumbled 8% year over year to $163 million due to a higher expense ratio, increased group disability loss ratio and higher net realized losses.
The loss ratio deteriorated 20 bps year over year to 69.1% in the second quarter.
Revenues increased 3.8% year over year to $271 million in the segment, which beat the consensus mark of $264 million. Core earnings of $46 million advanced 7% year over year.
The segment’s daily average assets under management were $138.2 billion, up 3% year over year.
The unit witnessed revenues of $52 million, which surged 57.6% year over year and outpaced the consensus estimate of $25.1 million. The unit incurred a core loss of $33 million, wider than the year-ago quarter’s loss of $32 million.
Hartford exited the second quarter with cash of $166 million, which declined 9.3% from the 2024-end level. Total investments of $60.9 billion increased 2.9% from the figure at 2024 end.
Total assets of $83.6 billion grew 3.4% from the 2024-end figure.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2024.
Total stockholders’ equity improved 6.5% from the 2024-end level to $17.5 billion.
Book value per share was $60.02, which advanced 17% year over year.
Core earnings’ return on equity in the trailing 12 months deteriorated 40 bps year over year to 17% at the second-quarter end.
Hartford rewarded $549 million to shareholders via share buybacks of $400 million and common stockholder dividends of $149 million. HIG had a leftover buyback capacity of $2.35 billion as of June 30, 2025.
Hartford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the insurance industry players that have reported second-quarter 2025 results so far, the bottom-line results of RLI Corp. RLI, RenaissanceRe Holdings Ltd. RNR and The Travelers Companies, Inc. TRV beat the respective Zacks Consensus Estimate.
RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Gross premiums written remained flat at $562.3 million. Net investment income increased 16% year over year to $39.4 million. The investment portfolio’s total return was 2.9% in the quarter. Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5.
RenaissanceRe’s second-quarter 2025 operating income of $12.29 per share beat the Zacks Consensus Estimate by 19.6%. However, the bottom line dipped 1% year over year. Total operating revenues declined 4.2% year over year to $2.8 billion. The top line fell short of the consensus mark by 4.4%. Gross premiums written of $3.42 billion dipped marginally year over year. Net premiums earned decreased 5.1% year over year to $2.4 billion.
Net investment income of $413.1 million inched up 0.6% year over year in the quarter under review. RenaissanceRe’s underwriting income climbed 25.5% year over year to $601.7 million in the second quarter. The combined ratio of 75.1% improved 600 basis points (bps) year over year. The Property segment’s gross premiums written slipped 1.2% year over year to $1.7 billion. It generated an underwriting income of $630.2 million, which advanced 39.5% year over year. The Casualty & Specialty unit’s net premiums earned dipped 1% year over year to $1.54 billion.
Travelers reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Travelers’ total revenues increased 6.7% from the year-ago quarter to $12.1 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%. Net written premiums increased 4% year over year to a record $11.5 billion.
Net investment income increased 6% year over year to $942 million. Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. In the Business Insurance segment, net written premiums increased 5% year over year to about $5.8 billion. The combined ratio improved 250 bps year over year to 93.6. Segment income of $813 million increased 24% year over year.
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This article originally published on Zacks Investment Research (zacks.com).
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