HIG Posts Q4 Earnings Beat on Higher Premiums & Investment Income

The Hartford Insurance Group, Inc. HIG reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, which surpassed the Zacks Consensus Estimate by 27.9%. The bottom line climbed 38% year over year.

HIG's operating revenues rose 8.9% year over year to $5.2 billion on the back of improved earned premiums, fee income, and investment income. The top line beat the consensus mark by 1.4%.

Financial results benefited from higher net investment income, favourable prior accident year development (PYD) and lower P&C catastrophe losses. Also, higher earned premium, and improvement in the Personal Insurance underlying loss and LAE ratio benefited the results, partially offset by increased expense ratios in Employee Benefits and P&C.

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 Q4 Operations

Earned premiums amounted to $6.1 billion, which advanced 5.7% year over year but fell short of the Zacks Consensus Estimate by 0.3%.

Net investment income increased 16.5% year over year to $832 million, exceeding the consensus estimate by 11.9%. The outperformance was driven by higher income from limited partnerships and other alternative investments, growth in invested assets, and reinvestment at higher interest rates, partly offset by lower yields on variable-rate securities.

Total benefits, losses, and expenses of $5.9 billion increased 2.1% year over year due to higher amortization of DAC and insurance operating expenses.

Pre-tax income climbed 31.6% year over year to $1.4 billion.

HIG’s Segmental Update

Business Insurance

Revenues in the segment totaled $4.1 billion, reflecting a 9.5% jump, and beat the Zacks Consensus Estimate by 1.4%. Core earnings of $915 million improved 37.6% year over year, attributable to higher earned premiums and increased net investment income.

The combined ratio improved 380 basis points year over year to 83.6%. The losses and loss adjustment expense ratio of 51.5% improved 480 bps year over year.

Personal Insurance

Revenues in the segment amounted to $1 billion, which beat the consensus estimate by 2.7%. This segment generated core earnings of $214 million, reflecting an increase of approximately 38% year over year.

Underwriting performance improved materially, with the combined ratio improving 620 basis points year over year to 79.6%.

P&C Other Ops

Revenues in the unit improved 5.6% year over year to $19 million, which beat the consensus estimate by 2.7%. This segment generated core loss of $140 million, reflecting a deterioration from a loss of $106 million a year ago.

Employee Benefits

The segment recorded revenues of $1.8 billion, which increased 1.6% year over year but fell short of the Zacks Consensus Estimate by 1.2%. Core earnings declined 0.7% year over year to $138 million due to a higher expense ratio and increased group disability loss ratio.

The loss ratio deteriorated 70 basis points year over year to 71.3%.

Hartford Funds

Revenues increased 7.4% year over year to $292 million, which beat the consensus mark of $283 million. Core earnings of $58 million advanced 13.7% year over year.

The segment’s daily average assets under management totaled $153.4 billion, up 7.9% year over year.

Corporate

The unit posted revenues of $37 million, which remained flat year over year and topped the consensus estimate of $25.3 million. The unit incurred a core loss of $37 million, narrower than the year-ago quarter’s loss of $39 million.

Financial Update (as of Dec. 31, 2025)

Hartford exited the fourth quarter with cash of $133 million, which declined 27.3% from the 2024-end level. Total investments of $64 billion increased 8% from the 2024-end figure.

Total assets of $86 billion grew 6.3% 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 15.4% from the 2024-end level to $19 billion.

Book value per share was $66.31, which advanced 20.4% year over year.

Core earnings’ return on equity in the trailing 12 months improved 270 bps year over year to 19.4% at the end of the fourth quarter.

Capital Deployment Update

The company returned $546 million to stockholders in the fourth quarter, comprising $400 million in share repurchases and $146 million in common stockholder dividends. For 2025, total capital returned amounted to $2.2 billion, including $1.6 billion through share buybacks and $592 million in dividends paid.

Full-Year Update

Adjusted operating earnings amounted to $13.42 per share (for 2025), which surged 30% year over year. Revenues totaled $20 billion.

Net earned premiums rose 6.5% year over year to $24 billion in 2025. Net investment income of $2.9 billion increased 13.4% year over year.

Zacks Rank

HIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

The Travelers Companies, Inc. TRV reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.

Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.

AXIS Capital Holdings Limited AXS reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.

Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment, and growth of 5% in the Reinsurance segment.

Selective Insurance Group SIGI) reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year.

Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line slightly marginally exceeded the Zacks Consensus Estimate by 0.1%.

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