The Hartford Delivers Document-Setting This autumn and Full-12 months 2024 Efficiency
The Hartford posted robust monetary outcomes for the fourth quarter and full yr of 2024, pushed by development in Property & Casualty (P&C) premiums, improved underwriting margins, and better funding earnings. The corporate returned $2.1 billion to stockholders over the yr, together with share repurchases and dividends.
“The Hartford delivered an excellent yr with a core earnings ROE of 16.7 p.c,” stated The Hartford’s Chairman and CEO Christopher Swift. “Outcomes have been pushed by sustained momentum in Business Strains, which as soon as once more generated robust top-line development at extremely worthwhile margins, vital progress in Private Strains towards restoring goal profitability in auto, continued robust margins in Group Advantages, and a better funding portfolio yield.”
Fourth Quarter 2024 Monetary Highlights
- Internet earnings out there to widespread stockholders: $848 million ($2.88 per diluted share), up 11% from $766 million in This autumn 2023.
- Core earnings: $865 million ($2.94 per diluted share), down 7% from $935 million in This autumn 2023.
- P&C written premiums: Up 7% year-over-year, pushed by development in Business Strains (+6%) and Private Strains (+12%).
- Business Strains mixed ratio: 87.4, with an underlying mixed ratio of 87.1.
- Private Strains mixed ratio: 85.8, bettering 15.4 factors year-over-year.
- Group Advantages web earnings margin: 7.1%, with a core earnings margin of seven.8%.
- Stockholder returns: $537 million returned in This autumn, together with $400 million in share repurchases and $137 million in dividends.
Chairman and CEO Christopher Swift acknowledged in the course of the earnings name, “Our excellent outcomes spotlight the power of our franchise, significantly our distinctive underwriting execution, intensive distribution relationships, and an unparalleled buyer expertise.”
Full-12 months 2024 Efficiency
- Internet earnings out there to widespread stockholders: $3.1 billion ($10.35 per diluted share), up 24% from 2023.
- Core earnings: $3.1 billion ($10.30 per diluted share), up 11% from 2023.
- Internet earnings ROE: 19.9%, in comparison with 17.5% in 2023.
- Core earnings ROE: 16.7%, up from 15.8% in 2023.
- P&C written premiums: Elevated 10% year-over-year.
- Business Strains full-year mixed ratio: 89.9, with an underlying mixed ratio of 87.9.
- Private Strains full-year mixed ratio: 99.1, bettering 8.4 factors year-over-year.
- Group Advantages web earnings margin: 7.9%, with a core earnings margin of 8.2%.
Enterprise Phase Efficiency
Business Strains
The Hartford’s Chief Monetary Officer Beth Costello stated, “Business Strains had a robust quarter with top-line development of 6 p.c and an underlying mixed ratio of 87.1. Pricing, excluding staff’ compensation, accelerated to 9.7 p.c within the quarter and stays above loss value developments. Private Strains achieved 9.3 factors of underlying mixed ratio enchancment within the quarter, together with over 10 factors in auto. Group Advantages continued to outperform with a core earnings margin of seven.8 p.c, led by robust life and incapacity outcomes.”
- Fourth quarter web earnings: $708 million, up 3% from This autumn 2023.
- Full-year web earnings: $2.35 billion, a 13% enhance.
- This autumn mixed ratio: 87.4, reflecting robust underwriting outcomes.
- Full-year written premiums: $13.35 billion, up 9% from 2023.
Private Strains
Melinda Thompson, Head of Private Strains, acknowledged, “We achieved 9.3 factors of underlying mixed ratio enchancment within the quarter, together with over 10 factors in auto. This displays our disciplined underwriting and pricing technique.”
- This autumn web earnings: $154 million, a major enchancment from $34 million in This autumn 2023.
- Full-year web earnings: $208 million, reversing a $39 million loss in 2023.
- This autumn mixed ratio: 85.8, a 15.4-point enchancment year-over-year.
- Full-year mixed ratio: 99.1, bettering 8.4 factors.
- This autumn written premiums: $871 million, up 12% year-over-year.
Group Advantages
Michael Fish, Head of Group Advantages, added, “Our Group Advantages phase continues to ship robust margins, with life and incapacity outcomes outperforming expectations.”
- This autumn web earnings: $126 million, down from $176 million in This autumn 2023.
- Full-year web earnings: $561 million, up 5% from 2023.
- This autumn core earnings margin: 7.8%, in comparison with 9.8% in This autumn 2023.
- Full-year totally insured ongoing premiums: $6.39 billion, up 2% year-over-year.
Funding and Capital Administration
- This autumn web funding earnings: $714 million, up from $653 million in This autumn 2023.
- Annualized funding yield: 4.7% earlier than tax, in comparison with 4.5% in 2023.
- Whole stockholder returns: $2.1 billion for 2024, together with $1.5 billion in share repurchases and $556 million in dividends.
Chief Monetary Officer Beth Costello commented, “Our funding portfolio delivered strong outcomes, and we maintained disciplined capital administration, guaranteeing robust returns to our shareholders.”
Swift concluded, “With our capabilities and high expertise, we’re well-positioned for continued success in 2025 and past.”
