First Quarter 2025 First Quarter 2025 Results
NEWS RELEASE
The Hartford Announces First Quarter 2025 Financial Results
-
- First quarter 2025 net income available to common stockholders of
$625 million ($2.15 per diluted share) decreased 16% from$748 million ($2.47 per diluted share) over the same period in 2024. Core earnings* of$639 million ($2.20 core earnings per diluted share*) decreased 10% from$709 million ($2.34 core earnings per diluted share) over the same period in 2024. - Net income ROE for the trailing 12 months of 18.8% and core earnings ROE* of 16.2%.
- Property & Casualty (P&C) written premiums increased by 9% in the first quarter of 2025, driven by
Business Insurance andPersonal Insurance premium growth of 10% and 8%, respectively. Business Insurance first quarter 2025 combined ratio of 94.4 and an underlying combined ratio* of 88.4, consistent with the 2024 period.Personal Insurance first quarter 2025 combined ratio of 106.1 and an underlying combined ratio* of 89.7, an improvement of 6.4 points compared with the 2024 period.- Employee Benefits first quarter net income margin of 7.4% and a core earnings margin* of 7.6%, an improvement from 6.1% in the 2024 period.
- P&C current accident year (CAY) catastrophe (CAT) losses in first quarter 2025 of
$467 million , before tax, including losses related to theJanuary 2025 California Wildfire Event of$325 million , net of reinsurance. - Returned
$550 million to stockholders in the first quarter, including$400 million of shares repurchased and$150 million in common stockholder dividends paid.
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest
U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures. - First quarter 2025 net income available to common stockholders of
- All amounts and percentages set forth in this news release are approximate unless otherwise noted.
1
"The
16.2 percent," said The
The
Swift continued, "Our business performance is strong across the organization, and we remain steadfast in our commitment to delivering outstanding returns for our shareholders. We are well positioned to sustain our momentum, achieving profitable growth with industry-leading ROEs in 2025 and beyond."
2
CONSOLIDATED RESULTS:
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions except per share data) |
2025 |
2024 |
|
|
Net income available to common stockholders |
|
|
(16)% |
|
Net income available to common stockholders per diluted share1 |
|
|
(13)% |
|
Core earnings |
|
|
(10)% |
|
Core earnings per diluted share |
|
|
(6)% |
Book value per diluted share
Book value per diluted share (ex. accumulated other comprehensive income (AOCI))2
Net income available to common stockholders' retuon equity (ROE)3, last 12- months
18.8% 18.5% 0.3
|
Core earnings ROE3, last 12-months |
16.2% |
16.6% |
(0.4) |
- Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends
- Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest
U.S. GAAP measures can be found in this news release under the heading Discussion of Non- GAAP Financial Measures - Retuon equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders' equity including AOCI; for core earnings ROE, the denominator is common stockholders' equity excluding AOCI
First quarter 2025 net income available to common stockholders of
Included in the first quarter 2025 net income was a benefit of
First quarter 2025 core earnings of
Business Insurance loss and loss adjustment expense ratio of 62.8 compared with 58.3 in first quarter 2024, including 4.8 points of higher CATs and 0.7 points of more favorable PYD. Underlying loss and loss adjustment expense ratio of 56.9 compared with 56.6 in first quarter 2024.Personal Insurance loss and loss adjustment expense ratio of 79.1 compared with 76.3 in first quarter 2024, including 14.4 points of higher CATs and 3.4 points of more favorable PYD. Underlying loss and loss adjustment expense ratio* of 62.6 improved 8.1 points from first quarter 2024, largely due to the impact of earned pricing increases and lower frequency in automobile physical damage.- Net favorable prior accident year development (PYD) in core earnings of
$90 million , before tax, in 2025 compared with net favorable PYD of$32 million in core earnings in 2024. Net favorable PYD included in core earnings in first quarter 2025 was primarily driven by reserve reductions in workers' compensation, homeowners, and personal auto.
3
- Net investment income of
$656 million , before tax, compared with$593 million in first quarter 2024, primarily driven by a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments (LPs), partially offset by a lower yield on variable rate securities. - Employee Benefits loss ratio of 71.9 improved 1.6 points compared with 73.5 in first quarter 2024, with improvement in both the group life and group disability loss ratios.
- An increase in earnings generated by 9% growth in P&C earned premium.
- The P&C expense ratio increased from first quarter 2024, driven by
Personal Insurance , which includes higher direct marketing costs, partially offset by a decrease in theBusiness Insurance expense ratio.
Book value per diluted share (excluding AOCI) of
Net income available to common stockholders' ROE (net income ROE) for the trailing 12-month period ending
Core earnings ROE for the trailing 12-month period ending
4
BUSINESS RESULTS:
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions, unless otherwise noted) |
2025 |
2024 |
|
|
Net income |
|
|
(17%) |
|
Core earnings |
|
|
(14%) |
|
Written premiums |
|
|
10% |
|
Underwriting gain1 |
|
|
(38%) |
|
Underlying underwriting gain1 |
|
|
8% |
|
Losses and loss adjustment expense ratio |
62.8 |
58.3 |
4.5 |
|
Expenses |
31.3 |
31.5 |
(0.2) |
|
Policyholder dividends |
0.3 |
0.3 |
- |
|
Combined ratio |
94.4 |
90.1 |
4.3 |
|
Impact of catastrophes and PYD on combined ratio |
(5.9) |
(1.8) |
(4.1) |
|
Underlying combined ratio |
88.4 |
88.4 |
- |
|
Losses and loss adjustment expense ratio |
|||
|
Underlying loss and loss adjustment expense ratio |
56.9 |
56.6 |
0.3 |
|
Current accident year catastrophes |
8.4 |
3.6 |
4.8 |
|
Favorable prior accident year development |
(2.5) |
(1.8) |
(0.7) |
|
Total Losses and loss adjustment expense ratio |
62.8 |
58.3 |
4.5 |
- Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest
U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures
First quarter 2025 net income of
- An underlying loss and loss adjustment expense ratio of 56.9 in first quarter 2025 compared with 56.6 in first quarter 2024.
- 9% growth in earned premium.
- Net investment income of
$437 million , before tax, compared with$391 million in first quarter 2024. - Net favorable PYD within core earnings of
$51 million , before tax, in first quarter 2024, compared with$32 million of net favorable PYD within core earnings in first quarter 2024. The net favorable PYD in first quarter 2025 primarily includes reserve reductions in workers' compensation.
Combined ratio of 94.4 compared with 90.1 in first quarter 2024, primarily due to a 4.5 point increase in the loss and loss adjustment expense ratio, including 4.8 points of higher CATs and
0.7 points of more favorable PYD (including 0.2 points of additional favorable development related to the amortization of the deferred gain). Underlying combined ratio of 88.4 was flat with first quarter 2024, primarily due to improvement in the expense ratio offset by a slight increase in the underlying loss and loss adjustment expense ratio.
5
- Small Business combined ratio of 93.3 compared with 89.0 in first quarter 2024, including 4.2 points of higher CAY CATs and 0.2 points of less favorable PYD. Underlying combined ratio of 89.4 improved from 89.6 in first quarter 2024.
- Middle & Large Business combined ratio of 99.8 compared with 94.0 in first quarter 2024, including 5.3 points of higher CAY CATs and 0.9 points of less unfavorable PYD. Underlying combined ratio of 90.6 compared with 89.2 in first quarter 2024, increased primarily due to slightly higher loss ratios across most lines, as expected, partially offset by improvement in the expense ratio.
- Global Specialty combined ratio of 89.3 compared with 87.8 in first quarter 2024, including 5.4 points of higher CAY CATs and 2.7 points of more favorable PYD. The combined ratio included 0.6 points of more favorable development due to the amortization of the deferred gain related to the Navigators ADC. Underlying combined ratio of 84.0 improved from 85.3 in first quarter 2024, primarily due to a lower loss ratio in global reinsurance and improvement in the expense ratio.
First quarter 2025 written premiums of
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions, unless otherwise noted) |
2025 |
2024 |
|
|
Net income |
|
|
(85%) |
|
Core earnings |
|
|
(82%) |
|
Written premiums |
|
|
8% |
|
Underwriting loss |
|
|
NM |
|
Underlying underwriting gain |
|
|
191% |
|
Losses and loss adjustment expense ratio |
79.1 |
76.3 |
2.8 |
|
Expenses |
27.0 |
25.3 |
1.7 |
|
Combined ratio |
106.1 |
101.6 |
4.5 |
|
Impact of catastrophes and PYD on combined ratio |
(16.5) |
(5.5) |
(11.0) |
|
Underlying combined ratio |
89.7 |
96.1 |
(6.4) |
|
Losses and loss adjustment expense ratio |
|||
|
Underlying loss and loss adjustment expense ratio |
62.6 |
70.7 |
(8.1) |
|
Current accident year catastrophes |
20.8 |
6.4 |
14.4 |
|
Favorable prior accident year development |
(4.3) |
(0.9) |
(3.4) |
|
Total Losses and loss adjustment expense ratio |
79.1 |
76.3 |
2.8 |
Net income of
- An underlying loss and loss adjustment expense ratio of 62.6 in first quarter 2025, which improved 8.1 points from 70.7 in first quarter 2024, primarily driven by the impact of earned pricing increases and improvement in automobile physical damage frequency.
6
$39 million , before tax, of favorable PYD in first quarter of 2025, compared with$7 million of favorable PYD in first quarter 2024. The net favorable PYD in first quarter 2025 primarily includes reserve reductions in homeowners, automobile liability and physical damage.- 11% growth in earned premium.
- Net investment income of
$57 million , before tax, in first quarter 2025 compared with$50 million in first quarter 2024.
Combined ratio of 106.1 in first quarter 2025 compared with 101.6 in first quarter 2024, primarily due to a 2.8 point increase in the loss and loss adjustment expense ratio, including 14.4 points of higher
- Personal Automobile combined ratio of 93.5 improved 10.4 points from 103.9 in first quarter 2024. The underlying combined ratio of 96.1 improved 8.3 points from 104.4 in first quarter 2024, primarily due to improvement in the underlying loss and loss adjustment expense ratio driven by the impact of double-digit earned pricing increases as well as lower physical damage claim frequency, partially offset by higher automobile claim severities.
- Homeowners combined ratio of 133.2 compared with 96.2 in first quarter 2024, driven by 45.0 points of higher CAY CATs. The underlying combined ratio of 75.1 improved 1.9 points from 77.0 in first quarter 2024, primarily due to improvement in the underlying loss and loss adjustment expense ratio driven by the impact of double-digit earned pricing, partially offset by higher claim severities.
- The expense ratio of 27.0 increased 1.7 points from first quarter 2024, primarily driven by higher direct marketing costs and, to a lesser extent, a higher commission ratio, partially offset by the impact of higher earned premium.
Written premiums in first quarter 2025 were
- Renewal written price increases in automobile and homeowners of 15.8% and 12.3%, respectively, in response to elevated but moderating loss cost trends.
- An increase in new business in both homeowners and automobile from the first quarter of 2024, with homeowners increasing by 82% to
$62 million and automobile increasing by 13% to$81 million . - Flat effective policy count retention in both homeowners and automobile due to strong but moderating renewal written price increases.
7
Employee Benefits
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions, unless otherwise noted) |
2025 |
2024 |
|
|
Net income |
|
|
23% |
|
Core earnings |
|
|
27% |
|
Fully insured ongoing premiums |
|
|
2% |
|
Loss ratio |
71.9% |
73.5% |
(1.6) |
|
Expense ratio |
25.4% |
25.4% |
0.0 |
|
Net income margin |
7.4% |
6.2% |
1.2 |
|
Core earnings margin |
7.6% |
6.1% |
1.5 |
Net income of
Fully insured ongoing premiums were up 2% compared with first quarter 2024, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%. Fully insured ongoing sales were
Loss ratio of 71.9 improved 1.6 points from first quarter 2024.
- Group life loss ratio of 79.9 improved 2.7 points largely driven by lower mortality.
- Group disability loss ratio of 69.0 improved 1.1 points driven by improvement in the paid family and medical leave product loss ratio, partially offset by higher long-term disability incidence, although favorable to long-term historical averages.
Net investment income of
Hartford Funds
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions, unless otherwise noted) |
2025 |
2024 |
|
|
Net income |
|
|
(4)% |
|
Core earnings |
|
|
7% |
|
Daily average Hartford Funds Assets Under Management (AUM) |
|
|
8% |
|
Mutual Funds and exchange-traded funds (ETF) net flows |
|
|
43% |
|
Total Hartford Funds AUM |
|
|
2% |
First quarter 2025 net income of
Core earnings of
8
Daily average AUM of
Mutual fund and ETF net outflows totaled
Corporate
|
Three Months Ended |
|||
|
|
|
Change |
|
|
($ in millions, unless otherwise noted) |
2025 |
2024 |
|
|
Net loss |
|
|
(173)% |
|
Net loss available to common stockholders |
|
|
(130)% |
|
Core loss |
|
|
(24)% |
|
Net investment income, before tax |
|
|
(13)% |
|
Interest expense and preferred dividends, before tax |
|
|
-% |
Net loss available to common stockholders of
INVESTMENT INCOME AND PORTFOLIO DATA:
|
Three Months Ended |
|||
|
($ in millions, unless otherwise noted) |
|
|
Change |
|
2025 |
2024 |
||
|
Net investment income, before tax |
|
|
11% |
|
Annualized investment yield, before tax |
4.3% |
4.1% |
0.2 |
|
Annualized investment yield, before tax, excluding LPs1 |
4.4% |
4.3% |
0.1 |
|
Annualized LP yield, before tax |
3.1% |
1.3% |
1.8 |
|
Annualized investment yield, after tax |
3.4% |
3.3% |
0.1 |
- Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest
U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures
First quarter 2025 consolidated net investment income of
First quarter 2025 net investment income, excluding LPs*, of
First quarter 2025 included
Net realized losses of
9
equity securities in the 2025 period compared to improvements in the 2024 period, and losses on transactional foreign currency revaluation in first quarter 2025.
Total invested assets of
10
Attachments
Disclaimer
The Hartford Announces First Quarter 2025 Financial Results
First Quarter 2025 Investor Financial Supplement
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