- Second quarter 2023 net income available to common stockholders
of $542 million ($1.73 per diluted share) increased 23% from $439
million ($1.32 per diluted share) for the same period in 2022. Core
earnings* of $588 million ($1.88 core earnings per diluted share*)
compared with $716 million ($2.16 core earnings per diluted share)
in the prior year quarter.
- Net income ROE for the trailing 12 months of 14.4% and core
earnings ROE* for the same period of 13.6%.
- Property & Casualty (P&C) written premiums rose 11% in
second quarter 2023, driven by Commercial Lines premium growth of
12%. Group Benefits fully insured ongoing premium growth of 7% in
second quarter 2023.
- P&C current accident year (CAY) catastrophe (CAT) losses of
$226 million, before tax, with $123 million in Commercial Lines and
$103 million in Personal Lines.
- Commercial Lines second quarter combined ratio of 91.2 and
underlying combined ratio* of 88.3.
- Group Benefits second quarter net income margin of 7.0% and
core earnings margin* of 7.6%.
- Returned $484 million to stockholders in the second quarter,
including $350 million of shares repurchased and $134 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 GAAP
measures can be found in this news release under the heading
Discussion of Non-GAAP Financial Measures. ** All amounts and
percentages set forth in this press release are approximate unless
otherwise noted.
The Hartford (NYSE: HIG) today announced financial results for
the quarter ended June 30, 2023.
“The Hartford delivered another strong quarter in a dynamic
market environment for the industry that included elevated
catastrophe losses and inflationary pressure in personal auto. The
underlying fundamentals in our Commercial Lines and Group Benefits
businesses continue to generate exceptional results quarter after
quarter,” said The Hartford's Chairman and CEO Christopher
Swift.
The Hartford's Chief Financial Officer Beth Costello said,
“Commercial Lines had an outstanding quarter with written premium
growth of 12 percent and an underlying combined ratio of 88.3. In
Personal Lines auto, written pricing increases accelerated to 13.8
percent. Group Benefits continued strong momentum from first
quarter driven by 7 percent growth in fully insured ongoing
premiums and a core earnings margin of 7.6 percent. Our investment
performance remains strong. We are actively managing our capital
and, in the second quarter, returned $484 million to shareholders
through repurchases and dividends.”
Swift continued, “Over several successive quarters, our results
affirm that our strategy is working with the combination of
underwriting excellence, product breadth, and technology
advantages. With this consistent track record, we are confident in
our ability to deliver core earnings ROEs in the 14 to 15 percent
range."
CONSOLIDATED RESULTS:
Three Months Ended
($ in millions except per share data)
Jun 30 2023
Jun 30 2022
Change
Net income available to common
stockholders
$542
$439
23%
Net income available to common
stockholders per diluted share1
$1.73
$1.32
31%
Core earnings
$588
$716
(18)%
Core earnings per diluted share
$1.88
$2.16
(13)%
Book value per diluted share
$44.43
$42.27
5%
Book value per diluted share (ex.
accumulated other comprehensive income (AOCI))2
$55.76
$52.14
7%
Net income available to common
stockholders' return on equity (ROE)3, last 12-months
14.4%
13.1%
1.3
Core earnings ROE3, last 12-months
13.6%
14.0%
(0.4)
[1] Includes dilutive potential common
shares; for net income available to common stockholders per diluted
share, the numerator is net income less preferred dividends
[2] Denotes financial measure not
calculated in accordance with generally accepted accounting
principles (non-GAAP); definitions of non-GAAP measures and
reconciliations to their closest GAAP measures can be found in this
news release under the heading Discussion of Non-GAAP Financial
Measures
[3] Return on 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
Second quarter 2023 net income available to common stockholders
was $542 million, or $1.73 per diluted share, compared with $439
million in second quarter 2022, primarily due to a decrease in net
realized losses of $274 million, before tax, largely driven by a
decline in the value of equity securities in the 2022 period due to
lower equity market levels, partially offset by lower P&C
underwriting results, including higher CAY CAT losses.
Second quarter 2023 core earnings of $588 million, or $1.88 per
diluted share, compared with $716 million of core earnings in
second quarter 2022. Contributing to the results were:
- An increase in earnings generated by 9% growth in P&C
earned premium and 7% growth in Group Benefits fully insured
ongoing premium.
- P&C CAY CAT losses of $226 million, before tax, in second
quarter 2023, compared with CAY CAT losses of $123 million in
second quarter 2022.
- Commercial Lines loss and loss adjustment expense ratio of 59.7
compared with 55.3 in second quarter 2022, including 1.7 points of
higher CATs and 2.1 points of less favorable prior accident year
development (PYD). Underlying loss and loss adjustment expense
ratio* increased 0.7 points, to 56.8 in second quarter 2023 from
56.1 in second quarter 2022, primarily driven by a slightly higher
loss ratio in workers' compensation, as expected.
- Personal Lines loss and loss adjustment expense ratio of 89.2
compared with 73.4 in second quarter 2022, including 5.9 points of
higher CATs and 0.4 points of favorable PYD in 2023. Underlying
loss and loss adjustment expense ratio of 76.1 in second quarter
2023 compared with 65.7 in second quarter 2022, with the increase
largely due to higher severity in auto liability and physical
damage, partially offset by earned pricing increases benefiting
both auto and homeowners.
- Group Benefits loss ratio was 72.1% compared with 70.1% driven
primarily by favorable prior quarter reserve development in group
life benefiting the 2022 period and higher group life severity in
the 2023 period.
- The expense ratios improved across P&C and Group Benefits
from second quarter 2022, driven by the impact of higher earned
premium, incremental savings from the Hartford Next operational
transformation and cost reduction program and lower incentive
compensation, as well as lower marketing spend in Personal
Lines.
- Net investment income of $540 million, before tax, compared
with $541 million in second quarter 2022, due to a decrease in
income from limited partnerships and other alternative investments
(LPs), offset by higher yields on our fixed income portfolio.
June 30, 2023, book value per diluted share of $44.43 increased
6.6%, from $41.67 at Dec. 31, 2022, principally due to net income
in excess of stockholder dividends through June 30, 2023, as well
as an improvement in net unrealized losses on investments within
AOCI as a result of credit spread tightening.
Book value per diluted share (excluding AOCI) of $55.76 as of
June 30, 2023, increased 3.9%, from $53.66 at Dec. 31, 2022, as the
impact from net income in excess of stockholder dividends through
June 30, 2023 was partially offset by the dilutive effect of share
repurchases.
Net income available to common stockholders' ROE (net income
ROE) for the 12-month period ending June 30, 2023, was 14.4%, an
increase of 1.3 points from second quarter 2022, primarily due to
an increase in average net unrealized losses on investments in
AOCI.
Core earnings ROE for the 12-month period ending June 30, 2023,
was 13.6%, a decrease of 0.4 points from second quarter 2022 due to
lower trailing 12-month core earnings.
BUSINESS RESULTS:
Commercial Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net income
$458
$389
18%
Core earnings
$493
$544
(9%)
Written premiums
$3,177
$2,836
12%
Underwriting gain1
$254
$333
(24%)
Underlying underwriting gain1
$339
$312
9%
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
56.8
56.1
0.7
Current accident year catastrophes
4.3
2.6
1.7
Favorable prior accident year
development
(1.3)
(3.4)
2.1
Expenses
31.3
31.7
(0.4)
Policyholder dividends
0.2
0.3
(0.1)
Combined ratio
91.2
87.3
3.9
Impact of catastrophes and PYD on combined
ratio
(3.0)
0.8
(3.8)
Underlying combined ratio
88.3
88.1
0.2
[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 GAAP measures can be found in this
news release under the heading Discussion of Non-GAAP Financial
Measures
Second quarter 2023 net income of $458 million compared with net
income of $389 million in second quarter 2022, principally due to
lower net realized losses and earned premium growth, partially
offset by elevated CAY CAT losses, less favorable PYD, and a
slightly higher underlying loss and loss adjustment expense
ratio.
Commercial Lines core earnings of $493 million in second quarter
2023 compared with $544 million in second quarter 2022.
Contributing to the results were:
- CAY CAT losses of $123 million, before tax, in second quarter
2023, primarily from tornado, wind and hail events across several
regions of the United States, compared with CAY CAT losses of $67
million in second quarter 2022.
- Net favorable PYD within core earnings of $38 million, before
tax, in second quarter 2023, compared with $88 million of favorable
PYD within core earnings in second quarter 2022. The net favorable
PYD in second quarter 2023 primarily includes reserve reductions in
workers’ compensation and CATs, partially offset by reserve
increases in general liability, assumed reinsurance and bond.
- An underlying loss and loss adjustment expense ratio of 56.8,
in second quarter 2023 compared with 56.1 in second quarter 2022,
with the increase primarily driven by a slightly higher loss ratio
in workers' compensation, as expected.
- 10% growth in earned premium.
- Net investment income of $364 million before, tax, compared
with $356 million in second quarter 2022, primarily driven by a
higher yield on variable rate securities and reinvesting at higher
rates, partially offset by lower returns on LPs.
Combined ratio was 91.2 in second quarter 2023, 3.9 points
higher than 87.3 in second quarter 2022, primarily due to 1.7
points of higher CAY CAT losses, 2.1 points of less favorable prior
accident reserve development, and a 0.2 point increase in the
underlying combined ratio. Underlying combined ratio of 88.3
increased primarily due to a 0.7 point increase in the underlying
loss and loss adjustment expense ratio partially offset by a 0.4
point decrease in the expense ratio.
- Small Commercial combined ratio of 90.8 compared with 85.2 in
second quarter 2022, including 2.7 points of higher CAY CATs and
0.2 points of less favorable PYD. Underlying combined ratio of 89.7
increased from 86.9 in second quarter 2022, primarily due to higher
non-CAT property losses and a higher loss ratio in workers'
compensation, as expected, partially offset by a lower expense
ratio.
- Middle & Large Commercial combined ratio of 93.6 compared
with 95.6 in second quarter 2022, including 1.8 points of higher
CAY CATs and a 0.3 point increase in unfavorable PYD. Underlying
combined ratio of 88.7 reached record profitability and improved
4.2 points from 92.9 in second quarter 2022, due to lower non-CAT
property losses when compared to elevated losses in the prior year
period and a lower expense ratio.
- Global Specialty combined ratio of 87.3 compared with 85.0 in
second quarter 2022, including 0.6 points of less favorable PYD,
partially offset by 0.2 points of lower CAY CATs. The underlying
combined ratio of 85.0 increased 1.9 points from second quarter
2022, primarily due to slightly elevated losses in a run-off line
within our international book and a higher expense ratio.
- The Commercial Lines expense ratio of 31.3 improved 0.4 points
from second quarter 2022, driven by the impact of higher earned
premium, lower incentive compensation and incremental savings from
the Hartford Next program, partially offset by investments in
technology and higher underwriting staffing costs.
Second quarter 2023 written premiums of $3.2 billion were up 12%
from second quarter 2022, with increases across the segment,
all-time record premium of $1 billion in Middle & Large
Commercial, including continued expansion in property lines,
meaningful growth in new business across the segment, and the
effect of renewal written price increases.
Personal Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net income (loss)
($60)
$6
NM
Core earnings (loss)
($57)
$21
NM
Written premiums
$802
$756
6%
Underwriting loss
$(113)
$(13)
NM
Underlying underwriting gain
(loss)
$(13)
$43
NM
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
76.1
65.7
10.4
Current accident year catastrophes
13.6
7.7
5.9
Unfavorable (favorable) prior accident
year development
(0.4)
0.0
(0.4)
Expenses
25.7
28.4
(2.7)
Combined ratio
114.9
101.8
13.1
Impact of catastrophes and PYD on combined
ratio
(13.2)
(7.7)
(5.5)
Underlying combined ratio
101.7
94.1
7.6
Net loss of $60 million in second quarter 2023 compared with net
income $6 million in second quarter 2022, driven by an underwriting
loss of $113 million in second quarter 2023 compared with an
underwriting loss of $13 million in second quarter 2022.
Personal Lines core loss of $57 million compared with $21
million of core earnings in second quarter 2022. Contributing to
the results were:
- An underlying loss and loss adjustment expense ratio of 76.1 in
second quarter 2023 compared with 65.7 in second quarter 2022, with
the increase primarily driven by higher severity in auto liability
and physical damage, partially offset by high single-digit renewal
earned pricing increases in auto and double-digit earned pricing
increases in homeowners.
- CAY CAT losses of $103 million, before tax, in second quarter
2023, primarily from tornado, wind and hail events across several
regions of the United States, compared with $56 million of CAY CAT
losses in second quarter 2022.
- $3 million, before tax, of favorable PYD in second quarter of
2023 driven by reserve releases for CATs, compared with no PYD in
second quarter 2022. In second quarter 2023, there was no net
increase in prior year reserves for auto liability, as increases
for accident year 2022 from higher estimated severity was fully
offset by improvement, primarily within accident years 2019 to
2021, due to lower estimated severity.
- Net investment income, of $34 million, before tax, in second
quarter 2023 compared with $35 million in second quarter 2022.
Combined ratio of 114.9 in second quarter 2023, compared with
101.8 in second quarter 2022, primarily due to a 10.4 point
increase in the underlying loss and loss adjustment expense ratio,
and a 5.9 point increase in the CAY CAT ratio, partially offset by
0.4 points of favorable PYD in second quarter 2023. Underlying
combined ratio of 101.7 compared with 94.1 in second quarter 2022,
primarily due to an increase in the underlying loss and loss
adjustment expense ratio in auto, partially offset by a 2.7 point
improvement in the expense ratio.
- Auto combined ratio of 116.4 compared with 101.2 in second
quarter 2022. The underlying combined ratio of 111.8 increased from
100.0 in second quarter 2022, primarily due to an increase in auto
liability and physical damage severity, partially offset by an
increase in earned pricing and a lower expense ratio.
- Homeowners combined ratio of 115.1 compared with 103.1 in
second quarter 2022. The underlying combined ratio of 79.6 improved
from 82.0 in second quarter 2022, primarily due to a lower expense
ratio, and the effect of double-digit earned pricing increases
which offset the change in weather and non-weather loss costs.
The expense ratio of 25.7 improved 2.7 points from second
quarter 2022, primarily driven by lower direct marketing costs and,
to a lesser extent, the impact of higher earned premium and
incremental savings from the Hartford Next program.
Written premiums in second quarter 2023 were $802 million
compared with $756 million in second quarter 2022 with:
- Higher renewal written price increases in auto and homeowners
in response to increased loss cost trends.
- An increase in homeowners' new business.
- A slight increase in auto policy count retention with
homeowners' retention flat.
- A partial offset from a decline in auto new business.
Group Benefits
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net income
$121
$106
14%
Core earnings
$133
$163
(18%)
Fully insured ongoing premiums
$1,574
$1,469
7%
Loss ratio
72.1%
70.1%
2.0
Expense ratio
24.5%
25.2%
(0.7)
Net income margin
7.0%
6.7%
0.3
Core earnings margin
7.6%
9.9%
(2.3)
Net income of $121 million in second quarter 2023 compared with
a net income of $106 million in second quarter 2022, largely driven
by lower net realized losses and additional earnings generated by
growth in fully insured ongoing premium, partially offset by a
higher group life loss ratio and lower net investment income.
Core earnings were $133 million, decreasing from $163 million in
second quarter 2022, largely driven by a higher group life loss
ratio, and lower net investment income, partially offset by strong
long-term disability results and earnings generated from 7% growth
in fully insured ongoing premiums.
Fully insured ongoing premiums were up 7% compared with second
quarter 2022, driven by strong persistency and new business sales
as well as an increase in exposure on existing accounts. Fully
insured ongoing sales were $151 million in second quarter 2023,
down 26% over second quarter 2022, due to a decrease in large
account sales.
Loss ratio of 72.1% increased 2.0 points from second quarter
2022.
- Group life loss ratio of 84.1% increased 5.5 points. The prior
year loss ratio included favorable prior quarter development of $24
million, 4.0 points, adversely impacting the year over year
comparison. Additionally, the current year loss ratio reflects
higher severity of claims.
- Group disability loss ratio was 67.0% compared with 66.3% in
second quarter 2022. Favorable long-term disability claim incidence
and strong recoveries in 2023 were more than offset by modestly
higher short-term disability and Paid Family Leave incidence when
compared to the 2022 period.
Expense ratio of 24.5 improved 0.7 points from second quarter
2022, primarily due to the effect of higher earned premiums, and
incremental expense savings from Hartford Next, partially offset by
higher staffing costs and investments in technology.
Hartford Funds
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net income
$45
$34
32%
Core earnings
$44
$44
0%
Daily average Hartford Funds
AUM
$127,540
$136,841
(7)%
Mutual Funds and exchange-traded funds
(ETF) net flows
$(1,256)
$(2,011)
38%
Total Hartford Funds AUM
$129,906
$127,398
2%
Net income of $45 million in second quarter 2023, compared with
$34 million in second quarter 2022, primarily driven by net
realized gains in 2023 compared with net realized losses in 2022,
partially offset by lower fee income net of variable expenses
driven by lower daily average Hartford Funds AUM.
Core earnings of $44 million were flat compared with the prior
year period largely driven by higher net investment income, offset
by lower fee income net of variable expenses driven by lower daily
average Hartford Funds AUM.
Daily average AUM of $128 billion in second quarter 2023
declined 7% from second quarter 2022, driven by net outflows over
the preceding twelve months partially offset by an increase in
market values.
Mutual fund and ETF net outflows totaled $1.3 billion in second
quarter 2023, compared with net outflows of $2.0 billion in second
quarter 2022.
Corporate
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net loss
$(26)
$(71)
63%
Net loss available to common
stockholders
$(31)
$(76)
59%
Core loss
$(35)
$(43)
19%
Net investment income, before
tax
$8
$3
167%
Interest expense and preferred
dividends, before tax
$55
$56
(2)%
Net loss available to common stockholders of $31 million in
second quarter 2023 compared with a net loss available to common
stockholders of $76 million in second quarter 2022, primarily
driven by a change to net realized gains in 2023 from net realized
losses in 2022 and a loss on extinguishment of debt in second
quarter 2022.
Second quarter 2023 core loss of $35 million compared with a
second quarter 2022 core loss of $43 million primarily due to an
increase in net investment income.
INVESTMENT INCOME AND PORTFOLIO DATA:
Three Months Ended
($ in millions, unless otherwise
noted)
Jun 30 2023
Jun 30 2022
Change
Net investment income, before
tax
$540
$541
—%
Annualized investment yield, before
tax
3.9%
3.9%
0.0
Annualized investment yield, before
tax, excluding LPs1
4.0%
3.0%
1.0
Annualized LP yield, before tax
2.9%
17.3%
(14.4)
Annualized investment yield, after
tax
3.1%
3.2%
(0.1)
[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 GAAP measures can be found in this
news release under the heading Discussion of Non-GAAP Financial
Measures
Second quarter 2023 consolidated net investment income of $540
million compared with $541 million in second quarter 2022, largely
driven by lower income from LPs in the current period, offset by a
higher yield on variable rate securities and reinvesting at higher
rates.
Second quarter 2023 included $32 million, before tax, or a 2.9%
annualized return, on LPs, while second quarter of 2022 included
$158 million of LP income, or a 17.3% annualized return. Lower LP
income driven by income from sales of underlying real estate
properties in the 2022 period as well as lower valuations on real
estate funds in 2023.
Net realized losses of $64 million, before tax, in second
quarter 2023 improved by $274 million from losses of $338 million,
before tax, in second quarter 2022 primarily due to net losses on
equity securities in the 2022 period due to a decline in value.
Total invested assets of $52.7 billion increased slightly from
Dec. 31, 2022, primarily due to an increase in fixed maturities,
available-for-sale, at fair value and LPs, partially offset by a
decrease in equity securities, at fair value and short-term
investments.
CONFERENCE CALL
The Hartford will discuss its second quarter 2023 financial
results on a webcast at 9:00 a.m. EDT on Friday, July 28, 2023. The
call can be accessed via a live listen-only webcast or as a replay
through the Investor Relations section of The Hartford's website at
https://ir.thehartford.com. The replay will be accessible
approximately one hour after the conclusion of the call and be
available along with a transcript of the event for at least one
year.
More detailed financial information can be found in The
Hartford's Investor Financial Supplement for June 30, 2023, and the
second quarter 2023 Financial Results Presentation, both of which
are available at https://ir.thehartford.com.
About The Hartford
The Hartford is a leader in property and casualty insurance,
group benefits and mutual funds. With more than 200 years of
expertise, The Hartford is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at https://www.thehartford.com.
The Hartford Financial Services Group, Inc., (NYSE: HIG)
operates through its subsidiaries under the brand name, The
Hartford, and is headquartered in Hartford, Connecticut. For
additional details, please read
https://www.thehartford.com/legal-notice.
HIG-F
From time to time, The Hartford may use its website and/or
social media outlets, such as Twitter and Facebook, to disseminate
material company information. Financial and other important
information regarding The Hartford is routinely accessible through
and posted on our website at https://ir.thehartford.com. In
addition, you may automatically receive email alerts and other
information about The Hartford when you enroll your email address
by visiting the “Email Alerts” section at
https://ir.thehartford.com.
THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
CONSOLIDATING INCOME
STATEMENTS
Three Months Ended June 30,
2023
($ in millions)
Commercial Lines
Personal Lines
P&C
Other Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$
2,886
$
760
$
—
$
1,574
$
—
$
—
$
5,220
Fee income
10
7
—
56
244
11
328
Net investment income
364
34
17
113
4
8
540
Net realized gains (losses)
(51
)
(5
)
(1
)
(19
)
1
11
(64
)
Other revenue
1
24
—
—
—
—
25
Total revenues
3,210
820
16
1,724
249
30
6,049
Benefits, losses, and loss adjustment
expenses
1,723
678
2
1,175
—
2
3,580
Amortization of DAC
436
57
—
9
—
—
502
Insurance operating costs and other
expenses
477
162
2
381
192
11
1,225
Restructuring and other costs
—
—
—
—
—
3
3
Interest expense
—
—
—
—
—
50
50
Amortization of other intangible
assets
7
—
—
10
—
—
17
Total benefits, losses and
expenses
2,643
897
4
1,575
192
66
5,377
Income (loss) before income
taxes
567
(77
)
12
149
57
(36
)
672
Income tax expense (benefit)
109
(17
)
3
28
12
(10
)
125
Net income (loss)
458
(60
)
9
121
45
(26
)
547
Preferred stock dividends
—
—
—
—
—
5
5
Net income (loss) available to common
stockholders
458
(60
)
9
121
45
(31
)
542
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses (gains), excluded from
core earnings, before tax
43
4
1
16
(1
)
(10
)
53
Restructuring and other costs, before
tax
3
3
Integration and other non-recurring
M&A costs, before tax
2
—
—
—
—
—
2
Income tax expense (benefit)
(10
)
(1
)
—
(4
)
—
3
(12
)
Core earnings (loss)
$
493
$
(57
)
$
10
$
133
$
44
$
(35
)
$
588
THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
CONSOLIDATING INCOME
STATEMENTS
Three Months Ended June 30,
2022
($ in millions)
Commercial Lines
Personal Lines
P&C
Other Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$
2,615
$
726
$
—
$
1,469
$
—
$
—
$
4,810
Fee income
10
7
—
48
263
13
341
Net investment income
356
35
16
130
1
3
541
Net realized losses
(198
)
(18
)
(9
)
(70
)
(13
)
(30
)
(338
)
Other revenue (loss)
—
19
—
—
—
—
19
Total revenues
2,783
769
7
1,577
251
(14
)
5,373
Benefits, losses, and loss adjustment
expenses
1,446
533
30
1,063
—
2
3,074
Amortization of DAC
385
56
—
9
—
—
450
Insurance operating costs and other
expenses
455
173
2
365
207
23
1,225
Restructuring and other costs
—
—
—
—
—
2
2
Interest expense
—
—
—
—
—
51
51
Amortization of other intangible
assets
7
—
—
10
—
—
17
Total benefits, losses and
expenses
2,293
762
32
1,447
207
78
4,819
Income (loss) before income
taxes
490
7
(25
)
130
44
(92
)
554
Income tax expense (benefit)
101
1
(5
)
24
10
(21
)
110
Net income (loss)
389
6
(20
)
106
34
(71
)
444
Preferred stock dividends
—
—
—
—
—
5
5
Net income (loss) available to common
stockholders
389
6
(20
)
106
34
(76
)
439
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses, excluded from core
earnings, before tax
194
19
9
70
13
31
336
Loss on extinguishment of debt, before
tax
—
—
—
—
—
9
9
Restructuring and other costs
—
—
—
—
—
2
2
Integration and other non-recurring
M&A costs, before tax
4
—
—
2
—
—
6
Income tax benefit
(43
)
(4
)
(2
)
(15
)
(3
)
(9
)
(76
)
Core earnings (loss)
$
544
$
21
$
(13
)
$
163
$
44
$
(43
)
$
716
The Hartford defines increases or decreases greater than or
equal to 200%, or changes from a net gain to a net loss position,
or vice versa, as "NM" or not meaningful.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
The Hartford uses non-GAAP financial measures in this press
release to assist investors in analyzing the company's operating
performance for the periods presented herein. Because The
Hartford's calculation of these measures may differ from similar
measures used by other companies, investors should be careful when
comparing The Hartford's non-GAAP financial measures to those of
other companies. Definitions and calculations of other financial
measures used in this press release can be found below and in The
Hartford's Investor Financial Supplement for second quarter 2023,
which is available on The Hartford's website,
https://ir.thehartford.com.
Annualized investment yield, excluding
limited partnerships and other alternative investments -
This non-GAAP measure is calculated as (a) the annualized net
investment income, on a Consolidated, P&C or Group Benefits
level, excluding limited partnerships and other alternative
investments, divided by (b) the monthly average invested assets at
amortized cost, excluding repurchase agreement and securities
lending collateral, derivatives book value, and limited
partnerships and other alternative investments. The Company
believes that annualized investment yield, excluding limited
partnerships and other alternative investments, provides investors
with an important measure of the trend in investment earnings
because it excludes the impact of the volatility in returns related
to limited partnerships and other alternative investments.
Annualized investment yield is the most directly comparable GAAP
measure. A reconciliation of the annualized investment yield to
annualized investment yield excluding limited partnerships and
other alternatives investments for the quarterly periods ended June
30, 2023 and 2022 is provided in the table below.
Three Months Ended
Jun 30 2023
Jun 30 2022
Consolidated
Annualized investment yield
3.9
%
3.9
%
Adjustment for income from limited
partnerships and other alternative investments
0.1
%
(0.9
)%
Annualized investment yield excluding
limited partnerships and other alternative investments
4.0
%
3.0
%
Book value per diluted share (excluding
AOCI) - This is a non-GAAP per share measure that is
calculated by dividing (a) common stockholders' equity, excluding
AOCI, after tax, by (b) common shares outstanding and dilutive
potential common shares. The Company provides this measure to
enable investors to analyze the amount of the Company's net worth
that is primarily attributable to the Company's business
operations. The Company believes that excluding AOCI from the
numerator is useful to investors because it eliminates the effect
of items that can fluctuate significantly from period to period,
primarily based on changes in interest rates. Book value per
diluted share is the most directly comparable U.S. GAAP measure. A
reconciliation of book value per diluted share to book value per
diluted share (excluding AOCI) is provided in the table below.
As of
Jun 30 2023
Dec 31 2022
Change
Book value per diluted share
$44.43
$41.67
7%
Per diluted share impact of AOCI
$11.33
$11.99
(6%)
Book value per diluted share (excluding
AOCI)
$55.76
$53.66
4%
As of
Jun 30 2023
Jun 30 2022
Change
Book value per diluted share
$44.43
$42.27
5%
Per diluted share impact of AOCI
$11.33
$9.87
15%
Book value per diluted share (excluding
AOCI)
$55.76
$52.14
7%
Core earnings - The Hartford
uses the non-GAAP measure core earnings as an important measure of
the Company’s operating performance. The Hartford believes that
core earnings provides investors with a valuable measure of the
performance of the Company’s ongoing businesses because it reveals
trends in our insurance and financial services businesses that may
be obscured by including the net effect of certain items.
Therefore, the following items are excluded from core earnings:
- Certain realized gains and losses - Generally realized gains
and losses are primarily driven by investment decisions and
external economic developments, the nature and timing of which are
unrelated to the insurance and underwriting aspects of our
business. Accordingly, core earnings excludes the effect of all
realized gains and losses that tend to be highly variable from
period to period based on capital market conditions. The Hartford
believes, however, that some realized gains and losses are
integrally related to our insurance operations, so core earnings
includes net realized gains and losses such as net periodic
settlements on credit derivatives. These net realized gains and
losses are directly related to an offsetting item included in the
income statement such as net investment income.
- Restructuring and other costs - Costs incurred as part of a
restructuring plan are not a recurring operating expense of the
business.
- Loss on extinguishment of debt - Largely consisting of
make-whole payments or tender premiums upon paying debt off before
maturity, these losses are not a recurring operating expense of the
business.
- Gains and losses on reinsurance transactions - Gains or losses
on reinsurance, such as those entered into upon sale of a business
or to reinsure loss reserves, are not a recurring operating expense
of the business.
- Integration and other non-recurring M&A costs - These
costs, including transaction costs incurred in connection with an
acquired business, are incurred over a short period of time and do
not represent an ongoing operating expense of the business.
- Change in loss reserves upon acquisition of a business - These
changes in loss reserves are excluded from core earnings because
such changes could obscure the ability to compare results in
periods after the acquisition to results of periods prior to the
acquisition.
- Deferred gain resulting from retroactive reinsurance and
subsequent changes in the deferred gain - Retroactive reinsurance
agreements economically transfer risk to the reinsurers and
excluding the deferred gain on retroactive reinsurance and related
amortization of the deferred gain from core earnings provides
greater insight into the economics of the business.
- Change in valuation allowance on deferred taxes related to
non-core components of before tax income - These changes in
valuation allowances are excluded from core earnings because they
relate to non-core components of before tax income, such as tax
attributes like capital loss carryforwards.
- Results of discontinued operations - These results are excluded
from core earnings for businesses sold or held for sale because
such results could obscure the ability to compare period over
period results for our ongoing businesses.
In addition to the above components of net income available to
common stockholders that are excluded from core earnings, preferred
stock dividends declared, which are excluded from net income, are
included in the determination of core earnings. Preferred stock
dividends are a cost of financing more akin to interest expense on
debt and are expected to be a recurring expense as long as the
preferred stock is outstanding.
Net income (loss) and net income (loss) available to common
stockholders are the most directly comparable U.S. GAAP measures to
core earnings. Core earnings should not be considered as a
substitute for net income (loss) or net income (loss) available to
common stockholders and does not reflect the overall profitability
of the Company’s business. Therefore, The Hartford believes that it
is useful for investors to evaluate net income (loss), net income
(loss) available to common stockholders, and core earnings when
reviewing the Company’s performance.
A reconciliation of net income (loss) to core earnings for the
quarterly periods ended June 30, 2023 and 2022, is included in this
press release. A reconciliation of net income (loss) to core
earnings for individual reporting segments can be found in this
press release under the heading "The Hartford Financial Services
Group, Inc. Consolidating Income Statements" and in The Hartford's
Investor Financial Supplement for the quarter ended June 30,
2023.
Core earnings margin - The
Hartford uses the non-GAAP measure core earnings margin to
evaluate, and believes it is an important measure of, the Group
Benefits segment's operating performance. Core earnings margin is
calculated by dividing core earnings by revenues, excluding buyouts
and realized gains (losses). Net income margin, calculated by
dividing net income by revenues, is the most directly comparable
U.S. GAAP measure. The Company believes that core earnings margin
provides investors with a valuable measure of the performance of
Group Benefits because it reveals trends in the business that may
be obscured by the effect of buyouts and realized gains (losses) as
well as other items excluded in the calculation of core earnings.
Core earnings margin should not be considered as a substitute for
net income margin and does not reflect the overall profitability of
Group Benefits. Therefore, the Company believes it is important for
investors to evaluate both core earnings margin and net income
margin when reviewing performance. A reconciliation of net income
margin to core earnings margin for the quarterly periods ended June
30, 2023 and 2022, is set forth below.
Three Months Ended
Margin
Jun 30 2023
Jun 30 2022
Change
Net income margin
7.0%
6.7%
0.3
Adjustments to reconcile net income
margin to core earnings margin:
Net realized losses, before tax
0.8%
4.1%
(3.3)
Integration and other non-recurring
M&A costs, before tax
—%
0.1%
(0.1)
Income tax benefit on items excluded from
core earnings
(0.2)%
(1.0)%
0.8
Core earnings margin
7.6%
9.9%
(2.3)
Core earnings per diluted
share - This non-GAAP per share measure is calculated
using the non-GAAP financial measure core earnings rather than the
GAAP measure net income. The Company believes that core earnings
per diluted share provides investors with a valuable measure of the
Company's operating performance for the same reasons applicable to
its underlying measure, core earnings. Net income (loss) available
to common stockholders per diluted common share is the most
directly comparable GAAP measure. Core earnings per diluted share
should not be considered as a substitute for net income (loss)
available to common stockholders per diluted common share and does
not reflect the overall profitability of the Company's business.
Therefore, the Company believes that it is useful for investors to
evaluate net income (loss) available to common stockholders per
diluted common share and core earnings per diluted share when
reviewing the Company's performance. A reconciliation of net income
available to common stockholders per diluted common share to core
earnings per diluted share for the quarterly periods ended June 30,
2023 and 2022 is provided in the table below.
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common
stockholders per share1
$1.73
$1.32
31%
Adjustments made to reconcile net
income available to common stockholders per diluted share to core
earnings per diluted share:
Net realized losses, excluded from core
earnings, before tax
0.17
1.01
(83)%
Restructuring and other costs, before
tax
0.01
0.01
—%
Loss on extinguishment of debt, before
tax
—
0.03
(100)%
Integration and other non-recurring
M&A costs, before tax
0.01
0.02
(50)%
Income tax benefit on items excluded from
core earnings
(0.04)
(0.23)
83%
Core earnings per diluted share
$1.88
$2.16
(13)%
[1] Net income available to common
stockholders includes dilutive potential common shares
Core Earnings Return on
Equity - The Company provides different measures of the
return on stockholders' equity (ROE). Core earnings ROE is
calculated based on non-GAAP financial measures. Core earnings ROE
is calculated by dividing (a) the non-GAAP measure core earnings
for the prior four fiscal quarters by (b) the non-GAAP measure
average common stockholders' equity, excluding AOCI. Net income ROE
is the most directly comparable U.S. GAAP measure. The Company
excludes AOCI in the calculation of core earnings ROE to provide
investors with a measure of how effectively the Company is
investing the portion of the Company's net worth that is primarily
attributable to the Company's business operations. The Company
provides to investors return on equity measures based on its
non-GAAP core earnings financial measure for the reasons set forth
in the core earnings definition. A quantitative reconciliation of
net income available to common stockholders ROE to core earnings
ROE is not calculable on a forward-looking basis because it is not
possible to provide a reliable forecast of realized gains and
losses, which typically vary substantially from period to
period.
A reconciliation of consolidated net income available to common
stockholders ROE to consolidated core earnings ROE is set forth
below.
Last Twelve Months
Ended
Jun 30 2023
Jun 30 2022
Net income available to common
stockholders ROE
14.4%
13.1%
Adjustments to reconcile net income
available to common stockholders ROE to core earnings ROE:
Net realized losses excluded from core
earnings, before tax
1.5%
1.3%
Restructuring and other costs, before
tax
0.1%
—%
Loss on extinguishment of debt, before
tax
—%
0.1%
Integration and other non-recurring
M&A costs, before tax
0.1%
0.2%
Change in deferred gain on retroactive
reinsurance, before tax
1.7%
1.3%
Income tax benefit on items not included
in core earnings
(0.8)%
(0.6)%
Impact of AOCI, excluded from core
earnings ROE
(3.4)%
(1.4)%
Core earnings ROE
13.6%
14.0%
Underlying combined ratio-
This non-GAAP financial measure of underwriting results represents
the combined ratio before catastrophes, prior accident year
development and current accident year change in loss reserves upon
acquisition of a business. Combined ratio is the most directly
comparable GAAP measure. The Company believes this ratio is an
important measure of the trend in profitability since it removes
the impact of volatile and unpredictable catastrophe losses and
prior accident year loss and loss adjustment expense reserve
development. The changes to loss reserves upon acquisition of a
business are excluded from underlying combined ratio because such
changes could obscure the ability to compare results in periods
after the acquisition to results of periods prior to the
acquisition as such trends are valuable to our investors' ability
to assess the Company's financial performance. A reconciliation of
the combined ratio to the underlying combined ratio for individual
reporting segments can be found in this press release under the
heading "Business Results" for Commercial Lines" and "Personal
Lines". A reconciliation of the combined ratio to underlying
combined ratio for lines of business within the Company's P&C
reporting segments is set forth below.
SMALL COMMERCIAL
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Combined ratio
90.8
85.2
5.6
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(5.7
)
(3.0
)
(2.7
)
Prior accident year development
4.5
4.7
(0.2
)
Underlying combined ratio
89.7
86.9
2.8
MIDDLE & LARGE COMMERCIAL
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Combined ratio
93.6
95.6
(2.0
)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(3.8
)
(2.0
)
(1.8
)
Prior accident year development
(1.1
)
(0.8
)
(0.3
)
Underlying combined ratio
88.7
92.9
(4.2
)
GLOBAL SPECIALTY
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Combined ratio
87.3
85.0
2.3
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(2.6
)
(2.8
)
0.2
Prior accident year development
0.3
0.9
(0.6
)
Underlying combined ratio
85.0
83.1
1.9
PERSONAL LINES AUTO
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Combined ratio
116.4
101.2
15.2
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(3.8
)
(1.4
)
(2.4
)
Prior accident year development
(0.8
)
0.2
(1.0
)
Underlying combined ratio
111.8
100.0
11.8
PERSONAL LINES HOMEOWNERS
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Combined ratio
115.1
103.1
12.0
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(35.5
)
(21.2
)
(14.3
)
Prior accident year development
(0.1
)
0.1
(0.2
)
Underlying combined ratio
79.6
82.0
(2.4
)
Underwriting gain (loss) -
The Hartford's management evaluates profitability of the Commercial
and Personal Lines segments primarily on the basis of underwriting
gain or loss. Underwriting gain (loss) is a before tax non-GAAP
measure that represents earned premiums less incurred losses, loss
adjustment expenses and underwriting expenses. Net income (loss) is
the most directly comparable GAAP measure. Underwriting gain (loss)
is influenced significantly by earned premium growth and the
adequacy of The Hartford's pricing. Underwriting profitability over
time is also greatly influenced by The Hartford's underwriting
discipline, as management strives to manage exposure to loss
through favorable risk selection and diversification, effective
management of claims, use of reinsurance and its ability to manage
its expenses. The Hartford believes that underwriting gain (loss)
provides investors with a valuable measure of profitability, before
tax, derived from underwriting activities, which are managed
separately from the Company's investing activities. A
reconciliation of net income to underwriting gain (loss) for the
quarterly periods ended June 30, 2023 and 2022, is set forth
below.
Underlying underwriting gain
(loss) - This non-GAAP measure of underwriting
profitability represents underwriting gain (loss) before current
accident year catastrophes, PYD and current accident year change in
loss reserves upon acquisition of a business. The most directly
comparable GAAP measure is net income (loss). The Company believes
underlying underwriting gain (loss) is important to understand the
Company’s periodic earnings because the volatile and unpredictable
nature (i.e., the timing and amount) of catastrophes and prior
accident year reserve development could obscure underwriting
trends. The changes to loss reserves upon acquisition of a business
are also excluded from underlying underwriting gain (loss) because
such changes could obscure the ability to compare results in
periods after the acquisition to results of periods prior to the
acquisition as such trends are valuable to our investors' ability
to assess the Company's financial performance. A reconciliation of
net income (loss) to underlying underwriting gain (loss) for
individual reporting segments for the quarterly periods ended June
30, 2023 and 2022, is set forth below.
COMMERCIAL LINES
Three Months Ended
Jun 30 2023
Jun 30 2022
Net income
$
458
$
389
Adjustments to reconcile net income to
underwriting gain:
Net investment income
(364
)
(356
)
Net realized losses
51
198
Other expense
—
1
Income tax expense
109
101
Underwriting gain
254
333
Adjustments to reconcile underwriting
gain to underlying underwriting gain:
Current accident year catastrophes
123
67
Prior accident year development
(38
)
(88
)
Underlying underwriting gain
$
339
$
312
PERSONAL LINES
Three Months Ended
Jun 30 2023
Jun 30 2022
Net income (loss)
$
(60
)
$
6
Adjustments to reconcile net income
(loss) to underwriting loss:
Net investment income
(34
)
(35
)
Net realized losses
5
18
Net servicing and other income
(7
)
(3
)
Income tax expense (benefit)
(17
)
1
Underwriting loss
(113
)
(13
)
Adjustments to reconcile underwriting
gain (loss) to underlying underwriting gain (loss):
Current accident year catastrophes
103
56
Prior accident year development
(3
)
—
Underlying underwriting gain
(loss)
$
(13
)
$
43
Underlying loss and loss adjustment
expense ratio - This non-GAAP financial measure of the
loss and loss adjustment expense ratio for Commercial Lines and
Personal Lines represents the loss and loss adjustment expense
ratio before catastrophes and prior accident year development. The
loss and loss adjustment expense ratio is the most directly
comparable GAAP measure. The underlying loss and loss adjustment
expense ratio is an important measure of the trend in profitability
since it removes the impact of volatile and unpredictable
catastrophe losses and prior accident year reserve development. A
reconciliation of the loss and loss adjustment expense ratio to the
underlying loss and loss adjustment expense ratio for the quarterly
periods ended June 30, 2023 and 2022, is set forth below.
COMMERCIAL LINES
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
59.7
55.3
4.4
Current accident year catastrophes
(4.3
)
(2.6
)
(1.7
)
Prior accident year development
1.3
3.4
(2.1
)
Underlying loss and loss adjustment
expense ratio
56.8
56.1
0.7
PERSONAL LINES
Three Months Ended
Jun 30 2023
Jun 30 2022
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
89.2
73.4
15.8
Current accident year catastrophes
(13.6
)
(7.7
)
(5.9
)
Prior accident year development
0.4
—
0.4
Underlying loss and loss adjustment
expense ratio
76.1
65.7
10.4
SAFE HARBOR STATEMENT
Certain of the statements contained herein are forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“projects,” and similar references to future periods.
Forward-looking statements are based on management's current
expectations and assumptions regarding future economic,
competitive, legislative and other developments and their potential
effect upon The Hartford Financial Services Group, Inc. and its
subsidiaries (collectively, the "Company" or "The Hartford").
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual results could
differ materially from expectations depending on the evolution of
various factors, including the risks and uncertainties identified
below, as well as factors described in such forward-looking
statements; or in The Hartford’s 2022 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and our other filings with the
Securities and Exchange Commission.
Risks Relating to Economic, Political and
Global Market Conditions: challenges related to the
Company’s current operating environment, including global
political, economic and market conditions, and the effect of
financial market disruptions, economic downturns, changes in trade
regulation including tariffs and other barriers or other
potentially adverse macroeconomic developments on the demand for
our products and returns in our investment portfolios; the effects
of the continued COVID-19 pandemic, including exposure to COVID-19
business interruption property claims, the possibility of a
resurgence of COVID-19 related losses in Group Benefits, and the
potential for further legislative, regulatory or judicial actions
pertaining to insurance underwriting and claims; market risks
associated with our business, including changes in credit spreads,
equity prices, interest rates, inflation rate, foreign currency
exchange rates and market volatility; the impact on our investment
portfolio if our investment portfolio is concentrated in any
particular segment of the economy; the impacts of changing climate
and weather patterns on our businesses, operations and investment
portfolio including on claims, demand and pricing of our products,
the availability and cost of reinsurance, our modeling data used to
evaluate and manage risks of catastrophes and severe weather
events, the value of our investment portfolios and credit risk with
reinsurers and other counterparties;
Insurance Industry and Product-Related
Risks: the possibility of unfavorable loss development,
including with respect to long-tailed exposures; the significant
uncertainties that limit our ability to estimate the ultimate
reserves necessary for asbestos and environmental claims; the
possibility of another pandemic, civil unrest, earthquake, or other
natural or man-made disaster that may adversely affect our
businesses; weather and other natural physical events, including
the intensity and frequency of thunderstorms, tornadoes, hail,
wildfires, flooding, winter storms, hurricanes and tropical storms,
as well as climate change and its potential impact on weather
patterns; the possible occurrence of terrorist attacks and the
Company’s inability to contain its exposure as a result of, among
other factors, the inability to exclude coverage for terrorist
attacks from workers' compensation policies and limitations on
reinsurance coverage from the federal government under applicable
laws; the Company’s ability to effectively price its products and
policies, including its ability to obtain regulatory consents to
pricing actions or to non-renewal or withdrawal of certain product
lines; actions by competitors that may be larger or have greater
financial resources than we do; technological changes, including
usage-based methods of determining premiums, advancements in
automotive safety features, the development of autonomous vehicles,
and platforms that facilitate ride sharing; the Company's ability
to market, distribute and provide insurance products and investment
advisory services through current and future distribution channels
and advisory firms; the uncertain effects of emerging claim and
coverage issues; political instability, politically motivated
violence or civil unrest, which may increase the frequency and
severity of insured losses;
Financial Strength, Credit and
Counterparty Risks: risks to our business, financial
position, prospects and results associated with negative rating
actions or downgrades in the Company’s financial strength and
credit ratings or negative rating actions or downgrades relating to
our investments; capital requirements which are subject to many
factors, including many that are outside the Company’s control,
such as National Association of Insurance Commissioners ("NAIC")
risk based capital formulas, rating agency capital models, Funds at
Lloyd's and Solvency Capital Requirement, which can in turn affect
our credit and financial strength ratings, cost of capital,
regulatory compliance and other aspects of our business and
results; losses due to nonperformance or defaults by others,
including credit risk with counterparties associated with
investments, derivatives, premiums receivable, reinsurance
recoverables and indemnifications provided by third parties in
connection with previous dispositions; the potential for losses due
to our reinsurers' unwillingness or inability to meet their
obligations under reinsurance contracts and the availability,
pricing and adequacy of reinsurance to protect the Company against
losses; state and international regulatory limitations on the
ability of the Company and certain of its subsidiaries to declare
and pay dividends;
Risks Relating to Estimates, Assumptions
and Valuations: risks associated with the use of analytical
models in making decisions in key areas such as underwriting,
pricing, capital management, reserving, investments, reinsurance
and catastrophe risk management; the potential for differing
interpretations of the methodologies, estimations and assumptions
that underlie the Company’s fair value estimates for its
investments and the evaluation of intent-to-sell impairments and
allowance for credit losses on available-for-sale securities and
mortgage loans; the potential for impairments of our goodwill;
Strategic and Operational Risks:
the Company’s ability to maintain the availability of its systems
and safeguard the security of its data in the event of a disaster,
cyber or other information security incident or other unanticipated
event; the potential for difficulties arising from outsourcing and
similar third-party relationships; the risks, challenges and
uncertainties associated with capital management plans, expense
reduction initiatives and other actions; risks associated with
acquisitions and divestitures, including the challenges of
integrating acquired companies or businesses, which may result in
our inability to achieve the anticipated benefits and synergies and
may result in unintended consequences; difficulty in attracting and
retaining talented and qualified personnel, including key
employees, such as executives, managers and employees with strong
technological, analytical and other specialized skills; the
Company’s ability to protect its intellectual property and defend
against claims of infringement;
Regulatory and Legal Risks: the
cost and other potential effects of increased federal, state and
international regulatory and legislative developments, including
those that could adversely impact the demand for the Company’s
products, operating costs and required capital levels; unfavorable
judicial or legislative developments; the impact of changes in
federal, state or foreign tax laws; regulatory requirements that
could delay, deter or prevent a takeover attempt that stockholders
might consider in their best interests; and the impact of potential
changes in accounting principles and related financial reporting
requirements.
Any forward-looking statement made by the Company in this
document speaks only as of the date of this release. Factors or
events that could cause the Company’s actual results to differ may
emerge from time to time, and it is not possible for the Company to
predict all of them. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727567006/en/
Media Contacts: Michelle Loxton 860-547-7413
michelle.loxton@thehartford.com
Matthew Sturdevant 860-547-8664
matthew.sturdevant@thehartford.com
Investor Contact: Susan Spivak Bernstein 860-547-6233
susan.spivak@thehartford.com
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