Increased quarterly common dividend per share by 11%
- Third quarter 2023 net income available to common stockholders
of $645 million ($2.09 per diluted share) increased 93% from $334
million ($1.02 per diluted share) over the same period in 2022.
Core earnings* of $708 million ($2.29 core earnings per diluted
share*) increased 50% from $472 million ($1.45 core earnings per
diluted share) in the prior year quarter.
- Net income ROE for the trailing 12 months of 17.7% and core
earnings ROE* for the same period of 14.9%.
- Property & Casualty (P&C) written premiums rose 8% in
third quarter 2023 compared with third quarter 2022, driven by both
Commercial Lines and Personal Lines. Group Benefits fully insured
ongoing premium growth of 8% in third quarter 2023.
- Commercial Lines third quarter combined ratio of 90.2 and
underlying combined ratio* of 87.8.
- Group Benefits third quarter net income margin of 8.5% and core
earnings margin* of 9.8%.
- Returned $481 million to stockholders in the third quarter,
including $350 million of shares repurchased and $131 million in
common stockholder dividends paid. Increased the quarterly common
dividend per share by 11%, to $0.47, payable Jan. 3, 2024 to
shareholders of record at the close of business on Dec. 1,
2023.
* 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 Sept. 30, 2023.
“The Hartford continues to deliver strong financial performance
with a 12-month core earnings ROE of 14.9 percent," said The
Hartford's Chairman and CEO Christopher Swift. "Results were driven
by continued momentum and exceptional performance in our Commercial
Lines and Group Benefits businesses, representing over 85 percent
of earned premium, and a strong contribution from investments.”
The Hartford's Chief Financial Officer Beth Costello said,
“Commercial Lines had an outstanding quarter with an underlying
combined ratio of 87.8. Personal Lines achieved sustained
double-digit written pricing increases with acceleration in auto to
19.7 percent in the quarter. Group Benefits continues to deliver
excellent results driven by 8 percent growth in fully insured
ongoing premiums and a core earnings margin of 9.8 percent. Our
investment performance remains strong benefiting from attractive
new money yields. We announced an 11 percent increase in the common
dividend and, in the third quarter, returned $481 million to
shareholders.”
Swift continued, “We continue to expand our strong competitive
position, successfully executing on our priorities and delivering
superior returns for our shareholders. Looking ahead there is much
to be bullish about at The Hartford. Building on our results over
the last nine months, I am confident in our ability to consistently
deliver core earnings ROEs in the 14 to 15 percent range."
CONSOLIDATED RESULTS:
Three Months Ended
($ in millions except per share data)
Sep 30 2023
Sep 30 2022
Change
Net income available to common
stockholders
$645
$334
93%
Net income available to common
stockholders per diluted share1
$2.09
$1.02
105%
Core earnings
$708
$472
50%
Core earnings per diluted share
$2.29
$1.45
58%
Book value per diluted share
$43.50
$39.13
11%
Book value per diluted share (ex.
accumulated other comprehensive income (AOCI))2
$57.12
$52.65
8%
Net income available to common
stockholders' return on equity (ROE)3, last 12-months
17.7%
12.8%
4.9
Core earnings ROE3, last 12-months
14.9%
14.3%
0.6
[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
Third quarter 2023 net income available to common stockholders
of $645 million, or $2.09 per diluted share, improved compared with
$334 million in third quarter 2022, primarily due to a higher
P&C underwriting gain, an increase in net investment income,
lower net realized losses, and higher Group Benefits results, with
improvements in both life and disability.
Third quarter 2023 core earnings of $708 million, or $2.29 per
diluted share, compared with $472 million of core earnings in third
quarter 2022. Contributing to the results were:
- An increase in earnings generated by 8% growth in P&C
earned premium and 8% growth in Group Benefits fully insured
ongoing premium.
- P&C current accident year (CAY) catastrophe (CAT) losses of
$184 million, before tax, in third quarter 2023, compared with CAY
CAT losses of $293 million in third quarter 2022.
- Commercial Lines loss and loss adjustment expense ratio of 58.9
improved 3.7 points compared with 62.6 in third quarter 2022,
including 2.7 points of lower CATs. Underlying loss and loss
adjustment expense ratio* improved 0.9 points, to 56.6 in third
quarter 2023 from 57.5 in third quarter 2022, primarily driven by
lower net non-CAT property losses.
- Personal Lines loss and loss adjustment expense ratio of 83.7
compared with 82.5 in third quarter 2022, including 6.4 points of
lower CATs and a change from favorable prior accident year
development (PYD) of 1.5 in third quarter 2022 to unfavorable PYD
of 0.1 in third quarter 2023. Underlying loss and loss adjustment
expense ratio of 74.7 in third quarter 2023 compared with 68.8 in
third quarter 2022, with the increase largely due to higher
severity in auto liability and physical damage, partially offset by
double-digit earned pricing increases benefiting both auto and
homeowners.
- Group Benefits loss ratio of 70.2% improved 2.6 points compared
with 72.8% primarily due to improved mortality experience and
favorable long-term disability recoveries.
- The expense ratios improved across P&C and Group Benefits
from third quarter 2022, driven by the impact of higher earned
premium, lower incentive compensation, lower marketing spend in
Personal Lines and incremental savings from the Hartford Next
operational transformation and cost reduction program.
- Net investment income of $597 million, before tax, compared
with $487 million in third quarter 2022, driven by higher yields on
the fixed income portfolio.
Sept. 30, 2023, book value per diluted share of $43.50 increased
4.4%, from $41.67 at Dec. 31, 2022, principally due to net income
in excess of stockholder dividends through Sept. 30, 2023,
partially offset by the effect of share repurchases on diluted
shares outstanding and greater net unrealized losses on investments
within AOCI driven by an increase in interest rates.
Book value per diluted share (excluding AOCI) of $57.12 as of
Sept. 30, 2023, increased 6.4%, from $53.66 at Dec. 31, 2022, as
the impact from net income in excess of stockholder dividends
through Sept. 30, 2023 was partially offset by the dilutive effect
of share repurchases.
Net income available to common stockholders' ROE (net income
ROE) for the 12-month period ending Sept. 30, 2023, was 17.7%, an
increase of 4.9 points from third quarter 2022, primarily due to an
increase in 12-month trailing net income available to common
stockholders, and an increase in average net unrealized losses on
investments in AOCI.
Core earnings ROE for the 12-month period ending Sept. 30, 2023,
was 14.9%, an increase of 0.6 points from third quarter 2022 due to
higher trailing 12-month core earnings.
BUSINESS RESULTS:
Commercial Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net income
$519
$286
81%
Core earnings
$542
$363
49%
Written premiums
$3,003
$2,780
8%
Underwriting gain1
$290
$153
90%
Underlying underwriting gain1
$359
$290
24%
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
56.6
57.5
(0.9)
Current accident year catastrophes
3.9
6.6
(2.7)
Favorable prior accident year
development
(1.6)
(1.6)
—
Expenses
30.7
31.5
(0.8)
Policyholder dividends
0.5
0.3
0.2
Combined ratio
90.2
94.3
(4.1)
Impact of catastrophes and PYD on combined
ratio
(2.3)
(5.0)
2.7
Underlying combined ratio
87.8
89.3
(1.5)
[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
Third quarter 2023 net income of $519 million compared with net
income of $286 million in third quarter 2022, principally due to a
higher underwriting gain driven by, lower CAY CAT losses, the
impact of earned premium growth, and a lower underlying loss and
loss adjustment expense ratio, as well as higher net investment
income, and lower net realized losses.
Commercial Lines core earnings of $542 million in third quarter
2023 compared with $363 million in third quarter 2022. Contributing
to the results were:
- CAY CAT losses of $115 million, before tax, in third quarter
2023, primarily from tornado, wind and hail events across several
regions of the United States, down from CAY CAT losses of $179
million in third quarter 2022, which included $133 million from
Hurricane Ian.
- Net favorable PYD within core earnings of $46 million, before
tax, in third quarter 2023, compared with $42 million of favorable
PYD within core earnings in third quarter 2022. The net favorable
PYD in third quarter 2023 primarily includes reserve reductions in
workers’ compensation and package business, partially offset by
reserve increases in general liability.
- An underlying loss and loss adjustment expense ratio of 56.6,
in third quarter 2023 compared with 57.5 in third quarter 2022,
with the improvement principally due to lower net non-CAT property
losses driven by Middle & Large Commercial.
- 9% growth in earned premium.
- Net investment income of $395 million, before tax, compared
with $315 million in third quarter 2022, primarily driven by
reinvesting at higher rates and a higher yield on variable rate
securities, as well as slightly higher income earned on limited
partnerships and other alternative investments (LPs).
Combined ratio of 90.2 in third quarter 2023, improved 4.1
points compared with 94.3 in third quarter 2022, primarily due to
2.7 points of lower CAY CAT losses, and a 1.5 point decrease in the
underlying combined ratio. Underlying combined ratio of 87.8
improved primarily due to a 0.9 point decrease in the underlying
loss and loss adjustment expense ratio, and a 0.8 point decrease in
the expense ratio.
- Small Commercial combined ratio of 87.7 compared with 89.3 in
third quarter 2022, including 2.1 points of lower CAY CATs and 0.8
points of more favorable PYD. Underlying combined ratio of 89.7
compared with 88.5 in third quarter 2022, primarily due to higher
non-CAT property losses.
- Middle & Large Commercial combined ratio of 94.5 compared
with 100.7 in third quarter 2022, including 2.1 points of lower CAY
CATs and a 1.4 point increase in unfavorable PYD. Underlying
combined ratio of 88.1, an improvement of 5.6 points from 93.7 in
third quarter 2022, due to lower non-CAT property losses and a
lower expense ratio.
- Global Specialty combined ratio of 88.9 improved from 94.2 in
third quarter 2022, benefiting from 4.7 points of lower CAY CATs
and a 0.3 point decrease in unfavorable PYD. The underlying
combined ratio of 84.3 improved 0.2 points from third quarter 2022,
primarily due to lower loss ratios in global reinsurance and
international lines, partially offset by higher loss ratios in U.S.
financial lines, as well as higher policyholder dividends and a
slightly higher expense ratio.
- The Commercial Lines expense ratio of 30.7 improved 0.8 points
from third 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.
Third quarter 2023 written premiums of $3.0 billion were up 8%
from third quarter 2022, with increases across the segment,
including continued expansion in property lines, growth in new
business within Small Commercial and Global Specialty, and the
effect of renewal written price increases.
Personal Lines
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net loss
($12)
$(36)
67%
Core loss
($8)
$(28)
71%
Written premiums
$869
$803
8%
Underwriting loss
$(62)
$(72)
14%
Underlying underwriting gain
$8
$31
(74%)
Losses and loss adjustment expense
ratio
Current accident year before
catastrophes
74.7
68.8
5.9
Current accident year catastrophes
8.8
15.2
(6.4)
Unfavorable (favorable) prior accident
year development
0.1
(1.5)
1.6
Expenses
24.2
27.1
(2.9)
Combined ratio
107.9
109.6
(1.7)
Impact of catastrophes and PYD on combined
ratio
(8.9)
(13.7)
4.8
Underlying combined ratio
99.0
95.9
3.1
Net loss of $12 million in third quarter 2023 compared with $36
million in third quarter 2022, driven by an increase in net
investment income, improved underwriting results, and lower net
realized losses.
Personal Lines core loss of $8 million compared with $28 million
of core loss in third quarter 2022. Contributing to the results
were:
- Net investment income of $47 million, before tax, in third
quarter 2023 compared with $31 million in third quarter 2022.
- CAY CAT losses of $69 million, before tax, in third quarter
2023, primarily from tornado, wind and hail events across several
regions of the United States, down from CAY CAT losses of $114
million in third quarter 2022, which included $81 million from
Hurricane Ian.
- $1 million, before tax, of unfavorable PYD in third quarter of
2023, compared with $11 million favorable PYD in third quarter
2022. In third quarter 2023, there was no increase in prior year
reserves for auto liability.
- An underlying loss and loss adjustment expense ratio of 74.7 in
third quarter 2023 compared with 68.8 in third quarter 2022, with
the increase primarily driven by higher severity in auto liability
and physical damage, partially offset by double-digit earned
pricing increases in auto and homeowners.
Combined ratio of 107.9 in third quarter 2023, compared with
109.6 in third quarter 2022, primarily due to a 6.4 point decrease
in the CAY CAT ratio, partially offset by a 5.9 increase in the
underlying loss and loss adjustment expense ratio and a 1.6 point
change from favorable PYD in third quarter 2022 to unfavorable in
third quarter 2023. Underlying combined ratio of 99.0 compared with
95.9 in third quarter 2022, primarily due to an increase in the
underlying loss and loss adjustment expense ratio in auto,
partially offset by a 2.9 point improvement in the expense
ratio.
- Auto combined ratio of 110.8 compared with 113.2 in third
quarter 2022. The underlying combined ratio of 108.5 increased from
102.6 in third 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 101.4 compared with 102.6 in third
quarter 2022. The underlying combined ratio of 78.1 improved from
80.4 in third 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 24.2 improved 2.9 points from third quarter
2022, primarily driven by lower direct marketing costs and, to a
lesser extent, the impact of higher earned premium.
Written premiums in third quarter 2023 were $869 million
compared with $803 million in third quarter 2022 with:
- Higher renewal written price increases in auto and homeowners
in response to increased loss cost trends.
- Renewal written price increases in auto and homeowners of 19.7%
and 14.1%, respectively.
- An increase in homeowners' new business.
- Flat policy count retention across the segment.
- A partial offset from a decline in auto new business.
Group Benefits
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net income
$146
$86
70%
Core earnings
$170
$117
45%
Fully insured ongoing premiums
$1,569
$1,453
8%
Loss ratio
70.2%
72.8%
(2.6)
Expense ratio
24.0%
25.4%
(1.4)
Net income margin
8.5%
5.4%
3.1
Core earnings margin
9.8%
7.2%
2.6
Net income of $146 million in third quarter 2023 increased from
$86 million in third quarter 2022, largely driven by earnings
generated from growth in fully insured ongoing premium, and lower
group life and disability loss ratios.
Core earnings were $170 million, up from $117 million in third
quarter 2022, largely driven by earnings generated from 8% growth
in fully insured ongoing premiums, strong disability results, and
improved mortality experience.
Fully insured ongoing premiums were up 8% compared with third
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 $143 million in third quarter 2023, up
35% over third quarter 2022, driven by group disability sales.
Loss ratio of 70.2% decreased 2.6 points from third quarter
2022.
- Group life loss ratio of 80.2% improved 2.9 points largely
driven by a lower level of mortality.
- Group disability loss ratio was 67.3% compared with 68.4% in
third quarter 2022 primarily due to favorable long-term disability
claim recoveries, partially offset by higher short-term disability
and Paid Family Leave loss incidence.
Expense ratio of 24.0 improved 1.4 points from third quarter
2022, primarily due to the effect of higher earned premiums,
incremental expense savings from Hartford Next, and lower incentive
compensation, partially offset by higher staffing costs.
Hartford Funds
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net income
$41
$41
0%
Core earnings
$45
$47
(4)%
Daily average Hartford Funds
AUM
$128,786
$129,782
(1)%
Mutual Funds and exchange-traded funds
(ETF) net flows
$(1,629)
$(2,223)
27%
Total Hartford Funds AUM
$123,193
$117,827
5%
Third quarter 2023 net income of $41 million was flat to third
quarter 2022, resulting from a decrease in net realized losses,
offset by a decline in fee income net of variable expenses driven
by lower daily average Hartford Funds AUM.
Core earnings of $45 million compared with $47 million in third
quarter 2022 largely driven by lower daily average Hartford Funds
AUM resulting in lower fee income net of variable expenses.
Daily average AUM of $129 billion in third quarter 2023 declined
1% from third 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 $1.6 billion in third
quarter 2023, compared with net outflows of $2.2 billion in third
quarter 2022.
Corporate
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net loss
$(52)
$(43)
(21)%
Net loss available to common
stockholders
$(58)
$(49)
(18)%
Core loss
$(52)
$(37)
(41)%
Net investment income, before
tax
$12
$7
71%
Interest expense and preferred
dividends, before tax
$56
$56
—%
Net loss available to common stockholders of $58 million in
third quarter 2023 compared with $49 million in third quarter 2022,
primarily driven by a capital-based state tax expense recorded in
the 2023 period, partially offset by an increase in net investment
income.
Third quarter 2023 core loss of $52 million compared with a
third quarter 2022 core loss of $37 million, primarily driven by a
capital-based state tax expense recorded in the 2023 period,
partially offset by an increase in net investment income.
INVESTMENT INCOME AND PORTFOLIO DATA:
Three Months Ended
($ in millions, unless otherwise
noted)
Sep 30 2023
Sep 30 2022
Change
Net investment income, before
tax
$597
$487
23%
Annualized investment yield, before
tax
4.2%
3.5%
0.7
Annualized investment yield, before
tax, excluding LPs1
4.1%
3.3%
0.8
Annualized LP yield, before tax
6.3%
6.3%
0.0
Annualized investment yield, after
tax
3.4%
2.8%
0.6
[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
Third quarter 2023 consolidated net investment income of $597
million compared with $487 million in third quarter 2022, largely
driven by the impact of reinvesting at higher rates and a higher
yield on variable rate securities.
Third quarter 2023 included $72 million, before tax, of LP
income as compared to $62 million in third quarter 2022. Annualized
LP yield, before tax, of 6.3% was flat to third quarter 2022.
Net realized losses of $90 million, before tax, in third quarter
2023 improved by $76 million from losses of $166 million, before
tax, in third quarter 2022 primarily due to greater net losses on
equity securities and sales of fixed maturities in the 2022 period
compared to the 2023 period, partially offset by greater losses on
interest rate derivatives in the 2023 period compared to 2022.
Total invested assets of $53.3 billion increased 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 third quarter 2023 financial
results on a webcast at 9:00 a.m. EDT on Friday, Oct. 27, 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 Sept. 30, 2023, and
the third 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 X (formerly known 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 September
30, 2023
($ in millions)
Commercial Lines
Personal Lines
P&C Other
Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$
2,951
$
784
$
—
$
1,575
$
—
$
—
$
5,310
Fee income
11
7
—
54
248
10
330
Net investment income
395
47
18
121
4
12
597
Net realized losses
(38
)
(5
)
(2
)
(31
)
(4
)
(10
)
(90
)
Other revenue
(1
)
21
—
—
—
1
21
Total revenues
3,318
854
16
1,719
248
13
6,168
Benefits, losses, and loss adjustment
expenses
1,738
656
2
1,146
—
1
3,543
Amortization of DAC
451
58
—
8
—
—
517
Insurance operating costs and other
expenses
473
156
3
372
195
27
1,226
Restructuring and other costs
—
—
—
—
—
1
1
Interest expense
—
—
—
—
—
50
50
Amortization of other intangible
assets
7
1
—
10
—
—
18
Total benefits, losses and
expenses
2,669
871
5
1,536
195
79
5,355
Income (loss) before income
taxes
649
(17
)
11
183
53
(66
)
813
Income tax expense (benefit)
130
(5
)
2
37
12
(14
)
162
Net income (loss)
519
(12
)
9
146
41
(52
)
651
Preferred stock dividends
—
—
—
—
—
6
6
Net income (loss) available to common
stockholders
519
(12
)
9
146
41
(58
)
645
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses, excluded from core
earnings, before tax
29
5
1
28
4
9
76
Restructuring and other costs, before
tax
1
1
Integration and other non-recurring
M&A costs, before tax
1
—
—
1
—
—
2
Income tax expense (benefit)
(7
)
(1
)
1
(5
)
—
(4
)
(16
)
Core earnings (loss)
$
542
$
(8
)
$
11
$
170
$
45
$
(52
)
$
708
THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
CONSOLIDATING INCOME
STATEMENTS
Three Months Ended September
30, 2022
($ in millions)
Commercial Lines
Personal Lines
P&C Other
Ops
Group Benefits
Hartford Funds
Corporate
Consolidated
Earned premiums
$ 2,703
$ 749
$ —
$ 1,458
$ —
$ —
$ 4,910
Fee income
10
8
—
46
253
11
328
Net investment income
315
31
14
117
3
7
487
Net realized losses
(95)
(11)
(4)
(37)
(9)
(10)
(166)
Other revenue
1
20
—
—
—
—
21
Total revenues
2,934
797
10
1,584
247
8
5,580
Benefits, losses, and loss adjustment
expenses
1,692
618
—
1,096
—
1
3,407
Amortization of DAC
399
57
—
8
—
—
464
Insurance operating costs and other
expenses
466
167
2
364
195
12
1,206
Restructuring and other costs
—
—
—
—
—
3
3
Interest expense
—
—
—
—
—
50
50
Amortization of other intangible
assets
7
1
—
10
—
—
18
Total benefits, losses and
expenses
2,564
843
2
1,478
195
66
5,148
Income (loss) before income
taxes
370
(46)
8
106
52
(58)
432
Income tax expense (benefit)
84
(10)
2
20
11
(15)
92
Net income (loss)
286
(36)
6
86
41
(43)
340
Preferred stock dividends
—
—
—
—
—
6
6
Net income (loss) available to common
stockholders
286
(36)
6
86
41
(49)
334
Adjustments to reconcile net income
(loss) available to common stockholders to core earnings
(loss)
Net realized losses, excluded from core
earnings, before tax
95
10
4
38
9
10
166
Restructuring and other costs
—
—
—
—
—
3
3
Integration and other non-recurring
M&A costs, before tax
3
—
—
2
—
—
5
Income tax benefit
(21)
(2)
—
(9)
(3)
(1)
(36)
Core earnings (loss)
$ 363
$ (28)
$ 10
$ 117
$ 47
$ (37)
$ 472
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 third 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, as applicable, excluding 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
September 30, 2023 and 2022 is provided in the table below.
Three Months Ended
Sept 30 2023
Sept 30 2022
Consolidated
Annualized investment yield
4.2%
3.5%
Adjustment for income from limited
partnerships and other alternative investments
(0.1)%
(0.2)%
Annualized investment yield excluding
limited partnerships and other alternative investments
4.1%
3.3%
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
Sept 30 2023
Dec 31 2022
Change
Book value per diluted share
$43.50
$41.67
4%
Per diluted share impact of AOCI
$13.62
$11.99
14%
Book value per diluted share (excluding
AOCI)
$57.12
$53.66
6%
As of
Sept 30 2023
Sept 30 2022
Change
Book value per diluted share
$43.50
$39.13
11%
Per diluted share impact of AOCI
$13.62
$13.52
1%
Book value per diluted share (excluding
AOCI)
$57.12
$52.65
8%
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 September 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 September 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
September 30, 2023 and 2022, is set forth below.
Three Months Ended
Margin
Sept 30 2023
Sept 30 2022
Change
Net income margin
8.5%
5.4%
3.1
Adjustments to reconcile net income
margin to core earnings margin:
Net realized losses, before tax
1.5%
2.3%
(0.8)
Integration and other non-recurring
M&A costs, before tax
0.1%
0.1%
—
Income tax benefit on items excluded from
core earnings
(0.3)%
(0.6)%
0.3
Core earnings margin
9.8%
7.2%
2.6
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
September 30, 2023 and 2022 is provided in the table below.
Three Months Ended
Sept 30 2023
Sept 30 2022
Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common
stockholders per share1
$2.09
$1.02
105%
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
0.25
0.51
(51)%
Restructuring and other costs, before
tax
—
0.01
(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
(0.06)
(0.11)
45%
Core earnings per diluted share
$2.29
$1.45
58%
[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
Sept 30 2023
Sept 30 2022
Net income available to common
stockholders ROE
17.7%
12.8%
Adjustments to reconcile net income
available to common stockholders ROE to core earnings ROE:
Net realized losses excluded from core
earnings, before tax
0.9%
2.9%
Restructuring and other costs, before
tax
0.1%
0.1%
Loss on extinguishment of debt, before
tax
—%
0.1%
Integration and other non-recurring
M&A costs, before tax
0.1%
0.1%
Change in deferred gain on retroactive
reinsurance, before tax
1.8%
1.1%
Income tax benefit on items not included
in core earnings
(0.6)%
(0.9)%
Impact of AOCI, excluded from denominator
of core earnings ROE
(5.1)%
(1.9)%
Core earnings ROE
14.9%
14.3%
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
Sept 30 2023
Sept 30 2022
Change
Combined ratio
87.7
89.3
(1.6)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(3.2)
(5.3)
2.1
Prior accident year development
5.2
4.4
0.8
Underlying combined ratio
89.7
88.5
1.2
MIDDLE & LARGE COMMERCIAL
Three Months Ended
Sept 30 2023
Sept 30 2022
Change
Combined ratio
94.5
100.7
(6.2)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(4.5)
(6.6)
2.1
Prior accident year development
(1.8)
(0.4)
(1.4)
Underlying combined ratio
88.1
93.7
(5.6)
GLOBAL SPECIALTY
Three Months Ended
Sept 30 2023
Sept 30 2022
Change
Combined ratio
88.9
94.2
(5.3)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(4.3)
(9.0)
4.7
Prior accident year development
(0.3)
(0.6)
0.3
Underlying combined ratio
84.3
84.5
(0.2)
PERSONAL LINES AUTO
Three Months Ended
Sept 30 2023
Sept 30 2022
Change
Combined ratio
110.8
113.2
(2.4)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(2.3)
(11.9)
9.6
Prior accident year development
—
1.4
(1.4)
Underlying combined ratio
108.5
102.6
5.9
PERSONAL LINES HOMEOWNERS
Three Months Ended
Sept 30 2023
Sept 30 2022
Change
Combined ratio
101.4
102.6
(1.2)
Adjustment to reconcile combined ratio
to underlying combined ratio:
Current accident year catastrophes
(23.1)
(22.6)
(0.5)
Prior accident year development
(0.3)
0.4
(0.7)
Underlying combined ratio
78.1
80.4
(2.3)
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 September 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
September 30, 2023 and 2022, is set forth below.
COMMERCIAL LINES
Three Months Ended
Sept 30 2023
Sept 30 2022
Net income
$
519
$
286
Adjustments to reconcile net income to
underwriting gain:
Net investment income
(395
)
(315
)
Net realized losses
38
95
Other expense (income)
(2
)
3
Income tax expense
130
84
Underwriting gain
290
153
Adjustments to reconcile underwriting
gain to underlying underwriting gain:
Current accident year catastrophes
115
179
Prior accident year development
(46
)
(42
)
Underlying underwriting gain
$
359
$
290
PERSONAL LINES
Three Months Ended
Sept 30 2023
Sept 30 2022
Net loss
$
(12
)
$
(36
)
Adjustments to reconcile net loss to
underwriting loss:
Net investment income
(47
)
(31
)
Net realized losses
5
11
Net servicing and other income
(3
)
(6
)
Income tax benefit
(5
)
(10
)
Underwriting loss
(62
)
(72
)
Adjustments to reconcile underwriting
loss to underlying underwriting gain:
Current accident year catastrophes
69
114
Prior accident year development
1
(11
)
Underlying underwriting gain
$
8
$
31
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 September 30, 2023 and 2022, is set forth below.
COMMERCIAL LINES
Three Months Ended
Sep 30 2023
Sep 30 2022
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
58.9
62.6
(3.7)
Current accident year catastrophes
(3.9)
(6.6)
2.7
Prior accident year development
1.6
1.6
—
Underlying loss and loss adjustment
expense ratio
56.6
57.5
(0.9)
PERSONAL LINES
Three Months Ended
Sep 30 2023
Sep 30 2022
Change
Loss and loss adjustment expense
ratio
Total losses and loss adjustment
expenses
83.7
82.5
1.2
Current accident year catastrophes
(8.8)
(15.2)
6.4
Prior accident year development
(0.1)
1.5
(1.6)
Underlying loss and loss adjustment
expense ratio
74.7
68.8
5.9
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; 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; the ongoing effects of
COVID-19, 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;
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/20231026584355/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
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Apr 2023 to Apr 2024
