On October 26, 2023, The Hartford Financial Services Group Inc (HIG, Financial) announced its financial results for the quarter ending September 30, 2023. The company reported a significant increase in net income and core earnings, driven by strong performance in its Commercial Lines and Group Benefits businesses.
Financial Highlights
The Hartford reported a net income available to common stockholders of $645 million for Q3 2023, marking a 93% increase from $334 million over the same period in 2022. Core earnings for Q3 2023 were $708 million, a 50% increase from $472 million in Q3 2022. The company's net income return on equity (ROE) for the trailing 12 months was 17.7%, and core earnings ROE for the same period was 14.9%.
The company's Property & Casualty (P&C) written premiums rose 8% in Q3 2023 compared with Q3 2022, driven by both Commercial Lines and Personal Lines. Group Benefits fully insured ongoing premium growth was also 8% in Q3 2023.
Shareholder Returns and Dividends
The Hartford returned $481 million to stockholders in Q3 2023, including $350 million of shares repurchased and $131 million in common stockholder dividends paid. The company also increased the quarterly common dividend per share by 11%, to $0.47, payable on January 3, 2024, to shareholders of record at the close of business on December 1, 2023.
Management Commentary
The Hartford's Chairman and CEO Christopher Swift commented on the results, stating,
The Hartford continues to deliver strong financial performance with a 12-month core earnings ROE of 14.9 percent. 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."
Outlook
Looking ahead, Swift expressed confidence in the company's ability to deliver consistent core earnings ROEs in the 14 to 15 percent range, citing the company's strong competitive position and successful execution of its priorities.
Explore the complete 8-K earnings release (here) from The Hartford Financial Services Group Inc for further details.
