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HIG Q3 Earnings Beat Estimates on Personal Insurance Unit Strength
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Key Takeaways
Hartford posted Q3 adjusted operating earnings of $3.78 per share, up 49% year over year.
Revenues rose 9.5% YoY to $5.1B, driven by higher earned premiums, fees and investment income.
Strong Business and Personal Insurance results offset higher expenses and Employee Benefits pressure.
The Hartford Insurance Group, Inc. (HIG - Free Report) reported third-quarter 2025 adjusted operating earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 20.8%. The bottom line climbed 49% year over year.
HIG's operating revenues rose 9.5% year over year to $5.1 billion on the back of improved earned premiums, fee income and investment income. The top line beat the consensus mark by 1.5%.
The strong quarterly results were aided by increased earned premiums and investment income, solid segmental performance — especially in Business Insurance and Personal Insurance — improved loss ratios and reduced catastrophe losses, and growth in invested asset, which boosted net investment income. However, the upside is partly offset by an elevated expense level and pressure in the Employee Benefits unit due to the rising expenses ratio and group disability loss ratio.
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
Earned premiums of Hartford amounted to $6.1 billion, which advanced 6.3% year over year but fell short of the Zacks Consensus Estimate by 0.1%. The metric was driven by a 9% increase in Business Insurance and a 7.3% increase in Personal Insurance earned premiums.
Pre-tax net investment income improved 15.2% year over year to $759 million in the quarter under review and beat the consensus mark of $708.8 million. The year-over-year growth came from an increase in invested assets and improved income from limited partnerships and other alternative investments. Net investment income witnessed year-over-year improvement in the Business Insurance, Personal Insurance and Employee Benefits segments.
Total benefits, losses and expenses of $5.9 billion increased 2% year over year due to higher amortization of DAC and insurance operating expenses.
Pre-tax income climbed 38.4% year over year to $1.3 billion.
HIG’s Segmental Update
Business Insurance
Revenues in the segment grew 10.2% year over year to $4 billion in the third quarter and beat the Zacks Consensus Estimate by 1.5%. Core earnings of $723 million improved 35% year over year, attributable to higher earned premiums, increased net investment income and lower catastrophe losses.
The underlying combined ratio deteriorated 80 basis points (bps) year over year to 89.4%. The losses and loss adjustment expense ratio of 57.3% improved 370 bps year over year.
Personal Insurance
The segment’s revenues of $1 billion advanced 7.7% year over year and beat the consensus mark by 3.1%. Core earnings were $143 million compared to the prior-year quarter’s core earnings of $33 million on the back of improved earned premiums, higher net investment income, improved loss and loss adjustment expense ratio and a decline in catastrophe losses.
The underlying combined ratio improved 370 bps year over year to 90%.
P&C Other Ops
Revenues in the unit improved 5.6% year over year to $19 million.
Employee Benefits
The segment recorded revenues of $1.8 billion, which rose 0.7% year over year in the quarter under review but fell short of the Zacks Consensus Estimate by 1.3%. Core earnings tumbled 3% year over year to $149 million due to a higher expense ratio and increased group disability loss ratio.
The loss ratio improved 10 bps year over year to 70.1% in the third quarter.
Hartford Funds
Revenues increased 4% year over year to $286 million in the segment, which beat the consensus mark of $269.7 million. Core earnings of $53 million advanced 13% year over year.
The segment’s daily average assets under management were $148.3 billion, up 8% year over year.
Corporate
The unit witnessed revenues of $51 million, which surged 21.4% year over year and topped the consensus estimate of $25.7 million. The unit incurred a core loss of $5 million, narrower than the year-ago quarter’s loss of $26 million.
Financial Update (as of Sept. 30, 2025)
Hartford exited the third quarter with cash of $150 million, which declined 18% from the 2024-end level. Total investments of $62.6 billion increased 5.7% from the figure at 2024 end.
Total assets of $85 billion grew 5% from the 2024-end figure.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2024.
Total stockholders’ equity improved 12.2% from the 2024-end level to $18.5 billion.
Book value per share was $63.86, which advanced 15.9% year over year.
Core earnings’ return on equity in the trailing 12 months improved 100 bps year over year to 18.4% at the third-quarter end.
Capital Deployment Update
Hartford rewarded $547 million to shareholders via share buybacks of $400 million and common stockholder dividends of $147 million. The company had a leftover buyback capacity of $1.95 billion as of Sept. 30, 2025.
HIG’s Zacks Rank
HIG currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
Here are three companies from the Finance space that are likely to report their respective quarterly earnings soon.
Robinhood Markets, Inc. (HOOD - Free Report) has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for HOOD’s bottom line for the to-be-reported quarter is pegged at 51 cents per share, indicating 200% year-over-year growth. Robinhood Markets’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 19.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aon plc (AON - Free Report) currently has a Zacks Rank #3. The Zacks Consensus Estimate for AON’s bottom line for the to-be-reported quarter of $2.89 per share indicates 6.3% year-over-year growth. It remained stable over the past week. AON’s earnings beat estimates in three of the last four quarters and missed once, with an average surprise of 3%.
Willis Towers Watson Public Limited Company (WTW - Free Report) has a Zacks Rank of 3 at present. The Zacks Consensus Estimate for WTW’s bottom line for the to-be-reported quarter is pegged at $3.00 per share, indicating 2.4% year-over-year growth. Willis Towers’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 4.1%.
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HIG Q3 Earnings Beat Estimates on Personal Insurance Unit Strength
Key Takeaways
The Hartford Insurance Group, Inc. (HIG - Free Report) reported third-quarter 2025 adjusted operating earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 20.8%. The bottom line climbed 49% year over year.
HIG's operating revenues rose 9.5% year over year to $5.1 billion on the back of improved earned premiums, fee income and investment income. The top line beat the consensus mark by 1.5%.
The strong quarterly results were aided by increased earned premiums and investment income, solid segmental performance — especially in Business Insurance and Personal Insurance — improved loss ratios and reduced catastrophe losses, and growth in invested asset, which boosted net investment income. However, the upside is partly offset by an elevated expense level and pressure in the Employee Benefits unit due to the rising expenses ratio and group disability loss ratio.
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote
HIG’s Q3 Operations
Earned premiums of Hartford amounted to $6.1 billion, which advanced 6.3% year over year but fell short of the Zacks Consensus Estimate by 0.1%. The metric was driven by a 9% increase in Business Insurance and a 7.3% increase in Personal Insurance earned premiums.
Pre-tax net investment income improved 15.2% year over year to $759 million in the quarter under review and beat the consensus mark of $708.8 million. The year-over-year growth came from an increase in invested assets and improved income from limited partnerships and other alternative investments. Net investment income witnessed year-over-year improvement in the Business Insurance, Personal Insurance and Employee Benefits segments.
Total benefits, losses and expenses of $5.9 billion increased 2% year over year due to higher amortization of DAC and insurance operating expenses.
Pre-tax income climbed 38.4% year over year to $1.3 billion.
HIG’s Segmental Update
Business Insurance
Revenues in the segment grew 10.2% year over year to $4 billion in the third quarter and beat the Zacks Consensus Estimate by 1.5%. Core earnings of $723 million improved 35% year over year, attributable to higher earned premiums, increased net investment income and lower catastrophe losses.
The underlying combined ratio deteriorated 80 basis points (bps) year over year to 89.4%. The losses and loss adjustment expense ratio of 57.3% improved 370 bps year over year.
Personal Insurance
The segment’s revenues of $1 billion advanced 7.7% year over year and beat the consensus mark by 3.1%. Core earnings were $143 million compared to the prior-year quarter’s core earnings of $33 million on the back of improved earned premiums, higher net investment income, improved loss and loss adjustment expense ratio and a decline in catastrophe losses.
The underlying combined ratio improved 370 bps year over year to 90%.
P&C Other Ops
Revenues in the unit improved 5.6% year over year to $19 million.
Employee Benefits
The segment recorded revenues of $1.8 billion, which rose 0.7% year over year in the quarter under review but fell short of the Zacks Consensus Estimate by 1.3%. Core earnings tumbled 3% year over year to $149 million due to a higher expense ratio and increased group disability loss ratio.
The loss ratio improved 10 bps year over year to 70.1% in the third quarter.
Hartford Funds
Revenues increased 4% year over year to $286 million in the segment, which beat the consensus mark of $269.7 million. Core earnings of $53 million advanced 13% year over year.
The segment’s daily average assets under management were $148.3 billion, up 8% year over year.
Corporate
The unit witnessed revenues of $51 million, which surged 21.4% year over year and topped the consensus estimate of $25.7 million. The unit incurred a core loss of $5 million, narrower than the year-ago quarter’s loss of $26 million.
Financial Update (as of Sept. 30, 2025)
Hartford exited the third quarter with cash of $150 million, which declined 18% from the 2024-end level. Total investments of $62.6 billion increased 5.7% from the figure at 2024 end.
Total assets of $85 billion grew 5% from the 2024-end figure.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2024.
Total stockholders’ equity improved 12.2% from the 2024-end level to $18.5 billion.
Book value per share was $63.86, which advanced 15.9% year over year.
Core earnings’ return on equity in the trailing 12 months improved 100 bps year over year to 18.4% at the third-quarter end.
Capital Deployment Update
Hartford rewarded $547 million to shareholders via share buybacks of $400 million and common stockholder dividends of $147 million. The company had a leftover buyback capacity of $1.95 billion as of Sept. 30, 2025.
HIG’s Zacks Rank
HIG currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
Here are three companies from the Finance space that are likely to report their respective quarterly earnings soon.
Robinhood Markets, Inc. (HOOD - Free Report) has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for HOOD’s bottom line for the to-be-reported quarter is pegged at 51 cents per share, indicating 200% year-over-year growth. Robinhood Markets’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 19.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aon plc (AON - Free Report) currently has a Zacks Rank #3. The Zacks Consensus Estimate for AON’s bottom line for the to-be-reported quarter of $2.89 per share indicates 6.3% year-over-year growth. It remained stable over the past week. AON’s earnings beat estimates in three of the last four quarters and missed once, with an average surprise of 3%.
Willis Towers Watson Public Limited Company (WTW - Free Report) has a Zacks Rank of 3 at present. The Zacks Consensus Estimate for WTW’s bottom line for the to-be-reported quarter is pegged at $3.00 per share, indicating 2.4% year-over-year growth. Willis Towers’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 4.1%.