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HIG Q1 Earnings Miss on Higher Costs Despite Personal Insurance Gains
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Key Takeaways
HIG Q1 core EPS rose 40.5% to $3.09 but missed estimates as revenues also came in light.
Business Insurance premiums rise 6%, while Employee Benefits margins fell on staffing and tech costs.
HIG's Personal Insurance core earnings surged to $141M as the combined ratio improved to 87.7 from 106.1.
The Hartford Insurance Group, Inc. (HIG - Free Report) posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%.
Operating revenues came in at $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%.
The weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.
HIG currently carries a Zacks Rank #3 (Hold).
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
Earned premiums amounted to $6.1 billion, which advanced 5.3% year over year but fell short of the Zacks Consensus Estimate by 0.9%. Net income available to common stockholders increased 36.2% year over year to $851 million.
Net investment income increased to $739 million, from $656 million in the year-ago period and beat the consensus mark by 0.5%. Management attributed the gain primarily to higher income from limited partnerships and other alternative investments, increased invested assets and reinvestments at higher rates.
Total benefits, losses and expenses of $6.2 billion increased 2.4% year over year due to higher amortization of DAC and insurance operating expenses.
P&C current accident year catastrophe losses were $230 million, before tax, compared with $467 million a year ago.
HIG’s Segmental Update
Business Insurance Grew Premiums
Business Insurance written premiums rose 6% year over year to $3.9 billion, supported by growth across the segment. Core earnings expanded 17% to $551 million, reflecting earned premium growth and higher net investment income. Profitability was steady on the surface, with the combined ratio at 94.8 versus 94.4 in the prior-year quarter, but came above the consensus mark of 91.4.
Personal Insurance Posted a Sharp Turnaround
Personal Insurance results stood out for the magnitude of underwriting improvement. Core earnings climbed to $141 million from $6 million a year ago, while the segment’s combined ratio improved to 87.7 from 106.1 and was lower than the Zacks Consensus Estimate of 94.4. Personal Insurance written premiums were $862 million, down 6% from the prior-year quarter, which management tied to a competitive market, even as earned pricing increases supported earned premium trends.
P&C Other Ops Remained Stable
Revenues in the unit improved 5.6% year over year to $19 million and met the consensus mark. On a core basis, P&C Other Operations earned $14 million versus $13 million a year ago.
Employee Benefits Faced Higher Costs
Employee Benefits generated core earnings of $127 million versus $136 million a year ago. The segment’s core earnings margin was 6.9% in the quarter, down from 7.6% a year ago. The unit’s expense ratio increased to 26.7% from 25.4% in the prior-year quarter and came above the consensus estimate of 25.8, driven by higher staffing costs and higher technology costs. The segment’s loss ratio was 71.7 compared with 71.9 a year ago, as improvement in group life was partially offset by a higher group disability loss ratio.
Hartford Funds Added Support
Hartford Funds provided growth, supported by higher fee income. The segment generated revenues of $285 million, up from $264 million a year ago, but missed the Zacks Consensus Estimate by 2.5%. Core earnings increased to $51 million from $44 million. The segment’s daily average assets under management totaled $156 billion, up 10% year over year.
Corporate
The unit posted revenues of $14 million, which jumped from $7 million a year ago, but missed the estimate by 48.1%. The unit incurred a core loss of $18 million, narrower than the year-ago quarter’s loss of $31 million.
Financial Update (as of March 31, 2026)
Hartford exited the first quarter with cash of $166 million, which increased from the 2025-end level of $133 million. Total investments of $63.7 billion decreased from the 2025-end figure of $64 billion. Total assets of $86.3 billion grew from $86 billion at 2025-end.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2025.
Total stockholders’ equity marginally decreased to $18.9 billion. Book value per diluted share excluding AOCI increased to $75.25 from $73.62 at 2025-end.
Operating cash flow was above $1 billion in the first quarter, compared with $985 million in the year-ago period.
Capital Deployment Update
The company returned $617 million to stockholders, including $450 million of share repurchases and $167 million in common stockholder dividends paid. As of March 31, 2026, it had $1.1 billion left in the buyback program.
How Are Other Insurers Placed This Quarter?
Peers like Slide Insurance Holdings, Inc. (SLDE - Free Report) , TWFG, Inc. (TWFG - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) are yet to report results for this earnings season.
The Zacks Consensus Estimate for Slide Insurance’s earnings for the to-be-reported quarter of 82 cents per share remained stable over the past week. SLDE’s revenues are pegged at $373.16 million for the quarter. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TWFG’s earnings for the to-be-reported quarter is pegged at 20 cents per share, signaling 25% year-over-year growth. TWFG’s earnings beat estimates in each of the past four quarters, with an average surprise of 26.4%. It has a Zacks Rank of 1 now.
The Zacks Consensus Estimate for Arthur J. Gallagher’s earnings for the to-be-reported quarter is pegged at $4.40 per share, indicating 19.9% year-over-year growth. AJG’s revenues are pegged at $4.65 billion, signaling 26.3% year-over-year jump. It currently has a Zacks Rank #3.
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HIG Q1 Earnings Miss on Higher Costs Despite Personal Insurance Gains
Key Takeaways
The Hartford Insurance Group, Inc. (HIG - Free Report) posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%.
Operating revenues came in at $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%.
The weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.
HIG currently carries a Zacks Rank #3 (Hold).
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 Q1 Operations
Earned premiums amounted to $6.1 billion, which advanced 5.3% year over year but fell short of the Zacks Consensus Estimate by 0.9%. Net income available to common stockholders increased 36.2% year over year to $851 million.
Net investment income increased to $739 million, from $656 million in the year-ago period and beat the consensus mark by 0.5%. Management attributed the gain primarily to higher income from limited partnerships and other alternative investments, increased invested assets and reinvestments at higher rates.
Total benefits, losses and expenses of $6.2 billion increased 2.4% year over year due to higher amortization of DAC and insurance operating expenses.
P&C current accident year catastrophe losses were $230 million, before tax, compared with $467 million a year ago.
HIG’s Segmental Update
Business Insurance Grew Premiums
Business Insurance written premiums rose 6% year over year to $3.9 billion, supported by growth across the segment. Core earnings expanded 17% to $551 million, reflecting earned premium growth and higher net investment income. Profitability was steady on the surface, with the combined ratio at 94.8 versus 94.4 in the prior-year quarter, but came above the consensus mark of 91.4.
Personal Insurance Posted a Sharp Turnaround
Personal Insurance results stood out for the magnitude of underwriting improvement. Core earnings climbed to $141 million from $6 million a year ago, while the segment’s combined ratio improved to 87.7 from 106.1 and was lower than the Zacks Consensus Estimate of 94.4. Personal Insurance written premiums were $862 million, down 6% from the prior-year quarter, which management tied to a competitive market, even as earned pricing increases supported earned premium trends.
P&C Other Ops Remained Stable
Revenues in the unit improved 5.6% year over year to $19 million and met the consensus mark. On a core basis, P&C Other Operations earned $14 million versus $13 million a year ago.
Employee Benefits Faced Higher Costs
Employee Benefits generated core earnings of $127 million versus $136 million a year ago. The segment’s core earnings margin was 6.9% in the quarter, down from 7.6% a year ago. The unit’s expense ratio increased to 26.7% from 25.4% in the prior-year quarter and came above the consensus estimate of 25.8, driven by higher staffing costs and higher technology costs. The segment’s loss ratio was 71.7 compared with 71.9 a year ago, as improvement in group life was partially offset by a higher group disability loss ratio.
Hartford Funds Added Support
Hartford Funds provided growth, supported by higher fee income. The segment generated revenues of $285 million, up from $264 million a year ago, but missed the Zacks Consensus Estimate by 2.5%. Core earnings increased to $51 million from $44 million. The segment’s daily average assets under management totaled $156 billion, up 10% year over year.
Corporate
The unit posted revenues of $14 million, which jumped from $7 million a year ago, but missed the estimate by 48.1%. The unit incurred a core loss of $18 million, narrower than the year-ago quarter’s loss of $31 million.
Financial Update (as of March 31, 2026)
Hartford exited the first quarter with cash of $166 million, which increased from the 2025-end level of $133 million. Total investments of $63.7 billion decreased from the 2025-end figure of $64 billion. Total assets of $86.3 billion grew from $86 billion at 2025-end.
Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2025.
Total stockholders’ equity marginally decreased to $18.9 billion. Book value per diluted share excluding AOCI increased to $75.25 from $73.62 at 2025-end.
Operating cash flow was above $1 billion in the first quarter, compared with $985 million in the year-ago period.
Capital Deployment Update
The company returned $617 million to stockholders, including $450 million of share repurchases and $167 million in common stockholder dividends paid. As of March 31, 2026, it had $1.1 billion left in the buyback program.
How Are Other Insurers Placed This Quarter?
Peers like Slide Insurance Holdings, Inc. (SLDE - Free Report) , TWFG, Inc. (TWFG - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) are yet to report results for this earnings season.
The Zacks Consensus Estimate for Slide Insurance’s earnings for the to-be-reported quarter of 82 cents per share remained stable over the past week. SLDE’s revenues are pegged at $373.16 million for the quarter. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TWFG’s earnings for the to-be-reported quarter is pegged at 20 cents per share, signaling 25% year-over-year growth. TWFG’s earnings beat estimates in each of the past four quarters, with an average surprise of 26.4%. It has a Zacks Rank of 1 now.
The Zacks Consensus Estimate for Arthur J. Gallagher’s earnings for the to-be-reported quarter is pegged at $4.40 per share, indicating 19.9% year-over-year growth. AJG’s revenues are pegged at $4.65 billion, signaling 26.3% year-over-year jump. It currently has a Zacks Rank #3.