The Hartford — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common stockholders was $1.3 billion ($4.82 per diluted share), a 23% increase from $1.1 billion ($3.77 per diluted share) in the same period in 2025.
• Core earnings were $956 million ($3.50 per diluted share), a 6% decrease from $1,022 million ($3.59 per diluted share) in the same period in 2025.
• Net income ROE for the trailing 12 months was 25.0%, up 4.7 points from 20.3% in the prior year period.
• Core earnings ROE for the trailing 12 months was 17.9%, up 0.6 points from 17.3% in the prior year period.
• Book value per diluted share was $68.31 as of September 30, 2026, a 7% increase from $63.86 in the prior year period.
• Book value per diluted share excluding accumulated other comprehensive income (AOCI) was $82.47, a 16% increase from $70.92 in the prior year period.
• Consolidated net investment income was $850 million, a 13% increase from $755 million in the prior year period.
• Annualized investment yield before tax was 5.1%, compared to 4.8% in the prior year period.
• Net realized losses were $116 million before tax, compared to $17 million in the prior year period.
• Total invested assets were $64.7 billion, an increase of $1.2 billion from December 31, 2025.

Business Segments and Product Lines:

• Business Insurance: Written premiums increased 6% to $3.77 billion. Net income decreased 10% to $637 million, while core earnings increased 1% to $731 million. The combined ratio was 91.3 (underlying combined ratio of 90.1). Loss and loss adjustment expense ratio was 61.1, driven by 1.7 points of higher current accident year catastrophe losses and 0.1 points of less favorable prior accident year development.
• Personal Insurance: Written premiums decreased 4% to $950 million. Net income decreased 33% to $93 million, and core earnings decreased 27% to $105 million. The combined ratio was 93.2 (underlying combined ratio of 87.1). Loss and loss adjustment expense ratio was 67.2, driven by 6.8 points of higher current accident year catastrophe losses. Earned premium declined 4% due to an 8% drop in automobile, partially offset by 5% growth in homeowners.
• Employee Benefits: Fully insured ongoing premiums increased 4% to $1.66 billion. Net income decreased 8% to $132 million, and core earnings decreased 19% to $120 million. The loss ratio was 74.9, up from 70.1, driven by increases in group disability and group life loss ratios. The expense ratio improved to 25.4 from 26.7. Net income margin was 7.0% and core earnings margin was 6.4%.
• Small Business: Combined ratio improved to 84.5 from 87.9; underlying combined ratio improved to 85.2 from 89.8. Written premiums grew 7%.
• Middle & Large Business: Combined ratio increased to 101.7 from 90.8; underlying combined ratio increased to 99.5 from 91.4. Written premiums grew 3%.
• Global Specialty: Combined ratio increased to 89.1 from 86.9; underlying combined ratio was relatively consistent at 86.1. Written premiums grew 7%.
• Personal Automobile: Combined ratio improved to 92.3 from 92.5; underlying combined ratio improved to 96.0 from 97.9.
• Personal Homeowners: Combined ratio increased to 94.7 from 81.2; underlying combined ratio improved to 71.5 from 74.4. Earned premium grew 5% with 20% new business growth.

Market and Competitive Landscape:

• The company operates in an increasingly competitive market environment.
• Personal Insurance growth was impacted by competitive market conditions, specifically an 8% decline in automobile earned premium.
• Management noted continued pressure on new business growth in the automobile segment.
• The company is investing in technology, data, artificial intelligence, and customer-focused risk insights to strengthen its leading position.

Risks and Challenges:

• Catastrophe losses were a significant driver of underwriting results, with P&C current accident year catastrophe losses totaling $198 million before tax, primarily from tornado, wind, and hail events.
• Personal Insurance current accident year catastrophe losses were $92 million before tax.
• Business Insurance current accident year catastrophe losses were $106 million before tax.
• Net realized losses were driven by losses on interest rate derivatives.
• Decrease in AOCI was driven by an increase in net unrealized losses on available-for-sale securities due to higher interest rates.
• Employee Benefits loss ratio increased due to increased claim incidence across short and long-term disability products and less favorable long-term disability claim recoveries.

Management Commentary and Tone:

• Chairman and CEO Christopher Swift stated the company delivered "another quarter of strong results in an increasingly competitive market" and emphasized disciplined execution and investments in technology and AI.
• CFO Beth Costello noted Business Insurance delivered a solid quarter with premium growth and an underlying combined ratio of 90.1, while Personal Insurance growth was impacted by competition despite an improved underlying combined ratio.
• Management announced a leadership transition: Mo Tooker will succeed Christopher Swift as CEO on March 1, 2027, at which time Swift will transition to Executive Chair and plans to step down from that role in the second half of 2027.
• Management expressed confidence that the company remains well-positioned to continue delivering outstanding ROEs and attractive returns for shareholders.

Other Key Points:

• The company returned $638 million to stockholders in the third quarter, including $475 million in share repurchases and $163 million in common stockholder dividends.
• The quarterly common dividend per share was increased by 12% to $0.67, payable January 5, 2027, to shareholders of record at the close of business on December 1, 2026.
• On June 3, 2026, the company entered into an agreement to sell Hartford Funds Management, Inc. ("Hartford Funds"), which is reported as discontinued operations effective in the second quarter of 2026.
• Net favorable prior accident year development was $594 million before tax, including a net gain of $497 million from the impact of commuting the asbestos and environmental adverse development cover (A&E ADC).
• Net core favorable prior accident year development was $97 million, relatively flat compared to $95 million in the prior year period.
• The A&E ADC commutation amount of $1.12 billion was received, contributing to the increase in total invested assets.