The Hartford Reports Strong Third Quarter 2026 Financial Results
• Third quarter 2026 net income available to common stockholders of $1.3 billion ($4.82 per diluted share) increased 23% from $1.1 billion ($3.77 per diluted share) over the same period in 2025. Core earnings* of $956 million ($3.50 core earnings per diluted share*) decreased 6% from $1,022 million ($3.59 core earnings per diluted share) over the same period in 2025.
• Net income ROE for the trailing 12 months of 25.0% and core earnings ROE* of 17.9%.
• Property & Casualty (P&C) written premiums increased by 4% in the third quarter of 2026, driven by Business Insurance premium growth of 6%.
• Employee Benefits fully insured ongoing premium growth of 4% in the third quarter of 2026.
• Business Insurance third quarter 2026 combined ratio of 91.3 and an underlying combined ratio* of 90.1.
• Personal Insurance third quarter 2026 combined ratio of 93.2 and an underlying combined ratio* of 87.1.
• Employee Benefits third quarter 2026 net income margin of 7.0% and a core earnings margin* of 6.4%.
• Returned $638 million to stockholders in the third quarter, including $475 million of shares repurchased and $163 million in common stockholder dividends paid. Increased the quarterly common dividend per share by 12%, to $0.67, payable Jan. 5, 2027, to shareholders of record at the close of business on Dec. 1, 2026.
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest U.S. 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 news release are approximate unless otherwise noted. 1 HARTFORD, Conn., Oct. 26, 2026 – The Hartford (NYSE: HIG) today announced financial results for the third quarter ended Sept. 30, 2026.
"The Hartford delivered another quarter of strong results in an increasingly competitive market," said The Hartford's Chairman and CEO Christopher Swift. "We continue to strengthen our leading position through disciplined execution and investments in technology, data, artificial intelligence and customer-focused risk insights, building on our differentiated capabilities across Property and Casualty and Employee Benefits."
The Hartford's Chief Financial Officer Beth Costello said, "Business Insurance delivered a solid quarter, with 6 percent written premium growth and an underlying combined ratio of 90.1. In Personal Insurance, the underlying combined ratio improved 2.9 points, while growth was impacted by a competitive market. Employee Benefits generated fully insured ongoing premium growth of 4 percent with a core earnings margin of 6.4 percent. Investment income was excellent, supported by higher income from limited partnerships and other alternative investments and a higher level of invested assets. Building on our consistent track record of annual dividend increases, we are pleased to announce a 12 percent increase in the common quarterly dividend.”
Swift continued, "It has been an honor to serve this iconic company, first as CFO and then as CEO for nearly 13 years. As we announced last month, Mo Tooker will succeed me as CEO on March 1, at which time I will transition to Executive Chair, with plans to step down from that role in the second half of 2027. Mo is ideally suited to lead as CEO and guide The Hartford’s next chapter. With our strategy, priorities and commitment to disciplined execution unchanged, The Hartford remains well positioned to continue delivering outstanding ROEs and attractive returns for shareholders." 2 CONSOLIDATED RESULTS:
($ in millions except per Three Months Ended share data) Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Income from continuing operations, net $1,262 $1,021 24% of tax Income from continuing operations, net $4.60 $3.56 29% of tax per diluted share Net income available to common $1,317 $1,074 23% stockholders Net income available to common $4.82 $3.77 28% stockholders per diluted share1 Core earnings $956 $1,022 -6% Core earnings per diluted $3.50 $3.59 -3% share Book value per diluted share $68.31 $63.86 7% Book value per diluted share (ex. accumulated other $82.47 $70.92 16% comprehensive income (AOCI))2 Net income available to common stockholders' return on 25.0% 20.3% 4.7 equity (ROE)3, last 12-months Core earnings ROE3, last 17.9% 17.3% 0.6 12-months
[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 U.S. 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 of 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 2026 net income available to common stockholders of $1.3 billion, or $4.82 per diluted share, improved from $1.1 billion in third quarter 2025. Contributing to the results were:
• An increase in earnings driven by 4% growth in P&C earned premium and 4% fully insured ongoing premium growth in Employee Benefits.
• Business Insurance loss and loss adjustment expense ratio of 61.1 increased from 57.3 in third quarter 2025, including 1.7 points of higher current accident year catastrophe losses (CAY CATs) and 0.1 points of less favorable prior accident year development (PYD). Underlying loss and loss adjustment expense ratio* of 59.9 increased from 57.9 in third quarter 2025.
• Personal Insurance loss and loss adjustment expense ratio of 67.2 increased from 62.9 in third quarter 2025, including 6.8 points of higher CAY CATs and 0.6 points of less favorable PYD. Underlying loss and loss adjustment expense ratio of 61.1 improved 3.1 points from third quarter 2025.
• Net favorable PYD of $594 million, before tax, in third quarter 2026 includes a net gain of $497 million from the impact of commuting the asbestos and environmental adverse development cover (A&E ADC). Net core favorable PYD of $97 million was relatively flat compared with net core favorable PYD of $95 million in third quarter 2025.
• P&C CAY CAT losses of $198 million, before tax, in third quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $70 million in third quarter 2025.
• The P&C expense ratio of 29.2 improved from 30.0 in third quarter 2025, primarily driven by a 1.1 point improvement in the Business Insurance expense ratio.
• Employee Benefits loss ratio of 74.9 increased from 70.1 in third quarter 2025, driven by an increase in both the group disability and group life loss ratios.
• The Employee Benefits expense ratio of 25.4 improved from 26.7 in third quarter 2025. 3 • Net investment income of $850 million, before tax, increased from $755 million in third quarter 2025, primarily driven by increased income from limited partnerships and other alternative investments (LPs) and a higher level of invested assets.
• Net realized losses of $116 million, before tax, in third quarter 2026 compared with net realized losses of $17 million, before tax, in third quarter 2025.
• Income from discontinued operations of $61 million, before tax, was relatively flat compared with $59 million in third quarter 2025.
Third quarter 2026 core earnings of $956 million, or $3.50 per diluted share, decreased from $1,022 million of core earnings in third quarter 2025, primarily reflecting the same drivers as net income, excluding the change in non-core PYD of $497 million resulting from commuting the A&E ADC, the impact of realized gains and losses and income from discontinued operations.
Sept. 30, 2026, book value per diluted share of $68.31 increased 3.0%, from $66.31 at Dec. 31, 2025, principally due to net income in excess of stockholder dividends through Sept. 30, 2026, partially offset by the dilutive effect of share repurchases and a decrease in AOCI, primarily driven by an increase in net unrealized losses on available-for-sale (AFS) securities.
Book value per diluted share (excluding AOCI) of $82.47 as of Sept. 30, 2026, increased 12.0%, from $73.62 at Dec. 31, 2025, as the impact from net income in excess of stockholder dividends through Sept. 30, 2026, was partially offset by the dilutive effect of share repurchases.
Net income available to common stockholders' ROE (net income ROE) for the trailing 12-month period ending Sept. 30, 2026, was 25.0%, increasing 4.7 points from Sept. 30, 2025, primarily due to an increase in net income available to common stockholders.
Core earnings ROE for the trailing 12-month period ending Sept. 30, 2026, was 17.9%, increasing 0.6 points from Sept. 30, 2025, primarily due to an increase in core earnings. 4
($ in millions, unless Three Months Ended otherwise noted) Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Net income $637 $710 -10% Core earnings $731 $723 1% Written premiums $3,772 $3,573 6% Underwriting gain1 $327 $397 -18% Underlying underwriting gain1 $372 $376 -1% Losses and loss adjustment 61.1 57.3 3.8 expense ratio Expenses 30.0 31.1 -1.1 Policyholder dividends 0.3 0.3 — Combined ratio 91.3 88.8 2.5 Impact of catastrophes and PYD on -1.2 0.6 -1.8 combined ratio Underlying combined ratio 90.1 89.4 0.7 Losses and loss adjustment expense ratio Underlying loss and loss adjustment 59.9 57.9 2.0 expense ratio Current accident year 2.8 1.1 1.7 catastrophes Prior accident year -1.6 -1.7 0.1 development Total Losses and loss adjustment expense 61.1 57.3 3.8 ratio
[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 U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures
Third quarter 2026 net income of $637 million decreased from net income of $710 million in third quarter 2025. Contributing to the results were:
• An underlying loss and loss adjustment expense ratio of 59.9 in third quarter 2026 increased from 57.9 in third quarter 2025.
• Net favorable PYD of $61 million, before tax, in third quarter 2026, was relatively flat compared with $60 million in third quarter 2025. The net favorable PYD in third quarter 2026 primarily includes reserve reductions in workers’ compensation and commercial property.
• CAY CAT losses of $106 million, before tax, in third quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $39 million in third quarter 2025.
• Net investment income of $589 million, before tax, increased from $519 million in third quarter 2025.
• Net realized losses of $117 million, before tax, in third quarter 2026 compared with net realized losses of $26 million, before tax, in third quarter 2025.
Business Insurance core earnings of $731 million in third quarter 2026 increased from $723 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.
Combined ratio of 91.3 increased from 88.8 in third quarter 2025, primarily due to 1.7 points of higher CAY CATs and 0.1 points of less favorable net PYD. Underlying combined ratio of 90.1 increased from 89.4 in third quarter 2025, primarily due to a 2.0 point increase in the underlying loss and loss adjustment expense ratio. 5 • Small Business combined ratio of 84.5 improved from 87.9 in third quarter 2025, including flat PYD and 1.2 points of higher CAY CATs. Underlying combined ratio of 85.2 improved from 89.8 in third quarter 2025, primarily due to lower non-CAT property losses and a lower expense ratio.
• Middle & Large Business combined ratio of 101.7 increased from 90.8 in third quarter 2025, including 2.5 points of higher CAY CATs and 0.3 points of less favorable PYD. Underlying combined ratio of 99.5 increased from 91.4 in third quarter 2025, including a higher loss ratio in workers' compensation and higher non-CAT property losses, partially offset by a lower expense ratio.
• Global Specialty combined ratio of 89.1 increased from 86.9 in third quarter 2025, including 1.7 points of higher CAY CATs and 0.3 points of less favorable PYD. The 2025 combined ratio included 0.8 points of more favorable PYD due to the amortization of the deferred gain related to the Navigators ADC. Underlying combined ratio of 86.1 was relatively consistent with third quarter 2025.
• The Business Insurance expense ratio of 30.0 improved 1.1 points from 31.1 in third quarter 2025, driven by the impact of earned premium growth and lower staffing costs, partially offset by higher technology costs.
Third quarter 2026 written premiums of $3.8 billion were up 6% from third quarter 2025, driven by growth across all businesses. Small Business and Global Specialty each delivered 7% written premium growth, while Middle & Large increased 3%, including 5% growth in Middle Market.
($ in millions, unless Three Months Ended otherwise noted) Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Net income $93 $139 -33% Core earnings $105 $143 -27% Written premiums $950 $987 -4% Underwriting gain $62 $107 -42% Underlying underwriting gain $118 $95 24% Losses and loss adjustment 67.2 62.9 4.3 expense ratio Expenses 26.0 25.8 0.2 Combined ratio 93.2 88.7 4.5 Impact of catastrophes and PYD on -6.2 1.2 -7.4 combined ratio Underlying combined ratio 87.1 90.0 -2.9 Losses and loss adjustment expense ratio Underlying loss and loss adjustment 61.1 64.2 -3.1 expense ratio Current accident year 10.1 3.3 6.8 catastrophes Prior accident year -3.9 -4.5 0.6 development Total Losses and loss adjustment expense 67.2 62.9 4.3 ratio
Net income of $93 million in third quarter 2026 decreased from net income of $139 million in third quarter 2025. Contributing to the results were:
• Earned premium decline of 4%, driven by an 8% decline in automobile reflecting continued pressure on new business growth in a competitive market environment, partially offset by 5% earned premium growth in homeowners, including 20% new business growth.
• An underlying loss and loss adjustment expense ratio of 61.1 in third quarter 2026, which improved 3.1 points from 64.2 in third quarter 2025, driven by the impact of earned pricing increases outpacing loss cost trends.
• Net favorable PYD of $36 million, before tax, in third quarter 2026 decreased from $43 million of net favorable PYD in third quarter 2025. The net favorable PYD in third quarter 2026 includes reserve reductions in both automobile and homeowners.
• CAY CAT losses of $92 million, before tax, in third quarter 2026, including losses from tornado, wind and hail events, increased from $31 million of CAY CAT losses in third quarter 2025.
• Net investment income of $67 million, before tax, in third quarter 2026 was flat compared with third quarter 2025.
• Net realized losses of $15 million, before tax, in third quarter 2026 compared with net realized losses of $4 million, before tax, in third quarter 2025.
Personal Insurance core earnings of $105 million decreased from core earnings of $143 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.
Combined ratio of 93.2 in third quarter 2026 increased from 88.7 in third quarter 2025, primarily due to a 4.3 point increase in the loss and loss adjustment expense ratio, including a 3.1 point improvement in the underlying loss and loss adjustment expense ratio, 6.8 points of higher CAY CAT losses and 0.6 points of less favorable PYD. Underlying combined ratio of 87.1 improved 2.9 points from 90.0 in third quarter 2025, primarily due to improvement in the underlying loss and loss adjustment expense ratios in both automobile and homeowners.
• Personal Automobile combined ratio of 92.3 improved 0.2 points from 92.5 in third quarter 2025, including 0.9 points of less favorable PYD and 0.8 points of higher CAY CATs. The underlying combined ratio of 96.0 improved 1.9 points from 97.9 in third quarter 2025, primarily due to improvement in the underlying loss and loss adjustment expense ratio, driven by the impact of earned pricing increases outpacing loss cost trends.
• Homeowners combined ratio of 94.7 increased 13.5 points from 81.2 in third quarter 2025, including 17.0 points of higher CAY CATs and 0.5 points of more favorable PYD. The underlying combined ratio of 71.5 improved 2.9 points from 74.4 in third quarter 2025, primarily due to improvement in the underlying loss and loss adjustment expense ratio, driven by the impact of earned pricing increases outpacing loss cost trends.
• The Personal Insurance expense ratio of 26.0 was relatively flat compared with 25.8 in third quarter 2025.
Written premiums in third quarter 2026 of $950 million decreased from $987 million in third quarter 2025, with:
• Renewal written price increases in automobile and homeowners of 5.1% and 7.9%, respectively.
• Effective policy count retention improving slightly in automobile and declining slightly in homeowners. 6
Net income of $132 million in third quarter 2026 decreased from $144 million in third quarter 2025, primarily due to an increase in the loss ratio, partially offset by a lower expense ratio, a change from net realized losses to net realized gains, and increased net investment income.
Core earnings of $120 million decreased from $149 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of net realized gains and losses.
Fully insured ongoing premiums were up 4% compared with third quarter 2025, including strong new business sales, an increase in exposure on existing accounts and persistency in excess of 90%. Fully insured ongoing sales in third quarter 2026 were relatively consistent with third quarter 2025.
• Group life loss ratio of 77.8 increased 3.6 points from 74.2, reflecting that the 2025 period included a benefit related to favorable development on prior quarters, partially offset by lower mortality in the 2026 period.
• Group disability loss ratio of 76.3 increased 5.7 points from 70.6, driven by increased claim incidence across short and long-term disability products and less favorable long-term disability claim recoveries.
Expense ratio of 25.4 improved 1.3 points from 26.7 in third quarter 2025, driven by lower staffing costs and the impact of earned premium growth, partially offset by higher technology costs.
Net investment income of $154 million, before tax, increased from $136 million in third quarter 2025.
On June 3, 2026, The Hartford entered into an agreement to sell Hartford Funds Management, Inc. ("Hartford Funds"). Effective in second quarter 2026, and for all periods presented in The Hartford's financial statements, Hartford Funds is reported as discontinued operations in Corporate and its results are included in net income, but not in core earnings.
Net income available to common stockholders of $49 million in third quarter 2026 decreased from $69 million in third quarter 2025, primarily driven by a higher net tax benefit in the 2025 7 period, which included a release of a provision for an uncertain tax position and tax related interest accruals, and lower net realized gains, partially offset by an increase in other revenues related to valuation appreciation of an investment.
Third quarter 2026 core loss of $16 million increased from $7 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains.
($ in millions, unless Three Months Ended otherwise noted) Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Net investment income, before $850 $755 13% tax Annualized investment yield, 5.1% 4.8% 0.3 before tax Annualized investment yield, before tax, 4.6% 4.6% 0.0 excluding LPs1 Annualized LP yield, before 10.2% 6.7% 3.5 tax Annualized investment yield, 4.1% 3.9% 0.2 after tax
[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 U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures
Third quarter 2026 consolidated net investment income of $850 million increased from $755 million in third quarter 2025, primarily driven by increased income from LPs and a higher level of invested assets.
Third quarter 2026 net investment income, excluding LPs*, of $694 million, before tax, compared with $664 million in third quarter 2025, a 5% increase, primarily driven by a higher level of invested assets.
Third quarter 2026 included $156 million, before tax, of LP income which increased from $91 million in third quarter 2025, primarily driven by higher returns on infrastructure and energy transition funds within other funds and sales of underlying investments within real estate joint ventures. Annualized LP yield, before tax, of 10.2% increased from 6.7% in third quarter 2025.
Net realized losses of $116 million, before tax, in third quarter 2026 compared with net realized losses of $17 million, before tax, in third quarter 2025, primarily driven by losses on interest rate derivatives.
Total invested assets of $64.7 billion increased $1.2 billion from Dec. 31, 2025, primarily reflecting growth in the business and receipt of the $1.12 billion A&E ADC commutation amount, partially offset by an increase in net unrealized losses on fixed maturities, AFS, at fair value due to higher interest rates. 8
The Hartford will discuss its third quarter 2026 financial results on a webcast at 9:00 a.m. EDT on Tuesday, Oct. 27, 2026. 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, 2026, and the third quarter 2026 Financial Results Presentation, both of which are available at https://ir.thehartford.com .
The Hartford is a leader in property and casualty insurance and employee benefits. By anticipating challenges and reducing risks our customers face, the company helps people and businesses thrive with confidence. Built on a foundation of trust, The Hartford is committed to strong performance, exceptional customer experiences and bold innovation, hallmarks of its sustained success since 1810.
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Connecticut. More information on the company and its financial performance is available at https://www.thehartford.com . For additional details, please read https://www.thehartford.com/legal-notice .
From time to time, The Hartford may use its website and/or social media channels 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 .
11 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.
The Hartford uses non-GAAP financial measures in this news 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 news release can be found below and in The Hartford's Investor Financial Supplement for third quarter 2026, which is available on the investor relations section of 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, 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 U.S GAAP measure. A reconciliation of annualized investment yield to annualized investment yield excluding limited partnerships and other alternative investments for the quarterly periods ended Sept. 30, 2026, and 2025 is provided in the table below.
Three Months Ended Sept 30 2026 Sept 30 2025 Annualized investment 5.1 % 4.8 % yield Adjustment for income from limited partnerships and other -0.5 % -0.2 % alternative investments Annualized investment yield excluding limited partnerships 4.6 % 4.6 % and other alternative investments
12 Net investment income, excluding limited partnerships and other alternative investments -This non-GAAP measure is the amount of net investment income earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, 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. Net investment income is the most directly comparable U.S. GAAP measure. A reconciliation of net investment income to net investment income excluding limited partnerships and other alternative investments for the quarterly periods ended Sept. 30, 2026, and 2025 is provided in the table below.
Three Months Ended Sept 30 2026 Sept 30 2025 ────────────────────────────────────────────────────────────────────────────── Total net investment $ 850 $ 755 income Adjustment for income from limited partnerships and $ -156 $ -91 other alternative investments Net investment income excluding limited partnerships and $ 694 $ 664 other alternative investments
- This is a non-GAAP per share measure that i s 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 2026 Sept 30 2025 Change Book value per diluted share $68.31 $63.86 7.0% Per diluted share impact of AOCI $14.16 $7.06 100.6% Book value per diluted share (excluding $82.47 $70.92 16.3% AOCI)
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 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 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. 15 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 (loss) for the quarterly periods ended Sept. 30, 2026, and 2025, for individual reporting segments can be found in this news release under the heading "The Hartford Insurance Group, Inc. Consolidating Income Statements."
- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Employee 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 Employee 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 Employee 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 Sept. 30, 2026 and 2025, is set forth below.
Three Months Ended Sept 30 2026 Sept 30 2025 Change Net income margin 7.0% 8.1% -1.1 Adjustments to reconcile net income margin to core earnings margin: Net realized (gains) losses, -0.8% 0.4% -1.2 before tax Income tax expense (benefit) on items 0.2% -0.2% 0.4 excluded from core earnings Core earnings margin 6.4% 8.3% -1.9
- This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the U.S. 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 U.S. 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 share to core earnings per diluted share for the quarterly periods ended Sept. 30, 2026 and 2025 is provided in the table below.
Three Months Ended Sept 30 2026 Sept 30 2025 Change Per Share Data Diluted earnings per common share: Net income available to common $4.82 $3.77 28% stockholdersper share1 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 0.41 0.05 NM earnings, before tax Integration and other non-recurring M&A 0.01 0.01 —% costs, before tax Change in deferred gain on retroactive -1.82 -0.03 NM reinsurance, before tax Income tax expense on items excluded 0.30 — NM from core earnings Income from discontinued operations, net -0.22 -0.21 -5% of tax Core earnings per diluted $3.50 $3.59 -3% share [1] Net income available to common stockholders includes dilutive potential common shares
- 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.
Three Months Ended Sept 30 2026 Sept 30 2025 Net income available to common 25.0% 20.3% stockholders ROE Adjustments to reconcile net income available to common stockholders ROE to core earnings ROE: Net realized losses excluded from core 0.8% 0.5% earnings, before tax Integration and other non-recurring M&A —% —% costs, before tax Change in deferred gain on retroactive (2.9)% (0.3)% reinsurance, before tax Income tax benefit on items not included 0.4% —% in core earnings Impact of AOCI, excluded from (2.7)% -2.1% denominator of core earnings ROE Income from discontinued operations, net (2.7)% -1.1% of tax Core earnings ROE 17.9% 17.3%
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 U.S. 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 news release under the heading "Business Results" for "Business Insurance" and "Personal Insurance". 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.
Three Months Ended Sept 30 2026 Sept 30 2025 Change Combined 84.5 87.9 -3.4 ratio Adjustment to reconcile combined ratio to underlying combined ratio: Current accident year -2.5 -1.3 -1.2 catastrophes Prior accident year 3.2 3.2 — development Underlying combined 85.2 89.8 -4.6 ratio
Three Months Ended Sept 30 2026 Sept 30 2025 Change Combined 101.7 90.8 10.9 ratio Adjustment to reconcile combined ratio to underlying combined ratio: Current accident year -2.5 — -2.5 catastrophes Prior accident year 0.3 0.6 -0.3 development Underlying combined 99.5 91.4 8.1 ratio
Three Months Ended Sept 30 2026 Sept 30 2025 Change Combined 89.1 86.9 2.2 ratio Adjustment to reconcile combined ratio to underlying combined ratio: Current accident year -3.9 -2.2 -1.7 catastrophes Prior accident year 0.8 1.1 -0.3 development Underlying combined 86.1 85.8 0.3 ratio
Three Months Ended Sept 30 2026 Sept 30 2025 Change Combined 92.3 92.5 -0.2 ratio Adjustment to reconcile combined ratio to underlying combined ratio: Current accident year -1.4 -0.6 -0.8 catastrophes Prior accident year 5.1 6.0 -0.9 development Underlying combined 96.0 97.9 -1.9 ratio
Three Months Ended Sept 30 2026 Sept 30 2025 Change Combined 94.7 81.2 13.5 ratio Adjustment to reconcile combined ratio to underlying combined ratio: Current accident year -25.3 -8.3 -17.0 catastrophes Prior accident year 2.1 1.6 0.5 development Underlying combined 71.5 74.4 -2.9 ratio
- This non-GAAP financial measure is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable U.S. GAAP measure. The Hartford's management evaluates profitability of the Business and Personal Insurance segments primarily on the basis of underwriting gain or loss. 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. Reconciliations of net income (loss) to underwriting gain (loss) for the quarterly periods ended Sept. 30, 2026 and 2025, is set forth below.
- 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 U.S. 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. Reconciliations of net income (loss) to underlying underwriting gain for individual reporting segments for the quarterly periods ended Sept. 30, 2026 and 2025, is set forth below.
Three Months Ended Sept 30 2026 Sept 30 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 637 $ 710 Adjustments to reconcile net income to underwriting gain: Net investment income -589 -519 Net realized losses 117 26 Other (income) expense 3 — Income tax expense 159 180 Underwriting gain 327 397 Adjustments to reconcile underwriting gain to underlying underwriting gain: Current accident year 106 39 catastrophes Prior accident year -61 -60 development Underlying underwriting $ 372 $ 376 gain
Three Months Ended Sept 30 2026 Sept 30 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 93 $ 139 Adjustments to reconcile net income to underwriting gain: Net investment income -67 -67 Net realized losses 15 4 Net servicing and other -5 -4 (income) expense Income tax expense 26 35 Underwriting gain 62 107 Adjustments to reconcile underwriting gain to underlying underwriting gain: Current accident year 92 31 catastrophes Prior accident year -36 -43 development Underlying underwriting $ 118 $ 95 gain
22 Underlying loss and loss adjustment expense ratio - This non-GAAP financial measure is the cost of non-catastrophe loss and loss adjustment expenses incurred in the current accident year divided by earned premiums. The loss and loss adjustment expense ratio is the most directly comparable U.S. GAAP measure. Management believes that the underlying loss and loss adjustment expense ratio is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development ("PYD"). Reconciliations of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio for the quarterly periods ended Sept. 30, 2026 and 2025, is set forth below.
Three Months Ended Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Loss and loss adjustment 51.7 58.5 -6.8 expense ratio Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio: Current accident year catastrophes and 8.5 0.7 7.8 prior accident year development Underlying loss and loss 60.1 59.3 0.8 adjustment expense ratio
Three Months Ended Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Loss and loss adjustment 61.1 57.3 3.8 expense ratio Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio: Current accident year catastrophes and -1.2 0.6 -1.8 prior accident year development Underlying loss and loss 59.9 57.9 2.0 adjustment expense ratio
Three Months Ended Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Loss and loss adjustment 67.2 62.9 4.3 expense ratio Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio: Current accident year catastrophes and -6.2 1.2 -7.4 prior accident year development Underlying loss and loss 61.1 64.2 -3.1 adjustment expense ratio
Three Months Ended Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Loss and loss adjustment 66.7 67.1 -0.4 expense ratio Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio: Current accident year catastrophes and 3.6 5.3 -1.7 prior accident year development Underlying loss and loss 70.3 72.3 -2.0 adjustment expense ratio
Three Months Ended Sep 30 2026 Sep 30 2025 Change ────────────────────────────────────────────────────────────────────────────── Loss and loss adjustment 67.9 54.5 13.4 expense ratio Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio: Current accident year catastrophes and -23.2 -6.7 -16.5 prior accident year development Underlying loss and loss 44.7 47.8 -3.1 adjustment expense ratio
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 Insurance 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 2025 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;
◦ 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 a 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 certain emerging technologies, including machine learning, predictive analytics, “big data” analysis or other artificial intelligence functions, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing could provide our competitors with a competitive advantage and could impact the rate and severity of claims, as well as the demand for our products; the 25 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 breach or other information security incident, technology failure or other unanticipated event; the potential for difficulties arising from outsourcing, including vendors 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 26 Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. 27
Full text with the tables
NEWS RELEASE
The Hartford Reports Strong Third Quarter 2026 Financial Results
Increased quarterly common dividend per share by 12%
• Third quarter 2026 net income available to common stockholders of $1.3 billion
($4.82 per diluted share) increased 23% from $1.1 billion ($3.77 per diluted
share) over the same period in 2025. Core earnings* of $956 million ($3.50 core
earnings per diluted share*) decreased 6% from $1,022 million ($3.59 core
earnings per diluted share) over the same period in 2025.
• Net income ROE for the trailing 12 months of 25.0% and core earnings ROE* of
17.9%.
• Property & Casualty (P&C) written premiums increased by 4% in the third
quarter of 2026, driven by Business Insurance premium growth of 6%.
• Employee Benefits fully insured ongoing premium growth of 4% in the third
quarter of 2026.
• Business Insurance third quarter 2026 combined ratio of 91.3 and an underlying
combined ratio* of 90.1.
• Personal Insurance third quarter 2026 combined ratio of 93.2 and an underlying
combined ratio* of 87.1.
• Employee Benefits third quarter 2026 net income margin of 7.0% and a core
earnings margin* of 6.4%.
• Returned $638 million to stockholders in the third quarter, including $475
million of shares repurchased and $163 million in common stockholder dividends
paid. Increased the quarterly common dividend per share by 12%, to $0.67,
payable Jan. 5, 2027, to shareholders of record at the close of business on Dec.
1, 2026.
* Denotes financial measure not calculated in accordance with generally accepted
accounting principles (non-GAAP); definitions of non-GAAP measures and
reconciliations to their closest U.S. 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 news release are approximate
unless otherwise noted.
1
HARTFORD, Conn., Oct. 26, 2026 – The Hartford (NYSE: HIG) today announced
financial results for the third quarter ended Sept. 30, 2026.
"The Hartford delivered another quarter of strong results in an increasingly
competitive market," said The Hartford's Chairman and CEO Christopher Swift. "We
continue to strengthen our leading position through disciplined execution and
investments in technology, data, artificial intelligence and customer-focused
risk insights, building on our differentiated capabilities across Property and
Casualty and Employee Benefits."
The Hartford's Chief Financial Officer Beth Costello said, "Business Insurance
delivered a solid quarter, with 6 percent written premium growth and an
underlying combined ratio of 90.1. In Personal Insurance, the underlying
combined ratio improved 2.9 points, while growth was impacted by a competitive
market. Employee Benefits generated fully insured ongoing premium growth of 4
percent with a core earnings margin of 6.4 percent. Investment income was
excellent, supported by higher income from limited partnerships and other
alternative investments and a higher level of invested assets. Building on our
consistent track record of annual dividend increases, we are pleased to announce
a 12 percent increase in the common quarterly dividend.”
Swift continued, "It has been an honor to serve this iconic company, first as
CFO and then as CEO for nearly 13 years. As we announced last month, Mo Tooker
will succeed me as CEO on March 1, at which time I will transition to Executive
Chair, with plans to step down from that role in the second half of 2027. Mo is
ideally suited to lead as CEO and guide The Hartford’s next chapter. With our
strategy, priorities and commitment to disciplined execution unchanged, The
Hartford remains well positioned to continue delivering outstanding ROEs and
attractive returns for shareholders."
2
CONSOLIDATED RESULTS:
($ in millions except per Three Months Ended
share data) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Income from continuing
operations, net $1,262 $1,021 24%
of tax
Income from continuing
operations, net $4.60 $3.56 29%
of tax per diluted share
Net income available to
common $1,317 $1,074 23%
stockholders
Net income available to
common $4.82 $3.77 28%
stockholders per diluted
share1
Core earnings $956 $1,022 -6%
Core earnings per diluted $3.50 $3.59 -3%
share
Book value per diluted share $68.31 $63.86 7%
Book value per diluted share
(ex.
accumulated other $82.47 $70.92 16%
comprehensive income
(AOCI))2
Net income available to
common
stockholders' return on 25.0% 20.3% 4.7
equity (ROE)3,
last 12-months
Core earnings ROE3, last 17.9% 17.3% 0.6
12-months
[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 U.S. 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 of 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 2026 net income available to common stockholders of $1.3 billion,
or $4.82 per diluted share, improved from $1.1 billion in third quarter 2025.
Contributing to the results were:
• An increase in earnings driven by 4% growth in P&C earned premium and 4% fully
insured ongoing premium growth in Employee Benefits.
• Business Insurance loss and loss adjustment expense ratio of 61.1 increased
from 57.3 in third quarter 2025, including 1.7 points of higher current accident
year catastrophe losses (CAY CATs) and 0.1 points of less favorable prior
accident year development (PYD). Underlying loss and loss adjustment expense
ratio* of 59.9 increased from 57.9 in third quarter 2025.
• Personal Insurance loss and loss adjustment expense ratio of 67.2 increased
from 62.9 in third quarter 2025, including 6.8 points of higher CAY CATs and 0.6
points of less favorable PYD. Underlying loss and loss adjustment expense ratio
of 61.1 improved 3.1 points from third quarter 2025.
• Net favorable PYD of $594 million, before tax, in third quarter 2026 includes
a net gain of $497 million from the impact of commuting the asbestos and
environmental adverse development cover (A&E ADC). Net core favorable PYD of $97
million was relatively flat compared with net core favorable PYD of $95 million
in third quarter 2025.
• P&C CAY CAT losses of $198 million, before tax, in third quarter 2026,
primarily from tornado, wind and hail events, increased from CAY CAT losses of
$70 million in third quarter 2025.
• The P&C expense ratio of 29.2 improved from 30.0 in third quarter 2025,
primarily driven by a 1.1 point improvement in the Business Insurance expense
ratio.
• Employee Benefits loss ratio of 74.9 increased from 70.1 in third quarter
2025, driven by an increase in both the group disability and group life loss
ratios.
• The Employee Benefits expense ratio of 25.4 improved from 26.7 in third
quarter 2025.
3
• Net investment income of $850 million, before tax, increased from $755 million
in third quarter 2025, primarily driven by increased income from limited
partnerships and other alternative investments (LPs) and a higher level of
invested assets.
• Net realized losses of $116 million, before tax, in third quarter 2026
compared with net realized losses of $17 million, before tax, in third quarter
2025.
• Income from discontinued operations of $61 million, before tax, was relatively
flat compared with $59 million in third quarter 2025.
Third quarter 2026 core earnings of $956 million, or $3.50 per diluted share,
decreased from $1,022 million of core earnings in third quarter 2025, primarily
reflecting the same drivers as net income, excluding the change in non-core PYD
of $497 million resulting from commuting the A&E ADC, the impact of realized
gains and losses and income from discontinued operations.
Sept. 30, 2026, book value per diluted share of $68.31 increased 3.0%, from
$66.31 at Dec. 31, 2025, principally due to net income in excess of stockholder
dividends through Sept. 30, 2026, partially offset by the dilutive effect of
share repurchases and a decrease in AOCI, primarily driven by an increase in net
unrealized losses on available-for-sale (AFS) securities.
Book value per diluted share (excluding AOCI) of $82.47 as of Sept. 30, 2026,
increased 12.0%, from $73.62 at Dec. 31, 2025, as the impact from net income in
excess of stockholder dividends through Sept. 30, 2026, was partially offset by
the dilutive effect of share repurchases.
Net income available to common stockholders' ROE (net income ROE) for the
trailing 12-month period ending Sept. 30, 2026, was 25.0%, increasing 4.7 points
from Sept. 30, 2025, primarily due to an increase in net income available to
common stockholders.
Core earnings ROE for the trailing 12-month period ending Sept. 30, 2026, was
17.9%, increasing 0.6 points from Sept. 30, 2025, primarily due to an increase
in core earnings.
4
BUSINESS RESULTS:
Business Insurance
($ in millions, unless Three Months Ended
otherwise noted) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net income $637 $710 -10%
Core earnings $731 $723 1%
Written premiums $3,772 $3,573 6%
Underwriting gain1 $327 $397 -18%
Underlying underwriting gain1 $372 $376 -1%
Losses and loss adjustment 61.1 57.3 3.8
expense ratio
Expenses 30.0 31.1 -1.1
Policyholder dividends 0.3 0.3 —
Combined ratio 91.3 88.8 2.5
Impact of catastrophes and
PYD on -1.2 0.6 -1.8
combined ratio
Underlying combined ratio 90.1 89.4 0.7
Losses and loss adjustment
expense ratio
Underlying loss and loss
adjustment 59.9 57.9 2.0
expense ratio
Current accident year 2.8 1.1 1.7
catastrophes
Prior accident year -1.6 -1.7 0.1
development
Total Losses and loss
adjustment expense 61.1 57.3 3.8
ratio
[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 U.S. GAAP measures can be found in this news
release under the heading Discussion of Non-GAAP Financial Measures
Third quarter 2026 net income of $637 million decreased from net income of $710
million in third quarter 2025. Contributing to the results were:
• 7% growth in earned premium.
• An underlying loss and loss adjustment expense ratio of 59.9 in third quarter
2026 increased from 57.9 in third quarter 2025.
• Net favorable PYD of $61 million, before tax, in third quarter 2026, was
relatively flat compared with $60 million in third quarter 2025. The net
favorable PYD in third quarter 2026 primarily includes reserve reductions in
workers’ compensation and commercial property.
• CAY CAT losses of $106 million, before tax, in third quarter 2026, primarily
from tornado, wind and hail events, increased from CAY CAT losses of $39 million
in third quarter 2025.
• Net investment income of $589 million, before tax, increased from $519 million
in third quarter 2025.
• Net realized losses of $117 million, before tax, in third quarter 2026
compared with net realized losses of $26 million, before tax, in third quarter
2025.
Business Insurance core earnings of $731 million in third quarter 2026 increased
from $723 million in third quarter 2025, primarily reflecting the same drivers
as net income, excluding the impact of realized gains and losses.
Combined ratio of 91.3 increased from 88.8 in third quarter 2025, primarily due
to 1.7 points of higher CAY CATs and 0.1 points of less favorable net PYD.
Underlying combined ratio of 90.1 increased from 89.4 in third quarter 2025,
primarily due to a 2.0 point increase in the underlying loss and loss adjustment
expense ratio.
5
• Small Business combined ratio of 84.5 improved from 87.9 in third quarter
2025, including flat PYD and 1.2 points of higher CAY CATs. Underlying combined
ratio of 85.2 improved from 89.8 in third quarter 2025, primarily due to lower
non-CAT property losses and a lower expense ratio.
• Middle & Large Business combined ratio of 101.7 increased from 90.8 in third
quarter 2025, including 2.5 points of higher CAY CATs and 0.3 points of less
favorable PYD. Underlying combined ratio of 99.5 increased from 91.4 in third
quarter 2025, including a higher loss ratio in workers' compensation and higher
non-CAT property losses, partially offset by a lower expense ratio.
• Global Specialty combined ratio of 89.1 increased from 86.9 in third quarter
2025, including 1.7 points of higher CAY CATs and 0.3 points of less favorable
PYD. The 2025 combined ratio included 0.8 points of more favorable PYD due to
the amortization of the deferred gain related to the Navigators ADC. Underlying
combined ratio of 86.1 was relatively consistent with third quarter 2025.
• The Business Insurance expense ratio of 30.0 improved 1.1 points from 31.1 in
third quarter 2025, driven by the impact of earned premium growth and lower
staffing costs, partially offset by higher technology costs.
Third quarter 2026 written premiums of $3.8 billion were up 6% from third
quarter 2025, driven by growth across all businesses. Small Business and Global
Specialty each delivered 7% written premium growth, while Middle & Large
increased 3%, including 5% growth in Middle Market.
Personal Insurance
($ in millions, unless Three Months Ended
otherwise noted) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net income $93 $139 -33%
Core earnings $105 $143 -27%
Written premiums $950 $987 -4%
Underwriting gain $62 $107 -42%
Underlying underwriting gain $118 $95 24%
Losses and loss adjustment 67.2 62.9 4.3
expense ratio
Expenses 26.0 25.8 0.2
Combined ratio 93.2 88.7 4.5
Impact of catastrophes and
PYD on -6.2 1.2 -7.4
combined ratio
Underlying combined ratio 87.1 90.0 -2.9
Losses and loss adjustment
expense ratio
Underlying loss and loss
adjustment 61.1 64.2 -3.1
expense ratio
Current accident year 10.1 3.3 6.8
catastrophes
Prior accident year -3.9 -4.5 0.6
development
Total Losses and loss
adjustment expense 67.2 62.9 4.3
ratio
Net income of $93 million in third quarter 2026 decreased from net income of
$139 million in third quarter 2025. Contributing to the results were:
• Earned premium decline of 4%, driven by an 8% decline in automobile reflecting
continued pressure on new business growth in a competitive market environment,
partially offset by 5% earned premium growth in homeowners, including 20% new
business growth.
• An underlying loss and loss adjustment expense ratio of 61.1 in third quarter
2026, which improved 3.1 points from 64.2 in third quarter 2025, driven by the
impact of earned pricing increases outpacing loss cost trends.
• Net favorable PYD of $36 million, before tax, in third quarter 2026 decreased
from $43 million of net favorable PYD in third quarter 2025. The net favorable
PYD in third quarter 2026 includes reserve reductions in both automobile and
homeowners.
• CAY CAT losses of $92 million, before tax, in third quarter 2026, including
losses from tornado, wind and hail events, increased from $31 million of CAY CAT
losses in third quarter 2025.
• Net investment income of $67 million, before tax, in third quarter 2026 was
flat compared with third quarter 2025.
• Net realized losses of $15 million, before tax, in third quarter 2026 compared
with net realized losses of $4 million, before tax, in third quarter 2025.
Personal Insurance core earnings of $105 million decreased from core earnings of
$143 million in third quarter 2025, primarily reflecting the same drivers as net
income, excluding the impact of realized gains and losses.
Combined ratio of 93.2 in third quarter 2026 increased from 88.7 in third
quarter 2025, primarily due to a 4.3 point increase in the loss and loss
adjustment expense ratio, including a 3.1 point improvement in the underlying
loss and loss adjustment expense ratio, 6.8 points of higher CAY CAT losses and
0.6 points of less favorable PYD. Underlying combined ratio of 87.1 improved 2.9
points from 90.0 in third quarter 2025, primarily due to improvement in the
underlying loss and loss adjustment expense ratios in both automobile and
homeowners.
• Personal Automobile combined ratio of 92.3 improved 0.2 points from 92.5 in
third quarter 2025, including 0.9 points of less favorable PYD and 0.8 points of
higher CAY CATs. The underlying combined ratio of 96.0 improved 1.9 points from
97.9 in third quarter 2025, primarily due to improvement in the underlying loss
and loss adjustment expense ratio, driven by the impact of earned pricing
increases outpacing loss cost trends.
• Homeowners combined ratio of 94.7 increased 13.5 points from 81.2 in third
quarter 2025, including 17.0 points of higher CAY CATs and 0.5 points of more
favorable PYD. The underlying combined ratio of 71.5 improved 2.9 points from
74.4 in third quarter 2025, primarily due to improvement in the underlying loss
and loss adjustment expense ratio, driven by the impact of earned pricing
increases outpacing loss cost trends.
• The Personal Insurance expense ratio of 26.0 was relatively flat compared with
25.8 in third quarter 2025.
Written premiums in third quarter 2026 of $950 million decreased from $987
million in third quarter 2025, with:
• Renewal written price increases in automobile and homeowners of 5.1% and 7.9%,
respectively.
• Effective policy count retention improving slightly in automobile and
declining slightly in homeowners.
6
Employee Benefits
($ in millions, unless Three Months Ended
otherwise noted) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net income $132 $144 -8%
Core earnings $120 $149 -19%
Fully insured ongoing $1,662 $1,603 4%
premiums
Loss ratio 74.9% 70.1% 4.8
Expense ratio 25.4% 26.7% -1.3
Net income margin 7.0% 8.1% -1.1
Core earnings margin 6.4% 8.3% -1.9
Net income of $132 million in third quarter 2026 decreased from $144 million in
third quarter 2025, primarily due to an increase in the loss ratio, partially
offset by a lower expense ratio, a change from net realized losses to net
realized gains, and increased net investment income.
Core earnings of $120 million decreased from $149 million in third quarter 2025,
primarily reflecting the same drivers as net income, excluding the impact of net
realized gains and losses.
Fully insured ongoing premiums were up 4% compared with third quarter 2025,
including strong new business sales, an increase in exposure on existing
accounts and persistency in excess of 90%. Fully insured ongoing sales in third
quarter 2026 were relatively consistent with third quarter 2025.
Loss ratio of 74.9 increased from 70.1 in third quarter 2025.
• Group life loss ratio of 77.8 increased 3.6 points from 74.2, reflecting that
the 2025 period included a benefit related to favorable development on prior
quarters, partially offset by lower mortality in the 2026 period.
• Group disability loss ratio of 76.3 increased 5.7 points from 70.6, driven by
increased claim incidence across short and long-term disability products and
less favorable long-term disability claim recoveries.
Expense ratio of 25.4 improved 1.3 points from 26.7 in third quarter 2025,
driven by lower staffing costs and the impact of earned premium growth,
partially offset by higher technology costs.
Net investment income of $154 million, before tax, increased from $136 million
in third quarter 2025.
Corporate
($ in millions, unless Three Months Ended
otherwise noted) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net income $55 $75 (27)%
Net income available to
common $49 $69 (29)%
stockholders
Core loss $(16) $(7) (129)%
Net investment income, before $18 $14 29%
tax
Interest expense and
preferred $56 $56 —%
dividends, before tax
On June 3, 2026, The Hartford entered into an agreement to sell Hartford Funds
Management, Inc. ("Hartford Funds"). Effective in second quarter 2026, and for
all periods presented in The Hartford's financial statements, Hartford Funds is
reported as discontinued operations in Corporate and its results are included in
net income, but not in core earnings.
Net income available to common stockholders of $49 million in third quarter 2026
decreased from $69 million in third quarter 2025, primarily driven by a higher
net tax benefit in the 2025
7
period, which included a release of a provision for an uncertain tax position
and tax related interest accruals, and lower net realized gains, partially
offset by an increase in other revenues related to valuation appreciation of an
investment.
Third quarter 2026 core loss of $16 million increased from $7 million in third
quarter 2025, primarily reflecting the same drivers as net income, excluding the
impact of realized gains.
INVESTMENT INCOME AND PORTFOLIO DATA:
($ in millions, unless Three Months Ended
otherwise noted) Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net investment income, before $850 $755 13%
tax
Annualized investment yield, 5.1% 4.8% 0.3
before tax
Annualized investment yield,
before tax, 4.6% 4.6% 0.0
excluding LPs1
Annualized LP yield, before 10.2% 6.7% 3.5
tax
Annualized investment yield, 4.1% 3.9% 0.2
after tax
[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 U.S. GAAP measures can be found in this news
release under the heading Discussion of Non-GAAP Financial Measures
Third quarter 2026 consolidated net investment income of $850 million increased
from $755 million in third quarter 2025, primarily driven by increased income
from LPs and a higher level of invested assets.
Third quarter 2026 net investment income, excluding LPs*, of $694 million,
before tax, compared with $664 million in third quarter 2025, a 5% increase,
primarily driven by a higher level of invested assets.
Third quarter 2026 included $156 million, before tax, of LP income which
increased from $91 million in third quarter 2025, primarily driven by higher
returns on infrastructure and energy transition funds within other funds and
sales of underlying investments within real estate joint ventures. Annualized LP
yield, before tax, of 10.2% increased from 6.7% in third quarter 2025.
Net realized losses of $116 million, before tax, in third quarter 2026 compared
with net realized losses of $17 million, before tax, in third quarter 2025,
primarily driven by losses on interest rate derivatives.
Total invested assets of $64.7 billion increased $1.2 billion from Dec. 31,
2025, primarily reflecting growth in the business and receipt of the $1.12
billion A&E ADC commutation amount, partially offset by an increase in net
unrealized losses on fixed maturities, AFS, at fair value due to higher interest
rates.
8
CONFERENCE CALL
The Hartford will discuss its third quarter 2026 financial results on a webcast
at 9:00 a.m. EDT on Tuesday, Oct. 27, 2026. 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, 2026, and the third quarter 2026 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 and employee
benefits. By anticipating challenges and reducing risks our customers face, the
company helps people and businesses thrive with confidence. Built on a
foundation of trust, The Hartford is committed to strong performance,
exceptional customer experiences and bold innovation, hallmarks of its sustained
success since 1810.
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its
subsidiaries under the brand name, The Hartford, and is headquartered in
Hartford, Connecticut. More information on the company and its financial
performance is available at https://www.thehartford.com . 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 channels
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 .
Media Contacts: Investor Contact:
Michelle Loxton Kate Jorens
860-547-7413 860-547-4066
michelle.loxton@thehartford.com kate.jorens@thehartford.com
Matthew Sturdevant
860-547-8664
matthew.sturdevant@thehartford.com
9
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11
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 news 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 news release can be found below and in The Hartford's Investor Financial
Supplement for third quarter 2026, which is available on the investor relations
section of 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, 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 U.S GAAP measure. A
reconciliation of annualized investment yield to annualized investment yield
excluding limited partnerships and other alternative investments for the
quarterly periods ended Sept. 30, 2026, and 2025 is provided in the table below.
Three Months Ended
Sept 30 2026 Sept 30 2025
Annualized investment 5.1 % 4.8 %
yield
Adjustment for income
from limited
partnerships and other -0.5 % -0.2 %
alternative
investments
Annualized investment
yield excluding
limited partnerships 4.6 % 4.6 %
and other
alternative
investments
12
Net investment income, excluding limited partnerships and other alternative
investments -This non-GAAP measure is the amount of net investment income earned
from invested assets, excluding the net investment income related to limited
partnerships and other alternative investments. The Company believes that net
investment income, 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. Net
investment income is the most directly comparable U.S. GAAP measure. A
reconciliation of net investment income to net investment income excluding
limited partnerships and other alternative investments for the quarterly periods
ended Sept. 30, 2026, and 2025 is provided in the table below.
Three Months Ended Sept 30 2026 Sept 30 2025
──────────────────────────────────────────────────────────────────────────────
Total net investment $ 850 $ 755
income
Adjustment for income
from limited
partnerships and $ -156 $ -91
other alternative
investments
Net investment income
excluding limited
partnerships and $ 694 $ 664
other alternative
investments
13
Book
value per diluted share (excluding AOCI)
- This is a non-GAAP per share measure that i s 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 2026 Dec 31 2025 Change
──────────────────────────────────────────────────────────────────────────────
Book value per diluted share $68.31 $66.31 3.0%
Per diluted share impact of AOCI $14.16 $7.31 93.7%
Book value per diluted share
(excluding $82.47 $73.62 12.0%
AOCI)
As of
Sept 30 2026 Sept 30 2025 Change
Book value per diluted share $68.31 $63.86 7.0%
Per diluted share impact of AOCI $14.16 $7.06 100.6%
Book value per diluted share
(excluding $82.47 $70.92 16.3%
AOCI)
14
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 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
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.
15
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 (loss) for the quarterly
periods ended Sept. 30, 2026, and 2025, for individual reporting segments can be
found in this news release under the heading "The Hartford Insurance Group, Inc.
Consolidating Income Statements."
Core earnings margin
- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and
believes it is an important measure of, the Employee 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 Employee
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 Employee 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 Sept. 30, 2026 and 2025, is set
forth below.
Three Months Ended
Sept 30 2026 Sept 30 2025 Change
Net income margin 7.0% 8.1% -1.1
Adjustments to reconcile net
income
margin to core earnings
margin:
Net realized (gains) losses, -0.8% 0.4% -1.2
before tax
Income tax expense (benefit)
on items 0.2% -0.2% 0.4
excluded from core earnings
Core earnings margin 6.4% 8.3% -1.9
16
Core earnings per diluted share
- This non-GAAP per share measure is calculated using the non-GAAP financial
measure core earnings rather than the U.S. 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 U.S. 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 share to core earnings per diluted share for the quarterly periods ended
Sept. 30, 2026 and 2025 is provided in the table below.
Three Months Ended
Sept 30 2026 Sept 30 2025 Change
Per Share Data
Diluted earnings per common
share:
Net income available to
common $4.82 $3.77 28%
stockholdersper share1
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 0.41 0.05 NM
earnings, before tax
Integration and other
non-recurring M&A 0.01 0.01 —%
costs, before tax
Change in deferred gain on
retroactive -1.82 -0.03 NM
reinsurance, before tax
Income tax expense on items
excluded 0.30 — NM
from core earnings
Income from discontinued
operations, net -0.22 -0.21 -5%
of tax
Core earnings per diluted $3.50 $3.59 -3%
share
[1] Net income available to
common
stockholders includes
dilutive potential
common shares
17
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.
Three Months Ended
Sept 30 2026 Sept 30 2025
Net income available to common 25.0% 20.3%
stockholders ROE
Adjustments to reconcile net income
available to common stockholders ROE
to
core earnings ROE:
Net realized losses excluded from core 0.8% 0.5%
earnings, before tax
Integration and other non-recurring
M&A —% —%
costs, before tax
Change in deferred gain on retroactive (2.9)% (0.3)%
reinsurance, before tax
Income tax benefit on items not
included 0.4% —%
in core earnings
Impact of AOCI, excluded from (2.7)% -2.1%
denominator of core earnings ROE
Income from discontinued operations,
net (2.7)% -1.1%
of tax
Core earnings ROE 17.9% 17.3%
18
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 U.S. 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 news
release under the heading "Business Results" for "Business Insurance" and
"Personal Insurance". 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 BUSINESS
Three Months
Ended
Sept 30 2026 Sept 30 2025 Change
Combined 84.5 87.9 -3.4
ratio
Adjustment to
reconcile
combined
ratio
to underlying
combined
ratio:
Current
accident year -2.5 -1.3 -1.2
catastrophes
Prior
accident year 3.2 3.2 —
development
Underlying
combined 85.2 89.8 -4.6
ratio
MIDDLE & LARGE BUSINESS
Three Months
Ended
Sept 30 2026 Sept 30 2025 Change
Combined 101.7 90.8 10.9
ratio
Adjustment to
reconcile
combined
ratio
to underlying
combined
ratio:
Current
accident year -2.5 — -2.5
catastrophes
Prior
accident year 0.3 0.6 -0.3
development
Underlying
combined 99.5 91.4 8.1
ratio
19
GLOBAL SPECIALTY
Three Months
Ended
Sept 30 2026 Sept 30 2025 Change
Combined 89.1 86.9 2.2
ratio
Adjustment to
reconcile
combined
ratio
to underlying
combined
ratio:
Current
accident year -3.9 -2.2 -1.7
catastrophes
Prior
accident year 0.8 1.1 -0.3
development
Underlying
combined 86.1 85.8 0.3
ratio
PERSONAL AUTOMOBILE
Three Months
Ended
Sept 30 2026 Sept 30 2025 Change
Combined 92.3 92.5 -0.2
ratio
Adjustment to
reconcile
combined
ratio
to underlying
combined
ratio:
Current
accident year -1.4 -0.6 -0.8
catastrophes
Prior
accident year 5.1 6.0 -0.9
development
Underlying
combined 96.0 97.9 -1.9
ratio
HOMEOWNERS
Three Months
Ended
Sept 30 2026 Sept 30 2025 Change
Combined 94.7 81.2 13.5
ratio
Adjustment to
reconcile
combined
ratio
to underlying
combined
ratio:
Current
accident year -25.3 -8.3 -17.0
catastrophes
Prior
accident year 2.1 1.6 0.5
development
Underlying
combined 71.5 74.4 -2.9
ratio
20
Underwriting gain (loss)
- This non-GAAP financial measure is a before tax measure that represents earned
premiums less incurred losses, loss adjustment expenses and underwriting
expenses. Net income (loss) is the most directly comparable U.S. GAAP measure.
The Hartford's management evaluates profitability of the Business and Personal
Insurance segments primarily on the basis of underwriting gain or loss.
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. Reconciliations of net income (loss) to
underwriting gain (loss) for the quarterly periods ended Sept. 30, 2026 and
2025, 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 U.S. 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. Reconciliations of net income (loss) to underlying underwriting
gain for individual reporting segments for the quarterly periods ended Sept. 30,
2026 and 2025, is set forth below.
BUSINESS INSURANCE
Three Months
Ended Sept 30 2026 Sept 30 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 637 $ 710
Adjustments to reconcile
net income to
underwriting gain:
Net investment income -589 -519
Net realized losses 117 26
Other (income) expense 3 —
Income tax expense 159 180
Underwriting gain 327 397
Adjustments to reconcile
underwriting
gain to underlying
underwriting gain:
Current accident year 106 39
catastrophes
Prior accident year -61 -60
development
Underlying underwriting $ 372 $ 376
gain
21
PERSONAL INSURANCE
Three Months
Ended Sept 30 2026 Sept 30 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 93 $ 139
Adjustments to reconcile
net income to
underwriting gain:
Net investment income -67 -67
Net realized losses 15 4
Net servicing and other -5 -4
(income) expense
Income tax expense 26 35
Underwriting gain 62 107
Adjustments to reconcile
underwriting
gain to underlying
underwriting gain:
Current accident year 92 31
catastrophes
Prior accident year -36 -43
development
Underlying underwriting $ 118 $ 95
gain
22
Underlying loss and loss adjustment expense ratio - This non-GAAP financial
measure is the cost of non-catastrophe loss and loss adjustment expenses
incurred in the current accident year divided by earned premiums. The loss and
loss adjustment expense ratio is the most directly comparable U.S. GAAP measure.
Management believes that the underlying loss and loss adjustment expense ratio
is a performance measure that is useful to investors as it removes the impact of
volatile and unpredictable catastrophe losses and prior accident year
development ("PYD"). Reconciliations of the loss and loss adjustment expense
ratio to the underlying loss and loss adjustment expense ratio for the quarterly
periods ended Sept. 30, 2026 and 2025, is set forth below.
PROPERTY & CASUALTY
Three Months
Ended Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Loss and loss
adjustment 51.7 58.5 -6.8
expense ratio
Adjustment to
reconcile
loss and loss
adjustment
expense ratio
to underlying
loss and loss
adjustment
expense
ratio:
Current
accident year
catastrophes
and 8.5 0.7 7.8
prior
accident year
development
Underlying
loss and loss 60.1 59.3 0.8
adjustment
expense ratio
BUSINESS INSURANCE
Three Months
Ended Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Loss and loss
adjustment 61.1 57.3 3.8
expense ratio
Adjustment to
reconcile
loss and loss
adjustment
expense ratio
to underlying
loss and loss
adjustment
expense
ratio:
Current
accident year
catastrophes
and -1.2 0.6 -1.8
prior
accident year
development
Underlying
loss and loss 59.9 57.9 2.0
adjustment
expense ratio
PERSONAL INSURANCE
Three Months
Ended Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Loss and loss
adjustment 67.2 62.9 4.3
expense ratio
Adjustment to
reconcile
loss and loss
adjustment
expense ratio
to underlying
loss and loss
adjustment
expense
ratio:
Current
accident year
catastrophes
and -6.2 1.2 -7.4
prior
accident year
development
Underlying
loss and loss 61.1 64.2 -3.1
adjustment
expense ratio
23
PERSONAL INSURANCE - AUTOMOBILE
Three Months
Ended Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Loss and loss
adjustment 66.7 67.1 -0.4
expense ratio
Adjustment to
reconcile
loss and loss
adjustment
expense ratio
to underlying
loss and loss
adjustment
expense
ratio:
Current
accident year
catastrophes
and 3.6 5.3 -1.7
prior
accident year
development
Underlying
loss and loss 70.3 72.3 -2.0
adjustment
expense ratio
PERSONAL INSURANCE - HOMEOWNERS
Three Months
Ended Sep 30 2026 Sep 30 2025 Change
──────────────────────────────────────────────────────────────────────────────
Loss and loss
adjustment 67.9 54.5 13.4
expense ratio
Adjustment to
reconcile
loss and loss
adjustment
expense ratio
to underlying
loss and loss
adjustment
expense
ratio:
Current
accident year
catastrophes
and -23.2 -6.7 -16.5
prior
accident year
development
Underlying
loss and loss 44.7 47.8 -3.1
adjustment
expense ratio
24
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 Insurance 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 2025 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;
◦ 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 a
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 certain emerging
technologies, including machine learning, predictive analytics, “big data”
analysis or other artificial intelligence functions, advancements in automotive
safety features, the development of autonomous vehicles, and platforms that
facilitate ride sharing could provide our competitors with a competitive
advantage and could impact the rate and severity of claims, as well as the
demand for our products; the
25
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 breach or other information security incident, technology
failure or other unanticipated event; the potential for difficulties arising
from outsourcing, including vendors 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
26
Company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments or
otherwise.
27