The Hartford Delivers Report-Setting This fall and Full-Yr 2024 Efficiency
The Hartford posted sturdy monetary outcomes for the fourth quarter and full 12 months of 2024, pushed by progress in Property & Casualty (P&C) premiums, improved underwriting margins, and better funding revenue. The corporate returned $2.1 billion to stockholders over the 12 months, together with share repurchases and dividends.
“The Hartford delivered an excellent 12 months with a core earnings ROE of 16.7 p.c,” stated The Hartford’s Chairman and CEO Christopher Swift. “Outcomes had been pushed by sustained momentum in Business Traces, which as soon as once more generated sturdy top-line progress at extremely worthwhile margins, vital progress in Private Traces towards restoring goal profitability in auto, continued sturdy margins in Group Advantages, and a better funding portfolio yield.”
Fourth Quarter 2024 Monetary Highlights
- Web revenue accessible to frequent stockholders: $848 million ($2.88 per diluted share), up 11% from $766 million in This fall 2023.
- Core earnings: $865 million ($2.94 per diluted share), down 7% from $935 million in This fall 2023.
- P&C written premiums: Up 7% year-over-year, pushed by progress in Business Traces (+6%) and Private Traces (+12%).
- Business Traces mixed ratio: 87.4, with an underlying mixed ratio of 87.1.
- Private Traces mixed ratio: 85.8, bettering 15.4 factors year-over-year.
- Group Advantages internet revenue margin: 7.1%, with a core earnings margin of seven.8%.
- Stockholder returns: $537 million returned in This fall, together with $400 million in share repurchases and $137 million in dividends.
Chairman and CEO Christopher Swift said throughout the earnings name, “Our excellent outcomes spotlight the power of our franchise, notably our distinctive underwriting execution, in depth distribution relationships, and an unparalleled buyer expertise.”
Full-Yr 2024 Efficiency
- Web revenue accessible to frequent stockholders: $3.1 billion ($10.35 per diluted share), up 24% from 2023.
- Core earnings: $3.1 billion ($10.30 per diluted share), up 11% from 2023.
- Web revenue ROE: 19.9%, in comparison with 17.5% in 2023.
- Core earnings ROE: 16.7%, up from 15.8% in 2023.
- P&C written premiums: Elevated 10% year-over-year.
- Business Traces full-year mixed ratio: 89.9, with an underlying mixed ratio of 87.9.
- Private Traces full-year mixed ratio: 99.1, bettering 8.4 factors year-over-year.
- Group Advantages internet revenue margin: 7.9%, with a core earnings margin of 8.2%.
Enterprise Section Efficiency
Business Traces
The Hartford’s Chief Monetary Officer Beth Costello stated, “Business Traces had a robust quarter with top-line progress of 6 p.c and an underlying mixed ratio of 87.1. Pricing, excluding staff’ compensation, accelerated to 9.7 p.c within the quarter and stays above loss price tendencies. Private Traces achieved 9.3 factors of underlying mixed ratio enchancment within the quarter, together with over 10 factors in auto. Group Advantages continued to outperform with a core earnings margin of seven.8 p.c, led by sturdy life and incapacity outcomes.”
- Fourth quarter internet revenue: $708 million, up 3% from This fall 2023.
- Full-year internet revenue: $2.35 billion, a 13% improve.
- This fall mixed ratio: 87.4, reflecting sturdy underwriting outcomes.
- Full-year written premiums: $13.35 billion, up 9% from 2023.
Private Traces
Melinda Thompson, Head of Private Traces, said, “We achieved 9.3 factors of underlying mixed ratio enchancment within the quarter, together with over 10 factors in auto. This displays our disciplined underwriting and pricing technique.”
- This fall internet revenue: $154 million, a big enchancment from $34 million in This fall 2023.
- Full-year internet revenue: $208 million, reversing a $39 million loss in 2023.
- This fall mixed ratio: 85.8, a 15.4-point enchancment year-over-year.
- Full-year mixed ratio: 99.1, bettering 8.4 factors.
- This fall written premiums: $871 million, up 12% year-over-year.
Group Advantages
Michael Fish, Head of Group Advantages, added, “Our Group Advantages section continues to ship sturdy margins, with life and incapacity outcomes outperforming expectations.”
- This fall internet revenue: $126 million, down from $176 million in This fall 2023.
- Full-year internet revenue: $561 million, up 5% from 2023.
- This fall core earnings margin: 7.8%, in comparison with 9.8% in This fall 2023.
- Full-year absolutely insured ongoing premiums: $6.39 billion, up 2% year-over-year.
Funding and Capital Administration
- This fall internet funding revenue: $714 million, up from $653 million in This fall 2023.
- Annualized funding yield: 4.7% earlier than tax, in comparison with 4.5% in 2023.
- Complete stockholder returns: $2.1 billion for 2024, together with $1.5 billion in share repurchases and $556 million in dividends.
Chief Monetary Officer Beth Costello commented, “Our funding portfolio delivered stable outcomes, and we maintained disciplined capital administration, guaranteeing sturdy returns to our shareholders.”
Swift concluded, “With our capabilities and high expertise, we’re well-positioned for continued success in 2025 and past.”
