HARTFORD INSURANCE GROUP, INC. Q3 FY2024 earnings call

• Extended heartfelt thoughts and prayers to those affected by Hurricanes Milton and Helene, praising claims handlers. - Hartford's third quarter performance showcases sustained financial excellence despite industry challenges. - Commercial Lines had top-line growth, strong underlying combined ratio, and new business growth in small and middle market. - Personal Lines saw top-line growth and margin improvement. - Group Benefits had a strong core earnings margin. - Portfolio investments supported financial goals. - Insights from CIAB Annual Conference highlighted Hartford's innovative tools and strong relationships.

Commercial Lines: Core earnings were $534 million with written premium growth of 9% and an underlying combined ratio of 88.6. Small Commercial had written premium growth of 10% and an underlying combined ratio of 89.3. Middle & Large Commercial saw written premiums rise 8% with a third quarter underlying combined ratio of 90.2. Global Specialty achieved written premium growth of 9% and an excellent underlying combined ratio of 85.3. Personal Lines: Written premium increased 12% driven by rate execution. Auto had written pricing increases of 20.8% and earned pricing increases of 22.7%, with the underlying combined ratio improving 7 points from the prior year. Homeowners had written pricing increases of 15.2% on an earned basis and an underlying combined ratio of 75.4, improving 2.7 points. Group Benefits: Core earnings margin was 8.7%, with fully insured ongoing premium growth of 2% and a group life loss ratio of 77.5, improving 2.7 points from prior year.

• Expect to continue gaining market share in Commercial Lines while maintaining profitable margins. - Target margins in Personal Lines mid-2025. - Ongoing focus on disciplined underwriting, pricing execution, and expanding product/distribution breadth.

• Liability severity trends impacting general liability reserves. - Catastrophe losses and reinsurance exposure management. - Volatile macro environment affecting group disability claims.

Q: General liability increase in loss picks, any current year development?

A: Chris Swift mentioned data showing more attorney-represented claims and increasing settlement rates; Beth Costello added it included true-up for first and second quarter.

Q: Long-term combined ratio target in Personal Lines?

A: Chris Swift refrained from giving exact targets, focusing on improving profitability and rate adequacy in states.

Q: Homeowners underlying combined ratio improvement despite rate increases?

A: Chris Swift and Melinda Thompson noted rate increases are ahead of loss trends and attritional behavior is favorable.

Q: Commercial net written premium growth and share gain outlook?

A: Chris Swift and Morris Tooker discussed strong submission flow, conducive pricing environment, and taking market share with differentiated capabilities.

Q: Group Benefits margin trajectory and competitive landscape?

A: Chris Swift and Mike Fish talked about strong performance, competitive market, and new products, but competitive pricing pressure.