HARTFORD INSURANCE GROUP, INC. Q3 FY2025 earnings call

• Business Insurance: Small business franchise strong with record new business premium and 11% written premium growth. Middle & Large business had 10% written premium growth. Global Specialty had 5% net written premium growth with mid-80s underlying margins. Pricing execution disciplined with various lines seeing rate increases. - Personal Insurance: Underlying combined ratio improved, agency growth with 17% policies in force growth. Launched Prevail to retail distribution with 30 state launches planned by early 2027. - Employee Benefits: Core earnings margin of 8.3% due to excellent group life and strong disability performance. - Capital and Investments: Announced 15% increase in common quarterly dividend. Repurchased 3.1 million shares for $400 million in the quarter. Diversified investment portfolio had net investment income increase due to various factors.

Business Insurance: Third quarter results showed excellent growth with strong underlying margins. Written premium growth of 9% with an underlying combined ratio of 89.4%. Small business delivered record new business premium with 11% written premium growth and strong underlying combined ratios. Middle & Large business had 10% written premium growth with solid underlying margins. Global Specialty had 5% net written premium growth with underlying margins in the mid-80s. Personal Insurance: Underlying combined ratio of 90%, a 3.7-point improvement over prior year. Written premium increased 2% in Q3, with 11.3% written pricing increase in auto and 12.6% in homeowners. Agency policies in force grew 17% over prior year. Employee Benefits: Core earnings margin of 8.3% driven by excellent life and strong disability results. Persistency remained strong in the low 90s.

• Business Insurance written premium expected to exceed $6 billion in 2025, representing 10% growth over prior year. - Confident in sustaining strong results by leveraging industry-leading tools, underwriting expertise, and advanced data science. - Dividend increase and share repurchase plans indicate confidence in financial strength and earnings power.

• Workers' comp market dynamics with limited rate increases expected. - Competition in Personal Insurance impacting growth and retention. - Potential impacts of tariffs on loss trends in Business Insurance.

Q: Brian Meredith asked about workers' comp pricing trend and business insurance underlying loss ratio.

A: Chris Swift responded that workers' comp market remains consistent with limited rate increases, and underlying loss ratio differences are due to incentive compensation and mix of business.

Q: Andrew Kligerman inquired about Personal lines auto underlying loss ratio and Prevail's impact.

A: Christopher Swift and Melinda Thompson discussed auto underlying combined ratio targets and Prevail's positive initial results with state launches planned.

Q: Elyse Greenspan asked about Personal lines impact of tariffs and capital position.

A: Christopher Swift said tariffs had negligible impact this year, and Beth Bombara explained dividend increase is due to strong earnings power.

Q: Ryan Tunis questioned Business Insurance underlying combined ratio deterioration and group disability trends.

A: Christopher Swift and Michael Fish addressed national account mix impact and normalization of long-term disability loss ratio trends.