HARTFORD INSURANCE GROUP, INC. Q1 FY2026 earnings call

• Business insurance: Strong quarter with excellent execution across lines, underwriting decisions benefited from real-time insights, growing in small business where price, terms, and conditions compensate for risk. • Personal insurance: Strong execution in home with low double-digit pricing, agency offering live in 15 states with 30 planned by early 2027. • Employee benefits: Earnings margin driven by life and disability, excellent new business sales growth, enhanced digital capabilities and API connectivity. • Investments: Diversified portfolio produced strong results, net investment income increased, private credit investments have attractive yields.

Business insurance: Delivered strong written premium growth of 6% with an underlying combined ratio of 89.2. Small business had written premium growth of 8% and an underlying combined ratio of 89.4. Middle and large business had written premium growth of 5% and an underlying combined ratio of 91.3. Global specialty had underlying margins in the mid-'80s, written premium growth of 3%. Global REED had premium growth of 11%. Personal insurance: Underlying combined ratio improved 4.7 points year over year, written premium declined 6% with 10% decrease in auto and 4% growth in home. Employee benefits: Core earnings margin was 6.9%, driven by outstanding life and strong disability performance, fully insured premium increased 3% year over year. Investment portfolio: Generated strong net investment income.

• Net investment income expected to increase in 2026 supported by continued growth in invested assets, overall portfolio yields expected to be generally in line with 2025. • Expect to remain at the level of share repurchases in the second quarter with $1.1 billion remaining on share repurchase authorization through December 31, 2026.

• Geopolitical and economic uncertainty may impact investment portfolio performance. • Competitive market conditions in personal insurance could affect growth and pricing. • Catastrophic events like winter storms and tornadoes can impact losses in business and personal insurance. • General liability reserves related to historical sexual abuse and molestation exposures could impact results. • Volatility in the market for direct lending and BDCs could affect investment performance.

Q: Around pricing, particularly in small business area, talk about resilience of pricing.

A: Andrew Kliegerman's question answered by Chris and Mo on small business pricing resilience and execution.

Q: On business insurance expense ratio seasonality and trajectory.

A: Elise Greenspan's question answered on expense ratio seasonality and targets.

Q: On business insurance premium growth within BI.

A: Brian Meredith's question answered on business insurance premium growth and market impact.

Q: On market competition in E&S and MGA.

A: Brian Meredith's second question answered on E&S and MGA competition.

Q: On workers' comp profitability.

A: Answered on workers' comp pricing and market behavior.

Q: On market competition impact on operating strategy.

A: Mike Zaremski's question answered on market competition and operating strategy.

Q: On BI reserves and loss emergence.

A: Katie Sackis' question answered on BI reserves and loss emergence.

Q: On direct lending and BDC exposure.

A: Beth's answer on direct lending and BDC exposure.

Q: On benefits business sales.

A: Gregory Peters' question answered on benefits business sales.

Q: On personal lines business and Prevail rollout.

A: Answered on personal lines business and Prevail rollout.

Q: On CATS and property diversification.

A: Rob Cox's question answered on CATS and property diversification.

Q: On personal auto and competitive environment.

A: Yaron Kinnar's question answered on personal auto and competitive environment