Hartford Insurance boosts share buyback as core earnings growth slows
The insurer authorized a new $4.2 billion share repurchase program following a 31% increase in net income to $1.3 billion.
The Hartford Financial Services Group (HIG) reported a 31% increase in net income available to common stockholders to $1.3 billion in the second quarter of 2026.
While the bottom line rose, the company experienced a deceleration in its primary operational momentum. Core earnings grew 1% year-over-year to $945 million, a sharp decline from the 36% growth reported in the first quarter of 2026.
Net income was bolstered by the sale of Hartford Funds Management, Inc., which contributed $318 million in income from discontinued operations, including a $251 million income tax benefit. Investment performance also provided a tailwind, as net investment income rose 22% to $800 million. This gain was due to an increase in annualized LP yield, which rose from 1.0% to 7.6%.
Growth in the property and casualty segment slowed to 3% in the second quarter, down from 4% in the first quarter and 5% in the fourth quarter of 2025. Within that segment, business insurance written premium growth fell to 5%, compared to 6% and 7% in the two preceding quarters. The underlying combined ratio for business insurance expanded to 89.3.
Personal insurance written premiums decreased 7% year-over-year to $915 million. However, the underlying combined ratio for the segment improved 1.7 points to 86.3 from 88.0 a year earlier, though it remained higher than the 85.0 reported in the first quarter.
Employee benefits showed signs of acceleration, with fully insured ongoing premium growth rising to 5% from 3% in the prior quarter. The core earnings margin for the segment was 7.4%, an increase from the 6.9% reported in the first quarter, though it remained below the 9.2% recorded in the second quarter of 2025.
Trailing 12-month net income return on equity increased to 23.8% from 19.8% in the prior year. The company's board authorized a new $4.2 billion share repurchase program, representing a 27% increase over the previous authorization.