Hartford Core Earnings Reverse After a Year-Over-Year Rise

The Tip Desk · October 27, 2026 · 3 min read

Core earnings were $956 million, or $3.50 a share, down 6% from a year earlier after a 1% increase in the second quarter.

The Hartford Insurance Group (HIG) reported third-quarter core earnings of $956 million, or $3.50 a share, down 6% from $1,022 million, or $3.59 a share, a year earlier, reversing a 1% year-over-year increase in the second quarter.

GAAP net income available to common stockholders was $1.3 billion, or $4.82 a share, up 23% from $1.1 billion, or $3.77 a share. The company said the GAAP increase reflected a $497 million net gain from commuting the asbestos and environmental adverse development cover, higher catastrophe losses, and stronger investment income. Net core favorable prior-year development was $97 million, relatively flat versus $95 million a year earlier.

Property & Casualty written premiums rose 4%, up from 3% growth in the second quarter, driven by Business Insurance premium growth of 6%. Business Insurance written premiums were $3.8 billion, matching the 6% growth rate in the first quarter after 5% growth in the second quarter. Small Business and Global Specialty each delivered 7% written premium growth; Middle & Large increased 3%, including 5% growth in Middle Market.

The Business Insurance combined ratio was 91.3 and the underlying combined ratio 90.1, versus 91.4 and 89.3 in the second quarter. The company attributed the year-over-year combined-ratio increase to 1.7 points of higher current-accident-year catastrophes and 0.1 points of less favorable prior-year development. The underlying loss and loss adjustment expense ratio rose 2.0 points to 59.9.

Small Business combined ratio improved to 84.5 from 87.9 a year earlier, with an underlying combined ratio of 85.2. Middle & Large combined ratio increased to 101.7 from 90.8, including an underlying combined ratio of 99.5. Global Specialty combined ratio was 89.1, with an underlying combined ratio of 86.1. Business Insurance net income was $637 million; core earnings were $731 million.

Personal Insurance written premiums were $950 million, down from $987 million a year earlier. Earned premium declined 4%, driven by an 8% automobile decline that the company said reflected continued pressure on new business in a competitive market, partially offset by 5% earned premium growth in homeowners, including 20% new business growth.

The Personal Insurance combined ratio was 93.2 and the underlying combined ratio 87.1, versus 90.1 and 86.3 in the second quarter. The underlying ratio improved 2.9 points from 90.0 a year earlier, which the company attributed to earned pricing increases outpacing loss cost trends. Catastrophe losses of $92 million, before tax, increased from $31 million. Personal Insurance net income was $93 million; core earnings were $105 million.

Employee Benefits fully insured ongoing premium growth was 4%, down from 5% in the second quarter, with a core earnings margin of 6.4% versus 7.4%. Fully insured ongoing premiums were $1.66 billion. The loss ratio increased to 74.9% from 70.1% a year earlier, with group disability up 5.7 points and group life up 3.6 points. The expense ratio improved 1.3 points to 25.4%. Employee Benefits net income was $132 million; core earnings were $120 million.

Consolidated net investment income, before tax, was $850 million, up from $755 million a year earlier. Annualized LP yield, before tax, was 10.2%, versus 6.7%. LP income was $156 million, before tax, versus $91 million. Net realized losses were $116 million, before tax, versus $17 million.

The company returned $638 million to stockholders in the third quarter, including $475 million of share repurchases and $163 million of common dividends. It increased the quarterly common dividend 12% to $0.67, payable Jan. 5, 2027. Chairman and CEO Christopher Swift said Mo Tooker will succeed him as CEO on March 1, with Swift transitioning to Executive Chair and planning to step down from that role in the second half of 2027.