The Hartford Delivers Record-Setting Q4 and Full-Year 2024 Performance
The Hartford posted strong financial results for the fourth quarter and full year of 2024, driven by growth in Property & Casualty (P&C) premiums, improved underwriting margins, and higher investment income. The company returned $2.1 billion to stockholders over the year, including share repurchases and dividends.
“The Hartford delivered an outstanding year with a core earnings ROE of 16.7 percent,” said The Hartford’s Chairman and CEO Christopher Swift. “Results were driven by sustained momentum in Commercial Lines, which once again generated strong top-line growth at highly profitable margins, significant progress in Personal Lines toward restoring target profitability in auto, continued strong margins in Group Benefits, and a higher investment portfolio yield.”
Fourth Quarter 2024 Financial Highlights
- Net income available to common stockholders: $848 million ($2.88 per diluted share), up 11% from $766 million in Q4 2023.
- Core earnings: $865 million ($2.94 per diluted share), down 7% from $935 million in Q4 2023.
- P&C written premiums: Up 7% year-over-year, driven by growth in Commercial Lines (+6%) and Personal Lines (+12%).
- Commercial Lines combined ratio: 87.4, with an underlying combined ratio of 87.1.
- Personal Lines combined ratio: 85.8, improving 15.4 points year-over-year.
- Group Benefits net income margin: 7.1%, with a core earnings margin of 7.8%.
- Stockholder returns: $537 million returned in Q4, including $400 million in share repurchases and $137 million in dividends.
Chairman and CEO Christopher Swift stated during the earnings call, “Our outstanding results highlight the strength of our franchise, particularly our exceptional underwriting execution, extensive distribution relationships, and an unparalleled customer experience.”
Full-Year 2024 Performance
- Net income available to common stockholders: $3.1 billion ($10.35 per diluted share), up 24% from 2023.
- Core earnings: $3.1 billion ($10.30 per diluted share), up 11% from 2023.
- Net income ROE: 19.9%, compared to 17.5% in 2023.
- Core earnings ROE: 16.7%, up from 15.8% in 2023.
- P&C written premiums: Increased 10% year-over-year.
- Commercial Lines full-year combined ratio: 89.9, with an underlying combined ratio of 87.9.
- Personal Lines full-year combined ratio: 99.1, improving 8.4 points year-over-year.
- Group Benefits net income margin: 7.9%, with a core earnings margin of 8.2%.
Business Segment Performance
Commercial Lines
The Hartford’s Chief Financial Officer Beth Costello said, “Commercial Lines had a strong quarter with top-line growth of 6 percent and an underlying combined ratio of 87.1. Pricing, excluding workers’ compensation, accelerated to 9.7 percent in the quarter and remains above loss cost trends. Personal Lines achieved 9.3 points of underlying combined ratio improvement in the quarter, including over 10 points in auto. Group Benefits continued to outperform with a core earnings margin of 7.8 percent, led by strong life and disability results.”
- Fourth quarter net income: $708 million, up 3% from Q4 2023.
- Full-year net income: $2.35 billion, a 13% increase.
- Q4 combined ratio: 87.4, reflecting strong underwriting results.
- Full-year written premiums: $13.35 billion, up 9% from 2023.
Personal Lines
Melinda Thompson, Head of Personal Lines, stated, “We achieved 9.3 points of underlying combined ratio improvement in the quarter, including over 10 points in auto. This reflects our disciplined underwriting and pricing strategy.”
- Q4 net income: $154 million, a significant improvement from $34 million in Q4 2023.
- Full-year net income: $208 million, reversing a $39 million loss in 2023.
- Q4 combined ratio: 85.8, a 15.4-point improvement year-over-year.
- Full-year combined ratio: 99.1, improving 8.4 points.
- Q4 written premiums: $871 million, up 12% year-over-year.
Group Benefits
Michael Fish, Head of Group Benefits, added, “Our Group Benefits segment continues to deliver strong margins, with life and disability results outperforming expectations.”
- Q4 net income: $126 million, down from $176 million in Q4 2023.
- Full-year net income: $561 million, up 5% from 2023.
- Q4 core earnings margin: 7.8%, compared to 9.8% in Q4 2023.
- Full-year fully insured ongoing premiums: $6.39 billion, up 2% year-over-year.
Investment and Capital Management
- Q4 net investment income: $714 million, up from $653 million in Q4 2023.
- Annualized investment yield: 4.7% before tax, compared to 4.5% in 2023.
- Total stockholder returns: $2.1 billion for 2024, including $1.5 billion in share repurchases and $556 million in dividends.
Chief Financial Officer Beth Costello commented, “Our investment portfolio delivered solid results, and we maintained disciplined capital management, ensuring strong returns to our shareholders.”
Swift concluded, “With our capabilities and top talent, we are well-positioned for continued success in 2025 and beyond.”
