What The Hartford reported
The Hartford said it earned $1.1 billion in fourth-quarter 2025 net income available to common stockholders, or $3.98 per diluted share, up 33% from $848 million (or $2.88 per diluted share) in the fourth quarter of 2024.
For the full year 2025, the insurer reported $3.8 billion in net income available to common stockholders, or $13.32 per diluted share, up 23% from $3.1 billion (or $10.35 per diluted share) in 2024.
The company also reported core earnings (a non-GAAP measure) of $1.1 billion in the quarter ($4.06 per diluted share) and $3.8 billion for the year ($13.42 per diluted share), with both quarter and annual core earnings rising from the prior year.
The company said its net income ROE for the year was 22.0%, and its core earnings ROE was 19.4%.
Management’s thoughts on “outstanding” results
In the release, Christopher Swift described the year as “outstanding,” citing “excellent performance in Business Insurance,” “a pivotal year in Personal Insurance that restored target profitability in auto,” “strong margins in Employee Benefits,” and “solid performance from our investment portfolio.”
He added: “These outstanding fourth quarter and full-year results demonstrate the effectiveness of our strategy and the impact of innovation across the enterprise. We enter 2026 with momentum. Disciplined underwriting, extensive and trusted distribution relationships, and an unparalleled customer experience position The Hartford to continue delivering superior returns for shareholders.”
Chief Financial Officer Beth Costello pointed to “7 percent top-line growth” in Business Insurance and said Personal Insurance delivered “5.9 points of underlying combined ratio improvement,” while Employee Benefits produced a “core earnings margin of 7.6 percent.” She said investment performance was “solid,” citing “a diversified portfolio, attractive new money yields, and strong limited partnership returns.”
Underwriting and premium trends
The Hartford said Property & Casualty written premiums rose 5% in the fourth quarter of 2025 versus the prior-year quarter and rose 7% for the full year, driven by Business Insurance premium growth of 7% in the quarter and 8% for the year.
The company attributed fourth-quarter net income improvement primarily to:
- Higher net investment income
- Net favorable prior accident year development (PYD)
- Lower current accident year catastrophe losses in P&C
- Earned premium growth across P&C
- Improvement in the Personal Insurance underlying loss and loss adjustment expense ratio
- Partly offset by higher expense ratios in P&C and Employee Benefits
Segment scorecard
Business Insurance
- Q4 2025 net income: $897 million (vs. $708 million)
- Q4 combined ratio: 83.6; underlying combined ratio: 88.1
- FY 2025 combined ratio: 88.3; underlying combined ratio: 88.5
- Q4 written premiums: $3.381 billion (up 7%)
- The company said the quarter reflected greater net favorable PYD, higher net investment income, lower current accident year catastrophe losses, and earned premium growth, partly offset by a higher expense ratio and greater net realized losses.
Personal Insurance
- Q4 2025 net income: $212 million (vs. $154 million)
- Q4 combined ratio: 79.6; underlying combined ratio: 84.3
- FY 2025 combined ratio: 91.9; underlying combined ratio: 88.0
- Q4 written premiums: $850 million (down 2%)
- The insurer said the fourth quarter benefited from improvement in the underlying loss and loss adjustment expense ratio, higher earned premium, higher net investment income, lower current accident year catastrophe losses, and more favorable PYD.
Employee Benefits
- Q4 2025 net income: $130 million (vs. $126 million)
- Q4 net income margin: 7.2%; core earnings margin: 7.6%
- FY net income margin: 7.8%; core earnings margin: 8.2%
- The company said fully insured ongoing premiums were flat year over year, while higher expense ratios reflected higher staffing costs and technology costs, including increased investment.
Hartford Funds
- Q4 2025 net income: $59 million (vs. $49 million)
- Daily average AUM: $153.4 billion (up 8%)
- Q4 net flows: $(742) million (outflows), compared with $796 million of inflows a year earlier
Investment income and balance-sheet items
The Hartford reported net investment income (before tax) of $832 million in the fourth quarter, up from $714 million, and $2.911 billion for the year, up from $2.568 billion. It said the quarter included $160 million of limited partnership income, compared with $79 million a year earlier, and reported an annualized limited partnership yield of 11.4% in the quarter.
The company said total invested assets were $64.0 billion at year-end 2025, up $4.8 billion from year-end 2024, driven primarily by a net increase in book value and higher valuations on fixed maturities, which it attributed to lower interest rates.
Book value per diluted share at Dec. 31, 2025 was $66.31 (up 20.4% from $55.09). Book value per diluted share excluding AOCI (non-GAAP) was $73.62 (up 13.3% from $64.95).
Capital return to shareholders
The Hartford said it returned $546 million to stockholders in the fourth quarter, consisting of:
- $400 million of share repurchases
- $146 million in common stockholder dividends
For the full year, it said it returned $2.2 billion, consisting of:
- $1.6 billion of share repurchases
- $592 million in common stockholder dividends
Non-GAAP measures
The company noted that certain figures—such as core earnings, underlying combined ratio, and book value per diluted share excluding AOCI—are non-GAAP measures and said definitions and reconciliations are provided in the release under “Discussion of Non-GAAP Financial Measures.
