The Hartford Financial Services Group (HIG) Q4 earnings topped the Wall Street consensus, helped by Y/Y premium growth across its business lines and growth in its investment portfolio, the insurer said Thursday.
"Results reflect strong underwriting with solid premium growth across the business, excellent margins, and a significant contribution from the investment portfolio," said Chairman and CEO Christopher Swift.
Q4 core EPS, exceeding the $1.87 consensus, rose from $1.44 in the prior quarter and from $2.02 in the year-ago period.
Commercial Lines core earnings were $562M vs. $363M in the prior quarter and $622M in the year-ago quarter. Combined ratio for the segment to 89.0 from 94.3 in Q3 and 84.6 in Q4 2021. Underwriting gain fell 21% Y/Y. Favorable prior-year development within core earnings of $68M, before tax, compared with $132M of favorable PYD within core earnings in Q4 2021.
Group Benefits core earnings to $141M from $117M in the prior quarter and -$12M in the year-ago period. The Y/Y change was largely due to a reduction in excess mortality losses, an improvement in group disability loss ratio, higher net investment income and earnings generated by 9% growth in fully insured ongoing premiums, partly offset by a higher group life loss ratio excluding excess mortality and higher insurance operating expenses.
Personal Lines core earnings were $42M vs. -$28M in Q3 and $70M in Q4 2021. Underwriting gain of $7M dropped 84% Y/Y.
P&C current accident year catastrophe losses (pretax) of $135M, including $167M from Winter Storm Elliott, vs. $293M in Q3, including $214M from Hurricane Ian, and $22M in Q4 2021.
Pretax net investment income totaled $640M vs. $487M in Q3 and $573M in Q4 2021.
Book value was $41.53 per share at Dec. 31, 2022 vs. $38.99 at Sept. 30.
Conference call on Feb. 3 at 9:00 AM ET.
Earlier, Hartford Financial (HIG) non-GAAP EPS of $2.31 beats by $0.44, revenue of $6.02 beats by $280M