Hartford Financial Q4 Earnings Beat on P&C Earned Premiums Growth

The Hartford Financial Services Group, Inc. HIG reported fourth-quarter 2024 adjusted operating earnings of $2.94 per share, which beat the Zacks Consensus Estimate by 10.1%. However, the bottom line decreased 3.9% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news. HIG's operating revenues amounted to $4.8 billion, which improved 11.1% year over year in the quarter under review. The top line beat the consensus mark by a whisker.Better-than-expected quarterly results benefited from improved premiums earned, net investment income and well-performing Personal Lines and Hartford Funds businesses. The Personal Lines business benefited from a double-digit earned pricing increase and favorable prior-year development. An increased expense level and poor performance in the Commercial Lines and Group Benefits segment partially offset the positives.The Hartford Financial Services Group, Inc. Price, Consensus and EPS Surprise The Hartford Financial Services Group, Inc. price-consensus-eps-surprise-chart | The Hartford Financial Services Group, Inc. QuoteQ4 OperationsEarned premiums of Hartford Financial rose 6.9% year over year to $5.8 billion in the fourth quarter but missed the Zacks Consensus Estimate by 0.7%. The metric was driven by a 9.6% and 0.6% year-over-year rise in P&C and Group Benefits’ earned premiums, respectively.Pre-tax net investment income of $714 million grew 9.3% year over year and beat the consensus mark by 5.5%. The year-over-year growth came from improved returns from the fixed-income portfolio and higher invested assets. Net investment income witnessed year-over-year growth in both the Property and Casualty and Group Benefits segments.Total benefits, losses and expenses increased 6.5% year over year to $5.8 billion in the quarter under review. The year-over-year increase was due to higher benefits, losses and loss adjustment expenses, amortization of deferred policy acquisition costs and insurance operating expenses.Pretax income of $1.1 billion increased 13.1% year over year in the fourth quarter.Segmental UpdateP&CCommercial LinesRevenues in the segment amounted to $3.8 billion in the fourth quarter, which rose 10.3% year over year. The metric beat the Zacks Consensus Estimate by a whisker. Core earnings of $665 million declined 8% year over year due to higher catastrophe losses, a decrease in net favorable prior accident year development and higher benefits, losses and loss adjustment expenses.The underlying combined ratio deteriorated 50 bps year over year to 87.1%, attributable to a 60-bps deterioration in the expense ratio, partially offset by a 10-bps improvement in the underlying loss and loss adjustment expense ratio.Personal LinesThe segment recorded revenues of $993 million, which improved 13.4% year over year. The metric beat the consensus estimate by 4.5%. Core earnings were $155 million in the quarter under review.Double-digit earned premiums, investment income growth, favorable prior-year development, and lower catastrophe losses, coupled with an improved expense ratio, buoyed the segment’s results.The underlying combined ratio of 90.2% improved 930 bps year over year.P&C Other OpsRevenues of $18 million improved 5.9% year over year in the fourth quarter.Group BenefitsThe segment’s revenues declined 0.1% year over year to $1.77 billion in the quarter under review, which missed the Zacks Consensus Estimate by 1%. Core earnings of $139 million declined 20.1% year over year due to a higher expense ratio and group disability loss ratio.The loss ratio deteriorated 70 bps year over year to 70.6% in the fourth quarter.Hartford FundsRevenues amounted to $272 million, which increased 7.1% year over year in the fourth quarter but missed the Zacks Consensus Estimate by 0.4%. Core earnings improved 30.8% year over year to $51 million in the fourth quarter of 2024.The segment’s daily average assets under management improved 14% year over year to $142.2 billion.CorporateThe segment’s revenues decreased 17.8% year over year to $37 million. However, the metric beat the consensus estimate by 55.1%. The unit incurred a core loss of $39 million in the quarter under review, wider than the year-ago quarter’s loss of $36 million due to lower net investment income. Financial Update (as of Dec. 31, 2024)Hartford Financial exited the fourth quarter with cash of $183 million, which rose from the 2023-end figure of $126 million. Total investments of $59.2 billion rose from the 2023-end figure of $55.9 billion.Total assets of $80.9 billion increased from the 2023-end figure of $76.8 billion.Debt amounted to $4.4 billion, which inched up marginally from the figure as of Dec. 31, 2023.Total stockholders’ equity improved from the 2023-end level of $15.3 billion to $16.4 billion.Book value per share was $55.09, up from the 2023-end level of $50.23.Core earnings’ return on equity in the trailing 12 months improved 90 bps year over year to 16.7% at the fourth-quarter end.Capital Deployment UpdateHartford Financial returned $537 million to shareholders via share buybacks of $400 million and common stockholder dividends of $137 million. HIG had a leftover buyback capacity of $3.15 million as of Dec. 31, 2024.Full-Year UpdateAdjusted operating earnings of Hartford Financial came in at $10.30 per share for 2024, which climbed 16% year over year. Revenues of $26.5 billion grew 8.2% year over year.Net earned premiums rose 7.3% year over year to $22.6 billion in 2024. Net investment income of $2,177 million increased 11.4% year over year.HIG’s Zacks RankHartford Financial currently carries a Zacks Rank #3 (Hold).Stocks to ConsiderSome better-ranked stocks in the Finance space are Primerica, Inc. PRI, Intercorp Financial Services Inc. IFS and Civista Bancshares, Inc. CIVB. While Primerica sports Zacks Rank #1 (Strong Buy), Intercorp Financial and Civista Bancshares carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Primerica’s earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 4.89%. The Zacks Consensus Estimate for PRI’s 2025 earnings indicates a rise of 5.6%, while the same for revenues implies an improvement of 4.5% from the respective 2024 estimates. The consensus mark for PRI’s 2025 earnings has moved 0.8% north in the past seven days. The bottom line of Intercorp Financial Services outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 36.2%. The Zacks Consensus Estimate for IFS’ 2025 earnings suggests an improvement of 48.2% from the 2024 estimate. The consensus mark for revenues suggests growth of 9% from the 2024 estimate. The consensus mark for IFS’ 2025 earnings has moved 0.7% north in the past 60 days.The bottom line of Civista Bancshares outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 7.72%. The Zacks Consensus Estimate for CIVB’s 2025 earnings suggests an improvement of 8.2% from the 2024 estimate. The consensus mark for revenues suggests growth of 4.9% from the 2024 estimate. The consensus mark for CIVB’s 2025 earnings has moved 1.5% north in the past 30 days.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hartford Financial Services Group, Inc. (HIG): Free Stock Analysis Report Primerica, Inc. (PRI): Free Stock Analysis Report Civista Bancshares, Inc. (CIVB): Free Stock Analysis Report Intercorp Financial Services Inc. (IFS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks