The Hartford Insurance Group, Inc. (HIG) Earnings & Analysis

Latest quarter

The Hartford reported Q2 FY2026 revenue of $7.3 billion, compared with $6.7 billion a year earlier, while the consensus counted revenue at $5.2 billion versus a $5.2 billion consensus estimate. The company reported adjusted EPS, as the consensus counts it, of $3.42, above the $3.12 consensus estimate.

The filing reports diluted EPS of $4.68, compared with $3.44 in Q2 FY2025. Revenue increased 8.14% from a year earlier, while diluted EPS increased 36.0%. The company reported gross margin of 43.8%, down −0.9 percentage points from the prior-year quarter, and operating margin of 17.6%, down −0.6 percentage points. Free cash flow was $1.3 billion, compared with $1.3 billion a year earlier.

On the call, The Hartford said Business Insurance written premiums grew 5%, while Personal Insurance written premiums declined 7%, including a 10% decline in auto and flat home growth. Chris Swift said Employee Benefits recorded premium growth, supported by sales, persistency and technology investments.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Chris Swift said Business Insurance growth reflected double-digit increases in package and E&S binding, while middle and large business written premiums grew 4%. He said the company’s investments in automation, digital service and AI-enabled underwriting were intended to improve quoting, risk insights and underwriting workflows.

Swift said renewal written pricing in Business Insurance, excluding workers’ compensation, was 5.8% in the quarter. He said commercial auto and general liability pricing remained above loss trend, while property pricing moderated, particularly in large property. He also said the company would deploy capital selectively and step away from accounts when it could not generate the returns it sought.

Analysts asked about competition and pricing in middle and large commercial insurance. Mo, President of Business Insurance, said competition had increased in that market during the second quarter and could affect growth in the second half if the dynamic continued. Swift said the company had not provided guidance, describing its 2027 measures as organizational goals rather than guidance.

In Personal Insurance, Swift said competition for new business remained elevated. He said the company expected pressure in the direct channel heading into 2027 as shopping and competition remained elevated, while Melinda Vest, President of Personal Insurance, said the company was encouraged by agency-channel execution and its progress toward long-term growth objectives.

Beth Costello said Q2 net investment income was $800 million, driven by income from limited partnerships and other alternative investments and a higher level of invested assets. She said limited-partnership returns in the second half were expected to remain generally consistent with the average annualized return achieved in the first half, although geopolitical and economic volatility could affect results.

Analysts also pressed management on Employee Benefits margins and disability claims. Swift said the long-term Employee Benefits margin view remained 6% to 7% and said the business was performing within expectations. Mike Fish, Head of Employee Benefits, said disability claims had increased across diagnoses, with behavioral-health claims rising relative to other claims, and said paid family and medical leave utilization had increased in newer and established states. Fish said the company would continue to monitor experience and apply rates to that business.

Guidance

The Hartford said it was not providing guidance and characterized its 2027 measures as organizational goals. Beth Costello said the company continued to expect 2026 net investment income to increase, supported by growth in invested assets, with overall portfolio yields broadly in line with 2025. The company’s long-term Employee Benefits operating-margin target remained 6.00%–7.00%.