New
Fourth Quarter 2024 Investor Financial Supplement
INVESTOR FINANCIAL SUPPLEMENT
December 31, 2024
Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they
appear in this document. These measures are defined within the Discussion ofNon-GAAPand Other Financial Measuressection and are reconciled to the most directly comparable generally
accepted accounting principles ("GAAP") measure herein.
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Address:
One Hartford Plaza
Hartford, CT 06155
Internet address: http://www.thehartford.com
Contact:
Susan Spivak Bernstein
Senior Vice President
Investor Relations
Phone (860) 547-6233
|
As of January 29, 2025 |
|||
|
A.M. Best |
Standard & Poor's |
Moody's |
|
|
Insurance Financial Strength Ratings: |
|||
|
Hartford Fire Insurance Company |
A+ |
A+ |
A1 |
|
Hartford Life and Accident Insurance Company |
A+ |
A+ |
A1 |
|
Navigators Insurance Company |
A+ |
A+ |
NR |
- Hartford Fire Insurance Company ratings are on positive outlook at Standard and Poor's and Moody's and on stable outlook at A.M. Best
- Hartford Life and Accident Insurance Company ratings are on positive outlook at Standard and Poor's and on stable outlook at A.M. Best and Moody's
- Navigators Insurance Company ratings are on positive outlook at Standard and Poor's and on stable outlook at A.M. Best
NR - Not Rated
|
Other Ratings: |
|||
|
Senior debt |
a- |
BBB+ |
Baa1 |
|
Junior subordinated debentures |
bbb |
BBB- |
Baa2 |
|
Preferred stock |
bbb |
BBB- |
Baa3 |
- The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on positive outlook at A.M. Best, Standard and Poor's and Moody's
TRANSFER AGENT
Stockholder correspondence should be mailed to: Computershare
P.O. Box 505000 Louisville, KY 40233
Overnight correspondence should be mailed to: Computershare
462 South 4th Street, Suite 1600 Louisville, KY 40202
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols "HIG" and "HIG PR G", respectively. This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTOR FINANCIAL SUPPLEMENT
TABLE OF CONTENTS
Property & Casualty Income Statements
Property & Casualty Income Statements (Continued) Property & Casualty Underwriting Ratios Commercial Lines Income Statements Commercial Lines Income Statements (Continued) Commercial Lines Underwriting Ratios Commercial Lines Supplemental Data
Personal Lines Income Statements
Personal Lines Income Statements (Continued) Personal Lines Underwriting Ratios Personal Lines Supplemental Data
Personal Lines Supplemental Data (Continued) P&C Other Operations Income Statements
Income Statements
Supplemental Data
Income Statements
Asset Value Rollforward - Assets Under Management By Asset Class
Income Statements
Investment Income Before Tax - Consolidated
Investment Income Before Tax - Property & Casualty
Investment Income Before Tax - Group Benefits
Net Investment Income
Components of Net Realized Gains (Losses)
Composition of Invested Assets
Invested Asset Exposures
Basis of Presentation and Definitions
Discussion of Non-GAAP and Other Financial Measures
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
|
THREE MONTHS ENDED |
YEAR ENDED |
||||||||||||||||||||
|
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Dec 31 |
||||||||||||
|
2024 |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||
|
HIGHLIGHTS |
|||||||||||||||||||||
|
Net income |
$ |
853 |
$ |
767 |
$ |
738 |
$ |
753 |
$ |
771 |
$ |
651 |
$ |
547 |
$ |
535 |
$ |
3,111 |
$ |
2,504 |
|
|
Net income available to common stockholders [1] |
$ |
848 |
$ |
761 |
$ |
733 |
$ |
748 |
$ |
766 |
$ |
645 |
$ |
542 |
$ |
530 |
$ |
3,090 |
$ |
2,483 |
|
|
Core earnings* |
$ |
865 |
$ |
752 |
$ |
750 |
$ |
709 |
$ |
935 |
$ |
708 |
$ |
588 |
$ |
536 |
$ |
3,076 |
$ |
2,767 |
|
|
Total revenues |
$ |
6,879 |
$ |
6,751 |
$ |
6,486 |
$ |
6,419 |
$ |
6,400 |
$ |
6,168 |
$ |
6,049 |
$ |
5,910 |
$ |
26,535 |
$ |
24,527 |
|
|
Total assets |
$80,917 |
$81,219 |
$79,046 |
$77,710 |
$76,780 |
$74,516 |
$73,895 |
$74,249 |
|||||||||||||
|
PER SHARE AND SHARES DATA |
|||||||||||||||||||||
|
Basic earnings per common share |
|||||||||||||||||||||
|
Net income available to common stockholders |
$ |
2.93 |
$ |
2.60 |
$ |
2.48 |
$ |
2.51 |
$ |
2.55 |
$ |
2.12 |
$ |
1.75 |
$ |
1.69 |
$ |
10.51 |
$ |
8.09 |
|
|
Core earnings* |
$ |
2.99 |
$ |
2.57 |
$ |
2.54 |
$ |
2.38 |
$ |
3.11 |
$ |
2.32 |
$ |
1.90 |
$ |
1.71 |
$ |
10.47 |
$ |
9.01 |
|
|
Diluted earnings per common share |
|||||||||||||||||||||
|
Net income available to common stockholders |
$ |
2.88 |
$ |
2.56 |
$ |
2.44 |
$ |
2.47 |
$ |
2.51 |
$ |
2.09 |
$ |
1.73 |
$ |
1.66 |
$ |
10.35 |
$ |
7.97 |
|
|
Core earnings* |
$ |
2.94 |
$ |
2.53 |
$ |
2.50 |
$ |
2.34 |
$ |
3.06 |
$ |
2.29 |
$ |
1.88 |
$ |
1.68 |
$ |
10.30 |
$ |
8.88 |
|
|
Weighted average common shares outstanding (basic) |
289.3 |
292.6 |
295.5 |
298.1 |
300.3 |
304.6 |
309.4 |
314.0 |
293.9 |
307.1 |
|||||||||||
|
Dilutive effect of stock compensation |
4.9 |
4.9 |
4.4 |
4.5 |
4.8 |
4.4 |
3.9 |
4.6 |
4.7 |
4.4 |
|||||||||||
|
Weighted average common shares outstanding and dilutive potential common |
294.2 |
297.5 |
299.9 |
302.6 |
305.1 |
309.0 |
313.3 |
318.6 |
298.6 |
311.5 |
|||||||||||
|
shares (diluted) |
|||||||||||||||||||||
|
Common shares outstanding |
287.6 |
290.8 |
294.0 |
296.8 |
298.5 |
302.4 |
307.1 |
311.8 |
|||||||||||||
|
Book value per common share |
$ |
56.03 |
$ |
57.34 |
$ |
52.20 |
$ |
50.99 |
$ |
50.23 |
$ |
44.13 |
$ |
45.00 |
$ |
44.92 |
|||||
|
Per common share impact of accumulated other comprehensive income [2] |
10.03 |
6.89 |
10.43 |
10.10 |
9.54 |
13.82 |
11.47 |
10.44 |
|||||||||||||
|
Book value per common share (excluding AOCI)* |
$ |
66.06 |
$ |
64.23 |
$ |
62.63 |
$ |
61.09 |
$ |
59.77 |
$ |
57.95 |
$ |
56.47 |
$ |
55.36 |
|||||
|
Book value per diluted share |
$ |
55.09 |
$ |
56.39 |
$ |
51.43 |
$ |
50.23 |
$ |
49.43 |
$ |
43.50 |
$ |
44.43 |
$ |
44.27 |
|||||
|
Per diluted share impact of AOCI |
9.86 |
6.78 |
10.28 |
9.95 |
9.40 |
13.62 |
11.33 |
10.28 |
|||||||||||||
|
Book value per diluted share (excluding AOCI)* |
$ |
64.95 |
$ |
63.17 |
$ |
61.71 |
$ |
60.18 |
$ |
58.83 |
$ |
57.12 |
$ |
55.76 |
$ |
54.55 |
|||||
|
Common shares outstanding and dilutive potential common shares |
292.5 |
295.7 |
298.4 |
301.3 |
303.3 |
306.8 |
311.0 |
316.4 |
|||||||||||||
|
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3] |
|||||||||||||||||||||
|
Net income available to common stockholders' ROE ("Net income ROE") |
19.9% |
20.0% |
19.8% |
18.5% |
17.5% |
17.7% |
14.4 % |
12.8 % |
|||||||||||||
|
Core earnings ROE* |
16.7% |
17.4% |
17.4% |
16.6% |
15.8% |
14.9% |
13.6 % |
14.3 % |
- Net income available to common stockholders includes the impact of preferred stock dividends.
- Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, liability for future policy benefits adjustments, and pension and other postretirement benefit plan adjustments.
- For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page33.
1
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
|
THREE MONTHS ENDED |
YEAR ENDED |
||||||||||||||||||||
|
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Dec 31 |
||||||||||||
|
2024 |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||
|
Earned premiums |
$ |
5,809 |
$ |
5,734 |
$ |
5,578 |
$ |
5,446 |
$ |
5,433 |
$ |
5,310 |
$ |
5,220 |
$ |
5,063 |
$ |
22,567 |
$ |
21,026 |
|
|
Fee income |
354 |
347 |
339 |
333 |
323 |
330 |
328 |
319 |
1,373 |
1,300 |
|||||||||||
|
Net investment income |
714 |
659 |
602 |
593 |
653 |
597 |
540 |
515 |
2,568 |
2,305 |
|||||||||||
|
Net realized gains (losses) |
(17) |
(13) |
(59) |
28 |
(27) |
(90) |
(64) |
(7) |
(61) |
(188) |
|||||||||||
|
Other revenues |
19 |
24 |
26 |
19 |
18 |
21 |
25 |
20 |
88 |
84 |
|||||||||||
|
Total revenues |
6,879 |
6,751 |
6,486 |
6,419 |
6,400 |
6,168 |
6,049 |
5,910 |
26,535 |
24,527 |
|||||||||||
|
Benefits, losses and loss adjustment expenses |
3,779 |
3,823 |
3,661 |
3,611 |
3,633 |
3,543 |
3,580 |
3,482 |
14,874 |
14,238 |
|||||||||||
|
Amortization of deferred policy acquisition costs ("DAC") |
591 |
585 |
561 |
545 |
534 |
517 |
502 |
491 |
2,282 |
2,044 |
|||||||||||
|
Insurance operating costs and other expenses |
1,367 |
1,323 |
1,285 |
1,283 |
1,214 |
1,226 |
1,225 |
1,216 |
5,258 |
4,881 |
|||||||||||
|
Interest expense |
50 |
49 |
50 |
50 |
49 |
50 |
50 |
50 |
199 |
199 |
|||||||||||
|
Amortization of other intangible assets |
18 |
18 |
17 |
18 |
18 |
18 |
17 |
18 |
71 |
71 |
|||||||||||
|
Restructuring and other costs [1] |
- |
1 |
- |
1 |
2 |
1 |
3 |
- |
2 |
6 |
|||||||||||
|
Total benefits, losses and expenses |
5,805 |
5,799 |
5,574 |
5,508 |
5,450 |
5,355 |
5,377 |
5,257 |
22,686 |
21,439 |
|||||||||||
|
Income before income taxes |
1,074 |
952 |
912 |
911 |
950 |
813 |
672 |
653 |
3,849 |
3,088 |
|||||||||||
|
Income tax expense |
221 |
185 |
174 |
158 |
179 |
162 |
125 |
118 |
738 |
584 |
|||||||||||
|
Net income |
853 |
767 |
738 |
753 |
771 |
651 |
547 |
535 |
3,111 |
2,504 |
|||||||||||
|
Preferred stock dividends |
5 |
6 |
5 |
5 |
5 |
6 |
5 |
5 |
21 |
21 |
|||||||||||
|
Net income available to common stockholders |
848 |
761 |
733 |
748 |
766 |
645 |
542 |
530 |
3,090 |
2,483 |
|||||||||||
|
Adjustments to reconcile net income available to common stockholders to core |
|||||||||||||||||||||
|
earnings: |
|||||||||||||||||||||
|
Net realized losses (gains), excluded from core earnings, before tax |
16 |
12 |
58 |
(30) |
16 |
76 |
53 |
7 |
56 |
152 |
|||||||||||
|
Restructuring and other costs, before tax [1] |
- |
1 |
- |
1 |
2 |
1 |
3 |
- |
2 |
6 |
|||||||||||
|
Integration and other non-recurring M&A costs, before tax [2] |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
8 |
8 |
|||||||||||
|
Change in deferred gain on retroactive reinsurance, before tax [3] |
4 |
(26) |
(37) |
(24) |
194 |
- |
- |
- |
(83) |
194 |
|||||||||||
|
Income tax expense (benefit) [4] |
(5) |
2 |
(6) |
12 |
(45) |
(16) |
(12) |
(3) |
3 |
(76) |
|||||||||||
|
Core earnings |
$ |
865 |
$ |
752 |
$ |
750 |
$ |
709 |
$ |
935 |
$ |
708 |
$ |
588 |
$ |
536 |
$ |
3,076 |
$ |
2,767 |
- Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
- Includes integration costs in connection with the 2019 acquisition of Navigators Group and 2017 acquisition of Aetna's group life and disability business.
- For the three and twelve months ended December 31, 2024, the Company recorded amortization of the deferred gain related to the Navigators adverse development cover ("Navigators ADC") of $58 and $145, respectively. In addition, for the three and twelve month periods ended December 31, 2024, the Company ceded, $62 of losses under the asbestos and environmental adverse development cover ("A&E ADC"), which was reflected as an increase to the deferred gain.
- Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
|
THREE MONTHS ENDED |
YEAR ENDED |
||||||||||||||||||||
|
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Dec 31 |
||||||||||||
|
2024 |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||
|
Net income (loss): |
|||||||||||||||||||||
|
Commercial Lines |
$ |
708 |
$ |
528 |
$ |
540 |
$ |
573 |
$ |
687 |
$ |
519 |
$ |
458 |
$ |
421 |
$ |
2,349 |
$ |
2,085 |
|
|
Personal Lines |
154 |
31 |
(11) |
34 |
34 |
(12) |
(60) |
(1) |
208 |
(39) |
|||||||||||
|
Property & Casualty Other Operations ("P&C Other Operations") |
(156) |
10 |
11 |
8 |
(154) |
9 |
9 |
6 |
(127) |
(130) |
|||||||||||
|
Property & Casualty ("P&C") |
706 |
569 |
540 |
615 |
567 |
516 |
407 |
426 |
2,430 |
1,916 |
|||||||||||
|
Group Benefits |
126 |
156 |
171 |
108 |
176 |
146 |
121 |
92 |
561 |
535 |
|||||||||||
|
Hartford Funds |
49 |
54 |
44 |
45 |
47 |
41 |
45 |
41 |
192 |
174 |
|||||||||||
|
Sub-total |
881 |
779 |
755 |
768 |
790 |
703 |
573 |
559 |
3,183 |
2,625 |
|||||||||||
|
Corporate |
(28) |
(12) |
(17) |
(15) |
(19) |
(52) |
(26) |
(24) |
(72) |
(121) |
|||||||||||
|
Net income |
853 |
767 |
738 |
753 |
771 |
651 |
547 |
535 |
3,111 |
2,504 |
|||||||||||
|
Preferred stock dividends |
5 |
6 |
5 |
5 |
5 |
6 |
5 |
5 |
21 |
21 |
|||||||||||
|
Net income available to common stockholders |
$ |
848 |
$ |
761 |
$ |
733 |
$ |
748 |
$ |
766 |
$ |
645 |
$ |
542 |
$ |
530 |
$ |
3,090 |
$ |
2,483 |
|
|
Core earnings (loss): |
|||||||||||||||||||||
|
Commercial Lines |
$ |
665 |
$ |
534 |
$ |
551 |
$ |
546 |
$ |
723 |
$ |
542 |
$ |
493 |
$ |
436 |
$ |
2,296 |
$ |
2,194 |
|
|
Personal Lines |
155 |
33 |
(4) |
33 |
36 |
(8) |
(57) |
- |
217 |
(29) |
|||||||||||
|
P&C Other Operations |
(106) |
10 |
14 |
7 |
(1) |
11 |
10 |
8 |
(75) |
28 |
|||||||||||
|
P&C |
714 |
577 |
561 |
586 |
758 |
545 |
446 |
444 |
2,438 |
2,193 |
|||||||||||
|
Group Benefits |
139 |
154 |
178 |
107 |
174 |
170 |
133 |
90 |
578 |
567 |
|||||||||||
|
Hartford Funds |
51 |
47 |
43 |
41 |
39 |
45 |
44 |
37 |
182 |
165 |
|||||||||||
|
Sub-total |
904 |
778 |
782 |
734 |
971 |
760 |
623 |
571 |
3,198 |
2,925 |
|||||||||||
|
Corporate |
(39) |
(26) |
(32) |
(25) |
(36) |
(52) |
(35) |
(35) |
(122) |
(158) |
|||||||||||
|
Core earnings |
$ |
865 |
$ |
752 |
$ |
750 |
$ |
709 |
$ |
935 |
$ |
708 |
$ |
588 |
$ |
536 |
$ |
3,076 |
$ |
2,767 |
3
PROPERTY &
CASUALTY
|
Dec 31 |
Dec 31 |
||
|
Investments |
2024 |
2023 |
|
|
Fixed maturities, available-for-sale ("AFS"), at fair value |
$ |
34,421 |
$ 31,408 |
|
Fixed maturities, at fair value using the fair value option |
254 |
272 |
|
|
Equity securities, at fair value |
212 |
456 |
|
|
Mortgage loans, net |
4,751 |
4,493 |
|
|
Limited partnerships and other alternative investments |
3,974 |
3,770 |
|
|
Other investments |
168 |
162 |
|
|
Short-term investments |
2,075 |
2,127 |
|
|
Total investments |
45,855 |
42,688 |
|
|
Cash |
148 |
106 |
|
|
Restricted cash |
42 |
52 |
|
|
Accrued investment income |
352 |
313 |
|
|
Premiums receivable and agents' balances, net |
5,390 |
4,973 |
|
|
Reinsurance recoverables, net [2] |
6,626 |
6,602 |
|
|
Deferred policy acquisition costs ("DAC") |
1,206 |
1,078 |
|
|
Deferred income taxes |
746 |
681 |
|
|
Goodwill |
778 |
778 |
|
|
Property and equipment, net |
778 |
784 |
|
|
Other intangible assets |
310 |
340 |
|
|
Other assets |
1,411 |
1,130 |
|
|
Total assets |
$ |
63,642 |
$ 59,525 |
|
Unpaid losses and loss adjustment expenses |
$ |
36,404 |
$ 34,044 |
|
Reserves for future policy benefits [2] |
- |
- |
|
|
Other policyholder funds and benefits payable [2] |
- |
- |
|
|
Unearned premiums |
9,368 |
8,561 |
|
|
Debt |
- |
- |
|
|
Other liabilities |
2,796 |
2,754 |
|
|
Total liabilities |
48,568 |
45,359 |
|
|
Common stockholders' equity, excluding AOCI* |
16,206 |
15,322 |
|
|
Preferred stock |
- |
- |
|
|
AOCI, net of tax |
(1,132) |
(1,156) |
|
|
Total stockholders' equity |
15,074 |
14,166 |
|
|
Total liabilities and stockholders' equity |
$ |
63,642 |
$ 59,525 |
|
GROUP BENEFITS |
HARTFORD |
CORPORATE [1] |
|||||||||||
|
FUNDS |
|||||||||||||
|
Dec 31 |
Dec 31 |
Dec 31 |
Dec 31 |
Dec 31 |
Dec 31 |
||||||||
|
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
||||||||
|
$ |
7,959 |
$ |
8,222 |
$ |
- |
$ |
- |
$ |
187 |
$ |
188 |
||
|
54 |
55 |
- |
- |
- |
- |
||||||||
|
46 |
99 |
109 |
121 |
236 |
188 |
||||||||
|
1,645 |
1,594 |
- |
- |
- |
- |
||||||||
|
1,068 |
1,015 |
- |
- |
- |
- |
||||||||
|
6 |
8 |
52 |
21 |
- |
- |
||||||||
|
389 |
382 |
291 |
243 |
1,313 |
1,098 |
||||||||
|
11,167 |
11,375 |
452 |
385 |
1,736 |
1,474 |
||||||||
|
26 |
12 |
9 |
7 |
- |
1 |
||||||||
|
9 |
11 |
- |
- |
- |
- |
||||||||
|
92 |
89 |
1 |
1 |
5 |
1 |
||||||||
|
608 |
634 |
- |
- |
- |
- |
||||||||
|
290 |
260 |
- |
- |
224 |
242 |
||||||||
|
33 |
35 |
- |
- |
- |
- |
||||||||
|
33 |
13 |
2 |
4 |
448 |
475 |
||||||||
|
723 |
723 |
181 |
181 |
229 |
229 |
||||||||
|
62 |
57 |
6 |
8 |
42 |
47 |
||||||||
|
317 |
357 |
10 |
10 |
- |
- |
||||||||
|
142 |
131 |
100 |
88 |
328 |
405 |
||||||||
|
$ |
13,502 |
$ |
13,697 |
$ |
761 |
$ |
684 |
$ |
3,012 |
$ |
2,874 |
||
|
$ |
8,206 |
$ |
8,274 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||
|
290 |
312 |
- |
- |
158 |
172 |
||||||||
|
401 |
408 |
- |
- |
213 |
230 |
||||||||
|
40 |
38 |
- |
- |
- |
- |
||||||||
|
- |
- |
- |
- |
4,366 |
4,362 |
||||||||
|
219 |
220 |
173 |
150 |
1,836 |
1,928 |
||||||||
|
9,156 |
9,252 |
173 |
150 |
6,573 |
6,692 |
||||||||
|
4,706 |
4,752 |
588 |
534 |
(2,501) |
(2,766) |
||||||||
|
- |
- |
- |
- |
334 |
334 |
||||||||
|
(360) |
(307) |
- |
- |
(1,394) |
(1,386) |
||||||||
|
4,346 |
4,445 |
588 |
534 |
(3,561) |
(3,818) |
||||||||
|
$ |
13,502 |
$ |
13,697 |
$ |
761 |
$ |
684 |
$ |
3,012 |
$ |
2,874 |
CONSOLIDATED
|
Dec 31 |
Dec 31 |
|
2024 |
2023 |
- 42,567 $ 39,818
308 327
603 864
6,396 6,087
5,042 4,785
226 191
4,068 3,850
59,210 55,922
- 126
- 63
- 404
5,998 5,607
7,140 7,104
1,239 1,113
1,229 1,173
1,911 1,911
- 896
- 707
1,981 1,754
- 80,917 $ 76,780
- 44,610 $ 42,318
448 484
614 638
9,408 8,599
4,366 4,362
5,024 5,052
64,470 61,453
18,999 17,842
334 334
(2,886) (2,849)
|
16,447 |
15,327 |
|
$ 80,917 |
$ 76,780 |
- Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of approximately $1.3 billion and $1.1 billion as of December 31, 2024 and December 31, 2023, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
- Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold in May 2018.
4
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
|
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
|||||||||
|
DEBT |
2024 |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
||||||||
|
Senior notes |
$ |
3,867 |
$ |
3,866 |
$ |
3,865 |
$ |
3,864 |
$ |
3,863 |
$ |
3,862 |
$ |
3,861 |
$ |
3,859 |
|
Junior subordinated debentures |
499 |
499 |
499 |
499 |
499 |
499 |
499 |
499 |
||||||||
|
Total debt |
$ |
4,366 |
$ |
4,365 |
$ |
4,364 |
$ |
4,363 |
$ |
4,362 |
$ |
4,361 |
$ |
4,360 |
$ |
4,358 |
|
STOCKHOLDERS' EQUITY |
||||||||||||||||
|
Total stockholders' equity |
$ |
16,447 |
$ |
17,008 |
$ |
15,680 |
$ |
15,468 |
$ |
15,327 |
$ |
13,679 |
$ |
14,152 |
$ |
14,340 |
|
Less: Preferred stock |
334 |
334 |
334 |
334 |
334 |
334 |
334 |
334 |
||||||||
|
Less: AOCI |
(2,886) |
(2,005) |
(3,068) |
(2,997) |
(2,849) |
(4,178) |
(3,524) |
(3,254) |
||||||||
|
Common stockholders' equity, excluding AOCI |
$ |
18,999 |
$ |
18,679 |
$ |
18,414 |
$ |
18,131 |
$ |
17,842 |
$ |
17,523 |
$ |
17,342 |
$ |
17,260 |
|
CAPITALIZATION |
||||||||||||||||
|
Total capitalization, including AOCI, net of tax |
$ |
20,813 |
$ |
21,373 |
$ |
20,044 |
$ |
19,831 |
$ |
19,689 |
$ |
18,040 |
$ |
18,512 |
$ |
18,698 |
|
Total capitalization, excluding AOCI, net of tax* |
$ |
23,699 |
$ |
23,378 |
$ |
23,112 |
$ |
22,828 |
$ |
22,538 |
$ |
22,218 |
$ |
22,036 |
$ |
21,952 |
|
DEBT TO CAPITALIZATION RATIOS |
||||||||||||||||
|
Total debt to capitalization, including AOCI |
21.0% |
20.4% |
21.8% |
22.0% |
22.2% |
24.2% |
23.6% |
23.3 % |
||||||||
|
Total debt to capitalization, excluding AOCI* |
18.4% |
18.7% |
18.9% |
19.1% |
19.4% |
19.6% |
19.8% |
19.9 % |
||||||||
|
Total debt and preferred stock to capitalization, including AOCI |
22.6% |
22.0% |
23.4% |
23.7% |
23.9% |
26.0% |
25.4% |
25.1 % |
||||||||
|
Total debt and preferred stock to capitalization, excluding AOCI* |
19.8% |
20.1% |
20.3% |
20.6% |
20.8% |
21.1% |
21.3% |
21.4% |
||||||||
|
Total rating agency adjusted debt to capitalization [1] [2] |
21.8% |
21.3% |
22.7% |
22.9% |
23.7% |
25.7% |
25.0% |
24.7% |
||||||||
|
FIXED CHARGE COVERAGE RATIOS |
||||||||||||||||
|
Total earnings to total fixed charges [3] |
17.9:1 |
17.3:1 |
17.1:1 |
17.1:1 |
14.6:1 |
13.6:1 |
12.8:1 |
12.6:1 |
- The leverage calculation reflects adjustments, as applicable, related to defined benefit plans' unfunded pension liability, lease liabilities and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.3 billion as of December 31, 2024 and 2023.
- 2024 results reflect 50% equity credit for the Company's outstanding junior subordinated debentures and the Company's outstanding preferred stock based on the rating agency methodology. 2023 results reflect 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company's outstanding preferred stock based on the rating agency methodology in place as of December 31, 2023.
- Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.
5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS' EQUITY RECONCILIATION
DECEMBER 31, 2024
|
U.S. statutory net income [1][2] |
P&C |
GROUP BENEFITS |
||
|
$ |
2,112 |
$ |
576 |
|
|
U.S. statutory capital [2][3][4] |
$ |
13,294 |
$ |
2,708 |
|
U.S. GAAP adjustments [2]: |
||||
|
DAC |
1,158 |
33 |
||
|
Non-admitted deferred tax assets [5] |
231 |
154 |
||
|
Deferred taxes [6] |
(225) |
(297) |
||
|
Goodwill |
111 |
723 |
||
|
Other intangible assets |
20 |
317 |
||
|
Non-admitted assets other than deferred taxes |
805 |
108 |
||
|
Asset valuation and interest maintenance reserve |
- |
259 |
||
|
Benefit reserves |
(65) |
417 |
||
|
Unrealized gains (losses) on investments |
(1,390) |
(871) |
||
|
Deferred gain on retroactive reinsurance agreements [7] |
(901) |
- |
||
|
Other, net |
922 |
795 |
||
|
U.S. GAAP stockholders' equity of U.S. insurance entities [2] |
13,960 |
4,346 |
||
|
U.S. GAAP stockholders' equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition |
1,114 |
- |
||
|
of Navigators Group |
||||
|
Total U.S. GAAP stockholders' equity |
$ |
15,074 |
$ |
4,346 |
- Statutory net income is for the year ended December 31, 2024.
- Excludes insurance operations based in the U.K.
- For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital."
- The statutory capital for property and casualty insurance subsidiaries in this table does not include the value of an intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company.
- Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
- Represents the tax timing differences between U.S. GAAP and U.S. STAT.
- Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and A&E ADCs that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.
6
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
AS OF |
||||||||||||||||
|
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
|||||||||
|
Net unrealized gain (loss) on fixed maturities, AFS |
2024 |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
||||||||
|
$ |
(1,539) |
$ |
(671) |
$ |
(1,732) |
$ |
(1,642) |
$ |
(1,482) |
$ |
(2,948) |
$ |
(2,277) |
$ |
(2,008) |
|
|
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL") |
(6) |
(5) |
(7) |
(7) |
(8) |
(9) |
(10) |
(13) |
||||||||
|
Net gains on cash flow hedging instruments |
40 |
33 |
30 |
21 |
21 |
27 |
31 |
48 |
||||||||
|
Total net unrealized gain (loss) |
(1,505) |
(643) |
(1,709) |
(1,628) |
(1,469) |
(2,930) |
$ |
(2,256) |
$ |
(1,973) |
||||||
|
Foreign currency translation adjustments |
29 |
41 |
35 |
36 |
37 |
35 |
36 |
33 |
||||||||
|
Liability for future policy benefits adjustments |
33 |
19 |
35 |
30 |
25 |
47 |
32 |
27 |
||||||||
|
Pension and other postretirement plan adjustments |
(1,443) |
(1,422) |
(1,429) |
(1,435) |
(1,442) |
(1,330) |
(1,336) |
(1,341) |
||||||||
|
Total AOCI |
$ |
(2,886) |
$ |
(2,005) |
$ |
(3,068) |
$ |
(2,997) |
$ |
(2,849) |
$ |
(4,178) |
$ |
(3,524) |
$ |
(3,254) |
7
Attachments
Disclaimer
Hartford Financial Services Group Inc. published this content on January 30, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 30, 2025 at 21:20:23.240.
The post Fourth Quarter 2024 Investor Financial Supplement appeared first on Insurance News | InsuranceNewsNet.
