Hartford Q2 core EPS beats on business insurance premium growth

Overview

• US property casualty insurer's Q2 core EPS and adjusted net income beat analyst expectations

• Net income for Q2 rose 31% yr/yr, driven by higher premiums and investment income

• Company authorized new $4.2 bln share repurchase program, up 27% from prior authorization

Outlook

• The Hartford authorized a new $4.2 bln share repurchase program effective Aug. 2026 through 2028

• Company says competitive market environment continues to pressure new business growth in Personal Insurance

• The Hartford says it is investing in technology, data, AI and risk insights to strengthen its position

Result Drivers

• BUSINESS INSURANCE PREMIUM GROWTH - 5% written premium growth in Business Insurance contributed to higher earned premiums

• INVESTMENT INCOME - Higher net investment income, especially from limited partnerships and alternative investments, supported results

• PERSONAL INSURANCE PRICING - Improved underlying loss ratios in Personal Insurance due to earned pricing increases outpacing loss cost trends

Company press release: ID:nBw3R68P9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance brokers peer group is "buy"

• Wall Street's median 12-month price target for Hartford Insurance Group Inc is $146.00, about 3.7% above its July 22 closing price of $140.84

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - Insurer Chubb posts higher second-quarter profit on strong underwriting business

• July 20 - W. R. Berkley's Q2 EPS up, gross premiums rise 4%

• July 22 - RLI Q2 net earnings rise as net investment income increases

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)