Hartford net income rises 23% to $1.3 billion in third quarter; core earnings fall 6%

The Hartford (NYSE: HIG), the insurance and employee benefits company, reported third-quarter net income available to common stockholders of $1.3 billion, or $4.82 per diluted share, up 23% from a year earlier, while core earnings fell 6%, according to its earnings release of October 26.

What happened

Net income available to common stockholders was $1,317 million, against $1,074 million in the third quarter of 2025. Core earnings, a non-GAAP measure, were $956 million, or $3.50 per diluted share, against $1,022 million, or $3.59. Income from continuing operations, net of tax, was $1,262 million, up 24%.

The Hartford said all amounts and percentages in the release are approximate unless otherwise noted. Property and casualty written premiums rose 4% from a year earlier, driven by 6% growth in Business Insurance. Fully insured ongoing premiums in Employee Benefits grew 4%.

Business Insurance had a combined ratio of 91.3 and an underlying combined ratio of 90.1. Its loss and loss adjustment expense ratio was 61.1, up from 57.3, including 1.7 points of higher current accident year catastrophe losses. Personal Insurance had a combined ratio of 93.2 and an underlying combined ratio of 87.1; its loss ratio rose to 67.2 from 62.9. A combined ratio below 100 indicates an underwriting profit.

In Employee Benefits, the net income margin was 7.0% and the core earnings margin was 6.4%. Costello said the underlying combined ratio in Personal Insurance improved 2.9 points, while growth was affected by a competitive market.

Book value per diluted share was $68.31, up 7% from $63.86. Excluding accumulated other comprehensive income, a non-GAAP measure, it was $82.47, up 16% from $70.92. Net income return on equity for the trailing 12 months was 25.0%, and core earnings return on equity was 17.9%.

Capital and leadership

The Hartford returned $638 million to stockholders in the quarter, including $475 million of share repurchases and $163 million of dividends. It raised its quarterly common dividend by 12% to $0.67 per share, payable January 5, 2027, to shareholders of record at the close of business on December 1, 2026.

Christopher Swift, chairman and chief executive, who said he has served the company for nearly 13 years, first as chief financial officer and then as CEO, said that Mo Tooker will succeed him as CEO on March 1, as announced last month. Swift will become executive chair, with plans to step down from that role in the second half of 2027. Beth Costello, chief financial officer, said investment income was "excellent," supported by higher income from limited partnerships and other alternative investments and a higher level of invested assets.

What to watch

The next dividend is payable on January 5, 2027, to holders of record on December 1, 2026. The change of chief executive takes effect on March 1.