The Hartford Insurance Group (NYSE:HIG) reported third-quarter 2026 core earnings of $956 million, or $3.50 per diluted share, as strength in its Business Insurance and investment operations offset higher workers’ compensation frequency, elevated disability claims and competitive conditions in certain markets.
Core earnings return on equity was 17.9% for the trailing 12 months, while book value per share excluding accumulated other comprehensive income rose 12% from year-end to $82.47, Chief Financial Officer Beth Costello said. The company also increased its quarterly common dividend 12% to $0.67 per share, payable Jan. 5, 2027, and repurchased $475 million of stock during the quarter.
Chairman and Chief Executive Officer Chris Swift said the quarter reflected “disciplined execution across the enterprise.” He also addressed the company’s planned leadership succession, saying he would remain fully engaged through the transition to President Mo Tooker, whom the company has identified as its next leader.
Business Insurance Delivers Growth, While Workers’ Compensation Weighs on Margins
Business Insurance generated core earnings of $731 million, with written premium rising 6% and an underlying combined ratio of 90.1. Small business written premium increased 7%, and its underlying combined ratio improved 4.6 points from the prior year to 85.2, aided by lower non-catastrophe property losses and a lower expense ratio.
Swift said 78% of small-business submissions are now bindable straight through, an all-time high for the company. He added that Keynova ranked The Hartford first in small-business digital experience for the eighth consecutive year.
Middle and large business written premium rose 3%, including 5% growth in middle market, but the underlying combined ratio increased to 99.5. Costello said higher non-catastrophe property losses and workers’ compensation loss ratios each contributed slightly less than four points to the year-over-year change in the segment’s ratio.
The non-catastrophe property losses included several large fire and non-weather water losses. Costello characterized those losses as normal volatility, noting that middle and large business had seen more quarters of favorable than unfavorable non-catastrophe property experience over recent periods.
Workers’ compensation results reflected a broad-based increase in claim frequency. Tooker said the trend was not confined to a particular geography, industry, risk size or injury type. Management cited rising health-care costs, the expiration of Affordable Care Act subsidies and affordability pressures on workers as potential factors.
The company said it is responding through underwriting actions, segmentation and planned pricing filings for 2027. Tooker said the company believes small-business workers’ compensation frequency remains within existing loss picks, while middle and large business offers more flexibility to adjust risk selection and book mix.
Global Specialty posted 7% written premium growth and an 86.1 underlying combined ratio. Across Business Insurance, renewal written pricing excluding workers’ compensation declined 40 basis points to 5.3%, while total renewal written pricing declined 40 basis points to 4%.
Personal Insurance Margins Improve Despite Competitive Auto Market
Personal Insurance recorded $105 million in core earnings and an underlying combined ratio of 87.1, an improvement of 2.9 points from a year earlier. Written premium declined 4%, as a 9% reduction in auto premium more than offset 6% growth in homeowners insurance.
Costello said earned pricing continued to exceed loss-cost trends in both auto and homeowners. However, management said competition for new auto business remained intense. Head of Personal Lines Melinda Thompson said retention has improved as lower rate increases and customer-experience initiatives take effect, while the agency channel continues to support growth.
Homeowners new business grew 20%, which Swift attributed to the rollout of a new agency-channel product. The company said it would remain disciplined rather than attempt to manufacture a near-term growth crossover in the competitive auto market.
Employee Benefits Acquisition Adds Premium but Creates Near-Term Dilution
Employee Benefits core earnings totaled $120 million, producing a 6.4% core earnings margin within the company’s long-term 6% to 7% target range. Fully insured ongoing premium increased 4%, supported by sales growth, higher exposure in existing accounts and persistency above 90%.
Group life and disability loss ratios increased from unusually favorable prior-year levels. The group life loss ratio rose 3.6 points to 77.8, while the group disability loss ratio increased 5.7 points to 76.3. Head of Employee Benefits Mike Fish said disability trends included higher behavioral-health claims, claims among higher wage earners and elevated paid family leave utilization.
The Hartford completed its acquisition of Equitable’s employee benefits business earlier in October. The acquired operation brings approximately $500 million of annual premium, expands the company into dental and vision products, and strengthens its position with small and midsize employers.
Costello said the business is expected to have lower loss ratios than The Hartford’s existing Employee Benefits book but a higher expense ratio, partly due to approximately $30 million of annual intangible asset amortization. Excluding amortization, the acquisition is expected to be modestly dilutive to core earnings in 2027 before improving as integration and scale progress.
Investment Income, Capital Management and Hartford Funds Sale
Net investment income rose 13% from the prior-year quarter to $850 million, benefiting from higher income from limited partnerships and alternative investments as well as a larger invested asset base. Excluding limited partnerships, the annualized portfolio yield was 4.6% before tax. Limited partnership returns were particularly supported by infrastructure and energy-transition funds.
The company ended the quarter with $1.5 billion of holding-company resources and $4.37 billion remaining under share repurchase authorizations. Costello also said the sale of Hartford Funds was progressing and could close as early as Dec. 1, subject to regulatory and fund approvals. After closing, distributions from Hartford Funds are expected to occur quarterly and be recorded as realized gains within net income.
About The Hartford Insurance Group (NYSE:HIG)
The Hartford Insurance Group, Inc, commonly known as The Hartford, is a financial services and insurance company headquartered in Hartford, Connecticut. Founded in 1810, the company provides property and casualty insurance, employee benefits, and related services to businesses, individuals, and organizations primarily in the United States.
The Hartford’s commercial insurance operations offer coverage for businesses of various sizes, including commercial auto, workers’ compensation, property, general liability, and specialty insurance.
