The Hartford Announces Record Third Quarter Earnings

HARTFORD, Conn.--( BUSINESS WIRE)--The Hartford (NYSE: HIG) today announced financial results for the third quarter ended Sept. 30, 2025.

“The Hartford delivered outstanding third quarter results, generating record core earnings of $1.1 billion and a trailing 12-month core earnings ROE of 18.4 percent,” said The Hartford’s Chairman and CEO Christopher Swift. “These results highlight the strength of The Hartford’s franchise, effectiveness of our strategy and ability to deliver differentiated solutions for customers.”

The Hartford's Chief Financial Officer Beth Costello said, “Business Insurance delivered excellent top-line growth of 9 percent, with an underlying combined ratio of 89.4. Excluding workers’ compensation, pricing was 7.3 percent, and above the overall loss trend. Personal Insurance achieved 3.7 points of underlying combined ratio improvement, while Employee Benefits delivered an outstanding core earnings margin of 8.3 percent. Investment performance was strong, supported by a diversified portfolio and attractive new money yields."

Swift continued, “Building on our consistent track record of annual dividend increases, we are pleased to announce a 15 percent increase in the common quarterly dividend. As we enter the final quarter of 2025, our financial strength, disciplined execution, and investments to advance innovation continue to position The Hartford to deliver strong results. In a dynamic market, these advantages reinforce our competitive standing and ability to generate superior returns for shareholders."

CONSOLIDATED RESULTS:

Three Months Ended

($ in millions except per share data)

Sep 30

2025

Sep 30

2024

Change

Net income available to common stockholders

$1,074

$761

41%

Net income available to common stockholders per diluted share 1

$3.77

$2.56

47%

Core earnings

$1,077

$752

43%

Core earnings per diluted share

$3.78

$2.53

49%

Book value per diluted share

$63.86

$56.39

13%

Book value per diluted share (ex. accumulated other comprehensive income (AOCI)) 2

$70.92

$63.17

12%

Net income available to common stockholders' return on equity (ROE) 3, last 12-months

20.3%

20.0%

0.3

Core earnings ROE 3, last 12-months

18.4%

17.4%

1.0

Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends

Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures

Return on equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders’ equity including AOCI; for core earnings ROE, the denominator is common stockholders’ equity excluding AOCI

Third quarter 2025 net income available to common stockholders of $1.1 billion, or $3.77 per diluted share, improved from $761 million in third quarter 2024, primarily driven by lower P&C CAY CAT losses, higher net investment income, earned premium growth across P&C, more net favorable prior accident year development (PYD), and improvement in the Personal Insurance underlying loss and loss adjustment expense ratio*.

Third quarter 2025 core earnings of $1.1 billion, or $3.78 per diluted share, compared with $752 million of core earnings in third quarter 2024. Contributing to the results were:

Sept. 30, 2025, book value per diluted share of $63.86 increased 15.9%, from $55.09 at Dec. 31, 2024, principally due to net income in excess of stockholder dividends through Sept. 30, 2025, partially offset by the dilutive effect of share repurchases.

Book value per diluted share (excluding AOCI) of $70.92 as of Sept. 30, 2025, increased 9.2%, from $64.95 at Dec. 31, 2024, as the impact from net income in excess of stockholder dividends through Sept. 30, 2025, was partially offset by the dilutive effect of share repurchases.

Net income available to common stockholders' ROE (net income ROE) for the trailing 12-month period ending Sept. 30, 2025 was 20.3%, increasing 0.3 points from Sept. 30, 2024.

Core earnings ROE for the trailing 12-month period ending Sept. 30, 2025, was 18.4%, increasing 1.0 point from Sept. 30, 2024, due to higher average common stockholder's equity excluding AOCI, partially offset by higher trailing 12-month core earnings.

BUSINESS RESULTS:

Business Insurance

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net income

$710

$528

34%

Core earnings

$723

$534

35%

Written premiums

$3,573

$3,275

Underwriting gain 1

$397

$253

57%

Underlying underwriting gain 1

$376

$372

Losses and loss adjustment expense ratio

57.3

61.0

(3.7)

Expenses

31.1

30.9

0.2

Policyholder dividends

0.3

—

Combined ratio

88.8

92.2

(3.4)

Impact of catastrophes and PYD on combined ratio

0.6

(3.7)

4.3

Underlying combined ratio

89.4

88.6

0.8

Losses and loss adjustment expense ratio

Underlying loss and loss adjustment expense ratio

57.9

57.3

0.6

Current accident year catastrophes

1.1

4.8

(3.7)

Favorable prior accident year development

(1.7)

(1.1)

(0.6)

Total Losses and loss adjustment expense ratio

57.3

61.0

(3.7)

Third quarter 2025 net income of $710 million compared with net income of $528 million in third quarter 2024, principally due to lower CAY CAT losses, higher net investment income, the impact of earned premium growth, and greater net favorable PYD, partially offset by a higher underlying loss and loss adjustment expense ratio. PYD includes an $8 million, before-tax, benefit due to the amortization of the deferred gain related to the Navigators ADC, compared with a $26 million before tax benefit in 2024.

Business Insurance core earnings of $723 million in third quarter 2025 compared with $534 million in third quarter 2024. Contributing to the results were:

Combined ratio of 88.8 compared with 92.2 in third quarter 2024, primarily due to a 3.7 point decrease in the loss and loss adjustment expense ratio, including 3.7 points of lower CATs and 0.6 points of more favorable PYD. Underlying combined ratio of 89.4 compared with 88.6 in third quarter 2024, primarily due to a 0.6 point increase in the underlying loss and loss adjustment expense ratio:

Third quarter 2025 written premiums of $3.6 billion were up 9% from third quarter 2024, with increases across the segment. Small Business and Middle & Large Business both delivered double-digit increases, driven in part by new business growth of 11% and 20%, respectively, and supported by strong renewal written pricing.

Personal Insurance

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net income

$139

$31

Core earnings

$143

$33

Written premiums

$987

$970

Underwriting gain (loss)

$107

$(22)

Underlying underwriting gain

$95

$56

70%

Losses and loss adjustment expense ratio

62.9

76.8

(13.9)

Expenses

25.8

25.6

0.2

Combined ratio

88.7

102.5

(13.8)

Impact of catastrophes and PYD on combined ratio

1.2

(8.8)

10.0

Underlying combined ratio

90.0

93.7

(3.7)

Losses and loss adjustment expense ratio

Underlying loss and loss adjustment expense ratio

64.2

68.0

(3.8)

Current accident year catastrophes

3.3

10.4

(7.1)

Favorable prior accident year development

(4.5)

(1.6)

(2.9)

Total Losses and loss adjustment expense ratio

62.9

76.8

(13.9)

Net income of $139 million in third quarter 2025 compared with net income of $31 million in third quarter 2024, primarily due to lower CAY CAT losses, an improvement in the underlying loss and loss adjustment expense ratio, including the impact of higher earned premium, and more favorable PYD.

Personal Insurance core earnings of $143 million compared with core earnings of $33 million in third quarter 2024. Contributing to the results were:

Combined ratio of 88.7 in third quarter 2025 compared with 102.5 in third quarter 2024, primarily due to a 13.9 point improvement in the loss and loss adjustment expense ratio, including 7.1 points of lower CAY CAT losses, a 3.8 point improvement in the underlying loss and loss adjustment expense ratio, and more favorable PYD of 2.9 points, partially offset by a higher expense ratio. Underlying combined ratio of 90.0 improved 3.7 points from 93.7 in third quarter 2024, primarily due to improvement in the underlying loss and loss adjustment expense ratio in automobile and homeowners, partially offset by a 0.2 point increase in the expense ratio.

Written premiums in third quarter 2025 were $987 million compared with $970 million in third quarter 2024, with:

Employee Benefits

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net income

$144

$156

(8%)

Core earnings

$149

$154

(3%)

Fully insured ongoing premiums

$1,603

$1,600

Loss ratio

70.1%

70.2%

(0.1)

Expense ratio

26.7%

25.3%

1.4

Net income margin

8.1%

8.8%

(0.7)

Core earnings margin

8.3%

8.7%

(0.4)

Net income of $144 million in third quarter 2025 compared with $156 million in third quarter 2024, primarily driven by an increase in the expense ratio, an increase in the group disability loss ratio, and greater net realized losses, partially offset by improvement in the group life loss ratio and higher net investment income. Core earnings of $149 million, compared with $154 million in third quarter 2024, with the change primarily reflecting the same drivers as net income, excluding the impact of net realized losses.

Fully insured ongoing premiums and fully insured ongoing sales were flat compared with third quarter 2024.

Loss ratio of 70.1 was relatively flat to 70.2 in third quarter 2024.

Expense ratio of 26.7 increased 1.4 points compared with 25.3 in third quarter 2024, primarily driven by higher staffing costs, including increased incentive compensation and benefits, increased investments in technology, and a higher commission ratio.

Net investment income of $136 million, before tax, compared with $119 million in third quarter 2024.

Hartford Funds

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net income

$57

$54

Core earnings

$53

$47

13%

Daily average Hartford Funds Assets Under Management (AUM)

$148,269

$137,888

Mutual Funds and exchange-traded funds (ETF) net flows

$(25)

$(425)

94%

Total Hartford Funds AUM

$152,338

$142,439

Third quarter 2025 net income of $57 million compared with $54 million in third quarter 2024, primarily due to an increase in fee income net of operating costs and other expenses driven by higher daily average Hartford Funds AUM, partially offset by lower net realized gains. Core earnings of $53 million compared with $47 million in third quarter 2024, with the change primarily reflecting the same drivers as net income, excluding the impact of net realized gains.

Daily average AUM of $148 billion in third quarter 2025 increased 8% from third quarter 2024.

Mutual fund and ETF net outflows totaled $25 million in third quarter 2025, compared with net outflows of $425 million in third quarter 2024.

Corporate

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net income (loss)

$18

$(12)

Net income (loss) available to common stockholders

$12

$(18)

Core loss

$(5)

$(26)

81%

Net investment income, before tax

$14

$17

(18%)

Interest expense and preferred dividends, before tax

$56

$55

Net income available to common stockholders of $12 million in third quarter 2025 compared with a net loss available to common stockholders of $18 million in third quarter 2024, primarily driven by a higher net tax benefit, as well as greater net realized gains. Third quarter 2025 core loss of $5 million compared with a third quarter 2024 core loss of $26 million, with the change primarily reflecting a higher net tax benefit in the current quarter.

INVESTMENT INCOME AND PORTFOLIO DATA:

Three Months Ended

($ in millions, unless otherwise noted)

Sep 30

2025

Sep 30

2024

Change

Net investment income, before tax

$759

$659

15%

Annualized investment yield, before tax

4.8%

4.4%

0.4

Annualized investment yield, before tax, excluding LPs 1

4.6%

4.5%

0.1

Annualized LP yield, before tax

6.7%

3.0%

3.7

Annualized investment yield, after tax

3.9%

3.5%

0.4

Third quarter 2025 consolidated net investment income of $759 million compared with $659 million in third quarter 2024, primarily driven by increased income from LPs, a higher level of invested assets, and reinvesting at higher interest rates, partially offset by a lower yield on variable-rate securities.

Third quarter 2025 net investment income, excluding LPs*, of $668 million, before tax, compared to $622 million in third quarter 2024, a 7% increase, driven by a higher level of invested assets combined with an increase in annualized yield.

Third quarter 2025 included $91 million, before tax, of LP income as compared with $37 million in third quarter 2024, driven by higher returns on private equity and other funds. Annualized LP yield, before tax, of 6.7% compared with 3.0% in third quarter 2024.

Net realized losses of $12 million, before tax, in third quarter 2025 were relatively flat to $13 million, before tax, in third quarter 2024.

Total invested assets of $62.6 billion increased $3.4 billion from Dec. 31, 2024, primarily due to a net increase in book value and higher valuations on fixed maturities, driven by lower interest rates and tighter credit spreads.

CONFERENCE CALL

The Hartford will discuss its third quarter 2025 financial results on a webcast at 9:00 a.m. EDT on Tuesday, Oct. 28, 2025. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for Sept. 30, 2025, and the third quarter 2025 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

About The Hartford

The Hartford is a leader in property and casualty insurance, employee benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at https://www.thehartford.com.

The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Connecticut. For additional details, please read The Hartford’s legal notice.

HIG-F

From time to time, The Hartford may use its website and/or social media channels to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at https://ir.thehartford.com.

THE HARTFORD INSURANCE GROUP, INC.

CONSOLIDATING INCOME STATEMENTS

Three Months Ended September 30, 2025

($ in millions)

Business Insurance

Personal Insurance

P&C

Other Ops

Employee Benefits

Hartford Funds

Corporate

Consolidated

Earned premiums

3,540

950

—

1,603

—

6,093

Fee income

—

277

361

Net investment income

519

136

759

Net realized gains (losses)

(26

)

—

)

(12

)

Other revenue

—

Total revenues

4,044

1,046

1,786

286

7,232

Benefits, losses, and loss adjustment expenses

2,030

598

—

1,163

—

3,793

Amortization of DAC

559

—

639

Insurance operating costs and other expenses

558

201

425

214

1,414

Interest expense

—

Amortization of other intangible assets

—

Total benefits, losses and expenses

3,154

872

1,606

214

5,914

Income (loss) before income taxes

890

174

180

(14

)

1,318

Income tax expense (benefit)

180

(32

)

238

Net income

710

139

144

1,080

Preferred stock dividends

—

Net income available to common stockholders

710

139

144

1,074

Adjustments to reconcile net income available to common stockholders to core earnings (loss)

Net realized losses (gains), excluded from core earnings, before tax

—

)

(21

)

Integration and other non-recurring M&A costs, before tax

—

Change in deferred gain on retroactive reinsurance, before tax

)

—

)

Income tax expense (benefit)

)

Core earnings (loss)

723

143

149

)

1,077

THE HARTFORD INSURANCE GROUP, INC.

CONSOLIDATING INCOME STATEMENTS

Three Months Ended September 30, 2024

($ in millions)

Business Insurance

Personal Insurance

P&C

Other Ops

Employee Benefits

Hartford Funds

Corporate

Consolidated

Earned premiums

3,249

885

—

1,600

—

5,734

Fee income

—

263

347

Net investment income

442

119

659

Net realized gains (losses)

(32

)

—

(13

)

Other revenue

—

Total revenues

3,671

971

1,774

275

6,751

Benefits, losses, and loss adjustment expenses

1,981

680

—

1,161

—

3,823

Amortization of DAC

512

—

585

Insurance operating costs and other expenses

509

186

401

208

1,323

Restructuring and other costs

—

Interest expense

—

Amortization of other intangible assets

—

Total benefits, losses and expenses

3,009

932

1,580

208

5,799

Income (loss) before income taxes

662

194

(21

)

952

Income tax expense (benefit)

134

)

185

Net income (loss)

528

156

(12

)

767

Preferred stock dividends

—

Net income (loss) available to common stockholders

528

156

(18

)

761

Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss)

Net realized losses (gains), excluded from core earnings, before tax

—

)

(13

)

Restructuring and other costs

—

Integration and other non-recurring M&A costs, before tax

—

Change in deferred gain on retroactive reinsurance, before tax

(26

)

—

(26

)

Income tax expense (benefit)

)

—

)

—

Core earnings (loss)

534

154

(26

)

752

The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as "NM" or not meaningful.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Hartford uses non-GAAP financial measures in this news release to assist investors in analyzing the company's operating performance for the periods presented herein. Because The Hartford's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford's non-GAAP financial measures to those of other companies. Definitions and calculations of other financial measures used in this news release can be found below and in The Hartford's Investor Financial Supplement for third quarter 2025, which is available on The Hartford's website, https://ir.thehartford.com.

Annualized investment yield, excluding limited partnerships and other alternative investments - This non-GAAP measure is calculated as (a) the annualized net investment income, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, as applicable, excluding derivatives book value and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable U.S GAAP measure. A reconciliation of annualized investment yield to annualized investment yield excluding limited partnerships and other alternative investments for the quarterly periods ended September 30, 2025 and 2024 is provided in the table below.

Three Months Ended

Sept 30

2025

Sept 30

2024

Annualized investment yield

4.8

4.4

Adjustment for income from limited partnerships and other alternative investments

(0.2

0.1

Annualized investment yield excluding limited partnerships and other alternative investments

4.6

4.5

Net investment income, excluding limited partnerships and other alternative investments-This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Employee Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Net investment income is the most directly comparable U.S. GAAP measure. A reconciliation of net investment income to net investment income excluding limited partnerships and other alternative investments for the quarterly periods ended September 30, 2025 and 2024 is provided in the table below.

Three Months Ended

Sept 30

2025

Sept 30

2024

Total net investment income

759

659

Adjustment for income from limited partnerships and other alternative investments

(91

)

(37

)

Net investment income excluding limited partnerships and other alternative investments

668

622

Book value per diluted share (excluding AOCI) - This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. A reconciliation of book value per diluted share to book value per diluted share (excluding AOCI) is provided in the table below.

As of

Sept 30

2025

Dec 31

2024

Change

Book value per diluted share

$63.86

$55.09

15.9%

Per diluted share impact of AOCI

$7.06

$9.86

(28.4%)

Book value per diluted share (excluding AOCI)

$70.92

$64.95

9.2%

As of

Sept 30

2025

Sept 30

2024

Change

Book value per diluted share

$63.86

$56.39

13.2%

Per diluted share impact of AOCI

$7.06

$6.78

4.1%

Book value per diluted share (excluding AOCI)

$70.92

$63.17

12.3%

Core earnings - The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.

Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance.

A reconciliation of net income (loss) to core earnings (loss) for the quarterly periods ended September 30, 2025 and 2024, for individual reporting segments can be found in this news release under the heading "The Hartford Insurance Group, Inc. Consolidating Income Statements."

Core earnings margin - The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Employee Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Employee Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Employee Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin for the quarterly periods ended September 30, 2025 and 2024, is set forth below.

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Net income margin

8.1%

8.8%

(0.7)

Adjustments to reconcile net income margin to core earnings margin:

Net realized losses (gains), before tax

0.4%

(0.1%)

0.5

Income tax benefit on items excluded from core earnings

(0.2)%

—%

(0.2)

Core earnings margin

8.3%

8.7%

(0.4)

Core earnings per diluted share - This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the U.S. GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable U.S. GAAP measure. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted common share to core earnings per diluted share for the quarterly periods ended September 30, 2025 and 2024 is provided in the table below.

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Per Share Data

Diluted earnings per common share:

Net income available to common stockholders per share 1

$3.77

$2.56

47%

Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:

Net realized losses, excluded from core earnings, before tax

0.04

—%

Integration and other non-recurring M&A costs, before tax

0.01

—%

Change in deferred gain on retroactive reinsurance, before tax

(0.03)

(0.09)

67%

Income tax expense (benefit) on items excluded from core earnings

(0.01)

0.01

Core earnings per diluted share

$3.78

$2.53

49%

[1] Net income available to common stockholders includes dilutive potential common shares

Core Earnings Return on Equity - The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A quantitative reconciliation of net income available to common stockholders ROE to core earnings ROE is not calculable on a forward-looking basis because it is not possible to provide a reliable forecast of realized gains and losses, which typically vary substantially from period to period.

A reconciliation of consolidated net income available to common stockholders ROE to consolidated core earnings ROE is set forth below.

Three Months Ended

Sept 30

2025

Sept 30

2024

Net income available to common stockholders ROE

20.3%

20.0%

Adjustments to reconcile net income available to common stockholders ROE to core earnings ROE:

Net realized losses excluded from core earnings, before tax

0.5%

0.4%

Integration and other non-recurring M&A costs, before tax

—%

0.1%

Change in deferred gain on retroactive reinsurance, before tax

(0.3)%

0.7%

Income tax benefit on items not included in core earnings

—%

(0.2%)

Impact of AOCI, excluded from denominator of core earnings ROE

(2.1)%

(3.6%)

Core earnings ROE

18.4%

17.4%

Underlying combined ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable U.S. GAAP measure. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for individual reporting segments can be found in this news release under the heading "Business Results" for "Business Insurance" and "Personal Insurance". A reconciliation of the combined ratio to underlying combined ratio for lines of business within the Company's P&C reporting segments is set forth below.

SMALL BUSINESS

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Combined ratio

87.9

91.6

(3.7

)

Adjustment to reconcile combined ratio to underlying combined ratio:

Current accident year catastrophes

(1.3

)

(6.4

)

5.1

Prior accident year development

3.2

4.1

(0.9

)

Underlying combined ratio

89.8

89.3

0.5

MIDDLE & LARGE BUSINESS

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Combined ratio

90.8

97.0

(6.2

)

Adjustment to reconcile combined ratio to underlying combined ratio:

Current accident year catastrophes

—

(3.5

)

3.5

Prior accident year development

0.6

(3.3

)

3.9

Underlying combined ratio

91.4

90.2

1.2

GLOBAL SPECIALTY

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Combined ratio

86.9

87.4

(0.5

)

Adjustment to reconcile combined ratio to underlying combined ratio:

Current accident year catastrophes

(2.2

)

(3.8

)

1.6

Prior accident year development

1.1

1.7

(0.6

)

Underlying combined ratio

85.8

85.3

0.5

PERSONAL AUTOMOBILE

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Combined ratio

92.5

105.7

(13.2

)

Adjustment to reconcile combined ratio to underlying combined ratio:

Current accident year catastrophes

(0.6

)

(5.8

)

5.2

Prior accident year development

6.0

1.6

4.4

Underlying combined ratio

97.9

101.5

(3.6

)

HOMEOWNERS

Three Months Ended

Sept 30

2025

Sept 30

2024

Change

Combined ratio

81.2

94.7

(13.5

)

Adjustment to reconcile combined ratio to underlying combined ratio:

Current accident year catastrophes

(8.3

)

(21.0

)

12.7

Prior accident year development

1.6

1.7

(0.1

)

Underlying combined ratio

74.4

75.4

(1.0

)

Underwriting gain (loss) -This non-GAAP financial measure is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable U.S. GAAP measure. The Hartford's management evaluates profitability of the Business and Personal Insurance segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. A reconciliation of net income (loss) to underwriting gain (loss) for the quarterly periods ended September 30, 2025 and 2024, is set forth below.

Underlying underwriting gain (loss) - This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable U.S GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of net income (loss) to underlying underwriting gain for individual reporting segments for the quarterly periods ended September 30, 2025 and 2024, is set forth below.

BUSINESS INSURANCE

Three Months Ended

Sept 30

2025

Sept 30

2024

Net income

710

528

Adjustments to reconcile net income to underwriting gain:

Net investment income

(519

)

(442

)

Net realized losses

Other expense

—

Income tax expense

180

134

Underwriting gain

397

253

Adjustments to reconcile underwriting gain to underlying underwriting gain:

Current accident year catastrophes

155

Prior accident year development

(60

)

(36

)

Underlying underwriting gain

376

372

PERSONAL INSURANCE

Three Months Ended

Sept 30

2025

Sept 30

2024

Net income

139

Adjustments to reconcile net income (loss) to underwriting loss:

Net investment income

(67

)

(58

)

Net realized losses

Net servicing and other (income) expense

)

Income tax expense

Underwriting gain (loss)

107

(22

)

Adjustments to reconcile underwriting gain (loss) to underlying underwriting gain:

Current accident year catastrophes

Prior accident year development

(43

)

(14

)

Underlying underwriting gain

Underlying loss and loss adjustment expense ratio - This non-GAAP financial measure is the cost of non-catastrophe loss and loss adjustment expenses incurred in the current accident year divided by earned premiums. The loss and loss adjustment expense ratio is the most directly comparable U.S. GAAP measure. Management believes that the underlying loss and loss adjustment expense ratio is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development ("PYD"). A reconciliation of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio for the quarterly periods ended September 30, 2025 and 2024, is set forth below.

BUSINESS INSURANCE

Three Months Ended

Sep 30

2025

Sep 30

2024

Change

Loss and loss adjustment expense ratio

57.3

61.0

(3.7

)

Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:

Current accident year catastrophes and prior accident year development

0.6

(3.7

)

4.3

Underlying loss and loss adjustment expense ratio

57.9

57.3

0.6

PERSONAL INSURANCE

Three Months Ended

Sep 30

2025

Sep 30

2024

Change

Loss and loss adjustment expense ratio

62.9

76.8

(13.9

)

Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:

Current accident year catastrophes and prior accident year development

1.2

(8.8

)

10.0

Underlying loss and loss adjustment expense ratio

64.2

68.0

(3.8

)

PERSONAL INSURANCE - AUTOMOBILE

Three Months Ended

Sep 30

2025

Sep 30

2024

Change

Loss and loss adjustment expense ratio

67.1

81.0

(13.9

)

Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:

Current accident year catastrophes and prior accident year development

5.3

(4.3

)

9.6

Underlying loss and loss adjustment expense ratio

72.3

76.7

(4.4

)

PERSONAL INSURANCE - HOMEOWNERS

Three Months Ended

Sep 30

2025

Sep 30

2024

Change

Loss and loss adjustment expense ratio

54.5

67.3

(12.8

)

Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:

Current accident year catastrophes and prior accident year development

(6.7

)

(19.3

)

12.6

Underlying loss and loss adjustment expense ratio

47.8

48.1

(0.3

)

SAFE HARBOR STATEMENT

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects,” and similar references to future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Insurance Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; or in The Hartford’s 2024 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission.

Financial Strength, Credit and Counterparty Risks: risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments; capital requirements which are subject to many factors, including many that are outside the Company’s control, such as National Association of Insurance Commissioners ("NAIC") risk based capital formulas, rating agency capital models, Funds at Lloyd's and Solvency Capital Requirement, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; losses due to nonperformance or defaults by others, including credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; state and international regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;

Risks Relating to Estimates, Assumptions and Valuations: risks associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance and catastrophe risk management; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the Company’s fair value estimates for its investments and the evaluation of intent-to-sell impairments and allowance for credit losses on available-for-sale securities and mortgage loans; the potential for impairments of our goodwill;

Strategic and Operational Risks: the Company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber breach or other information security incident, technology failure or other unanticipated event; the potential for difficulties arising from outsourcing and similar third-party relationships; the risks, challenges and uncertainties associated with capital management plans, expense reduction initiatives and other actions; risks associated with acquisitions and divestitures, including the challenges of integrating acquired companies or businesses, which may result in our inability to achieve the anticipated benefits and synergies and may result in unintended consequences; difficulty in attracting and retaining talented and qualified personnel, including key employees, such as executives, managers and employees with strong technological, analytical and other specialized skills; the Company’s ability to protect its intellectual property and defend against claims of infringement;

Regulatory and Legal Risks: the cost and other potential effects of increased federal, state and international regulatory and legislative developments, including those that could adversely impact the demand for the Company’s products, operating costs and required capital levels; unfavorable judicial or legislative developments; the impact of changes in federal, state or foreign tax laws; regulatory requirements that could delay, deter or prevent a takeover attempt that stockholders might consider in their best interests; and the impact of potential changes in accounting principles and related financial reporting requirements.

Any forward-looking statement made by the Company in this document speaks only as of the date of this release. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.