HARTFORD FINANCIAL SERVICES GROUP INC
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
HIG$133.99-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000874766-24-000073
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSKey Performance Measures and RatiosThe Hartford's OperationsFinancial HighlightsConsolidated Results of OperationsInvestment ResultsCritical Accounting EstimatesCommercial LinesPersonal LinesProperty & Casualty Other OperationsGroup BenefitsHartford FundsCorporateEnterprise Risk ManagementCapital Resources and LiquidityImpact of New Accounting StandardsAcronymsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0000874766-24-000108
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSKey Performance Measures and RatiosThe Hartford's OperationsFinancial HighlightsConsolidated Results of OperationsInvestment ResultsCritical Accounting EstimatesCommercial LinesPersonal LinesProperty & Casualty Other OperationsGroup BenefitsHartford FundsCorporateEnterprise Risk ManagementCapital Resources and LiquidityImpact of New Accounting StandardsAcronymsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 501 previous paragraphs and 534 current paragraphs.
345 unchanged; 130 reworded; 29 added; 12 removed; 14 previous and 30 current paragraphs rearranged.
Tables are not compared: 103 previous and 112 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
Three months ended June 30, 2024 compared to the three months ended June 30, 2023
Current report
•An increase in P&C underwriting gain of $117, before tax, driven by the effect of earned premium growth, a higher level of favorable prior accident year reserve development, and a lower CAY loss and LAE ratio before catastrophes in both Personal Lines and Commercial Lines, partially offset by higher current accident year catastrophes;
Current report
•Higher net investment income of $62, before tax, primarily driven by a higher level of invested assets and a higher yield on fixed maturities, partially offset by lower income from limited partnerships and other alternative investments; and
Current report
•In Group Benefits, improved group life loss ratio driven by lower claim severity experience and the effect of higher fully insured ongoing premiums.
Current report
Earned premiums increased $358 primarily due to:
Current report
–An increase in current accident year catastrophe losses of $54, before tax. Catastrophe losses in the 2024 period included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, mainly in the South, Midwest and Mountain West.
Current report
•A decrease in Group Benefits of $28, before tax, primarily driven by the impact of a lower group life loss ratio and a higher New York paid family leave risk adjustment benefit, partially offset by the effect of higher earned premiums and a higher loss ratio on paid family and medical leave products.
Current report
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
Current report
•Lower net realized losses of $40, before tax; and
Current report
Earned premiums increased by $741, or 7%, primarily due to:
Current report
•An increase in P&C reflecting a 9% increase in Commercial Lines and a 11% increase in Personal Lines.
Current report
Net realized losses improved primarily due to no losses on credit derivatives in the 2024 period compared to the 2023 period and gains on transaction foreign currency revaluation in the 2024 period compared to losses in the 2023 period. These increases were partially offset by higher net losses on sales of fixed maturities in the 2024 period compared to the 2023 period.
Current report
Benefits, losses and loss adjustment expenses increased $210, due to:
Current report
the three and six months ended June 30, 2024 were 6.4% and 6.2%, respectively, which were above the average yield of sales and maturities of 4.9% and 4.9%, respectively. Average reinvestment rates for the three and six months ended June 30, 2023, were 5.3% and 5.6%, respectively, which were above the average yield of sales and maturities of 4.1% and 4.1%, respectively.
Current report
[1]Other reserve re-estimates, net for the three months ended June 30, 2024 includes a $7 decrease in personal lines automobile physical damage reserves.
Current report
[1]Other reserve re-estimates, net for the six months ended June 30, 2024 includes a $14 decrease in personal lines automobile physical damage reserves.
Current report
[2]The $61 change in deferred gain on retroactive reinsurance for the six months ended June 30, 2024 is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting. For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current report
Current accident year loss and LAE ratio before catastrophes for the three and six months ended June 30, 2024 improved primarily due to lower net non-catastrophe property losses.
Current report
Loss ratio improved 3.2 points in the three months ended June 30, 2024 compared to the prior year period driven by a lower group life loss ratio. The group life loss ratio decreased
Current report
9.2 points driven by lower claim severity experience. The group disability loss ratio was essentially flat driven by lower long-term disability claim incidence, and a higher New York paid family leave risk adjustment benefit, offset by a higher loss ratio on paid family and medical leave products.
Current report
Expense ratio decreased for the three month period primarily due to an increase in the allowance for credit losses on premiums receivable in the 2023 period and the effects of higher earned premium, partially offset by the impact of higher staffing costs, including higher incentive compensation, and higher commission expense.
Current report
For both the three and six months ended June 30, 2023, the Company recorded an increase in the ACL on mortgage loans of $5. The increase in the allowance is primarily attributable to overall weaker projected real estate fundamentals, and to a lesser extent, net additions of new loans. The Company did not record an ACL on any individual mortgage loans.
Current report
•Other - HFSG Holding Company received $28 in dividends from other non-insurance subsidiaries through June 30, 2024.
Current report
Through the first six months of 2024, HFSG Holding Company received $1.1 billion of net dividends from its subsidiaries, including $458 from HLA, $64 from Hartford Funds, $28 from other non-insurance subsidiaries and $567 from its P&C subsidiaries, excluding $25 of P&C dividends that were subsequently contributed to P&C subsidiaries and $25 of P&C
Removed paragraphs (12)
Previous report
Certain reclassifications have been made to historical financial information presented in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") to conform to the current period presentation.
Previous report
•A $35, before tax, change to net realized gains in the 2024 period from net realized losses in the prior year period; and
Previous report
Earned premiums increased $383 primarily due to:
Previous report
Net realized gains (losses)changed to a gain in the 2024 period from a loss in the 2023 period primarily due to:
Previous report
•Appreciation in value of fixed maturities, at fair value using the fair value option ("FVO securities") in the 2024 period compared to depreciation in the 2023 period due to changes in credit spreads.
Previous report
•Investments in technology to support business growth and innovation initiatives.
Previous report
Short-term investments decreased primarily due to reallocation into fixed maturities, AFS.
Previous report
Current accident year loss and LAE ratio before catastrophes was substantially consistent with the prior year quarter as earned pricing is generally keeping pace with loss cost trends across most lines of business.
Previous report
well as tornado, wind and hail events in the Midwest, South and
Previous report
There was no change to the ACL on mortgage loans which incorporated a level of economic uncertainty and the potential impact on real estate property valuations. The Company did not record an ACL on any individual mortgage loans.
Reworded paragraphs (130)
Previous wording
Throughout the MD&A, we use certain terms and abbreviations, the more commonly used are summarized in the Acronyms section.
Current wording
Throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), we use certain terms and abbreviations, the more commonly used are summarized in the Acronyms section.
Previous wording
[1]During the three months ended March 31, 2024, the Company began collecting recoveries from National Indemnity Company ("NICO”), a subsidiary of Berkshire Hathaway Inc. related to the Navigators adverse development cover ("Navigators ADC") and as a result amortized $24 of the deferred gain within benefits, losses and loss adjustment expenses in the Condensed Consolidated Statements of Operations. For additional information regarding the ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current wording
[1]During 2024, the Company collected recoveries from National Indemnity Company ("NICO”), a subsidiary of Berkshire Hathaway Inc. related to the Navigators adverse development cover ("Navigators ADC") and as a result amortized $37 and $61 of the deferred gain within benefits, losses and loss adjustment expenses in the three and six month periods, respectively. For additional information regarding the ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Previous wording
Expense Ratio-For Commercial Lines and Personal Lines is the ratio of underwriting expenses less fee income, to earned premiums. Underwriting expenses include the amortization of deferred policy acquisition costs ("DAC") and insurance
Current wording
Expense Ratio-For Commercial Lines and Personal Lines is the ratio of underwriting expenses less fee income, to earned premiums. Underwriting expenses include the amortization of
Previous wording
operating costs and other expenses, including certain centralized services costs and bad debt expense. DAC includes commissions, taxes, licenses and fees and other incremental direct underwriting expenses and are amortized over the policy term.
Current wording
deferred policy acquisition costs ("DAC") and insurance operating costs and other expenses, including certain centralized services costs and bad debt expense. DAC includes commissions, taxes, licenses and fees and other incremental direct underwriting expenses and are amortized over the policy term.
Previous wording
Net income available to common stockholders increased by $218, primarily driven by:
Current wording
Net income available to common stockholders increased by $191, primarily driven by:
Previous wording
•An increase in P&C reflecting a 10% increase in both Commercial Lines and Personal Lines.
Current wording
•An increase in P&C reflecting a 8% increase in Commercial Lines and an 12% increase in Personal Lines.
Previous wording
–For Personal Lines, earned premium was up primarily due to the effect of earned pricing increases, partially offset by non-renewals.
Current wording
–For Personal Lines, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
Previous wording
•An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and lower persistency compared to the prior year period.
Current wording
•An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.
Previous wording
Net investment income increased primarily due to the impact of reinvesting at higher interest rates, a higher level of invested assets, and a higher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.
Current wording
Net investment income increased primarily due to a higher level of invested assets, the impact of reinvesting at higher interest rates, and a higher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.
Previous wording
•Fewer net losses on sales of fixed maturities in the 2024 period; and
Current wording
Net realized losses improved slightly primarily due to no losses on credit derivatives in the 2024 period compared to losses in the 2023 period and gains on transactional foreign currency revaluation in the 2024 period compared to losses in the 2023 period. These increases were mostly offset by higher net losses on sales of fixed maturities in the 2024 period compared to the 2023 period.
Previous wording
•An increase in Property & Casualty of $135 which was attributable to:
Current wording
•An increase in Property & Casualty of $109 which was attributable to:
Previous wording
–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $215, before tax, primarily due to the effect of higher earned premiums in all P&C lines of business;
Current wording
–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $131, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower CAY loss and LAE ratio in both Commercial Lines and Personal Lines;
Previous wording
–Net favorable prior accident year reserve development of $56, before tax, in P&C compared to no net prior accident year reserve development in the 2023 period. Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation and Personal Lines automobile physical damage, partially offset by increases in reserves for general liability, assumed reinsurance, and marine. The 2024 period also included a benefit of $24 related to amortization of the Navigators ADC deferred gain. For the 2023 period, prior year reserve development primarily included a decrease in reserves related to workers’ compensation and package business, offset by increases in reserves for Personal Lines automobile physical damage,
Current wording
–Net favorable prior accident year reserve development of $115, before tax, in P&C compared $39 in the prior year period. Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation, catastrophes, bond, Personal Lines automobile liability, and homeowners, partially offset by increases in reserves for general liability, assumed reinsurance, and Commercial Lines automobile liability. The 2024 period also included a benefit of $37 related to amortization of the Navigators ADC deferred gain. Prior accident year reserve development for the 2023 period was primarily driven by decreases in reserves related to catastrophes and workers’ compensation, partly offset by increases in reserves for general liability, assumed reinsurance, and bond.
Previous wording
general liability, and uncollectible reinsurance. For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current wording
For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Previous wording
•Increased expense from higher staffing costs and commissions in Commercial Lines and Group Benefits, partly in response to increased business volume;
Current wording
•Increased expense from higher staffing costs, including higher incentive compensation, and commissions in Commercial Lines and Group Benefits, partly in response to increased business volume; and
Previous wording
•Higher direct marketing costs in Personal Lines as marketing resumed at normalized levels; and
Current wording
•Higher direct marketing costs in Personal Lines.
Previous wording
•An increase in P&C underwriting gain of $128, before tax, driven by the effect of earned premium growth, including a lower expense ratio, favorable prior accident year reserve development, and lower current accident year catastrophe losses;
Current wording
•An increase in P&C underwriting gain of $245, before tax, driven by the effect of earned premium growth, including a lower expense ratio, a higher level of favorable prior accident year reserve development, and lower CAY loss and LAE ratio before catastrophes in both Personal Lines and Commercial Lines, partially offset by higher current accident year catastrophe losses;
Previous wording
•Higher net investment income of $78, before tax, primarily driven by a higher yield on fixed maturities and a higher level of invested assets, partially offset by lower income from limited partnerships and other alternative investments;
Current wording
•Higher net investment income of $140, before tax, primarily driven by a higher level of invested assets and a higher yield on fixed maturities, partially offset by lower income from limited partnerships and other alternative investments;
Previous wording
•In Group Benefits, improved group life and group disability loss ratios and the effect of higher fully insured ongoing premiums, partially offset by a higher expense ratio.
Current wording
•In Group Benefits, a lower group life loss ratio and the effect of higher fully insured ongoing premiums, partially offset by a higher expense ratio.
Previous wording
–A decrease in current accident year catastrophe losses of $24, before tax. Catastrophe losses in the 2024 period included losses from tornado, wind and hail, mainly in the Midwest, South and mid-Atlantic regions, as well as winter storms, primarily in the Northeast, Pacific and South regions. Catastrophe losses in the 2023 period included losses from winter storms along the East and West Coasts and tornado, wind and hail events across several regions of the United States; and
Current wording
–An increase in current accident year catastrophe losses of $30, before tax. Catastrophe losses in the 2024 period included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions, and, to a lesser extent, from winter storms, mainly in the Northeast, Pacific and South regions. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, and losses from winter storms along the East and West Coasts.
Previous wording
•A decrease in Group Benefits of $6, before tax, primarily driven by the impact of lower mortality levels and favorable long-term disability claim recoveries, partially offset by the effect of an increase in earned premiums and higher incidence on paid family leave and short-term disability products.
Current wording
•A decrease in Group Benefits of $34, before tax, primarily driven by the impact of a lower group life loss ratio, favorable long-term disability claim recoveries and incidence, and a higher New York paid family leave risk adjustment benefit, partially offset by the effect of higher earned premiums and a higher loss ratio on paid family and medical leave products.
Previous wording
Total investments increased slightly primarily due to an increase in fixed maturities, AFS, at fair value, partially offset by a decrease in short-term investments.
Current wording
Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value.
Previous wording
Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds, partially offset by a decrease in valuations due to higher interest rates, net of tighter credit spreads.
Current wording
Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds and securitized products, partially offset by net reductions to tax-exempt municipal bonds and U.S. treasuries, as well as an overall decrease in valuations due to higher interest rates.
Previous wording
Total net investment income increased primarily due to the impact of reinvesting at higher rates, a higher level of invested assets, and a higher yield on variable-rate securities, partially offset by lower income from limited partnerships and other alternative investments.
Current wording
Total net investment income increased primarily due to a higher level of invested assets, the impact of reinvesting at higher rates, and a higher yield on variable-rate securities, partially offset by lower income from limited partnerships and other alternative investments.
Previous wording
primarily due to the impact of reinvesting at higher rates and a higher yield on variable-rate securities.
Current wording
Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates and a higher yield on variable-rate securities.
Previous wording
Average reinvestment rate, on fixed maturities and mortgage loans, excluding certain U.S. Treasury securities, for the three months ended March 31, 2024 was 6.1% which was above the average yield of sales and maturities of 5.0% for the same period. Average reinvestment rate, on fixed maturities and mortgage loans, excluding certain U.S. Treasury securities, for the three months ended March 31, 2023 was 5.8% which was above the average yield of sales and maturities of 4.2% for the same period.
Current wording
Average reinvestment rates, on fixed maturities and mortgage loans, excluding certain U.S. Treasury securities, for
Previous wording
For the 2024 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be above the portfolio yield earned in 2023 due to the higher rate environment. The
Current wording
For the 2024 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be above the portfolio yield earned in 2023 due to the higher rate environment. The estimated impact on annualized net investment income yield is subject to variability including the impact of evolving market conditions.
Previous wording
[1]The change in net unrealized gains (losses) on equity securities still held as of the end of the period and included in net realized gains (losses) were $36 and $2 for the three months ended March 31, 2024, and 2023, respectively.
Current wording
[1]The change in net unrealized gains (losses) on equity securities still held as of June 30, 2024 and included in net realized gains (losses) were $15 and $44 for the three and six months ended June 30, 2024, respectively. The change in net unrealized gains (losses) on equity securities still held as of June 30, 2023 and included in net realized gains (losses) were $7 and $7 for the three and six months ended June 30, 2023, respectively.
Previous wording
[4]For the three months ended March 31, 2024, and 2023 includes gains (losses) from transactional foreign currency revaluation of $2 and $(7), respectively, and gains (losses) on non-qualifying derivatives of $(2) and $5, respectively.
Current wording
[4]For the three and six months ended June 30, 2024, includes gains (losses) from transactional foreign currency revaluation of $4 and $6, respectively, and gains (losses) on non-qualifying derivatives of $(6) and $(8), respectively. For the three and six months ended June 30, 2023, includes gains (losses) from transactional foreign currency revaluation of $(9) and $(16), respectively, and gains (losses) on non-qualifying derivatives of $(39) and $(34), respectively.
Previous wording
Gross gains and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals.
Current wording
Gross gains and losses on sales were primarily due to sales of U.S. treasuries, corporate securities, and tax-exempt municipals to fund purchases of higher-yielding investments.
Previous wording
Other, netlosses include losses of $5 on equity derivatives due to higher equity market levels and $1 on impairments of limited partnerships and other alternative investments. Also included are gains of $4 on FVO securities due to appreciation in value and $3 on interest rate derivatives driven by changes in interest rates.
Current wording
Other, netlosses for the three and six month periods ended June 30, 2024 primarily included losses of $6 and $3, respectively, on interest rate derivatives driven by changes in interest rates, and gains of $4 and $6, respectively, on transactional foreign currency revaluation. Also included for the six month period ended June 30, 2024 were losses of $5 on equity derivatives due to higher equity market levels.
Previous wording
Equity securitiesnet gains were primarily driven by repositioning and appreciation in value due to higher equity market levels.
Current wording
Equity securitiesnet gains were primarily driven by an increase in value due to higher equity market levels.
Previous wording
Other, netlosses were primarily due to $16 on credit derivatives and $8 on FVO securities due to changes in credit spreads, as well as, $7 on transactional foreign currency revaluation. These losses were partially offset by gains of $21 on interest rate derivatives driven by changes in interest rates.
Current wording
Other, netlosses for the three and six month periods ended June 30, 2023 primarily included losses of $36 and $52, respectively, on credit derivatives primarily due to changes in valuation, and losses of $9 and $16, respectively, on transactional foreign currency revaluation. Also included for the six month period ended June 30, 2023 were losses of $11 on FVO securities due to changes in credit spreads and gains of $18 on interest rate derivatives driven by an increase in interest rates.
Previous wording
[1]Prior accident year development for the three months ended March 31, 2024 includes a $24 benefit for amortization of a deferred gain under retroactive reinsurance accounting related to the Navigators ADC as the Company began collecting recoveries of the ceded losses from NICO during the period. For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current wording
[1]Prior accident year development for the six months ended June 30, 2024 includes a $61 benefit for amortization of a deferred gain under retroactive reinsurance accounting related to the Navigators ADC as the Company began collecting recoveries of the ceded losses from NICO during the period. For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Previous wording
[1]The $24 change in deferred gain on retroactive reinsurance for the three months ended March 31, 2024, related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting. For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current wording
[2]The $37 change in deferred gain on retroactive reinsurance for the three months ended June 30, 2024, is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting. For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Previous wording
[1]Other reserve re-estimates, net for the three months ended March 31, 2023 includes a $20 increase in personal automobile physical damage reserves.
Current wording
[1]Other reserve re-estimates, net for the six months ended June 30, 2023 includes a $22 increase in personal automobile physical damage reserves.
Previous wording
Net income increased primarily due to a higher underwriting gain, higher net investment income, and a change to net realized gains in the current year period from net realized losses in the prior year period. For further discussion of investment results, see MD&A - Investment Results.
Current wording
Net incomefor the three and six months ended June 30, 2024 increased primarily due to a higher underwriting gain, higher net investment income, and, for the six month period, lower net realized losses. For further discussion of investment results, see MD&A - Investment Results.
Previous wording
Underwriting gain increased by the effect of earned premium growth, higher favorable prior accident year development, including $24 of a benefit for amortization of a deferred gain on the Navigators ADC, and lower current accident year catastrophe losses.
Current wording
Underwriting gain for the three and six months ended June 30, 2024 increased due to the effect of earned premium growth, higher favorable prior accident year development, including $37 and $61 of a benefit for amortization of a deferred gain on the Navigators ADC for the three and six month periods, respectively, and a lower CAY loss and LAE ratio before catastrophes, partially offset by higher current accident year catastrophe losses.
Previous wording
Expense ratio decreased driven by the impact of higher earned premium, partially offset by higher underwriting staffing costs and, to a lesser extent, investments in technology.
Current wording
Expense ratio for the three and six months ended June 30, 2024 decreased driven by the impact of higher earned premium, partially offset by higher underwriting staffing costs, including higher incentive compensation, and increased commissions.
Previous wording
[1]Other earned premiums of $13 and $15, for the three months ended March 31, 2023, and 2024, respectively.
Current wording
[1]Other earned premiums of $13 and $14, for the three months ended June 30, 2023, and 2024, respectively and $26 and $29 , for the six months ended June 30, 2023, and 2024, respectively.
Showing the first 40 of 130 pairs. Open the source sections for the rest.
Rearranged current paragraphs (30)
Current report — wording carried from elsewhere
Net income available to common stockholders increased by $409 primarily driven by:
Current report — wording carried from elsewhere
For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.
Current report — wording carried from elsewhere
–Contributing to the increase in Commercial Lines was the effect of an increase in new business across all lines of business, earned pricing increases, and higher insured exposures, principally in workers’ compensation and property lines.
Current report — wording carried from elsewhere
–For Personal Lines, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
Current report — wording carried from elsewhere
•An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.
Current report — wording carried from elsewhere
Fee income increased, primarily due to an $18 increase in Hartford Funds driven by higher daily average assets resulting from an increase in equity market levels, partially offset by net outflows over the preceding twelve months.
Current report — wording carried from elsewhere
Net investment income increased primarily due to a higher level of invested assets, the impact of reinvesting at higher interest rates, and a higher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.
Current report — wording carried from elsewhere
For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.
Current report — wording carried from elsewhere
Losses and LAE Incurred for P&C
Current report — wording carried from elsewhere
•An increase in Property & Casualty of $244, which was attributable to:
Current report — wording carried from elsewhere
–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $346, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower CAY loss and LAE ratio, in Commercial Lines and Personal Lines; and
Current report — wording carried from elsewhere
Losses and LAE Incurred for Group Benefits
Current report — wording carried from elsewhere
–Net favorable prior accident year reserve development of $171, before tax, in P&C compared to net favorable prior accident year reserve development in the 2023 period of $39. Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation, catastrophes, bond, Personal Lines automobile liability, and homeowners, partially offset by increases in reserves for general liability, assumed reinsurance, and Commercial Lines automobile liability. The 2024 period also included a benefit of $61 related to amortization of the Navigators ADC deferred gain. Favorable prior year reserve development in the 2023 period was primarily driven by decreases in reserves related to workers' compensation and catastrophes, offset by increases in reserves for general liability, Personal Lines automobile physical damage, assumed reinsurance, bond, and uncollectible reinsurance. For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Current report — wording carried from elsewhere
Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.
Current report — wording carried from elsewhere
Insurance operating costs and other expenses increased due to:
Current report — wording carried from elsewhere
•Increased expense from higher staffing costs, including higher incentive compensation, and commissions in Commercial Lines and Group Benefits, partly in response to increased business volume; and
Current report — wording carried from elsewhere
•Higher direct marketing costs in Personal Lines.
Current report — wording carried from elsewhere
Income tax expense increased primarily due to an increase in income before tax. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
Current report — wording carried from elsewhere
("CPRI") coverages, losses from derivative lawsuits, and other securities actions and covered perils.
Current report — wording carried from elsewhere
TRIPRA provides a backstop for insurance-related losses resulting from any “act of terrorism”, which is certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General, for losses that exceed a threshold of industry losses of $200. Under the
Current report — wording carried from elsewhere
Reinsurance for A&E and Navigators Group Reserve Development - The Company has two adverse development covers ("ADC") reinsurance agreements in place, both of which are accounted for as retroactive reinsurance. One agreement covers substantially all A&E reserve development for 2016 and prior accident years (the “A&E ADC”) up to an aggregate limit of $1.5 billion and the other covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the “Navigators ADC”) up to an aggregate limit of $300, for which the Company
Current report — wording carried from elsewhere
Impact Inadequate capital resources and liquidity could negatively affect the Company’s overall financial strength and its
Current report — wording carried from elsewhere
sectors), hedging and the use of collateral to reduce net credit exposure.
Current report — wording carried from elsewhere
The Company also has derivative counterparty exposure policies which limit the Company’s exposure to credit risk. Credit exposures are generally quantified based on the prior business
Current report — wording carried from elsewhere
interest rates. Interest rate risk does not include exposure to changes in credit spreads.
Current report — wording carried from elsewhere
markets. Generally, declines in equity markets will reduce the value of average daily AUM and the amount of fee income generated from those assets. Increases in equity markets will generally have the inverse impact.
Current report — wording carried from elsewhere
For further information, refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.
Current report — wording carried from elsewhere
The HFSG Holding Company expects to continue to receive
Current report — wording carried from elsewhere
agreement. For further information, refer to Note 13 - Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.
Current report — wording carried from elsewhere
and a decrease in net proceeds from short term investments, partially offset by an increase in payments for fixed maturities, FVO.
Rearranged previous paragraphs (14)
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Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up
Previous report — wording carried elsewhere
estimated impact on annualized net investment income yield is subject to variability including the impact of evolving market conditions.
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storms, mainly in the Northeast, Pacific and South regions, as
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The Company manages and monitors risk through risk policies,
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Risk Insurance Program Reauthorization Act (“TRIPRA") and other reinsurance programs relating to particular risks or specific lines of business.
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some of which provide for reinstatement of limits in the event of a loss with reinstatement provisions varying depending on the layer of coverage. The Per Occurrence Property Catastrophe
Previous report — wording carried elsewhere
Treaty, and Workers' Compensation Catastrophe Treaty include a provision to reinstate one limit in the event that a catastrophe loss exhausts limits on one or more layers under the treaties.
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cause correlated movement in multiple risk factors. The primary sources of financial risks are the Company's invested assets.
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the HFSG Holding Company and certain affiliates, and access to collateralized advances from the Federal Home Loan Bank of Boston ("FHLBB") for certain affiliates. The Company's CFO has primary responsibility for liquidity risk.
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Management The Company primarily manages its exposure to interest rate risk by constructing investment portfolios that seek to protect the Company from the economic impact
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Management The Company manages its foreign currency exchange risk primarily through asset-liability matching and through the use of derivative instruments. However, legal entity
Previous report — wording carried elsewhere
The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and HLA, are members of the FHLBB. Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or
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extent changes in contractual terms are negotiated.
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Property & Casualty reserves for unpaid losses and loss