The Hartford Financial Services Group, Inc. (NYSE: HIG) announced impressive financial results for the second quarter of 2025, with core earnings reaching nearly $1 billion. This achievement reflects the effectiveness of the company’s strategic initiatives and its ability to capitalize on market opportunities. The results were disclosed during a conference call held on July 29, 2025, led by executives including Chairman and Chief Executive Officer Christopher Swift and Chief Financial Officer Beth Costello.
During the earnings call, Swift highlighted that the company’s core earnings for the quarter totaled $981 million, translating to $3.41 per diluted share. This performance corresponds to a trailing twelve-month core earnings return on equity (ROE) of 17%. A key driver of this growth was the 8% increase in written premium within the Business Insurance segment, achieving an underlying combined ratio of 88.
Business Insurance Segment Thrives
The Business Insurance segment showcased remarkable results, particularly in Small Business, which reported a 9% growth in written premium and maintained a strong underlying combined ratio of 89. Swift attributed this success to advancements in underwriting tools and pricing expertise, alongside a significant improvement in the company’s quoting platform driven by artificial intelligence (AI) and data science.
The Middle and Large Business sectors also performed well, with an underlying combined ratio of 89.1 and written premium growth of 5%. Swift noted the company’s ongoing investment in AI, which enhances productivity and accelerates market responsiveness. The Global Specialty segment reported a similar upward trajectory, demonstrating a 9% increase in written premium and an underlying combined ratio of 84.8.
Personal Insurance and Employee Benefits Show Improvement
The Personal Insurance division saw a notable recovery, particularly in the homeowners’ insurance market, which experienced 17% written premium growth and an underlying combined ratio in the low 70s. Swift emphasized the successful rollout of the new Prevail offering, which integrates auto, home, and umbrella insurance, enhancing the company’s competitive edge in the agency channel.
In the Employee Benefits sector, core earnings margin reached 9.2%, bolstered by robust group life and disability performance. The company reported a persistency rate in the low 90s, despite flat growth in fully insured premiums due to a competitive landscape. Costello noted a partnership with Nayya, which aims to improve employee benefits enrollment through AI-driven personalization, further enhancing the value proposition for both employers and employees.
The call concluded with executives expressing confidence in The Hartford’s ability to capture additional market share and deliver continued profitable growth. Swift and Costello underscored the importance of their ongoing strategic investments in technology and innovation, which are expected to drive future success and operational efficiency.
In summary, The Hartford’s second-quarter results indicate a strong operational foundation and a clear strategy for future growth, positioning the company favorably within the competitive insurance market.
