Earnings call transcript Q1 2023

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Operator

Hello and welcome to the First Quarter 2023 The Hartford Financial Results Webcast. My name is Alex and I'll be coordinating the call today. [Operator Instructions]

I'll now hand over to your host, Susan Spivak, Senior Vice President of Investor Relations. Please go ahead.

Susan Spivak

you on us first thank call for and webcast and quarter morning for today joining our Good XXXX earnings. results reported on we and the all Yesterday, earnings-related our website. posted materials

Swift, Global today, Mo & participants Hartford; call Tooker, Costello, Officer; Bush, Middle Benefits; Financial Specialty. Large Bennett, Chief CEO Personal Small the For Commercial Beth are, Chris and of Chairman our the Group Stephanie and Jonathan Commercial and Lines; and

and materially defined of differ as obligation the Just on these could uncertainties call to cause and comments includes different. actual statements from Litigation any should provided a not Act Private actual this forward-looking We before Today's Reform statements assume few Securities begin. update statements Chris call. forward-looking these are future information risks results also statements. under that of XXXX, results do could to not be or guarantees Investors the consider performance

those SEC be of can risks uncertainties description detailed filings. A and our in found

today include GAAP measure, Our comparable and as SEC supplement. in our and news these included well financial the non-GAAP filings, of release Explanations commentary in to are the measures financial measures. as reconciliations

Finally, this may reproduced without transcript year. will conference rebroadcast Hartford's for portion no on be website of form please written one the in and call any consent. prior an official that or Hartford's Replays note webcast of this be available

turn over I'll to call the now Chris.

Chris Swift

thank Good joining morning and you us. for

will and the metrics. be leaders summary your into with of begin quarter deeper and our will I Today, we take to our After dive key first Beth performance questions. results, a Hartford's happy then which, financial business will

let's So started. get

exceptional and such strong pressure in to Group Well, results continued Lines our results. trends, personal losses pleased Commercial in begin inflationary results We industry-wide our persistent impacted auto, the catastrophe in Benefits. year elevated and as with are businesses

growth from underlying each ratio of Lines including business in first saw of XX.X%. combined The Commercial XX%, an with also topline quarter double-digit contributions

strong sales across earnings fully of increases Personal a of quarter first in Lines. both Auto and with price X.X%. Group renewal Benefits core growth in premium combined insured Double-digit written Home margin X%

yields capital Solid investment results of in of and with reinvestment to the million rates XX.X%, fixed-income core ROE returning shareholders while increasing $XXX quarter. a earnings and strong portfolio

share from businesses. highlights each me first let Now quarter our of

We Lines have across momentum I growth, Commercial margins. continued highly strong expect profitable topline and at

underwriting In pricing my confidence enhanced February. addition, deliver lines our I consistent in back with and outlook ability execution, accelerating combined the with several in margins XXXX to provided bolsters

Hartford. set significantly. we launch product, written three-year enhanced $X.X that and for records In the years premium written premiums Over new $XXX has Small grown of Three completed billion ago, Spectrum. we call million best-in-class Commercial, business Spectrum the which package new of period, our of

the doubled example, years period and same almost this quarter's is that nearly the same ago For business XX% is three period. over premium than written higher premium new

In expanded product a lines capabilities digital momentum, surplus excess Small and In doubled written exceed with gain annual billion is from approximately year track $X by business. the and of addition, Commercial continues in exceptional we've deliver term. wholesale delivering industry-leading finding short, results and substantial growth. continues new to in broker near premium robust on products our fueled to increase a Written ago, relationships, to premiums

increases. premiums growth in written & Middle business renewal exposure In growth solid new Commercial, driven of sustained Large price XX%, grew XX%, by written

average both unsold premium New increase. continues submissions and to hit up rates and accounts business were

growth particularly property pleased are lines. We by in the

key will The to favorable focus continue on we market and area conditions. of capitalize

the non-CAT valuations. through CAT paid underwrite, appropriate and getting in to risk committed terms we setting proper conditions, and are We ensuring

position to this us and growth continue margins business. talent and exceptional capabilities, healthy contributed Our data in driving science investments segmentation, in to industry-leading well risk have profitable

gross annual In nearly $X with written outstanding Specialty results, of billion we're Global premium.

written renewal pricing competitive written Our solid position, with XX% Reinsurance. contributions drove products, increase Global in premium from net a of significant breadth and

our benefits driving excited ongoing market our portfolio. in in share broadening gains. market never and are about are wholesale the the position We Execution product enhanced capabilities stronger has our from underwriting been

renewal pricing pricing. to in X.X% lines compared was X.X% Commercial fourth the to written Turning quarter.

Standard renewal XX% with to Standard U.S. compensation, written near worker's Commercial Auto Commercial Excluding rose in pricing lines excess property pricing middle-market of X.X% and X%.

Worker's generated In loss positive, more Global competitive, Marine, casualty, the wage while Property, strong pricing benefit excess in to remains is Primary D&O remained pressure. pricing Auto, of average compensation pricing results Casualty, all under from cost continuing Specialty, trends. Within and stronger-than-expected well becoming public pricing growth. excess

professional to and Commercial our Lines, private Within aggregate focus excluding stable and we expanded cost the written market trends maintaining public while long-term been loss our underwriting lines, modestly. between discipline has pricing renewal are more the Across management companies, cost where remained loss attractive and book pricing in have in liability, space. compensation, margin worker's financial shifting in margins trends and

Lines, to a premium confidence want ability reiterate conditions, I our As market my underwriting the continued superior of our and and execute Commercial across while margins strong maintaining book a manage we to sheet. in economic continue with to growth, through variety strategy balance

industry cost Moving increases very market results. continued dynamic, loss of The the participants, Lines. environment had meaningful to severity a across is impact has level Personal Auto on

it the in achieved changing in than than fourth and written the the In is increases of the approved filings result, filings year. quarter of accelerate renewal averaged later the management landscape first As more XX% a X.X%. active quarter, XX.X%, paramount. We double, result response high rate this to quarter teens expect first into of to rate price

take in. XX-month Given policies, rate will the for to increases time the earn fully vast our majority of as book it

execution and approved. adequacy year, business and we first as loss reported XXXX adjusted year plan have our fourth a quarter in the quarter of continued result, rate the of will elevated the new filings as throughout trends this are build With rate

achieve across execution, profitability most We the expect book. Overall, year-end. Auto to business have in with strategy states confident expect XXXX adequacy I rate and new we by am in target right focused the

in renewal XX.X% of rate of with comprised loss insured net quite cost were the pricing increases written and value trends. results outpacing quarter, homeowners, In strong

Benefits. Turning Group to

significant Core improvement. We are reflect a earnings off to strong a start.

year, in welcome trends including mortality prior encouraging pandemic-related pandemic-related from losses. Lower versus seen is impacts and have We trend. a mortality decreasing

While it to they too on pre-pandemic mortality reach settle we business firm accordingly. in above long-term early expect pricing our levels is will conclusions trends, still

outlook We positive we continue remain to measure to the of our effects the pandemic are In course, prepared necessary. and performance are and well market-leading our the book. as capabilities believe we adjust and of on disability,

million over prior business, million new at sales second-highest quarter of sales up Looking ever. were $XXX our This was $XX year.

U.S. effectively competing from segments across small the we're market all Importantly, largest businesses to enterprises.

capitalize requirements for market Benefits evolving we life, products customer management, and group well-positioned health to on Group services. rapidly are leader, and a absence As supplemental

suite continue the their customer process and of for We our integration, ever needs to member are value with enrollment, component products employees, an of more tools a service for and our extensive HR platform and key of than analytics. services on Employers simplification, strengthen reputation proposition. focused are that

that a real approach negligible The details, net portfolio Hartford's investments. objectives, range to another strategic topical, Beth across support to of was me minute it take is and that solid highlight, while provide investment a to That estate impairments. and to market. income well now financial would with commercial the on of comment will further let Recognizing performing continues economic classes Moving quarter our cycles. asset

track estate teams have experienced the long and professionals a yields real in We our attractive investing commercial record provides returns, believe successful portfolio. with a sector. of diversification the and while of of to dedicated risk-adjusted providing We market source investment

industrial holdings multifamily and $X commercial loans, primarily mortgage approximately with offices. billion of XX% of than consisting have We commercial invested in less

impact continue of other through cap assessments, they give We Well, casualty economic these from higher regularly rates perhaps the perform we rated of well the holdings alternative review points rates. corporate are approximately of rising provide lower will spread XXX credit, portfolio to basis cycle. appears, for interest investment us property attractive a XX the occupancy believe bit additional valuation as the corporates. to our impact distinct and over to grade confidence, property levels, an and These

as growth we our anticipate In ahead, closing, businesses. margins look strong in continued we across

execution franchise. depth and of commitment the of power distribution demonstrates excellent performance our superior our employees. financial to the and by Our our customer experience The relationships XX,XXX

to advantages, that continue I results. these superior remain confident With we can competitive deliver

better has core industry-leading deliver of by XX%, The to earnings while XX% never positioned to a ROE creating financial all stakeholders. performance, highlighted range been Hartford for value

Beth over me provide commentary the to quarter. turn to it let more Now on

Beth Costello

you, Thank Chris.

$XXX for million, combined the quarter for XX.X%. with earnings line Core or were in embedded underlying with per Lines, ROE with earnings was which diluted share the were expectations $X.XX core an $XXX XX.X%, a February. full-year first earnings our provided core the quarter, in In in outlook of ratio Commercial million of XX-month

ratio results with excellent Small XX.X%. Commercial continued an to of combined underlying deliver

in straight higher of to compared unusually expected. and The non-CAT the compensation worker's included first year modestly below losses losses quarter underlying ratio prior in of quarter higher is This property quarter the ratio XX%. XXth low combined in as an loss

Middle Global from improvement. outstanding from margin year an prior & an X.X Specialties Commercial benefited X underlying delivered international favorable and lower expense from and due record improved expense a to losses Large the a year point improvement ratio. property XX.X%, non-CAT a XX.X%, losses improved points to ago which

repair driven Lines, and line continued severity core used increased costs, results combined ratio a other underlying combined quarter car with loss rates. and of in underlying things, All Personal XX%. representation an expectations. among XX.X% by liability in damage with modest elevated of In was the attorney for Homeowners pressure XXX,XXX ratio valuations, was reflected uptick physical

expectations. XX combined is ratio above our about points higher quarter, X.X The prior-year the approximately points auto which was underlying than

was we indications change activity. in As we see to that a the there quarter, progressed through pronounced first began loss step

we to was The at signal sustained and not but time, data February view trend, our an a this this did area first as in of watch. that

current and monitor year line pressure expectations, activity for severities with quarter we observed our XXXX. remained frequency we loss As both March, in accident but on the additional claim claim in accident

we respect increase example, physical repair losses an our with versus a to damage to in time lengthening coverages, mix repairable. observed and total of the vehicles For

a the we consideration, combined Taking ratio injury this data underlying mix-shift all continue current at booked quarter into severe XXX.X. experience bodily coverages, For an more accidents. to of to we

year of We which development $XX auto accident quarter also physical recorded activity. XXXX, related damage losses, related million to year the primarily to fourth prior was

accident no elevated was as year in reserves recorded offset XXXX net we and prior liability, in auto increase in activity For by prior. improvement years XXXX

to prior loss premium continues and the team marketing steady Written actions. year, the Lines increased rate points lower spends. trends increases The was X% over of offset driven indicated, driven decrease to in cost experiencing. Personal for file successful by we ratio primarily rate Chris are by X.X expense As the

and in Tornado casualty which events million, $XXX Coasts along current of winter includes were With the respect resulting regions to property over from CAT, events losses storms the wind accident designated XX of East United this impacts CAT TCS significant hail there and several and States. and quarter the across year West

prior development were net a Total primarily experience general package and reserve year driven COVID-related reductions offset compensation claim in physical year. were auto reserve accident million in zero and favorable in as from by business the in damage was reduced reserves by Commercial, Workers' increases reduction XXXX reserves compensation severity $XX Small liability. and worker's essentially accident

Turning margin to earnings core of group the earnings quarter disability X.X% and million Core first in premiums. Benefits. $XX in ratios fully life reflect and Group insured growth lower loss and the

As loss costs the reminder, quarter. experience we underlying perspective, tend from a first higher a to seasonality in

life the significantly expect in Group benefited the impacted loss from trend the full-year improvement in as than was prior-year ratio by estimate. So lower XX mortality points reduction be loss the Earnings pandemic. quarter the we reflecting ratio would a for the our margin to

earnings new reflecting premium favorable loss to ongoing due growth disability in our customers quarter of disability as enrollment incidents. long-term insured persistency strong positively growth from customers. X%, the our business strong was benefited growth well points the as improvement as trends on the Also employment focus as from Premium for existing also ratio, well impacting enhancing was and X.X continued Fully sales. experience

results, portfolio investment diversified solid Our Financial Sector amidst produced volatility.

For the quarter, $XXX million. income net was investment

than benefit total the before fourth yield continuing annualized limited from quarter. rates. X.X% is modestly partnerships interest The was higher portfolio tax, fixed-income excluding Our to higher portfolio

partnership estate sales limited slightly returns as the we our fund were were real Our than and property partially equity annualized we negative better expected. These the of offset X%, of estimated returns valuations returns underlying private returns X.X% given as portfolio annualized quarter. absence in had in

the forward, still Looking LP believe be early the high to quality with we quarter rating second A+. it of overall credit average will quarter. similar results of in quarter, first is The remains while credit portfolio an

Given the our the exposure, real interest deck. holdings additional baking in provided we estate information and appendix slide have earnings of in

investing index the in holdings in primarily we Suisse and ATX. banks, XXX,XXX regional than three less have failed had We through Credit no

limited are see and commercial mortgage the which grocery-anchored own $X concentrated multifamily, As you of exposure. in billion centers loans, can with provided, we in disclosures industrial, approximately office

is valuations have LTV the portfolio Average comfortable properties and we focused our areas. and importantly, geographic Our stressed manageable. are that are XX%, 'XX on maturities is high-growth and 'XX for lower

are for We manageable. 'XX properties loan also expect 'XX maturities own These these securities. holdings mortgage-backed a We of with complete significant secured $X.X levels will of billion by level analysis holdings diverse and of underlying be pool subordination. also and commercial

Turning to capital management.

During the quarter, million repurchased million. X.X for $XXX shares we

authorization of we We to macroeconomic end but December we are the quarter, XX, have remaining share consistent As on XXXX. uncertain, well-positioned through recognize sustained of repurchase the results. billion industry-leading backdrop $X.X deliver the our remains

our result a is direct success of steadfast excellence. operational Our

will back I turn now Susan. it to

Susan Spivak

Thank you.

process asking Operator, you take question? your to a could the for repeat ready are We questions. now if

Operator

from [Operator go Instructions] ahead. line now open. Brian, UBS. Meredith your for Brian comes Our from today Please first is question

Brian Meredith

Yes, thank you.

on year Lines, curious. running to Commercial range the make question running you're what forward you pretty in ratio just on the see I'm the guidance above And underlying range, midpoint should number then we guidance, confidence, your be combined Commercial? where lines, of obviously, gives guidance the also for kind continue going to and of of Auto? Personal kind is, First Personal to able to here you're elevated going improve in above your

Chris Swift

for joining Thanks Chris. it's Brian, us.

you're asking the implications Commercial Personal I and about think probably overall. and Lines questions

we're We've inflation the Personal various than in anticipated continued with we in elevated Lines and scenarios I I clearly, quarter. facing run what we ago. Is the and would you So Auto. if pressures second Personal say, share -- again quarter the headwinds third that a would first more on quarter its feel severity

of And for that year. to six the had then in four it on pressure auto fourth we loss probably quarter the puts points ratio begins revert about and expectations to full the

achieve I is increasing highly. on based and That it second think couple confident, and the we then quarters next Commercial what the on remained targets year, increase then three for a highly of impact set over out year. we've half will Lines your one, reasons; premium your last into question of objectives and the written, earned will this

is the if to also and you we're talked and about is to mix happening businesses. improve that Obviously, think talk then about more property to initiatives just to improve And selection, that our margin I third maybe improvements. contribute trying casualty, will business overall to others underwriting something we shift. the that have our risk don't enough margins the we've is more opportunity in overall all

year. will the it'd market on and ratio year. out will and all we we in goals I to Whether we throughout for initiatives we that or the the didn't that additional that middle get so place be have and that it expense think Specialty small, see Both loss our build set achieve in leverage ratio, the our I numbers our Global demonstrates

Brian Meredith

Chris, business. then that you're talk you And but it little Is volatility Is property much, just bit Maybe what's we it's it reinsurance a should decent-sized about it it additional talk business, becoming helpful. about we I'm reinsurance about some forward? How a really a create book? that's book? think will casualty it, going in Great, can book? curious, the a

Chris Swift

diversified his it's obviously a book and it's would say a team, maybe a very add diversified it's it's a in Navigators, approach. but it, very casualty. book, I we've color, acquired have been We've since thoughtful would thoughtful I Yes, Mo property up of

with grew pricing base you I year think our growing contribute does its shared key property. Global in over to and quarter with last XX% is premium Re about improvement a property, basically we initiative it XX% But this which

does book, little global very to it's So U.S. it's contribute. have going exposure. But a it's and I a think of bit it performing well

Brian Meredith

Thank you.

Operator

Thank you.

from Jefferies. Our next question comes from Kinar Yaron

Your ahead. line is open. now go Please

Yaron Kinar

about over so trends the see of loss ahead is And it -- X% Good it like on the to that still just you. first seemed specialty you to Specialty morning, I Thank is about year. specialty, loss going trends, because verify in was think can want everybody. question of side also, you your talking of regards where with that. the talk Maybe just would course I My Global pricing. competitors one

Chris Swift

it's I greater. public XX% company Yes. domestic to because Specialty, got Global and million I about of D&O an don't data say public gross company than it's books, international $XXX take it's would a points, out, which D&O are give our just mean, or I both in in premium. outlier you negative company public such it and rates couple of

you in think, is of public in that's that I excess Lines out our I mix is when up put total. ex-comp business that there. X.X of if our stat, book But P&L our we slides give I'll exclude X.X company Commercial I've to well and X.X%. another it's and goes the investor But So long-term. sort pricing X.X% in

increases of points margin, included. we you D&O about that Cost company basis we're spread. goods still up probably points if have meaningful a of XXX XXX goes basis you meaningful and expecting, if sold It's to that exclude public so healthy

So it of being pressure but bottom protect a very that's line. rates, all line business willing right, to and sensitive that impact let we're you it the which is our it's line, hurdle probably business. you the on small put it together doesn't we're we go much point, how will that But why, see a will meet top

Yaron Kinar

it. Got

Mo Tooker

add, Maybe just to this is Mo.

particularly lines about good outside the we D&O. public think feel of I

to property rates Those really marine growing we're expansion, Chris for additive margin wholesale the that are talking nice is about. think all at book I wholesale books. the auto,

Yaron Kinar

you on or do commercial? that Reform, on on quick the see And impact you. a businesses whether any Tort side your Thank then maybe personnel one Florida having

Mo Tooker

development Florida to Tort of sort are negligence, mean, shortening state, the to contributory Reform could Well the one-way provided, period welcome whether fees trouble there and being it'd more contribute of file that a suit. help making you I be some is stable Florida we're statutes obviously limited, attorney's that

So all that positive. is

I litigation And impacts contained in suits BI picks, really question, in short-term think if any being and particularly bucket. we you're if is it you're our asking loss within controlled don't the elevated there at on our is if potential so. filed, -- think

Yaron Kinar

Thank you.

Operator

Thank you.

comes Fargo. now next go Elyse Please Wells from line Greenspan open. is from Our Elyse, ahead. question your

Elyse Greenspan

Hi, thanks, is Personal morning. My on good first question Auto.

still your in guys industry you else or year everyone expect mentioned to still business are to there trend 'XX. So you it pushing in seeing is start that get just that the you response guys for you to so Chris, you to margins and elevated why this Obviously, previously back year get in expected? you still is are next target convinced price than more the can that or trends in

Chris Swift

versus is Yes. ask simple elevated, remaining Stephanie math, you We I my and high-level I add Elyse there and commentary pressure just then sticky, to the raising hers. would are rates. some right. severity day, loss data as at effect, that trends words the is got the add support Beth like even what works inflation of though But are will end a lag mentioned. on on But it think repairable described totals

would us achieve file so said, can in points we've the of our target effect written approved basis book, we we increases it book rate what XX.X%, quarter margins add? you on a confidence in as the of basis, in Stephanie And rate XXXX. this We've But the gives that pruning states. the cumulative got and XX

Stephanie Bush

Chris.

you profitability prevail towards Elyse, launch. rate our I achieving adequacy, framed it strategy XXXX remains and our unchanged think well. in at focused

is the and those meaningful of work approved the the the you that that how reflection getting it's sequentially would points again have a a its plus XX truly the through filings, And rate, over will way step-change. book. XX the that So rate we're quarters prior see we

the as in our filings. Beth to Chris What prepared their in And remarks. first has been and quarter alluded already into we and put observed contemplated rate

gives every we're single hard confidence. one dynamic So process day, it's but a us that and that on working

Elyse Greenspan

then Thanks. And Commercial on second my question is Lines.

that to earn-in the thinking other prior through the to through as the is some next Should and three looking quarters there for flow a greatest we when rate seasonality as year-over-year three pay quarters, guys rate year? be continues improvement question well. are meeting about the going the in in you're attention fourth to to the to there we that So as in of pointed any that back need or to response the pickup, expenses quarter earning go you expect we are

Beth Costello

believe I you'll to three Yes. we expense think don't explicitly. next ratio. there's the loss ratio seasonality see need to pay any over in do attention the the I But improvement and quarters,

we've rate. business shifting talked us. earned about mix in for what Coming Given

to So all improvement. those that will contribute

would and we I at the to three to it a that Remember, times today, for we've data Elyse, that XX others of we and whether next will XX, by year expense about but improve year, we headwinds be to based guidance. point last loss you point, ratio think that comp. finished it we last X talked the be guided improvement, We that by fundamentally and in workers' from the ratio offset XX.X on or with believe we some debate to we're a first driven seeing have our improvement then, that feel don't times able will XX.X. the X quarter improve

get combined to basis an underlying to last main the are improvement So from components how year from on those ratio we this of three year. -- a

Elyse Greenspan

the color. for Thanks

Operator

Thank you.

Alex from ahead. Sachs. Goldman Please comes question now of Alex, go your line next Our open. is Scott

Alex Scott

Hi, good morning.

or non-CAT just had normal did this commercial one higher a not? more year. level to When expectation? losses compared First item. to depressed How that guess guys those a losses as I is in wasn't higher than whether I you quarter little the to mentioned bit I sure interpret normal of relative housekeeping last non-CAT

Chris Swift

I'll expected, Beth the a you my else year. ran on ran But hot there and add and add? that than I anything small add between right large middle to Small Beth for would color hers. and I'll say Middle better would ask is No. and but little expectation there

Beth Costello

small small well, elevated and and it to market. little a offsetting both middle little relative at think as Commercial in again in middle we bit look I you benefit No, captured

Alex Scott

follow-up then a trend like like get and there. loss I versus just your it on Got guys And trend you that X% sort maintained that? some way on you've frequency yourself high are positive line in about workers' thinking loss are when booking. comp. with my of I is pretty the been guess, probably you loss trend It seems of the severity the wanted frequency through mean, you I to thoughts we've within The way thinking peers credit you're seen there? larger that post-pandemic? for giving lower some

Chris Swift

So, Alex.

reserve But or do that we initially expectation and And continuing we're frequency year, I year severity a frequency, negative basis. data at on not for severity frequency have price X%. we're granular right year-end think would expectations. but The trend just it a our that talked slightly we've a even outperforming about into this with we've about and in-line side trends. think then severity reiterate. on on the when improve I I for we will last Maybe talked better that. that. and providing

Alex Scott

Got it, thank you.

Operator

Thank you.

from from open. comes David David, your ahead. Please Evercore question ISI. next Our now Motemaden go is line

David Motemaden

good Thanks, morning.

the So, spoke components Any see Chris, underlying the commercial combined XXXX in improving and we about how expense versus ratio. you XXXX. ratio can of the

the was wanted bit about here you wondering, what look over it or then you and there of underlying the with pick-up more year-over-year loss a at little anything improve if different between first like in out. rest talk could non-comp else the have with color that. in-line dynamics I'm excluding comp quarter get to the workers' comp to a year. sounds expecting comp, in and what's there to And But you're on wanted ratio just just expectations there? deterioration So all the the guys

Chris Swift

way would Yes, generally to by saying talk year-over-year David, right. to and that. best start expectations are in-line, happy our I compared is can. The through we right

of So XXth about if or a point a you XXth of two a point. want to quibble

but Okay, not. I'm

to again but of the so we're going it's the in it's board rest across is us but the again business. the and year. throughout there, and with be here sort that the other XXths expansion comp in And year, lines have of other from year-over-year, in continue And to that put two once offsetting of headwind the confidence and we ability that, the margin always takes, that gives

I point in again particularly property. just And would out

first-quarter, think our As over got property book. really commercial pricing, property focused in our And growing Commercial grew is look billion I $X at XX%. and of that up if particularly we as up are XX%, Retail talked is about I said we've XX%. We it. on up Lines XX%, I wholesale book, We've is about Standard lines first-quarter Global pricing

So a margins. the and in property meaningful mix going lift that's getting to and in help we are overall will

increases, I would say in again, price digits liability are digits our low-double and will which high-single areas also verticals general lines, our certain contribute. and industry casualty specialty with to casualty running

construction. for and get bit in And top two would little then a excess casualty our primarily We are to I feeling competition in pressure taking little longer little said there's for say there up pressure that and financing as and a also fewer there's primary book line is, I public that's on reasons company projects in D&O it. pressure a moving pricing both then is lined

it's we're for some and try So perfect a storm pressure to protect to our going little bit there. margins there, but of disciplined a remain

So together, those are that. the David. were follow put components, I I able And you to hope

David Motemaden

as talk spoken towards trend any your just going that maybe just appreciate loss you side. Yes, about I expectations liability And the the last your like think maybe then year? Have about loss in stable sort you about moderating follow-up. Lines roughly rest quarter. a had Obviously, Commercial we for year. It thought I of color. in liability on costs, also the a the the some that quarter the dynamic property, And expectation sounded especially environment forward? severity, had thoughts great. through lines on and of of second was very half then

Chris Swift

it. I don't we're property new I actually think is, getting would performs book billion, $X I to grow exactly I don't is think Yes. our there's think I -- add, follow it trying say I you're don't well, all But to anything what at.

grow property, protection we volatility feel as risk might it, aggregate we happen, in from a or bit our quarter-to-quarter, fortuitous all about still our As events more just basis. good per little reinsurance have either

you So about in talk it's property nothing to anything. would unless add Mo, new

Okay?

Mo Tooker

I No, years management. two just and the we're sure attachment making really now, right looking the or on our thinking going segmentation we is at back been to say on and about hard about continue points, jurisdictions, limits liability this working we've thinking three

seeing back So about which refers he of things I over years of strategy ahead of to about. is talking talks that a the some when think aggressive couple Chris past there's types we those underwriting stay use that to now, that of trends we're pretty initiatives, are the the

David Motemaden

Got it, I thanks it. appreciate much. so

Chris Swift

Thank you, David.

Operator

Thank you.

question comes of from go Greg Raymond open. Please next line ahead. is James. your Our Peters now Greg,

Greg Peters

everyone. at companies, of can you back around and relates does I the pricing to down to come you Maybe of conditions, to the stick I participation? is your position D&O And to from go based market, or would go comments for Christian, costs being and entry there they wanted barriers if while D&O? XX%. talk are morning, you to component your Good public the have business imagined to about, there switching in carrier just it level require have next. the and go customers to underwriting but one perhaps do a as reduced the with flexibility on some

Jonathan Bennett

especially think is this the of or know several about into new Yes, an dropped Greg. just have spacks At what number of general. I have whether on be seen away, same exposures IPOs in talked and our it I the space, D-spacks time, that excess entrants competitors start. basis. or Yes, I'll we've

is the talked relatively to about booking is think the a referenced. I important of million $XXX D&O also financial part -- Chris note that lines that we small Chris our it's as it's earlier,

that really working anything been day-on don't I think we And we decide ones with on us have risk-by-risk quality holding which in day-by stay and there make market, is which won't. will to hard as we risk decisions ones we

also like liability, financial But types book, other pivoting time, management at liability, Market the resources we of towards parts same lines Small customers. Commercial, professional of the like are Middle

see in opportunities fairly the throughout in the market, of D&O to that a I think ways. what in we portfolio trying be other precipitous we're So public nimble but face is drop

Chris Swift

on access is, have bit creates access in to and towers, said, and differences come go, I do new as flexibility We're in. you primary side the opportunity Greg. the would little which capital there versus come it to side. the and relationships new for add entrants more players a most primarily are

on see but just a little that's point of the stability bit Let's view. more primary side, my

Greg Peters

sense. I'm in business Benefits Group your the switch to you the gears, look Makes at results. comments, going

business, on across businesses? second of said you And are peers? sort or going share advantage new spectrum gaining best think think the different your Is your outlook smaller more in component I you something as this in I an market sales. guess, for the a over I and about of middle-sized coming your or in step change distribution the is is there or the with -- just that's and you position market the giving network quarter

Chris Swift

comment, I'll ask but to I Jonathan would say. Greg. Yes,

leader still our in as in recognized want and I said my other book, improve of to segments a growing Clearly, that's and in but XX% market we're the offerings in probably segments. grow mean, to national there. our focus continue do accounts, all As I we prepared remarks. we're

we're I impact our But what think this just today totally the cumulative important in it's stands of said before. I space and for investing, it's as brand

You're right.

benefit all returns trying advantage as add? get our in we're to the both while this think products. And appropriate for I of take you book. recognized supplemental one But premium remaining of to it, disability would Jonathan, we're organizations the disciplined rates space and what life,

Jonathan Bennett

is with points start every different to a the national of customer on on All national every not Chris. to present right bit the to business market, for at comes year sales, excited account the we're different fortuitous, to had a is nice some ways account We business, a year so run which times. opportunities market add our and different in every conversation book.

feel and a and we the continues are to that player there. So large case we'll continue in compete strong we market like

smaller much, But initiatives and well there, work success of channels been And we distribution then I the it's enterprises. accounts call are our good number our very focused regional we through like think what things seeing focused we've we pretty enrollment. as mid-size down on we're and ourselves into

with and intersection in lines, from I more strong along employees to it's benefits I line. advantage overall capabilities time drive top take year, think improved great in of employers helping those add interest our to to coming sales new to last had of access that it's a and interest a season really and coverages new an awareness enrollment online, new us

So those things cycle worked coming market in together along that with a well for National. us

a first I quarter of produced result the great in it 'XX. here think

Greg Peters

Got it, answers. all right, for thanks your

Operator

you. Thank

open. from line your from Zaremski Please ahead. is comes now Mike, question BMO. go Mike next Our

Mike Zaremski

to most very just or stress a asset hold have or been first class headlines of morning. disclosure. of on lot makes have you that and make worse Hi, given sure scenario than worse -- it Thanks. appreciative not the there asset thank bit, asset I'm as you guys that Chris, profitable capital a are a where real there and scenario the commercial I get granularity -- estate a had a to mean, that class, back additional profitable management sense is I'm prudent sense and does pockets remains a not just I reality. curious, you it that analysts ever and if persist the on now it's very would maybe good questions the is done does but for make guess class. question that were just

Chris Swift

developer borrowers and would lenders Mike. and matters, color say, with me, matters, I'll ask Beth add matter, Yes, type her excuse or details location to I'll property is experience matters.

cycle confident ability have would here we're manage that what in through but you and with still Beth and flexibility our So capital, we're optimal balance add? a this to pretty our sheet approaching

Stephanie Bush

as results, very so sheet. with we're aspects we into good our with and we overall overall on can evaluate our take that here that. our agree stress the balance mean, you when regularly and And feel share from sitting of all see been capital consideration business would path our I strength the forth. on today, execute repurchases of I levels we've Yes, that on and and continuing

Mike Zaremski

to guys you there that helpful. and touched New dynamics well guys business the even any on dynamics Hartford changing my there is have doing Bob great. just would prior has Commercial Thanks. that changing momentum for are in this and continued you allowed follow-up, more And kind known Okay, calls, win so normal, any of but the be Small

Chris Swift

what Stephanie Consciously, said for we with I let I'll mean, to product my built new CSR's prepared customers. I it, intuitive, our new both direct and remarks. a add just in technology. but then repeat I'll Amazon-like features, use easy

So mistake, it doesn't by it's very intentional. happen

That to developments for Stephani excess the in quite surplus some achieve going trying attack Particularly in. the we're the But aggressively in would latest lines. and to of you what what investing we're As marketplace. say?

Stephanie Bush

question. It's a It's phenomenal a terrific franchise.

we're at combined accuracy XX scenarios. business are XX Beth As new pricing, ease through quarters this ex-work really growing, navigate ratio, retention, strong growth, space. historically stable stated in in skilled workers' successfully a We consistency all and compensation line, underlying record-breaking with a lines multiple row standard incredibly and sub the for the economic comp

time come And that our expect experience clients. right agents to a digital seamless and for their have the values their coverage provides

this space. So we believe, have really we winning for formula just the

start. we're off towards is ourselves mentioned, to as we're pacing a billion. another tremendous and And Our competition of greatest $X milestone Chris

Mike Zaremski

a I could, direct this. follow-up If on just

Commercial. open Thank happened for a couple to color the Is E&S in is would mentioned new be up small like just like TAM just or that I regards commercial calls any of are you there You've of last likes Small the that much. Or there Kyndryl great? that very initiative a think E&S new and in?

Stephanie Bush

very we're grow small to property E&S on to results. the $X.X business addition focused liability a that accretive pleased expect the market meaningfully a franchise. time. terrific of the billion with growing and a of And portion growing lines. our and for We're our and It's it's and and over and us story, another candidly, opened up addressable wonderful it's Sure overall binding attractive business,

offering, So we to us and it's terrific more just it's you. wholesale relationships the have business and capability create total it's be in tremendous small offering allowing a Thank a to universe.

Operator

question from Tracy, line go for comes is ahead. Barclays. now your next today Please open. Tracy Our Benguigui from

Tracy Benguigui

are What signs firming, workers' that of California morning. good you, you that Thank comp market rest seeing ahead which mentioned of is too? the of the your is competitors showing

Chris Swift

I Yes, I probably That's also. would more. that. read cautious. a Sanguine we're and say little

Tracy Benguigui

early tougher states other there firming any that are signs showing this is Or at of stage?

Chris Swift

green Very shoots. We say. closely. would any We're we see shoots. I green if watching for report

Tracy Benguigui

for Chris, that pressure you points add of on should that expectations year. had headwinds auto the you loss the auto six four to full ratio your mentioned

guide auto combined which So of how XX%, XX% underlying should that influenced for your personal XX, ratio Lines homeowners? is and

Chris Swift

prepared on the able to Expected in to I'm have. Yes. to at but do I time. all would this say point be math that, that's

history. can the You can you the see waiving see premium

I think you a estimate can reasonable make

Tracy Benguigui

you. Thank Okay.

Operator

Thank you.

from Our next is Bank go Please of line question Josh Shanker from Josh, open. your America. comes ahead. now

Josh Shanker

had the 'XX, Maybe commercial last morning, but. wrong, I this Boy am paid claims the Scouts I $X.X good $X.X and payments the year looked billion everyone. billion, of quarter, in settlement. at you Yes, of segment. in the In first doing quarter first you but

low. think I front doing been maybe in if don't assumption mean, is substantially and Am me, that that decade. this it's number Commercial million, was your a loan of I reduces to to $XXX it or in is full-time be? doing a but -- claim I which quarter, wrong series I have which I going overall payments am the This don't wrong

Stephanie Bush

it wrong. actually Yes, doing

you it XX-Q. week quarter the Boy help We looking first Boy in that doing out. actually last the the April, wrong, Josh, so in have disclosed yes, Scouts in settlement yes, our we we at settlement Scout is numbers you're we'll and that Okay, paid not

Josh Shanker

in read All that said, March XX queue. it Maybe I the wrong.

it, only that's my that's Okay, question.

Operator

you. Thank

Our Han your open. comes next question from Please go is Derek line from Derek, KBW. now ahead.

Derek Han

lot. Good morning, thanks a

in whether really impact Small from going the stand. The volatility at have can't on I'm as companies. well. and Commercial new that's may smaller property-related benefiting all Just to increase you business curious, think just premiums. superior XX back be growth regional I an throughout mutual going

Stephanie Bush

industries track. and both of we from carrier it's and sources problem getting comes the Prior where current organic various variety business carrier growth a starts Our widespread. business pretty and new we're

find So those capitalize them. on we we opportunities are and

Derek Han

numbers Got then just question. it, you. quick And thank a

I think trend the you and said between Chris, improved has loss margin pricing modestly.

you. growing there'll think be that bps, XXX you previously XXX helpful. is kind quantify if can about Thank kind was I of it bps, that of

Chris Swift

XX say to bps would I Derek. G area. XX So,

Derek Han

Got it, thank you.

Operator

will time. to Susan over the remarks. this any call-back hand further At you. for Thank Spivak, I

Susan Spivak

always, available are have today, reach Thank afternoon questions us didn't additional on for this joining to out we call please questions a if you as all and with we and any get your day. today great the

Operator

Thank call. you for joining today's

disconnect You lines. may now your

The Hartford Financial Services Group, Inc. (HIG) 28 Apr 232023 Q1 Earnings call transcript