HIG - Earnings call 3 2023 | The Hartford Financial Services Group, Inc.

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Operator

Good morning, ladies and gentlemen. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2023 The Hartford Financial Results Webcast. Today's call is being recorded. [Operator Instructions]

you. Thank now Investor over Relations. will Senior Susan the President, Vice turn I to conference Spivak, And

You begin. may

Susan Bernstein

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

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

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

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

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

over to call turn now the I'll Chris.

Christopher Swift

represent builds first the financial XX% joining Lines of premium the us. Once half exceptional momentum Group again, in and thank delivered earned achieved you operational Hartford's The morning, aggregate, the which, for third Benefits and and results. year. over Commercial of in quarter upon performance Good

competitive position, on our expand priorities shareholders. for successfully delivering superior We returns continue executing to strong and

quarter. P&C, Benefits pricing third Personal combined reinvestment in higher Lines from in call of Strong X% to property, increases margin Commercial with an now XX-month to double-digit premium Group with X%, attention rates performance your Top Let of of home. across line of X% a yield including earnings climbing highlights Strong auto the XX.X%. me core X.X%. underlying of Lines commercial fully and with the growth investment XX.X%. driving and core ROE portfolio earnings trailing growth insured ratio

deliver the XX% These ROE results outstanding a us earnings are of on to year range and XX%. in keep core track full to

the payroll, resilient across points economy to and sales production which including remained environment point businesses. levels and of data markets, U.S. Hartford's As the has be supportive industrial I of an The to recent robust look strong continues retail solid

premiums XX% Small margin. written let Now business. third quarter were into deeper growth dive me In business performance new another $X.X and Commercial, billion in with by the sub-XX underlying

product, marketplace, $XXX package we best-in-class a to up business Spectrum, call million, continues in XX% prior which of approximately contributing year. Our over new premium outperform competitive

XX%. over quarter surplus written for new lines addition, XX% growth grew in of In business the premium and excess with

expect to premium E&S year. million full $XXX We approach the for

of the This ease unmatched pricing overall Commercial, of unrivaled deliver to incredibly billion conducting industry-leading and performance am premium with Small outstanding written products is this results I continues pleased accuracy. with and which $X exceed poised business to in business year.

X%, new rate and Commercial Written premiums grew execution business Large excess strong great another reflecting growth lines. in our & Middle had quarter.

property industry's while grew grew XX% property general XX%. book Our large

increase. for or thoughtful are a and we taking a the year approaching to property within a Lines, across disciplined premium XX% approach grow level to favorable billion market Looking Commercial conditions $X.X full

CAT exposure than our losses, CAT which market were year-to-date evidenced focused are as managing our share. We on lower our by

in made underlying talent, position Commercial, Large the best-in-class sustain advancements, also advancements pricing and our science this benefited with data from growth business. us & Middle to to Those property tools. back combined favorable were reflecting losses. capabilities, well Coming Margins underwriting margins profitable exceptional, in

XX% renewal Specialty international momentum new written written pricing pricing up net the flow business market. in pricing growth results and wholesale XX%, premiums strong Global XX% number and lines. driven including renewal in new been excess by U.S. all in and above to was and with growth in key quarter, business outstanding of wholesale, marine the in casualty the strong international up is continues been has written building saw in has XX% energy. deliver above Property XX%. year, Submission a growth Within

the In addition, top product excited portfolio. expansive our from remain line about the we ongoing to benefits

Our underwriting X quarters. In in Global short, developed market Specialty, few the underlying gains over capabilities combined discipline, that in years for has along with targeted driving a the execution hovered past stronger. the past ratio never are stellar mid-XXs been with has share enhanced our

written renewal with flat the was second pricing quarter. Turning to Commercial X.X%, Lines' pricing.

over still written and to pricing well. up compensation, with liability X/XX also as and renewal commercial, is liability. remained Excluding strong and sequentially public auto with property Pricing and other liability rose while general pressured. auto lines level property, XX%, that in pricing pricing workers' Across X%, strong, D&O in general is casualty nearing

margin top pricing exceed quarter. renewal remains highly achieving written top in pricing remaining In All continues positive Lines summary, loss where persists reinforcing workers' expectations, the slightly Commercial written in trends, expect Lines, our in compensation, my on I In margins to at momentum expectations of ex growth cost Commercial renewal confidence the comp continue. line profitable in for year. to in

to Lines. In response objectives unwavering. home. environment, challenging Personal and execution are loss and I this auto our both our continued cost with in focus, to elevated am Moving pleased

finish renewal year the we fourth the we as at quarter, quarter, June, we auto third which year. a promising in as achieved nearly into continue XX%, for the to During Current price trend increases the written that expectations accident loss held quarter. development updated rate of expect

value XX.X% fifth and trends. cost the In net is book. loss underlying homeowners, increases, this pricing of written increases pricing double-digit renewal quarter comprised of outpaced insured consecutive This rate of in

competitive is with innovative Prevail. within a Our digitally the Lines Personal modern, offering, advantage focus on enhanced preferred our business market and

This we product of and are by states growth. prospects future for in XX available optimistic about the end will this be month,

achieve rate In I expect in confident return the business are over the to of adequacy in am premium. new to fourth pricing states, we quarter, business actions this in half targeted business auto we XXXX. taking will representing X/X new profitability the

record, of disability mortality core X% Group trends In and earnings focused execution, X.X% both premium of $XXX quarterly growth outstanding. of a earnings margin a were and million reflecting improved was strong results. continued Core Benefits,

loss low long-term trends both life, sequentially year-over-year group incident reflects trends above historically disability recoveries. claim and and mortality favorable disability pre-pandemic remain This ratio quarter's levels. In improved have but

driven our customer line. Growth strong sales. marketplace, the of commitment leadership by XX% Overall, book outstanding persistency top in portfolio year-to-date use Looking our as above position. strength to and of the well product plus cementing diversified at the experience Benefits' as this our was data Group resonates through technology

their called the the of we touch and I some heard our from share Council turn a acknowledgment call course of Brokers strength of meetings points Insurance me XX-plus Throughout Beth, over let the Partners and at out Agents Conference. to the CIAB, Before our takeaways broad Annual that franchise. consistent of us recent the strategy expressed years. over their best-in-class have of with grow They our tools, and been never a the view our come set, digital also product of strength stronger. with agenda number to desire business the to team our execution relationships of innovation as and unique consistent have

tools, with strong strategy we distribution market. delivering partners ROEs that ability consistently is capabilities, our enhanced range. in and share while Confirmation am the are we validation relationships, core technology are earnings industry-leading on position combined taking track returns. I digital With XX% the in to those market record, in state-of-the-art confident deliver from delivering our leading our to that of Through XX%

to Beth the quarter. I'll call on detailed commentary the Now turn provide more over to

Beth Bombara

underlying consecutive of Core with the of Small XX. excellent Thank continues share. underlying quarter and losses. and of X% million ratio combined were with some million for the $XX.X. core $XXX property an an per ratio quarter non-CAT or combined to underlying Commercial of earnings a ratio of with strong $XXX growth Commercial $X.XX diluted earnings elevated had below you, quarter combined This is very which Lines Chris. XX.X%, XXth deliver results includes an premium

of couple Commercial Large due to and higher XX.X. losses D&O lines a strong of quarter ratio another primarily of in due loss was favorable from lines X.X combined a non-CAT policyholder loss This expense marine to XX.X%, Specialties due point strong ratios over improvement underlying lower international margin exceptional & offset an the written higher was improvement delivered of in underlying Middle public and year from and partially premium and bond XX property point global pressure reinsurance ratio well $X year, as rate Global book. ratios the a including by a billion profitability improvement. basis dividends losses prior in driven U.S. a financial by to as ago, large the

the an quarter. expectations. In XXX.X% XX.X% Personal is was of XX%. of combined which million with combined expectation loss with the combined for consistent underlying was quarter with underlying $X was core ratio quarter, second line ratio Lines, underlying Homeowners ratio for The from our in auto

first accident year no loss the years. made prior to the adjustments we of and from Importantly, picks half

In of increases driven The the the loss marketing a premium are increases by pursue written Lines were earned in to we XX.X% XX.X% auto, points, we improved XX.X% we basis As X% offset over XX.X%. by pricing In X.X homeowners, primarily pricing to Personal Written successful and and prior by year, steady and driven of unearned. rate on indicated, increases Chris increased continue expense rate ratio written achieved increases cost pricing lower experiencing. spend. trends actions.

were P&C $XXX quarter, of catastrophe prior year before current With million. the $XXX losses $XXX which accident to of to which million respect losses in included compares Hurricane catastrophe Ian year tax, CAT, million

effective line industry number elevated storms. quarter, our believe were were our aggregation with we of has helped expectations convective losses limit increased losses CAT our discipline Although as results and from that for to the in again underwriting the our management this

was compensation in reserved as favorable $XX package and Total Commercial businesses in $XX net prior in Lines offset with reductions year increases workers' liability. by reserve were accident development million, modestly million general

X.X strong Group million earnings of continues growth versus to X.X%, loss margin third group improving core quarter a ratio an $XXX for prior disability XX.X% with of in XX.X% The to Group deliver prior improved the X.X of year, life results. strong were loss reflecting Core down quarter and disability ratio from mortality long-term with trend. points a results year. reflecting Moving Benefits. earnings premium the points

at improved to insured Fully efficiency. and reflects ongoing expense and customers' strong efficiencies, ratio investments The offset our drive in somewhat X.X sales points line meet greater by and evolving expense top continued performance needs persistency the XX%, total of of above excellent a premium sales million. quarter of the ongoing year-to-date fully combined $XXX million for This, growth contributed X% third to resulted in quarter. $XXX with insured

results. Our diversified portfolio produced investment strong

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

continuing Our yield, reinvestment rates, was with total fixed limited XXX differential pleased from annualized continue income and quarter. between than we X.X% the and portfolio interest yield sales be before higher tax, The and to is the second basis on to portfolio our slightly point the benefit maturities. positive partnerships, rate excluding higher

XX full expect We LPs prior year. about higher basis points than the excluding yield the will be

Looking forward on income we million anticipate to curve, LPs. in $XXX points increase based XX to yield of current contribute basis investment the XXXX, before about tax which excluding a improvement will another

the our Our private first sales. X of XXXX the the during of equity in annualized X.X% were estate and of the quarter. reflect returns months any return real equity Results resiliency absence LP

remains The interest with an the remain of losses rates. Net increase maturity a with impairments loan credit for an high the as intent-to-sell in portfolio overall credit insignificant, of mortgage million of This result $X credit of losses, average decreased portfolio. A+. along credit higher on rating the quality valuation allowance including

our principal respect of continue payments. and current loans with to All mortgage interest be to

to capital management. Turning

tenth pleased fourth the million we share We the expect an repurchases our remain point shares on also XX% is X.X yesterday of at program another in we in proof X. payable capital under million, repurchased repurchase announce were to quarter, in quarter. During dividend that the quarterly dividend consistent in and company. January to the the of increase for the decade and of last generation increase $XXX common our This the level

back sustained that have results turn technology We place our in deliver results. strategies, Our I call and consistent, to the third to to succeed. will franchise continue quarter to demonstrate believe that we Susan. talent now the continues industry-leading

Susan Bernstein

Beth. you, Thank

will We have minutes XX we Operator, about first take our now for question. questions.

Operator

[Operator question we Instructions] take And with will Meredith from first UBS. our Brian

Brian Meredith

Chris, questions about a couple of here.

a had little in Market's quarter. and I the unpack a on want this premium other the growth one, reporting little know which comp I it some growth. unusual been bit Maybe considering little the side, at saw to in that surprised going First a a I anything slowdown. we Small Commercial the just a Commercial on? have premium there can you dig also Middle was difficult Lines then but And we companies bit, slowdown

Christopher Swift

Brian, thanks for the question.

here, XX.X%; think written if middle, I sort results look up just context just of just the at on small, premium in year-to-date X.X%. you

XX%. New sales middle, XX%; small, in

So really we're of at pleased margins producing. those proud results and particularly highly with, they're profitable are that the

I let we than team, get the Mo And exposure would that is premiums -- and on not in time price the half we the and positive, terms discussed X still the his the sequential I'll there's we're is on would And business growth main say we'll year period. And moderating, a add times audit I the in evidenced by disciplined is underwriting. July then happened think that basis. second not conditions let I and more expect, in first quarter, but it the management to overall go. lower particularly as that going we're that say of a if color, themes remaining

growth, So But not robust add? again, positive but as what you early year. the would was it as exposure still in Mo,

Adin Tooker

by market year-to-date underwriters to about would I we on really specialty a the We there. by lumpy. the tools Brian, are But little then that with be And see context quarters, growth can equip our maybe as the they executing area product, reiterate, in good Yes, you of the in just and say bit of XX% on those. new. feel

further go. we we where in periodically sometimes, some going see than especially the quarters And do and -- is months would market just

the like made bit that broadly, those underwriters but a more really really little see feel did now, of months in market the closely. heats nice I the And job. a quarter the So beginning periodically. watching exception, are at the these months when you good decisions team especially I and think an up right our we're underwriting But of quarter

Brian Meredith

And inflation X% of to helpful. in Great. comp Is a business medical calls, would on we've conference And about X% there I seeing fairly into believe that how large your about what know don't TPA cost question. that now. and talked the you're they're is That's then, I this but workers' what kind seeing? their right was play case. results? out of Chris, chatted that before second comp

Christopher Swift

Yes. not new Happy a of that, sort comment on to to there's going with but I'm -- anything you. going to share be

context highly the in our workers' again is of think comp I line that profitable a business.

We haven't at set we beginning in of assumptions year. them since changes medical frequency made this or any the

the and about as is talked actually on Medical things predicted. for exactly we are up put it, running as we what So almost we've and collect severity, balance price X%. sheet

don't last X% a probably X at year X bit, in X to trends components year a things as But any than We call point. I expect. watch it physicians, stays, of generally, be hospital it trend whether of all there's pharmaceuticals. it months X% medical less is the look though Actually, that what's up to this other that if out maybe severities little first I sort months, normal whether emerging for just price, the think say, is range. would we say than be I behaving are our slightly whether months, be And volatility.

than from don't it's as our steady So tell sit here as today. what I we you perspective know goes to other she

term talked Brian, as I the is our we've claims team still think about out. before, on the I to play is impact longer world-class. mean, But

be And and that elevated, provide think, within I schedules with buffer. term, a system, fee long appropriately. reaction continue networks prices the us our in place, raise function things of will We if to place sort have allow to in it deal

shape So I or to medical going surprised on from think we're severity us. get way, running don't any away form in

Brian Meredith

your And right? to relative probably well, expect the helps I would loss as control industry you

Christopher Swift

embedded to a the again, in got so us you we've engineering being capabilities. embedded of have rider, our those capabilities would second largest And in yes. lot Clearly, Yes. group, claims, expect

Operator

Greenspan with we'll take our Elyse Fargo. Wells from question next And

Elyse Greenspan

response first with wanted to question. first start to I Brian's the

guys quarter. rest competitive said of then just give can in market I that corrected seeing And some that. more July. sounds it I But were become folks what the saw you the specifically You in lines, want a us to guess, you forces like sense that confirm over within middle the of you July? competitive

Christopher Swift

Elyse, I no that. comment have might on

Joshua Shanker

most. just I'll July it segment that month. is it we on most where say into just would felt was the I areas. larger the specific we then month the account won't really say felt end. Elyse, Yes, the during the larger I the And get competition was

Elyse Greenspan

with we to guys then Any Anything There you the small a was years in saw And highlight adverse total of are but just comp. want quarter, the driven GL. you I reserve there? for color development Okay. or looking bit some a know development by it's development in number, little there. favorable was specific seeing? anything

Beth Bombara

Nothing losses Beth. large couple umbrella Yes, that's call large one over we out. account and I'd national particular Elyse, spread several years. on in of it's A saw that

So trend that. and of out, small as quarter anything in nothing again, indicative you the pointed a impact like new or relatively that's

Operator

And from with will take Ward our we Mike Citi. question next

Michael Ward

And didn't underlying loss think growth just it the wondering property, we of was should volatility has non-CAT in how change materially? on with property ratio, about outcomes I going it range the your why forward? your

Christopher Swift

thanks the question. Mike, for

and component, businesses, year. about commercial I increase very side. Middle up up; property In pricing our and was towards numbers of third feel pricing property general mean, of good in how the couple we're give prior and XX.X%; pricing up said property was also. growth was Market, XX%, across XX% large quarter I in $X.X a premium growth trending our both XX% about from As with we're our our we be growth just which from prepared And property grew a in my XX% here. for pricing billion remarks, a I'll executing Spectrum would you XX% XX.X%

volatility quarter CAT, as we're grew think, this say I perils, in incremental looking at were, CAT on losses the would strategy. small Middle national I mean, for a we're exposure. and year we're I offset mean, I particularly little take up we'll by story I well. quarter-to-quarter. about obviously think commercial more a isn't elevated commercial, We particularly total, build And with quarter, line better in at pricing property XX%. non-CAT property a property losses X that paid getting And other prior very from before, in expectations than XX% So expected & this total, executing point in losses to of Large. the with I fire, said lower but book this with

So from is I Mo, And the overall, know you if anything our add I color as the or as strategy think don't please. execution any marketplace well. far would

Adin Tooker

Yes. attracting about we're and We just continues base. We're to improve. talking based tool people here. property. talent to wholesale And on continue going set how just retail build a going after we're The

Rates We opportunity. hanging continue are conditions hanging there. Deductibles Terms and generally are an in see to improving. there. in

broadly, continue market. I the to we ability So our think to about optimistic really feel chase

Christopher Swift

in color? property what Small you would and any Stephanie, E&S add Commercial

Stephanie Bush

Yes.

we I the everybody to it's And double trends. quarter product. have did row Spectrum in ahead with stay for volatility. the of And many of years, experienced that our higher think well ]. is longer-term property But terms combined our I you it which XX% in the rate from as third under of digits underlying Chris you what in the at property not XXth loss that we've trend or perspective, recently, than BOP taken we we quarter, in over remind our just some referenced, as a framed will an is stated, [ portion accomplished

E&S an the profitable points achievement which perspective, risk in growing and of From be of XX rate of quarter a strong binding, business, of E&S our growing. portion continues to and property book selection,

about in, proud team's really the execution. all So

Michael Ward

Awesome. Maybe the seasonality. real quick on Personal and Lines

mute typical the expect can pushing pressure you XQ? we rate you're should in do actually the wondering, that maybe that seasonality? think Or Just

Beth Bombara

Yes.

loss comes Lines I'll we'd take between sort and out this goes. is be in that, in impacted auto year-to-date fourth break probably than we and Personal X-point and and to seen we've if Beth. of trend range. quarter So be what X auto out will it by Where to it that expect just really home, In higher where

quarter to year-to-date than other the more X be X points. that And the On fourth is usually expecting home, this again typically hand, we'd favorable by quarter.

Operator

question next Sachs. from with We will take Goldman Scott our Alex

Taylor Scott

First indications you through the a is one I comp. on just profitability helping feel the you I of just business, the I and X% great. development how pointing mentioned, about cost mid-single follow-up certainly, the has down us sort on reserve workers' hear the NCCI I of had you think trend. digits. the been another loss think, And guess are

how of I to we a margin you help that about this drag start the that that a there's think So going it sort you can baseline that you math. sort mean, with from -- of just the like headwind also year? into I get that, terms of even that in the when creates worse? should next through target does you think moving relative do us got mean, off year,

help be So I would any just great. --

Christopher Swift

I talk see. this the is is finish We'll disappoint and going But point. there to once think but to be pressure pricing. going But I from similar setup this be at you're mean, not we're year very we what about to to coming we going talk to year. hate you right, year I this next Alex, year next about continued

there's as We'll it's same I pressure, knowing pricing frequencies will, likely our most to pick severity medical X% performing in that that believe, range much better. continue but As improve.

our this rate on providing out-execute year, which a been benefit. plan is modest We've able to

very the still point And of of all what for profitable you in mechanics to putting again, manageable line it's out. into plan XXXX. view, it's at business industry. the put a least in is a and still heading always And from the our there's math outperform I rate of think spite NCC together, opportunities us to So going the the be

Taylor Scott

it. Got

And just on it ROE had year. a is upper about bigger being right right question mean, investment the Lines rate And now, with income, I should now. you're for making I you're contributor Second you hitting talked all to talk about. and Personal next of money then it isn't of start the range again. the taking, sort you you end

the is So there's those when the think that look, think I end sure may longer-term is periods to that right the way I your necessarily targets. more that to to and where you're or about -- suggesting through adjust that, top It's that, not than guide all not period ROE hear and through earning less going offset you're to you're a guide a it? I'm of But over ROE that going it that be you're long-term some the we go target that things potentially. and

Christopher Swift

Casualty, I more Property a it through We've predictable benefits. a it group Personal & but in to be our XXXX see be about going said there. tough think you it Lines got our profitability return right. in whether businesses, consistent, slog, franchise, whether all do we're is becoming more we

that the So and is not yes, It's the limit. range. We've that. added We'll overachieve outperform consistently try a the range word to to range.

and that hard always point, that best. we're good or -- particularly try to our XX outperform a to plus think But very minus. is is I And anchor do going

the in customers a agents are rate of just and We little happening bit marketplace may and fatigue be with not sensitive or brokers. to that may

have all our well on GL, enough years, why whether whether over the that from with to many components we've a of least commercial by trends period be with and educated it factors auto, be of perspective, loss discussed over need be Alex, it at the it whether we think time. the rate, property, I to disciplined continue cost long be been people

portfolio. think as a the the particularly and place, I head in into returns So with particularly yield rising that XXXX we investment industry coming environment still puts conducive a through

put So us think yes, and to to for good all it's limit try it I a not you outperform. range, but a still that's together,

Operator

Greg question next from our with take will Raymond James. we Peters And

Charles Peters

supplement, step-up of to quarters. I'm the look us several in in sensitivity of economy of over Benefits kind Group look business. the there's Page last marketplace you what economic about business at going If obviously pivot nice year. some remind that might your Can the the to XX ROE noise next I a like has? Because what

anything good then that the particularly number when higher. -- unusual third look the want guys the to there's wondering in call I you that out, helped secondly, boost And quarter, if at in results

Christopher Swift

still Greg, And well team, the I I and then maybe while providing Jonathan is a marketplace. trending you're again expectations in say, mortality to a about think, talked point slightly in insurance I'll start XX.X% And is is trying ask but way. executing to commentary. of the for basis of is our we've a mortality that to his I'll the add out trending book. normal, which ahead rate we're proud it Obviously, right to the Very back put additional life right ROE. into would that. though, that Yes, on year-to-date tailwind.

the into The other goodwill with a GAAP over that XX.X% that on thing of year. always tangible the to is basis given ROE tangible a like added I translates convert acquisitions just we've some ROE probably just XX%

a getting on back is contributor. what basis, to is would it performance investment tangible contribute. Earnings meaningful power So be I a will The somewhat think normal.

So one of stellar a I industry the leaders. for business us. think it's It's

I side would whether you at payroll an differently voluntary add little we number paid it's think, a We've could family new that economic what because maybe with on our on disability in leave It's trend? world I conditions, growing added components, a from than function and valued a of I is, and it's suite valuable today. gains. go think should the employment, class. conjunction But look and capabilities business with product be have people that generally it overall claims The Jonathan, performance nicely

Jonathan Bennett

Chris. overview, terrific a is That

of all lot of agreement with a So that.

some bit Greg, that of contributing, levels. some the of is now, think, asked gets very about levels. with Obviously, to linked the economic we and that right the a at often you to is unemployment drivers, business. I think, of the ascribed employment low line Certainly, performance and LTD

unemployment negative levels a we around is on as outlook effect, loose would a real terms attractive even still bit operating there's a we being delay its when something we right even that increase any not levels linkage. if But a into Even now The think that always between not increase, to the at we see that were probably hard drag to And future. be of levels. It's LTD. see in unemployment, going effect moderately, connection. is we're to if say, were there pretty that if of and

seem to side. on the be things in So shape LTD good

over other result. in the pandemic. quarter, net X the on about to Chris But of sequential terrific point solid level of for us. is post The Your one probably we investment down had pleased the a things that that's notable third been this as got that mortality with we being think in line income, endemic more quarters, We've outlined, more mortality. last quarter, improvement state with as

And so the bodes that. We'll forward. business but we're fourth that for one pleased moving to in quarter, again see the that well watch

and phenomenal recovery. job side disability levels the incidence again, is moment at LTD, pretty our claims around team attractive on then And this a doing

through. coming So we is really expertise think our there

sides whether we that's things both in think and LTD, organization. of comes our understand that through The is One we medical the on the comp about execution management or Hartford of

So really pleased with that outcome.

year-to-date. we're future, the with the necessary, monitor of and in that ourselves but adapt trends obviously to continue we'll quickly pleased the business performance as Where pretty I think

Charles Peters

Hartford. business. your sense. really interested That inside if what report was the I companies personal I pivot table, that it we're we're The is guess not at my other in where I'll And prior seeing development I as makes at Lines Personal to development seeing lines, accident year look adverse follow-up,

So a us in from different about the of reporting are a and maybe little trends some could status? why you maybe problems are talk reserve just to bit your development of that others spend minute terms

Beth Bombara

Yes.

I'll So start.

damage. liability first auto we adjustments as said we So all, in years accident any prior auto for make for did of line, or in auto to the physical our QX, remarks, not

the first If year, the related by quarter, liability remind did in the you estimates prior. damage for the the offset second those physical but releases first year, 'XX if in years first also about $XX we our million increased of and you, And quarter we for year. to -- for auto back and were you to XXXX for the go record half quarter, I'll XXXX

up So net that that's in is that why not table. development basis a on showing

the same others We were reacted them. to experiencing trends some we seeing. were that of So

I remain that at that, we know the our are quarter, thing that results well as the our accident in auto. year on sort As as have I'll I did looked for picks of pleased point last very unchanged. of And year-over-year the just third out first some prior said, in half years the because loss

underlying because we at reported ratio prior I'll remind XX quarter we've about booked in of have for X just for PYD And when to that X it third that be probably 'XX, loss you reflecting that higher look you year points seen. development the would year auto, some

So hopefully, comparison at are of year-over-year that people looking helps the that auto ratio. who sort some in underlying

Operator

America. with Josh will Shanker take And of question from Bank our next we

Joshua Shanker

thing they One your significant of time, change a stuff. auto and, churned portion same their this is a all the at in their at really in that book GEICO looking was a I'm lot margins the of improved business. big

One combination opportunity as to customers for nonrenewing there's of nonrenew a you're opposed to business was things AARP of the rate in customers solution think extent that profitability, the in renew. you shouldn't To do through what achieving to a the term alone? profitability who long looking improve your

Christopher Swift

for years. add and over relationship proud the it's Josh, start I'll I'll Chris. last AARP we're ask of her then Again, color. XX very to Stephanie the

think XXXX. lifetime that product platform. renew extended contract But of the agreements you Part us from launched does the we to Prevail particularly still business, I profile, prohibits and on, will the in-force canceling then, and risk and both auto that policy a unless their customer did in a recall, changed. it continuity we have it line, just on homeowners home, the really

have still the some continuity That's into the but its in-force books, going it that's relates of of Prevail, sort we because different agreements. XX% on with business to take work time way that the all to lifetime to business

rate would as But So I to themselves, we've results speak and you earn think And That's will Stephanie, to aggressively what had. we're begin numbers we be that the and pushing for in. and have sensitive Stephanie why there. add? the as for the team,

Stephanie Bush

about you I where really think you really loss No, responding think Josh, the focus, Chris. trend it well, to environment. When our framed it's is,

rate actions. new small materializing as states premium very portion of of in-force. in our market that our the today. but deploying XX products, We're written also of product Prevail see is You XX% our Prevail and About our is a on that

have book on earn and that continuation the in-force bringing focused wholly to of book XX-month that preponderance the just policies to then in-force, being for the back But profitability. share this Chris' our of overall time go So to rate lifetime endorsement takes in. on does comment lion's back underscore to

Joshua Shanker

when rate what's new and on the is book book? on we Prevail going look the in increases what's continuity And between lifetime going business, the similar through at that

Stephanie Bush

earn you as at is What rate. The adequacy. absolutely. with in I shared also the on Yes, would in-force we has in. see new rate look share book, rate that you But we've written to previous calls, the business

expect, So the states we all than new be makes up -- business? this that business by rate our actions, our will what of level of year, XX% new And And of half more new about is adequate. business by that when year-end, volume. of based on rate our

to degree in gives that us confidence in again, new. to so terms of market And a continuing drive of

that earn think So book to in And all new that to over the about time. business being adequate rate you on given going is our actions. rate have then of in-force, rate

Operator

we with question take from Markets. next Zaremski Michael BMO Capital our And will

Unknown Analyst

Mike. This is Jack on for

on question insurance environment. commercial competitive the Just one

higher we Any Excluding workers' gauges. XXXX surprised are some through we're once to comp, commercial continued has declines system? thoughts are seeing pricing think about at should increase? into that in And CPI core on reinsurance how you the certain pricing all costs

Christopher Swift

and points disciplined are partners with the I an address rate understand I'll the distribution customer. that so on probably rate don't be it the start given I be work Jack, No, continuation back sure Mo costs to I think in they thanks of for to that disciplined, add. I'll environment, of have to thought any reinsurance there can the end just All our and to explanation why, question. need I surprise. being there's increasing. and make element tried think customers to

add same of in I the But on as 'XX into Mo, we head at point what the more commercial time. see side? So would you this

Adin Tooker

that would the I stable, reinsurance No, predictable. say market fairly Yes. fairly feels

think I rate second, think then priced about we competitive. think just that's I getting that would the still periodically is in again, it's October months and conducive. will the So have And pretty good. ahead is think environment we market now, lumpy of We is that renewal is before really I where third, oddly It we just continue. constructive And talked say, way. right feeling dates.

-- And really things in looking a and be so bit, bounce grow to responsible but around it, we're a about just just that's disciplined to we're fashion. really little going

Operator

question We Barclays. will take Tracy our with from Benguigui next

Tracy Dolin-Benguigui

big a rate. on best exposure is definition pricing. of to acts-like is There debate or what it pure Is rate the

XX.X% pricing auto really not a great peers. your from Your that for is increase pricing I'm personal level achievement. hearing

act are, does exposure like And if So are grounded, rate? you auto get just you how exposure there? in to including

Christopher Swift

Personal points rate my then we But that. ask think to we're about about I remarks, more to rate for pure home. sort somewhat auto. Tracy, X/X the X.X would up then unique acts I renewal I Stephanie. I ITV, know net ex which ask talk it talked basically have and on we works we quarter, X.X of and the exposure yes, I Lines But -- X% That's add some written component going you would that explain that pricing be tandem. And like prepared of commercial. both includes you I could commercial commentary there, comp, I would precise rate the points, disclosed think in auto, think It's our achieving just think exposure in of X/X X/XX. And the Home, to commentary my say so you rate. in was on is as it be Stephanie to in and

Stephanie Bush

driven is Really, the to from our evident appreciate our results Tracy, think a auto about we that largely results rate, were realize, largely filings. perspective, I in are and they're the able I by loss is and rate supportable and personal fully comments. your

it XX.X%. bring with terms relationships And the the if strong of you take it, gave truly and combination have seeing what is team. and a X homeowners, But together, in then was to Chris both described we're regulators the those of I and inflationary execution the rate how We over outstanding that just then you that by us factors.

Tracy Dolin-Benguigui

renewals, specifically long-term you on could low that. being disability but said stability, what I trends to more you see on Benefits, given personal recovery? pricing more X/X and yourself historically incidence claims it auto. at competitive was Group Okay. Yes, appreciate In favorable

Christopher Swift

commentary, have but is pretty his the add efficient. to going I'm competitive pretty Jonathan and market

make think conscious don't I a be on So price. have decision competitive we to to more

for targets. Tracy. new that our to trends, have both there, a we'll We disability reversion reflect incidents cohort. Obviously, expect terminations do mean We and the

in are I been at So a where to X/X/XX that say? wouldn't different on than from you upward anything will put say conscious the pricing we there's just doing today. we've do past. would some mindset Jonathan, But pressure what But

Jonathan Bennett

agree with that, I Chris. would

market. competition I though XXXX, as talk the all be feel the data in the fair competitive forward that's that any of in the us, look when can We there's time. is market portion often in account think into nature the don't bring And upmarket, to find a our the by about we the particular outlook accounts, of I book for we we there. and credibility change larger market. to there's

those so the That's and looking that, marketplace. account-specific been on And at we're in do we basis an that. have continue way the trends doing to compete

factor this those so I we of into insight that think selections. all And

to of question The brings this think is if moment don't underlying and of aggressively? a outlook pricing any is, the there's I really particular of in change. business. So not grow lines Hartford That's And drop its the any

profitably our make book It there. efforts that our And care to grow are we sure in a continue clients to the is fashion. discipline and there. world-class of remains the So to take

Tracy Dolin-Benguigui

reversion of You mention the did mean.

. a If see ball, that you when you will had crystal happening?

Christopher Swift

will the actually But when mean you for the realized there, we a we Tracy. somewhat reversion. but price happen, prepared tell when different We'll got mean, the we reversion conditions. to Obviously, it's for to economic I be get know don't I given it. hope we just

Jonathan Bennett

Yes.

multiyear But that are levels the thinking ourselves think view debating it, to and that, market ourselves way in I here always we're Chris. we working pricing methodology think likely and Chris, And as thinking think of about position the a be increasing that's something right fair over standpoint. trend. in I pricing time. see incidence to about summary, And horizon we're that our I on is a a includes from that

Operator

Jefferies. with And our take will Kinar from final Yaron question we

Yaron Kinar

go as Can those back a 'XX like lot you you're lines call. seeing more 'XX? I to want specifically, on accident what lines some financial through to commentary earlier I reserve think years well. investors are of in honed a years and the maybe talk and little of for about GL like maybe the on there

Beth Bombara

as mean, very have I as I of said, we a the it relative increases. Yes. small to relates quarter, amount

of lot those GL I picks we for in we back And go think look quarters, think lines. experience lines if been you some into us you've that going you our loss those and over years seen last and consideration pricing has about that I'd as several forward. in take take at are say increases the a And indicating. that

So to else that, really unless color much you Yaron, add more have something specific to don't were looking there's at. I

Yaron Kinar

and call, specifically guess, a those those numbers you're by net on a offset actually are hone some loss just I talking the understand that I maybe for becoming trying favorability years. years and is other a maybe I'm this years, to in and if gross too so. maybe granular about apologize from larger little from

Beth Bombara

out years, current anything tend the out. mean, there GL, our on seen We improvement definitely longer. forth. significant picks XXXX some through that had nothing that would quarters we I do recognized lines But mean, to several that again, I be year. some that. on I we back call more I our on like on wouldn't can Yes. significant especially and loss hold call

Yaron Kinar

Navigators question the then had other I was on And Okay. the book.

premium-wise So of the today, the come of time to I book the XX% percentage as specialty does U.S. book? or the acquisition, casualty as think business. at either that of a overall the of was What about

Christopher Swift

in I'm have try me going of those guess. and front to numbers to I going disappoint don't not to you. I'm

to important through work just get you we'll Susan number if So you. that to that's

Operator

and the have all Spivak for is Susan call closing for to I remarks. Ms. gentlemen, we And will ladies now questions. turn the back time that

Susan Bernstein

us to Thank your reach Have get today. please additional joining to am everyone didn't questions; then. to I speaking question, just for you, and great always, as look out And you forward we thank with Abby. I afternoon want available with if this a day.

Operator

and for and your you thank today's we Ladies concludes participation. this gentlemen, call,

You disconnect. may now

The Hartford Financial Services Group, Inc. (HIG) 27 Oct 232023 Q3 Earnings call transcript