HIG - Earnings call transcript Q1 2024 | The Hartford Financial Services Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to The Hartford Financial First Quarter 2024 Results Webcast. Today's conference is being recorded. [Operator Instructions]

At this time, I would like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. ahead. go Please

Susan Bernstein

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

your your To to their Now Chris are we team. will prepared questions Officer; by remarks, Swift, our Chief assist our taking Executive have Beth Chief we start, Costello, of I'd questions. and Financial members introduce us our like followed to with Also speakers. with Chairman Officer. several begin After management

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

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

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

Christopher Swift

the to strong outstanding results financial year, The and thank morning, you Good quarter. sustaining today. joining us the first Hartford a had start for through

disciplined strategy drive continue Our and ongoing customer-centric innovative investments, exceptional technology, talent, outperformance. to with underwriting and execution, combined pricing and

investment renewal growth written ratio Top and me core call earnings strong trailing these margin the achieved XX.X% Commercial businesses. of in and to contributed X.X% continued XX-month of underlying our with our outstanding pricing Group and an reflecting industry-leading ROE combined to Lines consistency margins and an performance Benefits by line generated your some earnings attention X% growth of core we portfolio, Commercial XX.X%, Personal all in Lines, in of quarter. highlights our a in solid and Let increases of

efficiency to of Now each agent new made let pricing our me capabilities line industry-leading profitable details we of top the in profitable the our the performance growth margins. and of in underwriting to strong businesses. data flow, submission three flow, the drive experience. From from by share In advantage at our highly a we marketplace, Commercial expand broker quarter. part few the and prudently growth business driven we have double-digit advancements, reflects product that taking using elevated investments tools are are expertise science Lines in

In addition, past the moderating from elevated solid levels retention the steady is and in of although years. exposure couple remains seen growth

underlying we are quarterly shattering premium Small margins. sustaining Commercial, while records In written previous

growth driven the in flow binding. submission growth quarter, business strong New and in E&S XX% by was

premiums area annual XX% key is focus, a binding, grow of on E&S with pleased particularly track by to are XXXX to written million. $XXX We which nearly in approximately

overall on in and Small pleased outlook. its performance the incredibly remain Commercial I with bullish

pricing results ease of financial to expect customers business unmatched We with conducting and outstanding serving accuracy. industry-leading and sustain unrivaled products by reliably agents and

quarter especially Written financial construction strong be XX% business Moving new continues growth performance and Commercial. general in and exceptional. rate an premium renewal good to growth with The industries. cost guaranteed Large to Middle & of reflects execution

our our underlying direct remain investments capabilities. have stellar this by we to margins. The with our are well business and positioned made the while relationships, best-in-class We the record we distribution meaningful delivering a in building strength is advantages of enabled underwriting talent our of growth a underlying of enhance maintaining breadth result last propelled track pricing. discipline, Combining excellent premium this performance these strong Specialty, were from results and products consistent by margins renewal with our Global increase with significant position, casualty our of competitive was profitably year Written business. In and line lines. contributions a growth and to in written wholesale excess grow with XX% growth solid reflecting primary business top consistently

remain broadened with both as quarter We in product increased meaningful and wholesale business flow, drivers wholesale growth. are the the particularly found Specialty of position in Global business, portfolio. submission reinsurance as and from including overall We pleased a construction excited well about new our activity market

another continue to Lines, Commercial book, of Looking focus. grow property area our we key across

We are capitalizing written our approach, on was in catastrophe than premium for in higher change XX% quarter no including favorable the appetite. Property disciplined market conditions approximately with XXXX. a risk

Turning to pricing.

Excluding the property with still and the in, in trends. In auto in compensation, quarter All fourth pressured, quarter. Commercial quarter stable an written Commercial ] cost quarter. pricing relatively workers' pricing slightly liability. Public strong single rose [ outstanding ongoing market. with results in remained Lines is low momentum compensation, written comfortably positive loss though renewal in digit D&O fourth X.X% above In pricing comp pricing Lines remained renewal the general with X% Commercial summary, first ex to in renewal delivered written the double-digit pricing workers' Lines from high and

Moving Lines. to Personal

as of loss demonstrate trends. progress remainder loss performance year. current of profitability in trends Our have to the of written renewal the XX% moderating towards given auto, nearly peaked targeted Auto likely continue address price our first we view for quarter the restoring financial increases

a resumed written comprised quarter renewal In new rate this celebrating we homeowners, underlying journey XX% our increases and advertising have and majority cost addition, In vast month. of trends. This year, vision during with achieved In outpaced XXth net the the pricing have this we adequacy are of shared business serve rate national we as in states of insured loss market a and with commitment customers. on value mature XXXX, to anniversary AARP. embarked result

advantage. our platform with segment, innovative and modern and product enhanced competitive this coupled is on Our a digitally preferred focus prevail

available moderating expect core I our and XX% pricing states target offering Personal approximately of profitability reaches earnings With Lines XX represents as updated to business trends, is and risk in new returns contribute it in this margins meaningfully to loss premium Our XXXX segmentation, XXXX. to in quarter. enhanced gains, currently and

Turning to Group Benefits.

for reflects driven X% margin group from a core included prior Our being this year competitive ongoing of with improved long-term in quarter premium mortality where are we and life, earnings and trends the marketplace. X.X% disciplined persistency recoveries. sales in X% strong lower the underwriting insured Fully claim slightly growth primarily disability by of and strong decline but continued pricing

for enrollment, process simplification suite integration, customer analytics. member capabilities strengthen HR platform continue our an We to tools for extensive and service, with of

actively key out of to As focused investing new a our products more platform. and small are employees Employers ever are are part distribution the grow partnerships. seeking in and our services our strengthening strategy that on needs their and proposition. amongst value we midsized part includes than relationships and of of This businesses,

strategic well of details. The classes to a Moving portfolio conditions, asset and investments. Beth range financial and will market continues goals to Hartford's performing more The across and support provide

the the delivered momentum of In heading summary, into remainder Hartford another quarter with strong year. sustained The

I Let am future. so the about me bullish why reiterate

the and our results continue our prove business. the of strategy to financial our investments ongoing impact of effectiveness First, in

improvement. showing are results Lines Personal Second,

progress and expect rate We profitability. are targeted to XXXX necessary margins achieving increases, towards

by our customer-centric and Fourth, results. innovative to yields supported continue with technology, sustain investment we exceptional superior remained will underwriting and portfolio of Third, disciplined an solid, a and income assets. durable execution, elevated talent, pricing diversified

contribute Hartford, these we through our factors proactively performance. and ability remain excess to to and value about record continued finally, All financial delivering managing growth, our dedicated shareholder and in capital. And The enhancing extend confidence the excitement to track of of investment organic our supporting our future industry-leading business my

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

Beth Bombara

had quarter. Small the building Chris. core ratio of you, XX. Middle slightly excellent Large or million $XXX with driven growth. Global price and of further impact delivering underlying Commercial an over XXXX, of and year its expectations trailing in delivered of continued share the business and the $XXX the to XX.X%. growth underlying an billion. prior earned growth an core exceeding year. premium combined ratio by written line ratio ratio prior X% underlying and of better outstanding was year to increases XX.X%, driven XX%, record deliver ROE quarter on ratio of point of Written track for combined lower Global of below consecutive results diluted Commercial quarter first excluding Core renewal growth earnings Thank premium flat was results expense XX.X, X.X outstanding the a new XX-month X%, exceptional with by underlying premium to written of XX.X, with Commercial underlying $X impressive quarter Specialty's XX.X, accelerating combined premium relatively X% an our combined & over than fourth a strong this million growth of per earnings ratio with $X.XX earnings with also Re. an were a quarter Lines primarily due first prior written and at was marks The the excellent combined improvement

within of as to marketing marketing cats an quarter primarily in The offset by growth ratio before points were adequate. With on the expense combined or the a in occurred assumed $XXX those were of the liability, for XX.X%. In X.X primarily reserve In and written ratio. increased marine. The and in higher to for net million, first with on and increases ocean pricing XX.X% we prior achieving we catastrophes, were XXXX. This by our development respect due the consistent underlying business an points. increases points, total by million increase rates Once Personal partially of is of the homeowners reported discussed. our of actions. the pricing expectations X.X for we core X XX.X, X-point premium improvement increased In combined XX% XXXX result line earned earnings Written that driven ratio million where impact of second XXXX X.X current with to reinsurance and year ratio which direct accident was year, XX. spend over earnings auto, or driven ratio Lines reserve previously year the combined tax ratio full P&C accident premium, $XX million were the Lines, of quarter workers' points by successful of X.X with partially XX.X% homeowners, is strong are was pricing including points in of X- quarter $XX Personal auto Lines improvement states combined in the which underlying of increases year by improved offset development reductions $XXX basis. to compensation, combined underlying for costs favorable rate achieved year-over-year core XXX.X in is a to general drive in increases the higher ratio written prior XX.X% and earned Total steady Personal earned new compares quarter

physical In $X favorable addition, million had we personal of damage. in auto development

before in in expect total of on ADC. XXXX. We will impacted in with Navigators on also of $XX with deferred million related patterns, the no to Based earnings. the deferred we million gain be net amortization recorded payment before tax impact estimate This income gain approximately our remaining XXXX amortized tax positively amortization the core $XXX balance

have We the deck of both for your information A&E slide appendix on additional provided the and reference. this our in ADC ADC earnings

Turning earnings million premium earnings fully strong growth. continued core $XXX life to X.X% quarter reflect Core margin first and of a improved insured the Benefits. performance Group disability results, in and

products. in to we life prior in paid X.X costs than experience claim XXXX. a growth lower persistency family loss by higher in mortality. Fully XX.X which incidents remained loss over by levels in first the As year. improved first XXXX, XX.X by higher a offset insured positive, exposure year, high XX%, points driven improved albeit quarter. The XXXX below the strong points X% leave versus underlying driven group Book prior reflecting record was from X.X premium a The ongoing from tend and X.X points in recoveries, loss reminder, improved the disability strong at approximately continued was of growth, at of of partially quarter disability rate but group perspective, short-term of ratio ratio seasonality

investments. to Turning

investment solid produce portfolio diversified Our continues results. to

For tax, the XXXX. total quarter, million. The portfolio investment quarter with yield, $XXX of before annualized the excluding net fourth limited was X.X% income consistent was partnerships,

equity Our returns positive returns X.X% our included from annualized private portfolio. were LP and

were returns portfolio lower JV of and equity absence real estate estate by sales. real equity impacted Our the valuations

be returns activity. similar current the the property by valuations no equity limited quarter macroeconomic backdrop, being results, with to sales quarter returns in in partnership second declines offset first real Given likely estate are depreciation private to with and

it are be to order real relates patient durable, We to continue to as value. holdings and estate we our maximize will any believe sales in

be to portfolio credit the consistent overall Although results could XXXX of average we that term, an high insignificant. credit anticipate LP continue we value remains will the returns add quality results, Net long with returns. The remain A+. and year over to be believe continue rating below credit of historical for with full losses the

capital. to Turning

quarter, approximately repurchase share end $X share through During in our stakeholders. had returns on and quarter at another quarter, first billion X.X wrap targeted we program the remaining the repurchase of repurchased shares on for reflect the of we expect remain repurchases quarter. all XX, to At we XXXX. To for million, our value level our our enhance December of second that our delivering authorization quarter results of $XXX million under to the up,

to back call I Susan. will turn now the

Susan Bernstein

Thank you.

for could question? questions. your take asking instructions now will a the you please repeat We Operator,

Operator

from [Operator at TD Andrew Instructions] our question first Kligerman Securities. We'll take

Andrew Kligerman

your on foresee overall group Chris, sales. that some I revenues you about going mean think in noticed talked Is pressure I -- you X% that forward? were sales in I were opening the quarter. up life about something remarks,

see us little a that color a on being group you could area? maybe and do in happening you bit the line life give pressured what's So

Christopher Swift

we Yes, he quarter. lighter call Bennett, you Welcome. a little Andrew. looking Jonathan the sales at also. give during color to, additional out did Happy could volume I'm

operating think view, might don't has similar couple an it's disciplined an believe we means trending, that think, the pandemic. coming sales participants going after downward, normal, continue next be recall, a endemic then we've about still in being we for we've Andrew, will if at which have to of we're And impact higher we the which fairly been And pricing which where thinking state I years. least market product mortality you but out than about on -- in view. talked are of But the mortality, trends probably is particularly obviously with our our

it's all I good, all healthy. So it's think

sales want I For we're us, discipline, slightly add? you being life cost key again, we have a but maybe the than come Jonathan, would of know message might it you in past. But group to at enjoyed what lower

Jonathan Bennett

us and And agree of just that you've the Yes, think, importance reinforced Andrew, having Chris, with marketplace. view point on I everything in I executing our said. the of

If we're look your you where lot in we you thinking excess your to seeing improvements. at group cycle, of that When trends, and you the mortality think about future, a pricing the is where loaded life is about losses. data are back we're looking philosophy, which with start and COVID

the to they out, normalize, have figure that what always step to will, it you say, you take So is And not reported. first all to how COVID to just but obvious sound how well, if out the claims might extract, for do get data. that's

a And forward, to a on judgment next fair you feel variation be the as in so make you see do the the think then like are to bit still And X X some call that result, -- if pull a I where as is mortality to looking deaths were a you amount years. will today, that. And they prior there need applied than would to trending were you of pandemic. are we CDC in data, as reported higher you sit still here

we'll it's the So is marketplace think when on those say in to of the is, in where with are. But some are now how that a said, uncertainty continue that all we we view we that have in We're think, But as pricing and things going. of the point our range weave been cause marketplaces. ambiguities developed. And can as right conviction wide what's compete. and based the about about and confident we have we I I all comfortable as be would in, where on really pricing strong ever Chris for

feel actually as ever positioning. are we that as capabilities strong good our in Our and marketplace, about quite

Andrew Kligerman

been a very XX is, while, a That's for of been my then it's I underwriting long-tail helpful. about there's mean, follow-up years. reserving. XX And to now ton talk

to re, your some assumed mean, years and looked and reserves quarter, of competitors your And are in looked great, to Now or looked but concerns? people marine, modest I liability and XX per pretty when about were didn't. we XX releases. Any mean, your XX. those XX at XX general I talking it this you

to into on anything concerns so Any part? forward? going read And your

Christopher Swift

very, confidence and most high a are that feel didn't over everything particularly feel we'll would we're relative enough basis, we're about But going recent you which we good, humble what right clear got not that Andrew, sort commentary. to those we underwriting actuarial start think Mo, admit in is Beth years. when in and let loss high. is our here Yes, very about classes in adjustments, give their to and speak I as are have our yes, I'm but picks we most. But hard also the made, our and we're Beth Mo different, business, I improving continue and the changing add? quarterly work on to gives Andrew, transparent that better than at think I'll I'll confidence today, us and sit add terms will immune, a and it degree everyone I But will we and color. it, analysis conditions, that the do more is not you And Mo particularly that of going just our reunderwriting And think current we're on forward. I we've competitors because be why you can slightly very robust the get adjustments right, making last context of picks, to think we the different we will that of you explain for been pretty talk basis, at X Beth years. But book, looking but a Beth, Mo

Beth Bombara

to just prior Mo then to But and general recorded what on do was let reserves, activity, the see start, and add and loss the development Chris we provide said, as Andrew, noted, years this color to large since when XXXX some year I'll we that we reserves XXXX quarter in And the quarter-to-quarter as it. related to do we evaluate some react Chris you I'll indicated. activity. liability So these

current very to to those well. tend relates it trend the As more years,

these know, As you liabilities. are long-tail

things recent to point. in this overall, at picks term, these I in to don't strong. So cause in said, our react us the because, nature. tailed not more are as if We But the even would they're looking seen short that change long years that we've

And talk measures, improve adds about feel last some turn book, have team a over really been important area. know your well, strong. as look reserves understand, to at you to several actions this we've doing I overall Chris our accident the recent when IBNR the was But which also I in taken about and it's the you that do maybe, variety indicating, period years how things think as over to I activity, years. But even Mo, of stand overall this to we of as and more levels, being you in out I'll more our paid current to years the that it

Adin Tooker

Andrew, actions on Yes, period. taken just build about over point that themes we've maybe to three Beth's time

three is XXXX obviously, in of healthy is, some in put in each trend. well significant of that rate we've those the years of first So since excess books, and each

I lower we a SME auto for out just exposure. nature of remember book, is Second would just our have underlying, mean, theme the I there put example,

middle-market of for stat, X XX% Just attaches umbrella vehicles. to clients book XX less give than with our you

coming than a we gives we've reinsurance book have is of auto. important is really and limits $XX any pressure greater of don't the where from just have real a involved is We So you We -- lot which fleets, gross, there. of sense note. don't million never a deployed of of the size transportation it

XXXX, then We've And litigation third, think -- since to managed actions limits. both Chris just Beth and I underwriting related, significant industry I hotspots. Andrew, the we've it's and as referred that's related taken to,

gone specialty XXXX. there. think back in in money. GL we example global just in we think could that marketplace haven't high-hazard we all just our of And we book, Just didn't is got don't as because one still We out primary make

-- I litigation and underwriters allowing so we you And a our of to hope just based choices Andrew, make industry, that based sense tools in that hotspots, on gives auto. book, are on based the invest continue on underlying I to

I of contributes that -- think really just to the we've that here. we lack some at So worked you're hard of seeing this, news and

Operator

next Elyse We'll question from our move Greenspan Fargo. to Wells at

Elyse Greenspan

first was My side. Personal Lines on question the

that Just XX you of you a from did you vast perspective you're kind adequacy do now? that out in of kind that following target frequency months, the you turning I seeing guys what I the of expectation you what quarter when and right And give or new then guess, turn at a on profitability out up, majority I rate the the think, us get to on guess, Chris, this said are are just you expect, put this severity growth business expect reach states. Can said year you looking you over to and next XXXX? sense, in

Christopher Swift

the for start on pretty you thank the in We're Elyse, pleased totality. Lines Personal joining with and us. question

the couple saw consider. we've you that talked the is rate you executing in have increase very team XX.X% think data about, auto, I of to home, very, give for well. I points and a would written You metrics XX-ish

still think rate, 'XX, we we in auto plus full or minus. about points As of year see about the XX getting

that XXXX. expect we're overall going both best excuse to call down think more basis, double-digit because that time. And So this see we've PD not underlying the there here quarter. But the digits. do lays numbers X of XXXX reiterated just improvement let's in X be X to -- conviction, we on for to in 'XX, could would a will trends bouncy profitability quarter in say, then low that, it think put in Beth we And see that's And us X our precise about. auto into 'XX. loss in I any be Maybe on the foundation I hitting that point 'XX. digits. we're you I moderation our And that come at a for beginning right loss could trends me, I been and mid-single to to the importantly range the view have profitability points BI again, to still targeted talking track in say ratio of mid-double improvement in cost but auto from targeted point which expect I our give there,

yes, feel combined So for what XX% we're states adequate There's we go likewise, rate while. quarter, cat to with are slightly good our the in states. saw thought we of of range are home, the that I performance to you couple underlying laggards over then total a within line about years. in expectations, nameless. of going in trends. ratios long-term be But a our They'll elevated doing with auto. And still for although or improved a was

with what and would Personal doing Lines. Beth, both you they're home in team anything? So add auto and the pleased in

Beth Bombara

Yes.

out Just fourth I'd of a primarily on development physical point the coming things. the auto of for we damage. accident Also, couple out 'XX quarter did some that year favorable see

point, just So too. proof we on see loss book mid-teens. comment as that to an clarify the Chris' want I trend, important on

the to clear, looking very improvement we're to get the at decline out and feel cautious expect beginning But So very be good being to carefully as of the do mid track laid but the year. we that just that mid-teens, Chris we double-digit, it at said, that is over on period. and to to and be

Elyse Greenspan

Lines. And then on Commercial follow-up is my

basis, pricing through playing guys do reported Lines just obviously concentration. a reflects the but year? on this across Commercial stable that as see disclosure, you out price we the right, comp move at How Looking

Christopher Swift

ex-comp. then execution you add is color, I'll will really felt our pleased. The Mo Yes. have add from my team side, I working his. tone, it hard hope But and Elyse, an in to we're

XX I of we thought call points, Our was general in an to X.X out does exposure, the healthy. it excess written element or XX% renewal include that That rate points which base. rate, increased, to XX% rate range basis increased exposure

we So XXXX a of out here. in and optimistic I play stability marketplace as think still the we very see lot

compared on Mo, our I would midyear. But talked well about the and through that, we early consistent our thesis it's as what think generally here of still year again, think we So of of I XXXX, having in alive outcome margins why a stability and add? you execute the to

Adin Tooker

Yes, I get the The competitive we're in there terms rate. but little bit say outside again, accelerating in auto moderating still terms in would to our because supportive properties BOP excess generally accelerating talked we again. of of is what umbrella Elyse, about of BOP, is a is able it's and and just accelerating

So I and we're market done we get is like disciplined, fairly broadly, what I year. -- feel the just trying for think of the being to supportive disciplined, fairly

Operator

James. Peters our at We'll next take question from Gregory Raymond

Charles Peters

Great.

higher property and grow help So Chris, in number profile Maybe your your your talked not you business change prepared property that comments, how cat was in yet you business, I your business. no can catastrophe sort quarter. you're you of of you think growing reconcile XX% you the the property profile? about your the change said in And -- the you cited

Christopher Swift

would Mo you more and up Global -- compared perfectly I'd managing we've incremental Well, small said me if say comes which colors. But some cat is about book, in difference. cat property appetite cat, our is with property to per quarter. elements not that could a fourth a profile in we're always in I you XX.X% been think willing ex versus write property just of see give and increasing to it Re our I risk little let the XX% mean, give pricing couple appetite, stats business We've I our we're se. that of

in XX% we're spectrum, E&S we're and said, important it growing our growing binding, general line: As I at an industries properties.

the is still I firmed Our and pricing, XX%. And large think, capabilities pretty property almost holding well. up again, are up

would what add? Mo, you But

Adin Tooker

say just those team keep were for of would trying to really I a, on. annual example, Greg, ratios Yes, flat. couple premium cat loss are the metrics that to also there focused that aggregate And a

like as So AAL obviously, premium the we up, to flat. would stay relatively goes

And we thing we risk. risk think the about don't put the as on tail thinking without same the tail, about want to

over tail So example, looking at XXX-year like, for multiples PMLs closely we premium. are

are the So we're types those of that watching. ratios

cat as a from it perspective, growth. to certainly as the growing is trying itself exposure but the rate same balance premium yes, keep So to in we're

Charles Peters

sense. makes That Okay.

at look of policy they're then quarters new couple business calling out and So previous middle you things business the looking like price on answers, some production your do in commercial building going a well. I remember inside on of your area. competition some counts I'm market ago, the stats really

Just seems potential competitive what on, bullish. are for you look that update seems an you're and it outlook concerned trying the pretty stable forward, to when the But challenges? areas get pretty about

Christopher Swift

And each of competitive, segments, market. middle our specialty end I the of competitive, It's of are small, competitive business. of of more end so Yes. we end more larger a the the say, the larger would larger larger the and is especially in end finding

So more lot typically haven't seen is little many to like pulling times, slip just that is, to. of dramatically would back a as a about anything with it. But We that talked we're we've market the on on stabilize competition only the way the we area public has premium D&O.

portfolio. you the I So will the about rest book continue think see we pretty Outside of that to that, of feel shrink. Greg, good

Operator

at We'll go America. Shanker of to next Bank Josh

Joshua Shanker

good X%, through is Looking how policy the is much obviously, on rate pushing auto, which particular, at outcome down the might rate that around in count about you're you're Year-over-year, be -- a that pushing through. it's given sizable.

the of How only Are you retention? market, of can as you their is you're your years business. What is with and stay? couple competitor have given to they lost and product? clients wanting with present not much the XX% buy-downs? them the of experience prices in the Are of to probably that experience coming carrier change largest direct retaining raised direct the One they a last are them committing Hartford as you over they that doing

Christopher Swift

the us. we're trade-off to cohort Yes, get a lower making us for back that targeted Josh, retention right to for thank that's joining more now, profitable you profitability.

don't had of expectations we've think So I as range the it's that outside of that far trade-off. as

X% think we've decline to in We count compared I of that see about the before. XXXX talked sort range. PIF that still

America right, in mean speaks response rate the So a the I again, it's to I our it's Middle book. business. that get you're to necessary conviction mean, direct customer side. from a And

auto are admitted again, is up basis on vis-a-vis loss things need pressure keep patterns about or file of home, And to that. understand or we've financial our there's social strictly all get the the been to work doing with on It's engineering -- again, generally, abuse that weather and the So straightforward. sort the I'll we've We're I a lot our use. pressures, it, business. But the litigation on inflationary not talked in able trend, think changing, keeping pre-approved deductibles, systems a buydowns with we're people cost. legal of, call like approved and either rates rate pretty regulators to

still and it's dynamic So we're executing environment. I and challenged well, a very think

Joshua Shanker

that do customers me? don't belabor notification a we point, you I'm are calling getting are just can to help they retain asking and if up are to I but mean to giving curious just a to they've what chance the left you the a them, Or competitor?

Christopher Swift

to our empathetic it's we when customers, And think many phone as I there's of don't product our particularly far we're negotiation. offer. being not latter. the over I mature more talk customers, but we're negotiations a very the as think the having our and

Operator

take our at next Mike question Ward Citi. We'll from

Michael Ward

help driving takes of the with wondering the and underlying some puts subsegments? could the across I I if commercial in was commercial you us loss and maybe ratio guess,

Christopher Swift

year, compared you puts do to have mind? What trying prior Mike, say to when in and get at? you takes, you are what

Michael Ward

Commercial year, Yes. mentioned, Well, -- I I commercial think was Small had hotter. last you think,

underlying see year-over-year. trying doing the is how Just to

Christopher Swift

improved pretty just you. even obviously, I we and our a Yes. prior if loss From ratio I with an is maybe From right see mean slightly on property prior pretty year of our you expectation consistent expectations. ahead would side, is you line. year with everything slightly -- share on much non-cat could basis.

like but to feel call -- to nothing avoiding to there's a you I don't want I we're question, don't out. avoid want So

Michael Ward

on just loss said maybe then you And trend. of loss ahead Okay. the was trend. know I still pricing

assumptions first Just curious how steady guess, the 'XX? they're relative I if to, quarter loss in trend

Christopher Swift

appropriate a say that from loss we're we discretion, have 'XX. give written in underwriters is generally, modestly discipline execute again, guidance with there. from 'XX and we side would our views Yes, what in say I compared I our that but yes, try And that's trend loss up the to the on to and have modestly trends increased rate would trying obviously 'XX to reflected

Operator

at Brian to UBS. next move We'll Meredith

Brian Meredith

your in pretty quarter hoping, that a was Yes. give the Commercial here is growth a forward? at of you rate you E&S maybe that Lines expect continue us in market what your could thoughts, was I to kind going just And to your grow space? healthy

Christopher Swift

called property casualty, right? to try capabilities to level. to our look I'll whether then, E&S Brian, color. all $XXX out obviously, components to million to is in But the about. E&S I we've get Our Global Yes, we're important of an his Mo Specialty, I'd think within be you it is or what like which that One to E&S And any do there's we'd add marketplace. component binding that business, and of in would -- have Small, two trying

But would you perspective? an add overall Mo, rate what growth from

Adin Tooker

which the continues called the Small We brokerage his Brian, the side. as as about casualty, both about, Chris that both continue brokerage in environment saw to I that really would the that continues to seeing flow growth in our we're into channels Chris is excited earlier. say our -- business of good out and see to remarks the which primary about the growth, in the Commercial sits both binding, nicely. binding in that talks flow Specialty on Global accelerate, we we're I casualty, excess And talked rate in side, prepared in grow

in undersized undersized we're Global undersized We're we're inland in in and auto. marine, property brokerage in Specialty,

support and to that, see opportunity plenty just it. we is the there's global the specialty So side, on flow especially of there

Brian Meredith

And That's second then Chris, helpful. Great. bigger here. question, question picture

a years, I a maybe unit grow you've here, blip years the here there. probably to [indiscernible] have it's on challenging in was maybe but to we'll the if been now, Looking kind and at And X, start that what of last of Personal point some at is business, and it's inflation Prevail from your answer to there. couple X been during that the product the homeowners understanding curious, In stuff, at of since Lines period? volume see unit decade grown where auto kind your I'm just close look maybe going that business Lines Personal space?

Christopher Swift

back that, expect the about everyone right. X, going the for think our importantly, and I going But what and X appreciate to in I a platform in step-change more on years torture I'm does spare us Prevail it give the go we've Brian, didn't the to effectively allow settings talked compete as various we product question. abilities in a our to decline an count, preferred do will be competitive through core and much endorsement us said, auto, is continue in auto in market, to segment particularly home, mature year as AARP in X%. I more PIF to by this that which

PIF to 'XX, about also We've in that more count in 'XX. and meaningfully talked we can then grow modestly we feel maybe like start

there's be opportunity into would growth-orientated. XX it's and the platform states could that's direct getting should think in think bit. But I the where other by in couple where see response states. us geared others a but lag towards that investment. we're platform. time. We're XX Right gives So And a be the maybe we Prevail will to I end made We of we at We've right and then every little we'll take at. the now, explore the of it obviously year channel,

Prevail to -- want we'll particularly off want But build Once from the about in overall back the get the future the the of right we'll feasible, to core and a or all it think differently. profitability, vast in to states we auto, to of care take then there, we start little implementation Brian. bit finish We now.

Brian Meredith

geographic on just customers maybe And as far where of your you. a as the growth? constraints, lot the given Got homeowners,

Christopher Swift

No. we're in on states I mean, obviously basis. minute XX all

which new until our and the homeowners regulatory price is reforms paused we allow know You homeowners get business in match writing us to to a new California, enacted risk appropriately.

other in XX, had. any XX our long-standing ago, self-imposed XX constraint Florida There's only almost not So no homeowners business I new bet. since -- writing that's besides years constraint we the years

Operator

We'll at next Mike to BMO. go Zaremski

Michael Zaremski

Did think mix pricing in there, Global a one-off? it came color you comment just drove something maybe from if increases what or Specialty. trend that's on the Commercial? I this Any

Christopher Swift

think Ask you. the question Michael, again, I I understood don't

Michael Zaremski

Sorry, of trend causing there's if think was Commercial increased pricing, Global Specialty pricing by X.X driven move written a ex I that comp Could renewal there X, to to from kind that's segment. comment the you pricing the north?

Christopher Swift

components are looking that that would the and driving I through lines, all in sheets property had say a global. Global good good lines, Yes, rebounded a primarily my casualty international at way. quarter. that I'm the is

add? Mo, So would that's what I you what would call out. But

Adin Tooker

No.

certainly in a I professional liability. management the and think seeing the shift of see are continuing portfolio on towards rates we in to moderation our We're negative D&O. public more

to on So that's it. that's through too to there's coming only a a want just part I but detail comments. mix give nuanced don't additional there, of you, get Chris' the would I

Beth Bombara

coming I Small ex thing you would is other when product. the only that from comp, look the The Spectrum increase definitely at to Commercial saw side, add rate there

portion again, Commercial. of So ex comp obviously, workers' as that you ex out, the comp large is to well. if a But growth Small contributed that

Michael Zaremski

larger in end successfully to Commercial. lastly, the but business that of, the -- growth Chris, Small comments, prepared I a you your accelerating not -- in And you're color. competitive, on just mentioned I helpful That's nitpick, yet the Small, guess or in trying more Okay. think,

to kind any offer of those dynamics? there on So color want you'd

Christopher Swift

thing is, Small I'll say in Commercial world-class. franchise is before Well, our the only jumps Mo

Adin Tooker

will but build on Hard I try. that, to

Thanks. to write, underwriters what and for our navigating underwriters that's as is in The I pick and spots, significantly strike you increased and doesn't three to think competitive in trying just we the what the to really Global. increased businesses, want in to out, trying there get really same trying that spots and are is come we're that's we're flow is we're business Small, just the and of marketplace, we're are flow, how call our flow up and nuance all proud that well all Mike. that Middle to

Michael Zaremski

been -- there's remarks of different types a And kind Small is I or world-class totally the you prepared Is is your levels your just it's E&S, product? times in off platform? growth different which and many guess of is quarters. of E&S of it Small Commercial of it is the up the E&S but Or -- brought separate for underwrite of type just chassis, number part

Adin Tooker

we're that strengths channel of same and Mike. of that's we've in model, applying the taking the the excited. had the wholesale business the all the to channel, beauty so and why No, model We're retail that's

Operator

move we'll Jefferies. to Kinar at Yaron Next,

Yaron Kinar

some slowdown? in that the I comments mortality disability of talk your the in think expectations. prepared you're in pressure said, think an you Can earlier slowdown sales, about talked That in also about to I given seeing seeing also that you for voluntary. life just your some and maybe group we're response question, the drivers and

Christopher Swift

I back think you of be it ask people -- exceptionally my give just recoveries getting I don't disability well, and add. then I'll terminations work. Jonathan and and to Yes. claim performing to think view, whether point I'll is

solid. are I wondering has I'd just been say, levels I'm growth behaving... think

Yaron Kinar

the top was specifically line, NPE ]. [ to referring the to I

Christopher Swift

the all good stuff, that. and you to get giving I'm Yes. then I'll

a again, top So And I challenged. is as feel I my is you want line, the in healthy. to commentary, little to the like tried address book

there. and how Some of we're to of we XXXX our is on had, some but mentioned, going that be due it we insurance life disciplined exceptional challenged, is as views to

color. can you additional Jonathan, give you

would you So JB, what say?

Jonathan Bennett

couple a there. just on things of Yaron, So

really in I In first even of XXXX pretty the But results drive comparatively key terms here we of the the result. are the exceptional strong on course, top quarter 'XX, all seeing speaking. metrics, think was line, of

that in even of But low or likelihood customer that It higher very nature case was a still out we And book persistency take I fact, which the a excited to the little the year in good. have more ago. persistency take reflect XXs, from is and the business that. historically may, competitive standpoint, market. does quite a bit a think We're a market their about

So that. we're addressing of all

challenges spots. our renewal it and successful much very we're those and picking think working I quite being through . with

with I smaller voluntary goes bit that a like cases. opportunities new adding be have perhaps with we in existing one course, of lines of On cases, voluntary the it. that, coverage the some And a that That's of out. important. think lines example. a move, bigger to growth little market. competitive sales, more best There downside We're if a of It's sales can also the in disability set as an around lines new of rounding bit continued is excited to always

very supplemental And right in kinds had those marketplace continue trend addressing big we tapered strong in but that XXXX bit have and continue to the to and accelerate. of of effects growth. So the through results into now, on continues exciting them, in little opportunities a we've health. a and It's future working lot an see, to I already we that as beyond, expand but we're area some really more see can

focused place So results. a that to we deliver will stay and continue

Yaron Kinar

comment I low-teens the And be currently Chris, that to correctly they're auto. personal in make low-teens you in question, sure for to want your to with 'XX? say I the second my heard, loss in or regards Did you trends expect them

Christopher Swift

I bounces say was digits quarter-to-quarter. Mid-teens for is to in trying to double 'XX I around 'XX, just that was in trying to do, from 'XX. to full whatever 'XX, compared low or it the year

down even the rather going I'd see So that to move. from mid-teens double-digits picture is trend high a bigger you meaningful pretty have

Yaron Kinar

asking a to seem trend now? AARP single or little that, would bit be writing above something industry-wide And does there unique the high that bit we're digits? that to loss reason Is maybe seeing it is book the a I'm right the than higher to mid- to this the keep you're what I policies guess

Christopher Swift

if I let know. that say And you just would our changes sit is today. call we'll leading we prudence judgment it during us and number where to the year,

Operator

KBW. at Shields Moving next, we'll Meyer to go

Meyer Shields

you expense how Lines I when could just had current is normal growth lower think give us one much ratio compared question. how some I to to Personal on about you're was in the mode? guidance hoping

Christopher Swift

expense full the of same. 'XX the think would compared ratio, you the to year say the full being about 'XX I would year have I So on

know I Beth, any? don't if would you add

Beth Bombara

would that. I with agree Yes,

flat. rate continues year right full go 'XX, Personal this you start last And through a again, will Chris level will said, into that book, slight now because be off. year year see we to to expectation as marketing. relatively Lines ratio, QX in expense full turning as as on for overall year But said, are to our we we the might As uptick the earn

Meyer Shields

where make fair depressed growth little at? sense bit of, it I being the is, states Is Okay. to doesn't as because think a just it guess, of it

Christopher Swift

question. I think understood you. was to just It hard don't I the hear

Meyer Shields

trying expect, I'm little look as bit get past be been the to expense to is we of we whether running the where was No, ratio should a couple sorry. that sense whenever I higher normalized, than to for personal a it's auto should out years.

Christopher Swift

Not mean issue, there's necessarily, and a volume then I dollars right? a rate.

keep from a the of that year think the might tried this book, expectation. side, manage give sort ratio be in your it's model of with full I a we're you sort amount to which that's actually we J-curve I the same. why again, number increasing But of So are ratio the rate to year. dollars, getting We helping

Operator

David move ISI. Evercore Motemaden we'll next And at to

David Motemaden

year-over-year Just improvement, following was year-over-year? that a is in strong expense question Commercial prevented a year. ratio anything there basis on last I or points wondering, anything us from year the obviously, one-off Lines. ratio more expense improvement seeing XX

Beth Bombara

this Again, to consistent. year. But if Lines reserve things heavily compared any So ratio higher we I'll can you're movements sort expense we I expecting to flat like year we X in to it 'XX of bad for just full see ended some in Commercial because quarter, about debt you looking adjustments that QX. When year, just some go the to that. remind year we think through quarter, X more hit it be at first just that of relatively have 'XX and overall, as to relative a relatively quarter tend expense where you last see items

Operator

Bob go at we'll Morgan to next Stanley. And Huang

Jian Huang

Just reserving. maybe on a follow-up

or think comp, in was? Beth amount think workers' for in general there's how it terms adverse the that we this if reserving of a dollar was favorable us is favorable just you liability I and Mo. about When rather curious give how can

Beth Bombara

IFS Sure. disclosures our I'll and on take XX-Q that. very have in that. detailed actually We our

our was out were you. go and $XX then was that discount you it offset for was But million, So comes compensation, assumed to then for the XX-Q, always XX that X, all lays and Page it that. And marine we goes releases against accretion XX, in XX for reinsurance and have about workers' and workers X. in general liability could

Jian Huang

I totally [indiscernible] for my that. so sorry must Yes, that's fault.

reserving is there's workers' of COVID, about a from just quite Can reserving book are back bit comp current the post-COVID to that. of the comp maybe uplift, of to down a now terms talk to likely normalize a favorable you more as on speak, workers' so from environment? kind maybe out think follow-up a environment in still you years of do or So for we pre-XXXX perspective X

Christopher Swift

end comp, be Yes. say during would a as trends I Obviously, It's it's out lot would again, we normalized. expect. Frequency think of about, but being out is within as workers' as Severity which, a years of were that within assumptions think prudent, Bob, question, from is complicated talked I COVID, trend, but I be continues which there far obviously turned where official are X% our sort X sort were to a to that behaving expectation. of severity made always behaving still positive. we the trends of expectations,

a and continuity 'XX about think I consistency of with in 'XX, and comp as yes, trends. So lot workers'

Operator

And concludes Q&A Susan will for that turn our over now conference closing back Spivak the to session. I remarks.

Susan Bernstein

great us you reach day. any a joining out with for Thank all always, questions. additional as please Have today. And

Operator

you for concludes This conference today's participation. your call. Thank

now disconnect. may You

The Hartford Financial Services Group, Inc. (HIG) 26 Apr 242024 Q1 Earnings call transcript