HIG - Earnings call transcript Q2 2024 | The Hartford Financial Services Group, Inc.

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Operator

Thank you for standing by, and welcome to The Hartford Financial Second Quarter 2024 Results Conference Call and webcast. [Operator Instructions] I'd now like to turn the call over to Susan Spivak, Senior Vice President, Investor Relations.

You may begin.

Susan Bernstein

Good morning, and thank you for joining us today for our call and webcast on second quarter 2024 earnings. Yesterday, we reported results and posted all of the earnings-related materials on our website.

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

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

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

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

Christopher Swift

and the the product contributing developing underwriting margin on thank increases and growth Group of experience. Highlights improving a top The Hartford and results Good margins, exceptional delivering Lines These strategy an outstanding, performance second Benefits remain to ratio second commercial marketplace. an pricing performance XX.X, earnings excellent differentiate to breadth, and Hartford's growth combined price of strong XX% execution, personal superior portfolio. half distribution year. We XX%, focused were morning, top effectiveness you results in XX% and financial of our and the lines and for investments joining of solid in the The of of us renewal in expanding reflect include from disciplined quarter today. core written ongoing investment line our with with in the talent underlying exceptional customer quarter and line first

XX-month of an of Directors repurchase that All billion. our capital of pleased authorization generation ROE industry-leading, share also XX.X%. I'm with trailing to contributed businesses, announce earnings the to $X.X continued outstanding new core and approved these strong items of from a Board

shareholders We will balance continue investing through and returning in to dividends. businesses to excess our growth, and capital repurchases

an double-digit details me share growth line the quarter. and ratio quarter. below from XX the for top exceptional Commercial Now underlying a results let few combined straight with Lines produced XXth

industry-leading drive tools, growth. unrivaled market strong are the broader growth top We and products, double-digit and for science position, Retention using with growth. In economic accuracy; industry-leading exceptional conducive continue business Small deliver to superior our pricing advancements data was line to customer steady profitable and margins. expertise remains underwriting unique and and pricing experience Commercial, environment we our unmatched results, including outstanding new

nearly in the on and a our XX% opportunity. see Commercial a in our capabilities, business. outlook continue advancement to growth quarter driven by remain increase was business relentless New and of incredibly I up E&S results premium XX% exceptional Small we in for quotes another quarter, record, where of in bullish binding, XX% With part tremendous the

including double-digit paired strong with & top Middle underlying line quarter growth, margin. a Commercial, performance Large to Moving second excellent, was

double-digit broker and efficiency in new primarily of of take capabilities driven the and growth, by elevated along advantage and our the continue Written business coverages. in made We rate to premium growth part execution, experience. strong property agent expand to reflects liability flow, investments renewal product submission with

the first sustain the maintained We maintaining while underlying underlying in we to a achieved Specialty, margins, in and $X we consistently going expect growth delivering meaningful mid-XXs. time, result for over margins have premium track a built quarterly forward. In record billion of written Global

competitive growth position, offerings primary in line wholesale significant XX% by increase with reflects solid in excess global and top propelled double-digit and double-digit XX% construction diverse reinsurance, Our in lines premium surety. renewal product a a our increase our and growth growth contributions commercial business and pricing. was from casualty Written

in are Global We increased and both growth. the as the construction portfolio Hartford. market, Specialty our broadened reinsurance wholesale The expanding pleased has as for product particularly engine business, into business growth profitable and in drivers enhanced a meaningful with projects with overall new developed selection The well meaningful flow, quarter of our bound submission position risk tools, wholesale

we in quarter. As the approximately property written past, premium with Lines Commercial I've across of highlighted XX% in on the continue focus to growth

capitalizing are a on disciplined a risk favorable approach, We with conditions catastrophe stable appetite. market and consistent including

XX% pricing to trends. begun Turning responding teens property compensation. Low commercial has remained general Commercial in positive in accelerated in slightly comp umbrella pricing. low and pricing written Lines in quarter, renewal workers' pricing in, to pricing in and X.X% Workers' Overall, double to compensation renewal, but the societal including was Commercial ex remain moderate, in X.X% written Lines to high is single All above excess comfortably strong digits. the in pricing excluding digits trends. the loss quarter. liability, auto cost

Personal comments Summit. to our recent Annual we Lines, share Agent let few moving received a me Before at

are business broadened with our we more to partners engaging and strong solve problems and advantage recognize and with exceptional with Our taking where strength. Lines marketplace our culture disruption top Commercial Asian the of ever our to efficiency. unified our largest business than capability and They confirms resonating cross-selling as Feedback up drive increased that talent evolution customer and portfolio, are opportunities agents small community, a particularly team, customers new product appreciate opportunities. the opening

talent also Our as and planning strategy investments in pacing our the and technology were succession compelling was industry-leading complemented. and described

on half market that capitalize Lines to opportunities. partners our we from exceptional have it and feedback results Commercial tools team, Our and momentum makes the first clear

Turning to Personal Lines.

price strong at financial very toward continued quarter second nearly improvement. renewal progress written remained XX%. Auto performance Our demonstrates increases margin target

While of from of with for they peak quarter, levels below remain year. trends the view the loss our last consistent moderating remainder

increases we pricing renewal auto net increases for Personal year XX% aligned with earlier Investments mentioned, XX%. In price insured loss be outpaced written of approximately expect renewal our an have the rate to of trends. comprised underlying prevailed enhanced offering our Lines of and I Dynamic As month, quarter launch in telematics during value capability written the homeowners, this continued cost offering. Pricing product price-to-risk inside matching TrueLane with the

in along XXXX. with Lines Personal loss personal margins this, return we auto pricing trend and reach target to in gains position capabilities As moderating XXXX, profitability near-term risk segmentation, like enhanced to

Benefits. Group to Turning

and half margin quarter included continued X.X% These the and first a the the half XX% loss of execution. million the sales disability strong Our with was life for for first prior growth in premium X%, versus the year. XX% lower of Fully reflects the strong long-term above year. consistent core first ratio earnings the ongoing stellar still $XXX of results book and year insured of quarter, persistency,

and in relatively investments the sustained outstanding and lines, a macroeconomic market Hartford continues of The and to performing the across wage and ongoing The disability. In unemployment a U.S. rate Beth Hartford's Hartford's our The classes business. both investments. the strategic labor has details. From a conditions. of to provide financial strongest half the continues to with range testament workers' the performing year, range, momentum quarter The well in of goals, summary, support continued will be positively X low more into of the talent, our Moving portfolio strategy, supportive asset growth resilient environment still standpoint, with and been an delivered largest businesses. and of X% compensation our second which to heading affect execution, impact market

I offering, while we differentiating capabilities market more efficient. continue As our said on to before, broad becoming and product all build

factors exceptional and excess expected pricing contribute of the about to financial extend execution, record and delivering customer-centric superior performance. talent underwriting Hartford our manage to sustain our innovative And All are proactively we to disciplined my excitement capital. of and ability future our track continue industry-leading and confidence The Our results. to technology these

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

Beth Bombara

profitable year, from of that we quarter to XX% premium and ratio Middle XX% and an continue leverage, growth. Lines, The pricing further underlying combined an by reflects exceptional prior property positive & increases year. prior and the an segmentation delivered underlying was XX. Favorable results. underlying of of increases delivering quarterly Commercial Large building Lines impact basis. In the to by strong written combined driven million, wholesale achieved The with growth relatively of record for premium by In combined Personal of strong Homeowners written net or a ratio talent and and another driven XX-month growth, to combined Commercial of ratio of XX.X, were XX.X. ratio the on ratio X impressive strong underlying in prior XX% premium written $XXX core industry-leading XX.X%. XX% channel. of growth. Global quarter Small the the combined on including the of In business combined driving earnings exceptional XX.X. renewal was share per execution. an auto, improved increased XX.X% XX.X% XX.X diluted also below of results premium XX.X of an were its of increases with written premium outstanding with underlying Commercial growth growth underlying analytics strong written growth of Thank in quarter pricing million points rate X% pricing of premium for written earnings an and underlying quarter Specialty's continued accelerating pricing Core XX% core you, XX.X%. an written had premium $X.XX our XX.X, earned ratio $XXX Chris. trailing deliver new results of homeowners, written ROE increases losses had over the flat and price contributed ratio earnings Personal with year. Written earned XX.X% exceptional track with the non-CAT Lines excellent combined

loss ratio ratio. with June to improvement we with the driven our X- XXX.X in total ratio by almost We higher XX, auto loss auto increased have due on previously was the in X.X discussed. The and is full-year a Through Lines combined We points, underlying track points the achieve are expectations as marketing Personal lower very improvement than of line are our ratio prior X.X underlying to results. to in anticipated. the seeing improvement entirely period, expense our year in as pleased direct X-point by costs remain we

expectations. or on XX% and losses catastrophe new while than our growth results P&C states. With in us the industry, for were $XXX combined enables have respect catastrophes accident significantly states business, rate which We million in X.X marketing X.X resources allocate million for efficiently year before new catastrophes, compares XXXX. our model combined achieved ratio to points, business current representing And adequacy business only to to approximately contemporary of elevated in tax were the or points slightly $XXX were ratio higher those

and XXXX Navigators We management commercial to Lines XXXX no continue partially to to catastrophes, $XX ADC, which primarily modest deferred in actively favorable net aggregation auto discipline, impact million reserve development in positively more the was reductions years accident with earnings in liability. The and prior manage higher-risk core workers' income reserve by related related increases earnings. to on Personal impacted tax, were general in and our liability, underwriting million, assumed through years. due year was amortization general $XX liability million increases primarily $XX of with We within recorded before some states. Total reserve core increase reinsurance exposure to bond, recent which offset to CAT net gain compensation, certain especially accident

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

lower ongoing The group Core X% a long-term of life with driven paid positive XX% margin medical persistency performance was points risk X.X Benefits. over was was premium of benefit, prior strong rate growth, quarter ratio insured group ratio loss by insured growth New XXXX, at growth. Group leave first albeit disability than with disability reflect of adjustment as York book in group reflects by fully and claim earnings incidents premium strong severity. and lower lower due was and loss higher XX%. year higher Paid and to of offset Leave loss primarily exceptional. ratio to family The than well at Turning in XXXX lower a Family disability exposure life a consistent flat as products. Fully XX.X XX.X Results essentially claim and

Turning to investments.

of insignificant. quality credit diversified results. an to high solid the A+ continues rating credit Our and portfolio remains with of overall produce credit net The losses portfolio average remain

X.X% yield partnerships For before tax, with first income total the was million. limited slightly quarter, above net $XXX quarter. The annualized investment portfolio excluding

as reinvestment rates ago quarter higher from from points in benefit the up evidenced basis to by period. up and the XX continued the points rate yield our We reinvestment XXX first X.X%, of basis second from quarter year

quarter. As expected, returns our were with X.X% of consistent first annualized the LP

the we returns XXXX, likely year LP somewhat of to to be results. Although is XXXX full the below second be anticipate stronger in half

we long levels. However, will generate term, over LPs remain returns confident with the historical that, consistent

Yesterday, XX% strong in businesses. capital. the approved as $X.X higher reflecting $XXX remaining. authorization than authorization, effective of existing capital repurchase of generation This which authorization, authorization XXXX had which is million of billion, new to XXXX, XX, through X, XXXX, Turning the share Directors the XX, approximately our a June Board of August is December addition to the

pleased first in back to closer expect would X $XXX we and be results share our through for execution per are the summary, quarters, activity Susan. delivering performance $XXX quarter. contributing several million value new turn with to financial these very beginning enhancing With activity last the the Over thereby repurchase third repurchase now quarter. In in consistent excellent very to to been we consistent all profitable at industry-leading our growth, authorization million returns, with the share stakeholders. I call quarterly place, months, will demonstrate has our

Susan Bernstein

Beth. the We take question. will now your Operator, for a repeat can asking please questions. you, Thank you instructions

Operator

the Wells first Your of Greenspan Fargo. Instructions] comes line from [Operator from question Elyse

Elyse Greenspan

on attribute issues. said the as as to to you is think question and pricing first excess My I sequentially. environment. societal And GL rates commercial responding Chris, well umbrella improved it you

that the your Given that from would trends industry, expect you issues reserving emerge continue upward across trend pricing just we've would an on here? seen

Christopher Swift

still Elyse. basis you up about. points, very pleased we X.X%, moderating which I as you say, talk but with question, our the property with about moderating. could digit, double up even X.X%, would property general, in Thank basis for in we're pricing, pricing some The quoted, points, XX it's remains XX

the obviously, cost trends. I'm keep to execute and to ability in the lines, up stay with proud and of which, needed liability that loss So of ahead our again, get leaves, their and our very team cases, most rate

special, is So the at add I'm mission quarterly. job And that's about if a the MO, guidance would I rate needed don't environment. great anything a MO, very you given we important to getting looking monthly but know team talk doing and team the that your

Adin Tooker

basis you, second first were rates Elyse, additional that No, data point I quarter. would would points and The Chris. our quarter-over-quarter, I the quarter echo access only that, is umbrella give over up XXX

we continue trends work getting at really into book So seeing. to hard enough we're that rate the the to respond to

Christopher Swift

going So is Elyse, to the I think up. let don't environment

a disciplined. us So disciplined the going rate risk be pace you going to increasing should continue be that's or quibble and disciplined at expect in to whether not we're you, in in with to pushing to book consistent but I'm an for selection and

Elyse Greenspan

being And about guess, the out I of I that we your kind then entities? how all new gave cash my flow and property is Is by is driven on the second quarterly, new couple incremental casualty should authorization us incremental the Or question the years? of, think the rate Beth, over next on buybacks. of appreciate run uplift, you dividends

Beth Bombara

it's our Yes. across I say would really businesses.

fact the from that said, really of the we the strong previous was earnings reflective the authorization As authorization just generation. is increased

capital As to generation various and you we the feel entities see about as bit seeing, our and the we we that fluctuate legal that year-to-year dividends very reflect would know, good quarter-to-quarter we can a have. we're expect But that. dividends manage that

Operator

line comes TD next of Cowen. Our Andrew Kligerman question from from the

Andrew Kligerman

at too? if you particularly, business XX% area And the us interested is there, question with you're combined growth. and looking Terrific what reinsurance XX.X could you're where in lines I'm specialty. First of to underlying around share Wondering growing?

Christopher Swift

Andrew, our its But range thank liability which, joining would us full diversified. specialty quite again, I wholesale, for business component, E&S say if I is products. look property today. and wholesale, at of you biggest the our it's uses

aspects particularly seeking what So that We've book, strong. we're there. rate about the that liability been on Rates feel good we're various the books. doing increasing are of

new premium. the written ever in in relationships, expanding above time I as we're going wholesale billion the relationships. So distribution said, it distribution first $X again, culminated And

really on reinsurance of wants our MO, XX% about that. I'll our a XX%. anything. is So growing feel then to add reinsurance XX%. reinsurance I about would we at I global basis, Lines a would which But comment business and ask he say, property, growing that is if at on good business, then Casualty non-property make growing say is And is global XX%.

business be run before. of $XXX this to I going about this rate think us Andrew, million year. a I've characterized this for is

It's taking dislocation superior So and in outstanding the risk-adjusted marketplace of. it's disciplined proud of very we're something producing advantage niche. It's in that been returns.

Adin Tooker

add I'll to be in wholesale Global the I overall in strong more maybe flow on bit think Specialty. just Andrew, line. I every a mean really little product continues

executing invest We well. are teams The continue teams. in to the really

our are casualty construction We known for prowess.

in are certainly and on property the underweight wider and a marine. we're We wholesale, spread other of parts pushing into

So that just we there. upside there's know more said

Andrew Kligerman

That's business you lot ago had when acquired X a of years doubters impressive it. that for Yes. pretty a

next my conditions? in up. So workers' what, actually, ex inclusive comp, of pure of bounced that you're X.X% terms unless let of exposure is know question rate -- sneak get in Or talking that -- you is also just the rate? something I That me that pricing

Christopher Swift

rate, consistent X.X% this we if we I say, a upon is, the question typically would that the What there's quarters. prior is exposure call quarter, X.X% comment acts with of Yes. it fairly as about

Andrew Kligerman

'XX. guess difficult That focusing it. million other to 'XX about And then to I 'XX. GL. on more just $XX reserves, on I to question [indiscernible] And in my think want is, all reading modest that. adverse was Got I the make sure 'XX it's the

you million the read and that on reserving we auto? the that, doesn't was Anything should into do your like was lines an pretty in good the commercial casualty adverse quarter, $XX but Chris? seem about Or XXXX. feel that So auto impact. Commercial

Christopher Swift

chair, how think, I'll of I healthy, picked, what very, balance sheet, The resulting Beth some loss high debated, over from I our Yes. time. mechanisms detailed very let add we've trends But Andrew. is a appropriate commentary, correlate knowing my X-, we've think, period X-year a management very confidence.

yes, these they of cycle, chasing tail realistic trying you So effect cumulative further as planning right. don't, on things say. But you to Any if it it Because be would Beth, and the on are we get in add? quarter, ourselves be commentary? work to detailed every a pride going that would and has you're you your every what

Beth Bombara

agree Well, auto, those your to as Chris, already accounts. specifically it reserve in of overall, comments, relates taken on feel commercial action we that with a related and Yes. I couple that the accounts we've really good took increases to really

you feel our to where Chris' detail adjustment, where I'll make in we When see will. But it As look do reserves we need the we we echo and very comments. total, subline in good step think again, at we and know, at by we an we are. look back about

Operator

of the Meredith comes Your next question from Financial. UBS Brian from line

Brian Meredith

First question, just quickly.

Florida there I So comp on little of reimbursement bit I on some us of reimbursements kind schedules explanation Maybe Medicare lot passed is talk little increasing offsetting Chris that. Can give workers' it, doctors. and of that. severity MO, And here a about workers' the about impact Are what think, comp, trends going of predicated talking a there that call a forward? know on you potential bit in was for legislation, recently is kind factors?

Christopher Swift

of what January I effective They XXXX. Chris. Brian, would pass? they X, did it's law that first, Yes, a say sort passed

So have for applicability it the back book. some does

So modest But basically getting in as we of services, rate. said, for you that increase really pay they're range across broad relatively a services, physician it's think us. that's

make really their filings rating Florida. What are obviously and needle into making these think materially is to then paid appropriate and for to in work that. the estimates getting that don't need moves anything we sure then obviously I loss guidance bureaus with the So it getting the on do rate

lag, off So just into filings appetite and to anything say of pricing or gets into underwriting bureaus it's be We races. approve, it's sort of going to but it an need to the that we'll a make a sure execution. wouldn't little from bit the change our I

Brian Meredith

property Chris, what then it competitive It'd kind more rate, seeing I the of you from if question, this property account And Because made small now. all right Great. account. did looks large talk about be that heard to response flat of you one down like lot is question, comment in my we've guess second rate. large more helpful way Elyse's a double-digit to account to still maybe getting

So it say was little double-digit surprising I heard when you a rate.

Christopher Swift

you your giving still want competitive Yes. address I'd I'm going to Brian. but to question, resist intel,

So I going global up last first had XX.X%. quarter, again, rates our we ex quarter, property business, would aggregate, reinsurance in say,

basis, increase everything This for Small the I rate quarter to And would across in Small is sort within would that XX.X%. high is BOP on binding division our our Commercial seeing that like-to-like, of a say portfolio highest single our say same I Commercial, else we're the and in digits. E&S then product

disciplined, quite those in think I quite lines again, appropriate So of business.

So what said, I would I is well. But the think, add? you executing MO, as again, team

Adin Tooker

we're hanging a space, bit in would property and in of the our kind just Global and we we and Brian, in shared market write a and we wholesale but the really middle do we Specialty, a the and and that place I layered it's well. of commercial large book writings, in seeing that's layered competition. middle bit little most Where the our say, shared have little XXX% lot don't have in

Operator

comes from question of James. Gregory Raymond from the next Peters Your line

Charles Peters

is on sequential combined this you the I looking Or Is your XX auto you the that business. guess So bit it little like deck, it end up for XXXX? comments, looked the I'm thinking why March the Slide and full to beginning the from said the is question, in at homeowners ratio, year? And in hit it trends that a investor reason sequentially I'm and underlying to the like for quarter. Personal I we're by the first the the of the year about ticked underlying year Chris, going Lines in of or target Lines Personal your XXXX. the think expect margins of focus on

see there next over the be any cadence how that developing would XX months helpful. you on So color

Christopher Swift

say context. there. comment I a of couple to Happy things, Yes. would just just

impacted Your sequential by is expense. trend primarily

we countrywide it our in that whether I paid, whether and TV, clear the business advertising be in in back turned pretty a print, be basis, on adequate, be way, now be ARP. it were we're on we've whether that whether think marketing a statements, rate holistic it new particularly

So Beth, in that, is on that's say we say, we cost I perspective, trends ended would would But again, still margins. low margin about to on still half we're mid-teens. would for of say? year. But And double could is in And to cost said talked back would moderating. mid that we reverting our say, loss moderate it, we I basis, 'XX, we second continue a in and we've what trends get X-point with to XXXX year back essence, normal. I our year, all full loss loss improvement target would are financial think the particularly think sort we earn-in the statements. And target they're I see from track you going of then as as this digits, X- recording continue I rate to 'XX, to in to the we're be the say what's and context, cost a and

Beth Bombara

and year. we the typically through is you ratio quarter as couple underlying point everything mind at that that when points I see combined we sequential ratio a quarter every that keep typically said, lowest loss go Yes, auto in out is quarter Chris. I of agree in you first thing One with look would just our the

increase Chris you than shows relative you that to less said the making little put into that marketing are of maybe on, expense that mix, when with So trend. the combined because of what X think we point progress I that -- about turning

consideration. to have just You into seasonality the in take

Charles Peters

sense. That makes

Okay.

supplement, stats For looks Is for course question, the how I know core year-over-year second I what business. And follow-up sales quarter, in should the for looking June to the think Related of your bit in on I'm the business going objective to at called margin were we like about sales pivot is that result it a year? And that over least was out to your down the then Benefits quarter. at little a the some that, my basis. the XX% you of

color some Benefits So helpful. would on the be business

Christopher Swift

would But Greg, to by in rate very, of I and that, sort reminded X, with range, guide is that which based core years X% over we're very XX% the guarantees start making months is guide Sure. just through pleased the margin certain X.X% X% long-term on the above on saying X our people, for a X cases basis. I've next always our products.

the want really did call had a to mortality. But believe performing time. But this the an benefit is else thoughtful time higher an and of happen will pandemic, well. be we this endemic we're over out mortality we say said, that state next over but So years. in we still what period about that sort can coming of everything in of that great little improved the mortality particularly couple of But be quarter outsized out see, we would that's I to

consistent Our and steady performer. visibility very continues a be to

for comment at numbers and the any for X% that year expect any the guidance not long-term X%, our I'm would outperform time. in what I And end above but we'll going on or to continue year So us the 'XX. remainder for to obviously, see the of to point specifics holds then to

generally line on I'd and comment mean, to sales, which particularly when I monthly quarterly I on describe market like he top the the I basis. and we On conditions, talk about. But sales top a on would Jonathan and line and And there impacts what on that think could is Jonathan, there add some our you is market I top that competitive. premium and talk line?

Jonathan Bennett

number in we're can't on people reasonable competition of far have them heightened. can We thinking have differentiated. them compete is some to customers I price. on on loss are And vast future views differing based of more that. got, speculate new about Chris. right sophisticated. now, business one and comments, for on I say Their the room always right than Those it and We any their capable are our objectives strategy. quite marketplace, different entrants there's of needs When trend. But competitors, would relatively our a are

are tools that We have things digital and focus management The absence distinguish deep customer Hartford. capabilities, all

put market we adapting discipline, business when faster, So but We'd competitive maintaining to and crucial. like we're which We're always to it navigating think competing fundamentals the the we the underwriting of situations, business. all for quite focused we're obtain. the well. We're together, be pricing believe is growing we to on we want that

Operator

line Bank of question Shanker next the of from Your comes Josh America. from

Joshua Shanker

Yes.

to coming Or it the skeptical are down you you that that changes for year going-forward not into current comp So about commercial current in be to maybe continues picks of loss picks last the margins, the think is does or your how you're Does mean this do to workers' that comp can some and when making maybe or so surprising workers' ago? improvement margins stability that your maybe favorable. and view that think actually favorability play are in actuarially in about overall forever? How years? a loss just compared you

Christopher Swift

thought know components you Yes. I margin maybe where where some today, it's would we how contraction Beth I obviously And that year into we we even well say more modest line and depending entered some to be, here. continues will heading thought. on And team to the we on would to are. know But again, modest we would say less modest say, did we're XXXX. a this or make Josh, that want we virtually and I we when are generally experience commentary tag that right remember, it.

that it's sure, Beth think expected. could we our are as I'm I, between frequency and working I assumptions all holding. and severity tell you So

and wage inflation were we're light assumptions probably a there. Our little outperforming

for of closely, it of still we're a you contributes line trends working. us what drivers loss and And you all Beth, that profitable in put very, would you skills, company cost would expect our together meaningfully. highly it the works. all It's a and area. But yes, watching expertise this business So It's as add? very of

Beth Bombara

agree trend take areas a I know trend, and the near that Josh, characterized relative we past still we about in take but our we've loss that inflation. what to happening Chris, consideration. look Again, are into picks how in consideration of we We when talked We X% holding term, you it. Yes. our make the what's And into obviously pricing. I I is is in long-tailed our line, is would at say, reserves medical this with the so one

and as well. some built been about continue we those our as just talking need see we've we're to But what in of is, rate to be we side. about steady benefit on the then, trends. And obviously, that seeing We philosophy loss some think frequency we

thoughtful compression. our So is a loss line bit we're a But again, this be want very of long-tailed picks. to feeling little we, that we and with understand that's why

Joshua Shanker

Just to said. things the X synthesize you

driven. So is but Is slightly the higher, right? that pricing pick that's

Christopher Swift

I would by say it's loss cost driven rate the impacted environment.

generally So have some loss when are rate the said effect we're margin trends, which expecting consistent, compression, pricing. our we of

not of So when positive of you're than slight sort and and compression, we're an goods pricing margin less continues is that's on covering have to some your be basis, cost assumption going sold feeling. to what

Joshua Shanker

Okay.

getting are ago. that's the But better. actually So obviously, long numbers

attritional to guess the the pieces trying right improving at property, I comp look moving just on in backdrop more now? liability, I'm picks? getting on the general things little at Are are where a is. better and the initial So caution workers' of the bit trend picks

competitors some said I or might worse. the this you people arguably, right figure have because things are I'm to your quarter wrong. trying the reported that's things give of out if that impression that ask getting before And

Christopher Swift

figure You're steady. out. again, from it smart, say would line, a pure comp it's you'll But I

Joshua Shanker

then And lines? longer-tail non-comp the

Christopher Swift

an consistently rate particularly and at by our comment and strong we're that very of quarter pricing. a we our lines, liability baked and the years staying think in going My those side line, where ability executing. in puts our least have our to picks we're trends Again, I is, of at characterize conversations every loss on period back into always appropriate digits, in over double X views think loss trend, those how would Because are compelling place. product trend, I we're and time a I extended detailed good ahead execute of I us but view with

So anything I'll and/or Beth add MO, look want if at additional. to they

Beth Bombara

of couple points. a add I'll Yes.

picks. So those as the that picks. years very of we good fact stabilizing which has building into as been loss said, our that of lines, again, we've that has well sort number loss Chris been we've on the a underwriting for as trend of about has above also effect And liability been pricing taking feel actions the the

our some to quarter one we and of loss very would that that the beginning normal the all So than out all this line at quarter-to-quarter, property just when the volatility And our year, look that are see can feels say, expectations line, I Small But relative you what called better good. And picks in anticipated line, of with that. then non-CAT the area you slightly we overall, that. Commercial. performing was in primarily at things in in

Joshua Shanker

Thank of you appreciate much. detail very face my the I questions. on the

Operator

Kinar comes Your the line from next Yaron of Jefferies. from question

Yaron Kinar

remaining workers' a on about there? maybe maybe you'd severity seeing second. Maybe level I share, know here bit, be you're in if that forum. but would I the are of little if maybe peel up willing curious trends could. to to each comp hear long-term But trends know the a onion I bit, still deeper love expectation. was more there don't staying moved that to public expectations and a below we overall and a for But the frequency little loss one

Christopher Swift

frequency X-ish, than I the little said that medical to talked up we don't. it pretty that. in maybe past Yaron. clearly, never know don't our say Yes, a said trends long-term I what X% from because or other We trend bit I ticked has know inflation to which below X-ish just medical still we you trend about maybe think think applies. just We've

but enough. you, we've So to given I disappoint think you sorry

Yaron Kinar

life worth on I as Group what growth. considering would a so is be expectations. margin like the about to But are harping bit And figured this. quarter, that more you if to know it underwriters, I on side, moving on I order I'm curious No, endemic And a sustainable you about like be more And this talked to little asked Okay. seems do obviously, the bit it the try. up between about the pricing the pricing don't in last balancing would then know of art I hear sounds I Benefits. And to. I last and overshooting more because margin growth. a there? to I quarter, outperformance taking that maybe be apologize mean give just maybe I achieve why think not

Christopher Swift

No.

Yaron Kinar

No.

Christopher Swift

we X And again, guarantees. X with years and to particularly area, are remember, and I'm in these too. generally, understand, rate looking I Jonathan Again, contracts X science. But to do this art life at

really, is we have any to oopsies. errors. tight, want and want margin don't for there the So air really to any have don't We

discipline is X-year that disability generally So is there. guarantees. rate The

reprice So a little you businesses, get different or short but P&C to XX every months. than of X sort tail

So making that's come Jonathan, into you're and you the mechanisms commitments. But medium-term would additional add? where caution those when what play

Jonathan Bennett

I'd Chris, to be like X could trigger dial it I work turn to But doesn't clicks more it only it effect. Yaron, like that that something and I way. really a and that could

and compete pour So that, you're -- of information, we data into hard. we ourselves do we the credibility. a have cases market, lot the get in in through when get of particular, some larger We to position

it. If mistake our ourselves discipline those answer, we and for walking outlook keep by that be to in digging that as So win of we'll and part staying interested we and we work we environment like to into our comfortable to that expectations requirements the with there And and is well. we're for cases. profitability on true more we'll to competing trend find at than on continue is hard growth of it, the and feel no our shortage off about prudence. right and exercise work But will at away feel make continue the to no

Operator

next from line Evercore ISI. question Your Knudsen the Peter comes from of

Peter Knudsen

continued pressure help about prior of maybe The property, on to about to on that's a And little comp shift bit from if that any pressure? commercial how potentially workers' comments up following margins? Just you offset and might about shift some margins. Could mix comment in a that mix enough versus Hartford's the remarks prepared talk those

Christopher Swift

you, picks. generally, the ratio, comp with on combined depends share it than duration. would have I review its going ratio, property long is to Yes. But loss a tail Peter. of lower Obviously, given loss

overall the that combined So of underlying particularly, that's more just obvious, mix in, of you go the portfolio will if ratio, down.

in past diversified made the CAT we we've to allow that that think many thoughtfully us with that and in talked good to grow it. portfolio principally risk a earn I returns property have doesn't willing investments compete good so management because tools, about to we've it outsized are with

and to really, compete risk-adjusted to earn we wrote years the we invested grow. last have a want over and mean ourselves the today too, of put a energy in to really and we So hard again, X to to it's because I return. time not just have lot have capabilities good position

component. I an So that's think important

I year, nicely come give $X think of $X of track the other billion growing that couple and to sort you just component up think XX% is, this I'll to in I from range. be on of written close which we're would years a back premium billion

prepared said I I remarks. think my in

a there's in skills we investments it So of environment complexity, building it lot well you in together navigate disruption lot where because we're able have the but and put and today. an talented the in to competing of people we're all of a and

Peter Knudsen

about account Okay. prior know I Great. but I a And pricing, this national so that, the into from just get question, decent we following did up quarter, large growth national acceleration see accounts on first won't talked quarter.

maybe guys driving just the that? little was and opportunity if talk bit a So seeing could about there I'm wondering you you're what

Adin Tooker

which national Yes, Peter, MO. The deductibles. casualty business it's with large accounts our really business, is

the the compare has really date. differ, think to the compared quarter I chunky sequential is because renewal renewal quarter-over-quarter a dates that business hard

a think is would better year-over-year one. compare I quarter the So

The the is we feel We is last compare year. teams We win incredibly new the want business I second underwriting in second accounts overall, That of well. disciplined but best it. are process. some national think to grow good But did a quarter quarter, doing book. about the the

Operator

now closing the to over our And the turn question-and-answer will end we now call Spivak of remarks. reached Susan for have I session.

Susan Bernstein

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

Operator

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

now may disconnect. You

The Hartford Financial Services Group, Inc. (HIG) 26 Jul 242024 Q2 Earnings call transcript