The Hartford Insurance Group, Inc. (NYSE: HIG) reported a 23% increase in third-quarter 2026 net income, helped by a gain tied to the commutation of an asbestos and environmental reinsurance agreement. Underlying operating results were softer: core earnings declined 6% as lower contributions from Personal Insurance and Employee Benefits offset modest growth in Business Insurance.
Net income was $1.32 billion, compared with $1.08 billion a year earlier. Net income available to common stockholders rose 23% to $1.32 billion, or $4.82 per diluted share, from $3.77 per share. The quarter included a $497 million pre-tax net gain from the commutation of the asbestos and environmental adverse development cover. Net realized losses widened to $113 million before tax from $15 million.
Core earnings, a non-GAAP measure, fell to $956 million from $1.02 billion. Core earnings per diluted share decreased 3% to $3.50, with the per-share result benefiting from a 4% reduction in weighted-average diluted shares. Trailing 12-month core earnings return on equity was 17.9%, up from 17.3%, while net income ROE increased to 25.0% from 20.3%.
Business Insurance delivers premium growth
Business Insurance core earnings increased 1% to $731 million. Written premiums rose 6% to $3.8 billion, led by 7% growth in both Small Business and Global Specialty. Middle & Large Business premiums increased 3%.
The segment’s combined ratio increased to 91.3 from 88.8, primarily reflecting 1.7 points of higher current accident year catastrophe losses and 0.1 point of less favorable prior-year development. Its underlying combined ratio rose 0.7 point to 90.1, mainly because of a 2.0-point increase in the underlying loss and loss adjustment expense ratio.
Excluding workers’ compensation, renewal written pricing increased 5.3%, compared with 5.7% in the second quarter. Small Business recorded an 84.5 combined ratio, while Global Specialty reported 89.1. Middle & Large Business posted a combined ratio of 101.7 and an underlying combined ratio of 99.5.
Personal Insurance underlying margin improves
Personal Insurance core earnings declined 27% to $105 million. Written premiums decreased to $950 million from $987 million, driven by a 9% decline in automobile premiums, partly offset by 6% growth in homeowners.
The segment’s underlying combined ratio improved to 87.1 from 90.0 as underlying loss and loss adjustment expense ratios improved in both automobile and homeowners. However, the reported combined ratio increased to 93.2 from 88.7, largely because catastrophe losses were 6.8 points higher and prior-year reserve development was less favorable by 0.6 point.
Renewal written pricing increased 5.1% in automobile and 7.9% in homeowners. Effective policy retention improved slightly in automobile but declined slightly in homeowners.
Employee Benefits pressured by higher loss ratios
Employee Benefits core earnings fell 19% to $120 million, while its non-GAAP core earnings margin narrowed to 6.4% from 8.3%. Fully insured ongoing premiums increased 4% to $1.7 billion, supported by new business sales, higher exposure on existing accounts and book persistency above 90%.
The overall loss ratio rose to 74.9 from 70.1. The group life loss ratio increased to 77.8 from 74.2, partly because the prior-year period benefited from favorable development from an earlier quarter. The group disability loss ratio rose to 76.3 from 70.6, reflecting increased claim incidence across short- and long-term disability products and less favorable recoveries on long-term disability claims. A lower expense ratio and higher net investment income partly offset the loss-ratio pressure.
Investment income and capital returns
Net investment income increased to $850 million from $755 million, primarily due to higher limited partnership returns and a larger invested-asset base. The annualized limited partnership yield rose to 10.2% from 6.7%, driven by higher returns from infrastructure and energy-transition funds and sales of underlying investments in real estate joint ventures.
The Hartford reported $64.7 billion of invested assets at September 30. About 95% of its fixed-maturity portfolio was investment grade, approximately 73% was rated A or better, and the portfolio had an average credit rating of A+.
Book value per diluted share was $68.31, up 7% from a year earlier. Excluding accumulated other comprehensive income, book value per diluted share increased 16% to $82.47. The company returned $638 million to stockholders during the quarter through $475 million of share repurchases and $163 million of common dividends. It also announced a 12% increase in its quarterly common dividend to $0.67 per share.
The presentation did not provide a new quantitative earnings outlook. Management emphasized profitable growth, underwriting discipline, investment in operating capabilities and active capital management. Results remain exposed to catastrophe losses, insurance claim trends, reserve development and variability in alternative-investment returns. The company also cautioned that its forward-looking statements are not guarantees and that actual results may differ materially.
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