The Hartford (HIG) Q2 2026 earnings summary

Executive summary

• Net income available to common stockholders for Q2 2026 was $1.3 billion ($4.68 per diluted share), up 31% year-over-year, driven by higher net investment income, realized gains, and a significant tax benefit from the pending sale of Hartford Funds.

• Core earnings were $945 million ($3.42 per diluted share), up 1% year-over-year, with a trailing 12-month core earnings ROE of 18.7%.

• Board authorized a new $4.2 billion share repurchase program, a 27% increase over the prior authorization, effective through 2028.

• Returned $615 million to stockholders in Q2 2026 through $450 million in share repurchases and $165 million in dividends.

• Strong performance across Property & Casualty and Employee Benefits, with continued investment in technology and data capabilities.

Financial highlights

• Book value per diluted share (ex-AOCI) increased 15% year-over-year to $78.91; book value per share rose 17% to $70.28.

• Net investment income grew 22% year-over-year to $800 million, driven by higher returns from limited partnerships and alternative investments.

• Net realized gains of $64 million in Q2 2026, compared to losses of $19 million in Q2 2025, primarily from equity securities.

• Net income ROE (trailing 12 months) was 23.8%, up 4.0 points year-over-year; core earnings ROE was 18.7%.

• Combined ratio for P&C increased to 91.2 from 88.6, reflecting higher loss and expense ratios in Business Insurance.

Outlook and guidance

• Management expects continued strong ROEs and attractive shareholder returns, supported by disciplined execution and capital management.

• Net investment income for full year 2026 projected to increase, with portfolio yields broadly in line with 2025.

• The sale of Hartford Funds is anticipated to close in Q1 2027, with ongoing contingent consideration payments over several years.

• Ongoing investments in technology, AI, and risk insights are expected to further differentiate the business.

• Remain on track to achieve 2027 year-end targets for expense ratios in Business Insurance and Employee Benefits; Personal Insurance faces higher pressure.