HARTFORD FINANCIAL SERVICES GROUP (THE), INC. WE ARE
THE HARTFORD
A Leading Provider of Property and Casualty Insurance, Group Benefits and Mutual Funds
The Hartford Financial
Services Group, Inc.
Investor Presentation
Copyright © 2021 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford Copyright © 2023 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford
SAFE HARBOR STATEMENT
Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford's future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ, including those discussed in The Hartford's news release issued on October 26, 2023, The Hartford's Quarterly Reports on Form 10-Q, The Hartford's 2022 Annual Report on Form 10-K, and other filings we make with the U.S. Securities and Exchange Commission. We assume no obligation to update this presentation, which speaks as of today's date.
The discussion in this presentation of The Hartford's financial performance includes financial measures that are not derived from generally accepted accounting principles (GAAP). Information regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, is provided in the appendix to this presentation, the news release issued on October 26, 2023 and The Hartford's Investor Financial Supplement for third quarter 2023 which is available at the Investor Relations section of The Hartford's website at https://ir.thehartford.com.
From time to time, The Hartford may use its website and/or social media outlets, such as X (formerly known as Twitter) and Facebook, to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at https://ir.thehartford.com.
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AN UNWAVERING RESOLVE
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THE HARTFORD
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OUR VALUE PROPOSITION
We are a Performance Driven Culture with a history of strong financial and shareholder returns.
We have, and will continue to create value for shareholders though efficient capital allocations, strong operating performance and expense efficiency.
We have the right business lines to compete in markets and produce superior risk adjusted returns to maximize shareholder value.
Invest in The Hartford for consistency, transparency and execution on financial goals.
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DIVERSIFIED INSURANCE BUSINESSES
Provide a strong and balanced platform
Group Benefits
Leading U.S. Market Positions…
Leader - P&C Small Commercial
#1 - Fully insured disability inforce2 #1 - Full insured disability sales2
Hartford Funds
4%
Personal
Lines
14%
29%
#2 - Worker' compensation insurer, based on direct written premiums1
#3 - Combined fully insured life and disability inforce2
#5 - Commercial multi-peril carrier, based on direct written premiums1
Leader - Hartford Funds with 51% of funds rated 4 or 5 stars by Morningstar as of December 31, 2022
…With Strong Competitive Advantages
- Well-knownand admired brand developed over our 200+ year history
- Diversified insurance business
- Broad and deep national distribution partnerships
- Advanced technology, with significant investments in underwriting, claims and customer service
- Recognized for claims excellence
Revenue
Contribution
Across Our
Segments3
Commercial Lines
53%
Diversified Earned Premiums
($ in billions) | ||
$18.0 | $19.4 | |
$17.3 | ||
$5.4 | $5.5 | $5.9 |
$11.9 | $12.5 | $13.5 |
2020 | 2021 | 2022 | |||
1. | Per 2022 S&P Global Data | P&C | GB | ||
2. | Per LIMRA, Year-end 2022 Survey | ||||
- Revenue contribution is for the trailing 12-months, excluding the Corporate segment, for the period ended September 30, 2023
- Compound Annual Growth Rate
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COMMERCIAL LINES, GROUP BENEFITS & PERSONAL LINES
Continuously investing and improving
Commercial Lines
Small
Commercial
Unmatched performance:
- Market leader with unparalleled product and digital capabilities
- Superior agent quoting, self- service, and digital capabilities
- Strong retention and new business growth
- Straight-throughunderwriting
Middle & Large
Commercial
Reinventing and delivering:
- Selling expanded suite of traditional P&C and specialty products
- Growth in all industries as margins improve
- Transforming underwriting capabilities
- Enabling better risk selection and portfolio decisions through data science and analytics
Global Specialty
Accelerating value:
- Cross-sellingmomentum across commercial P&C with expanded distribution
- Reshaped portfolio, driving improved underlying combined ratios
- Integrating data and actuarial insights to augment decision making and inform risk selection
- Enhancing digital capabilities to drive best-in-class experience
Group Benefits
Leverage scale:
- Reimagine our processes.
- Expand Absence/ Leave management capabilities.
- Improve product competitiveness in Life, Disability and Voluntary.
- Maximize enrollment in Core and Voluntary through differentiated capabilities and content.
Personal Lines
Leading Direct Personal Lines insurer:
- Extended exclusive 30-year partnership with AARP through 2032
- New, innovative cloud-based auto and home product, Prevail, launched in 2021
- Investing in digital, leading to a fully online quote, issue and bind experience with robust self- service capabilities.
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FINANCIAL STABILITY
FINANCIAL SNAPSHOT
Solid franchise creating meaningful returns
($ in millions) | |||||||||||||||||||||||||||||
Earned Premiums and Fees | Core Earnings2,4 and Core Earnings ROE1,2,4 | ||||||||||||||||||||||||||||
$18,565 | $19,487 | $20,739 | $5,640 | 14.5% | 14.3% | 14.9% | |||||||||||||||||||||||
$1,349 | $5,238 | ||||||||||||||||||||||||||||
$1,277 | $1,488 | $19,390 | $328 | $330 | 12.7% | 12.7% | |||||||||||||||||||||||
$17,288 | $17,999 | $2,496 | $472 | $708 | |||||||||||||||||||||||||
$4,910 | 5,310 | ||||||||||||||||||||||||||||
$2,086 | $2,184 | ||||||||||||||||||||||||||||
2020 | 2021 | 2022 | 3Q22 | 3Q23 | 2020 | 2021 | 2022 | 3Q22 | 3Q23 | ||||||||||||||||||||
Earned Premium | Earned Premium | Core Earnings | Core Earnings | ||||||||||||||||||||||||||
Fee Income | Fee Income | Core Earnings ROE | Core Earnings ROE | ||||||||||||||||||||||||||
Book Value Per Diluted Share (BVPS)
(excluding AOCI)2,3,4
$47.16
$50.87$53.66
$57.12
2020 | 2021 | 2022 | 3Q23 |
- Core Earnings ROE based on trailing 12-month average common equity, ex. AOCI and trailing 12-month core earnings
- Denotes financial measure not calculated based on GAAP
- Accumulated Other Comprehensive Income
- 2020 values do not reflect the adoption of updated FASB guidance on accounting for long duration insurance contracts; however, the impact of such guidance on Company results for the other periods shown is immaterial
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FINANCIAL SNAPSHOT
Solid franchise creating meaningful returns
P&C Underlying Combined Ratio1 | ||||||||||||||||||||||||||||||
95.5% | 89.9% | 93.7% | 95.9% | 99.0% | ||||||||||||||||||||||||||
87.8% | ||||||||||||||||||||||||||||||
88.3% | ||||||||||||||||||||||||||||||
89.1% | ||||||||||||||||||||||||||||||
83.1% | 89.3% | |||||||||||||||||||||||||||||
92.4% | 89.4% | 89.5% | 90.8% | 90.3% | ||||||||||||||||||||||||||
3Q22 | 3Q23 | |||||||||||||||||||||||||||||
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||
Commercial Lines Underlying Combined Ratio | ||||||||||||||||||||||||||||||
Personal Lines Underlying Combined Ratio | ||||||||||||||||||||||||||||||
Group Benefits Core Earnings Margin 1,2,3 | ||||||||||||||||||||||||||||||
9.5% | 10.4% | 9.8% | ||||||||||||||||||||||||||||
8.6% | ||||||||||||||||||||||||||||||
6.4% | 2.6% | 6.5% | 7.2% | |||||||||||||||||||||||||||
2020 | 2021 | 2022 | 3Q22 | 3Q23 | ||||||||||||||||||||||||||
Group Benefits Core Earnings Margin | ||||||||||||||||||||||||||||||
Excluding excess mortality and COVID-19 related short-term disability impacts1 | ||||||||||||||||||||||||||||||
- Denotes financial measure not calculated based on GAAP
- 2020 values do not reflect the adoption of updated FASB guidance on accounting for long duration insurance contracts; however, the impact of such guidance on Company results for the other periods shown is immaterial
- Beginning in 2023, due to decreasing impacts of the pandemic, the Company no longer discloses results excluding pandemic-related impacts
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Hartford Financial Services Group Inc. published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 11:48:01 UTC.
