Hartford posts $956 million in third-quarter core earnings, down 6% year over year
Key Facts
Hartford said core earnings were $956 million, or $3.50 per diluted share, in the third quarter of 2026, down 6% and 3%, respectively, from the same period a year earlier. Chief Executive Christopher Swift said the company delivered "another quarter of strong results in an increasingly competitive market." But net income available to common shareholders rose 23% to $1.317 billion from $1.074 billion a year earlier, highlighting the divergence between net income and core earnings. Return on equity based on net income for the twelve months ended in September was 25.0%, compared with 20.3% in the corresponding period. The results came as core earnings per share declined year over year, despite an increase in reported net income.
Analysts had estimated earnings of $3.17 per share and revenue of $7.39 billion before the results, expecting earnings per share to fall 16% and revenue to rise 2.2% year over year. Earnings-per-share estimates had risen 3.62% in the sixty days before the announcement, while revenue estimates increased 1.44%; both estimates then held steady in the week before the release. In the actual year-over-year comparison, core earnings per share fell from $3.59, while total core earnings declined from $1.022 billion. The actual decline in earnings per share was therefore smaller than analysts had expected, while core earnings remained below their year-earlier level. The available results do not include a documented figure for the stock or market reaction after the announcement.
In property and casualty, written premiums rose 4% in the quarter, driven by 6% growth in business insurance premiums. Business insurance posted a combined ratio of 91.3 and a core ratio of 90.1. Personal insurance recorded a combined ratio of 93.2 and a core ratio of 87.1. Premium growth coincided with an increase in catastrophe losses in the business to $198 million before taxes, compared with $70 million in the third quarter of 2025. The company attributed the losses mainly to tornadoes, wind and hail, which added to underwriting costs.
On the investment side, net investment income was $850 million before taxes, up from $755 million in the comparable quarter. The company said the increase was driven mainly by income from limited partnerships and alternative investments, as well as a higher level of invested assets. By contrast, net realized losses were $116 million before taxes, compared with $17 million a year earlier. These items widened the gap between growth in investment income and the decline in core earnings, while net income available to common shareholders increased. Net income available to common shareholders per diluted share also rose 28% year over year to $4.82 from $3.77.
Hartford returned $638 million to shareholders in the third quarter, including $475 million in share repurchases and $163 million in dividends paid. It also announced a 12% increase in the quarterly cash dividend to $0.67 per share. The dividend is payable on January 5, 2027, to shareholders of record on December 1, 2026. On management, Swift said Mo Tooker will succeed him as chief executive on March 1, 2027, when Swift becomes executive chairman. Swift plans to step down from that role in the second half of 2027.
The company is scheduled to discuss its results in a webcast on October 27, 2026, at 9 a.m. Eastern Time. The event follows the results announcement and will give the company an opportunity to present details of the third quarter and discuss the performance of its businesses. Premiums, combined ratios and catastrophe losses remain among the key operating metrics in the company’s reported results. The comparison of net income with core earnings also offers a clearer picture of the differing trends in the two measures during the quarter. The announced cash dividend increase will be paid according to the specified record and payment dates.