The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — The Hartford Financial Services Group — Q1 2017 Earnings Presentation
14 slides from The Hartford Insurance's earnings presentation, Apr 27, 2017
Slide 1: First Quarter 2017 Financial Results Presentation
The Hartford Financial Services Group, Inc. April 27, 2017 FIRST QUARTER 2017 FINANCIAL RESULTS PRESENTATION
Slide 2: Safe harbor statement
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-l
Slide 3: 1Q17 key financial highlights
1Q17 key financial highlights ▪ Net income per diluted share of $1.00, up 27% from 1Q16 Earnings ▪ Core EPS1,2 of $1.00, up 5% from 1Q16, as a 2% decline in core earnings1 was more than offset by the 7% reduction in weighted average common diluted share outstanding due to repurchases ▪ BVPS, ex. AOC
Slide 4: 1Q17 core EPS of $1.00, up 5% over 1Q16
1Q17 core EPS of $1.00, up 5% over 1Q16 ▪ Core earnings decreased 2% to $385 Core Earnings (Losses) By million; primary drivers of core earnings Segment 1Q16 1Q17 Change ($ in millions except per diluted share amounts) decrease were: Commercial Lines $246 $224 (9%) ◦ P&C underwriting gain1 decreased
Slide 5: Book value per diluted share, ex. AOCI, of $45.80, up 3%
Book value per diluted share, ex. AOCI, of $45.80, up 3% from Mar. 31, 2016 Book Value Per Diluted Share, ex. AOCI ▪ $45.25 BVPS at Mar. 31, 2017 ◦ Up 2% from Dec. 31, 2016 $45.74 $45.24 $45.80 $44.74 ◦ Up 1% from Mar. 31, 2016 $44.27 ▪ $45.80 BVPS, ex. AOCI, at Mar. 31, 2017 ◦ Up 1% from Dec. 31, 2
Slide 6: Commercial Lines: Underlying combined ratio deterioration due to commercial auto and general liability losses
Commercial Lines: Underlying combined ratio deterioration due to commercial auto and general liability losses ▪ Combined ratio was 96.0, 4.9 points higher than Commercial Lines Combined Ratio 1Q16, reflecting: 95.0 93.9 96.0 ◦ Higher CAT losses of 4.2 points versus 91.1 91.3 5.2 3.9 5.1 2.7 points i
Slide 7: Personal Lines: Core earnings increased 23% over 1Q16
Personal Lines: Core earnings increased 23% over 1Q16 ▪ Core earnings of $32 million increased from Personal Lines Combined Ratio $26 million in 1Q16 principally due to increased 112.6 106.7 underwriting gain and higher investment income 99.9 18.5 100.2 5.0 99.3 10.1 4.1 8.1 22.3 23.6 22.8 ▪ Increas
Slide 8: Personal Lines Auto: Profitability improvement initiatives improving 1Q17 results
Personal Lines Auto: Profitability improvement initiatives improving 1Q17 results versus adjusted 1Q16 ▪ Underlying auto combined ratio of 96.6, up 0.4 Automobile Underlying Combined Ratio points over 1Q16 as reported, prior to the impact 1Q16 1Q17 Change of unfavorable 1Q16 development in 2016 Unde
Slide 9: Personal Lines Homeowners: Underlying combined ratio up 3.8 points
Personal Lines Homeowners: Underlying combined ratio up 3.8 points primarily due to higher weather and fire losses ▪ 1Q17 homeowners combined ratio of 103.4, Homeowners Underlying Combined Ratio an increase of 18.7 points over 84.7 in 1Q16 79.6 78.9 75.1 74.2 74.7 primarily due to higher CATs and le
Slide 10: Group Benefits: Core earnings down 17% due to state guaranty fund assessment
Group Benefits: Core earnings down 17% from 1Q16 due to a state guaranty fund assessment ▪ Core earnings of $40 million, an $8 million Core Earnings and Core Earnings Margin ($ in millions) decrease from 1Q16 due to a $13 million, after- $59 $53* $51 $53 tax, state guaranty fund assessment $48 $46 ▪
Slide 11: Mutual Funds: Core earnings up 15% on higher investment management fees
Mutual Funds: Core earnings up 15% primarily due to higher investment management fees ▪ Core earnings of $23 million up from $20 Mutual Fund2 Net Flows ($ in millions) million in 1Q16 primarily due to higher asset management fees from increased assets under $1,333 management (AUM) $(186) $194 ▪ Tota
Slide 12: Talcott Resolution: VA and fixed annuity contract counts declined
Talcott Resolution: VA and fixed annuity contract counts declined 10% and 6%, respectively, since Mar. 31, 2016 ▪ Core earnings of $83 million increased Talcott Resolution Core Earnings ($ in millions) from $77 million in 1Q16, primarily due to $111 $104 higher net investment income from LPs $91 $33
Slide 13: Investment income up 5% primarily due to LPs
Investment income up 5% primarily due to LPs ▪ Total investment income up 5% over 1Q16 Total Net Investment Income ($ in million) primarily due to a $62 million, before tax, $772* $758* increase in income on LPs, partially offset by $696* $735* $93 $728* $40 $73 $70 lower asset levels and lower annu
Slide 14: Excluding LPs, P&C investment income essentially flat
Excluding LPs, P&C investment income essentially flat Total Net Investment Income ▪ P&C investment income up 14% from ($ in millions) 1Q16 due to a $39 million, before tax, $305* $310* $310* $292* increase in investment income on LPs $272* $36 $36 $45 $23 ◦ LP income up from $6 million, before tax,
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