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The Hartford (HIG) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended September 2023, The Hartford (HIG - Free Report) reported revenue of $4.21 billion, up 10% over the same period last year. EPS came in at $2.29, compared to $1.44 in the year-ago quarter.

The reported revenue represents a surprise of +0.15% over the Zacks Consensus Estimate of $4.21 billion. With the consensus EPS estimate being $1.95, the EPS surprise was +17.44%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how The Hartford performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Commercial line - Expense ratio: 30.7% versus the seven-analyst average estimate of 31.1%.
  • Commercial line - Combined ratio: 90.2% versus the seven-analyst average estimate of 91.8%.
  • Commercial line - Loss and loss adjustment expense ratio: 58.9% compared to the 60.4% average estimate based on seven analysts.
  • Personal line - Loss and loss adjustment expense ratio: 83.7% compared to the 82.8% average estimate based on six analysts.
  • Total Property & Casualty- Earned Premium: $3.74 billion versus the six-analyst average estimate of $3.78 billion. The reported number represents a year-over-year change of +8.2%.
  • Earned Premium- Commercial Line: $2.95 billion versus the six-analyst average estimate of $2.99 billion. The reported number represents a year-over-year change of +9.2%.
  • Earned Premium- Personal Lines: $784 million compared to the $784.79 million average estimate based on six analysts. The reported number represents a change of +4.7% year over year.
  • Revenue- Property and Casualty- Net investment income: $460 million versus $417.62 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +27.8% change.
  • Fee income- Personal Lines: $7 million versus the six-analyst average estimate of $8.25 million.
  • Revenue- Fee income- Group benefits: $54 million versus $50.86 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
  • Fee income- Commercial Line: $11 million compared to the $9.83 million average estimate based on six analysts.
  • Revenue- Earned premiums- Group benefits: $1.58 billion versus $1.56 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +8% change.
View all Key Company Metrics for The Hartford here>>>

Shares of The Hartford have returned +0.3% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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