The Hartford (HIG) Prelim. Q1 Miss Consensus

The Hartford (NYSE: HIG) today announced preliminary earnings estimates for first quarter 2023, including net income available to common stockholders of $530 million, or $1.66 per diluted share, and core earnings* of $536 million, or $1.68 per diluted share*.

(Consensus sees Q1 EPS of $1.99)

The company expects results in the first quarter of 2023 to include:

• Property & Casualty (P&C) current accident year (CAY) catastrophe (CAT) losses of $185 million before tax ($146 million after tax). Of the total CAY CAT losses, $138 million are estimated in Commercial Lines and $47 million in Personal Lines. CAT losses primarily resulted from the significant winter storms along the East and West coasts and tornado, wind and hail events across several regions of the United States.
• Commercial Lines combined ratio of 92.7 and an underlying combined ratio* of 88.5. The underlying combined ratio is consistent with the expectations for the first quarter included in the outlook the company provided in February.
• Personal Lines combined ratio of 106.1 and an underlying combined ratio of 97.0, which includes approximately $30 million, before tax, of higher than expected CAY losses from auto physical damage and liability losses primarily resulting from increased severity. Also included in the combined ratio is approximately $20 million, before tax, of unfavorable prior accident year reserve development from auto physical damage severity.
• Consolidated net investment income of $515 million, before tax, including $26 million, or a 2.5% annualized return, on limited partnerships and other alternative investments.
• Share repurchases in the quarter of 4.7 million shares for $350 million.

*Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures.

The Hartford will release first quarter 2023 financial results at approximately 4:15 p.m. EDT on Thursday, April 27, 2023.

CONFERENCE CALL

The Hartford will discuss its first quarter 2023 financial results on a webcast at 9:00 a.m. EDT on Friday, April 28, 2023. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

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