The Hartford Financial Services Group posted fourth-quarter 2025 net income of $1.1 billion, up 33% from $848 million a year earlier, as lower catastrophe losses and strong premium growth boosted results.
Core earnings for the quarter reached $1.1 billion, or $4.06 per diluted share, compared with $865 million in the same period of 2024. The results capped a strong year in which full-year net income rose 23% to $3.8 billion.
The insurer's core earnings return on equity hit 19.4%, nearly double the 10% industry average projected for 2025, according to Swiss Re research. The performance puts Hartford among the top performers in a sector still grappling with elevated claims costs.
"[The results were] driven by excellent performance in business insurance, which once again generated robust top-line growth at highly profitable margins," said Christopher Swift (pictured above), chairman and chief executive.
Hartford's 7% top-line growth in business insurance outstripped the broader market. The Council of Insurance Agents & Brokers (CIAB) reported commercial property and casualty premiums rose 4.2% in the first quarter of 2025, down from 5.4% in the prior quarter.
Chief financial officer Beth Costello said business insurance posted an underlying combined ratio of 88.1, while personal insurance achieved 5.9 points of improvement in its underlying combined ratio. Employee Benefits delivered a core earnings margin of 7.6%.
The personal lines turnaround comes as the industry reaches rate adequacy after years of catching up on pricing. Swiss Re expects premium growth to moderate to 5% in 2025 and 4% in 2026 as more insurers hit profitability targets.
Lower property and casualty catastrophe losses helped lift fourth-quarter results, with Hartford's Q3 cat losses falling to $70 million from $247 million a year earlier.
Despite strong results, Hartford faces ongoing headwinds from social inflation – rising litigation costs that push claims expenses above general inflation. Swiss Re estimates social inflation has driven US casualty claims costs up 57% since 2013.
The number of nuclear verdicts – jury awards exceeding $10 million – more than quadrupled between 2020 and 2024, according to industry data, underscoring the importance of disciplined underwriting.
Swift said Hartford enters 2026 focused on underwriting discipline, distribution relationships and customer experience, factors he said "position The Hartford to continue delivering superior returns for shareholders."
Book value per diluted share, excluding accumulated other comprehensive income, rose 13% to $73.62.
