Hartford Financial Services (HIG)

Susan Spivak Senior Vice President of Investor Relations
Chris Swift Chairman & Chief Executive Officer
Beth Costello Chief Financial Officer
Doug Elliot President
Brian Meredith UBS
Elyse Greenspan Wells Fargo
Greg Peters Raymond James
David Motemaden Evercore ISI
Michael Phillips Morgan Stanley
Alex Scott Goldman Sachs
Andrew Kligerman Credit Suisse
Derek Han KBW
Tracy Benguigui Barclays
Call transcript
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Hello, and welcome to today's The Hartford First Quarter 2022 Financial Results Webcast. My name is Bailey, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions-and-answers at the end. [Operator Instructions] I would now like to pass the conference over to Susan Spivak, Senior Vice President of Investor Relations. Susan, please go ahead.

Susan Spivak

morning. Good for quarter for XXXX you webcast call us first on earnings. joining thank our today and And Yesterday, we reported earnings related results and posted on website. all our materials of the

and speakers For today, and Doug Costello, are CEO Officer; of President. Chris Chief the Financial The our Swift, call Elliot, Beth Hartford; Chairman

have remarks, Q&A their prepared a Following we will period.

future to few statements Act the description risks on this and of under Litigation of Reform and uncertainties can as those information these of in not comments These performance, results Private call. the do Chris are any could forward-looking obligation that Today's begins. from could different. consider actual before risks a SEC cause results and also update defined statements found filings. uncertainties Just call forward-looking to be or statements detailed XXXX. be includes Investors actual We assume Securities our A provided guarantees materially not differ should statements.

non-GAAP and in the included and financial filings as in well Our are commentary supplements. as financial measures. our measure these today reconciliations measures news the GAAP Explanations includes SEC comparable to of release

prior in of form please or now the on available that for reproduced year. call without website this one rebroadcast Chris. and Replays consent. call Finally, I'll may turn transcript note The be conference this will be of portion no over Hartford’s webcast written official any an The to Hartford’s

Chris Swift

for margin bullish April had exceptional then, The us joining of excited prospects we ability Last said, was the more quarter demonstrated after on for at quarter. been call, and first never these about our you thank Hartford to our have today. growth and through expansion. morning, execution deliver extremely I've quarter our further Good earnings Since commitments I and about future

first value diluted XX.X%. the up diluted AOCI, the quarter. share, core or was Book $XX.XX, or per million $X.XX $XXX XX-month momentum of with per core from prior per share was diluted We continued in ROE share, and earnings our $XXX in million quarter that $X.XX excluding earnings

deliver interest challenges its with to were share and of to start-ups likely in environment to balance repurchases The and return dynamic from quarter, investment on commitment anticipated new wages, remain the very a million is the confident We commercial historically We shrinking delivered very sheet long-term its are XX% savings. maximizing for exposure sheets across continue. growth, providing valuable of profitable March. of demonstrate holding capital appreciated new levels, stakeholders. up I that continued are business US equity prices yet, have applications And levels balance over healthy employment our while goals, levels the the ongoing of at are inflation. strong source as levels, XX% results Home historically return healthy value and to is optimism. consistent that view our positioned is to portfolio debt the and higher on businesses impacts past the we growth rising business to trend average $XXX address our end favorable for well results economic by raise our year, through a with During our Corporations reasons pleased fueled business continue low from profiles, perform where have pre-pandemic homeowners. to X.X% value Unemployment common These for these actions Ukraine US of during creation rates, period, secondary COVID, Fed there to and actions of remains consumers conflict dividends. while to high the to low, expansion. shareholders. is business which shareholders earnings through Hartford and of the expected to a

improvement, data how in translates with illustrate businesses. which expanding quarter, results margins into financial the and top Small Overall, and double-digit us strong product margins setting Specialty, billion data well half benefiting tools. to momentum from growth, first hold products, the from from Commercial, sustainable year, innovative consistent apart delivered this outperform annual competition. the increased positive from growth more digital as continue in we results and underwriting to highlights the a share are overall Last large second record sustained we than premium broader we clear maximize retention. our and profitability all performance. Lines up XX science Global And points and digital continued XXXX. investments with expertise with a quarter, line our commercial position expanding to offerings we very In strategy with the analytics, In as market in new turn eclipsing while and our let's Commercial leadership gain innovative Middle Now $X in premium. platform business of capabilities,

the share which have reinsured. tragic As at to Hartford's direct exposure and and the relates the is for modest conflict, The it suffering let the very death, senseless needless world's me pray an first, end within to we and perspective, this say, destruction From outreach meaningfully we violence. Ukraine region,

results in I to provides business as and definite pleased the our there transformative Prevail, hostilities. XX-plus experience and Beth with the segment. innovative in with drive and We out the progress cover am a uses our work exposure simplified we digital that financial science the start we profitable making quarter. have platform roll of our amount the customer reflect and expectations unique data cloud-based a new to age are AARP premium growth have relationship. to Lines, in run-up Personal line to a conflict were and will and of In the controlled actively impacts subsequent the

Benefits. Turning to Group

by As expected, the be pandemic. to impacted continue we

up one-time However, as of our higher XXXX when underlying existing expansion and year. for also to elevated capabilities, Gap] [Audio several contributed the investments prior the Fully we including reflects and forth improvement and to margin lift, in current customer increased in are persistency in over point comparable our from short-term wages premium expectations a that across rising and the performance modestly XXXX. and expenses future prior the three market growth. the was reflect months insured supplemental our down premium set the our quarter disability continues for to [Audio higher and accelerated X% for year Gap] of lead demonstrate quarter products. both first Modestly paid position. life, was trends higher solid higher employment in ongoing staffing premium in products as the full leadership quarter first are Sales states. benefited family medical Favorable rate year-over-year Adjusting the quarter pricing digital of and manage book disability year, costs to was with our long-term claims health Through incident in sales anticipated performing expected, disability administrative platforms. our the is reflected is from

consistent We ratio year quarter to be generally expect with results. first XXXX expense full the

number the the U.S. were quarter, the levels highest During of at of thus were their cases COVID elevated. pandemic and

a deaths conclusion, are at have in and levels, and past predicting cases start the their shown in -- XXXX. XXXX. about declined in Clearly, the two and that with is quarters have both we of April. current March to the cautiously strong remaining that cases optimistic test years rapidly is impossible. impacts off However, Hartford And But pandemic

the optimistic pressures. potential for outcomes about our of factors business, We easing are including impacting macro inflationary improving and pandemic

to portfolio benefit yield we core investment rising to environment and earnings capital. are XX% manage portfolio we interest from All prudently And XX% proactively over continue our expect to my generate continuing manage a We and these XXXX. will factors that the in to XXXX underpin rate ROE our time. confidence

our business as Our Hartford strategy a consistent in and results. have made established we've performer the with proven investments the

We returns. positioned consistently formula of portfolio well-performing superior risk-adjusted competitively and with a a and are winning achieve a complementary to businesses

the Beth. over turn call I'll to Now

Beth Costello

the the you, $XXX per for Chris. or diluted P&C and significant share portfolio, group investment pandemic-related contribution reduced impacts million results, quarter excellent Thank and $X.XX Core benefits. from earnings underwriting a reflects of

Chris As primarily political written aviation on net terrorism, losses, We risk $XX this million exposure war a political related insurance. violence commented, and of impact catastrophe to including recorded related and to credit results. modest had Russia-Ukraine is and

an As exposure by limited corporate treaties, for bonds incurred recorded provision premium million. by of issued losses we $XX our covered is a ceded reinstatement Belarus or in to cost allowance $XX the for of losses and The investment in million, direct result any of recorded $X reinsurance have amortized an a company's of we entities investments million not Ukraine. credit with quarter. Russian We do

lower X.X quarter of XX.X% combined first first exposure points in and business primarily driven improved and seasonality in policy results. the typically on $XX up prior In XX% note perspective, across small a a In that, top Lines XXXX. in loss a written Personal prior as from ratio to million, loss current to improved of retention, line balance the due the lower ratio in line and $XXX product core XX.X%, expense the Commercial COVID and from growth. reflects new for Lines, ratio has XXXX Moving and increase losses in premium The Commercial reserve in $XXX period. scouts were of strong of in stronger slightly year. commercial, several lower the quarter, period auto were first the cost anticipated. year the business lines from increase pricing reported written underlying combined the core and quarter the margins million million, boy by growth, underlying increases earnings would increased costs the I XXXX, reflecting earnings the an Lines, catastrophes

of upon, As into the impact the in costs. Doug we inflation book more rate comment given on loss progress will getting are making

is ratio the $XX a albeit I high favorable XX% quarter full being year expect mentioned. to the ago, development that P&C the which Although, of where exposures bit P&C reserve quarter million was net for largest XX% to $XX the we accident a just were included our than within million, first with in combined compensation were higher Russia, underlying workers' the impact inflation before the million year $XX to at yield tax, Ukraine prior end. we year, be accident contributor. guidance current catastrophes a related

$XXX disability $X loss a The quarter first to million core tax a ratio year million Group of Benefits. which Core expense level prior from increase of primarily development year disability current lower instance Turning the loss long-term and by first years. due higher disability a in to favorable The $X disability mortality before in long quarter increased XXXX. the quarter The cost loss year deployment included million in partially in disability, excess days level on prior and mortality was claim in loss X.X pandemic. the couple prior recoveries XXXX remain of earlier offset term to loss million quarter ratio and XXX quarter. offset with with strong million life, a increased assumption Core benefited the to in our of points term favorable ratio. are included quarters. relatively to line as earnings partially which in the incidents $XX compared earnings the the expectations, an was was a in of prior $XX loss period, in in from All an by ratio group over ratio year. prior compares for reflect the less with low consistent past Long losses million excess

premium XXXX, short-term to disability by impact. the incremental so the margin the than mortality quarter, offset first perspective, and lower points. handle and in our expense Consistent for seasonality was a earnings loss, remain partially guidance investors The by term a increase the short full earned impacted of be we elevated to estimate. and loss claims group would higher we X.X Hartford staffing savings X% Group From COVID in COVID benefit costs ratio core costs in full effective higher next expense four with increased excess benefits expense margins We Lastly, year technology for ratio growth. expect expectations, X.X%. underlying X% margin to was the the earnings confident our core year experienced disability excluding

decrease quarterly though rates, first market during AUM due interest of XX% resulting to the core a core XXXX. quarter billion, Turning equity decreased to to to in compared declines higher in Funds, in up $XXX earnings were quarter earnings, sequential Hartford

limited Our equity real investment balanced yield, investment The partnership X.X% XX.X% tax. annualized quarter, driven private by strong estate net portfolio relatively was excluding equity portfolio from $XXX was from strong returns our million before income contributions delivered investments. total partnerships, of another and annualized limited benefiting very

of $X.X portfolio of The interest an unrealized gain credit an spreads, X%. credit spreads. compares at increase X.X%, in rate year also impacted and loss $XXX the by the to billion reinvestment higher and favorably With interest wider to was unrealized moved rates portfolio average wider Not rates maturity position the value from the sales yield million. approximately portfolio's surprisingly, was which end of

on realized loss equity in had Additionally, public of the quarter. to $XXX million portfolio, mark the $XXX a million, equity which portfolio markets decline net of losses in the the mark includes reflecting

as While ahead investments partnership this limited it in the to to anticipate LP Both our look equity return, XX% will and is contribute still the proven be we and the equity X% beneficial. we early, be to to diversification estate annualized quarter, second range. real has return private

capital while So capital and also we objectives. financial our remain to may and support continue have interest well volatile, our business that in will our confident high-quality actions. management goals are by diversified markets rates portfolio The we and our evidenced confidence is

approximately XXXX. From million. common repurchase X.X a securities X As April On rate of $XXX we million of for $XXX redeem April approximately XXX hybrid we share XX, million with X.XXX%. of million for March remains shares of XX, April through authorization XX, repurchase

issuance building that senior positioned now are of prudent this pre-funded annual our financial over In savings to investing $XXX yielded. deliver to redemption on have We management, results businesses positive our of goals. Combined $XX last performance with Doug. in which million. and result notes summary, we will our call the with of in after-tax have I quarter September, first will capital the the approximately turn million X.X% demonstrates net

Doug Elliot

science, achieved lines and progress our skilled sustaining the distribution quarter technology Written powered & deepen first Hartford's expand top expense results for profitable the with positioning Starting morning strong and growth. was leverage. data the footprint talent by well base the good breadth, are Commercial in product improving Casualty Thanks, our to momentum experience. I'm The are year. Beth, and the everyone. advanced of accomplishments Property the and growth product customer differentiate premium performance Lines, us pleased evidence line with across substantial underwriting last achieved strong These quarter

experienced target XXXX, during partially the exceed market Workers will acceleration was more was upside moderation you This the cost those excluding fourth dynamics with get workers initial trends quarter, of Compensation confident pricing of compensation was slightly With most in in X% point guidance X%. XXXX Lines a we're challenging to by expectations. XXXX. higher but renewal fourth middle X.X% filed negative pricing, of quarters, and January, specially. persist shared written pricing, contemplated there's from quarter throughout continuing compares declined growth subsequent to pricing, across in moderating rates from largely the our about products. with will loss in line our average and quarter global was offset year-over-year The with Commercial wages largely moderated but the Commercial Starting as we to expected. first likely

two Commercial was New last by and Small written points up premium and year. retention driven X% improved Spectrum from

steady wholesale up quarter pricing customers with XX%. strong outstanding market was X.X%, four an to growth experience, year. rated Hartford retention. line and no specialty from new our quarterly sales the business business X%. as while consistent in excellent workers underwriting compensation was Our to X.X% points increase pricing was approach, XXXX, flat. higher driving continue product rising are very top U.S. Robust of customer and the capabilities levels to digital our remains bindability reinsurance start was to of retention at from Retention also Middle essentially pricing the over excluding leading premium to global a contributed was Premium touch solid number first significant. Pricing one and embrace business our exposure just growth

our underwriting execution. to deeper growing suite be momentum, product improved pleased and with We continue

Turning to loss costs.

in and continued delivered each XX.X including best our this underlying now best along and to I straight loss trend with reflected to strong pleased Small XX.X, also environment, and combined execution full and with of quarter's our loss first improved our another I'm selection, Middle has guidance Specialties underlying underlying quarter At few since actions inline underlying And quarter quarter for since to for result overall social of performance taken quarters our is our and in achieved over In Global very a the ratio inflationary the expect takes. loss were Commercial. four pricing combined supply underwriting impressive, impact the performance, approach summary of significant ratio XXXX. guidance the decade. XX.X. sub-XX disciplined Commercial books, expected Our ratios XX.X recent achieve long-term headwinds businesses, strong of pressures yet and consistent quarter year lines, and underwriting Large and ratio with a at in puts -- chain of combined the XXXX first equally auto the reflecting acquisition. underwriting property other trends of is economic and Commercial excellent

are As maintaining and and leveraging in over Flipping profitability benefit first profitable to loss the quarter very driving acknowledging these costs cost over focus, Personal a past several while the rate product, balancing results we growth. quarter risk tune Lines book new physical Maintaining years, we the to industry the ratios effectively higher-than-expected of selectively underlying demonstrate, and primarily Auto, first were combined pleased pricing. retention due trade-off, while legacy XX.X, we're segmentation with disciplined seasonality has developing to typical Prevail. Lines headwinds. to loss Personal of damage. elevated, continue In tools the been our continued primary severity, Consequently, underwriting particularly

and inflation forward. And over XX going book we X.X%. the half impact will with been filings chain filings increase average not rate response, immune completed of in plans over across have an of These auto and We multiple months pressures. have supply our to several class were approximately past

filing loss with Prevail growth. prudent these past position in were to during taken reflect pricing with In for elevated one similarly the long-term few overall XXXX. taking execution, profitable loss XX.X% years, our is pricing weather line remain rate We're of labor to of auto ratio confident averages putting Non-cat at addition, combined In We're increases continue we'll costs recalibrate trends. continue current actions our quarter severity. book pressure we healthy. to to accident costs levels, home All high historically very favorable to frequency loss run in our year material while continues and home. in, Home, on

in Responses the are and production. business Lines Personal to we growth Turning remained while new steady rates with generated quarter. conversion expectations. Retention in line

new addition, Florida Texas in launch XX we're We're states, couple first we're In through states. and a a of and XXXX the April, available very our casualty the our continue evidence goals. across of pleased that to with enhanced business in in an quarter represents we have our managing analytics, writing. will is of start including deliver view business In mounting to-date accelerated metrics and January actively now the strategic property flow to the quality Prevail of closing, was larger new strong and critical on key

forward portfolio, are and analytics, the update Our at with Commercial success increasing XX The The seamless business marketplace. technology The operating product taking bright. contributions actions integration are with pricing continue personal Lines distribution to Prevail. hold, clip look strong business results lines, margins. in while is from grew And talent our future emerging is and clear. is to growth in exceptional drive a our our new in days. next double-digit of I and momentum our

Susan. the turn me call now to Let back

Susan Spivak

Thank you.

instructions asking minutes question. for XX about have repeat please a questions. Operator, you for the We could


[Operator Instructions] from today Our first you. question ahead. Brian, go Meredith please comes from Thank Brian UBS.

now line Your is open.

Brian Meredith

of Thank A couple questions you. here. Yeah.

current right money how getting or us actually curious, compare And rate what in new you just you're you're portfolio? turns money rates? And XX% I'm your Beth, ROE why XX% now that give kind then interest much getting First, new And how on does yield that Chris, to your given months? also, in why what that the portfolio is? yield could book the – XX of your then every XX of consistent to that rise

Beth Costello

Brian, start. I'll Sure,

were to to we the Folio as we slight Obviously to may recall money we very said you X.X% we our new for expectations yield the had the that, in XXXX. favorable decline for yield So we I were XXXX, quarter talking compared a today, to the about compares for ago when look a from average probably closer rate had so see X.X% expected where yeah, is that quarter.

expect and XXXX go we'd be today, are consistent with XXXX we we increases where then Given XXXX. into to relatively see as

Chris Swift

achieve I XX% view for we've obviously you believe Brian, as what XX% period both about achieve plays particularly you as you try will And not the in a those If the it. to could a last portfolio as should conditions how years. said, limit, my year, And and XX% meaningful, will particularly are the Yeah. time. question, get Beth to really been over heard But the longer the and lift confidence we range we'll to out on as today. is have that into we appropriate, XXXX. see talking optimism that be of

Brian Meredith

reinsurance recoveries. more far then maybe a from kind And where topic, your be on premium, Got loss? that And what the you. had like gross coming is, some then a where – of little some your potentially I guess, more as exposures my was had reinstatement second Russia-Ukraine? more are? Russia-Ukraine, Chris, there could you and you It as Doug fairly losses details Russia-Ukraine, also obviously, question seems And

Chris Swift


his So through violence have syndicate I and exposures political of that add and risk we through come the say Doug primarily would I have, book. commentary. the credit would London, will -- in that our obviously, most political

in $XX heavily have those it reinsured. We million lines. prepared And is we written premium of our net about in said as remarks,

you little So the loss and denied. of had a notices two clearly, We've we one and loss very about that only thoughtful will call – we made, insight. have we will that I think the I it And the are war exposure I is prudent give still picks evolving.

point time. all So at in IBNR just the entirety is this nearly

Intel, anything But that really that and picks now, I share a at at live this you feel with Doug, good So we including of made look about satellite that's imagery point. a used the I'd data right to in were event. else? add would properties it's all you think exposed given we lot

Doug Elliot

No, on I the located Brian, nailed We think good it, very risks you a handle countries. those – have Chris. in

well. And the we process And really in what call quarter we made we think has this feel prudent. understand our I think Beth and good for deliberate the been about I and I know. book

Brian Meredith

Great. Thank you.


next Elyse comes Wells please from go Fargo. Elyse, today Greenspan question The from ahead. you. Thank

line Your is open. now

Elyse Greenspan

Thanks. question, within noticed a Good remarks, morning. underlying My personal first I prepared us of sense you gave fall you margin in where might guide. that your lines

commercial, what given I for So within you we're things and quarter right, commercial to have how the know, your that within XX.X% on XX.X%, as do fall lines? well you about trends only loss of have balance as one within where But range sense view a quarter in. year, in together of pricing the might the come

Chris Swift

view. haven't our we changed Elyse,

to there. said, but I by don't So expect days we be it no range, view is ago. nuance XX as any think that I our than there's different was

range. that set we inside achieve have we'll believe and sights our So clearly

Elyse Greenspan

more this on on year group impacted and Okay. some guide year question And that's you enter kind the perhaps is the long-term trends, potentially be within think for I'm just this especially as we my to disability of embedded your within given how XXXX? could beyond book second thoughts business. then how into looking color get into recession disability

Chris Swift

try -- would Fed we inflation XXXX. Obviously, I case economic the lot you a of not color, come our off, question try still with Yeah. base marks, good will first to think hopefully Elyse. to a to in prudently a there's give spot. to you, I'm XXXX but activities and of recession balance and growth Yeah. happy share is

the is had XXXX this favorable just development to, I'll call we As year. this we than talked COVID remarks, disability at would seasonality. I our year with of prepared Also, year I it it, about What in relates more last trends. we from time, particularly having you think share are initial

disability claims seasonally quarter. in So the first in normal conditions higher are long-term

is of see. but anything but normal, trends through that underlying the living Now those two years still are pandemic we

X% X% disability of -- I as are here additional book feel book confident achieve, to that as very our As our we year. going still we models to our into sit margin we forward. try putting both today, obviously, life we're the during and in to pricing price said, go we achieving And we

particularly life probably to price, roughly X% X% and is going X%, the So in for up to then X% disability. side

So say, as the we quarter rising here today, a case. faster concern than into expected, our incident this not quarter was be have in that had trends, heading they sit fourth little that I but There is might would we stabilized. the we that

I I can Elyse. that's try the think you So right give now color to

Elyse Greenspan

Great. That’s the Thanks helpful. for color.


next The go please Peters from Greg, Raymond you. of Greg James. question today Thank comes ahead.

now open. Your line is

Greg Peters

Great. Good morning, everyone.

I question retention was first the So ask wanted to around employee and recruiting.

their level. in One difficult elevated markets? Hartford about employment of recruiting the carrier I'm that at their and perspective very other and underwriters mentioned And publicly retention traded call around brokers on just seeing what the had of is they were turnover curious what the is seeing

Chris Swift

I'll start then his and color, to add Doug Greg. ask Yeah. I'll

to, organizations an in it, Yeah. most over just environment field about time. call done haven't a team to said, you for right? from day I compete, we've of where you movement, extremely particularly I'll got immune joining retention to were home work we period people I That which and today. work or us anywhere. a an the just been high-quality think thank key every from obviously mean, of any to Talent extended allowing well lot businesses, elevated a So is of employees put on

an here four five they've probably of quarter. point I took range view unit appropriate bonuses elevated stabilized were in first increases. to our, We three rates the I or call the depending it to and XXXX, -- salary say function. it, turnover though, for calendar thought So in business I'll would that on I thoughtful year on point would say,

are we make So needs, feedback combat of way And sense you But leaders into them leaving their managers middle have. is hard of in and Their invested belonging And at our that advantage goals that's distributed country? to really it. would the sure tuned their -- objectives, that people. throughout our that can the career. giving think the that we're that we're we best underwriters desires, of people specifics are clear part working on their us and having say their what I cultural Doug, and career

Doug Elliot

is a across it. area Chris, would had we've past is other on hires We're some significant I days. The share, top We're for very And three working about item ranks. thing the our XX ourselves us talking the it. in leadership

it, So asset I forward. continue that talent be and good to the We've I compete us worked about at as think will for we where an The really Hartford. of has like hard are. we feel some joined I it

Greg Peters

pass, respect data it. And the your trends, about I supply that? there how not year. could you wanted Just just look as do contemplated it from your talked through think comments, make do there's but the balance come chain in see in Got you in of inflation, marketplace your now, second the perspective, sure et And if further the you you I'm your materializes? to at be that. or the I Doug, in reserving to area, And now. the the right pivot, issues, it's rhetoric has social loss to cetera. move the question, chain Lines until cost how Commercial going you approach with curious some on we granularity supply And as disruptions changes the I'm wait in

Chris Swift


then start, me just Doug. and Let I'll ask

the of year. of ease, head demand chain demand, to half second say equation the into the as tried to starting of due optimistic my side the in So is supply that we particularly shock we're commentary, I as the some to

goods through chain factors supply to the our war cost of shock, overall other impact continue China's in our Now on that view of are and manufacturing locked new obviously, down Ukraine supply and chain. sold will just from the the

So fourth we position, optimism of see beginning level is I least at those now, we could heading we initially not a right dynamics. expected. quick maybe of be work in a going Doug? quarter the there's this from to But in different the XXXX, could the are in what as that system, lot But as think through a

Doug Elliot

trends severity. adjusted item is in had we I other chain did auto only around that physical that The would damage supply add comment primarily loss or I

were different. March those slightly and We December in adjustments. expectation made our in reality So our

planning Lastly, both quarterly we I'd calls point out, in our and our very make reserving. specific

as a is into those everything books, XX machine and we results we around make we quarterly XX-day a period-by-period we So have finally March. sure can know see anticipate tuned every calls. the the this, But our in close and our is to March this built days, that risks

And year, move so we if it. -- we're December. will as we some of easing, hoping in deal yes, as But we the right back now, with more we July feel the pressure for through half

Greg Peters

you Thank the for answers. it. Got


David, from The ahead. please today Greg. go from David Thanks, ISI. next Evercore question Motemaden comes

is line now open. Your

David Motemaden

Good a Hi. for of It's morning. question Doug. related sort

if trends. Just mentioned Wondering could Doug, on in, you expectations. what had came with line by the just in and seeing a you're a question cost on more takes, you loss some your some line? net-net but bit puts elaborate

Doug Elliot

with Well, my puts water just pressure in. I'd start more a and is last one bit filled those which of comments, little was

we So adjusted supply is chain. holding. for frequency our Generally,

so And experience. and we're about calls I we're But seeing what good front. the seeing we're good with medical far, our feel about So we pretty what feel in medical watching carefully. frequency

you we've than XX quarterly So largely, calls to are through, close other looking adjustments. probably and basis. a and we all go got on know holding our lines a that say few I'd in, as we're

came quarter in as First expected.

David Motemaden

it. Got

your can coming staffing the guess, gears rule like in I thumb for year. Benefits your within the Okay. $XX million you're for claims, of extra enter And I'm I endemic we that a COVID? in that – short-term then around claims to disability a business. that, the as for sounds of $XX state wondering handling think expense we an $X there give it's or claims. for disability million switching Chris, I into of hear you it should us expenses. about more And having comments, $X extra higher Is with million guess, how every example, – million ratio short-term

Chris Swift

you Yeah. don't I have metric a that I give today. can

helped of of think pressure, unprecedented had and third felt as of far digital then process that early thousands volume. thousands into relieve the tools surge new and as thousands intake center some that the call really I and claims. in We XXXXs build is to sort we fourth late quarter did quarter beginning which claim but some the still

being look opportunity remarks, We our of next to met. I the thought. my said as than as still that, some take Hartford So we a are this we elevation did, – had at much business prepared investing for little we just objectives know as maybe expenses, faster in

of So is as And claims. part that driving will -- that. continuing what's in the digital that that's mostly I said, area in and

that the our all to X% for David, contemplated, margin year. but in – So achieving is X% still

we thought So faster growing now little a slow line a after start. is than little top

second which of cost strong down, put line pandemic equation our achieving X%, top loss you on overall together when coming as to on ROEs here severe seems capital. be mortality into particularly translates the the in a half year less So the the of to in X% trends

equation It that thought. a down we point, is longer what like. will somewhat think ratio And take – than expense just just little your little will is longer. expense we ratio come initially I a

David Motemaden

Got you capabilities, and that it. had accelerated investments the mentioned. And appreciate the investments

just was on could size And quarter? think investment – – on we how think during guess, think I about accelerated of follow-up much and maybe those so thing sort I much should we about? about if that the on Could the So there. about more your could you how comments just

Chris Swift

guide to you a bit little the Okay. for year. I full tried

that expense time, So David. here not ratio just and you, not to we're that ready that's talk we’ll I beyond but right do of right year XXXX think the and guide have about today, at the full --

David Motemaden

Okay. you. Thank


Phillips ahead. Thank today next go comes Stanley. from Michael please question you. from Morgan The Michael,

open. line now is Your

Michael Phillips

here that year you Thanks. Good top needed you just in or current taking other from I morning auto, and rate; taking is in already said Doug, half, is I’m wondering, mentioned book. think what’s of personal of there the on needed about in what half everybody. rate X.X? you're more X.X in auto half

Doug Elliot

Mike, right? our accuracy cause an state. matter, and state continuing to assess ongoing assess by loss it's rate we're So

rolling state As you program. this know, a is

has got four We've or the mentioned months. over book past three not So, now. now file our increases achieved I half as of second quarter right rolling

adjusted based expectations probably quarter. seven I've So in view quarter last for can coming got I've last we that the I got second in our the in, days. third loss quarter, you for third on cause week; the tell expectations

tools book time, real the sure active is got based we will enough and continue to make it on available rate all we've manage of So us. to in that to

Michael Phillips

Okay. quick Thanks. here. one just a And then

had drove favorable what You if talk some about development in small that? you commercial loan, can

Doug Elliot

is book XXXX prior, in continues guess comp our the may very and healthy so. to -- area. fair it The actuaries years But favorable and and accident was those development in accident and XXXX prior primarily our look I comp primarily workers release in amount year workers

Michael Phillips

said, you are just As holding they the… steady on

Doug Elliot


Michael Phillips


Doug Elliot

…workers comp.

Michael Phillips

it. Got Yeah. Thanks.


from today comes The Scott Alex, question Alex next Goldman go please from Thank you. ahead. Sachs.

Your line now is open.

Alex Scott


had is I especially. non-cat I wondering, commercial, think could out out home, just it P&C I on I side. small help one is, of to bit loss marine through called help was some in too, if weather us quantify was ratios? think, global I the take on impact just guess items in First favorable those you us there the called like a sounded the little

Chris Swift

commercial at Alex, a a up, it non-cat probably roll you When is about point. the inside level, commercial

add other good but points the non-cat, on loss, are the cancer up weather little a pressure other line, a to that good the lines news. So marine

forecasted from when we of other loss other in the year, improvement, the we coming underlying half of that of commercial, about half general, and expense. a started couple the So from points on coming

Alex Scott

then? XX-day

Chris Swift

on that. Basically right

think expectation. start to right the I good about feel we it’s the So on our year

Alex Scott

impacts for for you. and quarter then or on first disability, for hospital consider going as should you claims should one Are real that declining when progress the those come think we through there what's COVID? into you've utilizations time with about maybe environment pretty I Got lagged April. I for down in the that. more it. question guess, And sort and COVID of grouped seen that Thanks

Chris Swift

you're COVID, Yes. know, I And long in you're settings. about a long more referring long-term amount the rate cover pricing we've dictating obviously, from lagged. seeing talked make And the the in talking mean assumption that get -- disability, coming definition I to modest COVID, significantly of Alex, will COVID, is expectations don't I if of to but we prior of are it about of I more that is short-term which long that book in are changing long-term then, to some the that. a meet some claims disability. think

then yes, COVID side best we're to from is it from an trying and So, real, also and the manage a can claims we side. long economic

Alex Scott

it. Got

you. Okay. Thank


please question today from Credit next you. Suisse. Thank comes Kligerman Andrew The from Andrew, ahead. go

open. Your line is now

Andrew Kligerman

take achieved in want more XX% in look Do on XX% personal you is get the that you understand in to the time you personal going earlier your while about of on that for X.X% your you Doug, underlying, stay kind but a and out. as a XX% of the premium to just before little that I'm real to can write need that on time, a I you rates. its half auto filing That's just be particularly, it quarter foot next the lines. of the few X.X% the pedal? kind Again, off questions. having I real interested, line morning. to rate the increase granular book quarter. with about some talked the good in lines, Hey, of

Doug Elliot

with Andrew, rate achieved need I would first in our quarter. the that rate aligned suggest the is more

what is so to of is days are about quarter. are to I and X% is X%. X%, the X.X% we But toward in range why adequate to to filings in our talk loss back. X.X% going so my So No, X% rate second expect step costs -- -- quarter what we’re that’s to with in script. in excess cover XX the be be third the we’ll where now, more shared headed I I the X% not which

Andrew Kligerman

in a give color How work on little means assume then going that slight comp, line. Very X% decrease up? particular cost could then with or to mentioned it. that, I'm a And helpful. in less. you are lost pricing. Doug, much regards to Got with that the you they And

Doug Elliot

three gone a a comp through the in is last line the worker’s pandemic. that’s years lot with Our

headwind we are As we way There space. another filings no anticipate focused into the look today, for question on we it year this at XXXX. work is our and in filing that as round

in now, there right we are we loss right? still still way effective marketplace with us be our will as can’t filed we're essentially argue we working selectively negative Very way to through. at that Are as on that, before, across then we to-date, mentioned medical And you then look to in has underwrite increased signs mid-single-digit a payroll. but what bit things have our as headwinds role the pleased front done sitting our I from wages trends, a know, and and trend I of relative a Frequently, aren’t our to loss in little would we’re work increased through. that force little you we’ve rates our bit So about long-term think ratio. is I've I of in been range positive to for add that. less be largely wages, wages as noted And that we seeing than before, check. getting we're benefit so As

So of audit. to work done, on continued a so be positive audit lot front, progress the premium

comp. there yes, So takes and workers' are in puts some

our as at manage performance over come way the next quarter and headwinds our was the think in us I they outstanding, we'll months. to XX the

Andrew Kligerman

pandemic-related that. a exceeding quick X beneath X.X% for And Group. there expectation? any core your that's little that non-COVID? one pressures is from X, in margin, just could on non-COVID Are mortality mortality seeing to being you at one Thanks any excluding sneak a if Great. there I standpoint

Chris Swift

X, will year. we to point, Andrew, X that achieve first this

question, said we that. quarter in bit remarks there first is as able in a in and to LCD seasonality our generally our one picks be the we of see little the addressed prepared So normalized

that's X X. number are a book and that events, AD&D million random also So -- million on motor elevated there's other our impacting There's vehicle of say to occurring. we're had pre-tax accidents. basis, $XX claims accidents I particularly are $XX that actions just think unfortunately, we in a would the probably waiver book of I mortality that though

X still X the in confident So those but most number put two for I on X that probably full we’re X the would range say to things year. pressure the

Andrew Kligerman

Great. lot. Thanks a


question next please comes Derek, The from go KBW. ahead. from you. Thank today Derek Han

is line now open. Your

Derek Han

kind Global within it segment any Thanks. Obviously, The there Is of on market anything commercial bit. the segments? Good the question quarter. within little new slowed just the curious a on business was in I'm there had in premiums I growth. those if the was Specialty meaningful premium cross-sell strong morning. impact middle that? a

Chris Swift

strong would as Commercial. both Specialty and the reasonably quarter Global I Large for characterize Middle,

thoughtful very strategy. and Although And strong a and workers' our middle being comp still quarter. product and we're about aligned large, flat

So about and bottom really to performance I the year. at our the top and across look markets all line good feel of start our

Derek Han

second That's Got goes Doug. it. helpful. -- And to probably then my question goes

well. that frequency auto holding pretty said personal You up is

mix the if know but underlying at peers, factors seeing look you just of that If kind that, your you're distracted is kind of impact. seeing I driving? curious any in customer driving any unique are you increases from your of

Doug Elliot

We and statistics have read we've statistics.

concur our own numbers that, So statistics. drive all can't our we its -- with I those would book but to suggest on you that

the our is in of way suggest jump to going kind enough otherwise. So that robust or say I'm sit data to and here not telematics

day, We watching, the our loss time that appropriate speed, and quarter. think to all costs, are factors the are provisions I in important and we're we driving, made we're watching watching

Derek Han

Thank Okay. you.


Tracy comes next Thank you. Benguigui Barclays. from from [Operator Instructions] today Please The ahead. go question

Your open. is line now

Tracy Benguigui

of I'm of growth rate? and you premium, disclosed component of you audit it going or acts type the want My GDP growth. like exposure premium. small but with a commercial mention first think recognize morning. And I to a sense commercial curious from you this, policies inflation just did overall understand of to will that just for contribution better I'm of good is more your question exposure linkage ports there's I also general to any on and segment, exposure type Good growth. be contribution where to And the get if lead other

Chris Swift

auto me workers' is our book strong that large in very for let our about first half premium business. In premium so suggest small and would commercial, question. audit those I both tackle books -- the growth from of compensation of So mid and coming of growth

workers' you know, specialty. compensation have in global As we no

to minus, X that Tracy, coming workers' our quoted the was in books that the in which or of impacted that, commercial comp, pricing my the by exposure. X, point Relative plus are I those script, ex So X.X are from quarter, all

freight. you anything that to would of performance, rest be the add? underlying want So Doug,

Tracy Benguigui

Okay. in. going Well, chime was I'm Doug to sure


sense? would a second the So turnover asset question trying XX% portfolio think describe to is, my you you'll sense new money just X.X-year makes you of I'm something So your how start do get annual yields. at when rate? duration, better in looking higher just like your earning

Beth Costello

Yes, Tracy, in XX% to the XX% probably it's range.

it reasonable look at estimate there across quoting what year. a we the is So you're . as

Tracy Benguigui

pro extended duration noticed it And you you just five touch did I like just years back staying your your last was of September a shortening Cool. assets, But that on slightly. looks we it suddenly and were this Okay. it actually quarter. XXXX. in quarter, that,

about So duration should ticking here? think X.X-year the we from

Beth Costello

had we duration Yes. the shortened. we seen as of the about I mean last portfolio talked quarter,

make of today, to we that a liabilities. the our bit response a And kind definitely look so And we're Some I surplus we to did also, rise. looked looking liabilities of quarter-to-quarter. of assets, kind and wouldn't we at our it's think, in as rates, that significant view move liabilities was interest bit you we on appropriate can move. of anticipation it need our when is point I any at, any consistently shorten to we But if anticipating a at again, changes, Where changes are but our to as forth. determine

Tracy Benguigui

Thanks. Great.


waiting Thank you. questions at additional There are this time. no

go to over for ahead. Spivak the like Susan conference I'd remarks. to pass So Please closing

Susan Spivak

much Thank joining us very for you today.

any please follow-up reach always, As out questions. with


Financial for The Thank Results Webcast. concludes participation. First you your Hartford XXXX That Quarter

may disconnect lines. You now your