The **Net Realized Gains** turned positive in Q1 2024 because **lower net losses on sales of fixed maturities**, an **appreciation in value of fixed maturities** (due to changes in credit spreads), and **gains from equity securities performance** collectively reversed the earlier losses. This shift led from a net loss of **$7 million** in Q1 2023 to a net gain of **$28 million** in Q1 2024.  **[0000874766-24-000072_ex991earningsnewsrelease33.htm:8]** **[0000874766-24-000072_ex992ifs3312024.htm:24]** **[0000874766-24-000073_hig-20240331.htm:71]** 

Why did Net Realized Gains turn positive in Q1 2024?

The significant increase in **Net Income** in **FY 2023** was driven by several factors. The company experienced a **higher underwriting gain** fueled by strong premium growth in Commercial Lines and improvements in the Group Benefits loss ratio.  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:1]** **[0000874766-24-000016_hig-20231231.htm:111]**  In addition, **lower net realized losses** and **higher net investment income**—the latter benefiting from improved yields on the fixed income portfolio—also contributed to the increase.  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:1]** **[0000874766-24-000016_hig-20231231.htm:111]**  Moreover, an **improvement in the Group Benefits loss ratio** and a **reduction in current accident year catastrophe losses** further supported the enhanced net income.  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:1]** **[0000874766-24-000016_hig-20231231.htm:111]** 

What drove the significant increase in Net Income in FY 2023?

In Q4 2023, the **rise in net income** was driven by multiple factors. **Higher Property & Casualty underwriting gains** played a key role, fueled by **strong premium growth** in both Commercial and Personal Lines, while **lower current accident year catastrophe losses** further bolstered earnings. Additionally, an **improved Group Benefits loss ratio** (down to **69.9%**) contributed to better performance, complemented by **higher net investment income** from favorable fixed income yields. The impact of **favorable prior year development (PYD)** adjustments and effective **expense management**—including savings from Hartford Next initiatives—also helped lift the net income figures.  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:1]** **[0000874766-24-000007_ex991earningsnewsrelease12.htm:8]** **[0000874766-24-000007_ex991earningsnewsrelease12.htm:5]** 

What factors contributed to the rise in Net Income in Q4 2023?

In Q3 2024, **HIG's** total revenue growth was driven by **strong growth in earned premiums** (with both Commercial and Personal Lines showing double-digit increases), **higher net investment income** from reinvesting at superior rates with increased invested assets, **improved fee income** owing to higher daily average assets under management, and **significantly lower net realized losses** compared to the prior year.  **[0000874766-24-000121_ex992ifs9302024.htm:4]** **[0000874766-24-000121_ex992ifs9302024.htm:5]** **[0000874766-24-000121_ex991earningsnewsrelease93.htm:9]** **[0000874766-24-000121_ex991earningsnewsrelease93.htm:1]** **[0000874766-24-000121_ex991earningsnewsrelease93.htm:8]** 

What fueled the increase in Total Revenues in Q3 2024?

41b98175f93f77ceb7ab1351014e3bf6814b512c16be933661e3ab05a3473f5e

The boost in **Operating Cash Flow in Q1 2024** was primarily driven by several factors. **Higher net income** increased from **$535 million in Q1 2023** to **$753 million in Q1 2024**, significantly adding to cash flow. There was also an **increase in insurance liabilities**, rising from **$761 million in Q1 2023** to **$870 million in Q1 2024**. Additionally, the **net change in accrued and deferred income taxes** grew from **$90 million** to **$102 million**, and the **decrease in reinsurance recoverables** was smaller in Q1 2024 (**$11 million**) compared to **$29 million** in Q1 2023, slightly offsetting the cash flow increase.  **[0000874766-24-000073_hig-20240331.htm:10]** 

What factors helped boost Operating Cash Flow in Q1 2024?

The dramatic swing in Operating Cash Flow in Q2 2024 was primarily driven by **higher net income**, a substantial **increase in insurance liabilities**, and **favorable changes in other operating activities**, which together boosted the cash flow compared to Q2 2023.  **[0000874766-24-000108_hig-20240630.htm:10]** 

Why did Operating Cash Flow swing dramatically in Q2 2024?

The robust increase in Q4 2023 operating cash flow was primarily driven by a significant **increase in P&C and Group Benefits premiums received**, which boosted inflows. This was partly offset by higher **P&C loss and loss adjustment expenses**, including a **$787 million BSA payment**, as well as increased **commissions and staffing costs** that drove up operating expenses overall.  **[0000874766-24-000016_hig-20231231.htm:153]** 

What drove the robust increase in Operating Cash Flow in Q4 2023?

The available documents do not provide specific information regarding the factors that contributed to the **improvement in Free Cash Flow** in Q1 2024.   

What contributed to the improvement in Free Cash Flow in Q1 2024?

The documents do not provide any specific explanation regarding the factors that led to the turnaround to **positive Free Cash Flow** in Q2 2024.  **[0000874766-24-000108_hig-20240630.htm:10]** 

What led to the turnaround to positive Free Cash Flow in Q2 2024?

ef10242f72b14bc278ba4085bb4fefa9279afa7d5c74b1118853b56b614974ba

The sharp increase in cash in Q1 2024 was driven primarily by **robust operating cash flow**. Operating activities generated **$1,097 million** in cash compared to **$871 million** in Q1 2023, largely due to higher net income (**$753 million** vs. **$535 million**) and increased insurance liabilities (**$870 million** vs. **$761 million**). This strong performance in operating activities more than offset the cash outflows from investing and financing activities, contributing to the overall net increase of **$133 million** in cash and restricted cash in Q1 2024.  **[0000874766-24-000073_hig-20240331.htm:10]** 

What drove the sharp increase in Cash in Q1 2024?

The rise in Total Assets in Q3 2024 was driven by **growth in investments**, **higher premiums receivable**, and an **increase in other assets**. Investments saw notable increases, with **fixed maturities, AFS, at fair value** rising due to net additions of corporate bonds, high-quality RMBS, and CLOs, and **mortgage loans** also increasing. Additionally, premiums receivable grew, reflecting higher written premiums, while other assets expanded, all collectively contributing to the overall asset growth.  **[0000874766-24-000122_hig-20240930.htm:81]** **[0000874766-24-000122_hig-20240930.htm:8]** 

What factors contributed to the rise in Total Assets in Q3 2024?

The dramatic drop in **Additional Paid-in Capital** in Q4 2023 was mainly driven by a **significant retirement of treasury stock**, which reduced capital by **$1,219 million**. Additionally, there was a **reduction of $153 million** due to the issuance of shares under incentive and stock compensation plans. These reductions were only partially offset by a **$125 million increase** in Additional Paid-in Capital from stock-based compensation expense.  **[0000874766-24-000016_hig-20231231.htm:170]** 

Why did Additional Paid-in Capital drop so dramatically in Q4 2023?

77a8f1c6374edff1a5ddf70fe82fd4e77dbc35a418bfc8df989d6e8270786ea5

Net Investment Income (USD, millions)

Net Realized Gains (Losses) (USD, millions)

Other Revenues (USD, millions)

Total Revenues (USD, millions)

Amortization of Deferred Policy Acquisition Costs (DAC) (USD, millions)

Amortization of Other Intangible Assets (USD, millions)

Income Tax Expense (USD, millions)

Net Income (USD, millions)

e15b1f94d617594cb28120c643c4a841676fbbf04638906749aad396cfe6d079

2d5553bf796141ed121130d3cbf3e2ddd237e0fa1d9cecf35568003244959cb4

72894fa61b68c490b8bcd0c9744e35037d3e87ce808a9edcec93f7d499f87959

a6a242eeba187f11c70ba93d98c27ce92e03da75313e64f7d3d06e54e8f47e2f

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

413d2baf1d80761f8c190bb39a60fbf9deb2ef54fe69ac78ba813b91d20a0699

2a25b83cea22a6a133efb803835477ef9b87257bf916ccfc8985bee4423576be

a165802e249e32f8b5650f11bc351e91d31904a71d8df78260f7e48fabe023bc

United States of America

Japan

Other

Total Revenue

413cdf549b91cb8d73a9a07244cbb8c307ee80be4d2e45a2b18ead163eb3d40a

03f38f54e71772b5229d39e26cf914055ab2afb3ab4bc8123f645c12be814784

HARTFORD INSURANCE GROUP (HIG)

Financials