Q2 snap: excellent underwriting result
HIG delivered an 8% operating EPS beat despite higher catastrophes thanks to very good underwriting and higher reserve releases than anticipated. We calculate a normalised EPS beat of 4%. Net written premiums were a little lighter than our forecast, particularly in Personal, but the underlying combined ratio of 90.3% was down 130bp YoY, which was a very good result. Encouragingly, the underlying combined ratio in Personal was 90.4%, below the 2018 guidance range of 90.5-92.5% with Personal Auto down 260bp to 96.5%. Although there was no buyback in Q2, BVPS (ex AOCI) growth of 4% in the quarter was impressive, as was the core earnings ROE of 12.1%.Hartford Financial Services Group is a holding company. Through its subsidiaries, the company provides property and casualty insurance, group benefits insurance and services, and mutual funds and exchange-traded products. The company has five segments: Commercial Lines, which provides automobile, property, general liability, and marine coverages; Personal Lines, which provides automobile and homeowners coverages; Property and Casualty Other Operations, which provides group life, group disability, and other products; and Hartford Funds, which provides mutual fund, exchange-traded products, and Talcott Resolution life and annuity separate accounts.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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