The Hartford's commercial premiums rose in the second quarter, but underwriting margins narrowed as lower reserve releases and higher catastrophe losses offset growth.
Business Insurance written premiums increased 5% to $4.02 billion in the three months ended June 30, 2026. Its combined ratio rose to 91.4 from 87.0 a year earlier, while the underlying combined ratio increased to 89.3 from 88.0.
A combined ratio below 100 means the business remained profitable on underwriting, but the year-on-year increase shows that its margin narrowed.
The results came as pricing softened across parts of the US commercial insurance market. The Council of Insurance Agents & Brokers said average premiums across all account sizes fell 1.2% in the first quarter of 2026, the first overall decline since the third quarter of 2017. Large-account premiums fell 2.7% and medium-account premiums declined 1.9%. Small accounts were the only category to record an increase, at 1.1%.
A similar split was visible in Chubb's second-quarter results. North American commercial premiums declined 2.3%, as major-account and specialty premiums fell 9% following underwriting action on property. Middle-market and small-commercial premiums grew 8.9%.
At The Hartford, small business premiums rose 7% and its combined ratio improved to 85.9. Middle & large business recorded a combined ratio of 101.9, up from 86.6, meaning claims and expenses exceeded premiums during the quarter. The deterioration was concentrated in large accounts specifically, consistent with the broader market pattern of softening pricing and increased competition at the top end of commercial lines - the same dynamic reflected in Chubb's 9% decline in major-account and specialty premiums.
Global specialty's combined ratio also rose to 89.5 from 85.9.
Business insurance's underwriting gain fell 29% to $316 million despite the premium growth. Favorable development from earlier accident years dropped to $52 million from $146 million, while catastrophe losses rose to $129 million, mainly from tornado, wind and hail events.
At group level, net income available to common shareholders rose 31% to $1.29 billion. Core earnings, which exclude items such as realized investment gains and discontinued operations, increased only 1% to $945 million.
Reported profit included a $251 million tax benefit linked to the planned sale of Hartford Funds. Net investment income rose 22% to $800 million, helped by higher income from alternative investments.
Personal Insurance showed the opposite pattern. Written premiums fell 7% to $915 million, but its combined ratio improved to 90.1 from 94.1. Renewal prices increased 5.5% in motor and 10.4% in homeowners, as earned price increases continued to outpace claims-cost trends. The results indicate that underwriting margins improved even as competition limited new-business growth.
Employee benefits premiums rose 5% to $1.68 billion, but core earnings fell 15% to $139 million. Its group disability loss ratio increased by 6.3 percentage points to 74.8% because of higher claims and weaker recoveries.
The Hartford expects the sale of Hartford Funds to Wellington Management to close in the first quarter of 2027, subject to regulatory and fund approvals. The transaction has an estimated net present value of $1.9 billion. The Hartford is due to receive $300 million in cash at closing, followed by further payments over seven years based on the combined business's available after-tax cash generation.
The insurer returned $615 million to shareholders during the quarter and authorized a new $4.2 billion share repurchase program running from August 1, 2026, to the end of 2028.
