The Hartford Financial Services Group, Inc. (HIG): Business Model Canvas [Dec-2025 Updated]

You're looking to see exactly how The Hartford Financial Services Group, Inc. is posting such strong 2025 results, and honestly, it boils down to a disciplined pivot. We've broken down their Business Model Canvas, and the story is clear: a laser focus on commercial lines, evidenced by that 89.4 underlying combined ratio in Q3 2025, powered by proprietary AI underwriting tools. This strategy is clearly working, driving a trailing 12-month core earnings ROE of 18.4% while managing a massive book of business that generated about $27.69 Billion USD in trailing 12-month revenue. Dive below to see the nine building blocks-from their key partnerships with agents to how they're turning earned premiums into shareholder value.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Key Partnerships

You're looking at how The Hartford Financial Services Group, Inc. builds its value by leaning heavily on external relationships to distribute, underwrite, and enhance its offerings. Honestly, in this business, who you partner with is almost as important as the policies you write.

The distribution network remains foundational. The Hartford continues to rely on its deep network of independent retail agents and brokers to reach customers, especially in the commercial space. This channel is critical for servicing their substantial small business book, which includes over 1.3MM+ Small Business Customers as of early 2025. Furthermore, The Hartford is recognized as the #1 Digital Small Business Insurer by Keynova based on a 2025 study, showing how technology integration with these partners is paying off.

The move into digital enablement through strategic technology partners is a major theme. You see this clearly with their expanded relationship with Workday, Inc. The Hartford became an inaugural Workday Wellness partner, building on their existing role as an Innovation Partner. They leverage Workday's AI-powered solutions, like Illuminate and Workday Peakon Employee Voice, to offer better wellness experiences. This collaboration, built on over 12+ years of integration experience with Workday, aims to cut implementation times from months down to weeks.

Similarly, the partnership with Nayya focuses on digitizing the employee benefits enrollment experience. The Hartford is deploying Nayya's AI-driven benefits engagement platform to provide personalized recommendations, which is a direct response to findings in The Hartford's own 2025 Future of Benefits survey. This investment in HR technology is designed to boost benefits utilization and, consequently, employee retention.

To manage the inherent volatility of property and casualty insurance, reinsurance partners are non-negotiable. The Hartford actively manages its catastrophic risk exposure through these relationships. For instance, in the third quarter of 2025, their Current Accident Year (CAY) catastrophe losses were reported at $70 million, before tax, a significant drop from $247 million in Q3 2024. This risk mitigation is supported by securing capacity through capital markets, such as a catastrophe bond that secured another $300 million layer. Overall, as of January 1st, The Hartford has protection up to a gross loss event of $1.4 billion. Their aggregate catastrophe reinsurance treaty covers $200 million of losses above a retention of $750 million.

Here's a quick look at how these key relationships map to the business segments:

The strength of these partnerships directly impacts underwriting profitability. For example, the Business Insurance segment posted written premiums of $3.6 billion in Q3 2025, with an improved combined ratio of 88.8. The Personal Insurance segment saw written premiums edge up to $987 million in Q3 2025, achieving a combined ratio of 88.7. These results contribute to the overall record performance, with The Hartford reporting record Q3 2025 net income available to common stockholders of $1.1 billion.

While the focus is heavily on digital and employee benefits tech, the traditional wholesale channel remains important for specialized risks. The Hartford supports this through its Midsize, Large & Specialty offerings, which include specialized underwriting for coverages that require deep expertise.

• Wholesale agents facilitate placement for Global Specialty and Excess & Surplus (E&S) lines.
• The Hartford provides superior service to inspire loyalty among these producers.

Finance: reconcile Q3 2025 reinsurance recovery against gross written premium by Monday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Key Activities

You're looking at the core engine room of The Hartford Financial Services Group, Inc. (HIG) as of late 2025, focusing strictly on the numbers that drive the business.

Disciplined underwriting and pricing across P&C segments

The P&C operations are clearly the volume driver, with Net Premiums Earned hitting $6.09 billion in the third quarter of 2025. The overall Property & Casualty (P&C) Combined Ratio for Q3 2025 was 87.9%, beating analyst estimates of 89.7%. This discipline shows up differently across the main lines of business.

Business Insurance saw written premiums grow by 9% in Q3 2025. Within that, Small Business grew written premiums by 11%, and Middle & Large business grew by 10%. The underlying combined ratio for Business Insurance settled at 89.4 in Q3 2025.

Personal Insurance delivered a Q3 2025 combined ratio of 88.7. Pricing actions were substantial:

• Auto written pricing increases: 11.3%
• Homeowners written pricing increases: 12.6%
• Homeowners underlying combined ratio: 74.4

Catastrophe losses for the P&C Current Accident Year (CAY) in Q3 2025 were $70 million, before tax, a significant drop from $247 million in Q3 2024. Also helping the bottom line was Prior Year Development (PYD) within core earnings of $52 million, before tax, for Q3 2025.

Prudent investment management of a large asset portfolio

The investment portfolio is a major contributor to earnings, with Net Investment Income reaching $759 million, before tax, in Q3 2025, a $100 million increase year-over-year. The total annualized portfolio yield, excluding Limited Partnerships (LPs), was 4.6% before tax.

Alternative investments performed well:

The portfolio maintains an A+ overall average credit rating. As of Q1 2025, the asset allocation included:

• Corporate bonds: 36%
• Securitized products: 27%

The company returned $547 million to stockholders in Q3 2025, including $400 million in share repurchases. The quarterly common dividend per share was increased by 15% to $0.60.

Developing and integrating AI-driven underwriting and claims tools

The Hartford is actively focused on technology integration, with the CEO stating the company will lead AI implementation for the industry. This focus is cited as a power source behind the Q3 2025 results.

Key technology-related metrics include:

• Small business digital/AI capabilities (ENS binding) growth: 47%
• Technology costs contributed to an increase in the Employee Benefits expense ratio by 1.4 points in Q2 2025
• The company is executing a seven-year cloud migration initiative
• Guidewire is the primary vendor for modernized platforms across all business lines

Managing and processing a high volume of insurance claims

Effective claims management is reflected in the segment results and loss metrics. Employee Benefits delivered a core earnings margin of 8.3% in Q3 2025.

The P&C segment's ability to manage losses is evident in the CAY catastrophe losses for Q3 2025 being $70 million, before tax. The underlying loss and loss adjustment expense ratio for Personal Insurance improved by 7.5 points in Q2 2025 to 62.8, partly due to lower CATs and favorable PYD.

Distributing mutual funds through the Hartford Funds segment

The Hartford Funds segment reported core earnings of $44 million in Q1 2025, marking a 7% increase from Q1 2024. Total Assets Under Management (AUM) stood at $146 billion as of September 30, 2025.

Asset breakdown and activity:

The ETF business reached $5.3 billion in AUM as of October 31, 2024.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Key Resources

You're looking at the core assets that make The Hartford Financial Services Group, Inc. run. These aren't just line items; they are the durable advantages that support their underwriting and investment strategies.

The investment portfolio is a major engine, generating significant income. For example, the second quarter of 2025 saw net investment income of $664 million, which was an increase from $602 million in the second quarter of 2024, driven by a higher level of invested assets and reinvesting at higher interest rates. This portfolio is large and diversified, which helps manage risk across the enterprise. Also, in the first quarter of 2025, the company repurchased 3.5 million shares for $400 million as part of its capital management strategy. The trailing twelve month core earnings Return on Equity (ROE) as of the second quarter of 2025 stood at 17.0 percent.

The brand itself is a resource, built over more than two centuries. The Hartford's legacy dates back to 1810, giving it deep roots in the American insurance landscape. This history supports its current scale, which includes approximately 19,100 employees and serving over 1.3 million small business customers as of early 2025. The company sells its products primarily through its extensive network of independent agents and brokers.

Technology is now a critical, proprietary resource. The Hartford is actively deploying data science and AI. For instance, a pilot program for its Navigators brand used a generative AI solution to process about 100,000 new business submission emails, resulting in an average 20 minutes improvement in processing time per case. The Chief Information Officer noted that the company's foundation includes several hundred artificial intelligence models in production, enabling greater agility and faster decision-making.

The distribution strength comes from its relationships. The Hartford relies heavily on its extensive network of independent agents and brokers to reach customers, especially in the small and middle market segments. This network is supported by technology that allows 75% of quotes to be ready to issue with no underwriting approval.

Financial stability is a key assurance for policyholders and partners. The Hartford Insurance Group maintains highly rated financial strength. Here's a snapshot of the ratings affirmed by A.M. Best, reflecting their balance sheet strength, which is assessed as the strongest, and adequate operating performance.

This strong foundation allows for strategic investments and consistent execution. The company's key operational strengths supporting these resources include:

• Maintaining a combined ratio of 87% in Business Insurance for Q2 2025.
• Achieving a Personal Insurance combined ratio of 94.1% in Q2 2025.
• Reporting 8% growth in Property & Casualty written premium in Q2 2025.
• Expecting to surpass $6 billion in annual written premium for 2025.

Finance: draft 13-week cash view by Friday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Value Propositions

You're looking at how The Hartford Financial Services Group, Inc. delivers distinct value to its customers as of late 2025. It's about proving superior execution in underwriting and maintaining rock-solid financial footing, so you can trust them with your biggest risks.

Industry-leading underwriting profitability is a core promise, especially in the Business Insurance segment. This isn't just talk; the numbers back it up with disciplined pricing and risk selection. For the third quarter of 2025, the Business Insurance underlying combined ratio-that's losses and expenses relative to premiums earned-came in at a tight $\mathbf{89.4}$. To give you some context on how that compares across the P&C lines for that quarter, here's a quick look:

This focus on underwriting excellence directly supports the company's financial stability. You see this resilience reflected in the key profitability metric: the trailing 12-month core earnings Return on Equity (ROE) stood at an impressive $\mathbf{18.4\%}$ as of the end of Q3 2025. That's a strong return generated from the core operations. For comparison, the net income ROE for the same trailing twelve-month period was $\mathbf{20.3\%}$.

The Hartford offers comprehensive commercial coverage, meaning you can consolidate multiple complex needs with one carrier. They cover the big three for businesses of all sizes, from small to large enterprises. This includes:

• Workers' compensation insurance, with cost-saving services and tools like XactPAY for billing audits.
• Commercial Property, with tailored plans for complex property risks.
• General Liability, with an expanded appetite to solve for even catastrophic exposures.
• Commercial Auto, offering one of the widest ranges of auto products.

For specialized sectors like Financial Services, The Hartford provides tailored professional liability protection, including Directors, Officers and Entity (D&O) coverage, Errors and Omissions (E&O), and Fiduciary coverage, with limits up to $\mathbf{\$25}$ million via Umbrella and excess liability.

In the Employee Benefits space, The Hartford is using technology to make a historically painful process easier. They are focused on simplified, personalized employee benefits enrollment via technology. For instance, in Q2 2025, they highlighted a new partnership with Nayya to bring AI-powered personalization to benefits enrollment, integrating directly with leading HR platforms. This focus on user experience helps drive solid segment performance; the Employee Benefits core earnings margin for Q3 2025 was $\mathbf{8.3\%}$.

Finally, the value proposition extends to investment management through Hartford Funds, offering diversified investment products. As of September 30, 2025, Hartford Funds managed $\mathbf{\$146}$ billion in assets, comprising more than $\mathbf{60}$ mutual funds and ETFs. They partner with major institutional investment firms like Wellington Management and Schroders to deliver active strategies. The performance shows this diversification is working; as of 9/30/25, $\mathbf{13}$ out of $\mathbf{22}$ products with a 1-year history outperformed their respective Morningstar category averages.

Finance: draft 13-week cash view by Friday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Customer Relationships

You're looking at how The Hartford Financial Services Group, Inc. keeps its customers-from independent agents to large corporations-engaged and profitable. It's a mix of old-school relationship building and new-school digital efficiency.

Dedicated agent/broker support to deepen distribution relationships

The Hartford Financial Services Group, Inc. relies heavily on its network of Producers, which includes insurance agents and brokers. Compensation structures are designed to encourage them to place profitable business and service policyholders. This support system involves several payment types:

• Base Commission, a fixed percentage of premium or fixed amount per policy.
• Contingent Commission, based on meeting production, growth, or profitability objectives over a preceding period.
• Supplemental Commission, offered in addition to or in lieu of Contingent Commission for certain Producers.

The focus on distribution partner efficiency is clearly driving results; for instance, in the third quarter of 2025, written premium growth in the overall Business Insurance segment was 9%. The company continues to invest to enhance the broker and agent experience, which helps drive submissions.

High-touch, consultative service for large commercial accounts

For Middle & Large business clients, the relationship is more consultative, requiring deep underwriting expertise. This segment showed strong top-line performance, with written premium increasing 10% in the third quarter of 2025. The focus here is balancing growth with strong underwriting discipline, as seen in the segment's underlying combined ratios.

Here's a look at how the performance metrics for the commercial segments stacked up in recent quarters:

The overall Business Insurance segment, which includes these large accounts, saw its written premium expected to exceed $6 billion in 2025, representing 10% growth over the prior year.

Digital self-service tools for policy management and claims filing

The Hartford Financial Services Group, Inc. is actively investing in digital capabilities, particularly focusing on AI implementation in claims, underwriting, and operations. Agents and brokers use the Electronic Business Center (EBC) Agent Portal for transparency and transaction processing. This portal gives them access to tools for:

• Policy management.
• Billing and invoices review.
• Service requests and endorsements processing.
• Access to claims information reporting.

These digital enhancements aim to decrease turnaround times and increase accuracy for the distribution partners who serve the end customers.

Personalized, data-driven wellness experiences for group benefits customers

In the Employee Benefits space, The Hartford Financial Services Group, Inc. provides a suite of programs, including access to the My Wellness at Work platform, where customers can register to earn well-being credits toward health plan contributions. The segment's profitability reflects its performance in this competitive area, with a core earnings margin of 7.6% reported in the first quarter of 2025, improving to 9.2% in the second quarter of 2025. Furthermore, external research indicates that benefits are a major factor in employment decisions; 82% of U.S. workers state benefits are a key consideration when searching for a new job.

Finance: draft 13-week cash view by Friday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Channels

You're looking at how The Hartford Financial Services Group, Inc. gets its products to customers, which is quite segmented across its core businesses. For the Property & Casualty (P&C) side, the distribution network is the backbone, especially for the largest segment, Business Insurance.

Independent retail agents and brokers (primary channel for P&C)

This is the main route for both Business Insurance and Personal Insurance. Business Insurance, which reported written premiums of $3.7 billion in Q1 2025, relies heavily on this network to reach small businesses, middle market companies, and national accounts. Personal Insurance, which saw written premiums grow by 7% in Q2 2025 to $980 million, also uses agents, notably for its new Prevail offering introduced in Q2 2025 to the agency channel. Anyway, the overall P&C business saw written premiums rise by 7% in the third quarter of 2025. Still, the specific split of premiums flowing only through independent retail agents versus other methods isn't explicitly broken out in the latest filings.

• Business Insurance relies on retail agents and brokers for distribution.
• Personal Insurance includes a special program for members of AARP.
• Renewal written pricing in Personal Insurance auto was 14% in Q2 2025.
• Homeowners renewal written pricing was 12.7% in Q2 2025.

Wholesale agents and reinsurance brokers for specialty lines

The Global Specialty business, part of Business Insurance, specifically uses wholesale agents and global/specialty insurance and reinsurance brokers. This channel supports customized products. Global Specialty posted record gross written premiums of $1.3 billion in Q2 2025, with an underlying combined ratio of 84.8 for that quarter. The Excess & Surplus (E&S) binding premium within this area saw a significant 35% increase, showing strong utilization of the wholesale market for specialized risk transfer.

Direct digital platforms for certain personal and small business products

The Hartford Financial Services Group, Inc. does use direct digital platforms, though the data on premium volume flowing exclusively through these channels remains less granular than the agent channel data. The company is advancing its underwriting tools, noting that 75% of all quotes across admitted lines are bound within minutes using its AI-powered platform, which supports both agent efficiency and potentially direct customer interaction points. The Personal Insurance segment, which serves individuals, saw its Homeowners written premium grow by 17% in Q2 2025.

Financial advisors and intermediaries for Hartford Funds products

Hartford Funds distributes its investment products, including mutual funds via Hartford Funds Distributors, LLC (HFD), and ETFs via ALPS Distributors, Inc. (ALPS). This distribution heavily involves financial advisors and intermediaries. Hartford Funds contributed 4% of The Hartford Financial Services Group, Inc.'s total revenue in Q1 2025. As of September 30, 2025, the investment advisory business had approximately $145.0 billion in discretionary and non-discretionary assets under management (AUM), up from the reported $142.4 billion as of September 30, 2024. The ETF business surpassed $5 billion in AUM as of October 31, 2024, reaching $5.3 billion.

Here's a quick look at the financial scale of the segments that rely on these channels as of mid-2025 reports:

The P&C side shows strong top-line momentum, with Business Insurance earning premiums up 10% in Q2 2025, and Personal Insurance seeing its underlying combined ratio improve to 88.0 in Q2 2025, showing the channel strategy is supporting underwriting discipline. Finance: draft 13-week cash view by Friday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Customer Segments

You're looking at the core groups The Hartford Financial Services Group, Inc. serves, which directly translate to their financial performance. Based on the latest figures available through the third quarter of 2025, here's how the customer base breaks down.

The Hartford Financial Services Group, Inc.'s total trailing twelve months (TTM) revenue ending September 30, 2025, was reported at $27.908 Billion USD. For the third quarter of 2025 alone, total revenue reached $7.23 billion dollars.

The primary customer groups are segmented as follows, with the Business Insurance segment historically driving the largest portion of the top line:

• Small to large commercial businesses (main revenue driver)
• Individual consumers for auto and homeowners insurance (Personal Insurance)
• Employers seeking group life, disability, and accident coverage (Employee Benefits)
• Retail and institutional investors for mutual funds (Hartford Funds)

Here's a look at the financial metrics tied to these segments, primarily using Q3 2025 results:

The Business Insurance segment, serving small to large commercial businesses, is the largest revenue contributor, accounting for 54% of total revenue based on trailing twelve months data from the end of 2024. This segment saw earned premium growth of 9% in Q3 2025.

For Personal Insurance, which covers individual consumers, the written premium growth was 2% in the third quarter of 2025, with core earnings hitting $143 million for that period. The underlying loss and loss adjustment expense ratio for the auto line improved by 3.6 points in the quarter.

The Employee Benefits segment showed persistency remaining strong in the low 90s in Q3 2025, though fully insured premium and sales were flat year-over-year. Net income for this segment was $144 million in Q3 2025.

Hartford Funds serves investors through various channels. Its assets under management (AUM) reached $146 billion as of September 30, 2025. This segment contributed $57 million to net income in the third quarter of 2025, driven by higher daily average AUM.

You can see the general revenue contribution structure from the trailing twelve months ending February 2025:

• Business Insurance: $14.4 billion (54% of total revenue)
• Other Segments (Combined): $12.2 billion (46% of total revenue)

Finance: draft 13-week cash view by Friday.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Cost Structure

You're looking at the hard costs The Hartford Financial Services Group, Inc. incurs to keep the lights on and pay out when things go wrong. This structure is heavily weighted toward claims, which is typical for an insurer, but also shows clear spending on future-proofing the business.

The most significant cost driver, by far, is the obligation to policyholders.

Claims and Loss Adjustment Expenses (LAE)

These are the costs associated with settling claims and the expenses incurred to investigate and manage those claims. For the first quarter of 2025, this was a massive outlay.

The total for Benefits, losses, and loss adjustment expenses in Q1 2025 reached $4,000 million. This figure reflects the inherent volatility of the insurance business, especially given the major catastrophe events experienced early in the year.

Underwriting and Insurance Operating Costs

These are the day-to-day expenses of running the insurance operations, separate from the claims themselves. For Q1 2025, The Hartford Financial Services Group, Inc. reported:

• Insurance operating costs and other expenses totaling $1,352 million.
• This total was broken down across segments in the consolidated statements, including figures like $524 million and $406 million for certain operational buckets within that total.

The overall P&C expense ratio in Q2 2025 was 25.7, up 1.3 points from Q2 2024, driven by technology and staffing increases.

Investment in Technology and AI Infrastructure

The Hartford is clearly putting capital to work to improve underwriting and efficiency. While Q1 data is sparse for this specific line item, later 2025 guidance gives us a clear picture of the scale of investment.

For the third quarter of 2025, the planned IT budget was $1.3 billion, which included over $500 million specifically allocated for investment projects, likely encompassing AI-driven underwriting enhancements.

Acquisition and Maintenance Costs for the Agent/Broker Network

Costs related to the distribution network, primarily commissions paid to agents and brokers, are embedded within the overall expense structure. You see this reflected in the expense ratio components.

In Personal Insurance for Q1 2025, the expense ratio of 27.0 reflected a 1.7 point increase from the prior year, partly due to a higher commission ratio.

Here's a quick look at how some of those expense components trended in Q1 2025:

Interest Expense on Debt and Capital Management Costs

The cost of financing is a necessary component, though The Hartford has worked to manage its debt profile over time. For Q1 2025, the reported Interest expense in the consolidated statement of operations was listed as "-," suggesting it was either zero or immaterial in that specific GAAP reporting line.

However, capital management activities represent a clear cash outflow, which is a cost to shareholders in the short term:

• During Q1 2025, The Hartford repurchased 3,500,000.0 shares.
• The total cash outlay for these share repurchases in Q1 2025 was $400,000,000.

The company also paid out $150 million in common stockholder dividends during that same quarter.

The Hartford Financial Services Group, Inc. (HIG) - Canvas Business Model: Revenue Streams

You're looking at where The Hartford Financial Services Group, Inc. (HIG) actually brings in the money, which is key for any financial services firm. As of late 2025, the total trailing 12-month revenue is approximately $27.69 Billion USD, though the most recently reported TTM revenue ending September 30, 2025, was $27.908B. That top-line number is built from a few core areas, mainly underwriting and investing the float.

The primary engine is earned premiums from the insurance operations. You saw the Business Insurance segment perform strongly, with written premium growth of 9% in Q3 2025. For that quarter alone, Business Insurance written premiums reached $3.6 billion. Still, you have to look at the other segments to get the full picture of the underwriting revenue base.

Here's a breakdown of the key revenue components we can see from the Q3 2025 reporting period, which gives you a solid snapshot of the revenue mix:

Net investment income from the managed asset portfolio is definitely a major contributor, especially with rates where they are. For the third quarter of 2025, consolidated net investment income hit $759 million, which was an increase from $659 million in the third quarter of 2024. This growth comes from a higher level of invested assets and reinvesting at better interest rates, though it's partially offset by lower yields on variable-rate securities.

Also, don't forget the asset management side. Fee income net of operating costs from Hartford Funds' assets under management (AUM) helps the bottom line. For example, in the second quarter of 2025, the daily average AUM for Hartford Funds was $138 billion, marking a 3% increase from the prior year's second quarter. The Q3 2025 results specifically noted an increase in net income driven by higher daily average Hartford Funds AUM impacting that fee income.

The Personal Insurance segment also brings in earned premiums. In Q3 2025, written premiums for Personal Insurance were $987 million, up from $970 million the year before. The Employee Benefits segment shows its contribution through profitability metrics, with a core earnings margin of 8.3% in Q3 2025. These revenue streams-premiums, investment income, and asset management fees-are what keep The Hartford Financial Services Group, Inc. running. Finance: draft the Q4 2025 revenue projection based on this Q3 data by next Tuesday.