The Hartford sees “tremendous opportunity” in E&S binding premium after 29% growth in Q1

By Michael Loney

April 25 -

(The Insurer) - The Hartford’s small business unit is on track to surpass $6 billion in written premium in 2025, including strong growth in its E&S binding premium, the carrier’s CEO said.

After markets closed on Thursday, The Hartford

reported $2.20 core earnings per diluted share

for the first quarter that beat the $2.15 consensus estimate but was down from $2.34 in Q1 2024.

The consolidated combined ratio of 96.9% was a 4.1 point deterioration from 92.8% in the prior-year period driven by higher catastrophe losses for both commercial insurance and personal insurance.

Overall property P&C written premiums increased by 9% in the first quarter of 2025, driven by growth of 10% in business insurance to $3.69 billion and 8% in personal insurance to $913 million.

On an investor call on Friday, The Hartford chairman and CEO Christopher Swift said business insurance results were “excellent”.

“New business growth remained strong within small and middle market where the environment continues to be conducive for growth,” he said.

Small business had record-breaking quarterly written premium and double-digit new business growth while extending a 19-quarter trend of sub-90 underlying combined ratios. Swift said this business is on track to surpass $6 billion in annual written premium in 2025, following $5.5 billion in 2024.

“New business growth was driven in part by strong quote flow and modestly higher average premium as well as a 29% increase in E&S binding premium, a business where we continue to see tremendous opportunity,” Swift said.

Middle and large new business growth remained strong with contributions from multiple lines and market sectors, Swift said. This business’ written premium growth reflects strong renewal rate execution across most lines, including double-digit increases in liability and auto.

Global specialty results were “outstanding”, Swift said, with sustained underlying margins in the mid-80s and over $1 billion in quarterly written premium.

“This impressive topline performance reflects our strong competitive position, diverse product offerings and solid renewal written pricing including double-digit pricing in wholesale casualty,” he said.

The global specialty wholesale business saw an 11% increase in gross written premium with significant contributions from U.S. inland marine, auto and casualty lines and the global reinsurance business also grew at a double-digit rate.

Across business insurance, “combined emphasis on property expansion has resulted in written premium growth of approximately 15% this quarter”, Swift said.

“We are capitalizing on the favorable market conditions in the SME space with a disciplined approach and no change in our catastrophe risk appetite,” he said.

Business insurance renewal written pricing excluding workers’ compensation of 9.9% in the first quarter was up 20 basis points from the fourth quarter.

“Our pricing execution remained strong, including low double-digit increases in general liability and auto with liability pricing continuing to rise. The team hit the ground running on 1.1 renewals, exceeding liability pricing targets, which are comfortably above loss cost trends,” Swift said.

Business insurance property pricing remains healthy in the low double digits, driven by 18% pricing increases within the small business package product.

Providing more detail on the E&S market, The Hartford president Mo Tooker said small business wholesale growth is being driven not only by strong flow but also the company continuing to open up new wholesale locations.

“I think the summary in the binding E&S space is we continue to be really optimistic about our growth there, predicated on just we’re making it easier for our partners to do business with us relative to peers,” he said.

The Hartford’s E&S business in the global specialty space also is seeing strong flow, Tooker said.

“We are a very, very strong construction market and a key partner to the wholesalers in construction liability primarily,” Tooker said. “What we are doing in that space is more about building out the other lines, inland marine, the non-construction casualty lines, property.

“Just because of the partnership we’ve established on the construction side, I think we can continue to grow share in the brokerage space as well. So we’re really optimistic about E&S overall and the continued growth in that space.”

Personal insurance emerged from challenging environment

The Hartford’s margins in personal insurance continue to improve, achieving an underlying combined ratio in the 80s for the first time in three years.

“We expect target profitability in auto by mid-2025, consistent with our expectations. Having navigated a challenging loss cost environment, personal insurance is now focused on balancing profitability and a pivot to growth in a competitive environment,” Swift said.

The homeowners business produced a mid-70s underlying combined ratio.

“Renewal written pricing of 12.3% driven by net rate and insured value increases continues to support healthy margins while reinforcing our strong position in the market,” Swift said.