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Research Alert: Hig Q1 Eps Miss Offset By Strong Underwriting, Premium Growth, And 20%+ Roes

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

HIG posted Q1 operating EPS of $3.09 versus $2.20 a year ago, missing our $3.60 estimate and the $3.39 consensus view. Operating revenue growth of 6.2% was in line with our 6%-10% forecast, driven by 5.3% earned premium growth, 13% higher net investment income, and 7.9% fee revenue growth. We remain encouraged by Q1 written premium growth of 4% and full-year 2025 growth of 7%, which bodes well for 2026 revenue trends as premiums are earned. We expect HIG to provide additional color on navigating the insurance pricing environment at the upcoming April 24 investor call. Underwriting results improved significantly, with Personal Lines combined ratio improving to 87.7% from 106.1% and underlying combined ratio to 85.0% from 89.7%, while Business Insurance combined ratio was stable at 94.8%. Book value per share rose 17% to $66.58, while operating ROE of 20.3% and net ROE of 23.0% were at the upper end of peer ranges. We are very encouraged by these strong Q1 results.

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