The Hartford and Principal Financial Group Show Strong Q3 Earnings
Hartford, Tuesday, 28 October 2025.
The Hartford reported a 34% rise in net income to $710 million, while Principal Financial Group increased earnings per share, highlighting resilience and recovery in the financial sector.
The Hartford’s Record Earnings in Q3 2025
The Hartford Financial Services Group, Inc. (NYSE: HIG) reported record third quarter 2025 earnings, showcasing remarkable growth in both net income and core earnings. The company reported a net income of $1.1 billion, or $3.77 per diluted share, which marks a 41% increase from the $761 million reported in the same quarter of 2024 [1]. Core earnings also rose significantly to $1.1 billion, or $3.78 per diluted share, representing a 43% increase from $752 million year-over-year [1]. This robust performance highlights the company’s strategic focus on business insurance, which saw a 9% growth in written premiums during the quarter [1].
Principal Financial Group’s Strong Performance
Principal Financial Group (Nasdaq: PFG) also delivered strong results in the third quarter of 2025. The company reported a net income of $213.8 million, a significant turnaround from a loss of $220 million in the third quarter of 2024 [2]. Non-GAAP operating earnings increased to $473.7 million, up from $412 million the previous year [2]. The company’s diluted earnings per share reached $0.95, while non-GAAP operating earnings per share, excluding significant variances, climbed to $2.32, marking a 13% increase [2]. These results are a testament to Principal’s strategic positioning in high-growth market segments.
Market Context and Strategic Insights
Both The Hartford and Principal Financial Group’s results underscore the resilience of the financial services sector amid ongoing economic challenges. The Hartford’s strategic emphasis on underwriting discipline and risk management, coupled with a decrease in catastrophe losses, significantly contributed to its outstanding performance [1]. Similarly, Principal’s focus on high-growth market segments and enhanced margin performance has driven its earnings growth [2]. These results suggest a positive trajectory for the broader insurance and financial services industry, reflecting strong underlying business fundamentals and market positioning.
Outlook for the Financial Services Sector
Looking forward, The Hartford and Principal Financial Group are well-positioned to sustain their growth momentum. The Hartford has already announced a 15% increase in its quarterly dividend per share, payable on January 5, 2026 [1]. Meanwhile, Principal Financial Group has raised its fourth quarter dividend by 8% to $0.79 per share, reflecting confidence in its ongoing financial strength and operational resilience [2]. These strategic moves are likely to enhance shareholder value and underscore the companies’ commitment to maintaining robust financial health in a dynamic economic environment.