The Hartford Insurance Group, Inc.

Good morning. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hartford's First Quarter 2019 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press the star, then the number one on your telephone keypad. To withdraw your question, press the pound key. Thank you. Sabra Patil, Head of Investor Relations. You may begin your conference.

Good morning, and thank you for joining us today. We reported first quarter 2019 results yesterday afternoon and posted all the earnings-related materials, including the 10Q, on our website. For those of you joining us live, we appreciate your finding time for us on such a busy morning for earnings calls. Please note that we reported results a bit later than usual, in expectation of having closed the Navigator's acquisition by now. We also expect that post-acquisition, our earnings releases will be about a week later than our previous schedule as we complete all the financial reporting integration work, which we will launch immediately after closing. As per our usual practice, we will announce our second quarter earnings release date in early July. Before introducing the speakers, I wanted to draw your attention to two recent 8-K filings. First, yesterday morning, Navigators filed an 8K announcing that the outside date for the acquisition has been automatically extended from May 1st to July 1st in accordance with the terms of our merger agreement, which permit an extension for the regulatory approval process. The only approval we have yet to receive is from the New York Department of Financial Services, and as noted in the 8K, they have been provided with all of the requested materials and information. There will be a public filing via 8K when we receive that approval, and the acquisition will close five business days after that. We would note that as a result of SEC filing requirements, even if we were to close the acquisition before May 10th, Navigators will still be required to file a Form 10-Q for the first quarter financial results. Second, this morning we announced that Stephen McGill has resigned from our board, effective today, as a result of the announcement that he, along with other experienced executives, have launched a new insurance brokerage firm, McGill and Partners. Mr. McGill's resignation does not arise from any disagreement on any matter relating to the company's strategy, operations, policies, or practices. We appreciate and thank him for his service on our board. For the call today, our speakers are Chris Swift, Chairman and CEO of the Hartford, Doug Elliott, President, and Beth Mambaro-Costello, Chief Financial Officer. Following their prepared remarks, we will have a Q&A period. Just a few final comments before Chris begins. Today's call includes forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, and actual results could be materially different. We do not assume any obligation to update information or forward-looking statements provided on this call. Investors should also consider the risks and uncertainties that cause actual results to differ from these statements. A detailed description of those risks and uncertainties can be found in our SEC filings. Our commentary today also includes non-GAAP financial measures. Explanations and reconciliations of these measures to the comparable GAAP measure are included in our SEC filings as well as in the news release and financial supplement. Finally, please note that no portion of this conference call may be produced or rebroadcast in any form without the Hartford's prior written consent. Replays of this webcast and an official transcript will be available on the Hartford's website for one year. I'll now turn the call over to Chris.

Good morning, and thank you for joining us today. Yesterday, we reported first quarter core earnings of $507 million. up 10% over first quarter 2018. Core earnings were $1.39 per diluted share. First quarter results were strong, and all of the Hartford's businesses performed well, making meaningful contributions to financial results and progress toward the achievement of our strategic goals. Our core earnings ROE, which is calculated on a trailing 12-month basis, was 11.5%. a very strong result considering the significant level of catastrophe losses in 2018. Our annualized core earnings ROE was 13.9% for the quarter. Book value excluding AOCI rose 11% over last year to $40.79 per diluted share for total shareholder value creation of 14%, including dividends. I am pleased by the growth momentum building in our segments. Commercial lines written premium rose 5% over the prior year, despite workers' compensation pricing headwinds. Personal lines and group benefits both had strong sales in the quarter, and the Hartford Fund's net flows were positive. Doug and Beth will cover segment results in more detail, but I wanted to highlight a few data points that illustrate the earnings power and financial strength of our franchise. Commercial lines underlying combined ratio was 92.7 in the quarter, clearly among the best in the market. While up from the prior year, it was consistent with our expectations, although loss severity in property and marine was higher than average. The expense ratio increased, also consistent with our expectations, due to planned investments to make us an easier company to do business with, including our multi-year strategic initiatives, focused on driving long-term efficiency and enhanced capabilities, such as a rebuilt agency portal, which enables more digital interfaces with our distribution partners. With personal lines margins much improved after recent pricing and underwriting actions, our key objective is to return to top-line growth through a combination of sales and enhanced retention focused on AARP members. Our AARP partnership, now in its 35th year, is the cornerstone of our personal lines business. I am very pleased with the sales this quarter, which were up 57%, resulting from expanded marketing efforts over the last year and a half. Margins also improved. The accident year loss ratio before CATS dropped 3.3 points, improving for both auto and home. although substantially offset by the impact of planned marketing initiatives on the expense ratio. Group Benefits continues to deliver strong results, and 18 months after closing the acquisition, operational performance is proceeding extremely well. Core earnings were up 44% to $122 million, which included the impact of favorable disability trends. The acquisition-related integration activities remain on track, and we have exceeded expense and sales targets by a good margin, with persistency in line with expectations. The Hartford funds had a solid quarter. Core earnings were down from prior year because of the impact of overall market performance in the fourth quarter, but were in line with our expectations. Other operational metrics were quite favorable with positive net flows and continued excellent investment performance relative to peers. Another area of significant focus this quarter was the pending acquisition of navigators. The go-to-market leadership structure was announced earlier this year, and the teams are well prepared to hit the ground running when the deal closes. We continue to hear very positive feedback from agents and brokers, and look forward to introducing the combined teams and expanded product offerings to our top distribution partners at our annual summit meeting later this month. We are very excited about the potential bringing the two organizations together. Near term, we are focused on achieving a timely and effective alignment of the underwriting teams, which will strengthen the commercial lines presence. In addition, we are confident that we will achieve our long-term financial objectives through a combination of improved underwriting margins, higher investment returns, higher revenue growth, and expense savings. The Hartford's overall strategy is straightforward and unchanged. First, we remain focused on achieving the full potential of our product capabilities and underwriting expertise, with a particular focus on the integration of the acquisitions. Second, we continue to invest for the future to become an easier company to do business with, including investments in technology, data, analytics, and digital capabilities that improve the experience we deliver to distribution partners and customers. Third, long-term success depends on the continued ability to attract retain, and develop top talent. We have top decile employee engagement scores, which recognize our commitment to providing attractive career opportunities in a diverse and inclusive workplace. And we are proud to be recognized for our ethical culture as recognized by Ethisphere for the 11th time. Our financial goals to drive long-term shareholder value creation are also unchanged. First, To profitably grow our businesses while generating strong returns, well in excess of our cost of equity capital. Second, to deploy excess capital accretively in our businesses or through capital management actions. And finally, to grow book value and dividends per common share over time. How we achieve these goals is also important. Every day we support our policyholders, agents, employees, and communities by protecting their incomes, families, and businesses and making sustainable and positive contributions to society, including support of organizations like Junior Achievement, the Boys and Girls Club, the City of Hartford, and our support of programs to address drug addiction. To conclude, First quarter results were strong, with all business segments performing well. Our balance sheet and capital generation remain robust. I am very pleased with first quarter results, both financially and operationally, and look forward to building on our achievements during the remainder of 2019 and beyond. Now I'll turn the call over to Doug.