Net income growth was materially aided by discontinued operations
Net income increased to $1.298B from $995M, while income from discontinued operations rose to $318M from $57M. Management attributed the $261M year-over-year increase in discontinued-operations income primarily to a $251M income-tax benefit from establishing a deferred tax asset related to the sale of Hartford Funds.
Hartford Funds sale agreement creates a strategic portfolio change
On June 3, 2026, the Company entered into a definitive agreement to sell Hartford Funds Management Group, Inc. Hartford Funds is reported as a discontinued operation, which affects comparability between reported net income and ongoing-business performance.
Core earnings grew modestly relative to GAAP net income
Core earnings, the Company's non-GAAP measure of ongoing operating performance, increased to $945M from $932M. The reconciliation excludes $318M of discontinued-operations income and excludes certain realized gains and other specified items, illustrating that the 30.5% GAAP net-income growth was substantially greater than growth in core earnings.