Property and casualty (P&C) insurer The Hartford has reported a net income of $645 million for the third quarter of 2023, a 93% increase from $334 million from the same period last year.
According to the firm, this was primarily due to a higher P&C underwriting gain, an increase in net investment income, lower net realized losses, and higher Group Benefits results, with improvements in both life and disability.
The Hartford’s P&C written premiums rose 8% in the quarter, driven by Commercial Lines premium growth of 8% in the quarter and 8% for Personal Lines. Group Benefits fully insured ongoing premium growth of 8% in third quarter 2023.
P&C current accident year (CAY) catastrophe (CAT) losses were $184 million, before tax, in Q3’23, compared with CAY CAT losses of $293 million in Q3’22.
Commercial Lines posted a combined ratio of 90.2% in third quarter 2023, improving 4.1 points compared with 94.3% in third quarter 2022.
Additionally for 2023’s third quarter Commercial Lines included CAY CAT losses of $115 million, before tax, primarily from tornado, wind and hail events across several regions of the United States, down from CAY CAT losses of $179 million in Q3’22, which included $133 million from Hurricane Ian.
Meanwhile, The Hartford’s Personal Lines segment reported a net loss of $12 million for the quarter, compared with a loss of $36 million in third quarter 2022, driven by an increase in net investment income, improved underwriting results, and lower net realized losses.
Personal Lines posted CAY CAT losses of $69 million, before tax, in third quarter 2023, primarily from tornado, wind and hail events across several regions of the United States, down from CAY CAT losses of $114 million in third quarter 2022, which included $81 million from Hurricane Ian.
Personal Lines posted combined ratio of 107.9% in third quarter 2023, compared with 109.6% in third quarter 2022.
“The Hartford continues to deliver strong financial performance with a 12-month core earnings ROE of 14.9 percent,” said The Hartford’s Chairman and CEO Christopher Swift.
“Results were driven by continued momentum and exceptional performance in our Commercial Lines and Group Benefits businesses, representing over 85 percent of earned premium, and a strong contribution from investments,” Swift added.
“Commercial Lines had an outstanding quarter with an underlying combined ratio of 87.8. Personal Lines achieved sustained double-digit written pricing increases with acceleration in auto to 19.7 percent in the quarter. Group Benefits continues to deliver excellent results driven by 8 percent growth in fully insured ongoing premiums and a core earnings margin of 9.8 percent. Our investment performance remains strong benefiting from attractive new money yields. We announced an 11 percent increase in the common dividend and, in the third quarter, returned $481 million to shareholders,” The Hartford’s Chief Financial Officer Beth Costello said.
“We continue to expand our strong competitive position, successfully executing on our priorities and delivering superior returns for our shareholders. Looking ahead there is much to be bullish about at The Hartford. Building on our results over the last nine months, I am confident in our ability to consistently deliver core earnings ROEs in the 14 to 15 percent range,” Swift continued.