The Hartford Performs Well in Q1, Despite Higher Personal Auto Losses

The Hartford scored with its 2017 first quarter net income, despite higher weather, fire and personal auto loss costs. Investment income and lower net realized capital losses helped shape the better results.

Net income came in at $378 million, or $1 per diluted share – a 17 percent jump from $323 million over the 2016 first quarter.

While The Hartford’s commercial lines combined ratio was 96, nearly 5 points higher than the same year-ago period, the personal lines combined ratio of 99.3 reflects a 0.6 point improvement versus the 2016 first quarter.

Net realized capital losses were $13 million, versus $101 million in net realized capital losses a year ago. At the same time, however, current accident year catastrophe losses rose to $98 million during the quarter, a 66 percent hike over $59 million during the 2016 first quarter.

The Hartford Chairman and CEO Christopher Swift said that the insurer was “off to a very good start” for the year, particularly with strong growth in commercial lines, group benefits and investments.

Doug Elliot, The Hartford’s president, noted that the insurer was making progress in personal lines, and asserted that the insurer’s “personal auto profitability initaitives” are taking hold.

Here additional result highlights:

• Commercial lines produced $1.68 billion in net earned premiums, versus $1.6 billion in the 2016 first quarter.

• Personal lines booked $934 million in net earned premiums, down from $975 million over the same period last year.

• Net investment income hit $728 million, a 5 percent hike from the 2016 first quarter, due to higher income from limited partnerships and other alternative investments.

• Catastrophe losses for commercial lines were $71 million pre-tax, versus $44 million in the 2016 first quarter.

• Personal lines catastrophe losses jumped to $79 million during Q1, higher than $47 million in catastrophe losses from the same period a year ago.

Source: The Hartford