The Hartford reported a big rise in net income for the 2018 first quarter, crediting factors for the gain such as higher overall underwriting results, lower catastrophe losses, a boost in net investment income and tax reform.
“We continue to invest across the company to build market-differentiating capabilities, broaden product offerings and become more efficient,” The Hartford Chairman and CEO Christopher Swift said in prepared remarks. “All of these initiatives will help us serve our customers better, support profitable growth and create long-term value for shareholders.”
Net income for the quarter came in at $597 million, or $1.64 per share, and the figure also includes income from discontinued operations. That compares to $378 million, or $1 per share, in the 2017 first quarter.
A reduction in the estimated loss on the sale of Talcot Resolution helped with the Q1 results, The Hartford said.
First-quarter consolidated net investment income grew 10 percent over the same period in 2017, hitting $451 million before tax versus $410 million in Q1 2017. The insurer’s property/casualty combined ratio landed at 93.1 for Q1 2018, a 4.3-point improvement over Q1 2017 thanks to lower catastrophe losses and favorable prior accident-year development.
Here are additional result highlights:
- Consolidated net earned premiums came in at more than $3.9 billion versus $3.4 billion in the 2017 first quarter.
- Commercial lines net earned premiums grew to $1.7 billion for the quarter versus more than $1.68 billion in the 2017 first quarter.
- Personal lines net earned premiums were $859 million in Q1 2018, down from $934 million over the same period a year ago. The Hartford President Doug Elliot noted, however, that P/C results feature better “underlying margins and lower catastrophe costs” compared to last year.
Source: The Hartford