The Hartford Sustains Profit Dip Due to COVID Life Insurance Claims

February 5, 2021

Fourth quarter profit at The Hartford dipped slightly due in part to COVID-related group life insurance claims.

Fourth quarter 2020 net income came in at $532 million, down 2 percent from fourth quarter 2019. Fourth quarter earnings of $636 million, rose 22 percent from fourth quarter 2019.

The insurer posted revenues of $3.44 billion for the quarter compared to year-ago revenues of $5.30 billion.

The quarter’s consolidated results reflected excess mortality in group life of $152 million primarily caused by direct and indirect impacts of COVID-19 and a $208 million charge for asbestos and environmental reserve development.

Property/casualty loss (58.3) and expense (30.5) ratios both improved for the quarter compared to last year’s.

“We have been through one of the most turbulent years in recent history, which was shaped by the COVID-19 pandemic, the economic shutdown, social unrest and a significant number of catastrophe events,” said The Hartford’s Chairman and CEO Christopher Swift.

Despite the pandemic and economic challenges, he said, the company’s property/casualty business performed well, reflecting higher pricing, disciplined underwriting and operating efficiencies.

For the year, the insurer reported a total of $278 million of COVID-19 claims and catastrophe losses including from civil unrest of $606 million.

Q4 Commercial Lines

Q4 Personal Lines

Full Year

Source: The Hartford

*This story ran previously in our sister publication Insurance Journal.