New You can now listen to Carrier Management articles!

Compared to the same window last year, net income at The Hartford was down during the third quarter of 2022 — but core earnings were up during what the company’s CEO described as a strong stretch.

Third-quarter 2022 net income available to common stockholders reached $333 million compared to $476 million in the 2021 period. Meanwhile, core earnings hit $471 million compared to $442 million in the 2021 period.

In the first nine months of 2022, The Hartford delivered core earnings growth of 18 percent.

“These are terrific results that reflect The Hartford’s performance-based culture and demonstrate why, despite the continued headwinds of inflation and economic uncertainty, we are confident in our ability to continue to execute at a high level,” said Christopher Swift, CEO.

The Hartford recognized Q3 catastrophe losses of $293 million, with Hurricane Ian losses totaling $214 million. In commercial lines, Ian losses were $133 million, and personal losses totaled $81 million. About 72 percent of the personal line losses were auto losses.

Property and casualty written premiums rose 9 percent in third-quarter 2022, driven by commercial lines premium growth of 10 percent with increases in all three businesses.

“Within small commercial, as further evidence of our broadened appetite, we’re particularly proud of the capabilities we’re building in the excess and surplus lines space,” said Doug Elliot, The Hartford’s president. “By the end of this year, written premiums will likely exceed $100 million. Going forward, we expect to become a leading destination for binding opportunities, a strong complement to our existing retail offering.”

Changing weather patterns coupled with persisting inflationary pressures point to the importance of maintaining underwriting discipline to ensure pricing keeps pace with loss trends and reserving assumptions.

“Across our property and casualty business, we continue to be well positioned to sustain industry-leading financial performance,” Elliot said during the earnings call. “The strength of our broad product portfolio and underwriting execution are evident in our excellent year-to-date top-line growth of 9 percent and sub-90 underlying combined ratio. In addition, the relative size of our Ian loss is further proof of that underwriting discipline.”