Hartford says earnings exceeded goals, especially in commercial

Hartford Financial Services Group Inc. Thursday posted an 11% increase in fourth-quarter net income and a 24% increase for all of 2024, compared with prior-year figures.

The Hartford, Connecticut-based insurer reported that property/casualty written premiums increased by 7% in the fourth quarter of 2024 compared with the previous year, and by 10% for the full year, driven in part by commercial lines premium growth of 6% in the fourth quarter, and 9% for the full year.

Hartford’s chairman and CEO, Christopher Swift, spoke on Friday during an earnings webcast with analysts. He attributed the success that surpassed expectations to growth in the commercial lines business, which “achieved significant top-line growth while maintaining highly profitable underlying margins.” Premium growth was driven by “strong pricing increases across most lines… and double-digit new business growth,” he said.

The insurer reported commercial lines core earnings of $665 million in the fourth quarter of 2024, compared with $723 million in the same period the previous year. A 9% growth in earned premiums and a slight rise in net investment income contributed to the results.

Catastrophe losses stood at $67 million in fourth-quarter 2024, “primarily from hurricanes and tropical storms, including $55 million from Hurricane Milton, primarily in the Southeast region, as well as net reductions for catastrophes incurred earlier in the year of $7 million,” up from $60 million in losses during the year-ago period.

The insurer also reported a commercial lines fourth-quarter 2024 underlying combined ratio of 87.1% and a combined ratio of 87.9% for the full year.

Chief Financial Officer Beth Costello said the quarter represented the 18th straight quarter of an underlying combined ratio below 90, adding that small commercial lines outperformed middle and larger markets.

“Middle and large commercial had another quarter of strong profitability, with an underlying combined ratio of 90.2, slightly improved from the prior year, and written premium growth of 5%, reflecting lower new business as we remain disciplined, particularly with elevated general liability severity loss trends,” she said.