Hartford profit up sharply despite hurricane losses

Hartford Financial Services Group Inc. on Thursday posted third-quarter net income of $761 million, up 18% from the same period last year, on higher investment returns and strong underwriting performance despite catastrophe losses from hurricanes, company officials said on an earnings webcast.

“Our excellent performance reflects the effectiveness of our strategy and ongoing investments to differentiate ourselves in the marketplace,” Chairman and CEO Christopher Swift, chairman said during the Friday webcast.

“We remain focused on discipline, underwriting, pricing, execution, expanding product and distribution, breadth, developing exceptional talent and delivering a superior customer experience,” Mr. Swift said.

Hartford posted its quarterly results after markets closed Thursday. Core earnings for the third quarter totaled $752 million, up 6% from this time last year.

The insurer saw top line growth in commercial lines of 9%, with double-digit new-business growth, strong renewals and pricing increases. Overall, property/casualty written premiums rose 10%.

Commercial lines core earnings stood at $534 million, a 1% increase from last year’s third quarter.

Hartford reported commercial lines’ current accident year catastrophe losses of $155 million, before taxes, primarily from hurricanes and tropical storms, including $55 million from Hurricane Helene. That compared with storm-related losses of $115 million in the year-earlier period.

Commercial Lines reported a combined ratio of 92.2, compared with 90.2 for the same period last year.

“We continue to actively manage our cat exposure through aggregation management and underwriting discipline,” Hartford Chief Financial Officer Beth Costello said during the webcast. “Additionally, we have a robust and comprehensive reinsurance program on both a per occurrence and aggregate basis.”