Hartford reports 23% profit increase in Q2

Hartford Financial Services Group Inc. on Thursday posted second-quarter net income of $542 million, up 23% from the year-earlier period, despite challenges with catastrophes.

Core earnings totaling $588 million for the second quarter were down 18% from the same period last year.

“We in the industry continue to navigate a dynamic market environment,” Christopher Swift, chairman and CEO of the Hartford, Connecticut-based insurer, said Friday during a webcast with analysts, adding that the results included the “effects of elevated catastrophe losses” and “persistent inflationary pressure.”

Property/casualty losses nearly doubled to $226 million, before tax, compared with losses of $123 million in the same period last year. The company said losses were “primarily” due to tornado, wind and hail events across the United States.

Overall, commercial lines core earnings for the second quarter were $493 million, compared with $544 million in second-quarter 2022, representing an 8% drop.

In commercial lines, net income stood at $458 million, compared with $389 million during the same period last year, which the company said was principally due to lower net realized losses and earned premium growth, partially offset by elevated current accident year catastrophe losses, less favorable prior accident year development, and a slightly higher underlying loss and loss adjustment expense ratio.

However, Mr. Swift said that “momentum is strong in commercial lines.” Property/casualty written premiums rose 11%, driven by commercial lines premium growth of 12%.

The commercial lines combined ratio worsened to 91.2% in the second quarter, from 87.3% in the year-earlier period, primarily due to higher current-year cat losses, less favorable prior accident reserve development and a small increase in the underlying combined ratio.