Hartford reports big Q3 profit increase

Hartford Financial Services Group Inc. posted third-quarter net income of $645 million, nearly double the profit it reported in the same period last year, which the company attributed to strong results in several lines and favorable investments.

“Once again commercial lines and group benefits, which in aggregate represent over 85% of earned premium, delivered exceptional results,” said Christopher Swift, chairman and CEO of the Hartford, Connecticut-based insurer, said Friday during a call with analysts.

In addition, “strong pricing across (property/casualty), including double-digit increases in commercial property, personal lines, auto and home” contributed to the results, he said.

Overall, property/casualty written premium rose 8%.

Investment income increased to $597 million for the quarter, up 22.6% compared with the same period last year.

In its commercial lines unit, Hartford reported core earnings of $542 million, a 49% increase over the 2022 period. The business reported $115 million in catastrophe losses during the quarter – primarily from tornado, wind and hail events across several regions of the United States – which was down from $179 million in the prior year period.

Beth Costello, chief financial officer, said the results were “in line with our expectations, as we believe that our effective aggregation management and underwriting discipline has helped to limit our losses from the increased number of convective storms.”

The commercial lines combined ratio improved to 90.2% in the third quarter from 94.3% in the prior year period.