Hartford sees profits dip due to wildfires, touts growth as offset

The Hartford Insurance Group Inc. on Thursday reported first-quarter net income of $625 million, a 16% decrease compared with the same period last year and the result of catastrophe losses in both personal and commercial lines of $467 million, $325 million attributed to wildfires in California.

“While we are pleased with the performance of our overall book of business and risk management program, the losses were significant to first-quarter results,” Chairman and CEO Christopher Swift said during an earnings webcast Friday.

The losses were partially offset by new business growth of 10%, “driven in part by strong quote flow in modestly higher average premium, as well as a 29% increase in (excess and surplus lines) premium, where we continue to see tremendous opportunity,” Mr. Swift said.

Commercial lines core earnings of $477 million in first-quarter 2025 represented a 17% decrease over the same period last year, which the insurer said was partly the result of $207 million in business insurance losses due to the wildfires in California.

The company’s commercial lines combined ratio stood at 94.4% in the first quarter, 4.3% over last year, and was attributed in part to the cat losses.

Beth Costello, the insurer’s chief financial officer, said outside of cat losses, results were “excellent,” and driven by growth.

“Small business continues to deliver industry-leading results with written premium growth of 9%, double-digit new business growth and an underlying combined ratio of 89.4; middle and large business had another quarter of solid profitability with an underlying combined ratio of 90.6 and written premium growth of 9%, including record quarterly new business of $188 million,” she said.