The Hartford posts 18% rise in net income in Q3, P&C CAY CAT losses reach $247m

Property & casualty (P&C) insurer The Hartford has posted an 18% year-on-year increase in net income to $761 million for the third quarter of 2024, driven by double-digit earned premium growth in both its Commercial and Personal Lines segments, as well as lower net realised losses and higher net investment income.

Alongside the rise in net income, the P&C insurer’s core earnings increased by 6% to $752 million.

Contributing to the increase in earnings year-on-year, The Hartford has reported 11% growth in P&C earned premium, as well as net investment income of $659 million, before tax, compared with $597 million in third quarter 2023.

At the same time, The Hartford reported P&C current accident year (CAY) catastrophe (CAT) losses in Q3’24 of $247 million, before tax, which includes $104 million of losses from Hurricane Helene, which caused widespread destruction and fatalities across the Southeastern United States in late September 2024.

However, P&C written premiums climbed 10% in the quarter, which The Hartford noted was driven by Commercial lines and Personal lines premium growth of 9% and 12%, respectively.

The Personal lines segment produced a $31 million net income in the quarter, a major improvement from a net loss of $12 million in the prior year period, driven by improved underwriting results and an increase in net investment income.

The segment also generated core earnings of $33 million, compared to a core loss of $8 million in the third quarter of 2023.

In addition, the segment also posted CAY CAT losses of $92 million, before tax, in the quarter, which was primarily driven from hurricanes and tropical storms, including $49 million from Helene, as well as wind and hail events across several regions of the United States.

The Personal lines segment combined ratio was 102.5% in Q3’24, an improvement from 107.9% in Q3’23.

Turning to the Commercial lines segment, the segment produced a $528 million net income, compared with net income of $519 million in the third quarter of 2023, while core earnings sat at $534 million, compared to $542 million in the prior year quarter.

As well as this, the segment reported CAY CAT losses of $155 million, before tax, primarily driven from hurricanes and tropical storms, including $55 million from Helene, as well as  numerous wind and hail events across several regions of the United States.

And lastly, the segment’s combined ratio was 92.2% for Q3’24, compared to 90.2% from Q3’23.

The Hartford’s Chairman and CEO Christopher Swift, commented: “The Hartford delivered an excellent quarter with a trailing 12-month core earnings ROE of 17.4 percent. Commercial Lines once again generated strong top-line growth at highly profitable margins, Personal Lines continues to make progress toward restoring target profitability in auto, Group Benefits margin remained strong, and all businesses benefited from a consistent contribution from the investment portfolio.”

The Hartford’s Chief Financial Officer Beth Costello said: “Commercial Lines had an excellent quarter with an underlying combined ratio of 88.6. Pricing, excluding workers’ compensation, at 9.5 percent in the quarter remains above loss cost trends. Personal Lines generated a 7.0-point improvement in the auto underlying combined ratio. Group Benefits continued to outperform with a core earnings margin of 8.7 percent, driven by strong results in life and disability.”

Swift continued: “The Hartford’s performance through the first nine months of 2024 is a powerful example of sustained financial excellence even in the face of industry-wide elevated catastrophe losses. With strong capital generation, we are pleased to announce an 11 percent increase in our quarterly common dividend. Our franchise has never been better positioned to sustain industry-leading financial performance and create value for all our stakeholders.”

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