The Hartford sees Q2’25 net income and premium growth with lower cat losses

US-based insurer The Hartford has announced its financial results for the second quarter of 2025, reporting a 35% increase in net income, and 8% growth in Property & Casualty (P&C) written premiums.

According to the firm, the increase in Q2 2025’s P&C written premiums was driven by Business Insurance and Personal Insurance premium growth of 8% and 7%, respectively.

For Q2 2025, The Hartford’s net income stood at $990 million, compared to the $733 million reported for the second quarter of 2024, primarily driven by earned premium growth across P&C, more net favourable prior accident year development (PYD).

Other factors contributing to growth include improvement in the Personal Insurance underlying loss and loss adjustment expense ratio, lower P&C current accident year catastrophe losses, higher net investment income, and lower net realized losses.

Net income for the second quarter of 2025 included a pre-tax benefit of $24 million from the amortization of a deferred gain.

This gain was associated with retroactive reinsurance from Navigator’s ADC, an adverse development cover for Navigators related to 2018 and prior accident years. This compares to a $37 million benefit in the same period of 2024.

Core earnings for Q2 2025 stood at $981 million, 31% growth from $750 million reported in Q2 2024. These results improved due to a 10% increase in P&C earned premium and higher net investment income of $664 million, up from $602 million.

Additionally, the Business Insurance loss ratio improved to 56.1, from 58.4, benefiting from lower catastrophe losses and more favourable PYD, though the underlying loss ratio increased slightly.

The Business Insurance segment combined ratio reached 87% in Q2 2025, improving from 89.8% in the same period last year. The underlying combined ratio was 88% in this year’s second quarter, an improvement from 87.4% reported in Q2 2024.

Personal Insurance saw a significant improvement in its loss and loss adjustment expense ratio, reaching 69% in Q2 2025 compared with 81% in Q2 2024, including 4.2 points of lower catastrophes and 0.4 points of more favourable PYD.

The underlying loss and loss adjustment expense ratio of 62.8% improved 7.5 points from Q2 2024, largely due to the impact of earned pricing increases, partially offset by moderating automobile loss cost increases.

Personal Insurance reported a combined ratio of 94.1% in Q2 2025, improving from 107.4% in the same period last year. The underlying combined ratio was 88% in this year’s second quarter, an improvement from 96.7% reported in Q2 2024.

Net favourable PYD in core earnings nearly doubled to $163 million from $78 million, primarily from reserve reductions in workers’ compensation, catastrophes, bond, and commercial property.

P&C catastrophe losses decreased to $212 million in Q2 2025, from $280 million in Q2 2024. These cat losses were driven by tornado, wind and hail events across several regions of the United States, but concentrated in the South and Midwest regions.

The P&C expense ratio improved by 0.6 points to 29.5% due to higher earned premium. In Employee Benefits, the loss ratio slightly increased to 69.1% from 68.9% mainly due to group disability, and the expense ratio rose to 25.7% from 24.4% due to technology investments and staffing costs.

“The Hartford’s second quarter results were outstanding, with core earnings reaching nearly $1 billion,” said The Hartford’s Chairman and CEO Christopher Swift. “This performance contributed to a trailing 12-month core earnings ROE of 17.0 percent and reflects the effectiveness of our strategy and consistent execution.”

The Hartford’s Chief Financial Officer Beth Costello said, “Business Insurance had an excellent quarter with top-line growth of 8 percent and an underlying combined ratio of 88.0. Excluding workers’ compensation, pricing of 8.1 percent remained solid and above loss cost trends. Personal Insurance achieved 8.7 points of underlying combined ratio improvement. Employee Benefits delivered an exceptional core earnings margin of 9.2 percent. Investment performance was strong, benefiting from a diversified portfolio and attractive new money yields.”

Swift continued, “We are expanding our market presence and growing with purpose. Our strategic investments are advancing innovation across the organization to benefit customers and distribution partners. We are confident in our ability to deliver profitable growth and capitalize on the opportunities ahead.”

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