Hartford profit grows despite cat losses, big settlement
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Hartford Financial Services Group Inc. reported $476 million in net income for the third quarter, up 5% from the same period last year, although the insurer was hit by losses from Hurricane Ida and a significant liability claims settlement with the Boy Scouts of America.
Hartford’s improved results in the first half continued in the third quarter “with written premium growth, margin expansion, operating efficiencies, and a significant return on alternative investments,” said Christopher Swift, chairman and CEO of the insurer, in an earnings call with analysts Friday.
Total revenue rose 10% to $5.69 billion and investment income increased 32.1% to $650 million.
The results were hit by $300 million in catastrophe losses – $200 million of which stemmed from Hurricane Ida – and excess mortality of $212 million due to COVID-19 in group benefits, said Beth Costello, chief financial officer.
Hartford’s settlement with the Boy Scouts of America also affected the insurer in the third quarter, Mr. Swift said. Hartford agreed to pay $787 million in exchange for the full release of any obligation to its policies with the organization.
Commercial lines written premiums of $2.53 billion were 15% higher than the third quarter of 2020 with increases in all three sectors lines – small commercial, middle market, and global specialty. Standard commercial new business premiums increased 17%, Hartford reported.
Hartford reported a commercial lines combined ratio of 101.2% in the quarter, a 5.3 point deterioration compared with the same period last year.
Hartford’s third-quarter commercial lines result marked a second consecutive quarter of double-digit top-line growth, with renewal written pricing excluding workers compensation of 8.1%, said Doug Elliot, president of Hartford.
