Hartford posts 36% increase in Q4 earnings
Reprints
Hartford Financial Services Group Inc. posted 36% higher fourth-quarter net income and a 37% increase in earnings for all of 2021, compared prior-year figures.
The Hartford, Connecticut-based insurer reported Thursday after markets closed a fourth-quarter profit of $724 million and a $2.3 billion profit for all of 2021.
“In 2021, The Hartford delivered strong financial performance across the organization as we continue to execute on our strategy and realize the growing benefits of investing in our businesses,” Christopher Swift, Hartford’s chairman and CEO, said Friday on an earnings webcast with analysts.
“In commercial lines, the positive momentum continued with stellar margins in double-digit top-line growth, reflecting higher new-business levels, continued strong retention and solid renewal price increases,” he said. “Looking ahead to 2022, we expect strong growth and earned pricing to continue to exceed loss cost trends in most lines, resulting in further margin improvement.”
The insurer attributed the positive fourth-quarter results to a number of factors, including an 8% jump in earned premium in its property/casualty business, lower catastrophe losses — $22 million, compared with $55 million in the fourth quarter of 2020 — and a massive decline in COVID-19 activity. Losses related to the pandemic totaled $1 million, down from $28 million in the final quarter of 2020.
“2021 was an impressive year for The Hartford's property and casualty business,” Hartford President Doug Elliott said on the webcast. “The financial results were simply outstanding.”
The insurer reported property/casualty net written premium growth of 11%, including 14% in commercial lines. The property/casualty combined ratio of 92.1 for the fourth quarter marked a 4.9-point improvement from the prior-year period. Overall for 2021, The Hartford reported a 9% increase in net written premium.
The insurer reported a $165 million improvement in property/casualty underwriting results.
“Across commercial lines, we expect earned pricing will continue to exceed loss trend in most lines, except workers compensation,” Mr. Elliott said on the webcast.
