Hartford reports jump in estimated Q2 profits

The Hartford Financial Services Group Inc. said Wednesday it estimates it will report second-quarter 2020 net income of $463 million, which would be a 24.5% increase over its comparable 2019 results, despite an estimated $251 million of pretax COVID-19-related losses.

The insurer, which reports its second-quarter results July 30, said in its statement that the $251 million in COVID-19 losses reflects estimated incurred losses in property/casualty of $213 million pre-tax, and is largely comprised of reserves for business interruption claims on property policies, workers compensation net of favorable frequency and financial lines.

It said reserves for business interruption claims pertain to policies in middle and large commercial and in global specialty that do not require direct physical loss or coverage.

Estimated COVID-19 property losses also include legal costs to defend lawsuits for business interruption claim where the contract requires direct physical loss or damage to trigger coverage, its statement said.

Estimated workers compensation COVID-19 losses include presumptive losses relating to states that have passed laws or issued executive orders or agency rules that provide for coverage resumption for certain industry classes, including health care and other essential workers, it said.

Last year’s second-quarter results were impacted by the costs associated with the insurer’s Navigators Group Inc. acquisition.

More insurance and risk management news on the coronavirus crisis here.