Hartford’s Q3 Net Income Rebounds, Rising 21% to $524 Million

November 6, 2019

The Hartford’s net income rebounded during the third quarter, rising 21% from Q3 2018 to $524 million, partly due to lower current accident year catastrophes, a lower group disability loss ratio and higher net investment income, the company said.

The Hartford reported “strong property casualty margins, excellent group disability results and solid investment returns producing an impressive 12.0 percent net income return on equity,” said the insurer’s Chairman and CEO Christopher Swift, in a statement. “This is our first full quarter with Navigators, and we continue to focus on integration and achieving key milestones as we operate as an integrated team.”

During the second quarter of 2019, the Hartford reported a drop in its net income and a spike in its commercial lines combined ratio, due in part to costs associated with its $2.1 billion acquisition of specialty insurer Navigators Group, which was finalized in May.

“Commercial and Personal Lines business units again delivered impressive results this quarter. Top line performance within Commercial Lines was strong and we’re achieving pricing momentum in Middle Market and Specialty lines. Navigators integration efforts are progressing well, translating into marketplace wins, and we are pleased with the positive feedback received from distribution partners on our expanded product breadth,” said The Hartford’s President Doug Elliot.

Highlights from The Hartford’s Q3 results include:

  • Commercial lines net income rose by 16% to $336 million, compared with $289 million during the same quarter in 2018. This improvement was principally due to higher net investment income, higher net realized capital gains and, to a lesser extent, a higher underwriting gain, partially offset by higher integration costs related to the Navigators acquisition.
  • Commercial lines written premiums rose 28% to $2.2 billion from $1.8 billion reported during Q3 2018.
  • Excluding Navigators, Q3 commercial written premiums were up 4% on new business growth and higher renewal premium in middle market business.
  • Commercial lines combined ratio was 96.4%, a3 point deterioration from 96.1% during Q3 2018.
  • Personal lines net income rose 84% to $94 million from $51 million in Q3 2018 primarily due to lower current accident year catastrophe losses.
  • Personal lines written premiums dropped 4% to $822 million from $854 million reported in Q3 2018, mainly due to non-renewed premiums in excess of new business.
  • Personal lines new business premiums of $79 million increased 34% resulting from growth in both auto (up 23%) and homeowners (up 75%).
  • Personal lines combined ratio was 92.8% in third quarter 2019, which is an improvement of 5.6 points than the 98.4% reported during Q3 2018.

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