The Hartford today announced it earned $900 million in net income in the second quarter of this year, a 94% jump from second quarter 2020.
Core earnings of $836 million were up 91% from second quarter 2020.
“Our performance was outstanding with all businesses and investment returns contributing to very strong second quarter results that generated a 13.1 percent core earnings ROE,” said Chairman and CEO Christopher Swift.
“All the components of our strategy have come together as we deliver on growth, underwriting margin expansion and operating efficiencies to generate industry leading returns and enhance value for all stakeholders,” Swift added.
Commercial lines written premiums of $2.5 billion were 15% higher than second quarter 2020 with increases in all three businesses. Standard commercial new business premiums increased 46%.
The commercial lines combined ratio of 88.9 in the second quarter 2021 with an underlying combined ratio of 89.4, was a 13.5 point improvement from 102.9 in second quarter 2020, and a 3.7 point improvement when excluding COVID-19 losses in both periods.
The quarter saw catastrophe losses of $128 million.
Net investment income rose to $581 million, before tax, from $339 million in second quarter 2020.
“Property and Casualty had simply a superb quarter, with robust top line growth, especially new business sales, and excellent underwriting results,” The Hartford’s President Doug Elliot said. He called new business “terrific” across commercial lines and credited underwriting discipline combined with consistent pricing and risk selection with contributing to a “superior” underlying combined ratio of 89.2.
The company said “Improving operating efficiencies and a lower expense ratio” from Hartford Next, its cost transformation program, have contributed to margin expansion. The insurer said the program delivered $195 million in savings in the six months ended June 30, 2021. It continues to expect full year savings of approximately $540 million in 2022 and $625 million in 2023.
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