The Hartford Financial Services reported first quarter 2023 net income of $535 million, nearly a 21% increase over $443 million a year ago.
In the company’s property/casualty segments, results were carried by net income of $421 million in commercial lines — offsetting a loss of $1 million in personal lines during the first three months. A year ago, Q1 net income in commercial was $383 million and $77 million in personal.
The Hartford’s group benefits contributed to positive results by reversing a Q1 2022 loss of $8 million with a $92 million profit in Q1 2023.
The insurer’s commercial and personal P/C businesses turned in combined ratios of 92.7 and 106.1, respectively, for the quarter. Personal lines recorded a Q1 underwriting loss of $45 million compared to a gain of $69 million a year ago.
The Hartford said increases in severity in personal auto liability and physical damage caused about a 10.3-point uptick in its underlying loss and loss-adjustment expense ratio. Pre-tax unfavorable prior-year development in personal lines during Q1 was caused by increased auto physical-damage claims.
“In personal lines auto, we achieved average approved rate filings of 18.3% and written pricing increases of 10%. In a dynamic environment, we continue to respond with rate filings to address inflationary pressure,” said Beth Costello, chief financial officer, in a statement.
Personal lines were also hit by $47 million in January-March catastrophes from tornado, wind and hail events, and winter storms, compared to $17 million in catastrophe losses in Q1 2022.
CEO Christopher Swift said, “Renewal written pricing in standard commercial lines, excluding workers’ compensation, rose to 8.1%, above loss cost trends.”
Written premiums in commercial lines increased 11% in Q1 to about $3.1 billion. The combined ratio for the segment was 92.7, an increase of 2.4 points from last year, driven by catastrophe losses $131 million compared to $81 million in Q1 2022.
Topics Profit Loss Personal Lines
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