The Hartford reports a first-quarter net loss of $241 million as its life business run-off and one-time charges dragged down earnings. However, its P&C business net income was up of 8 percent.
The combination of Hartford's Talcott Resolution—annuity and life insurance business it placed into run-off more than a year ago to concentrate on P&C—and charges for early extinguishment of debt and good-will write off produced a net loss of $652 million. The company's three core businesses—P&C, Group Benefits and Mutual Funds—produced net income of $411 million, offsetting the net loss.
The Hartford, Conn.-based insurer's Chairman and CEO Liam E. McGee calls the quarter's performance strong, noting that the company reported core earnings growth of 19 percent or $456 million. Speaking to financial analysts during a conference call, McGee said its General Liability and Property lines are seeing new business “and I believe we will ultimately achieve a better balance among all of our commercial P&C lines of business.” He noted that consumer lines returned to written-premium growth for the first time since 2009.
Net income in P&C was up $27 million to $351 million, but revenues were off 2 percent to $2.9 billion. Combined ratio improved 2 points to 93.6. The Hartford says that combined-ratio improvement was principally due to improved P&C Commercial insurance margins resulting from pricing and underwriting initiatives the company began in 2011. The segment also benefited from catastrophe losses dropping from $71 million in 2012 to $32 million in 2013.
Highlighting Q1 earnings, P&C Commercial underwriting increased from $4 million in 2012 to $91 million in 2013. Small commercial and middle-market pricing increased 9 percent, a 2-point increase over the prior year. Consumer markets—auto and homeowners—underwriting gain dropped 39 percent to $72 million as lower catastrophe losses of $26 million were more than offset by less favorable prior year reserve development.
One bright spot: New-business premium rose 5 percent due to growth in AARP Direct and AARP Agency businesses. The combined ratio improved slightly by 0.2 points to 88.6.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
