Hartford Revenue Grows Regardless of Cat Losses, Massive Comparability – Enterprise Insurance
Hartford Financial Services Group Inc. reported net income of $ 476 million for the third quarter, 5% more than the same period last year, despite the insurer impacted by losses from Hurricane Ida and a significant liability settlement with the Boy Scouts of America was.
Hartford's improved first half results continued into the third quarter "with growth in written premiums, increased margins, operational efficiency and a significant return on alternative investments," said Christopher Swift, chairman and CEO of the insurer, in a conference call with analysts Friday .
Total revenue increased 10% to $ 5.69 billion and investment income increased 32.1% to $ 650 million.
Results were negatively impacted by $ 300 million in catastrophe losses – including $ 200 million from Hurricane Ida – and an excess of $ 212 million from COVID-19 related to group performance, said Beth Costello, chief financial officer .
Hartford's deal with the Boy Scouts of America also had an impact on the insurer in the third quarter, Swift said. Hartford agreed to pay $ 787 million in consideration for the complete waiver of all obligations under its policies with the organization.
$ 2.53 billion in commercial premiums written was 15% higher than in the third quarter of 2020, with increases in all three lines – small commercial, midsize, and global specialty stores. Standard commercial new business premiums rose 17%, Hartford reported.
Hartford reported a combined ratio of 101.2% in the quarter, a decrease of 5.3 points compared to the same period of the previous year.
Hartford's third quarter results in the commercial segment marked a second straight quarter of double-digit sales growth with an 8.1% increase in non-employee compensation in writing, said Doug Elliot, president of Hartford.