The Hartford Q3 results boosted by tax changes and improved performance
Changes in US corporation tax as well as an improved performance in number of lines of business including commercial lines and personal lines boosted third quarter results at The Hartford in 2018.
The insurer made a net profit of $427 million in the quarter compared with $145 million in third quarter 2017. It said the improvement was due to higher commercial lines, personal lines, group benefits and mutual funds income, including the benefit of a lower US corporate tax rate, and a lower corporate core loss.
Its combined ratio for the period was 96.1 percent, a big improvement on the 108.6 it posted a year earlier when it was hit by natural catastrophe losses.
Its total revenues for the period reached $4.84 billion, solid growth on the $4.2 billion in the same period a year earlier.
“Third quarter financial results were excellent, with increased earnings in P&C, Group Benefits and Mutual Funds, including higher net investment income,” said Christopher Swift, the insurer’s CEO. “Core earnings increased to $418 million, and book value per diluted share, excluding AOCI, is up 11 percent in 2018. Year-to-date, our net income and core earnings return on equity were 16.4 percent and 12.7 percent annualized, reflecting strong operating results, the benefit of the sale of Talcott, and the lower U.S. corporate tax rate.”
Swift continued, “We're excited about the Navigators acquisition, which we announced in August, and its potential to accelerate our growth strategies in Middle Market and Specialty Commercial. Looking forward, we see continued opportunities to build on the momentum created in 2018. With an expanded talent base, broader product breadth and improved capabilities, we are well-positioned for the future.”
The Hartford’s president Doug Elliot said: “Combined property and casualty underwriting results were strong, reflecting lower catastrophes, favorable prior year development and continued progress in Personal Lines. Catastrophe losses from 19 distinct events were above our budget for the quarter, but down significantly from last year which included losses from three hurricanes.
“Commercial Lines results remain strong, with exceptional results in Small Commercial, where the combined ratio improved to 87.6. Group Benefits earnings were again excellent, driven both by strong margins and the contribution from our 2017 acquisition, and the integration continues to go well. We’re very pleased with our sales and persistency results for the year, as well as with the excellent teamwork and focus of the combined organizations.”
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