The Hartford’s profits hike
The Hartford has posted a strong set of results in the third quarter of 2014 as its profits hiked 32 percent.
Its profits hit $388 million in the third quarter of 2014, compared with $293 million in the third quarter of 2013.
The insurer’s core earnings increased 15 percent to $477 million for the third quarter of 2014, compared with $416 million in the same period of the prior year. The increase was primarily driven by improved property and casualty (P&C) underwriting results and higher income from limited partnerships and other alternative investments (LPs).
Its P&C earnings grew 34 percent to $353 million in the quarter, compared with $263 million in last year’s third quarter. Its P&C combined ratio improved to 91.4 percent in the quarter, compared with 96.2 percent in the third quarter of 2014.
“The Hartford delivered outstanding results this quarter, with core earnings from P&C, group benefits and mutual funds up 30 percent year-over-year and a core earnings return on equity of 8.2 percent over the past 12 months," said The Hartford's chief executive officer Christopher Swift.
"Our focus on driving profitable growth through execution and investments in new capabilities is producing positive results. In the third quarter, we delivered margin expansion across the business lines and top-line growth in P&C. Looking ahead, our primary objectives are to drive return on equity improvement and growth in book value per share to achieve top-quartile shareholder returns."
Doug Elliot, The Hartford's president, added: "Our P&C and group benefits businesses produced strong underlying results this quarter, continuing our track record of strengthening fundamentals from pricing, underwriting and product initiatives over the past several years.
“In P&C, our combined ratio was 91.4 percent, a 4.8 point improvement from last year, reflecting a 2.6 point improvement in current accident year results excluding catastrophes, as well as favourable prior year development and light catastrophes.
“In addition, written premiums for small commercial and middle market grew 5 percent in total due to strong retention and new business production. Group benefits earnings also increased, with an after-tax core margin of 4.5 percent driven by improved group life and disability results.”
