The Hartford sees 2019 as ‘pivotal year’ as FY results show rise in net income
For US-based insurer The Hartford, 2019 was “a pivotal year strategically”, according to its chairman and CEO Christopher Swift, with the firm reporting a net income increase of 15 percent in its full year results.
Full year 2019 net income available to common stockholders totalled $2.064 billion, up 15 percent from $1.801 billion in 2018. The insurer said the net income result was primarily due to an increase in income from continuing operations, although it was partially offset by a reduction in income from discontinued operations due to the sale in May 2018 of the life and annuity business.
Full year 2019 core earnings had also increased, rising 31 percent to $2.062 billion from $1.575 billion in 2018.
However, for commercial lines, the combined ratio worsened to 97.7 percent from 92.6 percent in 2018. Net income fell 2 percent to $1.19 billion in 2019 compared to $1.21 billion in 2018. While written premiums were $8.45 billion, up 18 percent from $7.13 billion in 2018.
The combined ratio for personal lines improved to 95 percent from 106.3 percent for the year before. Net income was $318 million in 2019, an improvement from a loss of $32 million in 2018. But written premiums were $3.13 billion in 2019, down 4 percent from $3.27 billion in the previous year.
For group benefits, net income was $536 million, up 58 percent from $340 million in 2018.
Swift said: “2019 was a pivotal year strategically for The Hartford as we positioned the company with enhanced capabilities to strengthen our competitive advantages in a dynamic market environment.
"Group benefits results were exceptional with continued margin improvement reflecting favourable incidence in group disability. Property & casualty underwriting income improved 36 percent and the investment portfolio continued to perform well with strong partnership returns. We generated an annualised core earnings return on equity of 13.6 percent, an impressive result in the current market environment."
Doug Elliot, president at The Hartford, added: "2019 was a very good year for our P&C businesses. Small commercial continues to deliver industry leading financial results, products and capabilities. In middle and large commercial we are maintaining positive traction across our industry verticals and in global specialty product breadth and underwriting expertise is deepening our relationships with distribution partners and customers. Personal lines delivered excellent earnings in 2019 and new business continues to grow. I am very encouraged by the pricing momentum in both our middle and large commercial lines and global specialty markets. We are well positioned to deliver profitable growth in the improving pricing market."
Swift said: "Entering 2020, we remain focused on execution and integration of our recent acquisitions. The combination of continued investments to further enhance the capabilities of our platform, consistent financial performance and ongoing capital management will create value for the benefit of all stakeholders."
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