Hartford Financial Services Group Inc. posted higher first-quarter net income on commercial lines gains and elevated investment income.
First-quarter net income available to common stockholders rose to $748 million from $530 million a year ago. Written premiums rose to $3.36 billion from $3.11 billion. The combined ratio improved to 90.1 from 92.7.
Net investment income before tax rose to $593 million from $515 million on higher yields in the fixed income portfolio and a higher level of invested assets.
“The Hartford’s first quarter 2024 financial results were excellent with a trailing 12-month core earnings (return on equity) of 16.6%,” Christopher Swift, chairman and chief executive officer, said in a statement. “Commercial lines continues to generate strong top-line growth at highly profitable margins. Personal lines results demonstrate progress towards restoring target profitability in auto and group benefits margins remained solid.”
“Commercial lines had an exceptional quarter with an underlying combined ratio of 88.4,” said Chief Financial Officer Beth Costello. “Pricing, excluding workers’ compensation, accelerated to 9% in the quarter and remains above loss cost trends. Personal lines achieved written price increases in auto of nearly 26%. Group benefits continues to deliver solid results with a core earnings margin of 6.1%. We are actively managing our capital and returned $491 million through repurchases and dividends.”
Hartford earlier said it will stop writing new homeowners policies in California on Feb. 1 after reconsidering the viability of the market.
The decision was based on unique challenges in the state’s homeowners environment and a company trend analysis, spokeswoman Suzanne Barlyn said at the time.
“We do not enter into this decision lightly, and we appreciate and support efforts like Commissioner Ricardo Lara’s Sustainability Insurance Strategy to help bring stability to the market. We will be watching those efforts closely,” said Barlyn.
Underwriting entities of Hartford Financial Services Group Inc. have current Best’s Financial Strength Ratings of A+ (Superior).