Two weeks before its officially set to announce earnings, The Hartford previewed first-quarter net income and underwriting results, revealing that net income will grow to $530 million, in spite of booking $185 million in catastrophe losses.
The net income figure compares to $440 million reported for last year’s first quarter.
According to The Hartford, its commercial lines combined ratio will be about 92.7, consistent with the expectations for the first quarter included in the outlook the company provided in February.
For personal lines, in contrast, the expected combined ratio is 106.1, including $30 million of higher-than-expected of losses from auto physical damage and liability losses (pretax) for the current accident year, primarily resulting from increased severity. The elevated combined ratio also includes roughly is approximately $20 million, before tax, of unfavorable prior accident year reserve development from auto physical damage severity.
Of the $185 million of catastrophe losses, $138 million are estimated to come from commercial lines policies, while $47 million relate to personal lines.
Consolidated net investment income is $515 million, before tax, including $26 million, or a 2.5% annualized return, on limited partnerships and other alternative investments.
Source: The Hartford
Topics Profit Loss
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