The Hartford Posts “Excellent” First Quarter 2024 Results | Insurance business America
“We got off to a strong start”
Insurance News
By Kenneth Araullo
The Hartford has reported significant improvement in its financial performance for the first quarter of 2024. Net income available to common shareholders reached $748 million, or $2.47 per diluted share.
This is an increase from $530 million in the first quarter of 2023. The growth is primarily due to higher P&C insurance profits driven by strong premium growth, an increase in net investment income and a shift from net realized losses in 2023 to net realized losses Profits will be supported in 2024.
Additionally, improvements in the group benefit loss ratio were driven by positive results in group life insurance.
First-quarter core earnings were $709 million, or $2.34 per diluted share, up from $536 million in the same period last year. This growth was driven primarily by pre-tax net investment income of $593 million, 10% growth in P&C premiums earned, and positive prior year net performance of $32 million.
The group benefit claims ratio improved 1.7 points to 73.5, primarily due to better mortality experience in group living and favorable long-term disability claim recoveries.
Catastrophe losses in the P&C segment for the current casualty year were reported at $161 million before taxes, down from $185 million in the first quarter of 2023.
“We got off to a strong start”
As of March 31, The Hartford’s book value per diluted share increased 1.6% to $50.23, primarily due to net income exceeding shareholder dividends, although offset by larger unrealized losses on investments rising interest rates. Excluding AOCI, book value per share increased 2.3% to $60.18.
Return on equity (ROE) for net income available to common shareholders for the 12 months ended March 31, 2024 was 18.5%, an increase of 5.7 points compared to the first quarter of 2023. Likewise, core earnings ROE increased by 2.3 points to 16.6% over the same period.
Hartford Chairman and CEO Christopher Swift said he was pleased with the company’s performance.
“Hartford’s financial results for the first quarter of 2024 were excellent, with trailing 12-month core earnings ROE of 16.6%. The business customer segment continues to generate strong sales growth with highly profitable margins. The retail results show progress in restoring targeted profitability in the motor and group lines. Margins remained solid.”
Chief Financial Officer Beth Costello also highlighted the commercial success, calling it “an exceptional quarter.”
“Excluding workers’ compensation rates increased to 9% in the quarter and continue to be above loss cost trends. Private customers achieved written price increases in the automotive sector of almost 26%. Group Benefits continues to deliver solid results with a core profit margin of 6.1%. We actively manage our capital and have returned $491 million through buybacks and dividends,” Costello said.
“We’re off to a good start in 2024,” Swift said. “The first quarter results reflect the consistency of our performance and the stability of our margins, which gives me great confidence in our ability to grow our business and create value for shareholders with an industry-leading ROE.”
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2024-04-26 15:17:06
www.insurancebusinessmag.com
