The Hartford has announced its preliminary earnings estimates for Q1 2023, including net income available to common stockholders of $530 million, and P&C current accident year (CAY) catastrophe losses of $185 million.
Of the total CAY CAT losses, $138 million are estimated in Commercial Lines, while $47 million are in Personal Lines.
The Hartford attributes these losses to severe winter storms on the East and West coasts, as well as tornadoes, windstorms, and hail events in various regions of the United States.
The firm anticipates a Commercial Lines combined ratio of 92.7 and an underlying combined ratio of 88.5.
Meanwhile, The Hartford expects a Personal Lines combined ratio of 106.1 and an underlying combined ratio of 97.0, which includes approximately $30 million, before tax, of higher than expected CAY losses from auto physical damage and liability losses primarily resulting from increased severity.
Also included in the combined ratio is approximately $20 million, before tax, of unfavourable prior accident year reserve development from auto physical damage severity.
The Hartford reported an expected consolidated net investment income of $515 million, before tax, including $26 million, or a 2.5% annualized return, on limited partnerships and other alternative investments.
Share repurchases in the quarter are anticipated to be 4.7 million shares for $350 million, while the core earnings forecast stands at $536 million.
The Hartford disclosed that it will release full Q1 2023 financial results on April 27, 2023.
