US property and casualty insurer The Hartford has reported a Q2 2021 net income of $900 million, an increase of 94% from $463 million in Q2 2020.
Its combined ratio in the second quarter came in at 88.9%, with an underlying combined ratio of 89.4%, a 13.5 point improvement from 102.9%.
The insurer also saw an increase in net investment income at $581 million from $339 million in the same prior year period.
This increase was primarily driven by a change from $71 million of losses on limited partnerships and alternative investments in Q2 2020 to $191 million of income on LPs in second quarter 2021 due to higher valuations and sales of underlying investments within private equity funds
Meanwhile, commercial lines written premiums of $2.5 billion were 15% higher than second quarter 2020 with increases in all three businesses. The standard commercial new business grew by 46%.
Chairman and CEO Christopher Swift commented: “Our performance was outstanding with all businesses and investment returns contributing to very strong second quarter results that generated a 13.1 percent core earnings ROE.
“As we continue to execute with confidence and precision, our product breadth, underwriting capabilities, and customer experience will differentiate the competitive advantages we bring to the market.
“All the components of our strategy have come together as we deliver on growth, underwriting margin expansion and operating efficiencies to generate industry leading returns and enhance value for all stakeholders”.
The Hartford’s President Doug Elliot said, “Property and Casualty had simply a superb quarter, with robust top line growth, especially new business sales, and excellent underwriting results. New business was terrific across Commercial Lines.
“Continued underwriting discipline combined with consistent pricing and risk selection contributed to a superior underlying combined ratio of 89.2 percent.
“In Personal Lines, the launch of Prevail, our new home and auto product, provides optimism that this cloud based, contemporary design will meaningfully impact written premium levels and margins. We have never been stronger and I’m confident in our future success”.