US property and casualty insurer, The Hartford, has reported an 80% increase in net income for the first quarter of 2022, ending the period at $440 million.
The result was mainly due to a reversal in its underwriting performance, which moved by $435 million from an underwriting loss of $216 million in Q1 2021 to a gain of $242 million in Q1 of this year.
The Hartford’s performance was also helped by a decrease in excess mortality in group life, but was partially offset by a $225 million change to net realized losses.
Core earnings accordingly rose by 176% to $561 million, with the company attributing the increase to factors including favorable P&C prior accident year development (PYD) within core earnings of $36 million, compared with $223 million of unfavorable PYD in first quarter 2021.
It also cited a reduction in P&C current accident year (CAY) catastrophe losses, net of reinsurance, to $98 million, before tax, in Q1 2022, including $27 million from the Ukraine conflict, compared with $214 million in first quarter 2021.
Other factors included an increase in earnings generated by 8% growth in P&C earned premium and 5% increase in Group Benefits fully insured ongoing premium, and a reduction in P&C CAY COVID-19 incurred losses with no losses in first quarter 2022 compared with $24 million of losses last year.
“The Hartford is off to a strong start in 2022 delivering a trailing 12-month core earnings ROE of 14.8%. Results were driven by another quarter of profitable growth and expanding margins in Commercial Lines, excellent partnership returns, and lower excess mortality in Group Benefits,” said Chairman and CEO Christopher Swift.
President Doug Elliot also commented: “During the first quarter, our Property & Casualty business sustained the momentum built during 2021. Commercial underwriting results were outstanding with expanding margin contributions from each business. Commercial pricing moderated from the fourth quarter but is still exceeding loss trends across most product lines.
“In Personal Lines, we are pleased with the performance and a combined ratio of 90.4. Prevail is contributing to new business growth and rate filings will address inflation and supply chain pressures in both auto and homeowners,” Elliott continued.
“Our Property & Casualty first quarter results were strong, and we are well positioned for continued profitable growth.”
