Net Income Up 17% at The Hartford in Q1

Monday, May 1, 2017 | 0

The Hartford has reported net income of $378 million for the first quarter of the year, a 17% increase from $323 million in the first quarter of 2016.

Net income for commercial lines was up 3% in the quarter, to $231 million.

But the commercial lines combined ratio of 96.0 was a 4.9-point increase from the first quarter of 2016. The increase included a 2.1-point unfavorable change in net prior accident year development and a 1.5-point increase in catastrophe losses, the company said in a news release.

In a conference call with investors, President Doug Elliot said prior-year development for the quarter was favorable for workers’ compensation, “where our loss trends remain excellent,” according to a transcript from SeekingAlpha.

In the middle market portion of commercial lines, where competition has been significant, renewal pricing turned positive from flat in the fourth quarter 2016, Elliot said.

“I’m encouraged by our disciplined pricing actions, particularly in workers’ compensation,” Elliot said.

The Hartford’s net investment income was up 5% for the quarter, to $728 million, mainly due to higher income from limited partnerships and other alternative investments.