The Hartford has reported a substantial improvement in its financial performance for the first quarter of 2024, with net income available to common stockholders reaching $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 attributed to higher P&C underwriting gains, bolstered by strong premium growth, an increase in net investment income, and a shift from net realized losses in 2023 to net realized gains in 2024.
Additionally, improvements in the group benefits loss ratio were driven by positive outcomes 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. Key contributors to this growth included a net investment income of $593 million, before tax, a 10% growth in P&C earned premiums, and net favorable prior accident year development of $32 million.
The group benefits loss ratio saw an improvement of 1.7 points to 73.5, primarily due to better mortality experience in group life and favorable long-term disability claim recoveries.
Catastrophe losses in the P&C segment for the current accident year were reported at $161 million before tax, a decrease from $185 million in the first quarter of 2023.
As of March 31, The Hartford’s book value per diluted share increased by 1.6% to $50.23, largely driven by net income exceeding stockholder dividends, although offset by greater unrealized losses on investments due to rising interest rates. Excluding AOCI, the book value per share rose by 2.3% to $60.18.
The return on equity (ROE) for net income available to common stockholders for the 12 months ending March 31, 2024, was 18.5%, marking a 5.7-point increase from the first quarter of 2023. Similarly, core earnings ROE increased by 2.3 points to 16.6% over the same period.
The Hartford’s chairman and CEO, Christopher Swift, expressed satisfaction with the company's performance.
“The Hartford’s first quarter 2024 financial results were excellent with a trailing 12-month core earnings ROE of 16.6%. Commercial lines continues to generate strong top-line growth at highly profitable margins. Personal lines results demonstrate progress towards restoring target profitability in auto and group benefits margins remained solid.”
Chief financial officer Beth Costello also highlighted the success in commercial lines, noting “an exceptional quarter.”
“Pricing, excluding workers’ compensation, accelerated to 9% in the quarter and remains above loss cost trends. Personal lines achieved written price increases in auto of nearly 26%. Group benefits continues to deliver solid results with a core earnings margin of 6.1%. We are actively managing our capital and returned $491 million through repurchases and dividends,” Costello said.
“We are off to a strong start in 2024,” Swift said. “First quarter results reflect the consistency of our performance and stability of our margins, which give me great confidence in our ability to grow our franchise and deliver enhanced value for shareholders with an industry-leading ROE.”
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