The Hartford has announced its third quarter financial results, revealing a 10% increase in its quarterly common dividend per share, as well as top-line and core-earnings growth that offset the impact of global economic challenges and Hurricane Ian, according to chairman and CEO Christopher Swift.
The group reported a net income available to common stakeholders of $333 million for the third quarter, down from the $476 million reported during the same 2021 period. Despite this 30% decrease, Q3 core earnings were at $471 million, up 7% from the $442 million reported in the same period last year.
Net income ROE for the trailing 12 months was 12.8%, while core earnings ROE for the same period was 14.3%. There was also a 9% increase in property & casualty (P&C) premiums, driven by a 10% growth in commercial lines.
Commercial lines had a 3Q combined ratio of 9.43 and an underlying combined ratio of 89.3. The net income margin for group benefits was 5.4%, while the core earnings margin was 7.2%
“Through nine months, our financial performance demonstrates the strength of our broad product portfolio and underwriting execution,” said Hartford president Doug Elliot. “In the quarter, commercial lines top-line growth of 10% included strong small commercial new business and steady retention across each market.
“Commercial lines pricing was consistent with second quarter and ahead of loss trends across most product lines. In personal lines, pricing actions continue to accelerate as we respond to inflationary pressures. Across property and casualty, we remain well positioned to sustain strong performance and effectively compete in the marketplace.”
P&C current accident year catastrophe losses in the third quarter totalled $293 million, before tax, including $214 million from Hurricane Ian.
The group also returned $476 million to stockholders in the third quarter, including $350 million of shares repurchased and $126 million in common stockholder dividends paid. Quarterly common dividend per share increased by 10%, to $0.425, payable January 4, 2023.
“Our focus remains on underwriting excellence that optimizes earnings and returns,” said Swift. “In the first nine months of the year, we returned $1.6 billion of capital to shareholders and are pleased to announce a 10% increase in our common dividend. We are generating consistent sustainable industry leading returns and delivering on our financial objectives.”
