Hartford, CT – The Hartford (NYSE: HIG) reported first quarter 2018 income from continuing operations, after tax, of $428 million compared with $303 million in first quarter 2017. The $125 million increase was due to higher Commercial Lines and Personal Lines P&C underwriting results, including lower catastrophe losses and favorable PYD, and increased consolidated net investment income, partially offset by a net realized capital loss compared with a net realized capital gain in first quarter 2017. In addition, income tax expense declined despite an increase in income from continuing operations before income taxes due to the reduction in the U.S. corporate tax rate, which took effect on Jan. 1, 2018. Income from continuing operations, after tax, per diluted share was $1.18 compared with $0.80 in first quarter 2017.
First quarter 2018 core earnings, which do not include income from discontinued operations, net realized capital gains (losses) or acquisition integration expenses, but do include amortization of intangible assets related to the Group Benefits acquisition, were $461 million compared with $288 million in first quarter 2017. The $173 million increase was driven by core earnings growth in Commercial Lines, Personal Lines, Group Benefits and Mutual Funds, the company’s major business segments. Core earnings per diluted share* of $1.27 compared with $0.76 in first quarter 2017.
“First quarter financial results were excellent, achieving higher earnings and top line growth,” said The Hartford’s Chairman and CEO Christopher Swift. “Solid underwriting and investment performance drove higher pre-tax income in each of our major business segments, while lower corporate income tax rates also contributed. We continue to invest across the company to build market-differentiating capabilities, broaden product offerings and become more efficient. All of these initiatives will help us serve our customers better, support profitable growth and create long-term value for shareholders. Lastly, we are pleased with the progress of the Group Benefits acquisition integration and the Talcott Resolution sale, which we expect to close by June 30, 2018.”
The Hartford’s President Doug Elliot said, “P&C results were very strong this quarter, with improved underlying margins and lower catastrophe losses versus last year. Commercial Lines achieved top line growth with excellent margins, despite facing competitive market conditions and renewal written pricing pressure. Personal Lines auto margins continued to improve in line with our outlook. And Group Benefits produced outstanding margins and new business growth, consistent with our expectations for the combined book. Our integration plan for the group life and disability business is on track. We are creating a truly differentiated capability for this marketplace.”
The complete results release is available here: The Hartford First Quarter 2018 Results
Source: The Hartford