Hartford, CT – The Hartford (NYSE: HIG) recently reported second quarter 2018 income from continuing operations, after tax, of $434 million compared with a loss from continuing operations of $152 million in second quarter 2017, which included a $488 million, after tax, pension settlement charge. Excluding the impact of this charge, second quarter 2018 income from continuing operations rose $98 million over second quarter 2017 due to higher Commercial Lines, Group Benefits and Mutual Funds income before income taxes and the benefit of the lower U.S. corporate tax rate. Income from continuing operations, after tax, per diluted share was $1.19 compared with a loss from continuing operations, after tax, per diluted share of $0.42 in second quarter 2017.
Core earnings of $412 million, or $1.13 per diluted share*, in second quarter 2018 increased 36% from $303 million, or $0.81 per diluted share, in second quarter 2017 driven by the Commercial Lines, Group Benefits and Mutual Funds segments. In addition to the benefit of a lower U.S. corporate tax rate compared with second quarter 2017, the improvement in core earnings was due to Commercial Lines underwriting results, including favorable PYD, higher Group Benefits core earnings due to the contribution from the fourth quarter 2017 acquisition and favorable disability results, and higher Mutual Funds assets under management.
“Consistent execution and sharp focus on achieving our strategic and financial goals led to another strong quarter for The Hartford,” said The Hartford’s Chairman and CEO Christopher Swift. “Higher income before income taxes from Commercial Lines, Group Benefits and Mutual Funds, as well as the benefit of a lower U.S. corporate tax rate, drove core earnings per diluted share of $1.13 up 40% from last year, while book value per diluted share, excluding AOCI, rose 8% since Dec. 31, 2017. Looking across all the businesses, I am very pleased with our financial performance and our progress on strategic product, distribution and technology initiatives, and the Group Benefits integration that continues to go very well and remains on schedule. Supported by our improved financial flexibility and financial results, we announced a 20% increase in our common dividend last week.”
The Hartford’s President Doug Elliot said, “P&C and Group Benefits results reflect our disciplined approach to pricing and underwriting in markets that remain competitive. I’m pleased with our pricing progress across Commercial Lines, with a 70 basis point sequential quarter increase in renewal written pricing. While catastrophe losses were higher this quarter than a year ago, P&C net income increased 27% over second quarter 2017, including improved underlying margins in both Commercial Lines and Personal Lines. Group Benefits net income grew 39%, including the benefit of the acquisition, higher sales and strong persistency, as well as lower loss and expense ratios and tax rates.”
The complete results release is available here: The Hartford Second Quarter 2018 Results
Source: The Hartford