Commercial lines buoy Hartford profits

Carrier regains footing after a few quarters in the doldrums

Insurance News

By Allie Sanchez

After a series of disappointing reporting periods, Hartford Financial enjoyed a revival during the third quarter as its commercial lines propelled profitability.

The company reported that core earnings rose by 13% due to encouraging pricing and promising retention trends in its commercial lines business.

With headquarters in Connecticut the company provides commercial and personal insurance. It also has interests in financial products; including property and casualty insurance, group benefits, and mutual funds.

Hartford noted that its personal lines, particularly auto insurance, is facing tough times, but the company is making moves to address market challenges that are hindering growth.

Lower interest rates are bearing down on the insurance industry as carriers continue to see a downtrend in incomes.

In total, Hartford raked in $438 million in profits, reflecting 13% growth over the $381 million earned in the same period last year. Revenues inched up by almost 3% to $4.7 billion.

Core earnings reached $413 million, a 12% increase over last year’s $364 million.

The company has also been on a shopping spree. It acquired Maxum Specialty Insurance Group for $168 million in July. In May, it moved to buy exchange-traded funds operator Lattice Strategies.
 

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