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Hartford Q1 Income Up 41% on Commercial Lines as Auto Results Improve



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The Hartford CEO Christopher Swift told analysts late last week that the insurer’s first quarter results included “progress toward restoring targeted profitability in auto” as it turned in an improved combined ratio for the quarter of 103.9 in the line of business.

Last year Hartford recorded a combined ratio in auto of 110.6 .


“Auto renewal written price increases of nearly 26% have likely peaked given our view of moderating loss trends for the remainder of the year,” Swift told analysts.

“As we think about the full year in 2024, we still see auto getting about 20 points of rate, plus or minus,” Swift continued. “I would say we’re beginning to see moderation both in our auto loss cost trends on a [bodily injury] and [physical damage] basis.”


Swift said the Hartford, Connecticut-based insurer feels it is rate adequate for auto in 80% of states. Some states, he said without naming them, will be “laggards for a while.”

Chief Financial Officer Beth Costello also pointed out that The Hartford’s personal lines business recorded $7 million in pretax favorable prior year development in the first quarter compared to $20 million in unfavorable development a year ago. The net favorable development was driven by a reserve reduction in auto PD.


In response to loss trends, Hartford also took 15.2% rate increases at renewal for homeowners insurance. Here, the first quarter combined ratio improved to 96.2 from 96.8 a year ago.

The Hartford’s personal lines business recorded Q1 net income of $34 million compared to a loss of $1 million in 2023. The insurer booked an underwriting loss of $13 million in personal lines for Q1, narrowing a loss of $45 million in Q1 2023. The combined ratio was 101.6—down from 106.1 last year. The first quarter included $52 million in catastrophe losses from primarily tornado, wind, and hail events in the Midwest and South.


Consolidated Q1 net income was up 41% to $748 million. Results were driven by commercial-lines performance. Here, Q1 net income was $563 million, up 36% compared to a year ago. Commercial lines recorded an underwriting gain of $301 million compared to $202 million in Q1 2023, and the combined ratio improved 2.6 points to 90.1.

Profit Loss
Commercial Lines
Business Insurance


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