Hartford profit rises 35% in second quarter

Hartford Financial Services Group Inc. on Thursday reported second-quarter net income of $733 million, up 35% from the same period last year.

“These results reflect the effectiveness of our strategy and continued investments,” Chairman and CEO Christopher Swift said Friday during an earnings call. “We remain focused on disciplined underwriting and price execution, expanding product and distribution breadth, developing exceptional talent and delivering a superior customer experience.”

Commercial Lines’ core profit of $551 million was up 12% from the same period last year. The results included reserve reductions in workers’ compensation, catastrophe and bonds, partially offset by reserve increases in general liability, reinsurance assumed and auto liability, the insurer said in its earnings statement released after markets closed Thursday.

Premiums for non-life and accident insurance rose by 12%, mainly due to premium growth in business and private insurance of 11% and 14% respectively.

The combined ratio for commercial insurance was 89.8% in the second quarter, an improvement from 91.2% in the same period a year earlier.

Catastrophe losses of $155 million, before taxes, in the second quarter of the current accident year came primarily from tornadoes, wind and hail events in various regions of the United States, but concentrated in the South and Midwest. That compares with catastrophe losses of $123 million in the same period last year.

Beth Costello, Hartford’s chief financial officer, noted that the insurer’s continued share buyback activity has contributed to its stability. The company’s board of directors on Thursday approved a new $3.3 billion share buyback authorization.