The Hartford raised its quarterly dividend 12% as third-quarter net income climbed to $1.317 billion, even as higher catastrophe losses weighed on its core earnings.
The insurer reported net income available to common stockholders of $4.82 a diluted share, up from $3.77 a year earlier. Core earnings, a non-GAAP measure that excludes specified items, fell 6% to $956 million, or $3.50 a share, from $1.022 billion, or $3.59 a share.
The gap reflects in part a $497 million pretax gain from commuting an asbestos and environmental adverse-development cover, which the company excluded from core earnings, according to its results released Monday.
Business insurance premiums grow
Property and casualty written premiums increased 4%, led by 6% growth in Business Insurance. Small Business and Global Specialty each posted 7% written-premium growth, while Middle & Large Business increased 3%.
Business Insurance’s combined ratio rose to 91.3 from 88.8, while its underlying combined ratio increased to 90.1 from 89.4.
Current-accident-year catastrophe losses across property and casualty were $198 million before tax, compared with $70 million a year earlier, primarily from tornado, wind and hail events. Net investment income increased to $850 million from $755 million.
Dividend rises to 67 cents
The Hartford increased its quarterly common dividend to 67 cents a share, payable January 5, 2027, to shareholders of record at the close of business on December 1, 2026.
The company returned $638 million to stockholders during the quarter, comprising $475 million in share repurchases and $163 million in common dividends.
Employee Benefits posted fully insured ongoing premium growth of 4%. Its core earnings margin was 6.4%, while its net income margin was 7.0%.
JBizNews Desk | Hartford, Connecticut
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