The Hartford reported a significant drop in net income for the first quarter of 2025, falling 16% to $630 million. This decline was largely attributed to heavy losses from the California wildfires that occurred earlier this year.
In terms of property and casualty insurance, the company faced catastrophe losses totaling $467 million before taxes. Out of this, $325 million was directly linked to the wildfires in California.
The combined ratio, which measures the profitability of insurance companies, rose by 4.1 points compared to the same quarter last year, reaching 96.9. For context, the combined ratios for commercial and personal lines in the previous quarter were 94.4 and 106.1, respectively. The personal lines segment was particularly affected, showing a 14.4-point increase in catastrophe losses.
Despite these challenges, The Hartford saw a 9% increase in net written premiums during the first three months of 2025. Business insurance, which accounts for about 55% of the company’s portfolio, reported a 10% rise in premiums, totaling around $3.7 billion. However, the underwriting profit for this segment dropped 38% to $187 million.
In personal insurance, premiums grew by 8% to $913 million, with auto renewals increasing by 15.8% and homeowners by 12.3%. Still, this segment faced an underwriting loss of $55 million, compared to a smaller loss of $13 million in the same quarter last year.
The financial impact of natural disasters, particularly the recent wildfires in California, has clearly weighed on The Hartford’s performance. As the company navigates these challenges, the focus will likely be on improving underwriting results and managing risks associated with catastrophic events.