The Hartford’s fourth-quarter profit jumps on stronger underwriting

Jan 29 (Reuters) – Property and casualty insurance firm The Hartford reported a 33% jump in fourth-quarter core profit on Thursday, driven by stronger underwriting performance.

Shares of the Hartford, Connecticut-based company rose about 1% in extended trading.

Insurance spending held up in 2025 as individuals and businesses sought coverage to safeguard against risks such as natural disasters.

Property & casualty written premiums at Hartford saw a year-over-year rise of 5% in the quarter, driven by growth in business insurance premiums.

Written premiums at business insurance, which accounts for more than 50% of Hartford’s revenue, were $3.38 billion in the quarter, 7% higher than a year earlier.

The segment’s combined ratio was 83.6% in the quarter, compared with 87.4% in the previous corresponding period. A ratio below 100% indicates an insurer earned more in premiums than it paid out in claims.

Hartford’s journey began in 1810 as a fire insurance company and has since grown into one of the biggest property and casualty insurers in the United States.

Analysts believe Hartford is undervalued compared to its peers, likely due to the size of its personal lines segment and the overall mix of the business.

Core earnings were $1.15 billion, or $4.06 per share, in the three months ended December 31, compared with $865 million, or $2.94 per share, in the fourth quarter of 2024.

Meanwhile, consolidated net investment income rose 17% to $832 million in the quarter, driven by higher income from limited partnerships, a higher level of invested assets, and reinvesting at higher interest rates.

Hartford stock jumped roughly 26% in 2025, outperforming the benchmark S&P 500 index.

(Reporting by Arasu Kannagi Basil and Pragyan Kalita in Bengaluru; Editing by Alan Barona)