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Press Release: The Hartford Announces Fourth -9-

· 02/04/2021 16:15
------------------- --- --- --- ---- ----- PERSONAL LINES Three Months Twelve Months Ended Ended -------------------- ---------------------- Dec 31 Dec 31 Dec 31 Dec 31 2020 2019 2020 2019 ------------------ ---------- -------- ---------- ---------- Net income $ 170 $ 66 $ 718 $ 318 Adjustments to reconcile net income to underwriting gain Net servicing income (4) (2) (14) (13) Net investment income (47) (45) (157) (179) Net realized capital losses (gains) (7) (7) 5 (43) Other expense -- -- 1 1 Income tax expense (benefit) 42 16 184 76 ------------------ --------- ------- --------- ------- Underwriting gain 154 28 737 160 Adjustments to reconcile underwriting gain to underlying underwriting gain Current accident year catastrophes 13 26 209 140 Prior accident year development (42) (17) (438) (42) ------------------ --------- ------- --------- ------- Underlying underwriting gain $ 125 $ 37 $ 508 $ 258 ------------------ --- ---- --- --- ---- --- PROPERTY & CASUALTY Three Months Twelve Months Ended Ended ------------------- ------------------ Dec 31 Dec 31 Dec 31 Dec 31 2020 2019 2020 2019 ------------------- --------- -------- ------- --------- Net income $ 468 $ 377 $1,406 $1,571 Adjustments to reconcile net income to underwriting gain Net investment income (425) (363) (1,372) (1,392) Net realized capital losses (gains) (54) (52) 66 (334) Net servicing and other expense (income) 3 10 17 24 Loss on reinsurance transaction -- -- -- 91 Income tax expense 99 85 314 358 ------------------- -------- ------- ------ ------ Underwriting gain 91 57 431 318 Adjustments to reconcile underwriting gain to underlying underwriting gain Current accident year catastrophes 55 115 606 463 Prior accident year development 184 (42) (136) (65) Current accident year change in loss reserves upon acquisition of a business -- -- -- 29 ------------------- -------- ------- ------ ------ Underlying underwriting gain $ 330 $ 130 $ 901 $ 745 ------------------- --- --- --- ----- -----

SAFE HARBOR STATEMENT

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks, " "believes," "estimates," "expects," "projects," and similar references to future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations, depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; or in Part I, Item 1A, Risk Factors, in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and those identified from time to time in our other filings with the Securities and Exchange Commission.

Risks relating to the pandemic caused by the spread of the novel strain of coronavirus, specifically identified as the Coronavirus Disease 2019 ("COVID-19") including impacts to the Company's insurance and product-related, regulatory/legal, recessionary and other global economic, capital and liquidity and operational risks;

Risks Relating to Economic, Political and Global Market Conditions: challenges related to the Company's current operating environment, including global political, economic and market conditions, and the effect of financial market disruptions, economic downturns, changes in trade regulation including tariffs and other barriers or other potentially adverse macroeconomic developments on the demand for our products and returns in our investment portfolios; market risks associated with our business, including changes in credit spreads, equity prices, interest rates, inflation rate, foreign currency exchange rates and market volatility; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy; the impacts of changing climate and weather patterns on our businesses, operations and investment portfolio including on claims, demand and pricing of our products, the availability and cost of reinsurance, our modeling data used to evaluate and manage risks of catastrophes and severe weather events, the value of our investment portfolios and credit risk with reinsurers and other counterparties; the risks associated with the discontinuance of the London Inter-Bank Offered Rate ("LIBOR") on the securities we hold or may have issued, other financial instruments and any other assets and liabilities whose value is tied to LIBOR; the impacts associated with the withdrawal of the United Kingdom ("U.K.") from the European Union ("E.U.") on our international operations in the U.K. and E.U.

Insurance Industry and Product-Related Risks: the possibility of unfavorable loss development, including with respect to long-tailed exposures; the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims; the possibility of another pandemic, civil unrest, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the intensity and frequency of storms, hail, wildfires, flooding, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; the possible occurrence of terrorist attacks and the Company's inability to contain its exposure as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; the Company's ability to effectively price its property and casualty policies, including its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal of certain product lines; actions by competitors that may be larger or have greater financial resources than we do; technological changes, including usage-based methods of determining premiums, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing, the Company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues;

Financial Strength, Credit and Counterparty Risks: risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company's financial strength and credit ratings or negative rating actions or downgrades relating to our investments; capital requirements which are subject to many factors, including many that are outside the Company's control, such as National Association of Insurance Commissioners ("NAIC") risk based capital formulas, rating agency capital models, Funds at Lloyd's and Solvency Capital Requirement, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; losses due to nonperformance or defaults by others, including credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; state and international regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;

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February 04, 2021 16:15 ET (21:15 GMT)