Net income at The Hartford increased 41% to about $1.1 billion in the third quarter 2025.
Q2 property/casualty written premiums increased 7% compared to Q3 2024, led by growth of 9% in the business insurance segment.
Helped by lower catastrophe losses—$70 million versus $247 million a year ago—The Hartford’s personal insurance and business insurance segments turned in nearly identical combined ratios of 88.7 and 88.8, respectively.
The Hartford’s business insurance segment contributed $710 million in net income during Q3, up 34% from the same period in 2024.Underwriting profit increased 57% to $397 million. Net favorable reserve development for the segment, primarily from reserve reductions in workers’ compensation, was $52 million pretax, compared to $10 million for Q3 2024.
In personal lines, Q3 net income was $139 million—far more than $31 million recorded a year ago. The segment reversed a $22 million Q3 underwriting loss in 2024 to book a profit of $107 this year during Q3. Earned premium was up 7% on double-digit earned pricing increases, The Hartford said. Catastrophe losses before tax were $31 million, or about a third of the total during Q3 2024.
The combined ratio for personal auto improved 13.2 to a profitable 92.5. The underlying combined ratio was 97.9, an improvement of 3.6 points, “primarily due to improvement in the underlying loss and loss adjustment expense ratio, driven by the impact of earned pricing increases outpacing loss cost trends,” the insurer said.
Renewal price increases during Q3 were 11.3% in auto and 12.6% in homeowners, where the combined ratio improved to 81.2 from 94.7 a year ago.
Christopher Graham, senior industry analyst, Industry Research and Analytics, AM Best, noted that workers’ compensation underwriting profits over the past decade have been largely attributable to favorable prior-year loss development. “While the reserve cushion appears to be shrinking, it is expected to provide benefits to calendar-year profitability in the medium term,” Graham added.
California remains the state with the largest share of national workers’ compensation premium, with more than 20% of direct premium written in the country, and twice as much as any other state. The top 10 states represent more than 60% of the national premium. According to AM Best, as good as the overall results were in 2024, in six of these top 10 states, results were even better: the statewide combined ratio was better than the national combined ratio.
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