Profits at The Hartford Financial Services Group surged 94% in the second quarter as the company continued a cost-cutting effort and benefited from higher investment income and new business.
For the April-June period, the property-casualty insurer posted net income of $900 million, or $2.51 per diluted share. That’s 94% higher than the same period last year, when The Hartford reported profits of $468 million, or $1.29 a diluted share.
The company attributed its expanding profit margins partially to a cost reduction plan dubbed “Hartford Next.” The cost-cutting initiative aimed at saving $500 million annually by 2022 — to be achieved, in part, through layoffs — saved The Hartford $195 million between January and June of this year, compared to the same period in 2019, according to the company.
“We continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023,” Chairman and CEO Christopher Swift said.
Doug Elliot, president of The Hartford, said new business across commercial lines and the launch of a new home and auto insurance product, Prevail, helped bolster earnings in 2021’s second quarter.
“All the components of our strategy have come together as we deliver on growth, underwriting margin expansion and operating efficiencies to generate industry leading returns and enhance value for all stakeholders,” Swift said.
