Property and casualty insurer The Hartford said a lower U.S. corporate tax rate helped it reverse a fourth-quarter loss from a year earlier despite soaring catastrophe costs.
For the quarter ended Dec. 31, The Hartford on Monday afternoon reported net income of $196 million, or 52 cents a diluted share, up from a loss of $558 million, or a loss of $1.56 diluted share, in the fourth quarter of 2017, which was driven by an $877 million charge due to federal tax reform.
The insurance and financial services company said its “strong” quarter was slowed by pre-tax catastrophe losses of $361 million, which more than doubled vs. $179 million recorded in the year-ago period.
Net sales rose to $4.63 billion during the quarter.
For the year, the insurer posted profits of $1.8 billion, or $4.95 a diluted share, up from a loss of $3.1 billion, or a loss of $8.56 a diluted share, in 2017. It recorded net income of $1.7 billion in 2015 and $896 million in 2016.
On Monday, The Hartford unveiled a new operations structure that will take effect after completing its $2.1 billion acquisition of Stamford global specialty underwriter The Navigators Group Inc.
Under the new model, The Hartford will integrate Navigators’ operations and its specialty commercial and middle market businesses into global specialty and middle and larger commercial segments.
The deal, subject to regulatory approvals, is expected to be completed by late March or April, the company said.
