Financial Results
The Hartford sees 16% dip in Q1'25 net income due to wildfire losses - Reinsurance News
The Hartford (NYSE: HIG) today announced financial results for the first quarter ended March 31, 2025.
“The Hartford is off to a strong start in 2025, delivering a trailing 12-month core earnings ROE of 16.2 percent,” said The Hartford’s Chairman and CEO Christopher Swift. “Disciplined underwriting and pricing execution, exceptional talent, and innovative customer-centric solutions continue to drive our performance in a dynamic market environment that included elevated industry-wide catastrophe losses.”
The Hartford's Chief Financial Officer Beth Costello said, “Business Insurance had a strong quarter with top-line growth of 10 percent and an underlying combined ratio of 88.4. Excluding workers’ compensation, pricing grew to 9.9 percent. Personal Insurance achieved 6.4 points of underlying combined ratio improvement. Employee Benefits continued to outperform with a core earnings margin of 7.6 percent. Solid investment performance benefited from attractive new money yields and a diversified portfolio of assets."
First quarter 2025 net income available to common stockholders of $625 million ($2.15 per diluted share) decreased 16% from $748 million ($2.47 per diluted share) over the same period in 2024. Core earnings of $639 million ($2.20 core earnings per diluted share) decreased 10% from $709 million ($2.34 core earnings per diluted share) over the same period in 2024.
- Net income ROE for the trailing 12 months of 18.8% and core earnings ROE* of 16.2%.
- Property & Casualty (P&C) written premiums increased by 9% in the first quarter of 2025, driven by Business Insurance and -- Personal Insurance premium growth of 10% and 8%, respectively.
- Business Insurance first quarter 2025 combined ratio of 94.4 and an underlying combined ratio* of 88.4, consistent with the 2024 period.
- Personal Insurance first quarter 2025 combined ratio of 106.1 and an underlying combined ratio* of 89.7, an improvement of 6.4 points compared with the 2024 period.
- Employee Benefits first quarter net income margin of 7.4% and a core earnings margin* of 7.6%, an improvement from 6.1% in the 2024 period.
- P&C current accident year (CAY) catastrophe (CAT) losses in first quarter 2025 of $467 million, before tax, including losses related to the January 2025 California Wildfire Event of $325 million, net of reinsurance.
Returned $550 million to stockholders in the first quarter, including $400 million of shares repurchased and $150 million in common stockholder dividends paid.
Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures.
Erie Indemnity Reports First Quarter 2025 Results
Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2025. Net income was $138.4 million, or $2.65 per diluted share, in the first quarter of 2025, compared to $124.6 million, or $2.38 per diluted share, in the first quarter of 2024.
Operating income before taxes increased $12.6 million, or 9.1 percent, in the first quarter of 2025 compared to the first quarter of 2024.
- Management fee revenue - policy issuance and renewal services increased $89.4 million, or 13.4 percent, in the first quarter of 2025 compared to the first quarter of 2024.
- Management fee revenue - administrative services increased $0.7 million, or 4.2 percent, in the first quarter of 2025 compared to the first quarter of 2024.
- Cost of operations - policy issuance and renewal services
- Commissions increased $61.1 million in the first quarter of 2025, compared to the first quarter of -
- 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation.
- Non-commission expense increased $16.3 million in the first quarter of 2025 compared to the first quarter of 2024. Underwriting and policy processing expense increased $3.1 million primarily due to increased personnel costs. Information technology costs increased $11.3 million primarily due to an increase in hardware and software costs and personnel costs and a decrease in capitalized professional fees related to technology initiatives. Customer service costs increased $1.6 million primarily due to increased personnel costs and credit card processing fees. Personnel costs in the first quarter of 2025 were impacted by increased compensation including higher estimated costs for incentive plan awards compared to 2024.
News
U.S. Commercial Insurance Rates Decline 1% in Q1 2025, Casualty Lines Buck Trend - Risk & Insurance
U.S. commercial insurance rates declined overall in Q1 2025, except for casualty lines, marking a reversal of recent quarterly rate trends, according to Marsh’s Global Insurance Market Index.
The U.S. commercial insurance market experienced a 1% overall decline in composite rates during the first quarter, primarily driven by a significant 9% decrease in property insurance rates. This followed a 0% rate increase in Q4 2024, a 3% increase in Q3 and a 1% increase in the second quarter of 2024.
Globally, a 3% decline in composite commercial lines rates marked the third consecutive quarter of global rate decline, following seven years of quarterly increases, Marsh reported.
The drop in U.S. property rates contributed substantially to the global property insurance rate decrease of 6%.
“It’s important to keep in mind that insurance pricing trends can, at any given time, be suddenly reversed due to a variety of factors, including a major catastrophe or series of catastrophes. For example, every year brings a keen eye on the North American tropical storm/hurricane season,” said John Donnelly, president, Global Placement for Marsh.
The U.S. casualty market, however, is moving in the opposite direction, with rates rising 8% in Q1, up from 7% in Q4, but down from the 10% casualty rate hikes of Q3 2024. The casualty rate increase is largely attributed to the severity of claims and large jury verdicts—often referred to as “nuclear verdicts”—which have caused available capacity to tighten. Underwriters have responded by continuing to reduce their lines sizes in this segment, Marsh noted
Report: Insurers Pay $1.6B in Dog Bite Claims, as Frequency Soars
[Ed, Note: Kristi Noem, U.S. Secretary of Homeland Security to issue weapons to all postal deliverers with authority to shoot offending dogs. Only kidding?]
Insurers in the U.S. paid out $1.6 billion as the number of dog-related injury claims rose significantly in 2024.
That’s according to data compiled by the Insurance Information Institute and State Farm.
Research
Collision Claims and Losses Continued Down Trend in Fourth Quarter of 2024 Compared to Previous Year
Quarterly collision claim counts were down for the seventh quarter in a row compared to the previous year.
The latest available Fast Track Monitoring system data from the Independent Statistical Service Inc. (ISS) showed that the decline in collision claims continued as claims on a quarterly basis were down for the seventh consecutive quarter compared to the previous year. Losses were also down on a quarterly basis compared to the same quarter last year for the sixth month in a row.
Collision coverage claims for the fourth quarter of 2024, at over 1.40 million, were down more than 140,000, or 9.1% compared to the fourth quarter of 2023. The fourth quarter result represents a deterioration compared to the third quarter of 2024 that had been down 9.0% compared to the third quarter of 2023, but an improvement from the second quarter that had been down more than 150,000, or 9.4%, compared to the second quarter of 2023.
Commentary/Opinion
Don't Drive Intexticated: Dangers of Texting and Driving - Your AAA Network
Distracted driving can have devastating consequences, yet a significant number of drivers admit to using their smartphones behind the wheel.
You wouldn’t think about drinking and driving, so why would you text and drive? Looking at your phone instead of the road could have the same tragic result. Taking just five seconds to read a message is like driving the entire length of a football field blindfolded.
Today
InsurTech Hartford Kicks Off Today
🗓️ hashtag#IHS2025 opens today, and downtown Hartford is more than ready to welcome you!🚀
☀️ The Connecticut Convention Center is shining brightly underneath beautiful blue skies. Gorgeous weather with highs in the low 70s and lows around 50 are expected for all three days of InsurTech Hartford Symposium festivities.🌅
💡Get ready to connect, learn, and grow with the brightest minds in insurance and innovation. We’ll see you inside!💫
See and meet 'Connected's' Alan Demers, President-Founder at InsurTech Consulting
InsurTech/M&A/Finance💰/Collaboration
Are Insurtechs Still Considered a Threat?
Insurtech startups show signs of recovery despite past legal troubles, prompting traditional insurers to reconsider their competitive stance.
Insurtech startups have sprung up like mushrooms since the Great Recession — a period when public confidence in the traditional financial sector hit rock bottom. Full-stack upstarts were seen as existential threats to their established insurance player counterparts struggling to adapt to the digital age.
Nearly a decade after the insurtech rush in the first half of the 2010s, investor interest in these challenger brands has waned. Many of these startups have had their fair share of legal troubles, revealing the cracks in their business models. Given the growth and decline of insurtechs, should they still keep traditional insurance companies up at night?
Jack Shaw serves as the editor of Modded
Meanwhile Bets on Bitcoin to Reinvent Life Insurance
The first fully regulated BTC-denominated life insurer is expanding globally with fresh funding and an ambitious vision.
When Zac Townsend and Max Gasner began talking about a new venture in late 2021, the cryptocurrency world was already a hotbed of innovation. Exchanges, payment networks, and digital wallets were evolving quickly—but one foundational pillar of financial services remained untouched: life insurance. It was in that gap that the co-founders saw an opportunity. What if they could adapt one of the oldest and most trusted financial products for the Bitcoin economy?
Today, their company—Meanwhile (Hamilton, Bermuda), the world’s first fully licensed and regulated Bitcoin-denominated life insurer—is launching new products, expanding globally, and aiming to reshape how Bitcoin holders protect and transfer wealth across generations.
“Our mission is to bring fundamental financial services—like life insurance and annuities—to this new economy,” says Townsend, CEO and co-founder of Meanwhile. “We want people to live fulfilling lives, free from financial burden. Meanwhile, we’re here to have their back.”
Dream Payments launches Insurance Payment Network Across North America
Dream Payments has launched the DreamPay Insurance Payment Hub — a two-way insurance payment network operating seamlessly across North America, leveraging J.P. Morgan Payments' capabilities. For the first time, insurers can accept premiums from policyholders in both the U.S. and Canada, and issue claims payments to individuals and businesses of every size, using digital or physical methods, all in one platform.
A Network That Reaches Everyone, Everywhere
With the DreamPay Insurance Payment Hub, insurers now gain access to the most expansive insurance payment network on the continent. The platform connects to over 350 million individuals and more than 30 million businesses across North America. From policyholders in Toronto to service providers in San Francisco, insurers can initiate and receive payments across every relevant rail — from real-time payments and ACH in the U.S., to EFT and cheques in Canada — and even reach any address on the continent for physical check delivery.
Purpose-Built for Insurance Carriers
Insurers aren't just looking for a vendor. They're searching for a strategic partner that understands the unique realities of the insurance industry — policy lifecycles, billing integrations, regulatory scrutiny, and the expectations of digital-first customers.
The DreamPay Insurance Payment Hub was built from the ground up for this purpose. By leveraging J.P. MORE
Innovation
HUB INTERNATIONAL LAUNCHES PRIVATE CLIENT SMALL BUSINESS SOLUTIONS
Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, announced today the launch of HUB Private Client Small Business Solutions. The new offering provides high-net-worth (HNW) clients access to specialized coverages to address the risks and liabilities involved with launching and owning a small business.
High-net-worth entrepreneurs are navigating a dynamic landscape of record new business formation and an increase of side-business activity as they pursue their next passion. The U.S. Small Business Administration reports a record of 5.5 million new business applications were filed in 2023. As high-net-worth entrepreneurs face the same economic uncertainty and emerging risks that any small business owner might face, they require specialized insurance coverage and risk advisory services that safeguard their ventures and wealth as they launch anything from their new tequila line to jewelry designs.
"When an affluent family member starts a side venture, they need to understand and account for liabilities while operating a small business," said Katherine Frattarola, HUB Executive Vice President and Head of HUB Private Client. "With HUB Private Client Small Business Solutions, we understand the importance of customized guidance and solutions to protect not just the operations of this new venture but our clients' wealth and legacy."