“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”
Improving operating efficiencies and a lower expense ratio from Hartford Next, the company’s cost transformation program, have contributed to margin expansion. The program delivered $195 million in pre-tax expense savings in the six months ended June 30, 2021 compared to the six month period in 2019. We continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.
"Our performance was outstanding with all businesses and investment returns contributing to very strong second quarter results that generated a 13.1 percent core earnings ROE. As we continue to execute with confidence and precision, our product breadth, underwriting capabilities, and customer experience will differentiate the competitive advantages we bring to the market," said Chairman and CEO Christopher Swift.
The Hartford's President Doug Elliot said, "Property and Casualty had simply a superb quarter, with robust top line growth, especially new business sales, and excellent underwriting results. New business was terrific across Commercial Lines. Continued underwriting discipline combined with consistent pricing and risk selection contributed to a superior underlying combined ratio of 89.2 percent. In Personal Lines, the launch of Prevail, our new home and auto product, provides optimism that this cloud based, contemporary design will meaningfully impact written premium levels and margins. We have never been stronger and I'm confident in our future success".
Swift continued, "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".