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October 29, 2021

Cost-cutting helps The Hartford post 5% increase in 3Q profits

Photo | CoStar The Hartford's Asylum Hill headquarters in Hartford.

The Hartford on Thursday said its third quarter profits increased 5% despite higher catastrophe losses.

The property and casualty insurer reported net income of $482 million, or $1.36 per share in the period ended Sept. 30, compared to $459 million, or $1.26, in the year ago period. 

Revenues in the quarter were $5.69 billion vs. $5.2 billion a year ago. It recorded $300 million in catastrophe losses in the quarter vs. $229 million in losses a year earlier. 

The Hartford said some of its improved profitability was the result of its “Hartford Next” cost-cutting initiative, which has saved the company $306 million in pre-tax expenses through the first nine months of the year. The company said that initiative will save it approximately $540 million in 2022 and $625 million in 2023.

The company previously said that “some employee impacts are certain” related to the cost-cutting efforts. It said it was “using natural attrition, talent mobility, reskilling and voluntary separations to reduce involuntary impact wherever possible.” 

In August The Hartford said it expected 1.3% of its total workforce to be affected by involuntary separations between then and the end of 2022.

During the quarter, The Hartford also returned $634 million to shareholders, including $511 million of shares repurchased and $123 million in common dividends paid. 

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