The Hartford(US:HIG)2021-04-27 19:49Financial Performance - Total revenues for Q1 2021 were $5,299 million, an increase of 6.9% compared to $4,956 million in Q1 2020[17] - Net income for Q1 2021 was $249 million, a decrease of 8.8% from $273 million in Q1 2020[17] - The company’s basic earnings per share decreased to $0.68 in Q1 2021 from $0.75 in Q1 2020, a decline of 9.3%[17] - Comprehensive loss for Q1 2021 was $657 million, compared to a loss of $736 million in Q1 2020[18] - Net income available to common stockholders decreased to $244 million for Q1 2021, down from $268 million in Q1 2020, representing a decline of 9.0%[38] Revenue Sources - Earned premiums decreased to $4,343 million in Q1 2021 from $4,391 million in Q1 2020, reflecting a decline of 1.1%[17] - Total earned premiums and fee income for the three months ended March 31, 2021, was $4,698 million, slightly down from $4,711 million in the same period of 2020[40] - Group Benefits segment reported total revenues of $1,418 million for Q1 2021, up from $1,391 million in Q1 2020, reflecting a growth of 1.9%[40] - Commercial Lines earned premiums decreased to $2,244 million in Q1 2021 from $2,273 million in Q1 2020, a decline of 1.3%[40] - Personal Lines total earned premiums fell to $742 million in Q1 2021, down from $783 million in Q1 2020, a decrease of 5.2%[40] Investment Performance - Net investment income increased to $509 million in Q1 2021, up 10.9% from $459 million in Q1 2020[17] - The company reported net realized capital gains of $80 million in Q1 2021, compared to a loss of $231 million in Q1 2020[17] - The company reported a net unrealized loss on equity securities of $(6) million for the three months ended March 31, 2021, compared to a loss of $(386) million in the same period of 2020[73] Expenses and Liabilities - Total benefits, losses, and expenses rose to $4,996 million in Q1 2021, an increase of 8.3% from $4,612 million in Q1 2020[17] - The total liabilities for unpaid losses and loss adjustment expenses, gross, reached $30,332 million as of March 31, 2021, compared to $28,380 million as of March 31, 2020, marking an increase of about 6.9%[183] - The provision for unpaid losses and loss adjustment expenses for the current accident year was $1,924 million for the three months ended March 31, 2021, compared to $1,883 million for the same period in 2020, reflecting an increase of approximately 2.2%[183] Asset Management - Total assets increased to $74,201 million as of March 31, 2021, compared to $74,111 million at December 31, 2020, reflecting a growth of 0.12%[20] - Total investments decreased to $55,727 million from $56,532 million, a decline of 1.43%[20] - Cash and restricted cash at the end of the period was $280 million, down from $301 million, representing a decrease of 6.98%[23] Shareholder Returns - The company declared cash dividends of $0.350 per common share, an increase from $0.325 per share in the previous year[21] - The total stockholders' equity decreased to $17,702 million from $18,556 million, a decline of 4.61%[20] Credit Losses and Allowances - The allowance for credit losses (ACL) on fixed maturities, AFS, decreased to $19 million as of March 31, 2021, from $23 million at the beginning of the period[86] - The allowance for credit losses (ACL) on mortgage loans decreased to $34 million as of March 31, 2021, from $38 million at the beginning of the period, reflecting improved economic conditions[100] - The allowance for credit losses (ACL) on premiums receivable decreased to $144 million as of March 31, 2021, compared to $152 million as of December 31, 2020, indicating a reduction in expected credit losses[165] Reinsurance and Reserves - The gross reinsurance recoverables increased to $6,181 million as of March 31, 2021, compared to $6,119 million as of December 31, 2020, reflecting a growth of approximately 1.0%[173] - The net reinsurance recoverables also rose to $6,083 million as of March 31, 2021, up from $6,011 million at the end of 2020, indicating an increase of about 1.2%[173] - The Hartford increased general liability reserves by $650 million for sexual molestation and abuse claims related to the Boy Scouts of America, reflecting a settlement agreement[197] Derivative Instruments and Hedging - The Company recognized a total gain of $14 million from cash flow hedges during the three months ended March 31, 2021, compared to $60 million in the same period of 2020[143] - The Company utilized interest rate swaps to manage portfolio duration and convert variable interest payments to fixed rates[126] - The Company entered into credit default swaps to hedge against default risk and credit-related changes in the value of fixed maturity securities[129]