(Reuters) – Insurance firm Hartford Financial Services posted an 18% rise in third-quarter profit on Thursday, as the company benefited from strong underwriting gains in its property & casualty (P&C) segment and higher returns on its investment portfolio.
P&C written premiums rose 10% in the quarter ended Sept 30, driven by commercial lines and personal lines premium growth of 9% and 12%, respectively.
Despite high interest rates, hopes for a soft landing of the economy have helped sustain insurance spending, boosting premium growth from both individual and corporate customers.
Hartford’s net investment income, before tax, saw an increase of over 10% to reach $659 million, driven by higher yields on fixed income portfolio.
Elevated interest rates have boosted yields from bonds that insurers hold in their investment portfolios, while a strong economy and a rally in equities have also benefited their stock holdings.
The company reported core earnings of $752 million, or $2.53 per diluted share compared to $702 million, or $2.29 per diluted share, a year earlier.
Shares of the Hartford, Connecticut-based insurer was down 2.5% at $117.5 in extended trading.
(Reporting by Atharva Singh; Editing by Mohammed Safi Shamsi)