insurance finance news The Hartford Achieves Q2 Profit; Next Up Is Cutting Jobs, Investing in IT to Trim Expenses financial insurance news
Breaking-Finance.Com - The Hartford emerged from the second quarter's COVID-19 related challenges with an overall profit and a plan to reduce expenses through "headcount
Breaking-Finance.Com - The Hartford emerged from the second quarter’s COVID-19 related challenges with an overall profit and a plan to reduce expenses through “headcount reductions,” information technology investments and other moves. The insurer is calling its expense reduction move Hartford Next and described it as an “operational transformation and expense reduction” initiative. This initiative is designed to save $500 million annually by 2022. In order to achieve the savings, The Hartford said it expects to spend $320 million from now through 2022 and $40 million thereafter, with approximately $120 million over the remaining two quarters of 2020. The expense reduction plan is designed to shave 2-2.5 points from its 2022 P/C expense ratio and 1.5 to 2 points from its 2020 Group Benefits expense ratio.
“The second quarter has certainly presented some extraordinary challenges. COVID-19 has touched nearly all aspects of our business and has significantly impacted each of our stakeholders,” The Hartford President Doug Elliot said in prepared remarks.
Consolidated Q2 net income came in at $463 million, or $1.29 per diluted share for Q2 2020, which was 24 percent higher than last year’s second quarter income of $372 million, or $1.02 per diluted share over the same period in 2019.
The insurer said PG&E California wildfire recoverables helped offset the impacts of COVID and riot losses.
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