Hartford Financial Services Group Inc. said on Wednesday that it expects to report second-quarter 2020 net income of $ 463 million, which would be a 24.5% increase over its comparable 2019 results, despite estimated $ 251 million estimated COVID-19-related losses.
The insurer, which reports earnings for the second quarter of July 30, said in its statement that $ 251 million in COVID-19 losses reflects estimated property losses / damages of $ 213 million before tax and consists primarily of business interruption claims on property policies, net employee compensation according to favorable frequency and financial lines.
It stated that business interruption claim reserves refer to policies in the middle and major commercial and global specialties that do not require direct physical loss or coverage.
Estimated property losses of COVID-1
Estimated Workers' Compensation COVID-19 losses include assumption losses for states that have enacted laws or issued executive orders or agency rules that provide for the resumption of coverage for certain industry classes, including health care and other important workers, it said.
Last year's earnings during the second quarter were affected by the costs associated with the insurance company Navigators Group Inc.'s acquisitions.
More insurance and risk management news about the coronavirus crisis here .