Worsening auto losses and lower investment returns led to a 31 percent decrease in The Hartford’s 2016 first quarter net income.

The property/casualty insurance giant said it produced $323 million in net income, or $0.79 per diluted share during the quarter. That’s down from $467 million, or $1.08 per diluted share over the same period last year.

Hartford Chairman and CEO Christopher Swift noted gains, such as a 2 percent average in standard commercial renewal written pricing increases, a win in a tough market, but down from a 3 percent increase in the 2015 first quarter. He also acknowledged the declines, which came, in part, from personal loss automobile trends.

“Although homeowners improved, personal automobile loss trends continued to be challenging,” Swift said in prepared remarks.

Renewal written price increases for Q1 2016 averaged 7 percent in automobile and 8 percent in homeowners, and both were about 1 point above the past several quarters, according to the company.

Net realized capital losses reached $96 million during the quarter, compared to net realized capital gains of $2 million in the 2015 first quarter. Execs blamed Q1 2016 net losses on sales of securities and losses on the variable annuity hedge program and other derivatives, thanks to volatile capital market conditions.

Here’s a breakdown of results in The Hartford’s commercial lines and personal lines divisions:

Commercial Lines

• The combined ratio was 91.1, down from 95.9 in the 2015 first quarter.
• Net investment income hit $209 million, down from $257 million over the same period a year ago.
• Premiums written came in at $1.726 billion during the 2016 first quarter, versus $1.722 billion in the same, year-ago period – essentially flat.

Personal Lines

• This division reported a 99.9 combined ratio, up markedly from 92.1 in the 2015 first quarter.
• The Hartford noted that lower fire and weather-related homeowners losses were offset by higher automobile losses connected to severity trends in both liability and physical damage, and higher liability frequency.
• Written premiums were booked at $953 million, up 1 percent over $939 million in written premiums from the 2015 first quarter.
• Net investment income for the division came in at $31 million, versus $35 million a year ago – an 11 percent decline.

Source: The Hartford