MetroHartford Alliance Business Cost Analysis: Hartford Region a Prime Location for Insurance and Financial Services Firms
FOR IMMEDIATE RELEASE
HARTFORD, CONN. – September 13, 2023 – The MetroHartford Alliance (MHA) today released a new study which shows that the Greater Hartford Region offers competitive costs for insurance and financial services firms when compared with other metros across the country. MHA engaged advisory and accounting firm CohnReznick to conduct the analysis. The study compared a range of key business taxes and office lease costs in the Greater Hartford region and the state of Connecticut with 15 other metro areas and states and found that Hartford provides an attractive home for businesses, particularly early-stage insurtech and fintech companies aiming to manage expenses and provide value to their investors.
“This study underscores the strength of our region as a hub for insurance and financial services firms,” said David Griggs, President and CEO, MetroHartford Alliance. “We are committed to leveraging the study’s insights to foster a vibrant business climate for all employers in our community.”
The comprehensive analysis was made possible by the industry-leading State and Local Tax (SALT) expertise offered by the CohnReznick team. Among the key findings of the study:
- Compared with peer and competitive markets, Hartford boasts the second lowest total tax and office lease costs for insurance and financial services companies
- Hartford has the lowest costs for general Class A office users
- Hartford’s competitiveness in business costs, cost of living, and labor markets makes the region an attractive place for businesses to invest
“The findings from this study make a powerful case for locating, investing, and growing here in Hartford,” said Mayor Luke Bronin. “We’ve long known that Hartford and the Hartford region can boast of some the best talent in the world, the best quality of life in the country, and a tremendous geographic location, and this study shows that companies can get those advantages and save money and operate more efficiently at the same time. We need to make sure that we get that information out far and wide, and I appreciate the Metro Hartford Alliance’s work in commissioning this analysis.”
The analysis released today builds upon a 2021 joint MetroHartford Alliance-CohnReznick study which examined business costs incurred by companies in the Hartford Region. Rather than merely comparing published statutory income and property tax rates, the CohnReznick team comprehensively analyzed all taxes levied by local, county, and state governments on businesses across 15 peer insurance and financial services markets throughout the country and compared those findings with Hartford and Connecticut-specific data.
“CohnReznick was pleased to once again collaborate with the MetroHartford Alliance on this important benchmarking study,” said Patrick Duffany, Managing Partner – Tax at CohnReznick. “The findings provide an objective look at key factors that drive location, job creation, and capital investment decisions. We’re very encouraged to see that Hartford performs so well. Clearly, the Hartford region is worthy of serious consideration by insurance and financial services firms looking to grow and succeed.”
This analysis provides invaluable insights into the economic competitiveness of the Hartford region, highlighting opportunities for job growth and attracting potential employers.
The CohnReznick SALT team and the MetroHartford Alliance collaborated to conduct a study analyzing a standardized set of business criteria tailored to a typical insurance firm including a range of taxes and office lease costs. The study compared the Hartford region and Connecticut with peer regions and states that host a dense concentration of Fortune 500 company headquarters and act as hubs for insurance and financial services, aerospace/defense, and advanced manufacturing. The specific regions analyzed include:
- Des Moines-West Des Moines, IA
- Austin-Round Rock-Georgetown, TX
- Atlanta-Sandy Springs-Alpharetta, GA
- Boston-Cambridge-Newton, MA-NH
- Charlotte-Concord-Gastonia, NC-SC
- Chicago-Naperville-Elgin, IL-IN-WI
- Columbus, OH
- Dallas-Fort Worth-Arlington, TX
- Jersey City, NJ (Suburban NYC)
- Minneapolis-Saint Paul-Bloomington, MN
- New York, NY
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
- Providence, Warwick, RI-MA
- Tysons/Arlington, VA (Fairfax County)
For more information or to download a copy of the study, please visit: www.metrohartford.com/effective-tax-study-2023/
About The MetroHartford Alliance
The MetroHartford Alliance is an investor-based economic development partnership focused on business development and growth, retaining and attracting jobs and talent in targeted sectors, ensuring a strong urban core, and promoting the Hartford Region. Learn more at www.metrohartford.com.