The Hartford Financial Services Group reported a third quarter net loss of $220 million, compared with a net loss of $2.6 billion in the year-ago period.
Written premiums for The Hartford's property/casualty operations in the third quarter were $2.4 billion, down 6 percent from the third quarter of 2008 largely as a result of weaker economic conditions, the company said. The Hartford, however, did say it is seeing momentum in new business submissions in all segments, but particularly in personal lines and small commercial.
The property/casualty operations saw a net income of $190 million for the third quarter, compared with a net loss of $774 million the year-ago period.
The combined ratio for ongoing operations in the third quarter of 2009, excluding catastrophes, was 93.8, compared with 91.8 in the prior-year period. The third quarter of 2009 included $135 million, or 5.5 points, of net favorable prior year development primarily related to small commercial and middle market workers compensation, professional liability, personal lines auto liability and middle market general liability claims.
Personal lines written premiums for the third quarter of 2009 grew 2 percent to $1 billion. Written premiums in the company's agency business rose 4 percent in the third quarter. New business premium increased 26 percent over the third quarter of 2008, while the number of policies in force grew 2 percent year-over-year as investments in new products and increased consumer shopping continued to drive new business submissions.
During the quarter, the company continued its successful launch of its AARP product through agents, with the product already in 14 states, and 6 additional states rolling out in the fourth quarter.
The third quarter 2009 current accident year combined ratio, excluding catastrophes, was 94.5, compared to 88.3 in the prior-year period. The increase in the combined ratio was largely due to current accident year reserve strengthening, in response to an uptick in auto frequency and lower average premium. The third quarter of 2009 included 9.1 points of current accident year catastrophes related to significant hail and windstorms in the Midwest and Colorado.
Written premiums for small commercial were $626 million for the third quarter of 2009, compared with $652 million in the prior-year period. New business premium was up 20 percent over the prior-year period as product enhancements made in 2009 had a positive impact and the company capitalized on policyholder shopping.
Third quarter 2009 profitability continued to be very strong, with a current accident year combined ratio, excluding catastrophes, of 86 as compared to 87.7 in the third quarter of 2008. The third quarter of 2009 included 2.9 points of current accident year catastrophes.
Written premiums for middle market were $496 million for the third quarter of 2009, compared with $571 million in the year-ago period. The third quarter 2009 current accident year combined ratio, excluding catastrophes, was 97, compared with 98.4 in the prior-year period. The third quarter of 2009 included 1.2 points of current accident year catastrophes and $52 million, or 10.1 points, of net favorable prior year development largely related to workers' compensation and general liability.
In specialty commercial, written premiums for the third quarter of 2009 were $266 million as compared to $345 million in the year-ago period. Premiums were driven lower by a combination of the effects of the economic downturn, the sale of First State Management Group, which contributed $14 million of premium in the third quarter of 2008, and lower net premiums resulting from changes in a reinsurance treaty.