The Hartford Financial Services Group Inc. said yesterday thatnet income rose 68 percent in the 2006 fourth quarter, helped byrecord property-casualty underwriting and low catastrophecosts.

Hartford said net earnings were $783 million compared with $467million in the year-earlier quarter.

For the entire year, the company reported a 21 percent increasein net income to $2.7 billion, compared with $2.3 billion for2005.

Chief Executive Officer Ramani Ayer said the company exceededtargets in all business segments, reporting a return on equity forthe year of 16 percent.

The Hartford said that low catastrophe costs and strongunderlying performance led to a combined ratio of 89.3 for2006.

Written premiums for business insurance grew 2 percent for thequarter to $1.3 billion, with growth in small commercial policiesfueled in part by new agents partially offsetting a loss in middleincome business.

In personal lines, net written premiums rose 4 percent to $941million. Written premiums grew 9 percent through the AARP affiliateprogram and 6 percent through independent agents, while nonstandardauto premiums continued to decline.

In the independent agency channel, new products and an expandeddistribution network contributed to premium growth, The Hartfordsaid.

Specialty commercial premiums for the quarter decreased 1percent on a year over year basis to $369 million, the insurerreported.

Written premiums in the company's professional liability,fidelity and surety businesses grew 11 percent over the prior year,reflecting new business generated from small commercial and middlemarket agents, the company said.