NU Online News Service, Feb. 3, 1:57 p.m.EST

Saying the company ended 2010 on a strong note, The HartfordFinancial Services Group Inc. reported net income rose 11 percentfrom the previous year, benefiting from rate increases and a risein investment income.

The company reported net income of $1.68 billion, or $2.49 ashare, for the year compared to a net loss of $887 million, or$2.93 a share, in 2009.

The Hartford also reported that 2010 fourth-quarter net incomerose $62 million to $619 million. Net income per share rose 5 centsto $1.24 a share.

“This is a significant turnaround from 2009,” said Liam E.McGee, chairman, president and chief executive officer of thecompany, during a conference call with financial analysts.

He said that, in response to the company's improved performance,it doubled its quarterly dividend payment to 10 cents a sharepayable on April 1 to shareholders of record as of March 1. Headded the company was considering “future capital managementtransactions” that could include dividend payments and stock buybacks.

During the call, executives declined to go into further detailsabout these plans.

Mr. McGee said that small commercial risks would be a growthdriver for the company with “attractive pricing,” underwritingdiscipline and strong growth in policies written. Middle marketcommercial property and casualty business remains “competitive,” hesaid.

“Overall, we are seeing early signs of economic improvement inp&c commercial, particularly in small businesses,” he said.

Premium is up, and Mr. McGee said he believes “sustainedexposure growth will continue in 2011.”

Mr. McGee said the Hartford has stopped “mass marketing” p&cpersonal lines and is concentrating instead on its affinity marketrelationships, including AARP. More affinity relationships areexpected to be announced this year, he added.

On the life and wealth management side, he said the company willseek to grow through expanding its customer base and distributionnetwork. It is also expanding cross selling through its p&cagents.

The company reported a fourth-quarter combined ratio of 96.8, up0.1 point, in its consumer market business. It said it achievedrenewal price increases of 7 percent for auto and 10 percent forhomeowners.

For p&c commercial, the combined ratio jumped 5.2 points to95, as renewal written pricing was up 1 percent. The combined ratioexcluded catastrophes and prior year development.

The Hartford said its group benefits business is implementingrate changes to address loss cost trends as the combined ratioincreased 6.9 points to 79.1.