NU Online News Service, May 03, 8:12 a.m.EDT
|First quarter net income at The Hartford was down about 81percent to $96 million, as net losses from runoff operationstotaled $378 million.
|In March, The Hartford announced it would exit the life business to focus on its stronger property andcasualty operations. The company says it placed itsindividual-annuity business into runoff.
|In a statement, Liam E. McGee, chief executive officer, says TheHartford is “initiating the sales of process for individual life,retirement plans and Woodbury Financial Services, which areproceeding well.”
|Runoff operations generated a $49 million loss during the firstquarter last year.
|Core earnings were up 7 percent to $612 million in the firstquarter compared to $574 million during the same period a yearago.
|McGee says, “P&C commercial's pricing momentum continued andretention remained strong.”
|Price increases at renewal in Hartford's commercial marketssegment were up an average of 7 percent for small and middle-marketcommercial, and 14 percent in middle-market workers'compensation.
|However, first-quarter net income in the segment was down to$207 million from $334 million a year ago.
|Last year during the first three months, Hartford reported $4million of favorable prior-year reserve development. This yearHartford reports $13 million of unfavorable reserve developmentafter the first quarter.
|Additionally, the segment's underlying combined ratio of 96.4 inthe first quarter was 1.1 points higher than last year. Theincrease reflects lower profitability in workers' comp, Hartfordsays.
|The insurer's consumer markets segment reports first-quarter netincome of $108 million—the same as 2011.
|New auto and homeowners written premium increased 31 percent,driven by affinity relationships with AARP.
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