Hartford 3Q Net Income Up 44 %

By Steve Tuckey

NU Online News Service, Nov. 5, 4:15 p.m.EST--The Hartford Financial Services Group yesterdayreported its 2004 third quarter net income rose 44 percent to $494million.[@@]

On the property-casualty side, the company reported an after-taxcatastrophe loss of $263 million. It also reported a tax benefit of$216 million, stemming from the favorable resolution of various taxitems relating to tax years prior to 2004 and a 12 percent rise inwritten premium for on going property casualty operations.

Before the catastrophes, the company reported a combined ratioin ongoing operations of 93.3 percent. But catastrophes added 15.6points in the current quarter compared to 3.4 points in the thirdquarter of last year.

The life operation figures were bolstered by $190 million priortax year benefit recorded in the current quarter, and a $40 millionBancorp settlement expense recorded in the comparable year-agoperiod.

Including these items, life operating income in the quarter was$496 million, compared to an operating income of $181 million inthe third quarter of 2003.

The Hartford has been among the major companies targeted in N.Y.Attorney General Eliot Spitzer's probe of brokerage contingencyfees and charges of bid-rigging. And today, Hartford Life receivedsubpoenas in connection with a stock sale by its president, ThomasMarra.

Hartford CEO Ramani Ayer in the company's quarterly report tooknote of the "spotlight on our industry."

"In recent weeks, we have been addressing the issues raised bythe inquiries being conducted by the states attorneys general andothers. We are committed to a comprehensive assessment of theseissues and a thorough and complete resolution," he said.