The Hartford Financial Services Group Inc. yesterday reported first-quarter 2006 net income of $728 million, a 9 percent rise from the $666 million first-quarter period of 2005.

"Hartford's strong performance during the quarter demonstrates our unrelenting focus on core markets where we have competitive advantages," said Ramani Ayer, chairman, president and chief executive officer of Hartford.

Net written premiums for Hartford's property and casualty operations in the first quarter of 2006 were $2.6 billion, a 2 percent increase from the first quarter of 2005, the company said.

Growth in small commercial and agency personal lines was offset by an anticipated decline in specialty commercial property and specialty casualty premiums, Hartford reported.

The combined ratio for ongoing operations before catastrophes was 87.9, compared with 86.8 in the first quarter of 2005. The 0.9 point catastrophe ratio in the first quarter of 2006 included $18 million of net reserve releases for 2004 and 2005 hurricanes. This compares to 1.9 points of net catastrophe losses in the first quarter of 2005, Hartford said.

Business insurance reported net written premiums of $1.3 billion for the first quarter of 2006 were up 5 percent compared with the first quarter of 2005.

In the first quarter of 2006, Hartford said, the combined ratio, excluding catastrophes, was 87.7 percent, compared with 88.2 percent in the first quarter of 2005.

The company said the improvement reflects a lower expense ratio and favorable results in property insurance. Catastrophe losses were 1.7 points in the first quarter of 2006.

Net written premiums for personal lines increased 4 percent over the prior year period to $901 million, driven by good retention rates and growth across both Hartford's agency and AARP businesses.

The combined ratio for personal lines, excluding catastrophes, was 85.3 during the first quarter of 2006, compared with 83.3 percent in the first quarter of 2005.

Compared to the prior-year period, the expense ratio increased by 0.9 points as the company invested in AARP marketing and agency distribution. Catastrophe losses accounted for 3.2 points in the first quarter of 2006, Hartford reported.

Special Reports /

Hartford Quarterly Net Up 9%

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