The Hartford Financial Services Group Inc. reported first-quarter net income fell 83 percent, resulting primarily from $648 million in net realized capital losses, but underwriting delivered results above expectations.
Included in the capital loss, the Hartford, Conn.-based insurer said, is a $220 million charge related to the implementation of new accounting standards.
Quarterly net income dropped by $731 million to $145 million, off $2.25 a share to 46 cents a share.
The company lowered its guidance on the result from a range of $9.80-to-$10.20 per share to $9.20-to-$9.50.
Property-casualty operations written premium were down 1 percent to $2.6 billion compared to the first quarter of 2007, producing operations net income of $326 million, off $135 million from the same period in 2007. The 2008 results include $99 million of net realized losses. Despite the losses, the combined ratio improved one point to 87.8.
In other operating segments, personal lines written premiums were $936 million, flat compare to last year, with a combined ratio of 89.4. Small commercial grew $3 million to $743 million with a combined ratio of 82.7. Middle market dropped $9 million in written premiums to $743 million. Specialty commercial insurance was down 8 percent to $357 million and a combined ratio of 88.
An analyst's conference call today concentrated on discussion about the company's investment portfolio and whether there could be some future hidden losses.
Hartford executives said they were comfortable with the current investment spread and predicted the company would see improvements in the future.
"We remain comfortable with our overall portfolio," said Ramani Ayer, chairman and chief executive officer for the company.
Asked about the Safeco-Liberty Mutual merger deal, Mr. Ayer said it would make Liberty Mutual a more formidable player in the independent agent arena than it already is, but added the Hartford is in a good position to compete.
Thomas M. Marra, president and chief operating officer, said the company is seeking rate increases going forward where possible and is increasing the number of agents under the company's umbrella.
Mr. Ayer noted that competition is intense for new business and that "the larger the account, the greater the competition."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.