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

Saying the company ended 2010 on a strong note, The Hartford Financial Services Group Inc. reported net income rose 11 percent from the previous year, benefiting from rate increases and a rise in investment income.

The company reported net income of $1.68 billion, or $2.49 a share, 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 income rose $62 million to $619 million. Net income per share rose 5 cents to $1.24 a share.

“This is a significant turnaround from 2009,” said Liam E. McGee, chairman, president and chief executive officer of the company, 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 share payable on April 1 to shareholders of record as of March 1. He added the company was considering “future capital management transactions” that could include dividend payments and stock buy backs.

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

Mr. McGee said that small commercial risks would be a growth driver for the company with “attractive pricing,” underwriting discipline and strong growth in policies written. Middle market commercial property and casualty business remains “competitive,” he said.

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

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

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

On the life and wealth management side, he said the company will seek to grow through expanding its customer base and distribution network. It is also expanding cross selling through its p&c agents.

The company reported a fourth-quarter combined ratio of 96.8, up 0.1 point, in its consumer market business. It said it achieved renewal price increases of 7 percent for auto and 10 percent for homeowners.

For p&c commercial, the combined ratio jumped 5.2 points to 95, as renewal written pricing was up 1 percent. The combined ratio excluded catastrophes and prior year development.

The Hartford said its group benefits business is implementing rate changes to address loss cost trends as the combined ratio increased 6.9 points to 79.1.

Special Reports /

Hartford 4Q Net Income Up 11%

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