The Hartford reports a first-quarter net loss of $241 million asits life business run-off and one-time charges dragged downearnings. However, its P&C business net income was up of 8percent.

The combination of Hartford's Talcott Resolution—annuity andlife insurance business it placed into run-off more than a year ago to concentrate on P&C—andcharges for early extinguishment of debt and good-will write offproduced a net loss of $652 million. The company's three corebusinesses—P&C, Group Benefits and Mutual Funds—produced netincome of $411 million, offsetting the net loss.

The Hartford, Conn.-based insurer's Chairman and CEO Liam E.McGee calls the quarter's performance strong, noting that thecompany reported core earnings growth of 19 percent or $456million. Speaking to financial analysts during a conference call,McGee said its General Liability and Property lines are seeing newbusiness “and I believe we will ultimately achieve a better balanceamong all of our commercial P&C lines of business.” He notedthat consumer lines returned to written-premium growth for thefirst time since 2009.

Net income in P&C was up $27 million to $351 million, butrevenues were off 2 percent to $2.9 billion. Combined ratioimproved 2 points to 93.6. The Hartford says that combined-ratioimprovement was principally due to improved P&C Commercialinsurance margins resulting from pricing and underwritinginitiatives the company began in 2011. The segment also benefitedfrom catastrophe losses dropping from $71 million in 2012 to $32million in 2013.

Highlighting Q1 earnings, P&C Commercial underwritingincreased from $4 million in 2012 to $91 million in 2013. Smallcommercial and middle-market pricing increased 9 percent, a 2-pointincrease over the prior year. Consumer markets—auto andhomeowners—underwriting gain dropped 39 percent to $72 million aslower catastrophe losses of $26 million were more than offset byless favorable prior year reserve development.

One bright spot: New-business premium rose 5 percent due togrowth in AARP Direct and AARP Agency businesses. The combinedratio improved slightly by 0.2 points to 88.6.