Hartford 4Q Profit $620M, A Quarterly Record

Hartford 4Q Profit $620M, A Quarterly Record

For full-year 2004, the Hartford, Conn.-based carrier posted a record net income of $2.1 billion?rebounding from a net loss of $91 million during 2003, which was hurt by a first-quarter $1.7 billion after-tax reserve for asbestos claims.

For the 2004 fourth quarter, The Hartford's property-casualty operations reported "its most profitable quarter ever," with operating income of $331 million even with a moderating p-c cycle, said Ramani Ayer, chairman and chief executive officer of The Hartford.

P-C written premiums for the fourth quarter rose 11 percent, boosted by gains in business insurance as well as personal lines. For the year, ongoing p-c written premium also reached a record at $9.9 billion, a 12 percent increase from 2003.

The company recorded a p-c combined ratio in ongoing operations of 90.2 in the fourth quarter?a 4.4-point improvement over the year-ago period. Catastrophes were 1.2 points in the fourth quarter compared to 1.5 points one year ago.

The Hartford's p-c business insurance segment reported written premium growth of 15 percent to $1.16 billion in the fourth quarter, reaching positive underwriting results. The combined ratio for the business insurance lines was 94.4 percent, up slightly from 93.1 percent one year ago.

For p-c personal lines, premium written through independent agents rose 18 percent in the fourth quarter. Overall, personal lines written premium rose to $856 million, 7 percent higher than a year ago.

The p-c insurance segments reported $333 million in net investment income for the fourth quarter, up 8 percent from one year ago.

On regulatory matters, The Hartford said it continues to cooperate fully with federal and state authorities in their probes that involve the company.

"We respect the work regulators are doing and, given the value we place on our integrity and reputation, we have a total commitment to cooperate on these matters," Mr. Ayer said. "As we have said, any breach of our corporate ethics standards, or improper or illegal activity that is found, will result in swift corrective and disciplinary action.