The Hartford reported a 21 percent decline in net income for the second quarter as a legal charge took a hit on earnings.
The multiline carrier reported $476 million in net income, compared with $602 million for the second quarter of 2005.
The quarter's numbers include a previously announced charge of $158 million related to reinsurance recoverables and the company's agreement with Equitas and all Lloyd's syndicates reinsured by Equitas.
Discounting that charge, the core earnings declined 5 percent for the quarter to $573 million from $606 million in the same 2005 period.
Ramani Ayer, chief executive officer, said in a statement that the company has delivered a return on equity within the targeted range for the last 12 months.
The company posted a property-casualty combined ratio of 89.3, while written premiums of $2.7 billion were roughly in line with the comparable year-ago period, the company reported.
Business premiums came in at $1.3 billion, representing a 2 percent rise from the year ago period, while personal lines premiums increased 4 percent to $1 billion, the company said.
Written premiums in specialty commercial insurance declined 16 percent from the prior year to $418 million. A reduced exposure to catastrophe-prone areas as well as increased competition in noncatastrophe areas contributed to the decline.
According to the company, an increase in marketing activities drove 7 percent growth in AARP written premium and continued distribution expansion led to a 6 percent rise in agency written premium.
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