The Hartford Financial Services Group reported net income declined 13 percent during the second quarter compared to the same period last year with property-casualty net income off 28 percent.
Despite the challenges from the soft market and increased catastrophe losses, Ramani Ayer, chairman and chief executive officer for the Hartford, Conn.-based insurer, called it a good quarter where the company "overcame tough market conditions."
"The second quarter, from our standpoint, represents strong operating execution with very good underwriting probability in property-casualty," said Mr. Ayer, noting that life and investments performed well despite the challenges of the economy.
The company reported net income for the quarter was off $84 million to $543 million or $1.73 a share. For the six months, net income has dropped 54 percent, or $815 million, to $688 million, translating into $2.19 a share.
Total p-c net income was off 28 percent, or $95 million, to $249 million. The company reported p-c written premiums were down 3 percent, or $90 million, to $2.6 billion in the quarter compared to the same period last year.
For the first six months, p-c net income is down 29 percent, or $230 million, to $575 million. Written premiums for the period are off 2 percent, or $126 million, to $5.2 billion.
The Hartford said ongoing p-c operations combined ratio rose 4.1 points to 95.8 in the quarter on catastrophe losses of $171 million compared to $52 million for the same period last year.
The increased catastrophe losses were attributable to increased tornado and thunderstorm activity in the Midwest and Southeast.
The company said it released $39 million in reserve related to workers' compensation and general liability claims.
The Hartford added $50 million to its close to $2 billion asbestos reserves. During an analyst's conference call, executives said the additional money was in response to a review of claims outstanding and not an indication of any trend in increased asbestos expense.
On its life insurance side, the company reported net income rose 5 percent, or $16 million, to $334 million for the quarter, but has dropped 76 percent, or $577 million, to $179 million over the six months compared to last year.
Mr. Ayer said the company's balance sheet "is in great shape even after weathering a tough" economic period, and "I'm comfortable with the company's financial position."
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