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The Hartford Reports Third Quarter 2013 Financial Results

Catastrophe losses totaled $66 million, before tax, in third quarter 2013, including $11 million, before tax, of unfavorable development on first half 2013 catastrophe losses. Third quarter 2012 catastrophe losses totaled $10 million, before tax, net of favorable development on first half 2012 catastrophe losses of $19 million, before tax.

Unfavorable PYD totaled $17 million, before tax, in third quarter 2013 compared with favorable PYD of $33 million, before tax, in third quarter 2012. Unfavorable PYD in third quarter 2013 included unfavorable PYD of $26 million from P&C Commercial and $2 million from P&C Other Operations. These amounts were partially offset by favorable PYD of $11 million from Consumer Markets, principally reflecting favorable PYD on catastrophes, including Storm Sandy.

Before catastrophes and PYD, the P&C (Consolidated) third quarter 2013 combined ratio improved to 92.8 compared with 96.3 in third quarter 2012, reflecting pricing and underwriting initiatives in the P&C Commercial and Consumer Markets segments.

Third quarter 2013 written premiums increased 2% over the prior year period, reflecting 1% growth in P&C Commercial Markets and 3% growth in Consumer Markets.

P&C CommercialThird Quarter 2013 Highlights:
  • Underwriting gain improved to $30 million compared with $14 million in third quarter 2012 due to better current accident year results partially offset by higher catastrophes and unfavorable PYD
  • Standard Commercial renewal written pricing increased 8% in third quarter 2013, consistent with the last four quarters
  • Middle Market workers’ compensation and property written pricing each increased 9% during third quarter 2013
($ in millions)         Three Months Ended
          Sept. 30 2013   Sept. 30 2012   Change
Underwriting gain         $30   $14   114%
Combined ratio         98.1   99.1   1.0
Combined ratio before catastrophes and PYD         93.3   97.5   4.2
Small Commercial         87.1   92.6   5.5
Middle Market         95.9   100.7   4.8
Specialty         103.0   105.0   2.0
Written premiums         $1,567   $1,552   1%
Standard commercial price increases         8%   8%   —

P&C Commercial underwriting gain was $30 million in third quarter 2013, a 114% increase from $14 million in third quarter 2012 due to better current accident year results in each of its three businesses (Small Commercial, Middle Market and Specialty), partially offset by higher catastrophe losses and an increase in unfavorable PYD. Third quarter 2013 catastrophe losses totaled $48 million, before tax, compared with $10 million, before tax, in third quarter 2012. The increase in catastrophe losses was largely driven by unfavorable development on second quarter 2013 catastrophes of $26 million before tax.

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