Third quarter 2013 current accident year catastrophe losses totaled $18 million, before tax, compared with $0 million in third quarter 2012. Third quarter 2012 included $24 million of favorable development on 2012 prior quarter catastrophe losses that entirely offset third quarter 2012 catastrophes of $24 million, before tax. Similarly, third quarter 2013 included $17 million, before tax, of favorable development on 2013 prior quarter catastrophes that partially offset $35 million, before tax, of current quarter catastrophes. Favorable PYD, largely from prior year catastrophe losses, was $11 million, before tax, in third quarter 2013 compared with favorable PYD of $49 million, before tax, in third quarter 2012, principally from auto liability.
The auto combined ratio, before catastrophes and PYD, was 96.8 in third quarter 2013, 3.3 points better than 100.1 in third quarter 2012 as a result of earned pricing increases and moderate liability and physical damage loss cost trends. Homeowners combined ratio, before catastrophes and PYD, was 77.6, 0.6 points better than 78.2 in third quarter 2012 due to earned pricing increases and favorable non-catastrophe weather and non-weather claim frequency.
Third quarter 2013 written premiums rose 3% from third quarter 2012 as a result of increasing premium retention, higher renewal written price increases and higher new business premium. Third quarter 2013 premium retention for auto and homeowners each increased by 1 point to 88% and 92%, respectively. Third quarter 2013 renewal written price increase averaged 5% in auto and 8% in homeowners, up 1 point and 2 points, respectively, compared with 4% and 6%, respectively, in third quarter 2012. New business premium totaled $135 million, 16% higher than third quarter 2012 new business premium of $116 million due to strong auto new business in AARP Agency and AARP Direct.
During the quarter, The Hartford announced an extension of its agreement with AARP to offer home and auto insurance products to its members. The Hartford's relationship with AARP now runs through January 1, 2023, and marks the fourth extension of the program since the program's inception in 1984.
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