This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Hartford Reports Fourth Quarter And Full Year 2013 Financial Results; Announces 2014 Outlook And Capital Management Plan For 2014 And 2015

Stocks in this article: HIG

Catastrophe losses totaled $21 million, before tax, in fourth quarter 2013, significantly lower than fourth quarter 2012, which totaled $126 million due to Storm Sandy. On a net basis, there was no PYD in fourth quarter 2013 compared with favorable PYD of $14 million, before tax, in fourth quarter 2012, principally from homeowners.

The auto combined ratio, before catastrophes and PYD, was 102.7 in fourth quarter 2013, 2.2 points higher than 100.5 in fourth quarter 2012 due to a strengthening of current accident year auto liability reserves as frequency trends developed slightly higher than expected during the second half of the year. The combined ratio for homeowners, before catastrophes and PYD, was 70.6, 4.9 points higher than 65.7 in fourth quarter 2012, due to higher non-catastrophe weather losses compared to very favorable experience in 2012.

Fourth quarter 2013 written premiums rose 3% from fourth quarter 2012 as a result of new business premium growth, stable premium retention, and renewal written price increases. Fourth quarter 2013 premium retention for auto remained stable at 87% while homeowners increased by 1 point to 92%. Fourth quarter 2013 renewal written price increase averaged 5% in auto and 8% in homeowners, compared with 5% and 6%, respectively, in fourth quarter 2012. New business premium totaled $126 million, 18% higher than fourth quarter 2012 new business premium of $107 million due to strong auto new business across all channels, particularly AARP Agency and AARP Direct.

P&C Other Operations

Fourth quarter 2013 underwriting loss was $9 million compared with $15 million in fourth quarter 2012. Fourth quarter 2013 results included unfavorable PYD of $3 million, before tax, while fourth quarter 2012 had unfavorable PYD of $5 million, before tax.

GROUP BENEFITSFourth Quarter 2013 Highlights:

  • Core earnings of $55 million, up 41% from $39 million in fourth quarter 2012, due to improved group long-term disability results
  • Improved core earnings after-tax margin of 5.9% compared with 3.8% in fourth quarter 2012
  • Loss ratio improved 4.3 points from fourth quarter 2012 to 72.7% driven by favorable long-term disability pricing and loss trends
GROUP BENEFITS              
($ in millions)       Three Months Ended
        Dec. 31 2013     Dec. 31 2012     Change
Fully insured premiums¹       $821     $915     (10%)
Loss ratio       72.7%     77.0%     4.3
Core earnings       $55     $39     41%

[1] Fully insured ongoing premiums excludes buyout premiums and premium equivalents

Fourth quarter 2013 Group Benefits core earnings were $55 million, a 41% increase compared with $39 million in fourth quarter 2012. Results reflect improved group long-term disability results, which tend to have favorable seasonality in the fourth quarter. Net income in fourth quarter 2013 rose 26% to $58 million compared with $46 million in fourth quarter 2012 due to higher core earnings, partially offset by lower realized capital gains.

7 of 16

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,880.83 +76.03 0.43%
S&P 500 2,071.75 +1.10 0.05%
NASDAQ 4,770.7030 +5.3230 0.11%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs