"The results from the quarter show how well our management team has remained focused on operations and delivering results for shareholders," said The Hartford Chief Executive Ramani Ayer. Mr. Ayer also said his company is raising its profit expectation for the full-year 2005, to $7.40-and-$7.70 on a per-share basis, from $7.25-and-$7.55 a share.

Compared with $666 million 2005 first quarter profit, the insurance giant posted $568 million during the year-ago period.

The Hartford's quarterly operating income, which excludes net realized gains and losses, was $583 million, gaining from $501 million one year ago.

The Hartford's property-casualty divisions posted quarterly underwriting profit of $257 million, a 65 percent boost from $156 million reported one year ago.

Combined ratio for the ongoing p-c operations in the quarter was 88.6, improving from 89.8 one year ago. Written premium grew to $2.6 billion, 8 percent over the first quarter of last year. Investment income from p-c businesses rose 8 percent to $337 million.

"The property-casualty operation achieved its most profitable quarter ever due to excellent underwriting results and higher investment income," Mr. Ayer noted.

Looking at p-c segments, personal lines saw its profit improve 20 percent to $127 million from $106 million. Specialty-commercial lines showed a dramatic turnaround, posting a $40 million profit compared with $110 million loss one year ago.

Business insurance lines, however, skidded 40 percent to $118 million profit from $225 million last year as prices moderated. The Hartford observed that for the middle market in business insurance, rising competition, coupled with the insurer's commitment to maintaining acceptable margins prompted a decline in new business.

Although investigations by the SEC and Mr. Spitzer have so far resulted in no formal moves against The Hartford, the company said it is setting the $66 million reserve in anticipation that some action will be taken down the road.

The Hartford had announced earlier this year that the SEC's Division of Enforcement and Mr. Spitzer are probing the insurer's variable annuity and mutual-fund operations related to market timing. Market timing referred to a rapid and frequent trading in mutual funds that can benefit some well-connected investors to the detriment of others.

"We are working to give regulators what they need to conclude their work so we can put these matters behind us," Mr. Ayer said.