The Hartford Financial Services Group Inc. said yesterday that net income rose 68 percent in the 2006 fourth quarter, helped by record property-casualty underwriting and low catastrophe costs.
Hartford said net earnings were $783 million compared with $467 million in the year-earlier quarter.
For the entire year, the company reported a 21 percent increase in net income to $2.7 billion, compared with $2.3 billion for 2005.
Chief Executive Officer Ramani Ayer said the company exceeded targets in all business segments, reporting a return on equity for the year of 16 percent.
The Hartford said that low catastrophe costs and strong underlying performance led to a combined ratio of 89.3 for 2006.
Written premiums for business insurance grew 2 percent for the quarter to $1.3 billion, with growth in small commercial policies fueled in part by new agents partially offsetting a loss in middle income business.
In personal lines, net written premiums rose 4 percent to $941 million. Written premiums grew 9 percent through the AARP affiliate program and 6 percent through independent agents, while nonstandard auto premiums continued to decline.
In the independent agency channel, new products and an expanded distribution network contributed to premium growth, The Hartford said.
Specialty commercial premiums for the quarter decreased 1 percent on a year over year basis to $369 million, the insurer reported.
Written premiums in the company's professional liability, fidelity and surety businesses grew 11 percent over the prior year, reflecting new business generated from small commercial and middle market agents, the company said.
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