The Hartford 2007 Annual Report Download - page 106

106
PERSONAL LINES
Personal Lines provides automobile, homeowners’ and home-based business coverages to the members of AARP through a direct
marketing operation and to individuals who prefer local agent involvement through a network of independent agents in the standard
personal lines market (“Standard”). Up until the sale of the business on November 30, 2006, the Company also sold non-standard auto
insurance through the Company’ s Omni Insurance Group, Inc. (“Omni”) subsidiary. Personal Lines also operates a member contact
center for health insurance products offered through the AARP Health program. The Hartford’ s exclusive licensing arrangement with
AARP continues until January 1, 2020 for automobile, homeowners and home-based business. The AARP Health program agreement
continues through 2009.
Written Premiums [1] 2007 2006 2005
Business Unit
AARP $ 2,750 $ 2,580 $ 2,373
Agency 1,123 1,100 1,020
Other 74 197 283
Total $ 3,947 $ 3,877 $ 3,676
Product Line
Automobile $ 2,848 $ 2,856 $ 2,753
Homeowners 1,099 1,021 923
Total $ 3,947 $ 3,877 $ 3,676
Earned Premiums [1] 2007 2006 2005
Business Unit
AARP $ 2,681 $ 2,466 $ 2,296
Agency 1,123 1,068 997
Other 85 226 317
Total $ 3,889 $ 3,760 $ 3,610
Product Line
Automobile $ 2,822 $ 2,792 $ 2,728
Homeowners 1,067 968 882
Total $ 3,889 $ 3,760 $ 3,610
[1] The difference between written premiums and earned premiums is attributable to the change in unearned premium reserve.
Premium Measures 2007 2006 2005
Policies in-force at year end
Automobile 2,349,402 2,276,165 2,222,689
Homeowners 1,481,542 1,440,399 1,365,585
Total policies in-force at year end 3,830,944 3,716,564 3,588,274
New business premium
Automobile $ 424 $ 469 $ 426
Homeowners $ 140 $ 161 $ 131
Premium Renewal Retention
Automobile 88% 87% 87%
Homeowners 96% 94% 94%
Written Pricing Increase (Decrease)
Automobile — (1%) —
Homeowners 5% 5% 6%
Earned Pricing Increase (Decrease)
Automobile (1%) (1%) 1%
Homeowners 6% 5% 7%
Earned Premiums
Year ended December 31, 2007 compared to the year ended December 31, 2006
Earned premiums increased $129, or 3%, primarily due to earned premium growth in both AARP and Agency, partially offset by a
reduction in Other earned premium.
• AARP earned premium grew $215, or 9%, reflecting growth in the size of the AARP target market, the effect of direct marketing
programs and the effect of cross selling homeowners insurance to insureds who have auto policies.