The Hartford 2008 Annual Report Download - page 162

Table of Contents
PROPERTY & CASUALTY
Executive Overview
Property & Casualty is organized into five reporting segments: the underwriting segments of Personal Lines, Small
Commercial, Middle Market and Specialty Commercial (collectively “Ongoing Operations”); and the Other Operations
segment. Property & Casualty provides a number of coverages, as well as insurance related services, to businesses
throughout the United States, including workers’ compensation, property, automobile, liability, umbrella, specialty casualty,
marine, livestock, fidelity, surety, professional liability and directors and officers’ liability coverages. Property & Casualty
also provides automobile, homeowners and home-based business coverage to individuals throughout the United States as
well as insurance-related services to businesses.
Property & Casualty derives its revenues principally from premiums earned for insurance coverages provided to insureds,
investment income, and, to a lesser extent, from fees earned for services provided to third parties and net realized capital
gains and losses. Premiums charged for insurance coverages are earned principally on a pro rata basis over the terms of the
related policies in force.
Service fees principally include revenues from third party claims administration services provided by Specialty Risk
Services and revenues from member contact center services provided through the AARP Health program.
Total Property & Casualty Financial Highlights
Earned Premiums
Earned premium growth is an objective for Personal Lines, Small Commercial and Middle Market. Earned premium growth
is not a specific objective for Specialty Commercial since Specialty Commercial is largely comprised of transactional
businesses where premium writings may fluctuate based on the segment’s view of perceived market opportunity. Written
premiums are earned over the policy term, which is six months for certain Personal Lines auto business and 12 months for
substantially all of the remainder of the Company’s business. Written pricing, new business growth and premium renewal
retention are factors that contribute to growth in written and earned premium.
Written premiums [1] 2008 2007 2006
Personal Lines $ 3,925 $ 3,947 $ 3,877
Small Commercial 2,696 2,747 2,728
Middle Market 2,242 2,326 2,515
Specialty Commercial 1,361 1,415 1,538
Other Operations 7 5 4
Total $ 10,231 $ 10,440 $ 10,662
Earned premiums [1]
Personal Lines $ 3,926 $ 3,889 $ 3,760
Small Commercial 2,724 2,736 2,652
Middle Market 2,299 2,420 2,523
Specialty Commercial 1,382 1,446 1,493
Other Operations 7 5 5
Total $ 10,338 $ 10,496 $ 10,433
[1] The difference between written premiums and earned premiums is attributable to the change in unearned premium
reserve.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009