The Hartford 2008 Annual Report Download - page 193

Table of Contents
A rollforward of liabilities for unpaid losses and loss adjustment expenses by segment for Property & Casualty for the year
ended December 31, 2006 follows:
For the year ended December 31, 2006
Personal Small Middle Specialty Ongoing Other Total
Lines Commercial Market Commercial Operations Operations P&C
Beginning liabilities for
unpaid losses and loss
adjustment expenses-gross $ 2,152 $ 3,023 $ 4,185 $ 6,060 $ 15,420 $ 6,846 $ 22,266
Reinsurance and other
recoverables 385 192 565 2,306 3,448 1,955 5,403
Beginning liabilities for
unpaid losses and loss
adjustment expenses-net 1,767 2,831 3,620 3,754 11,972 4,891 16,863
Provision for unpaid losses
and loss adjustment
expenses
Current accident year before
catastrophes 2,396 1,509 1,577 1,025 6,507 — 6,507
Current accident year
catastrophes 120 34 36 9 199 — 199
Prior years (38) (75) 13 36 (64) 360 296
Total provision for unpaid
losses and loss adjustment
expenses 2,478 1,468 1,626 1,070 6,642 360 7,002
Payments (2,309) (1,092) (1,189) (725) (5,315) (835) (6,150)
Net reserves of Omni business
sold (111) — — — (111) — (111)
Ending liabilities for unpaid
losses and loss adjustment
expenses-net 1,825 3,207 4,057 4,099 13,188 4,416 17,604
Reinsurance and other
recoverables 134 214 479 2,260 3,087 1,300 4,387
Ending liabilities for unpaid
losses and loss adjustment
expenses-gross $ 1,959 $ 3,421 $ 4,536 $ 6,359 $ 16,275 $ 5,716 $ 21,991
Earned premiums $ 3,760 $ 2,652 $ 2,523 $ 1,493 $ 10,428 $ 5 $ 10,433
Loss and loss expense paid
ratio [1] 61.4 41.1 47.3 48.4 51.0
Loss and loss expense incurred
ratio 65.9 55.3 64.6 71.5 63.7
Prior accident year
development (pts.) [2] (1.0) (2.8) 0.5 2.5 (0.6)
[1] The “loss and loss expense paid ratio” represents the ratio of paid loss and loss adjustment expenses to earned
premiums.
[2] “Prior accident year development (pts)” represents the ratio of prior accident year development to earned premiums.
114
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009