The Hartford 2008 Annual Report Download - page 195

nine months of 2006. In addition, the rate of newly reported compensable claims for Rita and the 2004 hurricanes was
less than expected, resulting in a reduction of reserves for these hurricanes.
• Released Personal Lines auto liability reserves by $31 related to the fourth accident quarter of 2005 as a result of better
than expected frequency trends. During the third and fourth quarter of 2005, the Company had reduced the 2005
accident year loss and loss adjustment expense ratio for Personal Lines auto liability claims related to the first three
accident quarters of 2005. Favorable frequency for the fourth accident quarter of 2005 emerged during the fourth
quarter of 2005. However, the Company did not release reserves at that time, since reserve indications at only three
months of development were not reliable. The Company released reserves in 2006 after further development indicated
that early indications of reduced frequency were representative of a real trend. The $31 reserve release represented 2%
of the Company’s net reserves for Personal Lines auto liability claims as of December 31, 2005.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009