The Hartford 2008 Annual Report Download - page 216

Table of Contents
PERSONAL LINES
Personal Lines sells automobile, homeowners and home-based business coverages directly to the consumer and through a
network of independent agents. Most of the Company’s personal lines business sold directly to the consumer is to the
members of AARP through a direct marketing operation. 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] 2008 2007 2006
Business Unit
AARP $ 2,813 $ 2,750 $ 2,580
Agency 1,050 1,123 1,100
Other 62 74 197
Total $ 3,925 $ 3,947 $ 3,877
Product Line
Automobile $ 2,829 $ 2,848 $ 2,856
Homeowners 1,096 1,099 1,021
Total $ 3,925 $ 3,947 $ 3,877
Earned Premiums [1] 2008 2007 2006
Business Unit
AARP $ 2,778 $ 2,681 $ 2,466
Agency 1,080 1,123 1,068
Other 68 85 226
Total $ 3,926 $ 3,889 $ 3,760
Product Line
Automobile $ 2,824 $ 2,822 $ 2,792
Homeowners 1,102 1,067 968
Total $ 3,926 $ 3,889 $ 3,760
[1] The difference between written premiums and earned premiums is attributable to the change in unearned premium
reserve.
Premium Measures 2008 2007 2006
Policies in force at year end
Automobile 2,323,882 2,349,402 2,276,165
Homeowners 1,455,954 1,481,542 1,440,399
Total policies in force at year end 3,779,836 3,830,944 3,716,564
New business premium
Automobile $ 364 $ 424 $ 469
Homeowners $ 106 $ 140 $ 161
Premium Renewal Retention
Automobile 87% 88% 87%
Homeowners 89% 96% 94%
Written Pricing Increase (Decrease)
Automobile 2% — (1%)
Homeowners 2% 5% 5%
Earned Pricing Increase (Decrease)
Automobile 1% (1%) (1%)
Homeowners 3% 6% 5%
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009