The Hartford 2012 Annual Report Download - page 85

Table of Contents

   
Premiums and other considerations $3,810 $4,147 $ 4,278
Net investment income 405 411 429
Net realized capital gains (losses) 40 (3) 46
   
Benefits, losses and loss adjustment expenses 3,029 3,306 3,331
Amortization of deferred policy acquisition costs 33 35 40
Insurance operating costs and other expenses 1,033 1,121 1,128
   
   
Income tax expense 31 166
   

Fully insured — ongoing premiums $ 3,745 $ 4,036 $4,166
Buyout premiums 349 58
Other 62 62 54
   
   

Loss ratio 79.5%79.5%77.6%
Loss ratio, excluding financial institutions 84.1%84.5%82.8%
Expense ratio 28.0%28.2%27.7%
Expense ratio, excluding financial institutions 24.1%23.7%23.3%

   
Effect of net realized gains (losses), net of tax on after-tax margin 0.6%0.1%0.5%
   
Group Benefits has a block of financial institution business that is subject to a profit sharing arrangement with a third party. This business comprised
approximately 8% to 10% of the segment’s 2012, 2011 and 2010 premiums and other considerations (excluding buyouts). With respect to the segment’s core
earnings, the financial institution business comprised 2% for 2012, 2% for 2011, 6% for 2010, excluding a one-time payment to a third party administrator
in 2011.
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