The Hartford 2014 Annual Report Download - page 70
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Please find page 70 of the 2014 The Hartford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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Written and earned premiums
Written premium is a statutory accounting financial measure which represents the amount of premiums charged for policies issued, net of reinsurance, during
a fiscal period. Earned premium is a U.S. GAAP and statutory measure. Premiums are considered earned and are included in the financial results on a pro rata
basis over the policy period. Management believes that written premium is a performance measure that is useful to investors as it reflects current trends in the
Company’s sale of property and casualty insurance products. Written and earned premium are recorded net of ceded reinsurance premium.
Traditional life insurance type products, such as those sold by Group Benefits, collect premiums from policyholders in exchange for financial protection for
the policyholder from a specified insurable loss, such as death or disability. These premiums together with net investment income earned from the overall
investment strategy are used to pay the contractual obligations under these insurance contracts. Two major factors, new sales and persistency, impact
premium growth. Sales can increase or decrease in a given year based on a number of factors, including but not limited to, customer demand for the
Company’s product offerings, pricing competition, distribution channels and the Company’s reputation and ratings. Persistency refers to the percentage of
policies remaining in-force from year-to-year.
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