The Hartford 2008 Annual Report Download - page 183

Table of Contents
Current accident year catastrophes
For 2008, net current accident year catastrophe loss and loss adjustment expenses totaled $543, of which $237 related to
hurricane Ike. In addition to the $237 of net catastrophe loss and loss adjustment expenses from hurricane Ike, the Company
incurred $20 of assessments due to hurricane Ike. The following table shows total current accident year catastrophe impacts
in the year ended December 31, 2008:
For the Year Ended December 31, 2008
Personal Small Middle Specialty Ongoing Other Total
Lines Commercial Market Commercial Operations Operations P&C
Gross incurred claim and
claim adjustment
expenses for current
accident year
catastrophes $ 260 $ 124 $ 130 $ 58 $ 572 $ — $ 572
Ceded claim and claim
adjustment expenses for
current accident year
catastrophes 2 2 14 11 29 — 29
Net incurred claim and
claim adjustment
expenses for current
accident year
catastrophes 258 122 116 47 543 — 543
Assessments owed to Texas
Windstorm Insurance
Association due to
hurricane Ike 10 7 3 — 20 — 20
Reinstatement premium
ceded to reinsurers due to
hurricane Ike 1 — — — 1 — 1
Total current accident
year catastrophe
impacts $ 269 $ 129 $ 119 $ 47 $ 564 $ — $ 564
A portion of the gross incurred loss and loss adjustment expenses are recoverable from reinsurers under the Company’s
principal catastrophe reinsurance program in addition to other reinsurance programs. Reinsurance recoveries under the
Company’s principal catastrophe reinsurance program, which covers multiple lines of business, are allocated to the segments
in accordance with a pre-established methodology that is consistent with the method used to allocate the ceded premium to
each segment.
The Company’s estimate of ultimate loss and loss expenses arising from hurricanes and other catastrophes is based on
covered losses under the terms of the policies. The Company does not provide residential flood insurance on its Personal
Lines homeowners policies so the Company’s estimate of hurricane losses on Personal Lines homeowners business does not
include any provision for damages arising from flood waters. The Company acts as an administrator for the Write Your Own
flood program on behalf of the National Flood Insurance Program under FEMA, for which it earns a fee for collecting
premiums and processing claims. Under the program, the Company services both personal lines and commercial lines flood
insurance policies and does not assume any underwriting risk. As a result, catastrophe losses in the above table do not
include any losses related to the Write Your Own flood program.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009