The Hartford 2008 Annual Report Download - page 242

Amortization of deferred policy acquisition costs decreased by $10 due to the decrease in earned premium, partially offset
by the effect of an increase in net acquisition costs related to writing a greater mix of higher net commission small
commercial and private directors’ and officers’ insurance. Insurance operating costs and expenses increased by $4, primarily
due to an increase in IT costs. The expense ratio increased by 0.9 points, to 28.3, primarily due to the increase in insurance
operating costs and expenses, the increase in net acquisition costs for directors’ and officers’ insurance and the effect of the
decrease in earned premium.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009