The Hartford 2013 Annual Report Download - page 76

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Premium Measures 2013 2012 2011
Policies in force at year end
Automobile 2,019 2,015 2,081
Homeowners 1,319 1,319 1,339
Total policies in force at year end 3,338 3,334 3,419
New business premium
Automobile $ 374 $ 332 $ 298
Homeowners $ 131 $ 117 $ 91
Policy count retention
Automobile 86% 85% 83%
Homeowners 87% 86% 84%
Renewal written pricing increase
Automobile 5% 4% 5%
Homeowners 7% 6% 8%
Renewal earned pricing increase
Automobile 5% 5% 6%
Homeowners 6% 7% 9%
Ratios and Supplemental Data 2013 2012 2011
Loss and loss adjustment expense ratio
Current accident year before catastrophes 65.9 65.7 67.7
Current accident year catastrophes 5.7 10.5 11.3
Prior year development (1.1)(3.9)(2.0)
Total loss and loss adjustment expense ratio 70.5 72.3 77.0
Expense ratio 24.7 25.1 24.3
Combined ratio 95.2 97.4 101.3
Current accident year catastrophes and prior year development 4.6 6.6 9.3
Combined ratio before catastrophes and prior year development 90.6 90.8 91.9
Product Combined Ratios 2013 2012 2011
Automobile 97.3 97.6 95.3
Homeowners 89.2 97.0 115.8
2014 Outlook
The Company expects low single-digit written premiums growth driven by business sold through independent agents to AARP members
and by AARP Direct. The Company expects the combined ratio before catastrophes and prior accident year development will be
between approximately 87.0 and 90.0 for 2014 compared to 90.6 in 2013. For auto, the current accident year loss and loss adjustment
expense ratio before catastrophes is expected to improve slightly for 2014, driven by earned pricing increases and lower claim frequency
partially offset by higher average claim severity. For homeowners, the current accident year loss and loss adjustment expense ratio
before catastrophes is expected to decline in 2014, driven by earned pricing increases in excess of increases in non-catastrophe loss cost
trends.