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November
4, 2009
Dear valued partners:
I am proud to share with you our third quarter results, which continue to
demonstrate how well our company has emerged from the challenges of the
last year. With core earnings of $660 million – an increase of over one
billion from the third quarter of 2008 – and new business indicators
showing improvement, our results demonstrate that The Hartford’s
protection and wealth management businesses are stable and competing
vigorously in our markets.
The Hartford’s capital position is also strong and able to withstand a
sharp decline in equities markets. During the quarter, our capital
position improved with the completion of a $900 million equity raise,
increasing our overall estimated sources of capital to $9.9 billion. In
Property & Casualty, our statutory surplus increased by about $400
million in the quarter to $6.8 billion – this is an $800 million increase
since the start of the year.
The Hartford’s book value per share jumped to $37.90, an 18% increase
from the second quarter. Overall, the company recorded a net loss of $220
million in the third quarter -- compared to a loss of $2.631 billion in
2008 -- driven by investment impairments and variable annuity hedging
losses.
Within Property & Casualty, our strong quarterly core earnings
reaffirm the strength of the franchise. Clearly we are executing well in
a challenging economy, as profitability remained strong and submission
flows continued to grow. For the quarter, our core earnings were an
impressive $246 million – 58% above the third quarter of 2008 and 16%
higher than the second quarter of 2009. And, the combined ratio for
ongoing operations was a very solid 93%.
The weak economy continues to reduce our industry’s exposure base and
pressure overall premium growth. Our 3Q 2009 written premium was $2.4
billion, down from the prior year. Still, I am pleased to say we continue
to gain traction in new business within all segments. This was
particularly evident in Personal Lines and Small Commercial where new
business grew +26% and +20% respectively.
Our customer service and claims handling capabilities continue to be
recognized as best in class with J.D. Power and Associates ranking us in
the top 5 of all carriers in both auto claims handling and new buyer
satisfaction.
In summary, our franchise is performing well, our capital position is
strong, and we continue to develop and enhance our product and service
offerings to better serve you and your customers. Thank you for your
partnership.
For more details on our results, please review the attached snapshot
and visit our website at www.thehartford.com.
View
The Hartford's press release
View
my short video message
Sincerely,
Juan Andrade
President and Chief Operating Officer
P&C Operations
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