The Hartford 2008 Annual Report Download - page 206

Table of Contents
TOTAL PROPERTY & CASUALTY
Operating Summary 2008 2007 2006
Earned premiums $ 10,338 $ 10,496 $ 10,433
Net investment income 1,253 1,687 1,486
Other revenues [1] 504 496 473
Net realized capital gains (losses) (1,877) (172) 9
Total revenues 10,218 12,507 12,401
Losses and loss adjustment expenses
Current accident year before catastrophes 6,390 6,692 6,507
Current accident year catastrophes 543 177 199
Prior accident years (226) 48 296
Total losses and loss adjustment expenses 6,707 6,917 7,002
Amortization of deferred policy acquisition costs 2,095 2,104 2,106
Insurance operating costs and expenses 724 716 580
Other expense 695 693 643
Total benefits, losses and expenses 10,221 10,430 10,331
Income (loss) before income taxes (3) 2,077 2,070
Income tax expense (benefit) (95) 570 551
Net income [2] $ 92 $ 1,507 $ 1,519
Net Income
Ongoing Operations $ 189 $ 1,477 $ 1,554
Other Operations (97) 30 (35)
Total Property & Casualty net income $ 92 $ 1,507 $ 1,519
[1] Primarily servicing revenue.
[2] Includes net realized capital gains (losses), after tax, of $(1,223), $(112) and $46 for the years ended December 31,
2008, 2007 and 2006, respectively.
Year ended December 31, 2008 compared to the year ended December 31, 2007
Net income decreased by $1,415, from net income of $1,507 in 2007 to net income of $92 in 2008. The decrease in net
income was due to a $1,288 decrease in Ongoing Operations’ net income and a decrease in Other Operations’ results, from
net income of $30 in 2007 to a net loss of $97 in 2008. See the Ongoing Operations and Other Operations segment MD&A
discussions for an analysis of the underwriting results and investment performance driving the decrease in net income.
Year ended December 31, 2007 compared to the year ended December 31, 2006
Net income decreased by $12, or 1%, as a result of a $77 decrease in Ongoing Operations’ net income, partially offset by an
improvement in Other Operations’ results, from a net loss of $35 in 2006 to net income of $30 in 2007. See the Ongoing
Operations and Other Operations segment MD&A discussions for an analysis of the underwriting results and investment
performance driving the change in net income.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009