It seems like results are bad, but there are several ‘one-time’, or ‘hopefully one-time’ charges included in 2nd quarter results. That makes year-to-year comparisons challenging, and interpreting the absolute results even more so.
There are some positives for the future; i.e. divestiture of non-core units, such as the life unit sold to Uncle Warren. The results for the P&C segment aren’t great, but underlying changes listed provide potential for improvement in the near term.
@Agent: more/ as dysfunctional as The Travelers? How do you measure that, and what is the source of your information?
Agent2, I refer you to the article last week on Travelers. Did you not catch that one? It started with they made a $925 million profit for the quarter so they decided to cut 450 jobs. They also woke up after 4 years in limbo of taking rate and realized their agents were moving business due to uncompetitive rates on Personal Auto, HO & Small Business. My Travelers rep said they would roll out a new Auto product next February. Boy, that is sure moving fast. Hartford, on the other hand has been struggling for some time. They got into trouble with the sub prime mortgage mess, has to be bailed out and now are selling the Life Business. I don’t run into them on the street so the jury is out on when and if they will be a factor again.
It is not dysfunctional to reduce excessive expenses. The Travelers management decision to reduce 450 jobs in personal auto, via attrition and otherwise, is based only on auto results. I sense resentment based on employees and agents adversely affected not being given an opportunity to join or sell commercial lines, if they can make the transition. Rolling out changes too fast is one factor among many that got The Hartford into their mortgage mess trouble. So, The Travelers should cautiously make changes to their auto book, to not lose further ground. Mistakes? Yes. Dysfunctional? No.
Hartford is even more dysfunctional as Travelers although Travelers continues to make money despite themselves.
It seems like results are bad, but there are several ‘one-time’, or ‘hopefully one-time’ charges included in 2nd quarter results. That makes year-to-year comparisons challenging, and interpreting the absolute results even more so.
There are some positives for the future; i.e. divestiture of non-core units, such as the life unit sold to Uncle Warren. The results for the P&C segment aren’t great, but underlying changes listed provide potential for improvement in the near term.
@Agent: more/ as dysfunctional as The Travelers? How do you measure that, and what is the source of your information?
Agent2, I refer you to the article last week on Travelers. Did you not catch that one? It started with they made a $925 million profit for the quarter so they decided to cut 450 jobs. They also woke up after 4 years in limbo of taking rate and realized their agents were moving business due to uncompetitive rates on Personal Auto, HO & Small Business. My Travelers rep said they would roll out a new Auto product next February. Boy, that is sure moving fast. Hartford, on the other hand has been struggling for some time. They got into trouble with the sub prime mortgage mess, has to be bailed out and now are selling the Life Business. I don’t run into them on the street so the jury is out on when and if they will be a factor again.
It is not dysfunctional to reduce excessive expenses. The Travelers management decision to reduce 450 jobs in personal auto, via attrition and otherwise, is based only on auto results. I sense resentment based on employees and agents adversely affected not being given an opportunity to join or sell commercial lines, if they can make the transition. Rolling out changes too fast is one factor among many that got The Hartford into their mortgage mess trouble. So, The Travelers should cautiously make changes to their auto book, to not lose further ground. Mistakes? Yes. Dysfunctional? No.
Hartford is one of the most “politically correct” cos. out there, and that has hurt them.