The Hartford Financial Services Group has announced a 30 percent increase in core earnings per diluted share for the third quarter 2000. The increase is reportedly driven by asset growth in the company’s life operations, improving property/casualty trends and lower catastrophe losses.
Core earnings for the quarter were $1.07 per diluted share, compared with $0.82 per diluted share for the same period 1999. Assets under management for worldwide life operations increased 21 percent, while property/casualty, small commercial continued its double-digit written premium growth. The middle market has begun to show favorable results.
The Hartford’s net income increased 34 percent to $250 million in the third quarter compared with $186 million for the third quarter 1999. Third quarter net income of $1.09 per diluted share was a 33 percent increase over the $0.82 per diluted share for the same period last year.
Revenues for the third quarter totaled $3.8 billion, a 10 percent increase over 1999 third-quarter revenues of $3.4 billion, due primarily to a significant increase in fee revenue in the individual annuity segment and premium growth in small commercial, personal lines and reinsurance. Core earnings for worldwide property/casualty operations increased 26 percent to $113 million in the third quarter, compared with $90 million for the third quarter of 1999.
The rise was attributed to better personal lines results, a lower level of catastrophe losses and a firming pricing environment. Net written premiums for the quarter were $1.9 billion, a 12 percent increase from the same period last year. Highlighting the increase was premium growth of 17 percent for the Select Customer operation of small commercial, 16 percent for large commercial and 12 percent for reinsurance, along with improving trends in the commercial middle market where price increases are holding and retention rates are improving. Written premiums for personal auto and homeowners insurance sold to members of AARP and other affinity groups increased 8 percent.
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