SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 16, 2002
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
-------------------------------------------
(Exact name of registrant as
specified in its charter)
Delaware 0-19277
(State or other jurisdiction (Commission
of Incorporation) File Number)
13-3317783
(IRS Employer
Identification No.)
The Hartford Financial Services Group, Inc.
Hartford Plaza
Hartford, Connecticut
(Address of principal executive offices of registrant)
06115-1900
Zip Code
(860) 547-5000
Registrant's telephone number
Item 9. Regulation FD Disclosure:
Simultaneously with the filing of this Current Report on Form 8-K, Stuart M.
Carlisle, the Director of Investor Relations of The Hartford Financial Services
Group, Inc., sent the following notice to members of the investment community:
To Members of the Financial Community:
We would like to bring to your attention two changes to our Investor Financial
Supplement in our North American Property Casualty results that will be shown
in our first quarter earnings (Monday, April 22, after the close of the market,
conference call on Tuesday, at 11:00 ET).
1) In our Business Insurance segment, written premium had previously been
disclosed in three lines (Select Customer, Key Accounts and Other). The Other
line included commercial programs and marine business that can be classified
as either small commercial or middle markets business. Going forward,
premiums in Middle Markets will now include Key Accounts, medium-sized
commercial programs and marine business, while Small Commercial will include
Select Customer and small commercial programs; the Other line will disappear.
The change is intended to clarify the financial reporting within Business
Insurance and is consistent with how we manage these two businesses.
2) Our personal lines results have previously been separated between the
Affinity Personal Lines and Personal Insurance segments. We have combined the
reporting of these businesses commensurate with the recent appointment of
Paul Kennedy, Senior Vice President of the Personal Lines Division, who now
oversees both lines. The combination provides us with more scale and allows
us to better leverage the product development, service and technology
capabilities across all personal lines. Since we treat them as one business
unit organizationally, it made sense to amend our financial reporting to
combine the segments. We are also now disclosing written premiums for AARP,
Affinity, Standard and Non-Standard business.
We have provided three years of quarterly historical information on the attached
spreadsheets and posted these changes on our website so that you can update your
models accordingly. Please call me should you have any questions on these
changes.
Best.
/s/ Stuart M. Carlisle
2
BUSINESS INSURANCE
1999 1999 1999 1999 1999
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 560 567 559 541 2,227
Chg UPR 8 14 12 (9) 25
Earned Premium 552 553 547 550 2,202
Loss and Loss Adjustment Exp 390 385 388 362 1,525
Underwriting Expenses 182 192 188 204 766
Dividends to Policyholders 8 13 11 11 43
Other Adjustments -- (3) (1) (5) (9)
AUI EXCLUDING SEPT. 11 (28) (34) (39) (22) (123)
SEPTEMBER 11 TERRORIST ATTACK -- -- -- -- --
UNDERWRITING RESULTS (28) (34) (39) (22) (123)
Loss Ratio 59.1 57.7 59.8 54.5 57.8
Total Loss Exp Ratio 11.5 11.7 11.2 11.3 11.4
Total Expense Ratio 32.7 33.8 33.6 37.8 34.4
Expense ratio including loss 44.2 45.6 44.8 49.1 45.9
Dividend Ratio 1.5 2.4 1.9 1.9 1.9
COMB RATIO EXCLUDING SEPT. 11 104.8 105.7 106.5 105.5 105.6
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- -- -- --
COMBINED RATIO 104.8 105.7 106.5 105.5 105.6
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WRITTEN PREMIUM
Small Commercial 231 244 249 247 971
Middle Market 329 323 310 294 1,256
TOTAL 560 567 559 541 2,227
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2000 2000 2000 2000 2000
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 579 605 603 618 2,405
Chg UPR 24 37 26 20 107
Earned Premium 555 568 577 598 2,298
Loss and Loss Adjustment Exp 389 375 375 367 1,506
Underwriting Expenses 202 199 205 207 813
Dividends to Policyholders 7 7 7 8 29
Other Adjustments (3) (1) 1 3 --
AUI EXCLUDING SEPT. 11 (40) (12) (11) 13 (50)
SEPTEMBER 11 TERRORIST ATTACK -- -- -- -- --
UNDERWRITING RESULTS (40) (12) (11) 13 (50)
Loss Ratio 57.0 53.9 52.3 46.8 52.4
Total Loss Exp Ratio 13.1 12.0 12.6 14.5 13.1
Total Expense Ratio 34.9 32.9 34.0 33.4 33.8
Expense ratio including loss 48.0 44.9 46.6 47.9 46.9
Dividend Ratio 1.3 1.3 1.2 1.4 1.3
COMB RATIO EXCLUDING SEPT. 11 106.3 100.1 100.2 96.1 100.6
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- -- -- --
COMBINED RATIO 106.3 100.1 100.2 96.1 100.6
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WRITTEN PREMIUM
Small Commercial 285 294 291 299 1,169
Middle Market 294 311 312 319 1,236
TOTAL 579 605 603 618 2,405
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2001 2001 2001 2001 2001
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 702 714 718 752 2,886
Chg UPR 82 74 38 47 241
Earned Premium 620 640 680 705 2,645
Loss and Loss Adjustment Exp 415 416 436 437 1,704
Underwriting Expenses 225 218 232 251 926
Dividends to Policyholders 13 6 7 8 34
Other Adjustments (10) (10) (1) (1) (22)
AUI EXCLUDING SEPT. 11 (23) 10 6 10 3
SEPTEMBER 11 TERRORIST ATTACK -- -- (245) -- (245)
UNDERWRITING RESULTS (23) 10 (239) 10 (242)
Loss Ratio 54.5 52.9 52.2 50.1 52.3
Total Loss Exp Ratio 12.4 12.1 12.1 11.8 12.1
Total Expense Ratio 32.1 30.4 32.3 33.4 32.1
Expense ratio including loss 44.6 42.6 44.3 45.2 44.2
Dividend Ratio 2.1 0.9 1.0 1.2 1.3
COMB RATIO EXCLUDING SEPT. 11 101.2 96.4 97.5 96.5 97.8
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- 36.7 -- 9.3
COMBINED RATIO 101.2 96.4 134.2 96.5 107.1
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WRITTEN PREMIUM
Small Commercial 351 359 359 378 1,447
Middle Market 351 355 359 374 1,439
TOTAL 702 714 718 752 2,886
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PERSONAL LINES INSURANCE
1999 1999 1999 1999 1999
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 560 635 651 624 2,470
Chg UPR (6) 56 57 20 127
Earned Premium 566 579 594 604 2,343
Loss and Loss Adjustment Exp 386 445 457 444 1,732
Underwriting Expenses 152 159 166 162 639
Dividends to Policyholders -- -- -- (5) (5)
Other Adjustments (15) (27) (15) -- (57)
AUI EXCLUDING SEPT. 11 43 2 (14) 3 34
SEPTEMBER 11 TERRORIST ATTACK -- -- -- -- --
UNDERWRITING RESULTS 43 2 (14) 3 34
Loss Ratio 60.7 66.2 66.0 63.2 64.1
Total Loss Exp Ratio 7.5 10.6 10.9 10.3 9.8
Total Expense Ratio 27.1 25.1 25.6 25.9 25.9
Expense ratio including loss 34.6 35.6 36.5 36.2 35.7
Dividend Ratio -- -- -- (0.9) (0.2)
COMB RATIO EXCLUDING SEPT. 11 95.3 101.8 102.5 98.6 99.6
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- -- -- --
COMBINED RATIO 95.3 101.8 102.5 98.6 99.6
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WRITTEN PREMIUM
AARP 324 375 362 344 1,405
Affinity Business Unit 22 27 33 40 122
Standard 143 170 193 182 688
NonStandard 71 63 63 58 255
TOTAL 560 635 651 624 2,470
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2000 2000 2000 2000 2000
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 613 692 686 656 2,647
Chg UPR (1) 57 39 5 100
Earned Premium 614 635 647 651 2,547
Loss and Loss Adjustment Exp 454 497 483 487 1,921
Underwriting Expenses 158 168 167 160 653
Dividends to Policyholders -- -- -- -- --
Other Adjustments (2) (11) (8) (8) (29)
AUI EXCLUDING SEPT. 11 4 (19) 5 12 2
SEPTEMBER 11 TERRORIST ATTACK -- -- -- -- --
UNDERWRITING RESULTS 4 (19) 5 12 2
Loss Ratio 63.2 67.2 64.3 64.0 64.7
Total Loss Exp Ratio 10.7 11.1 10.3 10.9 10.8
Total Expense Ratio 25.8 24.2 24.4 24.4 24.6
Expense ratio including loss 36.5 35.4 34.7 35.3 35.4
Dividend Ratio -- -- -- -- --
COMB RATIO EXCLUDING SEPT. 11 99.6 102.5 99.0 99.3 100.1
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- -- -- --
COMBINED RATIO 99.6 102.5 99.0 99.3 100.1
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WRITTEN PREMIUM
AARP 343 399 386 364 1,492
Affinity Business Unit 43 41 39 44 167
Standard 166 191 201 187 745
NonStandard 61 61 60 61 243
TOTAL 613 692 686 656 2,647
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2001 2001 2001 2001 2001
QTR 1 QTR 2 QTR 3 QTR 4 YEAR
Written Premium 662 743 742 713 2,860
Chg UPR (3) 62 48 6 113
Earned Premium 665 681 694 707 2,747
Loss and Loss Adjustment Exp 485 561 543 575 2,164
Underwriting Expenses 167 174 178 168 687
Dividends to Policyholders -- -- -- -- --
Other Adjustments (3) (11) (10) (2) (26)
AUI EXCLUDING SEPT. 11 16 (43) (17) (34) (78)
SEPTEMBER 11 TERRORIST ATTACK -- -- (9) -- (9)
UNDERWRITING RESULTS 16 (43) (26) (34) (87)
Loss Ratio 62.0 70.3 66.5 69.7 67.2
Total Loss Exp Ratio 10.8 12.2 11.9 11.5 11.6
Total Expense Ratio 25.2 23.5 23.8 23.6 24.0
Expense ratio including loss 36.0 35.6 35.7 35.1 35.6
Dividend Ratio -- -- -- -- --
COMB RATIO EXCLUDING SEPT. 11 98.1 106.0 102.2 104.8 102.8
COMBINED RATIO IMPACT OF SEPT. 11 TERRORIST ATTACK -- -- 1.2 -- 0.3
COMBINED RATIO 98.1 106.0 103.4 104.8 103.1
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WRITTEN PREMIUM
AARP 372 431 426 409 1,638
Affinity Business Unit 50 52 49 50 201
Standard 180 198 209 196 783
NonStandard 60 62 58 58 238
TOTAL 662 743 742 713 2,860
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Date: April 16, 2002 By: /s/ Neal S. Wolin
-------------------------
Name: Neal S. Wolin
Title: Executive Vice President and
General Counsel
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