-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N5LlXRRHFEe6cHBxfXlm0fQYg9N4Mw7+sUWbTZJhmtqjDhTLhhR8WY+lGP9ZXjk1 wqmOr80rmLzNoDh1qafISg== 0000948572-03-000023.txt : 20030508 0000948572-03-000023.hdr.sgml : 20030508 20030508163148 ACCESSION NUMBER: 0000948572-03-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030508 ITEM INFORMATION: Other events FILED AS OF DATE: 20030508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD FINANCIAL SERVICES GROUP INC/DE CENTRAL INDEX KEY: 0000874766 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 133317783 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13958 FILM NUMBER: 03688369 BUSINESS ADDRESS: STREET 1: HARTFORD PLZ CITY: HARTFORD STATE: CT ZIP: 06115 BUSINESS PHONE: 8605475000 MAIL ADDRESS: STREET 1: HARTFORD PLAZA T-15 CITY: HARTFORD STATE: CT ZIP: 06115 FORMER COMPANY: FORMER CONFORMED NAME: ITT HARTFORD GROUP INC /DE DATE OF NAME CHANGE: 19930328 8-K 1 b8k050803.txt THE HARTFORD FINANCIAL SERVICES GROUP, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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): May 8, 2003 --------------- THE HARTFORD FINANCIAL SERVICES GROUP, INC. ------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-19277 13-3317783 - ---------------------------- ------------- ------------------- (State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) The Hartford Financial Services Group, Inc. Hartford Plaza Hartford, Connecticut 06115-1900 --------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (860) 547-5000 -------------- Item 5. Other Events. This Current Report on Form 8-K is filed on behalf of The Hartford Financial Services Group, Inc. ("The Hartford") to provide supplemental financial disclosure relating to the three fiscal years ended December 31, 2002. Specifically, this report provides historical underwriting ratios under United States generally accepted accounting principles ("GAAP") relating to certain of The Hartford's property & casualty segments and related reconciliation detail. GAAP Underwriting Ratios - ------------------------ In The Hartford's Annual Report on Form 10-K for the year ended December 31, 2002, (the "2002 10-K") which was filed with the SEC on March 3, 2003, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included five underwriting ratios for each of The Hartford's property & casualty segments, other than certain run-off operations. The five underwriting ratios are loss ratio, loss adjustment expense ratio, expense ratio, dividend ratio and combined ratio. Consistent with The Hartford's historical practice, the underwriting ratios were calculated based on statutorily prescribed insurance accounting standards. Two of the elements required by these standards in the calculation of these ratios are prepared differently under GAAP. In the future, in light of the SEC's recent promulgation of Regulation G pursuant to the Securities Exchange Act of 1934 (the "Exchange Act"), The Hartford will no longer report in its Exchange Act filings statutory underwriting ratios, and will instead report underwriting ratios based solely on financial measures calculated in accordance with GAAP. To aid investors in comparing The Hartford's future financial results with historical results, this report includes GAAP underwriting ratios for each of the applicable property & casualty segments for the twelve fiscal quarters in the period ended December 31, 2002. Reconciliation of Statutory Accounting Measures - ----------------------------------------------- The expense ratios and the expense component of the combined ratios set forth in the 2002 10-K were based on written premiums, which are calculated based on statutory accounting principles. In the 2002 10-K, each measure of written premium was reconciled to earned premium, which is the most directly comparable financial measure calculated and presented in accordance with GAAP. The statutory underwriting ratios set forth in the 2002 10-K also were based on statutory underwriting expenses, for which all policy acquisition costs were expensed as incurred. In contrast, a GAAP calculation of underwriting expenses requires that certain policy acquisition costs be capitalized when incurred and amortized over time. This report includes a reconciliation of the statutory underwriting expense measures underlying the 2002 10-K statutory underwriting ratios to the corresponding GAAP underwriting expense measures.
QTR 1 QTR 2 QTR 3 QTR 4 YEAR ----- ----- ----- ----- ---- BUSINESS BUSINESS BUSINESS BUSINESS BUSINESS INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE 2002 2002 2002 2002 2002 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $260 $266 $282 $280 $1,088 Less: Prepaid Acquisition Costs $16 $19 $22 $9 $66 Underwriting Expenses (GAAP) $244 $247 $260 $271 $1,022 Loss Ratio 51.6% 53.3% 50.1% 48.2% 50.7% Loss Adjustment Expense Ratio 12.0% 11.5% 11.5% 13.0% 12.0% Expense Ratio 33.4% 32.2% 32.7% 32.6% 32.7% Dividend Ratio 1.0% 2.0% 1.6% 1.6% 1.5% Combined Ratio 98.0% 99.0% 95.9% 95.4% 97.0% PERSONAL PERSONAL PERSONAL PERSONAL PERSONAL LINES LINES LINES LINES LINES 2002 2002 2002 2002 2002 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $181 $174 $172 $176 $703 Less: Prepaid Acquisition Costs $5 $3 $(1) $0 $7 Underwriting Expenses (GAAP) $176 $171 $173 $176 $696 Loss Ratio 65.0% 67.5% 67.0% 64.8% 66.1% Loss Adjustment Expense Ratio 11.8% 12.2% 11.1% 11.4% 11.6% Expense Ratio 24.4% 23.0% 23.0% 22.9% 23.3% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 101.2% 102.7% 101.1% 99.2% 101.0% SPECIALTY SPECIALTY SPECIALTY SPECIALTY SPECIALTY COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL 2002 2002 2002 2002 2002 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $90 $94 $110 $87 $381 Less: Prepaid Acquisition Costs $14 $16 $8 $(15) $23 Underwriting Expenses (GAAP) $76 $78 $102 $102 $358 Loss Ratio 55.6% 54.7% 57.8% 61.0% 57.6% Loss Adjustment Expense Ratio 14.0% 12.2% 11.4% 10.4% 11.8% Expense Ratio 32.5% 28.4% 28.1% 29.1% 29.3% Dividend Ratio 0.7% 0.6% 0.5% 1.0% 0.7% Combined Ratio 102.8% 96.0% 97.8% 101.5% 99.4% REINSURANCE REINSURANCE REINSURANCE REINSURANCE REINSURANCE 2002 2002 2002 2002 2002 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $51 $46 $48 $46 $191 Less: Prepaid Acquisition Costs $7 $(4) $(2) $(10) $(9) Underwriting Expenses (GAAP) $44 $50 $50 $56 $200 Loss Ratio 72.3% 72.5% 68.3% 85.5% 74.9% Loss Adjustment Expense Ratio 5.0% 2.8% 6.2% 5.6% 4.9% Expense Ratio 25.1% 29.7% 27.6% 29.5% 28.0% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 102.4% 105.0% 102.2% 120.6% 107.9% NAP&C NAP&C NAP&C NAP&C NAP&C 2002 2002 2002 2002 2002 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $582 $580 $612 $589 $2,363 Less: Prepaid Acquisition Costs $42 $34 $27 $(16) $87 Underwriting Expenses (GAAP) $540 $546 $585 $605 $2,276 Loss Ratio 59.2% 60.6% 59.1% 59.6% 59.6% Loss Adjustment Expense Ratio 11.6% 11.1% 10.9% 11.4% 11.2% Expense Ratio 29.0% 28.0% 28.0% 28.3% 28.3% Dividend Ratio 0.5% 0.9% 0.7% 0.8% 0.7% Combined Ratio 100.2% 100.5% 98.7% 100.0% 99.8%
QTR 1 QTR 2 QTR 3 QTR 4 YEAR ----- ----- ----- ----- ---- BUSINESS BUSINESS BUSINESS BUSINESS BUSINESS INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE 2001 2001 2001[1] 2001 2001[8] ---- ---- ------- ---- ------- Underwriting Expenses (Statutory) $225 $218 $232 $251 $926 Less: Prepaid Acquisition Costs $17 $18 $8 $11 $54 Underwriting Expenses (GAAP) $208 $200 $224 $240 $872 Loss Ratio 54.5% 52.9% 82.0% 50.1% 59.9% Loss Adjustment Expense Ratio 12.4% 12.1% 18.3% 11.8% 13.7% Expense Ratio 33.5% 31.3% 33.6% 34.2% 33.2% Dividend Ratio 2.1% 0.9% 1.0% 1.2% 1.3% Combined Ratio 102.6% 97.2% 134.9% 97.2% 108.0% PERSONAL PERSONAL PERSONAL PERSONAL PERSONAL LINES LINES LINES LINES LINES 2001 2001 2001[2] 2001 2001[9] ---- ---- ------- ---- ------- Underwriting Expenses (Statutory) $167 $174 $178 $168 $687 Less: Prepaid Acquisition Costs $6 $14 $13 $5 $38 Underwriting Expenses (GAAP) $161 $160 $165 $163 $649 Loss Ratio 62.0% 70.3% 67.4% 69.7% 67.4% Loss Adjustment Expense Ratio 10.8% 12.2% 12.1% 11.5% 11.7% Expense Ratio 24.2% 23.6% 23.6% 23.2% 23.6% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 97.1% 106.1% 103.1% 104.4% 102.7% SPECIALTY SPECIALTY SPECIALTY SPECIALTY SPECIALTY COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL 2001 2001 2001[3] 2001 2001[10] ---- ---- ------- ---- ------- Underwriting Expenses (Statutory) $81 $79 $85 $89 $334 Less: Prepaid Acquisition Costs $10 $(8) $4 $(12) $(6) Underwriting Expenses (GAAP) $71 $87 $81 $101 $340 Loss Ratio 57.9% 61.1% 113.4% 56.0% 73.1% Loss Adjustment Expense Ratio 16.8% 12.5% 22.3% 18.2% 17.6% Expense Ratio 29.5% 33.9% 30.8% 38.4% 33.1% Dividend Ratio 0.6% 0.4% 0.3% 0.3% 0.4% Combined Ratio 104.8% 108.0% 166.7% 112.9% 124.2% REINSURANCE REINSURANCE REINSURANCE REINSURANCE REINSURANCE 2001 2001 2001[4] 2001[6] 2001[11] ---- ---- ------- ------- ------- Underwriting Expenses (Statutory) $76 $60 $62 $54 $252 Less: Prepaid Acquisition Costs $23 $(1) $(11) $(13) $(2) Underwriting Expenses (GAAP) $53 $61 $73 $67 $254 Loss Ratio 86.2% 84.9% 248.6% 81.4% 108.9% Loss Adjustment Expense Ratio 2.4% 4.8% 8.1% 7.4% 5.3% Expense Ratio 21.3% 26.7% 56.2% 27.6% 29.8% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 109.9% 116.4% 312.9% 116.4% 144.0% NAP&C NAP&C NAP&C NAP&C NAP&C 2001 2001 2001[5] 2001[7] 2001[12] ---- ---- ------- ------- ------- Underwriting Expenses (Statutory) $549 $531 $557 $562 $2,199 Less: Prepaid Acquisition Costs $56 $23 $14 $(9) $84 Underwriting Expenses (GAAP) $493 $508 $543 $571 $2,115 Loss Ratio 62.2% 64.7% 93.3% 62.1% 70.3% Loss Adjustment Expense Ratio 11.0% 11.3% 15.7% 12.0% 12.5% Expense Ratio 27.8% 28.2% 30.9% 29.8% 29.2% Dividend Ratio 0.8% 0.4% 0.4% 0.5% 0.5% Combined Ratio 101.8% 104.5% 140.3% 104.4% 112.5% NAP&C refers to North American Property & Casualty [1] Includes impacts from September 11 of 29.8 in the loss ratio, 6.2 in the loss adjustment expense ratio, 0.8 in the expense ratio and 36.9 in the combined ratio. [2] Includes impacts from September 11 of 0.9 in the loss ratio, 0.2 in the loss adjustment expense ratio and 1.1 in the combined ratio. [3] Includes impacts from September 11 of $1 in underwriting expenses, 50.7 in the loss ratio, 9.5 in the loss adjustment expense ratio, 1.4 in the expense ratio and 61.5 in the combined ratio. [4] Includes impacts from September 11 of 164.8 in the loss ratio, 3.4 in the loss adjustment expense ratio, 23.4 in the expense ratio and 191.6 in the combined ratio. [5] Includes impacts from September 11 of $1 in underwriting expenses, 30.5 in the loss ratio, 4.5 in the loss adjustment expense ratio, 2.0 in the expense ratio and 37.0 in the combined ratio. [6] Includes impacts from September 11 of 1.9 in the loss ratio, (0.8) in the loss adjustment expense ratio, (2.7) in the expense ratio and (1.7) in the combined ratio. [7] Includes impacts from September 11 of 0.4 in the loss ratio, (0.1) in the loss adjustment expense ratio, (0.4) in the expense ratio and (0.2) in the combined ratio. [8] Includes impacts from September 11 of 7.6 in the loss ratio, 1.6 in the loss adjustment expense ratio, 0.2 in the expense ratio and 9.3 in the combined ratio. [9] Includes impacts from September 11 of 0.2 in the loss ratio, 0.1 in the loss adjustment expense ratio and 0.3 in the combined ratio. [10] Includes impacts from September 11 of $1 in underwriting expenses, 13.6 in the loss ratio, 2.6 in the loss adjustment expense ratio, 0.3 in the expense ratio and 16.5 in the combined ratio. [11] Includes impacts from September 11 of 25.2 in the loss ratio, 0.4 in the loss adjustment expense ratio, 2.2 in the expense ratio and 27.8 in the combined ratio. [12] Includes impacts from September 11 of $1 in underwriting expenses, 7.5 in the loss ratio, 1.1 in the loss adjustment expense ratio, 0.4 in the expense ratio and 9.0 in the combined ratio.
QTR 1 QTR 2 QTR 3 QTR 4 YEAR ----- ----- ----- ----- ---- BUSINESS BUSINESS BUSINESS BUSINESS BUSINESS INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE 2000 2000 2000 2000 2000 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $202 $199 $205 $207 $813 Less: Prepaid Acquisition Costs $8 $6 $4 $3 $21 Underwriting Expenses (GAAP) $194 $193 $201 $204 $792 Loss Ratio 57.0% 53.9% 52.3% 46.8% 52.4% Loss Adjustment Expense Ratio 13.1% 12.0% 12.6% 14.5% 13.1% Expense Ratio 34.9% 33.9% 34.8% 34.0% 34.4% Dividend Ratio 1.3% 1.3% 1.2% 1.4% 1.3% Combined Ratio 106.3% 101.1% 101.0% 96.7% 101.2% PERSONAL PERSONAL PERSONAL PERSONAL PERSONAL LINES LINES LINES LINES LINES 2000 2000 2000 2000 2000 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $158 $168 $167 $160 $653 Less: Prepaid Acquisition Costs $6 $15 $12 $5 $38 Underwriting Expenses (GAAP) $152 $153 $155 $155 $615 Loss Ratio 63.2% 67.2% 64.3% 64.0% 64.7% Loss Adjustment Expense Ratio 10.7% 11.1% 10.3% 10.9% 10.8% Expense Ratio 24.9% 24.1% 24.1% 23.7% 24.2% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 98.7% 102.4% 98.7% 98.6% 99.6% SPECIALTY SPECIALTY SPECIALTY SPECIALTY SPECIALTY COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL COMMERCIAL 2000 2000 2000 2000 2000 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $85 $86 $111 $55 $337 Less: Prepaid Acquisition Costs $(4) $(3) $14 $(21) $(14) Underwriting Expenses (GAAP) $89 $89 $97 $76 $351 Loss Ratio 57.2% 58.5% 59.4% 66.6% 60.4% Loss Adjustment Expense Ratio 13.6% 13.3% 15.5% 18.0% 15.1% Expense Ratio 37.2% 37.3% 30.1% 32.5% 34.0% Dividend Ratio 0.3% 0.3% 0.2% 0.2% 0.2% Combined Ratio 108.4% 109.4% 105.1% 117.4% 109.7% REINSURANCE REINSURANCE REINSURANCE REINSURANCE REINSURANCE 2000 2000 2000 2000 2000 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $72 $64 $64 $62 $262 Less: Prepaid Acquisition Costs $16 $1 $0 $(13) $4 Underwriting Expenses (GAAP) $56 $63 $64 $75 $258 Loss Ratio 72.3% 70.6% 77.8% 70.5% 72.7% Loss Adjustment Expense Ratio 3.9% 3.5% 4.3% 5.6% 4.4% Expense Ratio 30.6% 31.3% 32.3% 33.0% 31.9% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio 106.8% 105.4% 114.4% 109.1% 109.0% NAP&C NAP&C NAP&C NAP&C NAP&C 2000 2000 2000 2000 2000 ---- ---- ---- ---- ---- Underwriting Expenses (Statutory) $517 $517 $547 $484 $2,065 Less: Prepaid Acquisition Costs $26 $19 $30 $(26) $49 Underwriting Expenses (GAAP) $491 $498 $517 $510 $2,016 Loss Ratio 61.2% 61.7% 61.0% 59.2% 60.8% Loss Adjustment Expense Ratio 11.2% 10.8% 11.3% 12.5% 11.5% Expense Ratio 30.9% 30.3% 29.7% 29.7% 30.1% Dividend Ratio 0.5% 0.5% 0.5% 0.5% 0.5% Combined Ratio 103.8% 103.3% 102.5% 101.9% 102.9%
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: May 8, 2003 By: /s/ NEAL S. WOLIN ------------------------------------------- Name: Neal S. Wolin Title: Executive Vice President and General Counsel -----END PRIVACY-ENHANCED MESSAGE-----