Since becoming a public company in 1996, The Hartford has more than doubled its revenues. The revenues are divided almost equally between the revenues of the life and the property and casualty operations. This diversified business model has differentiated The Hartford among its peers and contributed to its financial strength.
Core earnings provides investors with a valuable measure of the performance of the company’s ongoing businesses. It reveals trends in the insurance and financial services businesses that may be obscured by the net effect of certain realized capital gains and losses. Core earnings increased 28% in 2006.
*Please see Business profiles: Property and Casualty for the “non-GAAP financial measures” footnote.
In 2006, due to strong equity markets and more than $12 billion in positive net flows across The Hartford’s wealth management businesses, assets under management rose 17%.
*Please see Business profiles: Property and Casualty for the “non-GAAP financial measures” footnote.
Earned premium represents total company premiums, primarily consisting of premiums from Individual Life, Property and Casualty, and Group Benefits, that are recognized as revenues during a fiscal period. Earned premium growth, which was 5% in 2006, contributed to strong underwriting results.
Book value per share (excluding accumulated other comprehensive income) enables investors to analyze the amount of the company’s net worth that is primarily attributable to the company’s business operations. This measure is useful to investors because it eliminates the effect of items that typically fluctuate significantly from period to period, primarily based on changes in interest rates. In 2006, book value per share increased 15%, to $57.83.
†Excludes accumulated other comprehensive income. Please see Business profiles: Property and Casualty for the “non-GAAP financial measures” footnote.
Dividends paid have more than doubled in the past decade, demonstrating that The Hartford is committed to returning value to its shareholders. Total shareholder value, as measured by growth in book value per share plus dividends, rose 17.7% in 2006.
