The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — The Hartford Financial Services Group — Q4 2005 Earnings Presentation
13 slides from The Hartford Insurance's earnings presentation, Jan 26, 2006
Slide 1: Investor Presentation 4th Quarter 2005
Investor Presentation 4th Quarter 2005 TheFinancial The Hartford Hartford Financial Services Services Group,Inc. Group, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford’s future results of operations. We caution investors that these forward-l
Slide 3: Corporate Financial Highlights
Corporate Financial Highlights ($ in million; except per share amounts) Year Ended Dec-04 Dec-05 % Change Net income $ 2,115 $ 2,281 8% Net income per diluted share 7.12 7.46 5% Core earnings 1,972 2,249 14% Core earnings per diluted share 6.64 7.36 11% Book value per share (excluding AOCI) 43.55 50
Slide 4: Property and Casualty Overview
Property and Casualty Overview Record catastrophes will The Hartford’s 2006 Principal impact market dynamics Catastrophe Reinsurance • Higher reinsurance pricing Program • New catastrophe models and rating • $175 million retention agency capital requirements • Approximately 90% coverage of the nex
Slide 5: Property and Casualty 4th Quarter 2005
Property and Casualty 4th Quarter 2005 6% Net Written Premiums $2,421 $2,566 12% $1,293 $1,157 5% $856 $901 (9%) $408 $372 4Q04 4Q05 4Q04 4Q05 4Q04 4Q05 4Q04 4Q05 Ongoing Business Personal Specialty Operations Insurance Lines Commercial 4Q04 4Q05 4Q04 4Q05 4Q04 4Q05 4Q04 4Q05 Combined Ratio* 87.6 92
Slide 6: Life 4th Quarter 2005
Life 4th Quarter 2005 Core Earnings by Segment Core earnings up 6% over 4Q 400 2004 to $326 million International Total assets under management 300 Group Benefits rose 11% in past year to $277 Individual Life billion 200 Institutional Solutions Retirement Plans Feature-driven competition drive
Slide 7: Life 4th Quarter 2005
Life 4th Quarter 2005 Rapidly expanding scale in Japan, mutual funds and retirement plans ($ in millions) Fourth Quarter 2005 Assets Y/O/Y Under Net Sales/Deposits Management Flows Growth Japan $ 26,104 $ 2,042 14% ¥ Retail Mutual Funds 29,063 559 39% Retirement Plans 20,427 392 31% Group benefi
Slide 8: Highlighted Items for the 4th Quarter
Highlighted Items for the 4th Quarter ($ millions except per share amounts) Impact on Impact on Net Income Diluted EPS 4Q04 4Q05 4Q04 4Q05 Life Operations Regulatory and related matters - Charge for certain regulatory matters - (29) - (0.09) - Settlement of certain annuity contracts - (18) - (0.06)
Slide 9: EPS Guidance
EPS Guidance 2005 Guidance EPS Range Low High Prior Guidance - operating income per diluted share $7.30 $7.60 Items not included in guidance: Regulatory matters $ (0.09) Settlement of certain annuity contracts (0.06) Conversion to core earnings (0.07) Adjusted Core Earnings Guidance $7.08 $7.38 2005
Slide 10: Property and Casualty Outlook
Property and Casualty Outlook Net Written Premium Growth Compared to Full Year 2005 Combined Ratio* Ongoing Operations Mid-single digit Low 90s Business Insurance High-single digit Low 90s Middle Market Low-single digit Small Commercial Low-double digit Personal Lines Mid-single digit High 80s Auto
Slide 11: Life Operations Outlook
Life Operations Outlook Asset Accumulation Businesses Sales Net Flows ROA U.S. Individual Variable Annuity Individual Annuity Full Year 2006 $10.0 - $11.0 Billion ($3.7) - ($2.7) Billion Low 50 bps 1Q06 $2.6 - $2.9 Billion ($1.3) - ($1.0) Billion Japan Variable Annuity Japan Operations Full Year 200
Slide 12: Life Operations Outlook
Life Operations Outlook Full Year 2006 Group Benefits Fully Insured Sales Growth* 9% - 11% Fully Insured Premium Growth 8% - 10% Loss Ratio 72% - 75% Expense Ratio 27% - 29% Core Earnings Growth** 9% - 12% Individual Life Sales Growth 9% - 11% Account Value Growth 9% - 10% Inforce Growth 8% - 10% Co
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The Hartford Financial Services Group — Q4 2005 Earnings Presentation on 6ix