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February 3, 2017

The Hartford's 4Q profits sink on past environmental exposures

PHOTO | Contributed The Hartford's headquarters.

The Hartford on Thursday said it reported an $81 million loss in the fourth quarter, attributed largely to past reinsurance environmental liability exposures.

For the fourth quarter ended Dec. 31, 2016, the property and casualty insurer reported a net loss of $81 million compared with net income of $421 million in the year-ago period. Earnings were impacted by a $423 million after-tax charge related to a previously-announced retroactive reinsurance agreement covering asbestos and environmental liability exposures, the company said.

For the year, net income dropped 47 percent, to $896 million from $1.68 million in 2015.

The Hartford’s President Doug Elliot identified both strengths in the company's commercial lines and group benefits and weaknesses in personal lines of business, particularly with accident severity trends in auto insurance "that remain elevated."

By adjusting pricing and underwriting in the personal lines, the company expects improved results this year, he said.

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