Lehman/A.M. Best 2nd Annual Conference

"We're in the business we know, that we like and can make money at." David Zwiener Executive Vice President & Chief Financial Officer, Hartford Financial Services Group, Inc.

Hartford President Says Technology Will Grow Its Property/Casualty Business

Hartford Financial Services Group (NYSE:HIG) will focus on growing its property/casualty business over the next three years while continuing to use technology as a competitive advantage, said David Zwiener, president of Hartford's property/casualty division.

Winners and losers will be diverging in the next three years as the stronger property/casualty companies take business and talent from the weaker companies, Zwiener said. "We're in the business we know, that we like and can make money at," he said.

Zwiener spoke at the second annual Insurance Conference held in New York and co-sponsored by Lehman Bros. and A.M. Best Co.

Hartford asked agents and brokers what a carrier can bring to a business, and "technology was mentioned a lot," Zwiener said. In the small-commercial market line, it is investing in Internet malls, online lead generation and online servicing capabilities. "If you can't do that, you can't play," he said. Hartford also is encouraging agents to get involved in new distribution alliances and business models, such as bank programs, online quote-to-issue and online lead generation.

Hartford's small-commercial lines business is steadily moving online, Zwiener reported. In two years, that segment grew from nothing being transacted online to 85% of the business online last year, and the company expects to see 100% in 2001. In fact, the small-business segment of Hartford Financial's property/casualty business had a strong year in 2000, with double-digit growth and the achievement of $1 billion in written premium (BestWire, March 29, 2001)

In lieu of advertising--Zwiener described Hartford's ad budget as "modest"-- the company is investing in three key areas to build brand awareness: ease of doing business, customer solutions and service.

Hartford Financial Services reported $12 billion in written premiums in 2000. It posted a 1% increase in first-quarter net income, reporting $240 million, up from $238 million for the same period last year (BestWire, May 7, 2001).

Hartford Life Insurance Co. has an A.M. Best rating of A+ (Superior).

(By Lynna Goch, senior associate editor, Best's Review: Lynna.Goch@ambest.com)