Hartford PL – Growth & Profit BONUS

Hartford just released figures for July, 2013:

467,511                 Written Premium, up 16.7%

405,674                 Earned Premium

199,880                 Incurred Losses

    49.3%                Loss Ratio

66,820                  Growth in WP

134,794                 New Business

604                 Policies in Force, up from 552 in December


Profit-sharing bonus is based on a 3-YEAR Loss Ratio which is 46.6%…WE ARE LOOKING GOOD NOW (need under 55%).

Since 2011 and 2012 were profitable with Hartford we already have 2 good years plus a good 7 months of 2013 for bonus.  Odds are very good.


POLICY GROWTH MATTERS–Last year our PIF was down and the base factor was 1.75% of Written Premium.

If PIF is between 580 to 606 our base factor will be 2.8% (we are at 604 right now),

between 607 to 661 it increases to 3.15%, and between 662 to 717 it increases to 3.45%.

NOTE:  SIAA negotiated an additional 1% commission if VIAA writes $250,000 in New Business (our current new business of $134,794 is an annualized rate of $231,075).

So another $20,000+ in new business could be an extra $2500 in commission!


RATE REDUCTION:  As of 8/6/13 in Missouri on new Home-owner business Hartford reduced rates on homes between $200,000 and $500,000, but increased rates on homes in protection classes 7-10.


QUALITY COUNTS:  Hartford is monitoring each agency based on % of Issued Policies with 3 to 5 stars in their ranking.

They prefer not to write business with only 1 or 2 “stars”.  Please review this before issuing a policy.  Our Loss Ratios and bonuses depend on it.


USE THEM OR LOSS THEM:  Hartford has great coverage and claims service.  As the insurance market tightens it is getting more difficult to get a new code/contract.  They have been asking agencies to issue 2 policies per month.  Over 15 agencies have issued under 3 policies over 7 months and have under $10,000 written premium.  This is telling Hartford you don’t want or need them.  Due to personnel changes they will be making a decision in October.  As an Independent Agent you have to decide what makes sense.

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