Hartford Financial 3Q Loss Narrows, Sharply Raises 2009 View
DOW JONES NEWSWIRES
Hartford Financial Services Group Inc.'s (HIG) third-quarter loss--its fifth
in a row--narrowed on improving equity markets.
Shares gained 4% to $26.90 in after-hours trading as the struggling life
insurer's results topped Wall Street's expectations and it raised its 2009
guidance sharply. The stock has lost more than half its value in the past year.
Hartford now expects 2009 operating earnings of 85 cents to $1.05 a share. In
July, it again cut its target to a range from break-even to 20 cents a share.
Analysts were looking for core earnings of 50 cents a share, according to a poll
by Thomson Reuters.
"The Hartford's third-quarter core earnings results demonstrate a resilient
company that is emerging from the challenges of the last 18 months," said
Chairman and Chief Executive Liam McGee, who was named to his job in September.
"Our protection and wealth management franchises are stable and performing
well, we are seeing signs that business momentum is building," he added.
Hartford, which took $3.4 billion in government funds under the Troubled Asset
Relief Program and raised $900 million in a stock sale this summer, has
benefited from rallying stock markets. The company has scaled back business in
some countries and reduced risk in its U.S. variable-annuity business, which
left Hartford with big potential liabilities when the stock market tumbled.
For the latest quarter, Hartford reported a loss of $220 million, or 79 cents
a share, compared with a loss of $2.63 billion, or $8.74 a share, a year
earlier.
Core earnings, excluding net realized and unrealized investment gains and
losses, were $1.56 a share, compared with a year-earlier loss of $1.40. Analysts
estimated core earnings of $1.11.
Net premiums written fell 6% in Hartford's property-insurance business but
core earnings jumped 58%.
Variable-annuity deposits sank 67%.
Assets under management increased 0.5% to $387 billion.
Book value grew 18% to $37.90 a share from the end of the second quarter.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com
(END) Dow Jones Newswires
11-03-091652ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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