Summary
The Hartford Financial Services Group, Inc. (HIG) reported a net loss of $190 million for the second quarter of 2013, compared to a net loss of $101 million in the same period of the previous year. This widening loss was primarily driven by significant net realized capital losses totaling $648 million, largely due to unfavorable results from the international variable annuity hedge program and a loss on the sale of Hartford Life International, Ltd. (HLIL). The company continued its strategic divestitures in the first half of 2013, completing the sales of its Retirement Plans and Individual Life insurance businesses. While these sales are part of a long-term strategy to focus on core P&C, Group Benefits, and Mutual Funds businesses and reduce capital markets sensitivity, they resulted in substantial restructuring and other costs, impacting the overall financial performance. The company's financial position shows total assets of $294.8 billion and total stockholders' equity of $19.0 billion as of June 30, 2013. Despite the quarterly loss, the company maintained a $1.75 billion revolving credit facility with no borrowings outstanding, indicating adequate liquidity.
Financial Highlights
36 data points| Revenue | $4.73B |
| Operating Expenses | $1.08B |
| Operating Income | $476.00M |
| Interest Expense | $100.00M |
| Net Income | -$190.00M |
| EPS (Basic) | $-420000.00 |
| EPS (Diluted) | $-390000.00 |
| Shares Outstanding (Basic) | 451.40M |
| Shares Outstanding (Diluted) | 489.00M |
Key Highlights
- 1Net loss for Q2 2013 was $190 million, a deterioration from a net loss of $101 million in Q2 2012.
- 2Net realized capital losses of $648 million in Q2 2013, primarily due to negative impacts from the international variable annuity hedge program.
- 3Completed divestitures of Retirement Plans and Individual Life businesses in early 2013, contributing to significant restructuring costs.
- 4Announced definitive agreement to sell Hartford Life International Limited (HLIL) in June 2013, recognizing an estimated after-tax loss of $102 million.
- 5Total revenues increased by 20% to $5.5 billion in Q2 2013 compared to Q2 2012, largely driven by higher net investment income.
- 6Property & Casualty Commercial segment reported a net income of $192 million, a 29% increase year-over-year, driven by improved underwriting results.
- 7Talcott Resolution segment reported a net loss of $332 million, significantly impacted by variable annuity hedge program results and business dispositions.