Summary
The Hartford Financial Services Group, Inc. (HIG) reported a net income of $293 million for the three months ended September 30, 2013, a significant increase from $13 million in the same period last year. This improvement was primarily driven by the absence of substantial reinsurance losses on dispositions that impacted the prior year's results, coupled with better underwriting performance in Property & Casualty Commercial and Group Benefits segments. However, the nine-month period ending September 30, 2013, resulted in a net loss of $138 million, a notable decrease from a net income of $8 million in the prior year's comparable period. This decline was significantly influenced by a substantial 'Unlock charge' related to the Japan variable annuity hedging program and increased asbestos and environmental reserve strengthening. The company has been actively divesting non-core businesses, including the sale of its Retirement Plans and Individual Life insurance businesses in early 2013. While these dispositions generated significant reinsurance losses in the prior year, their absence this period contributed to the improved quarterly results. The company also announced an agreement to sell its U.K. variable annuity business. Overall, investors should note the mixed performance: a strong quarter bolstered by the absence of prior-year charges, but a weaker nine-month period impacted by specific charges and reserve adjustments. The ongoing strategic realignment and business dispositions are key themes for The Hartford.
Financial Highlights
36 data points| Revenue | $4.86B |
| Operating Expenses | $964.00M |
| Operating Income | $841.00M |
| Interest Expense | $94.00M |
| Net Income | $293.00M |
| EPS (Basic) | $650000.00 |
| EPS (Diluted) | $600000.00 |
| Shares Outstanding (Basic) | 452.10M |
| Shares Outstanding (Diluted) | 490.60M |
Key Highlights
- 1The Hartford reported a net income of $293 million for Q3 2013, a substantial improvement from $13 million in Q3 2012.
- 2The nine-month period ending September 30, 2013, showed a net loss of $138 million, a decrease from a net income of $8 million in the prior year.
- 3Significant business dispositions, including Retirement Plans and Individual Life insurance, were completed in early 2013.
- 4An 'Unlock charge' of $881 million (before tax) for the nine-month period negatively impacted results, primarily related to the Japan variable annuity hedging program.
- 5Property & Casualty Commercial and Group Benefits segments showed improved underwriting results.
- 6The company continued its equity repurchase program, authorizing an additional $750 million, bringing the total to $1.25 billion.
- 7Total investments decreased primarily due to business dispositions and a decline in fixed maturities, AFS, and equity securities, trading.