Summary
The Hartford Financial Services Group, Inc. (HIG) reported a net income of $388 million for the third quarter of 2014, a significant increase from $293 million in the same period of the prior year. This improvement was driven by higher net investment income and improved underwriting results in Property & Casualty Commercial and Consumer Markets segments, partly offset by a loss from discontinued operations and a reduction in net realized capital gains compared to the previous year which benefited from business dispositions. Total revenues saw a slight decrease of 2% year-over-year, primarily due to a decline in fee income and other revenues. The company repurchased $845 million of its common stock during the quarter, signaling a commitment to returning capital to shareholders. Management expressed optimism about continued operational improvements and capital management strategies.
Financial Highlights
37 data points| Revenue | $4.77B |
| Operating Expenses | $976.00M |
| Operating Income | $1.00B |
| Interest Expense | $93.00M |
| Net Income | $388.00M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 437.20M |
| Shares Outstanding (Diluted) | 450.80M |
Key Highlights
- 1Net income increased to $388 million ($0.86 per diluted share) from $293 million ($0.60 per diluted share) in the prior year's third quarter.
- 2Total revenues decreased by 2% to $4,769 million, primarily due to lower fee income and other revenues.
- 3Net investment income increased by 3% to $810 million, driven by higher income from alternative investments.
- 4Property & Casualty written premiums increased by 1%, with improved combined ratios before catastrophes and prior year development.
- 5The company repurchased approximately $845 million of its common stock during the quarter.
- 6The company's statutory capital and surplus for U.S. life insurance subsidiaries increased by $409 million.
- 7The company maintained compliance with all financial covenants under its revolving credit facility.