Summary
Hartford Financial Services Group, Inc. (HIG) reported a slight decrease in net income for the first quarter of 2015 compared to the same period in 2014. Net income was $467 million, or $1.08 per diluted share, down from $495 million, or $1.03 per diluted share, in the prior year. This decline was primarily attributed to a weaker underwriting performance in Property & Casualty lines, driven by an increased combined ratio before catastrophes and prior year development, and lower favorable prior year reserve development. Additionally, income from discontinued operations also decreased. Despite the dip in net income, the company demonstrated solid operational performance in several segments. Property & Casualty written premiums saw a modest increase, and the Group Benefits segment showed an improved after-tax core earnings margin. The company also actively managed its capital by repurchasing $250 million of its common stock during the quarter. The investment portfolio remained robust, although net investment income experienced a slight decrease due to lower reinvestment rates and asset levels from the runoff of the Talcott Resolution business.
Financial Highlights
37 data points| Revenue | $4.62B |
| Operating Expenses | $948.00M |
| Operating Income | $467.00M |
| Interest Expense | $94.00M |
| Net Income | $467.00M |
| EPS (Basic) | $1.11 |
| EPS (Diluted) | $1.08 |
| Shares Outstanding (Basic) | 422.60M |
| Shares Outstanding (Diluted) | 433.70M |
Key Highlights
- 1Net income decreased by 6% to $467 million ($1.08 diluted EPS) compared to $495 million ($1.03 diluted EPS) in Q1 2014.
- 2Total revenues remained flat at $4.617 billion.
- 3Property & Casualty written premiums increased by 3% overall, with Commercial Lines up 3% and Personal Lines up 1%.
- 4The Property & Casualty combined ratio, before catastrophes and prior year development, increased to 92.4 from 89.6 in the prior year quarter, largely due to a favorable prior-year reserve impact in 2014.
- 5Group Benefits segment's after-tax core earnings margin improved to 5.9% from 5.1% year-over-year.
- 6The company repurchased $250 million of common stock during the quarter.
- 7Net investment income decreased by 2% to $809 million, primarily due to lower reinvestment rates and declining asset levels in the Talcott Resolution segment.