Summary
The Hartford Financial Services Group, Inc. (HIG) reported a significant turnaround in its financial performance for the second quarter and first half of 2015 compared to the same periods in 2014. Net income for the three months ended June 30, 2015, surged to $413 million ($0.96 per diluted share) from a net loss of $467 million ($1.00 per diluted share) in the prior year period. This substantial improvement was largely driven by a significant decrease in the loss from discontinued operations, primarily due to the sale of the Japan variable annuity business in 2014, and improved underwriting results in its Property & Casualty segments. The company also saw an increase in net investment income, driven by higher income from limited partnerships and other alternative investments. Property & Casualty written premiums grew, and the combined ratio, excluding catastrophes and prior year development, improved. Despite higher interest rates impacting the net unrealized gains in the investment portfolio, the overall financial health of the company appears to be strengthening, supported by share repurchases and a solid capital position. Investors should note the ongoing management of various business segments, including the runoff of Talcott Resolution, and the impact of market conditions on investment results and reserves.
Financial Highlights
37 data points| Revenue | $4.68B |
| Operating Expenses | $910.00M |
| Operating Income | $880.00M |
| Interest Expense | $89.00M |
| Net Income | $413.00M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.96 |
| Shares Outstanding (Basic) | 418.70M |
| Shares Outstanding (Diluted) | 428.10M |
Key Highlights
- 1Net income for Q2 2015 was $413 million, a substantial improvement from a net loss of $467 million in Q2 2014.
- 2Diluted earnings per share improved to $0.96 in Q2 2015 from a loss of $1.00 per diluted share in Q2 2014.
- 3The company repurchased approximately 6.0 million shares for $250 million in the quarter, demonstrating a commitment to returning capital to shareholders.
- 4Net investment income increased by 4% to $796 million, primarily due to stronger performance in limited partnerships and alternative investments.
- 5Property & Casualty written premiums increased by 4% over the prior year period, with a combined ratio before catastrophes and prior year development improving to 88.9.
- 6Talcott Resolution reported a significant increase in after-tax income from continuing operations to $217 million from $113 million in the prior year period.
- 7The company's book value per diluted common share (excluding AOCI) increased to $42.41 from $41.47 in the prior quarter.