Summary
The Hartford Financial Services Group, Inc. (HIG) reported a net loss of $40 million for the three months ended June 30, 2017, compared to a net income of $216 million in the prior year period. This decline was largely attributed to a significant pension settlement charge of $488 million after tax in the current quarter, which was partially offset by favorable prior accident year reserve development in the prior year's Property & Casualty segment. Despite the quarterly loss, year-to-date performance shows a net income of $338 million, down from $539 million in the first half of 2016, also impacted by the pension settlement charge. Total revenues saw a modest increase of 2% for the quarter and 3% year-to-date, driven by growth in earned premiums across Commercial Lines and Group Benefits, and higher fee income, particularly in the Mutual Funds segment. However, total benefits, losses, and expenses increased by 8% for the quarter and 6% year-to-date, largely due to the aforementioned pension settlement and an increase in insurance operating costs and other expenses. The Property & Casualty segment showed an improved combined ratio, down to 94.6% from 95.0% in the prior year quarter, indicating better underwriting performance excluding the impact of prior year reserves. From a capital perspective, total stockholders' equity increased to $17.3 billion. The company continues its share repurchase program, repurchasing approximately 6.6 million shares for $325 million during the quarter.
Financial Highlights
36 data points| Revenue | $4.21B |
| Operating Expenses | $1.65B |
| Operating Income | $151.00M |
| Interest Expense | $79.00M |
| Net Income | -$40.00M |
| EPS (Basic) | $-0.11 |
| EPS (Diluted) | $-0.11 |
| Shares Outstanding (Basic) | 366.00M |
| Shares Outstanding (Diluted) | 366.00M |
Key Highlights
- 1The Hartford reported a net loss of $40 million for Q2 2017, a significant decrease from a net income of $216 million in Q2 2016, primarily due to a $488 million after-tax pension settlement charge.
- 2Year-to-date net income was $338 million, down from $539 million in the first half of 2016, also impacted by the pension settlement.
- 3Total revenues increased 2% for the quarter and 3% year-to-date, driven by growth in earned premiums and fee income.
- 4Total benefits, losses, and expenses increased by 8% for the quarter and 6% year-to-date, significantly influenced by the pension settlement.
- 5The Property & Casualty combined ratio improved to 94.6% from 95.0% in the prior year quarter, indicating better underwriting results.
- 6Total stockholders' equity increased to $17.3 billion.
- 7The company repurchased approximately 6.6 million shares for $325 million during the quarter as part of its equity repurchase program.