Summary
The Hartford Financial Services Group, Inc. (HIG) reported a decrease in net income for the third quarter of 2017 compared to the same period in 2016, primarily due to significant catastrophe losses from Hurricanes Harvey and Irma. These events, along with an increase in insurance operating costs and a decrease in net investment income, impacted profitability. Despite these headwinds, the company saw growth in Commercial Lines written premiums and improved net income margins in its Group Benefits segment. The company also announced a significant acquisition of Aetna's group life and disability business, which is expected to close in late 2017, demonstrating a strategic focus on expanding its life and disability offerings.
Financial Highlights
36 data pointsBeta
Financial Statements
Beta
| Revenue | $4.19B |
| Operating Expenses | $952.00M |
| Operating Income | $296.00M |
| Interest Expense | $79.00M |
| Net Income | $234.00M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 360.20M |
| Shares Outstanding (Diluted) | 367.00M |
Key Highlights
- 1Net income decreased by 47% to $234 million ($0.64 per diluted share) for the three months ended September 30, 2017, compared to $438 million ($1.12 per diluted share) in the prior year period, largely due to catastrophe losses.
- 2Property & Casualty combined ratio increased to 107.1% from 96.5% in the prior year period, primarily driven by catastrophe losses of $352 million before tax from Hurricanes Harvey and Irma.
- 3Earned premiums for Property & Casualty decreased by 6% to $921 million, while Commercial Lines earned premiums increased by 3% to $1.72 billion.
- 4Group Benefits segment net income increased by 15% to $71 million, with a net income margin of 7.7%, reflecting lower incurred loss costs.
- 5The company announced a definitive agreement to acquire Aetna's U.S. group life and disability insurance business for $1.45 billion, expected to close in the fourth quarter of 2017.
- 6Total investments increased to $72.99 billion as of September 30, 2017, driven by increases in fixed maturities, short-term investments, and mortgage loans.
- 7The company repurchased 6 million common shares for $325 million during the third quarter of 2017 but suspended its equity repurchase program effective October 13, 2017.