Summary
The Hartford Financial Services Group, Inc. (HIG) has filed an 8-K on August 3, 2005, to disclose information regarding two reserve studies completed in the second quarter of 2005. This disclosure follows the inadvertent release of non-public information about these studies by a credit ratings agency to its subscribers. The company is providing this information to ensure all investors have access to the details ahead of its scheduled second quarter earnings release. Specifically, the filing addresses an annual asbestos reserve review which resulted in no additional reserve requirement. More significantly, a review of reserves related to HartRe's assumed reinsurance business in runoff identified a pre-tax reserve increase of $73 million. This increase is primarily associated with U.S. casualty assumed reinsurance written between 1997 and 2001. Investors should note that these details are being provided prior to the official earnings announcement on August 4, 2005.
Key Highlights
- 1The Hartford is preemptively disclosing details on two second-quarter 2005 reserve studies due to a credit rating agency's accidental early release of non-public information.
- 2An annual review of asbestos reserves resulted in no additional reserve requirement.
- 3A reserve increase of $73 million (pre-tax) was identified for HartRe's assumed reinsurance business, specifically for U.S. casualty business written from 1997-2001.
- 4The company will release its official second quarter 2005 earnings on August 4, 2005, after market close.
- 5A conference call to discuss the second quarter results is scheduled for August 5, 2005, and will be webcast.