Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on March 1, 2013, primarily to address restatements of its previously issued financial statements for the third quarter of 2012. This restatement is necessitated by the identification of an accounting error related to the sale of its Individual Life business. Specifically, the company will recognize a pre-tax loss of $533 million, comprising a $342 million goodwill impairment and a $191 million premium deficiency accrual, which should have been recorded in the third quarter of 2012. This filing also includes an amendment to its Third Quarter 2012 Form 10-Q and a revised Investor Financial Supplement for the fiscal year and quarter ended December 31, 2012. Investors should note that the previously issued third-quarter 2012 financial statements should no longer be relied upon due to this error. The company states that this impairment is not expected to result in future cash expenditures.
Key Highlights
- 1The Hartford is restating its third quarter 2012 financial statements due to an accounting error.
- 2A significant pre-tax loss of $533 million will be recognized, related to the sale of the Individual Life business.
- 3The loss includes a $342 million goodwill impairment and a $191 million premium deficiency accrual.
- 4This loss should have been recorded in the third quarter of 2012.
- 5Previously issued third quarter 2012 financial statements should not be relied upon.
- 6The company is filing an amendment to its Third Quarter 2012 Form 10-Q and a revised Investor Financial Supplement.
- 7The impairment is not expected to result in future cash expenditures.