Hartford Financial Swings To Profit Despite Lower Revenue

(RTTNews) - Insurance company Hartford Financial Services Group Inc. (HIG) Monday reported first-quarter net earnings to stockholders of $495 million or $1.03 per share compared with a loss of $241 million or $0.58 per share last year.

Results for the recent quarter included after-tax net realized capital losses of $70 million. The prior-year quarter included an unlock charge of $541 million and debt-related charges of $138 million, on an after-tax basis.

Excluding items, core earnings for the quarter were $564 million or $1.18 per share compared with earnings of $457 million or $0.93 per share a year ago.

On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.93 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter were $4.46 billion compared with $9.02 billion in the prior year.

Analysts estimated revenues of $5.60 billion for the quarter.

Total expenses and benefits for the quarter were lower at $9.46 billion, compared with $3.8 billion in the prior year.

"The Hartford's first quarter earnings were outstanding, reflecting the strong fundamentals of the P&C, Group Benefits and Mutual Funds businesses," said CEO Liam McGee.

"Despite the challenging winter weather, each business segment delivered core earnings growth over the prior year. Margins are improving and premiums are growing in P&C, while Group Benefits has achieved a substantial turnaround and Mutual Funds reported positive net flows."