The Hartford Financial Services Group Inc (HIG) said Wednesday its first-quarter net earnings dropped sharply from last year, hurt mainly by hedging-related losses and the impact of equity markets. Excluding items, the company said core earnings for the quarter improved year-over-year.
Hartford Financial said its first-quarter 2012 results were hurt by hedging losses of $378 million related to the international variable annuity business due to equity capital market levels and yen depreciation.
The company reported first-quarter net income of $96 million or $0.18 per share, compared to $501 million or $0.99 per share last year.
Excluding items, core earnings were $612 million or $1.25 per share, compared to $574 million or $1.13 per share last year.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter totaled $7.66 billion, up from $6.3 billion last year. Earned premiums for the quarter were $3.44 billion, compared to $3.5 billion in the prior year.
At P&C Commercial segment, written premiums in the quarter rose 3 percent from last year to $1.69 billion, while core earnings fell 8 percent.
P&C Commercial combined ratio, excluding catastrophes and prior year development, worsened to 96.4 percent from 95.3 percent last year, reflecting lower workers' compensation profitability.
In Group Benefits business, fully insured premiums for the quarter slid 7 percent from last year to $954 million. Combined ratio worsened to 83 percent from 79.3 percent.
Consumer Markets written premiums for the quarter slid 3 percent year-over-year to $861 million. Core earnings fell 8 percent, while combined ratio improved 0.2 percent to 88.8 percent.
Hartford Financial's total benefits and expenses for the quarter increased to $7.66 billion from $5.9 billion last year.
During the first quarter 2012, the company purchased 2.6 million shares of common stock at a total price of $42.3 million.
Hartford Financial last March said it will put its Individual Annuity business for sale. The company is also looking for strategic alternatives such as a sale for the Individual Life, Woodbury Financial Services and Retirement Plants businesses.
Among others in the industry, The Allstate Corp. (ALL) earlier today reported a 46 percent rise in quarterly earnings, helped by improved margins and lower catastrophe losses. Core earnings came in ahead of Street estimates.
Shares of Hartford Financial closed Wednesday at $20.43, down $0.43 or 2.06%, on a volume of 4.5 million shares on the NYSE. In after hours, the stock dropped 0.15%. In the past year, the stock has trended in the range of $14.56 - $28.63.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.