Insurer Hartford Financial Services Group Inc. (HIG), Monday reported a profit for the fourth quarter over a net loss last year, helped by improved performance from its life, and property and casualty businesses.
Quarterly core earnings came well ahead of the analysts' expectations, as did revenues. Looking ahead, the company provided core earnings outlook for fiscal 2010, which is estimated to come in line with the Street consensus.
The Hartford, Connecticut-based company posted net income of $557 million or $1.19 per share for the fourth quarter, compared to a loss of $806 million or $2.71 per share in the prior year quarter.
Excluding items, core earnings were $689 million or $1.51 per share, compared to a core loss of $208 million or $0.72 per share in the year-ago quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.40 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Liam McGee, Hartford's chairman, president and chief executive officer, said, "The Hartford's fourth quarter results represent a return to profitability. Both life and property and casualty businesses reported net income, and this is the third sequential quarter of improving core earnings."
Net income from Property and casualty operations soared 75% to $508 million from $291 million in the fourth quarter of 2009. However, core earnings fell 16% to $378 million from $452 million last year.
Written premium dropped 5% to from $2.47 billion from $2.35 billion a year ago. Net income from ongoing operations climbed 68% to $498 million from $297 million in the prior year quarter.
Life operations reported net income of $118 million for the fourth quarter, compared to a loss of $807 million in the previous year quarter. Core earnings were $385 million, compared to core losses of $261 million a year earlier.
Assets under management of Life operations were $329.73 billion at the end of the fourth quarter of 2009, up from $298.02 billion as of Dec. 31, 2008.
For fiscal 2009, Hartford reported a net loss of $887 million or $2.93 per share, compared to a loss of $2.7 billion or $8.99 per share in the previous year.
Core earnings dropped to $796 million or $1.85 per share from $858 million or $2.74 per share in the prior year.
For fiscal 2010, Hartford currently expects core earnings in the range of $3.70 to $4.00 per share. The Street currently estimates earnings of $3.96 per share for the year.
Among others in the industry, MetLife Inc. (MET) reported a plunge in fourth quarter profit, hurt by higher investment losses and higher policy holder benefits and claims. MetLife also said it is in discussions with American International Group Inc. (AIG) on the acquisition of its subsidiary, American Life Insurance Co, an international life insurance company.
Hartford closed Monday's regular trading session at $23.46, down 7 cents on a volume of 10.84 million shares. In after-hours, the share further lost 97 cents or 4.13%. The stock has been moving in a range of $3.33 - $29.59 for the past 52 weeks, with an three-month average volume of about 7.17 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.