Hartford Financial misses estimates as premiums stagnate
(Reuters) - Insurer Hartford Financial Services Group's (HIG.N) adjusted profit missed analysts' estimates as premiums remained stagnant at its core property and casualty business.
Hartford has been reshaping itself into a property and casualty insurer by shedding its other businesses. It sold off its individual life insurance, broker-dealer and retirement plans businesses last year.
In June, it sold its UK variable annuity (VA) business to a unit of Berkshire Hathaway Inc (BRKa.N) for about $258 million.
The company's net loss nearly doubled to $190 million, or 42 cents per share, in the second quarter. It was $101 million, or 26 cents per share, a year earlier.
The latest results included $421 million in capital losses related to the company's hedging program and a $126 million loss from the sale of its VA business.
On an operating basis, Hartford earned 66 cents per share.
Analysts were expecting the company to earn 71 cents for share, according to Thomson Reuters I/B/E/S.
Earned premiums in the property and casualty business were almost flat from a year earlier at $2.45 billion. They have not grown for three quarters now.
Net investment income fell 21 percent to $867 million.
Hartford is the 11th-largest property and casualty insurer in the country with a market share of 2.05 percent, according to the National Association of Insurance Commissioners (NAIC), a multi-state insurance regulatory body.
Shares of the company, valued at about $14.30 billion, have risen about 40 percent this year. They closed at $30.78 on Monday on the New York Stock Exchange.
(Reporting by Aman Shah in Bangalore; Editing by Saumyadeb Chakrabarty)