Hartford posts higher net, beats view

By Ed Leefeldt

NEW YORK (Reuters) - Hartford Financial Services Group Inc (HIG.N: Quote, Profile, Research, Stock Buzz), the fourth-largest U.S. insurer by assets, said on Thursday its third-quarter net income rose 12 percent, helped by growth in its life insurance operations.

However, net capital losses of $212 million worried analysts and its shares were up only slightly in aftermarket trading.

Hartford said net earnings were $851 million, or $2.68 a share, up from $758 million, or $2.39 a share, in the year-earlier quarter.

Hartford said operating earnings, which analysts use to measure performance, were up 46 percent to $1.06 billion or $3.33 a share, exceeding analysts' average forecast of $2.46 a share, according to Reuters Estimates.

In the year-ago quarter, Hartford earned $727 million, or $2.30 a share, in operating earnings.

Hartford raised its outlook for 2007 operating earnings to a range of $10.60 to $10.75 per share, up from $9.60 to $9.90 a share.

In aftermarket trading, Hartford's shares rose less than 1 percent to $92 a share from their close at $91.54 on the New York Stock Exchange, after a loss of 82 cents during the regular trading day.

"The $212 million in net realized capital losses is material," said Matt Nellans, an analyst with Morningstar Inc.