The Hartford Financial Services Group Inc. reported a $101 million second-quarter net detriment Wednesday, a effect of profitable off a outrageous debt to Allianz SE.
Retiring a debt is partial of a insurer’s stability bid to refocus a priorities on word underwriting. As partial of that plan, it pronounced Tuesday that it is selling a bonds brokerage Woodbury Financial Services to American International Group Inc.
The insurer pronounced a detriment for a April-through-June duration amounted to 26 cents per share and compared with net income of $33 million, or 5 cents per share, a year earlier.
The entertain was dominated by a $587 million detriment for timid a debt. Results also enclosed a $77 million detriment from dropped operations due to a sale of Federal Trust Corp.
The insurer pronounced a handling gain rose to $119 million, or 23 cents per share, from $14 million, or a penny per share, final year. That was good next analysts’ normal guess of 44 cents per share, according to FactSet.
The Hartford finished purchasing behind a Allianz debt in Apr for $2.43 billion, a pierce it pronounced it done in a seductiveness of some-more financial coherence and to save about $45 million annually in seductiveness payments.
The debt and warrants were released to a German insurer in Oct 2008, during a inlet of a financial crisis. Hartford had pronounced afterwards that Allianz’s $2.5 billion investment would assistance it strengthen a collateral position.
Chairman and CEO Liam McGee pronounced a association is on devise in a bid to concentration some-more on skill and misadventure insurance, organisation advantages and mutual supports businesses. He pronounced second-quarter formula benefited from a pricing and underwriting actions a association instituted final year in skill and misadventure and organisation benefits.
Catastrophe waste for a entertain totaled $189 million, down neatly from a year ago when it was strike tough by charge waste and increasing lawsuit costs associated to aged asbestos lawsuits.
[The Hartford pronounced net income for a Commercial Markets — that embody P/C Commercial and Group Benefits units — rose 16 percent to $184 million in a second entertain from $159 million reported during a same duration one year ago. The P/C Commercial net income was $149 million, adult from $118 million posted during a prior-year period.
The P/C Commercial created premiums grew 1 percent to $1.516 billion due to aloft pricing opposite all business lines, equivalent by somewhat reduce influence and new business premiums. The P/C Commercial total ratio for a second entertain was 100.5 percent, improving from 106.2 percent one year ago.
The association pronounced P/C Commercial continued to advantage from clever renovation created pricing trends in all business lines. Small Commercial and Middle Market renovation created pricing increases averaged 7 percent, unchanging with a initial entertain of 2012. Middle Market pricing increasing 10 percent, while Middle Market workers’ remuneration renovation pricing increasing 16 percent in a quarter.
Retention remained clever during 82 percent in Small Commercial, a slight diminution from 83 percent in a second entertain of 2011. Middle Market influence was down to 73 percent compared with 79 percent in a before year period, reflecting a impact of a company’s pricing actions on a renovation book of business.
Consumer Markets had a net detriment of $50 million for a second entertain of 2012 compared with a net detriment of $172 million a year earlier. The Consumer Markets total ratio for a entertain was 112.6 percent, improving from 121.1 percent one year ago.
In a 2012 second quarter, Consumer Markets created premiums were $950 million, down 2 percent compared to a year earlier. However, new automobile and homeowners created reward rose 17 percent, helped by clever prolongation in AARP Direct and AARP Agency.
Net investment income, incompatible trade securities, declined 1 percent to $1.097 billion, before tax, in a second entertain of 2012 compared with a second entertain of 2011 due to a slight diminution in a annualized investment produce warranted on bound maturities that was partially equivalent by aloft investment income from an increasing change in aloft agreeable debt loans.]
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