Hartford Financial Services Group Inc. Earnings Cheat Sheet

S&P 500 (NYSE:SPY) component Hartford Financial Services Group Inc. (NYSE:HIG) reported its results for the third quarter. Hartford Financial Services Group provides investment products and insurance products in the United States.

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Hartford Financial Services Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for the company was $0.0 (2 cents per share) vs. $666 million ($1.34 per share) the year earlier.

Actual vs. Wall St. Expectations: HIG reported adjusted net income of 5 cents per share. By that measure, the company fell short of mean estimate of 23 cents per share. It fell short of the average revenue estimate of $5.8 billion.

Quoting Management: “In the third quarter, the industry faced a combination of capital markets volatility and significant catastrophe claims,” said The Hartford’s Chairman, President and CEO Liam E. McGee. “These conditions were a good test for the improvements we have made throughout the organization, particularly in enterprise risk management. Despite the challenges, the underlying performance of the businesses was good, the investment portfolio held up well, and our capital position remained strong.”We are using all the levers we control to improve profitability and help offset the impact of lower investment yields. These include pricing actions and creating a more efficient operating model across the businesses. We are encouraged by the continued momentum in renewal written price increases in P&C Commercial. In Wealth Management, we are diversifying product offerings and distribution channels to drive profitability,” added McGee.

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by one cent with 0 cents versus a mean estimate of net income of one cent per share.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 61.9% to $5.4 billion in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 88 cents per share, down from 99 cents ninety days ago. The average estimate for the fiscal year is $2.31 per share, down from $3.07 ninety days ago.

Competitors to Watch: American Intl. Group, Inc. (NYSE:AIG), HCC Insurance Hldgs., Inc. (NYSE:HCC), American Financial Group (NYSE:AFG), RLI Corp. (NYSE:RLI), Selective Insurance Group (NASDAQ:SIGI), Assurant, Inc. (NYSE:AIZ), First Mercury Financial Corp. (NYSE:FMR), The Travelers Companies, Inc. (NYSE:TRV), CNA Financial Corporation (NYSE:CNA), and Hallmark Financial Services, Inc. (NASDAQ:HALL).

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(Source: Xignite Financials)

 

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