This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Hartford Reports Third Quarter 2010 Net Income Of $666 Million, Compared To Net Loss Of $220 Million In Prior Year

  • Core earnings* of $710 million, or $1.43 per diluted share
  • Investment portfolio continues to improve, with a net unrealized gain of $1.2 billion at end of third quarter, compared to a net unrealized loss of $1.5 billion at June 30, 2010
  • Book value per common share of $45.80, up 11% sequentially and 21% year-over-year
  • P&C Commercial written premium* up 4% over the prior year period

The Hartford Financial Services Group, Inc. (NYSE:HIG) today reported third quarter 2010 net income of $666 million, or $1.34 per diluted share. In the third quarter of 2009, the company reported a net loss of $220 million, or $(0.79) per diluted share. Core earnings for the third quarter of 2010 were $710 million, or $1.43 per diluted share, compared with core earnings of $660 million, or $1.56 per diluted share, for the prior year period.

“The Hartford delivered strong financial performance this quarter,” said Liam E. McGee, The Hartford’s chairman, president and chief executive officer. “These results were achieved through solid execution, including disciplined underwriting performance, improved investment results and growth in assets under management.”

“The environment in the commercial property and casualty lines remains competitive, and economic growth has been slow. In response, we are focused on execution - leveraging our capabilities to retain profitable business and to win new business where it makes sense for us, and driving greater efficiency. We are making good progress implementing our strategy and are well positioned for when the economy begins to expand,” added McGee.


(in millions except per share data)

  Quarterly Results  
  3Q '10   3Q '09   Change
Net income (loss)   $666   $(220)   NM
Net income (loss) available to

common shareholders per diluted


  $1.34   $(0.79)   NM
Core earnings   $710   $660   8%
Core earnings available tocommon shareholders per diluted

share *

  $1.43   $1.56   (8%)
Book value per common share   $45.80   $37.90   21%
Book value per common share

(ex. AOCI) *

  $45.36   $46.30   (2%)

The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as “NM” or not meaningful.

The company’s third quarter 2010 core earnings included the effect of the following items, which contributed core earnings of $0.45 per diluted share in total (all numbers are after-tax unless otherwise noted):

  • Positive DAC unlock of $166 million, or $0.34 per diluted share, driven by global equity market appreciation
  • A benefit of $99 million, or $0.19 per diluted share, from net prior year reserve development in P&C Commercial and Consumer Markets
  • A charge of $40 million, or $0.08 per diluted share, to increase reserves as a result of the company’s annual environmental reserve evaluation, included in the Corporate and Other segment


Third Quarter 2010 Highlights:

  • Strong profitability in P&C Commercial, with a 92.2% combined ratio, excluding catastrophes and prior year reserve development
  • P&C Commercial written premium* up 4% from prior year period, driven by growth in the small commercial and specialty casualty lines
  • In standard commercial lines, policy count retention was up 3 points over the prior year period and policies-in-force grew 4% over the prior year period
  • Renewal written pricing remained positive in standard commercial lines, up 1% for the third consecutive quarter
  • Disability claims experience remains elevated in Group Benefits, and the company is implementing rate changes to address loss cost and interest rate trends

P&C Commercial

      3Q '10     3Q '09
Written Premium (in millions)     $1,447     $1,387
Combined Ratio**     92.2%     93.1%

**Excludes catastrophes and prior year development

Group Benefits

      3Q '10     3Q '09
Fully Insured Premium***

(in millions)

    $1,043     $1,059
Loss Ratio***     77.1%     69.4%

***Excludes buyout premiums

1 of 10

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs