Hartford Plummets on Loss, Capital Concerns

Hartford Financial Services Group (HIG Quote) shares were losing more than 50% Thursday as the insurer's third-quarter earnings revealed that its variable annuity business has suffered tremendously and further market deterioration, even since the quarter's close, continues to drive concerns about capital adequacy.

Hartford's shares were sinking $10.78 Thursday afternoon to trade around $9.08 on fears that the company may need to raise more capital following its mid-October $2.5 billion capital infusion from Allianz (AZ Quote) further diluting shares.

Following Wednesday's market close, Hartford reported a $2.6 billion net loss for the quarter with $834 million attributed to the individual annuity business alone. Variable annuity deposits for the quarter were down to $1.9 billion, compared to $3.3 million in the third quarter of 2007 due to decreased sales. Assets under management decreased to $92 billion, from $123 billion a year ago due to the decline in equity markets. ...