Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Hartford Financial Services Group Inc    HIG

Delayed Quote. Delayed  - 07/26 10:02:35 pm
44.2 USD   -0.41%
12:03p THE HARTFORD : Signs Agreement To Sell U.K. P&C Run-Off Subsidiaries..
07/25HARTFORD FINANC : half-yearly earnings release
07/22 BRIEF : Hartford Funds moving HQ to Wayne
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Hartford Financial 2012 Earnings Now a Loss After Third-Quarter Restatement

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/02/2013 | 02:08am CEST
    By Ben Fox Rubin and Leslie Scism 
 

Hartford Financial Services Group Inc. (>> Hartford Financial Services Group Inc) restated its third-quarter 2012 results, resulting in a loss for the year instead of a profit, due to an accounting error related to a sale of its life insurance operations.

Hartford submitted an amended filing with the Securities and Exchange Commission to correct the company's preliminary calculation of "the gain or loss relating to the Individual Life business transaction," according to a company announcement late Friday.

Late last year, Prudential Financial Inc. (>> Prudential Financial Inc) agreed to acquire Hartford's individual life-insurance business for $615 million in cash, allowing Hartford to free up almost $1 billion in capital held to support the life insurance business.

The original accounting error was made internally, and it was found internally, a Hartford spokeswoman said. Deloitte & Touche LLP, its independent auditor, had reviewed the third-quarter results as filed with the SEC. Deloitte will remain as the company's auditor, the spokeswoman said.

Phone calls and emails to Deloitte seeking comment weren't immediately returned.

Internally, "we have increased the level of review and validation work performed by our management and accounting professionals," the spokeswoman said.

The correction resulted in the company now posting a full-year 2012 loss of $38 million and shareholders' equity of $22.4 billion, compared with its previously reported annual income last year of $350 million and shareholders' equity of $22.8 billion.

The company said its 2012 core earnings of $1.4 billion are unchanged.

"We regret the error, but importantly the adjustments have no impact on our reported 2012 core earnings, statutory results or surplus, and announced capital management plan," Chief Executive Liam E. McGee said.

In addition, the company said it determined "there was a material weakness in its internal control over financial reporting at September 30, 2012, which was remediated as of December 31, 2012."

In September of last year, Hartford estimated the Individual Life transaction would not generate a material gain or loss under generally accepted accounting principles. Following the identification of the error, the company estimates the transaction will result in a loss of $393 million, after tax.

The estimate is subject to change, pending a few other adjustments.

"The error resulted from the omission of the impact of certain reinsurance recoverable balances on the gain/loss calculations for the transaction," the company said.

In February, the insurer announced plans to reduce debt by $1 billion, and its board authorized a $500 million stock repurchase program. Hartford also said that it won approval from state insurance regulators to pay a $1.2 billion dividend by the end of the current quarter from Connecticut-based life-insurance units to the parent company.

Mr. McGee said the moves will help balance a number of critical goals. Those include paying down debt, returning capital to shareholders and further strengthening financial flexibility to reduce risk from past sales of annuities.

The 200-year-old insurer has been completing a major overhaul to refocus on its property-casualty, group-benefits and mutual-funds operations while shedding businesses amid pressure from some shareholders.

Shares closed Friday at $23.68 and were unchanged after hours. The stock is up 12% over the past three months.

Write to Ben Fox Rubin at ben.rubin@dowjones.com and Leslie Scism at leslie.scism@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HARTFORD FINANCIAL SERVICE
12:03p THE HARTFORD : Signs Agreement To Sell U.K. P&C Run-Off Subsidiaries To Catalina
07/25HARTFORD FINANCIAL SERVICES GROUP IN : half-yearly earnings release
07/22 BRIEF : Hartford Funds moving HQ to Wayne
07/21 HARTFORD FINANCIAL SERVICES GROUP IN : Amendments to Articles of Inc. or Bylaws;..
07/21 THE HARTFORD : Amends Bylaws Allowing Shareholders Proxy Access
07/21 HARTFORD FINANCIAL SERVICES : Millennial Advisors Reveal Future of Financial Adv..
07/18 THE HARTFORD : Integrates Dental, Vision Coverage With Its Disability, Life Insu..
07/01 HARTFORD FINANCIAL SERVICES : A.M. Best Affirms Ratings of The Hartford Financia..
06/21 HARTFORD FINANCIAL SERVICES : Drivers Age 50+ Want More High-Tech Safety In Next..
06/20 HARTFORD FINANCIAL SERVICES : Company Shares of Hartford Financial Services Grou..
More news
Sector news : Multiline Insurance & Brokers - NEC
11:46pDJChubb's Operating Earnings Soar
11:28pDJChubb Operating Earnings Soar
04:25pDJJANUS CAPITAL : Revenue and Profit Decline
11:55aDJMAN : U.K. Hedge Fund Man Group Battered by Decline in Fees
07/21DJTravelers Operating Earnings Fall
More sector news : Multiline Insurance & Brokers - NEC
News from SeekingAlpha
07/18 Jon Corzine Was A Fortune Teller Ahead Of His Time
07/15 Generating 6% Yield In A 0% World - Building Exchange Traded Debt Ladders
07/11 17 Picks For Income Investors In This Crazy Market
07/01 Invesco Diversified Dividend Fund A (LCEAX) June Summary
06/17 Exchange Traded Debt - Strong Income For Yield-Starved Investors Or Looming O..
Advertisement
Financials ($)
Sales 2016 18 597 M
EBIT 2016 1 605 M
Net income 2016 1 510 M
Debt 2016 -
Yield 2016 1,97%
P/E ratio 2016 11,80
P/E ratio 2017 10,37
Capi. / Sales 2016 0,94x
Capi. / Sales 2017 0,91x
Capitalization 17 458 M
More Financials
Chart HARTFORD FINANCIAL SERVICE
Duration : Period :
Hartford Financial Service Technical Analysis Chart | HIG | US4165151048 | 4-Traders
Full-screen chart
Technical analysis trends HARTFORD FINANCIA...
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 50,4 $
Spread / Average Target 14%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Christopher J. Swift Chairman & Chief Executive Officer
Douglas G. Elliot President
William A. Bloom Executive Vice President-Operations & Technology
Beth Ann Bombara Chief Financial Officer & Executive Vice President
Michael G. Morris Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HARTFORD FINANCIAL SER..2.12%17 458
ALLIANZ SE-23.05%63 410
AMERICAN INTERNATIONAL..-11.80%61 166
CHUBB LTD9.49%59 425
ZURICH INSURANCE GROUP..-9.75%35 463
MARSH & MCLENNAN COMPA..19.46%34 526
More Results