The Hartford Financial Services Group, Inc. reported that it currently estimates its third quarter 2003 earnings per diluted share will be between $1.15 and $1.18, including additional reserves for the cost of resolving its previously disclosed dispute with Bancorp Services, LLC, and the cost of claims resulting from Hurricane Isabel.
The additional reserve of approximately $40 million (after-tax), or $0.14 per diluted share, for the third quarter, reflects the company’s current best estimate of the cost of resolving the Bancorp dispute. The company also currently estimates claim costs related to Hurricane Isabel to be $26 million (after-tax), or $0.09 per diluted share, for the third quarter.
The third quarter 2003 earnings estimate assumes that the company will have no net realized capital gains or losses in the quarter. While the company may incur net realized capital gains or losses in the quarter, any such gains or losses are not expected to be material.
The Hartford also adjusted its full year 2003 operating income per share guidance to $5.10 to $5.25 per diluted share. This estimate excludes the effect of net realized capital gains or losses, the first quarter asbestos charge and the third quarter Bancorp expense.