Hartford WTC Losses Slightly Less Than Estimated

October 17, 2001

The Hartford estimates that its overall losses from the World Trade Center disaster will be around $440 million for the third quarter of the year, slightly down from its initial figure of $450 million.

Net losses related to the terrorist attacks, after reinsurance recoveries and taxes, from Hartford’s property and casualty operations, business interruption coverage, workers’ compensation and liability exposures will be approximately $420 million. It also attributes an additional $20 million in payments from Hartford Life to the attacks.

Hartford expects to record an operating loss for the third quarter of between 21 and 23 cents a share, and analysts forecast an overall loss of around 75 cents per share, compared with a profit of over a dollar a share in the same period last year.

The losses aren’t all due to the terrorist attacks. Hartford indicated that the general downturn in the economy, and the weakness in the stock markets would also have a negative effect on its earnings, along with capital losses from the sale of several foreign holdings.

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