Hartford Financial Services Group Expects $440 Million 3Q Loss

October 18, 2001

Hartford Financial Services Group Inc. said it will take a loss of $440 million in the third quarter for paying claims arising from the destruction of the World Trade Center Sept. 11 and said it envisions an operating loss in the quarter.

The $440-million loss is just below the $450 million maximum forecast by Hartford in September. It includes $420 million from its property and casualty operations and $20 million related to Hartford Life, its life insurance unit. The figure is after tax and includes the effect of reinsurance coverage bought by Hartford.

Hartford repeated its view from last month that smaller equity markets would cut profits at its stock-market sensitive variable annuity operation, cutting a further 5 cents to 10 cents off third-quarter earnings.

Including a $130 million one-off tax benefit in the quarter, worth 55 cents per share, Hartford said it now expected to report a third quarter 2001 operating loss of 21 cents to 23 cents per share.

Was this article valuable?

Here are more articles you may enjoy.