The Hartford Financial Services Group, Inc. (NYSE: HIG) reported second quarter 2004 net income of $433 million or $1.46 per diluted share. Net income includes net realized capital gains of $31 million (after-tax) or $.11 per share and a $118 million charge (after-tax) or ($.40) per share resulting from results of a review of casualty reinsurance recoverables.
In the second quarter of 2003, net income was $507 million or $1.88 per diluted share, which includes net realized capital gains of $176 million (after-tax) or $.65 per share.
The Hartford’s operating income rose to $403 million in the second quarter of 2004 from $340 million in the second quarter of 2003, up 19 percent. In a quarter with an adjustment to the reinsurance recoverable asset, the company still achieved a return on equity over the last 12 months in excess of 15 percent.
“We’re very proud of The Hartford’s results this quarter. Anyone who has followed The Hartford in recent years knows that we are building a company that will compete vigorously over the long term, on our terms, both in the United States and internationally,” said The Hartford Chairman and Chief Executive Officer Ramani Ayer.
“Even as we continue to profitably grow and expand our product lines, we have remained attentive to our exposure to legacy issues. In the first quarter, we confirmed that our gross asbestos reserves were appropriate. In the second quarter, we reviewed our casualty reinsurance arrangements, and made a change in the amounts that we expect to recover from our reinsurers.
“As we look back on the second quarter, we are very encouraged by what we’ve seen. Our business is performing well at all levels, despite flat equity markets and growing competition in the property-casualty side of the business. We are on the right track to meet our goals,” Ayer added.
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