The Hartford Reports 21% Drop in Profits for 2d Quarter

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The Hartford Financial Services Group, one of the nation’s largest financial services and insurance companies, said that second-quarter profits fell 21 percent as the company took a charge for a reinsurance settlement.

The company said net income for the three months ended June 30 was $476 million, or $1.52 per share, compared with $602 million, or $1.98 per share a year ago.

“The underlying performance of the company was very strong this quarter,” said Ramani Ayer, chairman and chief executive officer of The Hartford. “The scale, flexibility and execution discipline of our company are tremendous assets as we face a more challenging competitive and economic environment.”

Revenue was $4.97 billion, down 18 percent from $6.06 billion a year ago, company officials said.

The results included a previously announced charge of $158 million, or 51 cents per share, mostly related to the reinsurance settlement, company officials said.

Excluding one-time items, the company said its earnings were $1.83 per share.

Analysts surveyed by Thomson First Call were expecting earnings of $1.70 per share.

The Hartford expects 2006 core earnings per share to be between $8.50 and $8.80. The company’s previous guidance range was $8.80 to $9.10 per share.