The Hartford Reports Increased Income, AUM for Q3

Strong performance in investment, wealth management segments drove increases

The Hartford reported Tuesday third quarter income of $666 million, up from a loss of $220 million one year ago. Earnings were $710 million, or $1.43 per diluted share; in 2009, third quarter earnings were $660 million.

Income is up from $76 million in the second quarter of 2010.

"The Hartford delivered strong financial performance this quarter," Liam McGee, chairman, president and CEO, said in a statement. "These results were achieved through solid execution, including disciplined underwriting performance, improved investment results and growth in assets under management."

He noted that the commercial property and casualty lines are "competitive" and in response to slow economic growth, the company is "focused on execution."

"We are making good progress implementing our strategy and are well positioned for when the economy begins to expand," he said.

The book value per common share in third quarter 2010 was $45.80, a 21% increase over 2009's $37.90 per share.

The wealth management segment posted income of $320 million, up from a $335 million loss in 2009. The segment managed $301 billion in assets, a 3% increase year-to-date, and a 6% increase over the second quarter. The increase in AUM is a consequence of equity market appreciation and retirement plan inflows.

Retirement plan account values jumped 15% to $49.2 billion, while mutual fund account values increased 4% to $95.2 billion.

Individual life sales increased 14% over one year ago, "reflecting strong progress in the independent agent channel," according to the company.

Total invested assets were just over $101 billion. Excluding trading securities, investment income increased 3% from third quarter 2009 on an $81 million improvement in alternative investments. Impairments and the net increase to the mortgage loan loss reserve declined to $122 million, according to the company; impairments and additions to the mortgage loan reserve were a result of property specific collateral deterioration on commercial real estate backed securities.

Reprints Discuss this story
This is where the comments go.