NU Online News Service, Oct. 30, 2:06 p.m. – The Hartford Financial Services Group Inc., Hartford, is reporting a $103 million net loss for the third quarter on $3.7 billion in revenue, compared with $250 million in net income on $3.8 billion in revenue for the third quarter of 2000.
The net earnings figure includes $440 million in losses resulting from the Sept. 11 attacks and $130 million in tax savings.
Excluding the tax savings and the Sept. 11 losses, operating income increased 5%, to $258 million, the company says.
Hartford sells property-casualty insurance as well as life insurance and investment products.
Hartford Life, the unit that sells life insurance and investment products, did much better than the rest of the company, mainly because it accounted for only $20 million of the company’s $440 million in Sept. 11 losses.
Hartford Life brought in $250 million in net income for the third quarter on $1.6 billion in revenue, up from $152 million in net income on $1.6 billion in revenue.
Excluding the effects of special charges and benefits, Hartford Life operating income was up 13%, the company says.
The stock market slump hurt sales of mutual funds and variable annuities during the quarter, but Hartford reports sales of 401(k) plans, structured settlements, guaranteed investment contracts, group life insurance and individual life insurancewere all up.
A new subsidiary in Japan generated more than $150 million in variable annuity sales.