The economic crisis led to a report of negative revenue at Hartford Financial Services Group Inc. for the third quarter and also hurt results at Prudential Financial Inc. and MetLife Inc.
Hartford Financial, Hartford, is reporting a $2.6 billion loss for the third quarter on $393 million in negative revenue.
“This was an extremely difficult quarter for the company,” Hartford Chairman Ramani Ayer says in a statement.
Ayer says Hartford remains strong, and he notes that Hartford had to cope with the effects of Hurricane Ike on property-casualty operations during the third quarter as well as volatility in the credit and stock markets.
Prudential, Newark, N.J., is reporting a consolidated net loss of $166 million for all operations, including its closed block of business, and MetLife, New York, says its net income fell to $600 million, from $985 million.
Here is a look at the companies’ earnings releases:
Hartford Financial Services Group Inc., Hartford
3 Q 2008 Results
NET INCOME: $2.6 billion loss
NET REALIZED CAPITAL CHANGE: $3.4 billion loss
REVENUE: negative $393 million
PREMIUMS AND FEES: $5.2 billion
3 Q 2007 Results
NET INCOME: $851 million
NET REALIZED CAPITAL CHANGE: $363 million loss
REVENUE: $5.8 billion
PREMIUMS AND FEES: $5.4 billion
- The company is reporting a $422 million loss for “core earnings.” That figure includes catastrophe costs, a drop in investment income and $923 million in unlocking of deferred acquisition charges.
- Individual annuity net outflows were $1.3 billion, with a variable annuity surrender ratio of 12 %.
- Life insurance in force increased to $191 billion, up 9% from the total recorded in the third quarter of 2007, with universal life sales increasing 32% and term life sales increasing 20%.
- Retirement plan deposits grew 67%, to $2.3 billion, and retirement plan net flows increased 61%, to $626 million.
- Group benefits sales increased 26%, and core group benefits increased 9%, to $100 million.
- The company hopes to expand sales of absence management and productivity-increasing services to large employers.
Prudential Financial Inc., Newark, N.J.
3 Q 2008 Results
CONSOLIDATED NET INCOME: $166 million loss
NET FINANCIAL SERVICES BUSINESS REALIZED CAPITAL CHANGE: $547 million loss
FINANCIAL SERVICES BUSINESS INVESTMENT CHANGE ON TRADING ACCOUNT ASSETS: $534 million loss