The Hartford Financial Services Group (HIG) reported second-quarter 2010 net income of $76 million, or $0.14, vs. a year-ago net loss of $15 million, or $(0.06) per diluted share.
Core earnings for the second quarter of 2010 were $92 million, or $0.17 per share, compared with core earnings of $622 million, or $1.90 per diluted share, for the prior-year period.
Excluding the effects of a second quarter deferred-acquisition cost unlock charge, goodwill impairment, elevated P&C catastrophe losses, and P&C prior year reserve development, core earnings were $460 million, or $0.92 per share.
Analysts had expected earnings of $0.71.
“The Hartford performed well, reporting another quarter of profitability in spite of market volatility, higher than expected catastrophes and several one-time events,” said Liam E. McGee, chairman, president and CEO in a statement.
“Book value per share grew 6% sequentially and net unrealized losses declined by more than 50%. The company showed good sales momentum in many segments. Small commercial written premium grew 3% over the prior year with strong profitability in a competitive market. Sales and deposits meaningfully increased from 2009 levels in the mutual funds, retirement plans and life insurance businesses,” McGee explained in a statement.
The Life segment reported net income of $88 million for the second quarter of 2010, compared with net income of $176 million for the prior-year period. Second-quarter 2010 net income included a DAC unlock charge of $230 million after-tax, compared with a DAC unlock benefit of $360 million, after-tax, for the prior year period.