The Hartford executes insurance plans
US insurer The Hartford has reiterated its plan to increase its shareholder value by growing its property/casualty division – strategy it said made good progress in the first quarter.
Liam McGee, The Hartford's chairman, president and chief executive officer, said: “We have made substantial progress on The Hartford's strategy to create greater shareholder value by profitably growing our P&C, group benefits and mutual funds businesses, reducing the size and risk of the company's annuity run-off operation, and increasing operating effectiveness and efficiency.”
The Hartford reported core earnings growth of 23 percent in the first quarter of 2014, with core earnings in P&C, group benefits and mutual funds also growing 23 percent year-over-year.
Over the next few years, the company also said it plans to invest in new systems, applications and business platforms to drive continued growth and margin expansion in these businesses.
The company said that the sale of its Japan annuity business announced in April substantially reduces its risk profile by permanently eliminating its Japan variable annuity risk.
"The transaction we announced to sell our Japan annuity company will generate an estimated $1.4 billion capital benefit," McGee told shareholders.
"The successful execution of the company's strategy has resulted in financial strength and flexibility, which has enabled us to increase the dividend, pay down debt and repurchase equity.
"I am grateful to all of The Hartford's dedicated employees who have made these achievements possible. We will continue to execute our strategy to drive profitable growth and deliver greater value to shareholders.”
