The Hartford posts good results; sells HLIKK
US insurer The Hartford has posted exceptional results for the first quarter of 2014 with growth in most lines and vastly improved profits despite some losses from recent severe US weather events.
The results come amid the announcement that the insurer has sold its Japanese annuity company HLIKK to a subsidiary of ORIX Corporation, a Japanese diversified financial services company, for $895 million.
The company’s core earnings hit $564 million for the quarter, up 23 percent from $457 million in the first quarter of 2013.
Its net income hit a healthy $495 million this quarter, compared with a loss of $241 in the same quarter last year.
Its first quarter property and casualty combined ratio improved 3.8 points to 89.8 compared with 93.6 in the first quarter of 2013. Its earned premiums for the year increased slightly to $3.3 billion compared with $3.2 billion the year before.
“The Hartford’s first quarter earnings were outstanding, reflecting the strong fundamentals of the P&C, group benefits and mutual funds businesses,” said Liam E McGee, The Hartford’s chairman, president and chief executive officer.
“Despite the challenging winter weather, each business segment delivered core earnings growth over the prior year. Margins are improving and premiums are growing in P&C, while group benefits has achieved a substantial turnaround and mutual funds reported positive net flows.
“This morning’s announcement on our agreement to sell the Japan annuity company marks an important turning point for The Hartford. The transaction will materially reduce The Hartford’s risk profile at attractive economics, and positions us to create even greater value for shareholders. We are very pleased with The Hartford’s transformation, and remain focused on continuing to drive profitable growth in our businesses.”
