Hartford 3Q Net Income Up 44 %
By Steve Tuckey
NU Online News Service, Nov. 5, 4:15 p.m. EST--The Hartford Financial Services Group yesterday reported its 2004 third quarter net income rose 44 percent to $494 million.[@@]
On the property-casualty side, the company reported an after-tax catastrophe loss of $263 million. It also reported a tax benefit of $216 million, stemming from the favorable resolution of various tax items relating to tax years prior to 2004 and a 12 percent rise in written premium for on going property casualty operations.
Before the catastrophes, the company reported a combined ratio in ongoing operations of 93.3 percent. But catastrophes added 15.6 points in the current quarter compared to 3.4 points in the third quarter of last year.
The life operation figures were bolstered by $190 million prior tax year benefit recorded in the current quarter, and a $40 million Bancorp settlement expense recorded in the comparable year-ago period.
Including these items, life operating income in the quarter was $496 million, compared to an operating income of $181 million in the third quarter of 2003.
The Hartford has been among the major companies targeted in N.Y. Attorney General Eliot Spitzer's probe of brokerage contingency fees and charges of bid-rigging. And today, Hartford Life received subpoenas in connection with a stock sale by its president, Thomas Marra.
Hartford CEO Ramani Ayer in the company's quarterly report took note of the "spotlight on our industry."
"In recent weeks, we have been addressing the issues raised by the inquiries being conducted by the states attorneys general and others. We are committed to a comprehensive assessment of these issues and a thorough and complete resolution," he said.
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