(Bloomberg) – Hartford Financial Services Group Inc., which is among insurers pressured by low bond yields and volatile markets, is benefiting from a rebound beyond its fixed-income portfolio.
|Strong returns
The annualized yield from so-called limited partnership holdings this quarter will probably exceed the company's target of 6 percent, Chief Financial Officer Beth Bombara said Wednesday at a conference held by Keefe, Bruyette & Woods. The LP portfolio includes private-equity, hedge fund and real estate investments.
"We're anticipating that we will have very strong results there," she said. "We've benefited from some very strong returns in the private-equity portion of our portfolio, as some of those funds have sold some underlying investments. That has realized some gains."
|Net investment income dropped previously
Private-equity funds struggled to find buyers for their holdings in late 2015 and the early months of this year as stock markets plunged. That hurt Hartford, as net investment income dropped 14 percent in the first quarter from a year earlier to $696 million. The figure climbed to $735 million in the three months ended June 30.
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