WASHINGTON (dpa-AFX) - Insurance company Hartford Financial Services Group Inc. (HIG) Monday reported a swing to fourth-quarter profit, due mainly to a sharp decrease in catastrophe losses at its property and casualty unit. The results for the quarter came in above Wall Street estimates.
Hartford's results were helped by a decrease in fourth-quarter catastrophe losses to $28 million from $335 million a year ago. Overall, the insurance sector has benefited compared with last year, when insurers incurred huge catastrophe costs due to the impact of super storm Sandy.
For the fourth quarter, the Hartford, Connecticut-based company posted quarterly net income of $314 million or $0.65 per share, compared with net loss of $46 million or $0.13 per share last year.
Excluding items, operating earnings for the quarter were $456 million or $0.94 per share, compared with $256 million or $0.52 per share a year ago.
On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
Hartford attributed the improvement in core earnings to higher profit in P&C Commercial, Group Benefits, Talcott Resolution and Corporate. Combined ratio in the property and casualty unit improved to 94.9 percent from 109.2 percent last year.
Revenues for the quarter were $6.1 billion, compared with $7.7 billion a year ago. Three analysts had a consensus revenue estimate of $5 billion.
For fiscal year 2014, Hartford expects core earnings of $1.65 billion to $1.75 billion, compared with $1.74 billion in 2013. Catastrophe losses are expected to be $305 million.
The insurer projects 2014 and 2015 capital management plan totaling about $2.66 billion, including equity repurchases of $2 billion.
At the end of the quarter, Hartford had a book value per share of $39.14, compared with $45.80 last year.
Hartford has reduced VA policy counts in Japan and the U.S. Earlier, it weaned away from non-core businesses to focus on property and casualty, group benefits and mutual fund businesses.
Hartford stock closed Monday at $32.18, down $1.07 or 3.22%, on a volume of 7.8 million shares on the NYSE. In after hours, the stock gained $0.25 or 0.78% at $32.43.
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