The Hartford, Prudential, MetLife

The Hartford (Conn.) Financial Services Group Inc. today reported a third-quarter net loss of $2.6 billion, or $8.74 per diluted share.
OCT 29, 2008
The Hartford (Conn.) Financial Services Group Inc. today reported a third-quarter net loss of $2.6 billion, or $8.74 per diluted share. That’s down from a profit of $851 million, or $2.68 per diluted share, for the comparable period last year. Profits were battered by a $2.2 billion net realized capital loss, which included $932 million after-tax charge related to the company’s deferred acquisition costs. Variable annuity deposits also fell during the third quarter, as sales fell during a rocky period for the equity markets: VA deposits came to $1.9 billion, down from $3.3 billion in the previous year. Prudential Financial Inc. of Newark, N.J. also reported a loss — of $108 million, or 23 cents per common share, for its financial services businesses. That unit includes its insurance, investment and corporate divisions, as well as its international insurance and investments department. In the third quarter of 2007, Prudential brought in net income of $860 million, or $1.88 per share. Adjusted operating income tumbled for Pru’s insurance division, hitting $32 million for the third quarter, compared with $556 million in the year-earlier period. The individual annuities segment reported a $307 million loss for adjusted operating income, compared to a $205 million gain in the year-earlier quarter. MetLife Inc. of New York said that its net income fell to $600 million, or 83 cents per share, from $985 million, or $1.29 per share. The carrier’s individual business segment had operating earnings of $218 million, down from $363 million in the prior period. Annuity operating earnings also fell to $83 million from $235 million, due to volatile equity markets and lower investment income. Nevertheless, the company reported increased total premiums, fees and other revenues of $8.6 billion, up 16% from the third quarter of 2007.

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