Earnings for The Hartford
plunged in the second quarter thanks to decreases in revenue and expenses due to debt restructuring.
The Hartford lost $101 million in Q2, compared with earnings of $96 million in the first quarter, and $33 million in the same quarter last year, the firm announced in a release
yesterday after market close. Revenue was down to $4.6 billion from $7.7 billion last quarter.
The Hartford's earnings from mutual funds fell 10 percent to $18 million from $20 million, while its earnings from retirement plans rose 25 percent to $5 million from $4 million. Hartford mutual funds saw a 14 decline in assets under management since Q2 2011, which was primarily due to outflows from equity mutual funds.
According to the firm's earnings statement, the Hartford repurchased $1.75 billion in junior subordinated securities from Allianz SE.
It also lost $98 million due to restructuring, and other expenses of $18 million associated with the contemplated sales of Individual Life
, Retirement Plans
andWoodbury Financial Services
. Chairman, president and CEO Liam McGee
noted the "definitive agreement" Tuesday to sell Woodbury Financial and said "the sales process for Individual Life and Retirement Plans is proceeding as expected."
Hartford shares closed at $16.32 yesterday, down from $16.45 the day prior.
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