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The Hartford Reports Huge 2Q Loss

The insurance giant reported a loss of more than $100 million in the wake of restructuring the services it provides customers.

Just days after The Hartford Financial Services Group announced the sale of its Woodbury Financial Services to AIG, the company revealed a second quarter loss of $101 million.

While the sale of Woodbury Financial did not affect the company's second quarter results, the sale and the report are closely associated with the company's recent moves to focus on its mutual funds, group benefits, and property and casualty businesses.

According to a statement released by the company, which maintains campuses in Windsor and Simsbury, the second quarter net loss includes "a $587 million loss on extinguishment of debt."

Despite the report, company CEO Liam McGee expressed optimism due to the $486 million the company brought in since April, and moves like the Woodbury sale, which have put the company "on the right path to create greater shareholder value by sharpening our business focus, improving expense efficiency, increasing capital generation and reducing market risks."

The restructuring of the company's priorities was set in motion earlier this year, which included the announcement of the sale of its individual annuities business in April.

Stopping the sale of annuities, the company expects, will decrease operating costs by $100 million, starting in 2013.

The downsizing of the company through the sale of several divisions is expected to continue to affect jobs in the region through the end of the calendar year.

Catherine & Dennis August 04, 2012 at 02:42 PM
Everyone now should look at the Dollar Tree debacle -because guess what? It is not something that is just not in your backyard -people in Windsor pay for it twice! With the Bradley plan I am seeing CT looking more like NJ. Wake up people!
Catherine & Dennis August 04, 2012 at 03:11 PM
It should also be stated when speaking of "jobsmail" or "corporate blackmail" and the First Five or however many it really is....the jobs this governor is touting on his press release is a down right lie. CT needs to understand these jobs he is claiming to get with your money are not all for CT jobless. He stated in the press release for the Dollar Tree that he got 425 construction workers -go look for yourselves at the plates on the construction workers vehicles -most are Mass plates. The construction company is from Virginia. Remember also while looking for yourselves, some of the CT plates are Town employees and State officials there -visiting them due to the daily complaint calls they get. At the end of it all when he speaks to the jobless rate remember this and his math skills -"The 7th of the First Five".
teresa hoff August 04, 2012 at 11:27 PM
The Hartford is out of simsbury, just wait. More are going to go as well in the area, it is in the works. Ok democrats who put Malloy in, happy yet? people and companies are leaving this state in droves. A friend of mine owns a company in the area that currently does 27 mil in business and he is looking to get out very soon. he has had it and is gone. 54 employees and all the revenue
Malvi Lennon August 05, 2012 at 01:31 PM
@Teresa Hoff: Haven't you heard? It is not the tax hikes, or the high-energy costs, or the exorbitant cost of health insurance driving good jobs out of our state. It is corporate greed, those evil millionaires (not). Malloy and his cronies in the legislature and in town government need to stop picking winner and losers. The corporate welfare for Jackson Labs, Dollar Tree and others is not going to create good paying jobs. Instead, it is payback to political allies for past and future contributions (a la Donovan). We need to change course. It is in the hands of the people. This November the people can re-elect Malloy or vote for new legislators willing to stand up and say NO to Malloy and the others.
Catherine & Dennis August 05, 2012 at 03:38 PM
@Malvi...amen!

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