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.

tchjjal August 03, 2012 at 12:17 AM
Buuuttttttt... I thought the private sectort was doing just fine?
Dude77 August 03, 2012 at 01:03 PM
Depends on the management of the company in question. Besides, the public sector ALWAYS operates at a loss - ALWAYS.
Robert Kalechman August 03, 2012 at 03:26 PM
Say what you will Simsbury Board of Selectman better start minding the store and stop the daily trips to the State capitol at Hartford in their self serving careers at tax payers expense .The recent increases in State of Connecticuts and Simsburys taxes will not help the Insurance Giant keep the cooperate raider away to date the only thing the democratic State Representative from Simsbury has done is endorses the democratic want a bees for votes who are flying around Simsbury and Hartford postulating and giving tax payers money to the wrong people time to keep the Hartford in Simsbury lets lower their taxes give them a tax break and help the Hartford Insurance stay in Simsbury other wise they will move next door to Windsor with the Town of Windsor and Connecticut giving the tax breaks .
R Eleveld August 03, 2012 at 07:06 PM
Actually they are more likely to move out of Connecticut Mr. Kalechman. Des Moines, Iowa is a major insurance industry player. Also in a free market IA has the critical employee mass now to be a major player for more insurance relocations. CT lost the "insurance capital" moniker years ago because of poor Insurance Dept. decisions relative to captives, and high operating costs. More concerning to those of us that observe economic trends is that more executives are leaving CT and that trend has just started, unless we pay "Jobsmail". What is “Jobsmail”: It is my term for blackmail where we pay companies to expand in CT(Deloitte), or move to CT(Dollar Tree and Jackson Labs ) or from moving out of CT (UBS & CareCentrix). In all honesty did the "largest professional services organization in the United States" really need more of our money? So we have to beg people to move, or stay or expand in Connecticut. Am I the only one that sees a long term problem with this idea? Illinois has had to do it as well after raising taxes. A very slippery and expensive slope. Notice raised taxes and then Jobsmail, notice a pattern? I am sorry but would it not be smarter and less expensive in the long term to cut spending, get taxes in check, and avoid all the jobsmail and payoffs that beg for corruption? No one has ever defined when enough taxes are enough. Articles available: http://www.ct.gov/ecd/cwp/view.asp?a=1104&q=249968
Jeff Tindall August 04, 2012 at 12:46 AM
Mr. Kalechman: Once again, you confuse me with your loose use of the facts. We have a democratic state representative who consistently voted against the budgets offered by both the governor and democratic state leadership. Not sure how this means she supported the "democratic want a bees" as you say. You are currently a candidate for this office and I applaud you committment to running for office. However, at some point you need to get your facts straight. Our democratic state representative has received nothing but headaches because she wouldn't "go along to get along."
Malvi Lennon August 04, 2012 at 02:11 PM
Unless we see a major shift in the LEgislature this November that puts the breaks on the Malloy machine CT will become another California, and our cities will resemble Chicago, and Detroit. Connecticut voters made the decision they wanted a one party system- look what they have done in just two years. We we do not stop them now, we will never stop them.
Catherine & Dennis August 04, 2012 at 02:39 PM
I agree totally with Mr. Eleveld here though I call it corporate blackmail. I believe this entire program should be a subject of investigation by the FBI -they need to look into what is really behind this whole idea that is literally bankrupting this state. Full, independent testing of soil does not take place at the Dollar Tree site and when they are backed into the ropes over that the Director of Deep shows up finally to give his A-ok. The Director? Sent by the Commissioner? Friend of the Governor? Abatement rules that change quietly just before the people find out about what is happening? The whole thing stinks and we are paying for it -through the nose. Would this land not have been even more valuable to everyone if it were purchased by someone that utilizes air freight to qualify for Federal money? But then again the suit in Simsbury over the same type of land that the EPA was involved in had just ended -it had to move and move quick. Corporate blackmail has got to stop.
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


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