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.
