The Hartford suffered a serious 83% drop in net income due, the firm announced yesterday, to poor investments.
The insurance and annuity giant took in $145 million in net profit, or 46 cents a share, down from $876 million, or $2.71 a share, in the first quarter of 2007.
The Hartford said it placed $638 million of capital losses on its books in the quarter and that returns on [its] alternative investment portfolio were well below our expectations. In addition, the firm was forced to write down the value of bonds due to declines in current market trading value.
Referring to new accounting rules and the credit turmoil, The Hartfords Chairman and CEO Ramani Ayer issued a statement defending the performance, saying the firm had actually done well in what proved to be a volatile economic climate this quarter.
Meanwhile, CFO David M. Johnson is leaving. UBS Analyst Andrew Kligerman has just issued a short-term sell on the stock, The Hartford Courantreports.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.