Hartford Financial Services Group reported a larger fourth-quarter profit as strength in its wealth management business offset declining income in its core property and casualty insurance business, Reuters reports.
Hartford Financial also doubled its quarterly dividend and forecast higher profits for this year that were in line with Wall Street expectations. Shares rose 3.1 percent in after-hours trading.
The company, one of three insurers to receive a U.S. government bailout during the financial crisis, launched a reorganization in April 2010 to streamline itself and improve its focus.
Hartford reported a net profit of $619 million, or $1.24 per share, compared with a year-earlier profit of $557 million, or $1.19 per share.
On a core basis, excluding investment gains and losses but including market-related accounting gains and benefits from releasing reserves, Hartford reported a profit of $1.06 per share. Analysts polled by Thomson Reuters I/B/E/S expected a profit of 96 cents per share excluding items.
Profits in wealth management more than tripled as strength in 401(k) plan sales helped offset continued declines in the company’s annuity business.
But profits dropped sharply in both the commercial and personal sides of the property and casualty insurance business, impacted by catastrophe losses and more positive releases of reserves in prior periods.
