The Hartford Financial Services Group today doubled its earnings estimate for the fourth quarter, another sign the Hartford property-casualty insurer is regaining its financial footing after a tumultuous 2009.
The company said it now expects its core earnings per share for the fourth quarter to be between $1.45 and $1.60, as compared its previous guidance of $0.65 to $0.80.
The Hartford plans to release its complete fourth quarter and full year 2009 financial results on Feb. 8.
With the news, shares of the company rose nearly 9 percent in morning trading to $26.17, sparking a rally among insurance stocks.
Liam E. McGee, The Hartford’s chairman, CEO and president, said the insurer’s core business performed well in the quarter, leading to the improved financial results.
 “This is our third consecutive quarter of improving core earnings results, demonstrating the underlying strength of The Hartford’s franchise,” McGee said.
During the fourth quarter, the company said its property and casualty operations continued to see strong underwriting profitability, driven by disciplined risk selection and light catastrophe losses. Meanwhile its life insurance business saw improving margins in its more “equity-sensitive businesses.”
The economic downturn hit The Hartford hard, causing the company to experience heavy investment losses, and losses related to its variable annuity business.
McGee took over as the company’s chairman and CEO in October, following the retirement of Ramani Ayer. The company’s board of directors has been impressed with the former Bank of America executive’s early performance, rewarding him with the additional title of president last week.
McGee is expected to present a forward-looking strategy for The Hartford sometime early in 2010.
