- Net loss of $81 million compared with
net income of $421 million in fourth quarter 2015 primarily due to
a $423 million, after-tax, charge related to the
previously-announced retroactive reinsurance agreement covering
asbestos and environmental (A&E) liability exposures; net loss
per diluted share of $0.22 compared with net income per diluted
share of $1.01 in fourth quarter 2015
- Core earnings* of $415 million
decreased 7% from $445 million in fourth quarter 2015; core
earnings per diluted share* of $1.08 rose 1% from $1.07 in fourth
quarter 2015 due to the impact of equity repurchases
- Commercial Lines combined ratio of
91.3, a 3.2 point increase from fourth quarter 2015; Underlying
combined ratio* of 88.2, flat with fourth quarter 2015
- Personal Lines combined ratio of 106.7,
an 11.4 point deterioration from fourth quarter 2015; underlying
combined ratio of 101.8, an 8.3 point deterioration from fourth
quarter 2015 due to automobile liability, a portion of which
related to the first nine months of 2016
- Book value per diluted share of $44.35,
up 3% from Dec. 31, 2015; book value per diluted share excluding
accumulated other comprehensive income (AOCI)* was $45.24, up
3%
The Hartford (NYSE:HIG) reported a net loss of $81 million in
fourth quarter 2016 compared with net income of $421 million in
fourth quarter 2015 and core earnings of $415 million in fourth
quarter 2016, down from $445 million in fourth quarter 2015.
* Denotes financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP
measures can be found in this news release under the heading
Discussion of Non-GAAP Financial Measures
The net loss was primarily due to a fourth quarter 2016 charge
of $423 million, after-tax, resulting from a reinsurance agreement
with National Indemnity Company covering The Hartford's A&E
liability exposures. The net loss for fourth quarter 2016 also
included an unlock charge of $12 million, after-tax, compared with
an unlock benefit of $35 million, after-tax, in fourth quarter
2015. Both fourth quarter 2016 net loss and core earnings were
affected by the $102 million, after-tax, decrease in property and
casualty (P&C) underwriting results, partially offset by a $40
million, after-tax, increase in investment income from limited
partnerships and other alternative investments (LPs). The decrease
in P&C underwriting results compared with fourth quarter 2015
was primarily due to higher current accident year personal
automobile liability losses and, for P&C in total, a $39
million, after-tax, net unfavorable change in prior accident year
development (PYD) and an $18 million, after-tax, increase in
catastrophe losses.
Fourth quarter 2016 net loss per diluted share was $0.22
compared with net income per diluted share of $1.01 in fourth
quarter 2015. During 2016, the company repurchased 30.8 million
common shares for a total of $1.3 billion, which was the primary
contributor to an 8% decrease in the company's weighted average
diluted common shares outstanding. Core earnings per diluted share
in fourth quarter 2016 were $1.08 compared with $1.07 in fourth
quarter 2015, an increase of 1% as the impact of share repurchases
more than offset the 7% decline in core earnings.
"The Hartford delivered strong performance this quarter,
although losses from personal auto and the charge from our
reinsurance agreement for asbestos and environmental exposures
impacted our results,” said The Hartford’s Chairman and CEO
Christopher Swift. “In light of market conditions, we are pleased
with the strong margins in Commercial Lines and Group Benefits,
reflecting disciplined execution, and also with the performance of
Mutual Funds and Talcott Resolution. In Personal Lines our numerous
initiatives are improving the quality and price adequacy of our new
business and renewals, although financial results remained
disappointing.”
The Hartford’s President Doug Elliot said, “Commercial Lines had
an excellent quarter, with a stable underlying combined ratio of
88.2, solid growth in new business, and consistent retention and
renewal written price increases. Group Benefits delivered very good
results, with top line growth and an improved core earnings margin.
However, Personal Lines had a net loss for the quarter as we
strengthened auto bodily injury liability reserves for accident
years 2015 and 2016 in response to severity trends that remain
elevated. With the pricing and underwriting actions we have
implemented in Personal Lines auto, we expect better results in
2017.”
Swift concluded, “I am proud of the successes we achieved in
2016 as we navigated through challenging market environments.
Looking forward, we expect competition and loss cost trends to put
modest pressure on our strong Commercial Lines and Group Benefits
margins. In Personal Lines, we are working diligently to achieve
better results in 2017. Across the company, we will remain a
disciplined underwriter, balancing growth and profitability, as we
continue investing in our businesses to generate long-term growth
with greater efficiency.”
Book value per diluted share was $44.35 as of Dec. 31, 2016, up
3% compared with Dec. 31, 2015 as a result of a 7% decrease in
common shares outstanding and dilutive potential common shares,
partially offset by a 4% decrease in stockholders' equity resulting
from share repurchases and common stockholder dividends in excess
of net income during 2016. Excluding AOCI, book value per diluted
share as of Dec. 31, 2016 also increased 3% to $45.24 from $43.76
as of Dec. 31, 2015.
Net income return on equity (ROE) was 5.2% in fourth quarter
2016 compared with 9.3% in fourth quarter 2015, and core earnings
ROE* was 7.6% in fourth quarter 2016 compared with 9.2% in fourth
quarter 2015.
FINANCIAL RESULTS SUMMARY
($ in millions except per
share data)
Three Months Ended Year Ended
Dec 312016
Dec 312015
Change¹
Dec 312016
Dec 312015
Change¹ Net income (loss)
$ (81 ) $
421 NM
$ 896 $ 1,682
(47 )% Less: Unlock benefit
(charge), before tax (20 ) 53 NM (2 )
80 NM Less: Net realized capital losses
after deferred policy acquisition costs (DAC), excluded from core
earnings, before tax (146 ) (135 ) (8 )% (256 ) (175 ) (46 )% Less:
Restructuring and other costs, before tax — (4 ) (100 )% — (20 )
(100 )% Less: Loss on extinguishment of debt, before tax — — — —
(21 ) (100 )% Less: (Loss) gain on reinsurance transactions, before
tax (650 ) — — (650 ) 28 NM Less: Income tax benefit, including
amounts related to before tax items excluded from core earnings 320
62 NM 469 131 NM Less: Income from discontinued operations,
after-tax —
— — —
9 (100 )%
Core
earnings $ 415
$ 445 (7 )%
$ 1,335 $
1,650 (19 )% Weighted
average diluted common shares outstanding 383.8 415.9 (8 )% 394.8
425.2 (7 )% Net income per diluted share² $ (0.22 ) $ 1.01 NM $
2.27 $ 3.96 (43 )% Core earnings per diluted share²
$ 1.08 $ 1.07 1 %
$ 3.38 $ 3.88
(13 )%
Select operating data: Net investment income $
758 $ 695 9 % 2,961 3,030 (2 )% Annualized investment yield, before
tax, excluding LPs 4.2 %
4.1 % 0.1 4.1 %
4.1 % — Combined ratio by
segment: Commercial Lines 91.3 88.1 (3.2 ) 92.8 92.6 (0.2 )
Personal Lines 106.7 95.3 (11.4 ) 104.8 97.0 (7.8 ) P&C
combined ratio 97.2 91.6 (5.6 ) 100.1 96.6 (3.5 ) Impact of
catastrophes and PYD on combined ratio
4.1 1.1 (3.0 )
8.2 5.6
(2.6 ) Underlying combined ratio by segment:
Commercial Lines 88.2 88.2 — 89.4 90.0 0.6 Personal Lines 101.8
93.5 (8.3 ) 95.4 92.0 (3.4 ) P&C underlying combined ratio
93.1 90.5
(2.6 ) 91.8
91.0 (0.8 ) Group Benefits net
income margin 6.9 % 4.2 % 2.7 6.3 % 5.4 % 0.9 Group Benefits core
earnings margin* 6.5 %
4.6 % 1.9 5.7 %
5.6 % 0.1
Select
financial measures: Common shares outstanding and dilutive
potential common shares 381.1 410.7 (7 )% Book value per diluted
share $ 44.35 $ 42.96 3 % Book value per diluted share (ex. AOCI) $
45.24 $ 43.76 3 % ROE - Net income3 5.2 % 9.3 % (4.1
) ROE - Net income, excluding Talcott Resolution3 6.8 %
12.0 % (5.2 ) ROE - Core earnings*3 7.6 % 9.2 % (1.6 ) ROE -
Core earnings, excluding Talcott Resolution*3
8.9 % 10.9 % (2.0 )
[1] The Hartford defines increases or decreases greater than or
equal to 200%, or changes from a net gain to a net loss position,
or vice versa, as "NM" or not meaningful[2] Includes dilutive
potential common shares[3] Calculated based on last 12-months net
income and core earnings; for ROE - Net Income, the denominator is
stockholders’ equity including AOCI; for ROE - Core Earnings, the
denominator is stockholders’ equity excluding AOCI
2017 KEY BUSINESS METRICS OUTLOOK
The Hartford also announced its outlook for several 2017 key
business metrics. The company does not provide an outlook for net
income or core earnings. These key business metrics are management
estimates based on business, competitive, capital market,
catastrophe and other assumptions. The metrics, which are presented
below, are subject to change for many reasons, including unusual or
unpredictable items such as weather or catastrophe losses, change
in loss frequency and severity, regulatory changes or assessments,
PYD, capital markets or investment results and other factors that
are not within management's control. The company has frequently
experienced unusual or unpredictable changes in revenues, expenses
or other items that were not anticipated in prior outlooks.
($ in millions)
2016
Actual 2017 Outlook Key Business Metrics
Commercial Lines combined ratio1 92.8 92.5 - 94.5 Personal Lines
combined ratio1 104.8 99.0 - 101.0 P&C current accident year
catastrophe loss ratio1 3.9 3.5 P&C net investment income,
before tax, excluding limited partnerships and other alternative
investments (LPs)2 $1,078 $975 - $1,025
[1] 2017 metrics include outlook for P&C catastrophe loss
ratio of 3.5, reflecting an outlook of 2.3 points in Commercial
Lines and 5.8 points in Personal Lines; catastrophes vary by
quarter due to the seasonality of weather trends[2] A
reconciliation of this metric to the GAAP measure P&C net
investment income, before tax, is not calculable on a
forward-looking basis because net investment income on LPs has
historically been volatile due to capital markets, real estate
sales, and other factors, and therefore it is not possible to
provide a reliable forecast of net investment income on LPs
FOURTH QUARTER 2016 SEGMENT
RESULTS
($ in millions)
Three Months Ended
Net Income
Core Earnings
Dec 312016
Dec 312015
Change
Dec 312016
Dec 312015
Change P&C segments: Commercial Lines $267
$293 (9)% $277 $289 (4)% Personal Lines (18) 51 NM (17) 51 NM
P&C Other Operations (423)
19 NM 15 18
(17)% Property & Casualty (174)
363 NM 275 358
(23)% Group Benefits 63
37 70% 59 40
48% Mutual Funds 17
20 (15)% 17 20
(15)%
Sub-total
(94) 420 NM
351 418
(16)% Talcott Resolution 45
28 61% 111 83
34% Corporate (32)
(27) (19)% (47) (56)
16%
Total $(81) $421 NM
$415 $445 (7)%
The table below summarizes certain fourth quarter 2016 and
fourth quarter 2015 items of interest that impact both net income
and core earnings. The unfavorable PYD in fourth quarter 2016
includes development on commercial and personal automobile
liability reserves, principally from the 2015 accident year, which
the company disclosed in early December 2016.
($ in millions except per share data)
Three Months Ended
Dec 312016
Dec 312015
Change PYD, after-tax, favorable (unfavorable)
$(31) $8 NM Net
investment income on LPs, after-tax $48
$8 $40 Current accident year catastrophe
(losses), after-tax $(40) $(22)
$(18)
Total $(23)
$(6) $(17) Total per
diluted share $(0.06)
$(0.01) $(0.05)
COMMERCIAL LINES BUSINESS
METRICS
($ in millions)
Three Months
Ended
Dec 312016
Dec 312015
Change Combined ratio
91.3 88.1 (3.2) Small Commercial
90.5 85.3 (5.2) Middle
Market 92.0 93.3
1.3 Specialty Commercial 88.8
83.9 (4.9) Impact of catastrophes and PYD on combined
ratio 3.1 (0.2) NM
Underlying combined ratio 88.2
88.2 — Small Commercial 86.0
85.1 (0.9) Middle Market
88.9 89.0 0.1 Specialty
Commercial 94.8 98.1
3.3 Written premiums $1,664
$1,609 3% Standard Commercial renewal written
pricing increases 2% 2%
—
Commercial Lines combined ratio in fourth quarter 2016 was 91.3,
a deterioration of 3.2 points from fourth quarter 2015.
Approximately 2.2 points of the deterioration was due to net
unfavorable PYD in fourth quarter 2016 compared with favorable PYD
in fourth quarter 2015 and 1.1 points related to higher catastrophe
losses primarily comprised of losses from Hurricane Matthew as well
as other wind and hail events. The net unfavorable PYD in fourth
quarter 2016 primarily resulted from elevated severity in the Small
Commercial automobile and package business lines. This was
partially offset by favorable frequency in workers’ compensation
across Commercial Lines related to recent accident years.
The underlying combined ratio in fourth quarter 2016 was 88.2,
flat compared with fourth quarter 2015, as favorable frequency in
workers' compensation was offset by higher frequency and severity
in commercial automobile, a portion of which relates to the first
three quarters of 2016.
Commercial Lines written premiums were $1,664 million in fourth
quarter 2016, an increase of 3% from fourth quarter 2015 reflecting
7% growth in Small Commercial, which includes the addition of Maxum
Specialty, and 1% growth in Middle Market, partially offset by a 2%
decline in Specialty Commercial. Fourth quarter 2016 Standard
Commercial renewal written price increases averaged 2%, reflecting
a 4% increase in Small Commercial and flat pricing in Middle
Market, exclusive of specialty programs and livestock lines of
business.
PERSONAL LINES BUSINESS METRICS
($ in millions)
Three Months
Ended
Dec 312016
Dec 312015
Change Combined ratio
106.7 95.3 (11.4) Automobile
118.1 103.5 (14.6)
Homeowners 80.9 76.9
(4.0) Impact of catastrophes and PYD on combined ratio
5.0 1.8 (3.2)
Underlying combined ratio 101.8
93.5 (8.3) Automobile 113.6
102.9 (10.7) Homeowners
74.7 72.4 (2.3) Written premiums
$892 $936 (5)%
Renewal written pricing increases
Automobile
9% 6% 3.0 Homeowners
10% 8% 2.0
Personal Lines fourth quarter 2016 combined ratio was 106.7, an
11.4 point deterioration compared with fourth quarter 2015 largely
due to automobile. Unfavorable PYD was 2.1 points primarily for
personal automobile liability losses, compared with a favorable 0.3
point in fourth quarter 2015. Catastrophe losses also increased,
comprising 2.9 points of the fourth quarter 2016 combined ratio
compared with 2.1 points in fourth quarter 2015. The impact of
these items was partially offset by a 3.5 point improvement in the
fourth quarter 2016 expense ratio compared with fourth quarter 2015
largely due to lower direct marketing spending.
The underlying combined ratio in fourth quarter 2016 was 101.8,
an 8.3 point deterioration from fourth quarter 2015 primarily due
to increased automobile bodily injury liability severity and higher
fire losses in homeowners, partially offset by lower expenses. A
portion of the deterioration in fourth quarter 2016 automobile
results related to the first three accident quarters of 2016, as
automobile liability severity trends that emerged in fourth quarter
2016 were higher than the trends observed in the first nine months
of 2016.
Personal Lines written premiums were $892 million, a decline of
5% from fourth quarter 2015 reflecting lower new business and lower
policy count retention as a result of profitability improvement
initiatives over the past year, partially offset by renewal written
price increases. Fourth quarter 2016 personal automobile new
business premium declined 58% and homeowners new business premium
declined 52% from fourth quarter 2015. Policy count retention was
83% for both automobile and homeowners, down from 84% and 85%,
respectively, in fourth quarter 2015. Renewal written price
increases in fourth quarter 2016 averaged 9% in automobile, 2
points higher than third quarter 2016 and 3 points higher than
fourth quarter 2015, and 10% in homeowners, up 2 points from fourth
quarter 2015.
GROUP BENEFITS BUSINESS METRICS
($ in millions)
Three Months
Ended
Dec 312016
Dec 312015
Change Group life loss ratio
70.6 76.0 5.4 Group disability
loss ratio 84.0 82.9
(1.1) Total loss ratio 76.7
78.4 1.7 Expense ratio
25.2 26.0 0.8 Fully insured ongoing
premiums1 $788 $774
2%
[1] Fully insured ongoing premiums exclude buyout premiums and
premium equivalents
Group Benefits fourth quarter 2016 total loss ratio was 76.7%, a
1.7 point improvement from fourth quarter 2015 primarily due to a
5.4 point decline in the group life loss ratio, largely resulting
from favorable changes in reserve estimates. The group disability
loss ratio increased 1.1 points due to higher severity, partially
offset by favorable recoveries, increased pricing and slightly
improved incidence. The expense ratio improved 0.8 point from
fourth quarter 2015 reflecting higher premiums and lower operating
expenses.
Fully insured ongoing premiums in fourth quarter 2016 were $788
million, up 2% from fourth quarter 2015 due to strong persistency
and increased pricing. Fully insured ongoing sales were $43 million
in fourth quarter 2016, down 10% compared with fourth quarter
2015.
TALCOTT RESOLUTION
($ in millions)
Three Months
Ended
Dec 312016
Dec 312015
Change Net income $45 $28 61% Less: Unlock
benefit (charge), before tax (20) 53 NM Less: Net realized capital
losses after DAC, excluded from core earnings, before tax (9) (135)
93% Less: Income tax benefit (expense) on items not included in
core earnings (37) 27
NM Core earnings $111 $83
34% Variable annuity contract count (in thousands)
544 603 (10)%
Fixed annuity and other contract count (in thousands)
121 128 (5)%
Talcott Resolution fourth quarter 2016 net income was $45
million, a 61% increase from $28 million in fourth quarter 2015
primarily due to lower net realized capital losses and higher
investment income from LPs, partially offset by an unlock charge
compared with an unlock benefit in fourth quarter 2015.
Fourth quarter 2016 core earnings were $111 million, a 34%
increase from $83 million in fourth quarter 2015 principally due to
higher investment income from LPs and a tax benefit from the
conclusion of a prior year federal tax audit. Talcott Resolution
net investment income from LPs totaled $18 million, after-tax, in
fourth quarter 2016 compared with $1 million, after-tax, in fourth
quarter 2015.
Variable annuity and fixed annuity contract counts as of Dec.
31, 2016 both declined 2% from Sept. 30, 2016 and declined 10% and
5%, respectively, from Dec. 31, 2015. The decline in contract
counts reflects normal surrender activity.
MUTUAL FUNDS
Mutual Funds net income and core earnings in fourth quarter 2016
were $17 million, down 15% from $20 million in fourth quarter 2015
due to costs related to the acquisition of Lattice Strategies and
the adoption of 10 Schroders mutual funds.
Average total Mutual Funds segment assets under management (AUM)
increased to $95.9 billion in fourth quarter 2016 compared with
$93.0 billion in fourth quarter 2015. The increase was primarily
due to market appreciation during 2016 and the addition of
approximately $3.0 billion from the Schroders funds adoption in
October 2016, partially offset by the continued runoff of Talcott
Resolution AUM.
CORPORATE
Corporate net loss in fourth quarter 2016 was $32 million
compared with a net loss of $27 million in fourth quarter 2015. The
$5 million increase in net loss was primarily due to a $34 million
tax benefit in fourth quarter 2015 from the reduction of the
deferred tax valuation allowance on capital loss carryovers,
largely offset by lower interest and other expenses and a net
benefit of $17 million in fourth quarter 2016 from investments in
solar energy partnerships.
Corporate core losses were $47 million in fourth quarter 2016, a
$9 million improvement from core losses of $56 million in fourth
quarter 2015 due to lower interest and other expenses as well as
higher net investment income.
INVESTMENTS
($ in millions before tax)
Three
Months Ended
Dec 312016
Dec 312015
Change Total investments
$70,637 $72,918 (3)% Net investment
income $758 $695
9% Net investment income from LPs $73
$12 NM Net impairment losses, including
mortgage loan valuation allowances $12
$42 71% Annualized investment yield1
4.4% 3.9% 0.5 Annualized
investment yield from LPs 12.1%
1.5% 10.6 Annualized investment yield, excluding LPs
4.2% 4.1% 0.1
[1] Yields, before tax, calculated using annualized net
investment income divided by the monthly average invested assets at
cost, amortized cost, or adjusted carrying value, as applicable,
excluding repurchase agreement and securities lending collateral,
if any, and derivatives book value
Total investments decreased 3% to $70.6 billion at Dec. 31, 2016
compared with $72.9 billion at Dec. 31, 2015. The decrease in total
investments primarily reflects the continued runoff of Talcott
Resolution and the third quarter 2016 transfer to assets held for
sale of $0.6 billion of investments related to the pending sale of
the company's U.K. P&C run-off subsidiaries.
Fourth quarter 2016 net investment income totaled $758 million,
before tax, a 9% increase from fourth quarter 2015 principally due
to higher investment income from LPs. Investment income from LPs
totaled $73 million, before tax, in fourth quarter 2016 compared
with $12 million, before tax, in fourth quarter 2015. The increase
was largely due to real estate sales and strong private equity
returns. Excluding the impact of LPs, net investment income was
essentially flat compared with fourth quarter 2015.
Fourth quarter 2016 annualized investment yield increased to
4.4%, before tax, from 3.9%, before tax, in fourth quarter 2015
primarily due to higher investment income from LPs. Fourth quarter
2016 annualized investment returns from LPs was 12.1%, before tax,
compared with 1.5%, before tax, in fourth quarter 2015. Fourth
quarter 2016 annualized investment yield, excluding LPs, was 4.2%,
before tax, slightly higher than 4.1% in fourth quarter 2015 due to
the higher pre-payment penalties on commercial mortgage whole loans
and make-whole payments compared with fourth quarter 2015.
The credit performance of the investment portfolio remained
strong in fourth quarter 2016. Net impairment losses including
mortgage loan valuation allowances totaling $12 million, before
tax, compared with $42 million, before tax, in fourth quarter
2015.
CONFERENCE CALL
The Hartford will discuss its fourth quarter 2016 financial
results and outlook for several 2017 key business metrics in a
webcast at 9 a.m. EST on Friday, Feb. 3, 2017. The webcast can be
accessed live or as a replay through the investor relations section
of The Hartford's website at https://ir.thehartford.com.
More detailed financial information can be found in The
Hartford's Investor Financial Supplement for Dec. 31, 2016, and the
Fourth Quarter 2016 Financial Results Presentation, both of which
are available at https://ir.thehartford.com.
ABOUT THE HARTFORD
The Hartford is a leader in property and casualty insurance,
group benefits and mutual funds. With more than 200 years of
expertise, The Hartford is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at https://www.thehartford.com. Follow us on Twitter
at www.twitter.com/TheHartford_PR.
The Hartford Financial Services Group, Inc., (NYSE: HIG)
operates through its subsidiaries under the brand name, The
Hartford, and is headquartered in Hartford, Conn. For additional
details, please read The Hartford’s legal notice at https://www.thehartford.com/legal-notice.
HIG-F
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important information regarding The Hartford is routinely
accessible through and posted on our website at https://ir.thehartford.com. In addition, you may
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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS Three Months Ended
December 31, 2016 ($ in millions)
CommercialLines
PersonalLines
P&COther Ops
GroupBenefits
MutualFunds
TalcottResolution
Corporate
Consolidated Earned premiums $ 1,701
$ 967 $ — $ 788
$ — $ 23 $ —
$ 3,479 Fee income — — — 20 184 225 1 430 Net investment
income 243 36 31 95 — 345 8 758 Other revenues 19 — — — — — — 19
Net realized capital gains (losses) (18 )
(2 ) (26 ) 8
— (14 ) (97 )
(149 )
Total revenues 1,945
1,001 5 911 184 579 (88
) 4,537 Benefits, losses, and loss adjustment
expenses 999 816 8 620 — 345 — 2,788 Amortization of DAC 246 84 — 8
7 33 — 378 Insurance operating costs and other expenses 321 134 (3
) 196 150 113 3 914 Interest expense — — — — — — 82 82 Loss on
reinsurance transaction —
— 650 —
— — —
650
Total benefits and expenses
1,566 1,034 655 824 157
491 85 4,812 Income (loss) before income
taxes 379 (33 ) (650 )
87 27 88 (173 ) (275
) Income tax expense (benefit) 112
(15 ) (227 ) 24
10 43
(141 ) (194 )
Net income (loss)
267 (18 ) (423 ) 63
17 45 (32 ) (81 ) Less:
Unlock charge, before tax — — — — — (20 ) — (20 ) Less: Net
realized capital gains (losses) after DAC, excluded from core
earnings, before tax (17 ) (2 ) (26 ) 7 — (9 ) (99 ) (146 ) Less:
Loss on reinsurance transaction, before tax — — (650 ) — — — — (650
) Less: Income tax benefit (expense) 7
1 238 (3 )
— (37 ) 114
320
Core earnings (losses)
$ 277
$ (17 ) $ 15
$ 59
$ 17 $ 111
$ (47 )
$
415
THE HARTFORD FINANCIAL SERVICES GROUP,
INC. CONSOLIDATING INCOME STATEMENTS Three Months
Ended December 31, 2015 ($ in millions)
CommercialLines
PersonalLines
P&COther Ops
GroupBenefits
MutualFunds
TalcottResolution
Corporate
Consolidated Earned premiums $ 1,658
$ 978 $ 31 $ 774
$ — $ 19 $ —
$ 3,460 Fee income — — — 17 178 266 2 463 Net investment
income 206 30 34 88 1 331 5 695 Other revenues 21 — — — — — — 21
Net realized capital gains (losses) 11
— (1 ) (6 )
— (128 ) (2 )
(126 )
Total revenues 1,896
1,008 64 873 179 488 5
4,513 Benefits, losses, and loss adjustment expenses 920 680
39 620 — 431 — 2,690 Amortization of DAC 241 89 — 7 6 (53 ) — 290
Insurance operating costs and other expenses 316 163 8 199 141 106
6 939 Interest expense — — — — — — 86 86 Restructuring and other
costs — —
— — —
— 4
4
Total benefits and expenses 1,477 932
47 826 147 484 96 4,009
Income (loss) before income taxes 419 76
17 47 32 4 (91 )
504 Income tax expense (benefit) 126
25 (2 ) 10
12 (24 )
(64 ) 83
Net income (loss)
293 51 19 37 20 28
(27 ) 421 Less: Unlock charge, before tax — —
— — — 53 — 53 Less: Net realized capital gains (losses) after DAC,
excluded from core earnings, before tax 6 1 (1 ) (5 ) — (135 ) (1 )
(135 ) Less: Restructuring and other costs, before tax — — — — — —
(4 ) (4 ) Less: Income tax benefit (expense)
(2 ) (1 ) 2 2
— 27
34 62
Core earnings
(losses) $ 289
$ 51 $ 18
$ 40
$ 20 $ 83
$ (56 )
$ 445 THE HARTFORD FINANCIAL
SERVICES GROUP, INC. CONSOLIDATING INCOME STATEMENTS ($
in millions)
Year Ended December 31, 2016
CommercialLines
PersonalLines
P&COther Ops
GroupBenefits
MutualFunds
TalcottResolution
Corporate
Consolidated Earned premiums $ 6,651
$ 3,898 $ — $ 3,148
$ — $ 114 $ —
$ 13,811 Fee income — — — 75 701 930 4 1,710 Net
investment income 917 135 127 366 1 1,384 31 2,961 Other revenues
86 — — — — — — 86 Net realized capital gains (losses)
13 2 (70 )
45 — (155 )
(103 ) (268 )
Total revenues
7,667 4,035 57 3,634 702
2,273 (68 ) 18,300 Benefits, losses,
and loss adjustment expenses 3,994 3,175 278 2,514 — 1,390 — 11,351
Amortization of DAC 973 348 — 31 24 147 — 1,523 Insurance operating
costs and other expenses 1,271 564 13 776 557 438 14 3,633 Interest
expense — — — — — — 339 339 Loss on reinsurance transaction
— — 650
— —
— — 650
Total benefits and expenses 6,238 4,087
941 3,321 581 1,975 353
17,496 Income (loss) before income taxes 1,429
(52 ) (884 ) 313 121
298 (421 ) 804 Income tax expense
(benefit) 422 (30 )
(355 ) 83 43
54 (309 )
(92 )
Net income (loss) 1,007 (22
) (529 ) 230 78 244
(112 ) 896 Less: Unlock charge, before tax — —
— — — (2 ) — (2 ) Less: Net realized capital gains (losses) after
DAC, excluded from core earnings, before tax 15 2 (70 ) 41 — (140 )
(104 ) (256 ) Less: Loss on reinsurance transaction, before tax — —
(650 ) — — — — (650 ) Less: Income tax benefit (expense)
(5 ) — 292
(15 ) — 3
194 469
Core
earnings (losses) $ 997
$ (24 )
$ (101 ) $ 204
$ 78
$ 383 $ (202
) $ 1,335
THE HARTFORD FINANCIAL SERVICES GROUP, INC. CONSOLIDATING
INCOME STATEMENTS ($ in millions)
Year Ended December 31,
2015
CommercialLines
PersonalLines
P&COther Ops
GroupBenefits
MutualFunds
TalcottResolution
Corporate
Consolidated Earned premiums $ 6,511
$ 3,873 $ 32 $ 3,069
$ — $ 92 $ —
$ 13,577 Fee income — — — 67 723 1,041 8 1,839 Net
investment income 910 128 133 371 1 1,470 17 3,030 Other revenues
87 — — — — — — 87 Net realized capital gains (losses)
(6 ) 4 3
(11 ) — (161 )
15 (156 )
Total revenues
7,502 4,005 168 3,496 724
2,442 40 18,377 Benefits, losses, and loss
adjustment expenses 3,886 2,768 243 2,427 — 1,451 — 10,775
Amortization of DAC 951 359 — 31 22 139 — 1,502 Insurance operating
costs and other expenses 1,260 609 25 788 568 469 33 3,752 Interest
expense — — — — — — 357 357 Loss on extinguishment of debt — — — —
— — 21 21 Net loss (gain) on reinsurance transactions — — — — — (28
) — (28 ) Restructuring and other costs —
— —
— — —
20 20
Total benefits
and expenses 6,097 3,736 268 3,246
590 2,031 431 16,399 Income (loss)
before income taxes 1,405 269 (100
) 250 134 411 (391 )
1,978 Income tax expense (benefit) 409
82 (47 ) 63
48 (17 )
(233 ) 305
Income (loss) from
continuing operations, after-tax 996 187
(53 ) 187 86 428 (158
) 1,673 Income from discontinued operations,
after-tax 7 —
— — —
2 —
9
Net income (loss) 1,003 187
(53 ) 187 86 430 (158
) 1,682 Less: Unlock benefit, before tax — — — — — 80
— 80 Less: Net realized capital gains (losses) after DAC, excluded
from core earnings, before tax (9 ) 4 3 (12 ) — (175 ) 14 (175 )
Less: Restructuring and other costs, before tax — — — — — — (20 )
(20 ) Less: Loss on extinguishment of debt, before tax — — — — — —
(21 ) (21 ) Less: Gain on reinsurance transaction, before tax — — —
— — 28 — 28 Less: Income tax benefit (expense) 2 (2 ) 1 4 — 23 103
131 Less: Income from discontinued operations, after-tax
7 — —
— —
2 — 9
Core earnings (losses) $
1,003 $ 185
$ (57 ) $
195 $ 86
$ 472 $
(234 ) $ 1,650
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
The Hartford uses non-GAAP financial measures in this press
release to assist investors in analyzing the company's operating
performance for the periods presented herein. Because The
Hartford's calculation of these measures may differ from similar
measures used by other companies, investors should be careful when
comparing The Hartford's non-GAAP financial measures to those of
other companies. Definitions and calculations of other financial
measures used in this press release can be found below and in The
Hartford's Investor Financial Supplement for fourth quarter 2016,
which is available on The Hartford's website, https://ir.thehartford.com.
Book value per diluted share excluding
accumulated other comprehensive income ("AOCI”): Book value
per diluted share excluding AOCI is a non-GAAP financial measure
based on a GAAP financial measure. It is calculated by dividing (a)
common stockholders' equity excluding AOCI, after-tax, by (b)
common shares outstanding and dilutive potential common shares. The
Hartford provides book value per diluted share excluding AOCI to
enable investors to analyze the company’s stockholders’ equity
excluding the effect of changes in the value of the company’s
investment portfolio and other assets due to interest rates,
currency and other factors. The Hartford believes book value per
diluted share excluding AOCI is useful to investors because it
eliminates the effect of items that can fluctuate significantly
from period to period, primarily based on changes in market value.
Book value per diluted share is the most directly comparable GAAP
measure. A reconciliation of book value per diluted share,
including AOCI to book value per diluted share, excluding AOCI is
set forth below.
As of
Dec 312016
Dec 312015
Change Book value per diluted share, including
AOCI $44.35 $42.96 3% Less: Per diluted
share impact of AOCI $(0.89)
$(0.80) (11)%
Book value per diluted share,
excluding AOCI $45.24
$43.76 3%
Core Earnings: The Hartford uses
the non-GAAP measure core earnings as an important measure of the
company’s operating performance. The Hartford believes that the
measure core earnings provides investors with a valuable measure of
the performance of the company’s ongoing businesses because it
reveals trends in our insurance and financial services businesses
that may be obscured by including the net effect of certain
realized capital gains and losses, certain restructuring charges,
pension settlements, loss on extinguishment of debt, reinsurance
gains and losses on business disposition transactions, income tax
benefit from reduction in valuation allowance, discontinued
operations, and the impact of Unlocks to deferred policy
acquisition costs ("DAC"), sales inducement assets, unearned
revenue reserves and death and other insurance benefit reserve
balances. Some realized capital gains and losses are primarily
driven by investment decisions and external economic developments,
the nature and timing of which are unrelated to the insurance and
underwriting aspects of our business.
Accordingly, core earnings excludes the effect of all realized
gains and losses (net of tax and the effects of DAC) that tend to
be highly variable from period to period based on capital market
conditions. The Hartford believes, however, that some realized
capital gains and losses are integrally related to our insurance
operations, so core earnings includes net realized gains and losses
such as net periodic settlements on credit derivatives and net
periodic settlements on the Japan fixed annuity cross-currency
swap. These net realized gains and losses are directly related to
an offsetting item included in the income statement such as net
investment income. Net income (loss) is the most directly
comparable U.S. GAAP measure. Core earnings should not be
considered as a substitute for net income (loss) and does not
reflect the overall profitability of the company’s business.
Therefore, The Hartford believes that it is useful for investors to
evaluate both net income (loss) and core earnings when reviewing
the company’s performance.
A reconciliation of net income (loss) to core earnings for the
quarterly periods ended Dec. 31, 2016 and 2015, is included in this
press release. A reconciliation of net income (loss) to core
earnings for individual reporting segments can be found in this
press release under the heading "The Hartford Financial Services
Group, Inc. Consolidating Income Statements" and in The Hartford's
Investor Financial Supplement for the quarter ended Dec. 31,
2016.
Core earnings margin: The Hartford
uses the non-GAAP measure core earnings margin to evaluate, and
believes it is an important measure of, the Group Benefits
segment's operating performance. Core earnings margin is calculated
by dividing core earnings by revenues, excluding buyouts and
realized gains (losses). Net income margin is the most directly
comparable U.S. GAAP measure. The company believes that core
earnings margin provides investors with a valuable measure of the
performance of Group Benefits because it reveals trends in the
business that may be obscured by the effect of buyouts and realized
gains (losses). Core earnings margin should not be considered as a
substitute for net income margin and does not reflect the overall
profitability of Group Benefits. Therefore, the company believes it
is important for investors to evaluate both core earnings margin
and net income margin when reviewing performance. A reconciliation
of net income margin to core earnings margin for the quarterly
periods ended Dec. 31, 2016 and 2015, is set forth below.
Three Months Ended
Year Ended Margin
Dec 312016
Dec 312015
Change
Dec 312016
Dec 312015
Change Net income margin 6.9%
4.2% 2.7 6.3% 5.4% 0.9
Less: Effect of net capital realized gains, net of tax on after-tax
margin 0.4% (0.4)%
NM
0.6% (0.2)% NM
Core
earnings margin 6.5%
4.6% 1.9 5.7%
5.6% 0.1
Core earnings per diluted share:
Core earnings per diluted share is calculated based on the non-GAAP
financial measure core earnings. It is calculated by dividing (a)
core earnings, by (b) diluted common shares outstanding. The
Hartford believes that the measure core earnings per diluted share
provides investors with a valuable measure of the company's
operating performance for the same reasons applicable to its
underlying measure, core earnings. Net income (loss) per diluted
common share is the most directly comparable GAAP measure. Core
earnings per diluted share should not be considered as a substitute
for net income (loss) per diluted share and does not reflect the
overall profitability of the company's business.
Therefore, The Hartford believes that it is useful for investors
to evaluate both net income (loss) per diluted share and core
earnings per diluted share when reviewing the company's
performance. A reconciliation of net income (loss) per diluted
common share to core earnings per diluted share for the quarterly
periods ended Dec. 31, 2016 and 2015 is provided in the table
below.
Three Months Ended
Year Ended
Dec 312016
Dec 312015
Change
Dec 312016
Dec 312015
Change PER SHARE DATA
Diluted earnings (losses)
per common share:
Net income (loss) per share $(0.22)
$1.01 NM $2.27 $3.96 (43)% Less:
Unlock benefit (charge), before tax (0.05) 0.13 NM (0.01) 0.19 NM
Less: Net realized capital losses after DAC, excluded from core
earnings, before tax (0.38) (0.32) (19)% (0.65) (0.41) (59)% Less:
Restructuring and other costs, before tax — (0.01) 100% — (0.05)
(100)% Less: Loss on extinguishment of debt, before tax — — — —
(0.05) (100)% Less: (Loss) gain on reinsurance transactions, before
tax (1.69) — (100)% (1.65) 0.07 NM Less: Income tax benefit on
items excluded from core earnings 0.83 0.14 NM 1.20 0.30 NM Less:
Income from discontinued operations, after-tax — — — — 0.03 (100)%
Less: Use of weighted average shares in denominator*
(0.01) — (100)% —
— —
Core earnings per share
$1.08 $1.07
1% $3.38
$3.88 (13)%
* In the three months ended December 31, 2016, net loss per
share uses weighted average basic shares outstanding whereas core
earnings per share uses weighted average diluted share
outstanding.
Return on Equity - Core Earnings:
The company provides different measures of the return on
stockholders' equity (“ROE”). ROE - Net income is calculated by
dividing (a) net income for the prior four fiscal quarters by
(b) average common stockholders' equity, including AOCI. ROE -
Core earnings is calculated based on non-GAAP financial measures.
ROE - Core earnings is calculated by dividing (a) core
earnings for the prior four fiscal quarters by (b) average
common stockholders' equity, excluding AOCI. ROE - Net income is
the most directly comparable U.S. GAAP measure. The company
excludes AOCI in the calculation of ROE - Core earnings to provide
investors with a measure of how effectively the company is
investing the portion of the company's net worth that is primarily
attributable to the company's business operations. The company
provides to investors return-on-equity measures based on its
non-GAAP core earnings financial measures for the reasons set forth
in the related discussion above.
A reconciliation of Consolidated ROE - Net income to
Consolidated ROE - Core earnings is set forth below.
Last Twelve Months Ended
Dec 31 2016 Dec 31 2015
ROE - Net income (loss) 5.2%
9.3% Less: Unlock benefit (charge), before tax — 0.4 Less:
Net realized capital gains (losses) after DAC, excluded from core
earnings, before tax (1.5) (1.0) Less: Restructuring and other
costs, before tax — (0.1) Less: Loss on extinguishment of debt,
before tax — (0.1) Less: (Loss) gain on reinsurance transactions,
before tax (3.8) 0.2 Less: Pension settlement, before tax — — Less:
Income tax benefit on items not included in core earnings 2.7 0.7
Less: Income from discontinued operations, after-tax — — Less:
Impact of AOCI, excluded from Core ROE 0.2
—
ROE - Core earnings (losses)
7.6% 9.2%
A reconciliation of Consolidated ROE - Net income, excluding
Talcott Resolution to Consolidated ROE - Core earnings, excluding
Talcott Resolution is set forth below.
Last Twelve Months Ended
Dec 31 2016 Dec 31 2015
ROE - Net income (excluding Talcott Resolution) 6.8%
12.0% Less: Net realized capital gains
(losses) after DAC, excluded from core earnings, before tax (1.1) —
Less: Restructuring and other costs, before tax — (0.2) Less: Loss
on extinguishment of debt, before tax — (0.2) Less: (Loss) gain on
reinsurance transaction, before tax (6.0) — Less: Pension
settlement, before tax — — Less: Income tax benefit on items not
included in core earnings 4.3 1.0 Less: Income from discontinued
operations, after-tax — 0.1 Less: Impact of AOCI, excluded from
Core ROE 0.7 0.4
ROE - Core
earnings (excluding Talcott Resolution)
8.9% 10.9%
Underlying combined ratio:
Represents the combined ratio before catastrophes and prior
accident year development (PYD) and is a non-GAAP financial
measure. Combined ratio is the most directly comparable GAAP
measure. The combined ratio is the sum of the loss and loss
adjustment expense ratio (also known as a loss ratio), the expense
ratio and the policyholder dividend ratio. This ratio measures the
cost of losses and expenses for every $100 of earned premiums. A
combined ratio below 100 demonstrates a positive underwriting
result. A combined ratio above 100 indicates a negative
underwriting result. The underlying combined ratio represents the
combined ratio for the current accident year, excluding the impact
of current accident year catastrophes. The company believes this
ratio is an important measure of the trend in profitability since
it removes the impact of volatile and unpredictable catastrophe
losses and prior accident year loss and loss adjustment expense
reserve. A reconciliation of the combined ratio to the underlying
combined ratio for individual reporting segments can be found in
this press release under the headings "Commercial Lines Business
Metrics" and "Personal Lines Business Metrics."
Underwriting gain (loss): The
Hartford's management evaluates profitability of the Commercial and
Personal Lines segments primarily on the basis of underwriting gain
or loss. Underwriting gain (loss) is a before tax measure that
represents earned premiums less incurred losses, loss adjustment
expenses and underwriting expenses. Net income (loss) is the most
directly comparable GAAP measure. Underwriting gain (loss) is
influenced significantly by earned premium growth and the adequacy
of The Hartford's pricing. Underwriting profitability over time is
also greatly influenced by The Hartford's underwriting discipline,
as management strives to manage exposure to loss through favorable
risk selection and diversification, effective management of claims,
use of reinsurance and its ability to manage its expenses. The
Hartford believes that the measure underwriting gain (loss)
provides investors with a valuable measure of profitability, before
tax, derived from underwriting activities, which are managed
separately from the company's investing activities. A
reconciliation of underwriting results to net income for the
quarterly periods ended Dec. 31, 2016 and 2015, is set forth
below.
Three Months Ended
Year Ended
Dec 312016
Dec 312015
Dec 312016
Dec 312015
Commercial Lines Net income $267
$293 $1,007 $1,003 Add: Income tax expense 112 126 422 409 Less:
Other income (expense) 1 (2) (1) 2 Less: Net realized capital gains
(losses) (18) 11 13 (6) Less: Net investment income 243 206 917 910
Less: Net servicing income 5 6 22 20 Less: Income from discontinued
operations, after-tax — —
— 7
Underwriting gain $148
$198 $478 $479 Personal Lines
Net income (loss) $(18) $51 $(22) $187 Add: Income tax expense
(benefit) (15) 25 (30) 82 Less: Other income (expense) (2) (1) — 15
Less: Net realized capital gains (losses) (2) — 2 4 Less: Net
investment income 36 30 135 128 Less: Net servicing income
— 1 — 4
Underwriting gain (loss) $(65)
$46 $(189)
$118
SAFE HARBOR STATEMENT
Some of the statements in this release should be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as “anticipates,” “intends,” “plans,”
“seeks,” “believes,” “estimates,” “expects,” “projects” and similar
references to the future. Examples of forward-looking statements
include, but are not limited to, statements the company makes
regarding future results of operations. The Hartford cautions
investors that these forward-looking statements are not guarantees
of future performance, and actual results may differ materially.
Investors should consider the important risks and uncertainties
that may cause actual results to differ. These important risks and
uncertainties include the risks and uncertainties identified below,
as well as factors described in such forward-looking statements or
in The Hartford's 2015 Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other filings The Hartford makes with the
Securities and Exchange Commission.
Risks Relating to Economic, Market and
Political Conditions: challenges related to the company’s
current operating environment, including global political, economic
and market conditions, and the effect of financial market
conditions, economic downturns or other potentially adverse
macroeconomic developments on the attractiveness of our products,
the returns in our investment portfolios and the hedging costs
associated with our runoff annuity block; financial risk related to
the continued reinvestment of our investment portfolios and
performance of our hedge program for our runoff annuity block;
market risks associated with our business, including changes in
interest rates, inflation risk credit spreads, equity prices,
market volatility and implied volatility levels; the impact on our
investment portfolio if our investment portfolio is concentrated in
any particular segment of the economy;
Risks Relating to Estimates, Assumptions
and Valuations: risk associated with the use of analytical
models in making decisions in key areas such as underwriting,
pricing, capital allocation, hedging, reserving, investments and
catastrophe risk management; the potential for differing
interpretations of the methodologies, estimations and assumptions
that underlie the valuation of the company’s financial instruments
that could result in changes to investment valuations; the
subjective determinations that underlie the company’s evaluation of
other-than-temporary impairments on available-for-sale securities;
the potential for further acceleration of deferred policy
acquisition cost amortization; the potential for further
impairments of our goodwill or the potential for changes in
valuation allowances against deferred tax assets;
Financial Strength, Credit and
Counterparty Risks: the impact on our statutory capital of
various factors, including many that are outside the company’s
control, which can in turn affect our credit and financial strength
ratings, cost of capital, regulatory compliance and other aspects
of our business and results; risks to our business, financial
position, prospects and results associated with negative rating
actions or downgrades in the company’s financial strength and
credit ratings or negative rating actions or downgrades relating to
our investments; losses due to nonperformance or defaults by
others, including sourcing partners, derivative counterparties and
other third parties; the potential for losses due to our
reinsurers' unwillingness or inability to meet their obligations
under reinsurance contracts and the availability, pricing and
adequacy of reinsurance to protect us against losses;
Insurance Industry and Product-Related
Risks: the possibility of unfavorable loss development
including with respect to long-tailed exposures; the company's
ability to accurately estimate the ultimate reserves necessary for
asbestos and environmental claims; the possibility of a pandemic,
earthquake, or other natural or man-made disaster that may
adversely affect our businesses; weather and other natural physical
events, including the severity and frequency of storms, hail,
winter storms, hurricanes and tropical storms, as well as climate
change and its potential impact on weather patterns; the possible
occurrence of terrorist attacks and the company’s ability to
contain its exposure, as a result of, among other factors, the
inability to exclude coverage for terrorist attacks from workers'
compensation policies and limitations on reinsurance coverage from
the federal government under applicable laws; the uncertain effects
of emerging claim and coverage issues; actions by our competitors,
many of which are larger or have greater financial resources than
we do; technology changes, such as usage-based methods of
determining premiums, advancement in automotive safety features,
the development of autonomous vehicles, and platforms that
facilitate ride sharing, which may alter demand for the company's
products, impact the frequency or severity of losses, and/or impact
the way the company markets, distributes and underwrites its
products; the company's ability to market, distribute and provide
insurance products and investment advisory services through current
and future distribution channels and advisory firms; the company’s
ability to effectively price its property and casualty policies,
including its ability to obtain regulatory consents to pricing
actions or to non-renewal or withdrawal of certain product lines;
volatility in our statutory and United States ("U.S.") GAAP
earnings and potential material changes to our results resulting
from our adjustment of our risk management program to emphasize
protection of economic value;
Regulatory and Legal Risks: the
cost and other potential effects of increased regulatory and
legislative developments, including those that could adversely
impact the demand for the company’s products, operating costs and
required capital levels; unfavorable judicial or other legal
developments; regulatory limitations on the ability of the company
and certain of its subsidiaries to declare and pay dividends; the
impact of changes in federal or state tax laws; regulatory
requirements that could delay, deter or prevent a takeover attempt
that shareholders might consider in their best interests; the
impact of potential changes in accounting principles and related
financial reporting requirements;
Other Strategic and Operational
Risks: risks associated with the runoff of our Talcott
Resolution business; the risks, challenges and uncertainties
associated with our capital management plan, including as a result
of changes in our financial position and earnings, share price,
capital position, legal restrictions, other investment
opportunities, and other factors; the risks, challenges and
uncertainties associated with our expense reduction initiatives and
other actions, which may include acquisitions, divestitures or
restructurings; the company’s ability to maintain the availability
of its systems and safeguard the security of its data in the event
of a disaster, cyber or other information security incident; the
potential for difficulties arising from outsourcing and similar
third-party relationships; and the company’s ability to protect its
intellectual property and defend against claims of
infringement.
Any forward-looking statement made by the company in this
release speaks only as of the date of this release. Factors or
events that could cause the company's actual results to differ may
emerge from time to time, and it is not possible for the company to
predict all of them. The company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170202006310/en/
The HartfordMedia ContactsMichelle Loxton,
860-547-7413michelle.loxton@thehartford.comorMatthew Sturdevant,
860-547-8664matthew.sturdevant@thehartford.comorInvestor
ContactsSabra Purtill, CFA,
860-547-8691sabra.purtill@thehartford.comorSean Rourke,
860-547-5688sean.rourke@thehartford.com
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