Hartford’s Q1 Core Earnings Drop On Investment Income Decline, Lower Underwriting Gains
Hartford Financial (NYSE:HIG) announced weak first quarter 2016 results last week, with core earnings decreasing 15% year-over-year (y-o-y) to $385 million on the back of a 14% decline in investment income. This decline was attributed to lower income from real estate partnerships and other alternative investments (such as hedge funds). A robust 123% y-o-y increase in underwriting gains in Commercial lines was offset by a 99% drop in underwriting gains in the Personal Lines business. Despite the 15% decline in core earnings, core earnings per share (EPS) dropped by about 9% y-o-y to 95 cents owing to lower outstanding common shares through the quarter.
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