Hartford Restates to Show $38 Million Loss for 2012
Hartford Financial Services Group Inc. (HIG), the insurer selling life units to focus on property- casualty coverage, said a third-quarter restatement resulted in a $38 million net loss for 2012 instead of previously reported 2012 net income of $350 million.
Shareholders’ equity was $22.4 billion instead of $22.8 billion, Hartford said today in statement. The company, named after the Connecticut city where it’s based, said it found a material weakness in its internal control reporting.
Hartford blamed an error in its preliminary calculation of the Individual Life unit’s sale transaction, which it now says included a $388 million loss. The company’s 2012 core earnings of $1.4 billion are unchanged, according to Hartford.
“We regret the error, but importantly the adjustments have no impact on our reported 2012 core earnings, statutory results or surplus, and announced capital management plan,” Chairman and Chief Executive Officer Liam E. McGee said in the statement.
The shares were little changed in extended trading in New York, dropping to $23.61 at 4:25 p.m. from the official close of $23.68.
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