("Insurers Lincoln National, Hartford Swing To 2Q Losses,"
published at 4:37 p.m. EDT, misstated Hartford's stock price and
the percentage change of its operating profit. A corrected version
follows.)
DOW JONES NEWSWIRES
Lincoln National Corp. (LNC) and Hartford Financial Services
Group Inc. (HIG) each swung to a second-quarter loss, as Lincoln
recorded several charges and Hartford reported higher net realized
losses.
Still, Lincoln's shares were up 1.1% at $18.25 in after-hours
trading, while Hartford's stock jumped 6.2% to $15.89, as both
companies appeared to top Wall Street expectations. The shares for
both companies have dropped by at least two-thirds from
September.
Of the six life insurers cleared to participate in the Treasury
Department's Troubled Asset Relief Program in May, only Hartford
and Lincoln elected to access the funds. Hartford received $3.4
billion in funding, while Lincoln took only $950 million of the
government's approved $2.5 billion while raising about $1.2 billion
on its own.
The biggest life-insurers have raised more than $15 billion in
equity and debt in recent months amid the rising stock market, but
investors have express concern about investment losses and are
seeking clarity about earnings expectations.
Lincoln reported a loss of $161.4 million, or 62 cents a share,
compared with a year-earlier profit of $124.7 million, or 48 cents
a share. It was the company's third consecutive quarterly loss.
The latest results included a 65-cent-a-share charge related to
the sale of its U.K. arm and 84 cents in charges related to
investment losses and other items.
Lincoln's operating income, which excludes realized investment
gains and losses, fell to 81 cents a share from $1.24. The quarter
also included a restructuring charge of 7 cents a share.
Revenue dropped 22% to $1.95 billion.
Analysts polled by Thomson Reuters expected per-share operating
earnings of 83 cents on revenue of $2.52 billion. Analyst estimates
typically exclude unusual items.
Hartford reported a loss of $15 million, or 6 cents a share,
compared with a year-ago profit of $543 million, or $1.73 a share,
a year earlier. It was Hartford's fourth consecutive loss.
The latest results included a deferred-acquisition-costs unlock
gain of $360 million, or $1.11 a share.
Hartford had $649 million in net realized losses, compared with
a net loss of $156 million a year earlier.
The operating profit was $1.90 a share, down 14% from $2.22 a
share a year earlier. Analysts projected per-share earnings of
$1.16.
Assets under management fell 15% to $352.1 billion.
Looking ahead, Hartford again cut its 2009 operating earnings
target to break-even to 20 cents a share, from its already
drastically reduced view of 5 cents to 45 cents. Analysts were
looking for a loss of 21 cents.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
