Hartford Financial Services has reported much better than expected third-quarter earnings despite heavy outflows from its variable annuities.
The Connecticut insurer's net income rose 9.1%, to $539 million, from a year earlier, it announced Thursday. That was $1.76 per share, and analysts' projections averaged by Thomson First Call were for $1.52. Operating profit, which excludes net realized investment gains and losses and other nonrecurring items, grew 20%, to $560 million.
Despite the good profit news, the company said it had $348 million of outflows from its variable annuity business, up from $59 million in the second quarter, as competitors gathered share.
In August, Hartford reported disappointing second-quarter variable annuity sales, and chief executive officer Ramani Ayer told analysts in a conference call that there would be more of the same in the third quarter because of increased competition and regulatory scrutiny.
