Hartford Financial Services Group Inc. announced Thursday that it had agreed to settle reinsurance litigation with Equitas, a company set up to assume Lloyd's of London's liability exposures, and would take a pretax charge of $243 million, or $158 million after taxes, in the second quarter. The settlement's terms were not disclosed.
The Connecticut insurance giant also said it completed three comprehensive reserve reviews this quarter on business reported in the property and casualty other operations segment. The first review covered all reinsurance recoverables and the allowance for uncollectible reinsurance. The charge was based on this review as well as the agreement with Equitas, the company said.
An annual asbestos review required no addition to the company's asbestos reserves, Hartford said. And finally a review of reserves related to the assumed reinsurance business, which is in runoff, had no material impact on earnings.
