Hartford Financial: Search For New CEO Making Progress
31 July 2009 - 12:00AM
Dow Jones News
Hartford Financial Services Group's (HIG) search for a new chief
executive is moving along, despite the restrictions placed on the
company because of its acceptance of government funding.
"The search committee has been directed by the board and they
have been very pleased with their progress," said Ramani Ayer,
Hartford chairman and chief executive, during the company's second
quarter earnings conference call Thursday. Ayer said nearly two
months ago he plans to retire by the end of the year.
The company started an external search to fill both the chairman
and chief executive positions, which will be separated.
Shares of Hartford surged 7.6% pre-market to $16.09 each, after
Hartford reported better-than-expected second-quarter results.
On Wednesday after the market close, 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. It was Hartford's fourth
consecutive quarterly 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.
Hartford, along with other companies that have accepted
government help, must adhere to "significant limitations" on pay
and bonuses for top executives, which the company listed as a new
risk factor in its quarterly report. It said the limitations could
make it difficult to attract and retain executive officers and
other key personnel.
During the call, Ayer said that the company had lost "a number"
of staff in its specialty commercial business, which saw premiums
drop 16% in the quarter. He said the company moved quickly to put
new management in place.
-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750 4141;
lavonne.kuykendall@dowjones.com