Hartford profit off on disaster, asbestos charges

NEW YORK: Insurer Hartford Financial Services Group Inc posted a smaller second-quarter profit on Wednesday after suffering large catastrophe losses and taking a charge to increase asbestos reserves.

The Hartford, one of three insurers to take a government bailout during the financial crisis, also said it would start a $500 million share buyback.

The company warned last month that its results would be hurt by those charges. The disaster losses were no surprise, given that other insurers had the same problem after devastating tornadoes struck the United States in April and May, but analysts were taken aback by the asbestos costs.

The Hartford reported a net profit of $24 million, or 3 cents per share, compared with a year-earlier profit of $76 million, or 14 cents per share.

Copyright Reuters, 2011