Poor investment returns, tough trend in autos hit Hartford results

• Q1 core earnings of $385M down 15% Y/Y, with EPS of $0.95 down just 9% from $1.05 thanks to buybacks which reduced the float by 6%.
• At issue was a decrease in net investment income and disappointing Personal Lines results - while homeowners improved, auto loss trends "continued to be challenging."
• Commercial lines income of $249M up 6% Y/Y. Combined ratio before catastrophes of 89.6 improves 280 basis points. Net investment income of $209M down 19%.
• Personal Lines income of $23M down 69%. Combined ratio before catastrophes of 89.7% improves 20 basis points. Auto combined ratio of 96.2 deteriorates by 160 bps. Homeowners of 75.1 improves 460 bps.
• Group Benefits income of $48M down 8% Y/Y. Net investment income of $88M down 9%.
• Overall net investment income of $696M down 14% Y/Y. Company notes lower income from real estate partnerships and losses on hedge funds. Annualized investment yield of 4% down 50 basis points. Total investments of $73.9B down 3%.
• Book value per share (excl. AOCI) of $44.27 up 1% Q/Q.
• Conference call tomorrow at 9 ET
• Previously: Hartford Financial misses by $0.06, misses on revenue (April 28)
• HIG flat after hours