Hartford Financial Services Group Inc. (HIG:US), the insurer that counts John Paulson as its largest investor, said catastrophes cost as much as $300 million last quarter as hail struck Texas and windstorms hit states including Maryland and Virginia.
The cost was at least $280 million, according to a statement today from Hartford, which is based in the Connecticut city of the same name. Second-quarter results will also include a cost of at least $45 million after the company found reserves had been inadequate as part of its annual review of asbestos and environmental lines.
“The United States endured a highly active month, with multiple natural disaster perils occurring from coast to coast,” insurance broker Aon Plc said in a report last week.
Hartford Chief Executive Officer Liam McGee is counting on profit from property and casualty policies as the insurer limits life insurance operations to narrow its focus. Paulson has said the life business pressures the company’s stock price.
The insurer dropped as much as 3.3 percent in extended trading. Hartford has gained about 1.9 percent this year on the New York Stock Exchange.
To contact the reporter on this story: Zachary Tracer in New York at email@example.com; Steven Norton in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Kraut at email@example.com