Hartford Financial Sees '10 EPS $2.60-$2.90 After TARP Repayment
4-1-10 12:13 PM EDT http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/201004011213DOWJONESDJONLINE000560_univ.xml
Hartford Financial Services Group Inc. (HIG) said it estimates earnings per share for 2010 of $2.60 to $2.90 after taking into account the impact of repaying federal aid.
This estimate includes the impact of the dilution in the life and property insurer's shares as a result of its equity raising to repay the federal funds and other charges related to the repayment, said Christopher Swift, Hartford's chief financial officer, during a Webcast Thursday of the company's annual day.
The company said there was no change in guidance on core earnings, which it estimated in February at $3.70 to $4 a share for 2010.
Hartford also said it expects a total company return on equity of 11% by 2012.
The company said Wednesday it repaid $3.4 billion to the U.S. Treasury Department that Hartford received under the Troubled Asset Relief Program.
The insurer, which has a market capitalization of about $12.7 billion, funded the repayment, in part, with net proceeds of $2.58 billion from equity and debt offerings undertaken earlier this month.
The Treasury Department continues to hold warrants to purchase about 52 million shares of Hartford's stock at an initial exercise price of $9.79 a share. Hartford confirmed Wednesday it doesn't plan to repurchase the warrants.
That price is attractive for the government. Hartford's shares recently rose 2.6% to $29.17.
-By Aparajita Saha-Bubna, Dow Jones Newswires; 617-654-6729; aparajita.saha- firstname.lastname@example.org
(END) Dow Jones Newswires
Copyright (c) 2010 Dow Jones & Company, Inc.