Hartford Financial Incurs 3-Qtr 2012 Loss Instead of a Profit Over Accounting Error

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Hartford Financial Services Group Inc. (HIG) restated its results for 3rd quarter last year that resulted in a loss instead of a gain following an accounting error about its life insurance sale.

In the filing it filed with the U.S. Securities and Exchange Commission, Hartford wanted to correct its preliminary calculation of the gain or loss relevant to its Individual Life business deal.

Late in 2012, Hartford signed a deal for the sale of its individual life insurance business to Prudential Financial Inc. for $615 million in cash. The deal allowed Hartford to free up almost $1 billion in capital to fund the said business.

It showed that the accounting error was incurred internally, a spokeswoman to Hartford disclosed.

The correction left Hartford reporting a loss of $38 million and $22.4 billion in shareholder equity for full-year 2012.

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