By Stacia Smith
The Hartford has been around for over 200 years. They continue to adapt and make changes to stay a Fortune 500 company. As of current day, there are still many challenges The Hartford still has to face in order to drive their profit up. The Hartford is being affected by their current realignment. They are in the process of refocusing their priorities. They will be focusing on Property and Casualty, Group benefits and Mutual Fund Businesses, and place their Individual annuity business into run off. They are also going to be expanding their sales departments and finding other alternatives for their Life, Financial services and retirement plans. ...view middle of the document...
The Hartford currently restructuring their portfolio is what is reflecting in their current financial statements. CEO, Liam McGee, is focused on getting rid of debt and markets that aren’t benefiting the company as a whole.
The current opportunities for The Hartford are hard to determine until the PPACA has been determined. The PPACA is also a threat to The Hartford and the insurance industry as they will be facing more regulations and rules on what they can and cannot do. They are also going to have to make new formulas on how to charge for risks and areas until they are told they have to charge the same across the board.
I believe with the changes that are currently underway for The Hartford, they are only going to continue to get better and stronger. With the restructuring of markets that weren’t beneficial, and applying the extra funds to existing markets, they are going to start to show more improvements. With these changes underway, they may experience a drop in market share, but that should only be reflective of the change and not the outcome. I think The Hartford has a strong outreach and their support with their employees is only a small reflection of the support of the customers.
The Hartford’s current corporate business segments are Property and Casualty, Group Benefits, Mutual Funds, Individual Annuity, Individual Life, Woodbury Financial Services and Retirement plans. March 21, 2012 The Hartford did announce they would be placing their “Individual Annuity business into runoff and pursue sales or other strategic alternatives for the Individual Life, Woodbury Financial Services and Retirement Plans.” (10-Q, 3) and focusing on only the Property and Casualty, Group Benefits and Mutual Funds.
April 26, 2012, the company announced that it had entered into an agreement to sell its individual annuity new business capabilities to a third party. What that means, any new business policy is going to be re-written to the new company. The Hartford will no longer be affiliated with the Individual Annuity new business plans.
The Hartford is organized into four divisions: Commercial Markets, Consumer Markets, Wealth management and Runoff Operations and they conduct business in nine reporting segments as well as the corporate category. Those segments are Property and Casualty Commercial, Group Benefits, Consumer Markets, Individual Annuity, Individual Life, Retirement Plans, Mutual Funds, Life Other Operations, Property and Casualty Other operations and Corporate. The top two segments for The Hartford are Property and Casualty Commercial and Individual Annuity. With that said, Individual Annuity is still one of their strongest markets but it is also the market that has seen the largest decrease in revenue over the past 5 years. Last year alone, there was a loss of over $80 million.
The Property and Casualty Commercial segments is one that provides workers’ compensation, property, auto, marine, livestock, liability and...