Lincoln National (NYSE:LNC)
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Life insurers Lincoln National Corp. (LNC) and Hartford Financial Services Group Inc. (HIG) both reported second-quarter losses on charges and investment losses.

Both companies pointed to some positive signs during the quarter. Hartford noted a 2% increase in written premiums for its personal lines insurance, which includes auto and homeowners insurance.

Lincoln said net flows into its individual annuity business more than doubled from the first quarter, to $1 billion, though they were still down from the year-ago quarter.

Lincoln's shares dropped 2.5% to $17.60 in after-hours trading, while Hartford's stock jumped 4.6% to $6.03, as Hartford appeared to top Wall Street expectations while Lincoln narrowly missed. The shares for both companies have dropped by at least two-thirds from September.

Of the six life insurers cleared to participate in the Treasury Department's Troubled Asset Relief Program in May, only Hartford and Lincoln elected to access the funds. Hartford received $3.4 billion in funding, while Lincoln took $950 million of the government's approved $2.5 billion while raising about $1.2 billion on its own.

Lincoln reported a loss of $161.4 million, or 62 cents a share, compared with a year-earlier profit of $124.7 million, or 48 cents a share. It was the company's third consecutive quarterly loss.

The latest results included a 65-cent-a-share charge related to the sale of its U.K. arm and 84 cents in charges related to investment losses and other items.

Lincoln's operating income, which excludes realized investment gains and losses, fell to 81 cents a share from $1.24. The quarter also included a restructuring charge of 7 cents a share.

Revenue dropped 22% to $1.95 billion.

Analysts polled by Thomson Reuters expected per-share operating earnings of 83 cents on revenue of $2.52 billion. Analyst estimates typically exclude unusual items.

Hartford reported a loss of $15 million, or 6 cents a share, compared with a year-ago profit of $543 million, or $1.73 a share, a year earlier. It was Hartford's fourth consecutive loss.

The latest results included a deferred acquisition costs unlock gain of $360 million, or $1.11 a share.

Hartford had $649 million in net realized losses, compared with a net loss of $156 million a year earlier. Included in that loss was a $300-million payment it made to investor Allianz SE (AZ) that was triggered by Hartford's acceptance of the TARP investment.

The executive-compensation restrictions that come along with TARP funds could complicate Hartford's search for a new chairman and chief executive to replace Ramani Ayer, who plans to retire by the end of the year.

The operating profit was $1.90 a share, down 22% from $2.22 a share a year earlier. Analysts projected per-share earnings of $1.16.

Assets under management fell 15% to $352.1 billion.

Hartford has said it will focus on its U.S. property/casualty and life-insurance operations and consider a sale of its institutional markets businesses. It also stopped writing new business in Japan.

Hartford again cut its 2009 operating earnings target to break-even to 20 cents a share, from its already drastically reduced view of 5 cents to 45 cents. Analysts were looking for a loss of 21 cents.

-By Lavonne Kuykendall, Dow Jones Newswires; 312-750-4141; lavonne.kuykendall@dowjones.com