Hartford Financial Services Group's (HIG) search for a new chief executive is moving along, despite the restrictions placed on the company because of its acceptance of government funding.

"The search committee has been directed by the board and they have been very pleased with their progress," said Ramani Ayer, Hartford chairman and chief executive, during the company's second quarter earnings conference call Thursday. Ayer said nearly two months ago he plans to retire by the end of the year.

The company started an external search to fill both the chairman and chief executive positions, which will be separated.

Shares of Hartford surged 7.6% pre-market to $16.09 each, after Hartford reported better-than-expected second-quarter results.

On Wednesday after the market close, 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. It was Hartford's fourth consecutive quarterly 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.

The operating profit was $1.90 a share, down 14% from $2.22 a share a year earlier. Analysts projected per-share earnings of $1.16.

Hartford, along with other companies that have accepted government help, must adhere to "significant limitations" on pay and bonuses for top executives, which the company listed as a new risk factor in its quarterly report. It said the limitations could make it difficult to attract and retain executive officers and other key personnel.

During the call, Ayer said that the company had lost "a number" of staff in its specialty commercial business, which saw premiums drop 16% in the quarter. He said the company moved quickly to put new management in place.

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