Hartford to keep life and property/casualty units

Chief executive Ramani Ayer today told employees in an internal memorandum that the insurance juggernaut, which has limped its way through dismal financial results and devastating investment losses, has decided to hold on to both units.
MAY 18, 2009
The Hartford (Conn.) Financial Services Group Inc. has decided to keep its life and property/casualty units. Chief executive Ramani Ayer told employees today in an internal memorandum that the insurance giant, which has limped its way through dismal financial results and devastating investment losses, has decided to hold on to both units. The firm received the Department of the Treasury’s blessing for funds from the Troubled Asset Relief Program on Thursday. “The best way to deliver a long-term value to our shareholders is to return to our historical strengths as a U.S.-centric insurance company, with a focus on our strong portfolio of protection businesses, primarily property and casualty, group benefits and life,” Mr. Ayer wrote in the memo. The firm has posted losses in each of the last three quarters. Most recently, The Hartford reported a first-quarter $1.21 billion loss and wrapped up 2008 with a $2.75 billion loss that came from write-downs on corporate debt and mortgage-related assets. The insurer’s situation had spurred reports in the past two months that Ace Ltd. of Zurich, Switzerland, and The Travelers Cos. Inc. of New York were among the possible suitors for its property/casualty unit, while MetLife Inc. of New York and Sun Life Financial Inc. in Toronto had reportedly been speaking with the carrier about its life business. The Hartford, which previously said that it would pull back from doing business in Europe and Japan, may receive $3.4 billion from the Treasury Department. Company spokeswoman Debora Raymond didn’t immediately return a call seeking comment.

Latest News

Advisor says retirement plan defaults still target an average
Advisor says retirement plan defaults still target an average

ERISA Investment Fiduciary Philip Chao says most retirement plans use target date funds as a one-size-fits-all default that ignores individual circumstances

Ex-broker in Florida gets more than six years for stealing $2 million from senior
Ex-broker in Florida gets more than six years for stealing $2 million from senior

Eric J. Stone was fired by Fidelity in 2021 after facing claims he took loans from clients.

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income