The Hartford says yes to TARP funds

The insurer yesterday received preliminary clearance to accept approximately $3.4 billion in federal aid.
JUN 12, 2009
The Hartford (Conn.) Financial Services Group Inc. today announced that it will participate in the U.S. Treasury’s Capital Purchase Program. The insurer yesterday received preliminary clearance to accept approximately $3.4 billion in federal aid. The money will go toward general corporate purposes as well as the possible repurchase of outstanding debt, the company said in a statement. Under the terms of the CPP, which is a part of the Troubled Asset Relief Program, the Department of the Treasury will buy up to $250 billion of a company’s non-voting senior preferred shares. Those shares will pay a cumulative dividend rate of 5% per year for the first five years, then reset to a 9% rate after the fifth year. However, companies that participate in the program must also adopt Treasury’s restrictions on executive pay and corporate governance. Hartford also announced that it will make a common-stock offering from time to time to reap total sales proceeds of up to $750 million. Thus far, Hartford is the only insurer to take TARP funds. Its competitors Ameriprise Financial Inc., Prudential Financial Inc., Allstate Corp. and the Principal Financial Group have all turned it down. Lincoln National Corp. of Radnor, Pa., last month was approved to take $2.5 billion, but the carrier hasn’t indicated whether it will take the help.

Latest News

UBS bets on next-gen talent amid continued advisor exodus
UBS bets on next-gen talent amid continued advisor exodus

The bank's new training initiative aims to add hundreds of advisors as it expands its mass-affluent advice unit, according to Barron's.

PIABA slams SIFMA proposal for FINRA arbitration reform
PIABA slams SIFMA proposal for FINRA arbitration reform

The lawyers' group warns that adjudicating certain claims externally and limiting punitive damages, among other suggestions, could hurt investors.

Savant Wealth targets Silicon Valley with Parkworth acquisition
Savant Wealth targets Silicon Valley with Parkworth acquisition

With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.

InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC
InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC

The wealth tech giant is unveiling its new offerings, designed for advisor productivity and client engagement, as investors and experts continue to grapple with the implications of AI.

RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market
RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market

Meanwhile, Merchant is continuing to expand its support for RIAs by partnering with a South Dakota-chartered trust company.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.