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.
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.
