The latest reports in the greater press hold that Hartford Financial Services Group Inc. will retain its life and property & casualty insurance business units, according to a published report Monday.
Bloomberg News yesterday quoted an internal memo it obtained in which the company in which CEO Ramani Ayer told employees that, "The best way to deliver 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."
This news comes after the insurer received approval last week to participate in the U.S. Treasury Department’s Troubled Asset Relief Program (TARP), which has approximately $110 billion left in the government’s kitty.
Hartford said in a statement it received preliminary approval for $3.4 billion, which is subject to final negotiation and approval, Reuters reported. As a condition for taking part in the Treasury's Capital Purchase Program, Hartford agreed to buy Florida-based Federal Trust Corp., a small savings and loan, reports the Washington Post.
The Hartford wrote down the value of mortgage-linked assets and corporate debt, resulting it the company’s $2.7 billion loss in 2008. The insurer posted about $12.4 billion in writedowns and unrealized losses linked to the subprime collapse since the beginning of 2007, second among insurers to American International Group Inc., which received four U.S. bailouts, reports Bloomberg.
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