Hartford Plans to Issue $750 Million in Stock

Hartford Financial Services Group Inc. will issue $750 million in stock and use the proceeds for general corporate purposes, including the possible repurchase of outstanding debt, the company said.

Hartford ?will offer shares of its common stock from time to time? under the discretionary equity issuance plan, the company said in a statement.

Ramani Ayer, the company?s chairman and chief executive, said in the statement Hartford was ?enhancing our financial strength? in ?this continued uncertain economic environment.?

Ayer this month announced he will retire by the end of 2009. The announcement came after three consecutive quarters of losses, and a $2.75 billion loss for 2008, and shortly after Hartford received preliminary approval for $3.4 billion in federal assistance.

Hartford last year sold a $2.5 billion equity stake to Allianz SE and pared dividends and eliminated jobs to bolster its capital position (BestWire, June 10, 2009).

Most members of the Hartford Insurance Group and the Hartford Life Group have a current Best?s Financial Strength Rating of A (Excellent).

(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)