NEW YORK -- Hartford Financial Services Group Inc, which last week got preliminary approval to tap US$3.4-billion of federal bailout funds, said on Monday it plans to keep its U.S. property and casualty and life businesses, ending speculation about a possible sale.
Like many insurers, the Hartford, Connecticut-based company has been struggling with the falling value of investments. It has lost money for three straight quarters, including US$1.21-billion in the first quarter.
"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," Chief Executive Ramani Ayer said in a memo to employees. "We will move forward with both property and casualty and life businesses."
The chief executive said Hartford plans to emphasize property and casualty, group benefits and life insurance businesses, and also operate wealth management and retirement businesses.
Hartford has been scaling back operations in Asia and Europe, and last month said it would suspend selling new policies in Japan and the UK.
It had been trying to sell its property and casualty business, and hired Goldman Sachs & Co to help find buyers, people familiar with the matter said in April.
Last week the government gave several insurers the ability to take funds from the government's Troubled Asset Relief Program. Hartford last November agreed to buy a small savings and loan so that it could be eligible for the program.
In afternoon trading, Hartford shares were up US$1.17, or 8%, at US$15.77 on the New York Stock Exchange.
© Thomson Reuters 2009
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