Litigation

Hartford Has Worst Quarterly loss in 198 Years...But Don't Panic-CEO

By John Darer

Hartford Financial Services Group took a $2.6B hit in the 3rd quarter which was comprised of $2.2B in capital losses and $932 MM in deferred acquisition costs related to new and renewed policies

Today Hartford released the following statement from Ayer which said:

"I want to reassure you that the current stock price is not a direct reflection of the company?s ability to meet its obligations to our customers. The Hartford is financially strong and well capitalized, and our liquidity position is outstanding. Despite our recent challenges, I am very confident in our capital position and ability to meet all our policyholder obligations. The Hartford does not have a solvency issue".

? Capitalization at levels consistent with the standards rating agencies have historically required for
AA-level companies;
? About $10 billion of liquidity, including cash and short-term investments of $7.3 billion of cash
and short-term investments;
? Statutory surplus of $13.1 billion;
? Debt-to-capitalization ratio of 31 percent;
? $500 million of contingent capital in a facility available to Hartford today;
? A $90 billion general account portfolio; and
? Prefunded debt obligations through June of 2010.

Following is a link to Ayer's statement along with a helpful breakdown of holdings included in its 3rd quarter info sheet

Download 10-31-08_Hartford_Statement.pdf

Download 3Q_Info_Sheet_10-31-08.pdf

Full post as published by Structured Settlements 4Real on October 31, 2008 (boomark / email).