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Does anybody have any additional insight into what's going on w/ The Hartford beyond the recent Reuters news re: Increased :ife reserves resulting from "accounting changes"?
The Hartford: Problems?
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When you open this link to a former post on The Hartford, click on the "HARTFORD" link in that post. It has some pertinent financial data about the company by an investor who analyzes the company and the stock. Insightful.
When you open this link to a former post on The Hartford, click on the "HARTFORD" link in that post. It has some pertinent financial data about the company by an investor who analyzes the company and the stock. Insightful.
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The reserve relief changes granted to Hartford were proposed by the ACLI for the whole industry. The NAIC rejected them. Apparently Connecticut granted Hartford the relief.
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Thanks, Sports - I hadn't read that A.M. Best piece. No wonder clients are getting skittish, when you've got news like this about brand-name companies to deal with.
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The concept of "reserves" is interesting. The need for reserve requirements is sort of obvious, I guess.
But suppose in whatever business you ran you were required to have an equal reserve set aside for every dollar of obligation that you incurred. Do you suppose that might put a bit of a crimp in your ability to do business? You sign a contract to build an office building. Oops, you have to put $1 million aside in reserves until completion. Not a completion bond. Not insurance that pays if you fail. Actual solid reserves in the form of corporate, government and other solid investments.
This is why Aviva is having problems with its U.S. operations.
But suppose in whatever business you ran you were required to have an equal reserve set aside for every dollar of obligation that you incurred. Do you suppose that might put a bit of a crimp in your ability to do business? You sign a contract to build an office building. Oops, you have to put $1 million aside in reserves until completion. Not a completion bond. Not insurance that pays if you fail. Actual solid reserves in the form of corporate, government and other solid investments.
This is why Aviva is having problems with its U.S. operations.
Hartford May Sell Life Unit!
Hartford May Sell Life Unit: Report - Companies/Financial - Life and Health Insurance News
Hartford May Sell Life Unit: Report - Companies/Financial - Life and Health Insurance News
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They may have talked to MetLife, but money talks and that is why Allianz walked away with the deal. Allianz put $2.6 billion into Hartford, which is chicken feed to them.
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It appears Met would prefer AIG's book, rather than Hartford's.
I might add...that is my opinion, and is based solely on what I read online.
I might add...that is my opinion, and is based solely on what I read online.
The deal you speak of was in Oct 08... HIG now needs more capital. Are you saying that Allianz is going deep again, and throwing some more casholla into the black hole...?
The only thing I have seen read was Sun Life of Canada, in talks to buy part or all of the life unit, here of late... So says the WSJ, (if you can believe those right wing capitalists). Amazing how the terms capitalists and right wing have changed recently; annoouncing you are one or both is kind of like lighting up a cigarette in public these days.... "ooh, you've got cooties..."
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