Allianz invests US$2.5 billion in The Hartford

Allianz SE will provide a US$2.5-billion capital investment in The Hartford Financial Services Group, purchasing roughly a quarter of Hartford’s outstanding common shares.
In a second-quarter filing to the U.S. Securities Exchange Commission (SEC), The Hartford reported having slightly more than 300 million common shares for the first six months of 2008.
Allianz will be purchasing more than 69 million shares of common stock upon receipt of necessary regulatory and other approvals, according to filing with the SEC.
“We are taking decisive action to ensure that The Hartford remains well capitalized for long-term success,” Ramani Ayer, chairman and CEO of The Hartford, said. “This investment strengthens our ability to weather volatile markets and continue to invest and vigorously compete in our businesses.”
Ratings agencies recently changed their outlook on The Hartford’s financial strength rating to ‘negative,’ following reports that The Hartford’s share price had taken an 18% nosedive in the U.S. financial markets.
Ayer said The Hartford is dedicated to honouring its commitments to customers.
“We believe in the fundamental strength of the U.S. economy and its insurance industry and respect The Hartford as a great insurance brand,” Michael Diekmann, chairman of the Board of Management and CEO of Allianz SE, said in a release. “We anticipate a favourable return on our investment.”