Hartford Financial Loses Over Half Its Market Value
Insurer may have to raise more capital as variable annuity business suffers
By Alistair Barr
October 30, 2008
SAN FRANCISCO (MarketWatch) -- Hartford Financial Services lost more than half its market value Thursday on concern the insurer may need to raise more capital. The company reported a big third-quarter loss late Wednesday and said that it couldn't gauge the amount of extra capital it has because of market volatility. The results left "lingering capital questions," Andrew Kligerman, an analyst at UBS, wrote in a note to clients on Thursday.
Hartford (HIG: $9.62, -$10.24, -51.6%) got a $2.5 billion investment from German insurance giant Allianz (AZ: $8.04, +0.45, +5.9%) on Oct. 6.
But the stock market, measured by the Standard & Poor's 500 index, has slumped about 10% since then. That's put more pressure on some of Hartford's businesses that rely on equity market returns and fees from managing clients' money.