Stock in The Hartford Financial Services Group soared on Monday morning October 6 after the announcement of a binding agreement with Allianz SE, which provides for a $2.5 billion capital investment.

“We are pleased that Allianz, one of the world’s leading insurers and financial services providers, will make such a significant investment in The Hartford,” said The Hartford’s chairman and chief executive officer Ramani Ayer. “We are taking decisive action to ensure that The Hartford remains well capitalized for long-term success. This investment strengthens our ability to weather volatile markets and continue to invest and vigorously compete in our businesses. We are dedicated to honoring our commitments to customers.”

The Hartford's stock, along with other insurers, was under selling pressure last week following disclosure of investment losses, expectations of quarterly earnings and actions by ratings agencies Moody’s and Fitch. While some erroneous reporting may have caused confusion, The Hartford’s ratings remain the same.

For it’s part, the company issued a statement emphasizing that The Hartford is confident about their financial strength; core businesses are performing well and liquidity is strong; and they are committed to maintaining their strong ratings as follows: Moody’s Aa3 (Excellent) and Fitch AA (Very Strong).
 
The Hartford Announces $2.5 Billion Investment By Allianz SE (10/6/08)
 
Presentation by The Hartford on Allianz Investment (10/6/08)

Hartford Stakeholder Letter (10/6/08)

October 7, 2008