The Hartford Will Cut Jobs, Adjust VA Pricing
November 2, 2008
To shore up a $2.63 billion third quarter loss, The Hartford Financial Services Group plans to reduce its workforce and adjust the prices and terms of its variable annuities. But Hartford executives said they have no immediate plans to raise additional capital.
“Our resources continue to be tested by the global markets, but even at today’s market levels, The Hartford remains well-capitalized,” said Ramani Ayer, the company’s chairman and CEO, during the quarterly earnings call.
The Hartford recently received a $2.5 billion capital infusion from Allianz SE, but new Hartford Chief Investment Officer Greg McGreevey said it is “extraordinarily difficult” to estimate how much capital the company would have at the end of the year.
“I don’t understand how you can say you feel comfortable with your capital position,” Edward Spehar, an analyst at Merrill Lynch, told McGreevey. “And yet you can’t give us any idea what the number is.”
Hartford did not give details on how many jobs it will cut, nor how it will adjust the prices and terms of its variable annuities. The company said it expects to reduce expenses by $250 million in 2009.
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