Hartford Moves Towards Paulson's Position

Mar 21 2012 | 12:57pm ET

The Hartford Financial Services Group is closing one business and may split its life-insurance and property-casualty businesses—music to John Paulson's ears, even if the insurance giant bent over backwards to deny the hedge fund manager credit for the decision.

Hartford CEO Liam McGee said today that the company would exit the annuity business. Better still for Paulson, who has been calling for a split between Hartford's two main businesses, the company said it would look into selling much of its life-insurance business, as well as its broker-dealer Woodbury Financial Services and its retirement investment unit.

While taking a step towards bowing to Paulson's main—and, recently, frequently made—demand, Hartford said the hedge fund manager, its largest shareholder, was not the impetus. McGree said it had hired investment bankers in the summer and was already evaluating strategic alternatives before Paulson began agitating for a split.

"This was Hartford's decision," McGee told The Wall Street Journal. "We appreciate the constructive suggestions of all of our shareholders, including Paulson."


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...