Paulson Brushes Off Hartford Plan

Mar 23 2012 | 12:27pm ET

If Hartford Financial Services Group CEO Liam McGee thought his plan to slim his company down would satisfy his chief critic—and he almost certainly did not—he has been disappointed.

Paulson & Co. yesterday pooh-poohed McGee's planned strategic review to consider splitting its main business lines, calling it merely a "first step."

"We do not believe that today's actions will materially increase P&C investor interest," Paulson said, referring to Hartford's property-casualty business. "While we appreciate the extensive work of The Hartford's board and management, we do not believe the positive actions announced today address the main problem with The Hartford's valuation."

The tone of that comment is, at least, more conciliatory than Paulson's recent pronouncements on the Hartford. In a conference call last month, firm founder John Paulson blasted McGee, saying he needs to "overcome the obstacles… not merely to point out that there's obstacles."

Paulson is Hartford's largest shareholder with an 8.5% stake.

In addition to the strategic review, Hartford said it would leave the annuity business and would consider selling its broker-dealer and retirement investment units.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 
Error

FINalternatives Trending

From the current issue of