Count It! At Paulson's Suggestion, Hartford (HIG) Splits
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When hedge fund giant John Paulson speaks, The Hartford (NYSE: HIG) evidently listens.
Earlier in the session, Hartford announced a strategic initiative in which it will focus on its property and casualty business. Additionally, the Hartford "is placing its Individual Annuity business into runoff and is pursuing sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans."
New annuity sales will cease April 27th, 2012, with the firm taking a $15 million to $20 million post-tax charge in the second-quarter of 2012.
During the Hartford's latest conference call, Paulson said executives should "do something drastic" following the 39 percent drop in the stock price last year. Paulson was aiming for the Hartford to split its property & casualty business from its life insurance companies, while winding-down variable annuity sales in the U.S.
Responding to Paulson on the call, CEO Liam McGee told Paulson that a split wouldn't create value for shareholders. We guess Paulson is impatiently waiting for McGee's letter of resignation following the blatant lie told to its largest shareholder just over a month ago.
That's right, Paulson owns about 8.5 percent of Hartford, according to his latest 13F for Paulson & Co. That's roughly 37,449,923 shares of Hartford.
On the news this morning, Hartford is indicated notably higher, currently just above 6.5 percent.
Earlier in the session, Hartford announced a strategic initiative in which it will focus on its property and casualty business. Additionally, the Hartford "is placing its Individual Annuity business into runoff and is pursuing sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans."
New annuity sales will cease April 27th, 2012, with the firm taking a $15 million to $20 million post-tax charge in the second-quarter of 2012.
During the Hartford's latest conference call, Paulson said executives should "do something drastic" following the 39 percent drop in the stock price last year. Paulson was aiming for the Hartford to split its property & casualty business from its life insurance companies, while winding-down variable annuity sales in the U.S.
Responding to Paulson on the call, CEO Liam McGee told Paulson that a split wouldn't create value for shareholders. We guess Paulson is impatiently waiting for McGee's letter of resignation following the blatant lie told to its largest shareholder just over a month ago.
That's right, Paulson owns about 8.5 percent of Hartford, according to his latest 13F for Paulson & Co. That's roughly 37,449,923 shares of Hartford.
On the news this morning, Hartford is indicated notably higher, currently just above 6.5 percent.
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