New book by Larry Connors - Click here to read more
Hartford Financial Services which expects a third quarter net loss in the range of 8.50-8.80 dollars per share, in a statement said Allianz's billion-dollar investment would help it in weathering the volatile markets.
"We are taking decisive action to ensure that Hartford remains well capitalised for long-term success. This investment strengthens our ability to weather volatile markets and continue to invest and vigorously compete in our businesses," the firm's Chairman and Chief Executive Officer Ramani Ayer said.
Allianz would purchase at a price of USD 31 per share, USD 750 million of preferred shares convertible to common stock after receipt of applicable approvals, and USD 1.75 billion of ten per cent junior subordinated debentures.
Further, Allianz would receive warrants which entitle it to purchase 1.75 billion dollars of common stock at an exercise price of 25.32 dollars per share, subject to shareholders approvals. The warrants expire in seven years.
On USD 2.5 billion fresh funds, Allianz Board Chairman and Chief Executive Michael Diekmann said it expects a favourable return.
According to the statement, Hartford Financial Services expects a net loss for the third quarter in the range of USD 8.50-8.80 per share, including net realised capital losses in the range of USD 7.05-7.25 per share, or about USD 2.1 billion - 2.2 billion.
Noting that most of the realised capital losses are impairments on its investment portfolio, the statement said 75 percent of them are related to financial services sector impacted by the credit turmoil.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
