life insurance The Hartford Financial Services.

 

 

 

life insurance The Hartford Financial Services Group said on Wednesday that it would sell most of its life insurance business, acceding to demands from one of its biggest shareholders, the hedge fund Paulson & Company life insurance.

 life insurance Hartford, which also said it would wind down its annuity business, intends to focus on its core operations in property and casualty, group benefits and mutual funds life insurance.

''life insurance The Hartford's sharper focus will lead to an organization that, over time, will be positioned for higher returns on equity, reduced sensitivity to capital markets, a lower cost of capital and increased financial flexibility,'' Liam E. McGee, the company's chairman and chief executive, said in a statement. ''With this portfolio and the actions we are taking, we are on the right path to unlock value and deliver superior, long-term returns for shareholderslife insurance The Hartford life insurance .''

life insurance The Hartford But the moves did not appear to fully satisfy the concerns of Paulson & Company. The hedge fund said in a statement that while it appreciated the insurer's efforts to raise shareholder value, its actions did not address the fundamental problem of analysts who were neglecting the company's property and casualty business life insurance.

''life insurance 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 undervaluation,'' the hedge fund said in a statement.

life insurance The Hartford Hartford's announcement early Wednesday morning came after weeks of agitation by Paulson &life insurance The Hartford  Company, which holds an 8.5 percent stake in the insurer life insurance. The hedge fund has called for a breakup of the 200-year-old company, arguing that the value of Hartford's ''crown jewel'' property and casualty business was obscured by weaker-performing units.

In a presentation filed with the Securities and Exchange Commission this month, Paulson & Company argued that spinning off the property and casualty business would increase shareholder value 60 percent.

  life insurance The Hartford But the Hartford said that its decision came after a business review by its management and board over the last several quarters. The company had life insurance  hired Goldman Sachs and Greenhill & Company to consider possible business changes last summerlife insurance The Hartford life insurance.

life insurance The Hartford Paulson & Company's founder, John A. Paulson, is not known for being an activist investor. But he participated in the Hartford's earnings call last month to urge management to ''do something drastic.''

Behind the hedge fund's campaign is the poor performance of the Hartford's stock, which has tumbled more than 16 percent in the last 12 months. The insurer, one of the country's oldest, had been battered by the financial crisis and was a recipient of government bailout money. Hartford repaid its bailout, life insurance totaling some $3.4 billion, two years ago.

life insurance The Hartford Paulson & Company has suffered some setbacks over the last year as numerous bets life insurance on gold and the Chinese company Sino-Forest, among others - have soured life insurance.