Hartford to sell property and casualty unit
by David Masters
Story link: Hartford to sell property and casualty unit
Hartford Financial Services is looking to sell off its property and casualty business, according to reports by Reuters and Bloomberg.
The struggling US-based insurer is hoping to attract bids of up to $8 billion.
According to Citigroup estimates, Hartford’s P&C unit is worth between $4 billion and $8 billion.
Potential buyers include Allianz, Met Life, Munich Re, and Travelers, although it is not yet clear whether any of these companies have been approached by Hartford.
Reaching the $8 billion price tag could prove difficult in the current economic climate as potential buyers would struggle to raise this level of capital.
Hartford is selling off units to cover large losses on investments during the credit crunch.
Earlier this month, reports suggested that Hartford was trying to sell its life insurance unit to Canada-based Sun Life Financial, although talks between the two companies later collapsed without a deal.