Allianz CEO Sees "Good Upside" For Hartford Investment
27 February 2009 - 10:41PM
Dow Jones News
Allianz SE (AZ) Chief Executive Michael Diekmann Friday defended
the insurer's $2.5 billion investment in a 23.7% stake in U.S.
insurance and financial-services company Hartford Financial
Services Group Inc. (HIG) last year.
"We see good upside for your investment," Diekmann told
investors.
He said that "the timing of the investment doesn't look good,"
but noted that the entire U.S. insurance market "is getting
repositioned," that the market capitalization lost by large U.S.
players "leaves a lot of opportunities for those who survived the
shakeout," and that Hartford "is one of the very strong
operators."
Hartford's stock price has fallen some 84% since April but has
more than tripled since its all-time low of $4.16 Nov. 21.
Hartford said Feb. 5 it intends to cut its quarterly dividend by
84% to $0.05 as it swung to a fourth-quarter loss on investment
losses.
Hartford reported a fourth-quarter net loss of $806 million, or
$2.71 a share, compared with year-earlier net profit of $595
million, or $1.88 a share.
The latest results included a $597 million write-down of
goodwill in the corporate and annuity segments.
Company Web site: www.allianz.com
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com