The Hartford Financial Services Group Inc. plans to repay most of a rescue it received during the financial crisis, buying back debentures and warrants from Germany's Allianz SE for $2.43 billion, Reuters reports.
One analyst said Monday the deal could potentially save the company hundreds of millions of dollars.
In early October 2008, during the deepest point of the crisis, Allianz pumped $2.5 billion into the Hartford insurance-wealth management firm via preferred shares, debentures and warrants.
After the repurchases, Allianz will still own about 5 percent of the company, worth $464 million as of Friday's close.
In a statement, the insurer said the buyback -- to be partly financed by issuing new debt and partly by its stock buyback program -- would give it "additional financial flexibility and an improved capital structure."