The Hartford sets plan to repay bailout funds

The Hartford Financial Services Group Inc. announced today plans to repay its $3.4 billion in federal bailout funds, which include raising $2.4 billion.

The Hartford-based life and property and casualty insurer said it decided to make the public offering of debt and equity securities after consulting with its primary regulator, the federal Office of Thrift Supervision.

Hartford Financial said it will offer $1.45 billion in common stock, $500 million in convertible preferred stock, and $425 million in senior notes.

The remainder $675 million of the senior notes are to prefund existing debt.

 "We appreciate the critical role the government and the American taxpayers have played in stabilizing the financial markets and we are pleased to announce a plan to repurchase Treasury's investment in fewer than 10 months," said Liam E. McGee, The Hartford's chairman, president and CEO. "The Hartford always viewed this investment as temporary capital and intended to return it as soon as it was prudent. As we have said, we ended the year in a strong capital position, and our fourth quarter results reflected The Hartford's third sequential quarter of improving core earnings."