Moody's Investor Service (Moody's) views The Hartford's (Hartford) new capital plan and restructuring as a credit positive.
After strong shareholder pressure in February of 2012 — with the loudest voice being that of hedge fund titan and majority shareholder, John Paulson — the company was urged to split in two in order to focus on the more profitable property and casualty business.
By March, Paulson's will was realized when the company announced that it was to divest its three life businesses and place its U.S. annuity business into runoff.
The plan, which was executed through January of this year, found Hartford selling its broker-dealer business to American International Group, Inc.; its individual life business to Prudential Financial, Inc.; its retirement plan business to Massachusetts Mutual Insurance Company and its variable annuity marketing business to Forethought.