It expects its share price to drop up to £5, including net realised capital losses of up to £4.12 per share.
The vast majority of the realised capital losses are impairments on The Hartford’s investment portfolio. About 75 percent of the impairments are related to investments in the financial services sector, which were negatively affected by recent market turmoil.
In conjunction with Allianz’s financial investment and the increase in shares outstanding, The Hartford has reduced its quarterly dividend to £0.18 per share.
Dave Znamierowski has stepped down as executive vice president and chief investment officer for The Hartford and president of Hartford Investment Management Company. He has been replaced by Greg McGreevey, who joined The Hartford in August.
This comes as Allianz SE invests £1.4bn in The Hartford.
The Hartford chairman and chief executive officer Ramani Ayer says: “With this investment by Allianz SE, we project that we will finish the year with a capital margin of about £2bn in excess of our modeled rating agency requirements to maintain AA level ratings.”