The Hartford Financial Services Group, Inc. has finalized a $2.5 billion capital investment by Allianz SE.
Under the agreement, Allianz has purchased, at $31 per share, $750 million of preferred shares convertible to common stock after receipt of applicable approvals, and $1.75 billion of 10 percent junior subordinated debentures. The debentures are callable by The Hartford at par beginning 10 years after issuance. Allianz SE also received warrants which entitle it to purchase $1.75 billion of common stock at an exercise price of $25.32 per share, subject to shareholder approvals. The warrants expire in seven years.
The Hartford had announced the deal on Oct. 6.
Ramani Ayer, The Hartford’s chairman and chief executive officer, said the investment would strengthens his firm’s capital position and enhance its ability to weather volatile markets while competing for business.
Source: The Hartford
Was this article valuable?
Here are more articles you may enjoy.