The Hartford Financial Services Group said Wednesday that it was repaying $3.4 billion in government aid it received in 2008 to help it bolster its balance sheet amid the nascent financial crisis.
The Hartford has about 1,800 employees in Minnesota. The property and casualty insurer bought a Florida-based thrift in 2008 and applied for aid under a provision of the Troubled Asset Relief Program (TARP) called the Capital Purchase Program (CPP).
"We are pleased to complete our plan to return the U.S. Treasury's investment in The Hartford and appreciated the opportunity to participate in CPP and the support of the American taxpayers," company chairman Liam E. McGee said Tuesday in a prepared statement.
The Hartford said it repaid the money, plus a final dividend of $21.7 million, from the money it raised in recent equity and debt offerings, as well as other resources. The government still has warrants to buy about 52 million shares of the company's common stock at $9.79 a share. Shares closed Wednesday at $28.42. The Hartford said it doesn't plan to buy back the warrants from the U.S. Treasury.
"With the capital raise completed and the investment repaid, we are well positioned from both a capital and balance sheet perspective," McGee said.
DAN BROWNING
