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% junior subordinated debentures. The debentures are callable by The Hartford at par beginning ten 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 October 6.
"We are pleased to have Allianz, one of the world's leading insurers and financial services providers, as a key investor in The Hartford," said The Hartford's chairman and chief executive officer Ramani Ayer. "This investment strengthens our capital position and enhances our ability to weather volatile markets while we vigorously compete in our businesses."
About The Hartford
The Hartford, a Fortune 100 company, is one of the nation's largest financial services companies, with 2007 revenues of $25.9 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, the United Kingdom, Canada, Brazil and Ireland.