Insurance crisis

[The Voice of Reason]

I decided this needed its own thread at this point because its pretty scary stuff for greater hartford.

Two of our largest companies are struggling to stay afloat.

One seems pretty much doomed, and the other will likely have to change signifigantly in order to survive. and it will be a shadow of its former self if that happens.

Phoenix companies is teetering on failure. I honestly have no idea how they will survive, and would love to know more about things going on over there because I have long concidered this company to be Hartfords weakest link. I have also seen Phoenix as the kind of company Hartford needs more of. Sadly we may lose them.

The hartford is being dragged down by its life insurance company and it looks now like they may sell the unit.

the current suitor that has been named is SUNLIFE out of Canada.

If this were to happen It might not be all bad for Hartford. but losing control is always a huge risk.

Sunlife allready has major us operations. there is a chance that the company would reorganize to be based in Hartford, but the parent of course would always be in Canada.

EDIT

I am catching up on my reading...

It seems sunlife is very much talking to the hartford.

Bloomberg said that if they paid sunlife 1 billion it would be a good deal for the hartford.

This gives you an idea just how toxic the life insurance side is.

Also sunlife freed up monies for acquisitions in December by selling part of a unit for 2.3 billion. Citigroup has the property and casualty side valued at about 4-8 Billion but the life side is worth between NEGATIVE 2.5-6.5 Billion with a total company value of about 1.5 million.

It seems the sunlife US operations are smaller than their website makes it look. they do a lot of business, but the operations themselves are sort of small at least compared to Hartford lifes operations.

[The Voice of Reason]

The Phoenix troubles continue to be exposed.

this article goes deeper into the problems facing the company long term.

I am not sure what a best case scenerio would be at this point. times are very tough for this company. it is a real shame.

http://www.courant.com/business/hc-phoenix...0,5088052.story