Hartford Insurance (HIG) got flensed last week after an awkward, halting conference call that left investors nervous about the company’s capital position. It wasn’t so much that news was bad, so much as it seemed like the management had no good idea about the health of the company. Well perhaps management was just unprepared for the call itself. The company put out an 8-K today explaining that if the S&P 500 ends the year at 900, the company will still have $2 billion more than it needs to maintain an AA rating. If the market rallied back to 1165, the margin would be $3.5 billion.
It doesn’t looks like there’s any news news in here — it’s just a clarification — but the market is pushing Hartford shares up over 40% today. Perhaps there’s something to the notion that transparency actually has some value.
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