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Hold your reindeer.The Wall Street Journal’s Jamie Heller just spoke with some former regulars who are sceptical that The Hartford’s proposal to sell off its life insurance-related operations will get approved.
Tom Considine, New Jersey’s former banking and insurance commissioner, told Heller that leaving a “less vibrant part behind would be closely scrutinized” by banking officials.
“Approval would be unlikely in this environment,” Considine added.
The principal concern is that the company is simply seeking to dump obligations from boom-time policy sales earlier in the decade that are now coming to term.
Even if it were to go through, it would take at least a year to process, Heller writes.
This will really upset Hartford’s majority shareholder, John Paulson, who totally reamed an analyst on the company’s last earnings call. He said Hartford wasn’t doing enough to improve the business, and this spinoff was going to make him happier.