The Hartford (NYSE: HIG) today announced the pricing of its public
offering of $300 million of 4.300% Senior Notes due 2043. This offering
is expected to close on or about April 18, 2013.
The offering is part of The Hartford’s previously announced capital
management plan and is the fulfillment of its previously announced
intention to issue new long-term senior debt securities. The Hartford
commenced the debt reduction component of the capital management plan
with the completion of cash tender offers for senior debt in an
aggregate principal amount of $800 million on March 26, 2013. The
capital management plan also includes The Hartford’s previously
announced intent to repay the July 2013 and March 2014 debt maturities
totaling $520 million.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan
Securities LLC acted as joint bookrunning managers for the offering of
senior notes.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE:HIG) is a
leader in property and casualty insurance, group benefits and mutual
funds. The company is widely recognized for its service excellence,
sustainability practices, trust and integrity.
This news release shall not constitute an offer to sell or a
solicitation to buy any securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The offering is being made only by means of a prospectus
and related prospectus supplement, which may be obtained by visiting the
SEC’s website at www.sec.gov
or by contacting BofA Merrill Lynch, 222 Broadway, New York, New York
10038, Attention: Prospectus Department or email at g.prospectus_requests@baml.com;
Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One
Madison Avenue, New York, New York 10010, telephone: 1-800-221-1037 or
email at newyork.prospectus@credit-suisse.com;
or J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York,
10179, Attention: High Grade Syndicate Desk, 3rd Floor, telephone
collect at 1-212-834-4533.
SAFE HARBOR STATEMENT
Some of the statements in this release should be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as “anticipates,” “intends,” “plans,” “seeks,”
“believes,” “estimates,” “expects,” “projects” and similar references to
the future. Examples of forward-looking statements include, but are not
limited to, statements the company makes regarding future results of
operations. The Hartford cautions investors that these forward-looking
statements are not guarantees of future performance, and actual results
may differ materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include: challenges related to The Hartford’s
and its subsidiaries’ (collectively, the “Company”) current operating
environment, including continuing uncertainty about the strength and
speed of the recovery in the United States and other key economies and
the impact of governmental stimulus and austerity initiatives, sovereign
credit concerns, a sustained low interest rate environment, higher tax
rates and other potentially adverse developments on financial, commodity
and credit markets and consumer and business spending and investment and
the effect of these events on our returns in investment portfolios and
our hedging costs associated with our variable annuities business; the
risks, challenges and uncertainties associated with our capital
management plan and our strategic realignment to focus on our property
and casualty, group benefits and mutual fund businesses, place our
Individual Annuity business into run-off and the sale of the Individual
Life, Woodbury Financial Services and the Retirement Plans businesses;
execution risk related to the continued reinvestment of our investment
portfolios and refinement of our hedge program for our run-off annuity
block; market risks associated with our business, including changes in
interest rates, credit spreads, equity prices, market volatility and
foreign exchange rates, and implied volatility levels, as well as
continuing uncertainty in key sectors such as the global real estate
market; the possibility of unfavorable loss development including with
respect to long-tailed exposures; the possibility of a pandemic,
earthquake, or other natural or man-made disaster that may adversely
affect our businesses; weather and other natural physical events,
including the severity and frequency of storms, hail, winter storms,
hurricanes and tropical storms, as well as climate change and its
potential impact on weather patterns; risk associated with the use of
analytical models in making decisions in key areas such as underwriting,
capital, reserving, and catastrophe risk management; the uncertain
effects of emerging claim and coverage issues; the Company’s ability to
effectively price its property and casualty policies, including its
ability to obtain regulatory consents to pricing actions or to
non-renewal or withdrawal of certain product lines; the impact on our
statutory capital of various factors, including many that are outside
the Company’s control, which can in turn affect our credit and financial
strength ratings, cost of capital, regulatory compliance and other
aspects of our business and results; risks to our business, financial
position, prospects and results associated with negative rating actions
or downgrades in the Company’s financial strength and credit ratings or
negative rating actions or downgrades relating to our investments; the
impact on our investment portfolio if our investment portfolio is
concentrated in any particular segment of the economy; volatility in our
earnings and potential material changes to our results resulting from
our adjustment of our risk management program to emphasize protection of
economic value; the potential for differing interpretations of the
methodologies, estimations and assumptions that underlie the valuation
of the Company’s financial instruments that could result in changes to
investment valuations; the subjective determinations that underlie the
Company’s evaluation of other-than-temporary impairments on
available-for-sale securities; losses due to nonperformance or defaults
by others; the potential for further acceleration of deferred policy
acquisition cost amortization; the potential for further impairments of
our goodwill or the potential for changes in valuation allowances
against deferred tax assets; the possible occurrence of terrorist
attacks and the Company’s ability to contain its exposure, including the
effect of the absence or insufficiency of applicable terrorism
legislation on coverage; the difficulty in predicting the Company’s
potential exposure for asbestos and environmental claims; the response
of reinsurance companies under reinsurance contracts and the
availability, pricing and adequacy of reinsurance to protect the Company
against losses; actions by our competitors, many of which are larger or
have greater financial resources than we do; the Company’s ability to
distribute its products through distribution channels, both current and
future; the cost and other effects of increased regulation as a result
of the enactment of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, which, among other effects, vests a Financial
Services Oversight Council with the power to designate “systemically
important” institutions, will require central clearing of, and/or impose
new margin and capital requirements on, derivatives transactions, and
created a new “Federal Insurance Office” within the U.S. Department of
the Treasury; unfavorable judicial or legislative developments; the
potential effect of other domestic and foreign regulatory developments,
including those that could adversely impact the demand for the Company’s
products, operating costs and required capital levels; regulatory
limitations on the ability of the Company and certain of its
subsidiaries to declare and pay dividends; the Company’s ability to
maintain the availability of its systems and safeguard the security of
its data in the event of a disaster, cyber or other information security
incident or other unanticipated event; the risk that our framework for
managing operational risks may not be effective in mitigating material
risk and loss to the Company; the potential for difficulties arising
from outsourcing relationships; the impact of changes in federal or
state tax laws; regulatory requirements that could delay, deter or
prevent a takeover attempt that shareholders might consider in their
best interests; the impact of potential changes in accounting principles
and related financial reporting requirements; the impact of any future
errors in financial reporting; the Company’s ability to protect its
intellectual property and defend against claims of infringement; the
Company’s ability to implement its capital management plan; and other
factors described in such forward-looking statements and other factors
described in The Hartford's 2012 Annual Report on Form 10-K, and other
filings The Hartford makes with the Securities and Exchange Commission.
Any forward-looking statement made by the Company in this release speaks
only as of the date of this release. Factors or events that could cause
the Company's actual results to differ may emerge from time to time, and
it is not possible for the Company to predict all of them. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments
or otherwise.
HIG-F
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