American International Group (AIG) isn’t the only life insurance company making strides toward paying off federal loans.
A recent release by Connecticut-based Hartford Financial Services Group, Inc. shows the company had purchased back all $3.4 billion in shares it had borrowed through the Troubled Asset Relief Program. It also made the final dividend payment of about $21.1 million.
“We are pleased to complete our plan to return the U.S. Treasury’s investment in The Hartford and appreciated the opportunity to participate in CPP and the support of the government and American taxpayers,” said Liam E. McGee, chairman, president and CEO of the company. “With the capital raise completed and the investment repaid, we are well-positioned from both a capital and balance sheet perspective.”
The company will not repurchase these warrants through the Treasury Department, according to the release.
Earlier, AIG received some $51 billion through sales of two major assets. British rival insurer Prudential, which is not connected to New Jersey-based Prudential Financial, paid $25 billion in cash and $10.5 billion in assets for AIG’s Asian insurance unit, while MetLife spent a total of $15.5 billion for AIG’s American Life Insurance Company.
Funds earned through these acquisitions went toward paying off the $85 billion in bailout money AIG received in 2008.