Hartford Financial Services Increases Share Repurchase Authorization To $2.5 Bln

(RTTNews) - Hartford Financial Services Group Inc. (HIG) said it increased the share repurchase authorization to $2.5 billion through 2022 and accelerating initial buyback plans, expecting to utilize $1.5 billion by year-end.

As a result, the company expects to achieve a return on equity of 13-14 percent in 2022 and 2023, enhancing value creation for all our stakeholders.

The Hartford also announced the receipt of two additional unsolicited proposals from Chubb Limited to acquire the company. In a letter dated March 30, 2021, Chubb said it was prepared to offer "in excess of $67 per share" if The Hartford would engage in "meaningful discussion and due diligence."

The Hartford received another letter, dated April 14, 2021, in which Chubb said it was willing to increase its offer to "$70 per Hartford share, the top end of our range," payable approximately 60% in cash and 40% in Chubb stock.

The Hartford's board rejected both proposals, determining that entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders. The board also unanimously reaffirmed its conviction and confidence in The Hartford's strategic business plan.