Shares in The Hartford rose by more than 50% Monday, as the embattled insurer issued more details about its capital position.
The Hartford Financial Services Group has been hit hard by the crisis in the financial markets, taking a more than two billion dollar loss in the third quarter. In October it raised capital from German insurer Allianz, but after a long slide its shares plunged more than fifty percent last week.
Analysts said they were concerned about the lack of clarity provided by top executives on an earnings conference call, especially on whether the insurer has enough liquidity to handle the downturn in the credit markets. The Hartford issued a statement Monday saying its capital position should be sufficient to retain its double A ratings level, even if there is a further deterioration in the overall index.
The insurer did suffer a ratings downgrade as Moody’s Investors Service cut the senior unsecured debt to A3. Despite that, The Hartford’s shares climbed almost six dollars to $16.28 at the close.