Summary
This Form 8-K filing by The Hartford Financial Services Group, Inc. (HIG) on September 26, 2008, provides a disclosure regarding the company's exposure to Washington Mutual Inc. (WaMu) amidst increasing financial market turmoil. The filing details the aggregate amounts of debt and equity investment holdings in WaMu at GAAP amortized cost as of September 25, 2008. This disclosure is critical for investors to understand the company's direct and indirect financial exposures during a period of significant economic uncertainty. The information presented is particularly relevant given the precipitous decline of WaMu's financial standing and its eventual failure. Investors should note the specific amounts held in senior debt, subordinated debt, and preferred stock, as well as the absence of common stock holdings. Additionally, the filing quantifies the company's exposure through credit default swaps, offering a more comprehensive view of its derivative-related risks tied to WaMu.
Key Highlights
- 1The Hartford had $28 million in Senior Debt holdings in Washington Mutual Inc. (WaMu) as of September 25, 2008.
- 2The company held $68 million in Subordinated Debt investments in WaMu.
- 3Hartford's investment in WaMu's Preferred Stock amounted to $30 million.
- 4The Hartford reported no Common Stock holdings in WaMu.
- 5The company had an aggregate exposure of approximately $20 million to WaMu's senior debt through credit default swaps.
- 6These investment holdings represent the consolidated position, including amounts held by its indirect subsidiary, Hartford Life Insurance Company.
- 7The filing was made under Regulation FD to ensure timely and broad public dissemination of material information.