CORRECT(2/27): Allianz CEO: Good Upside For Hartford Invest

Allianz SE (AZ) Chief Executive Michael Diekmann Friday defended the insurer's $2.5 billion investment in a 23.7% stake in U.S. insurance and financial-services company Hartford Financial Services Group Inc. (HIG) last year.

"We see good upside for our investment," Diekmann told investors.

He said that "the timing of the investment doesn't look good," but noted that the entire U.S. insurance market "is getting repositioned," that the market capitalization lost by large U.S. players "leaves a lot of opportunities for those who survived the shakeout," and that Hartford "is one of the very strong operators."

Hartford's stock price has fallen some 84% since April but has more than tripled since its all-time low of $4.16 Nov. 21.

Hartford said Feb. 5 it intends to cut its quarterly dividend by 84% to $0.05 as it swung to a fourth-quarter loss on investment losses.

Hartford reported a fourth-quarter net loss of $806 million, or $2.71 a share, compared with year-earlier net profit of $595 million, or $1.88 a share.

The latest results included a $597 million write-down of goodwill in the corporate and annuity segments.

Company Web site: www.allianz.com

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]