Fed Allows Allianz SE To Retain Hartford Stake

Germany's Allianz SE (AZ) will be able to retain its interest in The Hartford Financial Services Group, Inc. (HIG) when The Hartford becomes a savings and loan company, the U.S. Federal Reserve said Wednesday.

Allianz owns 23.7% of Hartford's voting shares.

Hartford applied to become a savings and loan in November, on the date of the original deadline for banks to apply for government capital through the $700 billion Troubled Asset Relief Program. In applying to become a savings and loan, The Hartford announced plans to acquire the Florida-based Federal Trust Corp. (FDTR) for $10 million.

Federal Trust Corp. is the parent of one depository institution, Federal Trust, which controls deposits of $415 million. Federal Trust Corp. has total consolidated assets of approximately $602 million. Allianz said it has no plans to exercise a controlling influence over The Hartford and that its investment in the Federal Trust would be a passive one.

Allianz has total consolidated assets of approximately $1.4 trillion. It provides insurance, banking and asset management services in more than 70 countries.

The Hartford has total consolidated assets of $312 billion.

-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629; [e-mail]

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