Also announces:
-- Preliminary third-quarter results;
-- Reduced dividend; and
-- New chief investment officer

The Hartford Financial Services Group, Inc. (NYSE: HIG) today announced a binding agreement with Allianz SE, which provides for a $2.5 billion capital investment.

“We are pleased that Allianz, one of the world’s leading insurers and financial services providers, will make such a significant investment in The Hartford,” said The Hartford’s chairman and chief executive officer Ramani Ayer. “We are taking decisive action to ensure that The Hartford remains well capitalized for long-term success. This investment strengthens our ability to weather volatile markets and continue to invest and vigorously compete in our businesses. We are dedicated to honoring our commitments to customers.”

“We believe in the fundamental strength of the U.S. economy and its insurance industry and respect The Hartford as a great insurance brand,” said Michael Diekmann, chairman of the Board of Management and chief executive officer of Allianz SE. “We anticipate a favourable return on our investment."

Terms of the Investment

Allianz will purchase, at $31 per share, $750 million of preferred shares convertible to common stock after receipt of applicable approvals, and $1.75 billion of 10% junior subordinated debentures. The debentures are callable by The Hartford at par beginning ten years after issuance.

Allianz SE will also receive warrants which entitle it to purchase $1.75 billion of common stock at an exercise price of $25.32 per share, subject to shareholder approvals. The warrants expire in seven years.

About The Hartford

The Hartford, a Fortune 100 company, is one of the nation's largest financial services companies, with 2007 revenues of $25.9 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, the United Kingdom, Canada, Brazil and Ireland. The Hartford's Internet address is www.thehartford.com.