Hartford Seeks Bids for Property Unit: Report

Hartford Financial(HIG Quote) is seeking bids from rivals including Travelers(TRV Quote) for its flagship property insurance business, Bloomberg reports, citing people familiar with the matter.

The insurer has solicited offers for the profitable property and casualty unit in recent weeks. Travelers and Ace Ltd.(ACE Quote) may show interest, the people said, and Allianz SE (AZM Quote) already has a $2.5 billion stake in Hartford. Citigroup estimates the unit is worth $4 billion to $8 billion, Bloomberg reports.

Talks earlier this year to sell parts of the life operations to Canada's Sun Life Financial(SLF Quote) ended without a deal, the people said. Hartford continues to seek other buyers for the parts of its life division that sell group benefits, the news agency reports.

Spokespeople from Hartford, Travelers, Allianz and Ace declined to comment for Bloomberg.

Hartford's property and casualty unit and its life insurance unit had their credit ratings cut late last month. Moody's noted that the property and casualty business was strong and its stand alone profile was solid, but the potential that it might have to provide support for the life insurance operations could cause further downgrades.

Hartford has received holding company status as a lender, therefore making it eligible for funding from the U.S. government's Troubled Asset Relief Program.

The Treasury Department has used the TARP to shore up banks but has yet to extend it to insurers other than American International Group(AIG Quote), Bloomberg reports.