The spin would split Hartford's property and casualty business from its life insurance unit.
"I would say that Hartford needs to do something drastic because the stock is the lowest valuation relative to book value of any major insurance company," said Paulson on a Feb. 8 earnings call. On that call, Hartford CEO McGee said the company had looked at a split, but cautioned that "there are significant challenges to making a split possible."
Hartford Financial Services shares rose over 6% in after-hours trading. The company's shares have risen over 20% in 2012 with a financial services rally and on increasing pressure by Paulson for the company to consider strategic alternatives like a split.
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