Hartford Financial Services Group Inc. said today the Connecticut Insurance Department has approved changes to accounting treatments on its life insurance books that adds $987 million to the Hartford insurer’s capital base.
The Hartford, in a filing today with federal securities regulators, said the state insurance department granted it clearance for “two permitted practices” related to the financial treatment of its variable annuities and deferred-tax assets. The company said its capitalization levels as of Dec. 31 reflect the approval.
Insurance Commissioner Thomas Sullivan is a former executive of The Hartford.
The Hartford, which last October received a $2.5 billion capital infusion from German insurer Allianz SE, has been under pressure to boost its capital in the wake of shrinking investments tied to the Wall Street meltdown and financial uncertainty due to the weakened global economy.
The insurer also has purchased a small Florida bank to qualify for a slice of the U.S. Treasury financial bailout package.
 At 11 a.m., The Hartford traded at $12.33, down $1.25, or 9.2 percent.
