On the heels of receiving $3.4 billion through the U.S. Treasury’s TARP program, Hartford Financial Services Group is ensuring stakeholders that it will have a viable future by making a “return to our historical strengths as a U.S.-centric insurance company.”

Ramani Ayer

In a letter to stakeholders, Hartford Chairman and CEO Ramani Ayer addressed the “great deal of public speculation” about the company and its future ,ven recent losses and the inflow of federal aid.

“The Hartford’s recent overall financial performance has been disappointing and the difficult economic environment has placed significant pressures on some of our businesses,” Ayer acknowledged in the letter. “While many of our underlying operations are performing well, The Hartford was more affected by the market volatility than some of our peers, given the issues in our investment portfolio and the size of our variable annuities businesses.”

In 2008, the Hartford lost more than $2.7 billion and has lost $1.21 billion in the first quarter of this year.

Ayer said the company’s board and senior management have been engaged in an “in-depth evaluation of The Hartford’s business model and strategy, with the goals of building shareholder value, reducing risk and preserving capital.”

In addition to the analysis, Ayer said the company has taken several actions, including securing a $2.5 billion investment from Allianz, taking significant steps to restructure its global annuity business, and commencing the unwinding of higher-risk exposures in its investment portfolio.

Despite published reports that the company might sell its property-casualty and life insurance arms, Ayer dispelled those rumors.

“We have concluded that the best way to deliver long-term value to our shareholders is to return to our historical strengths as a U.S.-centric insurance company, with a focus on our strong portfolio of protection businesses, primarily property and casualty, group benefits and life insurance,” Ayer said.

He said The Hartford would also continue to operate “strong wealth management and retirement businesses, including mutual funds, retirement plans and a restructured annuities business,” and as a result, “we will move forward with both property and casualty and life businesses.”

Calling it “an incredibly challenging period in our company’s history,” Ayer said. The Hartford has grown its new business premiums in several property-casualty lines and group benefits, and the insurer’s retirement plans and mutual funds businesses “have delivered solid deposits in this difficult environment.”