Insurers make 2nd installment in 5-year financial aid package to Hartford

Aug. 2--Three insurance companies, crediting Hartford Mayor Luke Bronin and municipal officials for progress in turning around the city's finances, are making their second installment in a $50 million financial aid package.

The chief executive officers of the Hartford, The Travelers Cos. Inc. and Aetna announced the gift in March 2017, conditioning it on "being part of a comprehensive and sustainable solution for Hartford."

Alan Schnitzer, chairman and chief executive officer of Travelers, on Friday praised Bronin.

"We appreciate the progress made through Mayor Bronin's ongoing efforts and we have funded the second year of our commitment to support the city," he said. "We'll continue to work with the mayor and others to ensure we're on a path to a comprehensive and sustainable financial solution."

Matthew Sturdevant, spokesman for The Hartford, credited the city for its "very positive progress through a broad and balanced set of actions."

"However, we recognize a long-term solution will take additional time and work," he said. "We will continue to evaluate our subsequent donations on an annual basis contingent on the city's execution of a comprehensive and sustainable plan."

A spokesman for Aetna, which is a subsidiary of Woonsocket, R.I.-based CVS Health Corp., said the payment is in process and did not comment further.

The insurers are each providing $3.3 million a year for community institutions such as the Hartford Public Library. Combined, the three companies are donating $10 million a year for five years.

A spokesman for Bronin did not reply to a message seeking information about how Hartford officials intend to spend the money.

In May, city officials adopted a $573.3 million budget that increases spending by about $3.2 million, or 0.6 percent. It slightly increases spending on quality of life issues, focusing on initiatives to remove graffiti from city property, turn back rodent infestation and finance seasonal jobs in public works, particularly sanitation.

The city is in its second of a five-year financial plan intended to maintain balance, rebuild its rainy day fund and improve roads, bridges and other public works without borrowing.

Last year, the state intervened to bail out Hartford by agreeing to cover $550 million in debt payments and a one-time, $20 million subsidy to close its end-of-year budget gap.

Bronin raised the prospect of bankruptcy in 2017, saying Hartford would seek permission to take the dire action if the city didn't get the state aid it needed.

Mark T. Bertolini, then CEO of Aetna, The Hartford CEO Christopher J. Swift and Schnitzer said in 2017 they were committed to making the "city healthy again and are vested in its success."

The gift is conditioned on "being part of a comprehensive and sustainable solution for Hartford," the executives said.

Hartford received the first installment in June 2018. Even then, Schnitzer said he had seen enough progress to fund the first year.

Stephen Singer can be reached at [email protected].

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