December 4, 2017

The Hartford agrees to $3B life/annuity business sale

PHOTO | Contributed
PHOTO | Contributed
The Hartford's headquarters.

Property and casualty insurer The Hartford said Monday it will sell Talcott Resolution, its run-off life and annuity businesses, for $2 billion while retaining $950 million in tax benefits.

The purchasers are a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. In addition to the mostly cash sale, which includes debt, The Hartford retains a 9.7 percent ownership interest in the acquiring company.

As part of the deal, about 400 Hartford employees will become employees of the new company and will be located at offices currently owned or leased by The Hartford in Windsor, and Woodbury, Minn.

The Hartford's Chairman and CEO Christopher Swift called the deal the company's "best path forward.

"It will complete our exit from the run-off life and annuity businesses and strengthen our focus on growing our market-leading property and casualty, group benefits and mutual funds businesses," he said.

The sale also is expected to improve future the insurer's return on equity and earnings growth profile and make the company more nimble financially, Swift said.

Global Atlantic Financial Group also said it is re-insuring through a subsidiary approximately $9 billion of fixed annuities and other spread‐based reserves following the sale.

The closing is expected in the first half of 2018, subject to regulatory approval.

Free E-Newsletters

Sign up now for our daily and weekly
e-newsletters! Click Here

Today's Poll Has George Jepsen been a good attorney general for Connecticut?<>
Most Popular on Facebook
Copyright 2017 New England Business Media