Hartford’s Out of Life Insurance with Sale of Life, Annuity Unit

Hartford has entered into an agreement to sell its run-off life and annuity businesses, Talcott Resolution, to a group of investors led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J. Safra Group. The deal is valued at $2.05B.

Also, the investor group will form a new company that will purchase Hartford Life, Inc. (HLI), the holding company for the Talcott Resolution operating subsidiaries. The Hartford will receive a 9.7% ownership interest, valued at $164 million, in the new company. The sale is anticipated to close in the first half of 2018, subject to regulatory approval and other closing conditions.

As part of the transaction, 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, Connecticut, and Woodbury, Minnesota.

Bottom Line: the insurer will continue focusing on P&C, group benefits and mutual funds .

PS. “Some call me the mayor and I love it.” Play.