The Hartford Agrees To Sell U.K. Variable Annuity Business To Berkshire Hathaway

Before you go, we thought you'd like these...
Before you go close icon

The Hartford Agrees To Sell U.K. Variable Annuity Business To Berkshire Hathaway

  • The Hartford to receive cash consideration of $285 million
  • U.K. variable annuity business had $1.75 billion in assets under management as of March 31, 2013

HARTFORD, Conn.--(BUSINESS WIRE)-- The Hartford has signed a definitive agreement to sell its subsidiary, Hartford Life International Limited (HLIL), in a cash transaction to Columbia Insurance Company, a Berkshire Hathaway company, for approximately $285 million. At closing, HLIL's sole asset will be its subsidiary, Hartford Life Limited (HLL), a Dublin-based company that sold variable annuities in the U.K. from 2005 to 2009.

"The Hartford has made significant progress reducing the size and risk of Talcott Resolution's legacy variable annuity blocks and the business unit is now self-sufficient from a capital perspective," said Christopher J. Swift, executive vice president and chief financial officer for The Hartford. "Selling the U.K. business is another meaningful step forward. We are pleased with the outcome of the competitive bidding process, which reflects our criteria of executing transactions on terms that are attractive to The Hartford."


The purchase price is roughly equal to HLL's statutory surplus (calculated under Irish accounting standards) as of March 31, 2013, and is expected to reduce U.S. statutory surplus by approximately $150 million in the second quarter of 2013. In addition, the transaction is expected to result in a net loss of approximately $110 million, after-tax (calculated under U.S. GAAP), in the second quarter of 2013.

The agreement, which is subject to customary closing conditions and regulatory approvals, is expected to close by the end of the year. The Hartford's financial advisor for this transaction is Deutsche Bank, and the company's legal advisor is Sidley Austin LLP.

ABOUT THE HARTFORD

With more than 200 years of expertise, The Hartford (NYS: HIG) is a leader in property and casualty insurance, group benefits and mutual funds. The company is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at www.thehartford.com.

HIG-F



The Hartford
Media:
Shannon Lapierre, 860-547-5624
shannon.lapierre@thehartford.com
or
David Collins, 860-547-2251
david.collins@thehartford.com
or
Investor:
Sabra Purtill, CFA, 860-547-8691
sabra.purtill@thehartford.com
or
Sean Rourke, 860-547-5688
sean.rourke@thehartford.com

KEYWORDS:   United Kingdom  United States  Europe  North America  Connecticut  Ireland

INDUSTRY KEYWORDS:

The article The Hartford Agrees To Sell U.K. Variable Annuity Business To Berkshire Hathaway originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners