Hartford Financial Services Group has agreed to divest its Talcott Resolution business in a transaction valued at $2.05bn, as part of its strategy to exit from the life and annuity business.

Talcott Resolution, a run-off life and annuity businesses of Hartford, will be acquired by a group of investors led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J. Safra Group.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

As per the agreement, the investor group will establish a new company that will purchase Hartford Life, the holding company for the Talcott Resolution operating subsidiaries, for a net payment of $1.44bn in cash.

Additionally, the Hartford will get a 9.7% ownership interest, valued at $164m, in the new company. The Hartford also expects to receive $300m in a pre-closing dividend from Talcott Resolution, subject to regulatory approval.

The Hartford chairman and CEO Christopher Swift said: “I am pleased to announce that we have reached an agreement to sell Talcott Resolution for total value to shareholders of approximately $3bn, including the carrying value of retained tax benefits.

“After a thorough and robust process, we concluded that this transaction is the 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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In addition, we will receive an equity interest in the acquiring company which will enable us to participate in Talcott Resolution’s continued success. We also expect the sale will improve our future ROE and earnings growth profile and enhance the company’s financial flexibility.”

The sale is likely to be completed during the first half of 2018, pending receipt of regulatory approval and other closing conditions.