Hartford Financial Services Group Inc. moved a step closer back to its core property-casualty and mutual-fund operations, agreeing to unload its Irish variable-annuities arm to billionaire investor Warren Buffett for about $285 million cash.
The Hartford said Thursday Columbia Insurance Co., a unit of Buffett’s primary investment vehicle, the Berkshire Hathaway Co., emerged as the winning bidder for Hartford Life International Ltd.
Based in Dublin, Ireland, Hartford Life International’s main unit sold variable annuities in the United Kingdom from 2005 to 2009, officials said. The U.K. variable annuity business had $1.75 billion in assets under management as of March 31, the insurer said.
“Selling the U.K. business is another meaningful step forward,” said The Hartford’s Chief Financial Officer Christopher J. Swift.
The transaction is expected to result in an after-tax net loss to The Stag of approximately $110 million in the second quarter.
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 the deal is Deutsche Bank. Legal advisor is Sidley Austin LLP.
