Property and casualty insurer The Hartford has completed the sale of its run-off life and annuity businesses for $2 billion while retaining an estimated $700 million in tax benefits.
The Hartford announced Thursday it notched the sale of Talcott Resolution to 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.
Under the deal, about 375 of The Hartford’s employees have joined the new company in offices in Windsor, and Woodbury, Minn. The new company will operate under Talcott Resolution.
The Hartford retains a 9.7 percent ownership interest in the new company as part of the mostly cash sale, which includes debt.
“This completes our exit from the run-off life and annuity businesses and significantly reduces our capital markets exposure,” said Christopher Swift, The Hartford’s chairman and CEO. “We now have greater financial flexibility and a business mix that will improve our ROE (return on equity) and earnings growth profile over time.”
The Hartford’s investment management team still maintains a five-year pact to manage a large portion of Talcott’s investment portfolio.
