The Hartford Financial Services Group Inc. said on Tuesday that it is re-entering the structured settlement annuity market as part of a broader strategy to expand its annuity business, The Associated Press reports.
The company’s Hartford Life Insurance Co. unit is issuing a structured settlement fixed annuity that provides tax-free payouts to people who receive settlements related to a workers’ compensation or personal injury claim. The periodic payments deliver regular income.
The Hartford exited the structured settlement annuity business in October 2009.
That market “is a growth opportunity for us, and represents the next step in our re-emergence in annuities,” said Rob Arena, head of annuities for The Hartford’s Wealth Management unit.
The Harford-based insurer also offers medical underwriting for structured settlements. Because structured settlement recipients sometimes have accident-related injuries that can reduce their life expectancy, medical underwriting can potentially increase their periodic payments.
At the end of June, The Hartford had $7.6 billion in assets under management related to structured settlement annuities, from annuity contracts that preceded the company’s October 2009 temporary exit from that market. The company had $91.3 billion in total annuity assets under management.
