The Hartford to sell mutual funds business in deal valued at up to $1.9B

Property and casualty insurer The Hartford has agreed to sell its mutual funds business to investment manager Wellington Management in a deal valued at up to $1.9 billion, the companies announced Wednesday.

The business, Hartford Funds, is based in Wayne, Pennsylvania, employs about 400 people and manages approximately $160 billion in assets through mutual funds, exchange-traded funds and other investment products, according to the companies and a spokesman.

Under the agreement, The Hartford will receive $300 million in cash at closing, along with additional payments tied to the future performance of the combined business over a seven-year period. The companies estimate those payments have a current value of about $1.9 billion. 

The deal is expected to close in the first quarter of 2027, subject to regulatory and fund approvals.

The companies said the deal builds on a partnership between The Hartford and Wellington that dates back more than four decades. Wellington currently serves as sub-adviser for about 83% of Hartford Funds’ assets under management.

Following the acquisition, Hartford Funds will be integrated into Wellington’s U.S. Wealth business and operate under the Wellington brand.