The Hartford Financial Services Group Inc. is selling its stake in a Brazilian life insurer, tightening its focus on domestic operations, authorities said.
The Hartford agreed to sell its 50-percent stake in Icatu Hartford Seguros back to joint venture partner Icatu Holding Co. The Hartford’s Hartford Life Insurance Co. unit acquired half of Icatu Hartford in 1996.
Terms of the deal weren’t disclosed. But in documents filed with the Securities and Exchange Commission, The Hartford said that it will record a fourth-quarter after-tax impairment of about $80 million to $85 million against the value of its securities in Icatu Hartford.
Hartford Life spokesman Robert DeMallie said that The Hartford chose to sell its stake in Icatu Hartford, which markets various life insurance products, as part of its “overall strategy to become a more U.S.-centric company.”
During the past year, The Hartford has suffered heavy investment losses and an ailing variable annuity business, forcing the company to accept $3.4 billion in government bailout funds. A year ago, it received a $2.5 billion capital infusion from German insurer Allianz SE.
Last spring, The Hartford suspended variable annuity sales in Japan and the United Kingdom, and tabled plans to launch sales in Germany.
