May 25, 2018

CT regulator assesses The Hartford's $2.7B run-off sale

PHOTO | Contributed
PHOTO | Contributed
The Hartford's headquarters.

A Connecticut Department of Insurance hearing officer overseeing the approximately $2.7 billion sale of The Hartford's run-off life and annuity business -- Talcott Resolution -- recommended Thursday that the agency's commissioner approve it.

The recommendation follows a recent public hearing on the deal, which was announced in December, and means that the CID officer determined, among other things, that the sale would not substantially lessen insurance competition in the state and that the deal isn't unfair to policyholders.

The Talcott Resolution buyers include investors led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J. Safra Group.

The deal includes various entities, including Hartford Life Insurance Co., Hartford Life and Annuity Insurance Co., Hartford International Life Reassurance Corp. and American Maturity Life Insurance Co., which will be headquartered in Windsor.

The domestic insurers will remain headquartered in Connecticut and maintain current staffing levels of approximately 315 Connecticut employees for the next four years, according to CID.

When the transaction is complete, The Hartford will still have its core property casualty, group benefits and mutual funds businesses.

Correction: This story originally gave a $3 billion deal value for the sale of the Talcott Resolution. That number was accurate as of December, and included about $950 million worth of tax benefits. However, the federal tax cuts reduced the value of the tax benefits, executives disclosed during The Hartford's 2017 earnings call, which lowered the total value of the deal to approximately $2.7 billion.

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