The Hartford Financial Services Group said late Tuesday that it has agreed to sell its retirement plans business to life insurer MassMutual for $400 million.
The sale, which is structured as a reinsurance deal, is expected to close by the end of 2012, subject to regulatory approvals and satisfying other customary closing conditions.
"The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy," said The Hartford's Chairman, President and CEO Liam E. McGee. "With The Hartford's sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value."
The Hartford's retirement plans business is primarily a defined contribution business with $54.9 billion in assets under management as of June 30, 2012. The business serves more than 33,000 plans with more than 1.5 million participants.
As a result of the agreement, The Hartford's retirement plans employees will become part of MassMutual's Retirement Services Division. The Hartford will continue to sell new retirement plans during a transition period, and MassMutual will assume all expenses and risk for these sales through a reinsurance agreement.
Between now and the close of the transaction, there are no planned changes with respect to the day-to-day interactions or processes between The Hartford and its Retirement Plans' distribution partners, plan sponsors and customers.