The
Hartford has completed the sale of Talcott Resolution, its run-off
life and annuity businesses, to a group of investors led by Cornell
Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global
Atlantic Financial Group, Pine Brook and J. Safra Group as of May 31,
2018.
“This completes our exit from the run-off life and annuity businesses
and significantly reduces our capital markets exposure,” said The
Hartford’s Chairman and CEO Christopher Swift. “We now have greater
financial flexibility and a business mix that will improve our ROE and
earnings growth profile over time.”
Total consideration to The Hartford is approximately $2.05 billion,
including cash paid by the buyers, a pre-closing cash dividend, debt
included as part of the sale and a 9.7 percent ownership stake in the
new company. In addition, The Hartford will retain Talcott Resolution
tax benefits with an estimated GAAP book value of approximately $700
million, which will be available for realization subject to the level
and timing of The Hartford’s taxable income. Total value of the sale is
$2.75 billion, including the total consideration and the carrying value
of the retained tax benefits.
Hartford Investment Management Company (HIMCO), The Hartford’s
investment management group, has a five-year contract to manage a
significant portion of Talcott Resolution’s investment portfolio. In
addition, The Hartford will provide to and be reimbursed by Talcott
Resolution for certain transition services for up to two years.
The new company will operate under the name Talcott Resolution. About
375 of The Hartford’s employees have joined the new company and will be
located in offices in Windsor, Connecticut, and Woodbury, Minnesota. “We
believe Talcott Resolution is well positioned for continued success with
an experienced and talented team with proven operational capabilities,
supported by an accomplished investor group,” said The Hartford’s Chief
Financial Officer Beth Bombara.
About The Hartford
The Hartford is a leader in property and casualty insurance, group
benefits and mutual funds. With more than 200 years of expertise, The
Hartford is widely recognized for its service excellence, sustainability
practices, trust and integrity. More information on the company and its
financial performance is available at https://www.thehartford.com.
Follow us on Twitter at www.twitter.com/TheHartford_PR.
The Hartford Financial Services Group, Inc., (NYSE: HIG) operates
through its subsidiaries under the brand name, The Hartford, and is
headquartered in Hartford, Conn. For additional details, please read The
Hartford’s legal notice.
HIG-F
Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of
1995. We caution investors that these forward-looking statements are not
guarantees of future performance, and actual results may differ
materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include those discussed in our 2017 Annual
Report on Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission. We
assume no obligation to update this release, which speaks as of the date
issued.
From time to time, The Hartford may use its website to disseminate
material company information. Financial and other important information
regarding The Hartford is routinely accessible through and posted on our
website at https://ir.thehartford.com.
In addition, you may automatically receive email alerts and other
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visiting the “Email Alerts” section at https://ir.thehartford.com.