The Hartford has completed the sale of its Japanese annuity subsidiary, Hartford Life Insurance KK (HLIKK), to ORIX Life Insurance, a subsidiary of ORIX Corporation for $963 million.
The amount is comprised of a purchase price of $895 million and an estimated positive purchase price adjustment of $68 million.
Christopher Swift, The Hartford’s chief executive officer, said: “We look forward to updating you on any additional capital management actions we may take as a result of this transaction, and expect any actions to be balanced consistent with our prior approach, including equity repurchase and debt repayment.
“Completing the Japan transaction is another significant milestone in The Hartford’s journey to focus on our property & casualty, group benefits and mutual funds businesses. This is an excellent transaction for shareholders that permanently reduces the risk profile of the company while also generating a significant capital benefit for the company.”
Including the purchase price adjustment and the impact of hedging, the company estimates that the transaction will result in a net statutory capital benefit of $1.4 billion, which will provide approximately $1 billion for potential incremental capital management actions.
“The Hartford’s capital flexibility and risk profile are substantially improved as a result of this transaction,” said The Hartford’s chief financial officer Beth Bombara. “We look forward to updating you on any additional capital management actions we may take as a result of this transaction, and expect any actions to be balanced consistent with our prior approach, including equity repurchase and debt repayment.”
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The Hartford, Asia-Pacific, North America, Christopher Swift, ORIX Corporation