The Hartford completes Talcott sale
The Hartford's run-off life and annuity businesses Talcott Resolution has been acquired by an investor group, and will now operate as an independent stand-alone insurance company headquartered in Windsor, Connecticut, with an office in Woodbury, Minnesota.
In December, 2017, The Hartford entered into a definitive agreement to sell Talcott for a total value of around $3 billion. The buyer consortium is led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J Safra Group.
As part of the transaction, approximately 375 employees of The Hartford are now employees of Talcott Resolution. After closing, the company expects to reinsure approximately $9 billion of its fixed annuity, payout annuity and structured settlement businesses with a subsidiary of Global Atlantic Financial Group.
Although Talcott Resolution is no longer affiliated with The Hartford Financial Services Group, or any of its subsidiaries, The Hartford will retain a 9.7 percent ownership interest in Talcott Resolution, according to the statement.
"We are pleased to have successfully completed this acquisition," said Richard Carbone, chairman and independent director of Talcott Resolution. "In addition to continuing to manage the Company's existing businesses, we expect that over time Talcott Resolution will explore opportunities to acquire legacy blocks from other insurers, enter into reinsurance agreements and evaluate the potential to be a service provider for the life and annuity insurance industry."
Pete Sannizzaro, president and chief operating officer of Talcott Resolution, added: "Working in partnership with the investor group, we are excited about the opportunity to run and grow our platform of nearly $90 billion in assets and more than 700,000 contract holders. Together we will maintain our reputation for high quality risk management, continue to honour our obligations and operate with integrity."
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