The Hartford sells UK property and casualty subsidiaries to Catalina

The Hartford, a property and casualty insurer, has agreed to sell its UK property and casualty run-off subsidiaries, Downlands Liability Management (DLM) and Hartford Financial Products International (HFPI), to Bermuda-based re/insurance consolidator, Catalina.

The process is expected to be complete by the end of 2016, and the company said that it does not expect the transaction to result in a material loss or gain, net tax effects, on The Hartford’s financial results.

“We are pleased to announce this agreement, which is a good opportunity to permanently transfer our property and casualty run-off exposures in the UK,” said Beth Bombara, chief financial officer of The Hartford.

Following the transaction, The Hartford is expected to complete its task to combine all of its run-off UK insurance business into a single insurer, HFPI.

Chris Fagan, chairman and chief executive of Catalina, said: “HFPI is a large and well diversified business, the majority of which has been in run-off since 1993.

“It is managed by a professional and experienced team at DLM who will strengthen the breadth and diversity of Catalina’s UK business.”

All DLM staff will continue as employees of DLM and HFPI and DLM will remain headquartered in Worthing, England.