Hartford Continues to Divest Life Insurance Business with the Completion of Japanese Annuity Subsidiary Sale

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HIG
Hartford Financial Services Group

Hartford Financial Services Group (NYSE:HIG) completed the sale of its Japanese annuity subsidiary, Hartford Life Insurance K.K. (HLIKK), to ORIX Life Insurance Corporation for $963 million on July 1. The sale is a part of Hartford’s strategy and efforts to restructure its businesses in order to focus on property and casualty insurance, group insurance and mutual funds.

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As a result of this transaction, the company estimates a net statutory capital benefit of $1.4 billion, which will provide approximately $1 billion for potential incremental capital management actions. The company is confident that its capital flexibility and risk profile will substantially improve after the transaction. [1]

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In 2012 Hartford sold its individual annuities new business capabilities to Forethought Financial Group, its broker-dealer business Woodbury Financial Services to AIG (NYSE:AIG), its retirement plan business to MassMutual and its individual life insurance business to Prudential Financial (NYSE:PRU).  Hartford continues its efforts to focus on the P&C business, which accounted for about  70% of the company’s revenues in 2013. Hartford held about a 2% market share in the P&C market in the U.S. in 2013 in terms of premiums earned. [2]

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Notes:
  1. ref:1 []
  2. NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS PROPERTY AND CASUALTY INSURANCE INDUSTRY 2013 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM []