The Hartford Agrees To Sell U.K. Variable Annuity Business To Berkshire Hathaway
The Hartford has signed a definitive agreement to sell its subsidiary,
Hartford Life International Limited (HLIL), in a cash transaction to
Columbia Insurance Company, a Berkshire Hathaway company, for
approximately $285 million. At closing, HLIL’s sole asset will be its
subsidiary, Hartford Life Limited (HLL), a Dublin-based company that
sold variable annuities in the U.K. from 2005 to 2009.
“The Hartford has made significant progress reducing the size and risk
of Talcott Resolution’s legacy variable annuity blocks and the business
unit is now self-sufficient from a capital perspective,” said
Christopher J. Swift, executive vice president and chief financial
officer for The Hartford. “Selling the U.K. business is another
meaningful step forward. We are pleased with the outcome of the
competitive bidding process, which reflects our criteria of executing
transactions on terms that are attractive to The Hartford.”
The purchase price is roughly equal to HLL’s statutory surplus
(calculated under Irish accounting standards) as of March 31, 2013, and
is expected to reduce U.S. statutory surplus by approximately $150
million in the second quarter of 2013. In addition, the transaction is
expected to result in a net loss of approximately $110 million,
after-tax (calculated under U.S. GAAP), in the second quarter of 2013.
The agreement, which is subject to customary closing conditions and
regulatory approvals, is expected to close by the end of the year. The
Hartford's financial advisor for this transaction is Deutsche Bank, and
the company's legal advisor is Sidley Austin LLP.
ABOUT THE HARTFORD
With more than 200 years of expertise, The Hartford (NYSE:HIG) is a
leader in property and casualty insurance, group benefits and mutual
funds. The company is widely recognized for its service excellence,
sustainability practices, trust and integrity. More information on the
company and its financial performance is available at www.thehartford.com.
HIG-F
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