Summary
The Hartford Financial Services Group, Inc. (HIG) filed this 8-K on January 2, 2013, to report the completion of the sale of its Retirement Plans business and its Individual Life insurance business. The Retirement Plans business was sold to Massachusetts Mutual Life Insurance Company for $355 million (net of adjustments), and the Individual Life business was sold to The Prudential Insurance Company of America for $615 million. These transactions represent a significant step in the company's strategic transformation to become a more focused and efficient organization. The company expects these divestitures to result in an estimated net statutory capital benefit of approximately $2.2 billion, enhancing its financial flexibility. While the transactions are not expected to have a material impact on GAAP net income, there were anticipated modest realized capital losses in Q4 2012 and modest gains in Q1 2013 due to closing timing. Pro forma financial statements are provided to illustrate the impact of these sales on historical results.
Key Highlights
- 1Completion of sale of Retirement Plans business to Massachusetts Mutual Life Insurance Company for $355 million cash.
- 2Completion of sale of Individual Life insurance business to The Prudential Insurance Company of America for $615 million cash.
- 3These sales are part of The Hartford's strategic transformation to a more focused company.
- 4Estimated net statutory capital benefit of approximately $2.2 billion is expected from these transactions.
- 5The company anticipates modest realized capital losses in Q4 2012 and modest gains in Q1 2013 due to transaction timing.
- 6Pro forma financial statements are included to show the impact of these sales on historical operations and financial position.
- 7The transactions are expected to enhance financial flexibility and enable profitable growth.