Summary
The Hartford Financial Services Group, Inc. (HIG) has announced the completion of the sale of its run-off life and annuity insurance businesses, comprised of Hartford Life, Inc. and its subsidiaries, to Hopmeadow Acquisition, Inc. and its affiliated entities, backed by a group of investors led by Cornell Capital LLC. This strategic divestiture marks a significant step in the company's strategic repositioning, allowing it to focus on its core property and casualty insurance and group benefits businesses. The total consideration for the transaction amounts to $2.05 billion. This includes $1.443 billion in cash, $300 million in pre-closing cash dividends, $143 million in assumed long-term debt, and equity interests valued at $164 million in the buyer entities. Additionally, The Hartford will retain tax benefits estimated at $700 million, subject to future taxable income. The company has previously reported these businesses as discontinued operations, and no pro forma financial information is included in this filing, with detailed financial data available in prior SEC filings.
Key Highlights
- 1Completion of the sale of Hartford Life, Inc. and its subsidiaries (run-off life and annuity businesses).
- 2The sale was completed to Hopmeadow Acquisition, Inc. and affiliated entities, funded by investors led by Cornell Capital LLC.
- 3Total transaction consideration is $2.05 billion, comprising cash, dividends, assumed debt, and equity interests in the buyer.
- 4The Hartford will retain tax benefits valued at approximately $700 million.
- 5The divestiture aligns with The Hartford's strategy to focus on its core property and casualty and group benefits operations.
- 6The run-off businesses were previously reported as discontinued operations in prior SEC filings.
- 7Shareholders' equity will be reduced by the accumulated other comprehensive income (AOCI) of the divested businesses.