The Hartford Closes Sale Of Talcott Resolution
May 31 2018 - 12:30PM
Business Wire
The Hartford has completed the sale of Talcott Resolution, its
run-off life and annuity businesses, to a group of investors led by
Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP,
Global Atlantic Financial Group, Pine Brook and J. Safra Group as
of May 31, 2018.
“This completes our exit from the run-off life and annuity
businesses and significantly reduces our capital markets exposure,”
said The Hartford’s Chairman and CEO Christopher Swift. “We now
have greater financial flexibility and a business mix that will
improve our ROE and earnings growth profile over time.”
Total consideration to The Hartford is approximately $2.05
billion, including cash paid by the buyers, a pre-closing cash
dividend, debt included as part of the sale and a 9.7 percent
ownership stake in the new company. In addition, The Hartford will
retain Talcott Resolution tax benefits with an estimated GAAP book
value of approximately $700 million, which will be available for
realization subject to the level and timing of The Hartford’s
taxable income. Total value of the sale is $2.75 billion, including
the total consideration and the carrying value of the retained tax
benefits.
Hartford Investment Management Company (HIMCO), The Hartford’s
investment management group, has a five-year contract to manage a
significant portion of Talcott Resolution’s investment portfolio.
In addition, The Hartford will provide to and be reimbursed by
Talcott Resolution for certain transition services for up to two
years.
The new company will operate under the name Talcott Resolution.
About 375 of The Hartford’s employees have joined the new company
and will be located in offices in Windsor, Connecticut, and
Woodbury, Minnesota. “We believe Talcott Resolution is well
positioned for continued success with an experienced and talented
team with proven operational capabilities, supported by an
accomplished investor group,” said The Hartford’s Chief Financial
Officer Beth Bombara.
About The Hartford
The Hartford is a leader in property and casualty insurance,
group benefits and mutual funds. With more than 200 years of
expertise, The Hartford is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at https://www.thehartford.com. Follow us on Twitter
at www.twitter.com/TheHartford_PR.
The Hartford Financial Services Group, Inc., (NYSE: HIG)
operates through its subsidiaries under the brand name, The
Hartford, and is headquartered in Hartford, Conn. For additional
details, please read The Hartford’s legal notice.
HIG-F
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our 2017 Annual Report on
Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission.
We assume no obligation to update this release, which speaks as of
the date issued.
From time to time, The Hartford may use its website to
disseminate material company information. Financial and other
important information regarding The Hartford is routinely
accessible through and posted on our website at
https://ir.thehartford.com. In addition, you may automatically
receive email alerts and other information about The Hartford when
you enroll your email address by visiting the “Email Alerts”
section at https://ir.thehartford.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180531005938/en/
The HartfordMedia Contact:Michelle Loxton,
860-547-7413michelle.loxton@thehartford.comorInvestor
Contact:Sabra Purtill, CFA,
860-547-8691sabra.purtill@thehartford.com
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