We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (16,884)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (625)
  • Sheryl's Blogs (178)
  • Wink's Articles (242)
  • Wink's Blogs (225)
  • Wink's Press Releases (93)
  • Blog Archives

  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • Hartford to sell ‘run-off’ life insurance business

    December 5, 2017 by Leslie Scism

    The Hartford Financial Services Group Inc. said Monday it will sell an annuities operation that it has been winding down since 2012 to a group of investors, helping close the door on a painful chapter in the 207-year history of Hartford.

    The Connecticut-based insurer created the business, Talcott Resolution, several years after the 2008-09 financial crisis to house a business that had made it one of the hardest-hit U.S. life insurers during the market’s steep slide. As a “run-off” business, Talcott services existing insurance contracts but doesn’t sell new products.

    Hartford said it will receive total consideration of about $2.05 billion, which includes $1.4 billion in cash, a 9.7% stake in the new company, transferred debt and a pre-closing dividend. Hartford expects to book around a $3.2 billion after-tax net loss in the fourth quarter because of the deal’s structure.

    The investors buying Talcott include Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group, Hartford said.

    At the heart of Talcott is a retirement-savings product called a variable annuity. Hartford had helped turn the product into an industrywide hot seller in the early to mid 2000s with innovative income-stream guarantees. Variable annuities are a tax-advantaged form of investing in stock and bond funds. If the funds perform poorly, the guarantees kick in, sometimes providing lifetime income.

    Hartford had so many guarantees on its books when markets slid in 2008 that it had to take $3.4 billion in U.S. government aid to help meet regulatory requirements for backing up its obligations to contract holders. It was one of just three U.S. insurers to take the federal assistance; all have fully repaid the government.

    Hartford quit selling the annuities in 2012 after retooling the product to seek to make it less risky to the insurer, while still attractive to consumers. At the time, it decided to focus more heavily on other operations, including its property-casualty, group-benefits and mutual-funds businesses.

    Other insurers also pulled out of the variable-annuities market after the crisis. Those seeking buyers found them scarce because of the complexities of the guarantees and the high cost of running financial-hedging programs. In 2012, Sun Life Financial Inc., a Canadian insurer, struck one of the industry’s first deals to offload a large volume of the contracts, in a $1.35 billion pact with a company with ties to Guggenheim Partners LLC.

    As of Sept. 30, Talcott had more than $40 billion of variable-annuity contracts on its books, and more than $7 billion of other types of annuities, according to Hartford’s financial filings.

    Hartford Chief Executive Christopher Swift has said the insurer wasn’t rushing to sell Talcott because it produces profits, but it would dispose of the unit at the right price. For the third quarter, Hartford said the unit had “core earnings” of $83 million, out of the company’s total core earnings of $222 million.

    Since the 2008 financial crisis, Hartford has been continuing to reshape its operations. In October, it agreed to pay $1.45 billion to health insurer Aetna Inc. for a unit that provides life-, disability-income and other insurance products to employers’ benefits programs in the U.S.

    Hartford is also a leading seller of car and home insurance to individuals, and workers’ compensation to businesses.

    About 400 Hartford employees will become employees of the new company as part of Talcott sale, Hartford said. Hartford expects the deal to close in the first half of next year, subject to regulatory approval.

    Hartford shares, up 21% this year, rose 4.3% premarket Monday.

    Write to Leslie Scism at leslie.scism@wsj.com and Cara Lombardo at cara.lombardo@wsj.com

    Originally Posted at MarketWatch on December 4, 2017 by Leslie Scism.

    Categories: Industry Articles
    currency