The Hartford [profile] just sealed a deal to sell off one of its non-mutual fund businesses. Yesterday the Hartford, Connecticut-based insurance company unveiled an agreement to send its "individual annuity new business capabilities" to Houston-based Forethought.
The move comes a month after the Hartford revealed plans to split off most of its business lines while refocusing on its mutual fund business, along with its group benefit and property and casualty units.
Company Press Release
The Hartford Signs Agreement To Sell Individual Annuity New Business Capabilities
April 26, 2012
Forethought Financial Group, Inc. to purchase product, distribution and marketing arm of The Hartford’s U.S. annuity operation
Hartford, Conn., April 26, 2012 – The Hartford has signed an agreement with Forethought, a Houston-based privately held diversified financial services company, under which Forethought will purchase The Hartford’s Individual Annuity new business capabilities, consisting of the product management, distribution and marketing units, as well as the suite of products currently being sold. The terms of the agreement were not disclosed, but are not considered material to The Hartford’s operations or financial results.
“We are pleased to announce an agreement with Forethought, an organization of proven integrity and growing suite of high-value products,” said David N. Levenson, President of The Hartford’s Wealth Management division. “Over the last 12 months, our Individual Annuity team has done a tremendous job rebuilding our market presence through differentiated products and best-in-class distribution. Building on this track record, I am confident the business will thrive under Forethought’s ownership.”
The majority of the current employees that support The Hartford’s Individual Annuity new business capabilities will be offered positions with Forethought. As part of the agreement, The Hartford will continue to write new annuity products during a transition period and Forethought will assume all expenses and risk for these sales through a reinsurance arrangement. The agreement does not include The Hartford’s in-force annuity book of business.
“Forethought is excited to expand further into the annuity business, given the growing demand for income products in retirement and the demographic trends unfolding in the U.S.,” said John A. Graf, Chairman, President, and Chief Executive Officer of Forethought. “Being able to acquire a team of top-tier annuity professionals from The Hartford will allow us to capitalize on this opportunity at an accelerated pace.”
About The Hartford
The Hartford Financial Services Group Inc. (NYSE: HIG) is a leading provider of insurance and wealth management services for millions of consumers and businesses worldwide. The Hartford is consistently recognized for its superior service, its sustainability efforts and as one of the world's most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.
About Forethought Financial Group, Inc.
Forethought Financial Group, Inc., with offices in Houston, Indianapolis and Batesville, Ind., is a diversified financial services company providing insurance and financial products across the US for those planning for retirement and end-of-life needs. Forethought has served more than two million policyholders and has $4.6 billion of inforce life insurance protection. With $5.1 billion in assets and more than $1 billion in annual revenue, Forethought has built its reputation by providing quality products, service and reliability for more than 25 years.
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 Quarterly Reports on Form 10-Q, our 2011 Annual Report on Form 10-K 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.