The Hartford announced today that the company has signed a definitive agreement to sell its subsidiary, Hartford Life International Limited (HLIL), in a cash transaction to Columbia Insurance Company, a Berkshire Hathaway company, for approximately $285 million.
The purchase price is roughly equal to HLL’s statutory surplus (calculated under Irish accounting standards) as of March 31, 2013, and is expected to reduce U.S. statutory surplus by approximately $150 million in the second quarter of 2013.
The transaction is expected to result in a net loss of approximately $110 million, after-tax (calculated under U.S. GAAP), in the second quarter of 2013.
In March last year, The Hartford, said it would shut down its annuity business and pursue a sale or other options for its individual life insurance, retirement plan and broker/dealer businesses.
The Hartford announced the sale of its individual life businesses to Prudential Financial for over $600 million six months later.
In a statement today, Christopher J. Swift, executive vice president and chief financial officer for The Hartford, said the company has made significant progress reducing the size and risk legacy variable annuity blocks.
The agreement is subject to customary closing conditions and regulatory approvals, and is expected to close by the end of the year.
Source: The Hartford