The Hartford has found a buyer for its U.K. property/casualty runoff subsidiaries, capping a process that began in 1993.
Catalina Holdings UK Ltd. will buy the insurer’s Downlands Liability Management Ltd. (DLM) and Hartford Financial Products International Ltd. (HFPI).
Financial terms aren’t being disclosed. But plans call for closing the sale in the 2016 fourth quarter, pending regulatory approvals and other closing conditions. Also, the sale should not affect Hartford’s financial results in terms of material gain or loss, net of tax effects.
The Hartford noted in its sale announcement that the U.K. business has been largely in runoff since 1993. What is left includes U.S. asbestos and environmental liabilities, the bulk of which had been underwritten by Excess Insurance Company Ltd. and U.K. asbestos liabilities. As of March 31, DLM and HFPI had total assets of about $1 billion, undiscounted gross reserves of $686 million, undiscounted reserves net of reinsurance of $516 milion, and shareholders’ equity of $321 million, all on a U.S. GAAP basis.
The Hartford’s sale of its U.K. assets follows the successful completion of a Part VII transfer to combine all of its runoff U.K. insurance business into just one insurance company – HFPI.
Catlina Holdings UK Ltd. is a wholly owned subsidiary of Catlina Holdings (Bermuda) Ltd.
Source: The Hartford