The Hartford has agreed to sell its individual life insurance unit to Prudential Financial, Inc., the companies announced.
The agreement is the final deal in The Hartford's plan to sell off portions of its business to sharpen the company's focus on property and casualty insurance, group benefits and mutual funds.
In the last few months, The Hartford agreed to sell Woodbury Financial Services, a broker-dealer, to AIG's Advisor Group and an individual annuities unit to Forethought Financial Group Inc. Last month it agreed to sell its retirement plans business to the Massachusetts Mutual Life Insurance Co.
Under the new agreement, Prudential will buy the life insurance unit for $615 million in cash. The sale is expected to close in 2013, subject to regulatory approvals.
The terms of The Hartford's existing life insurance contracts will remain the same, and policyholders will continue to receive uninterrupted service, the company said. After the sale, Prudential will receive premiums and will be responsible for paying claims and providing customer service and administration.
The Hartford will continue to sell new life insurance policies through the closing of the transaction with Prudential and during a transition period afterward. Employees of the company's individual life insurance business will be offered positions with Prudential.
After the sale is completed, Prudential will rank among the top five largest individual life insurance companies in the United States, in terms of new recurring premium sales.