The Hartford has agreed to sell its UK property & casualty run-off subsidiaries to Catalina Holdings UK.
The deal includes Hartford's subsidiaries Downlands Liability Management (DLM) and Hartford Financial Products International (HFPI).
The deal follows the successful completion of a Part VII transfer undertaken by The Hartford to aggregate all of its run-off UK insurance business into a single insurance company, HFPI.
As of March this year, DLM and HFPI include total assets of £712m, undiscounted gross reserves of £477m, undiscounted reserves net of reinsurance of £359m and shareholders’ equity of about £223m.
Subject to regulatory approvals and other customary closing conditions, the deal is expected to complete in the fourth quarter of this year.
The Hartford CFO Beth Bombara said: “We are pleased to announce this agreement, which is a good opportunity to permanently transfer our P&C run-off exposures in the UK.”
“Catalina is a well-respected organization that specializes in the consolidation of insurance and reinsurance liabilities in runoff.”
Catalina chairman and chief executive Chris Fagan said: “HFPI is a large and well diversified business, the majority of which has been in run-off since 1993.
“It is managed by a professional and experienced team at DLM who will strengthen the breadth and diversity of Catalina’s UK business.”
The Hartford provides property and casualty insurance, group benefits and mutual funds services to its customers.
Catalina Holdings UK is a wholly owned subsidiary of Catalina Holdings (Bermuda), which acquires and manages non-life insurance/reinsurance firms in run-off.
Image: The Hartford chief financial officer Beth Bombara. Photo: courtesy of The Hartford Financial Services Group, Inc.