Philadelphia Financial Group has agreed to acquire all of the assets of Hartford Life Private Placement (HLPP), a subsidiary of the Hartford Financial Services Group, for $117.5m.

New Jersey-based HLPP provides insurance and wealth management services, administers corporate and bank-owned life insurance policies and runs institutionally owned group annuity contracts.

Upon closing, Philadelphia Financial will service the $35bn in private placement insurance business previously serviced by HLPP through an agreement with certain insurance subsidiaries of The Hartford Financial Services Group.

Philadelphia Financial expects to take all employees of HLPP, who will continue to work in New Jersey.

Philadelphia Financial CEO John Hillman said that this acquisition significantly extends their market leading ultra-high net worth private placement franchise into the bank and corporate owned arena and provides a long-term relationship with The Hartford.

The transaction, which is subject to regulatory approvals and closing conditions, is expected to close in 2012.

Evercore Partners acted as financial advisor to Philadelphia Financial in this transaction.