US based The Prudential Insurance Company of America, a primary subsidiary of Prudential Financial, has inked a definitive agreement to acquire The Hartford’s individual life insurance business through a reinsurance transaction, valued at a cash consideration of $615m.

As part of the agreement, Prudential will receive nearly $7bn of general account investment assets and corresponding reserves, and rights and obligations with respect to almost $5bn in separate account assets and related liabilities, based on statutory balance sheet values as of 30 June 2012.

After obtaining necessary regulatory approval and satisfying customary closing conditions, the transaction is expected to complete in early 2013.

On completion of the transaction, the terms of Hartford’s existing life insurance contracts will remain unchanged, and its issuing companies will continue to market new life insurance products and riders.

The deal will enable Prudential to enhance its footprint in the life insurance sector, while providing necessary capital to Hartford to strengthen its presence in property and casualty, group benefits and mutual funds businesses.

Prudential Financial chairman and chief executive officer John Strangfeld said, "The integration of Prudential’s Individual Life Insurance business and that of The Hartford will create an organization with greater scale, enhanced product offerings and expanded distribution expertise to meet the life insurance needs of Americans and their families."

Prudential’s individual life insurance chief executive officer Jim Avery will retire following the deal completion and will be succeeded by vice president and chief actuary Kent Sluyter.

Having joined Prudential in 1981, Sluyter has worked across the actuarial, operations, systems, risk management and marketing functions of Prudential’s individual life insurance business.

Prior to serving as chief actuary, he was responsible for the company’s individual life insurance underwriting, claims and special investigations units.

Prudential Financial trades in the US, Asia, Europe, and Latin America and offers life insurance, annuities, retirement-related services, mutual funds and investment management products.