Columbia Insurance Company, a Berkshire Hathaway firm, has purchased Hartford Life International Limited (HLIL) in a transaction valued at approximately $285m.
Property and casualty insurance provider Hartford originally signed an agreement with Columbia Insurance in June this year, to divest its UK variable annuity business, as part of its strategy to streamline its operations.
HLIL’s sole asset is its subsidiary, Hartford Life Limited (HLL), a Dublin-based company that sold variable annuities in the UK from 2005 to 2009. As of 30 November 2013, HLL had $1.7bn in assets under management.
Hartford executive vice president and chief financial officer Christopher Swift had said, "The Hartford has made significant progress reducing the size and risk of Talcott Resolution’s legacy variable annuity blocks and the business unit is now self-sufficient from a capital perspective.
"Selling the U.K. business is another meaningful step forward. We are pleased with the outcome of the competitive bidding process, which reflects our criteria of executing transactions on terms that are attractive to The Hartford."
Deutsche Bank was appointed to offer financial advice to Hartford, while the company’s legal advisor was Sidley Austin.
In October, New York-based private equity firms J C Flowers & Co and Apollo Global Management were reportedly considering to submit bids for Hartford Financial Services Group’s Japanese annuity business, according to media reports.
Image: Kiewit Tower, the location of Berkshire’s corporate offices in Omaha, Nebraska. Photo courtesy of JonClee86.