(Bloomberg News) Hartford Financial Services Group Inc., the insurer that repaid a $3.4 billion bailout last year, agreed to sell a unit serving wealthy clients to Philadelphia Financial Group Inc. for $117.5 million.
Hartford Life Private Placement will help the buyer expand in wealth management and the administration of corporate- and bank-owned life policies, according to a statement last week from Philadelphia, based in the city of the same name.
Chief Executive Officer Liam McGee is divesting businesses as he focuses Hartford on the sale of retirement products, life insurance and property-casualty coverage. The insurer said in October it was selling administrative-services provider Trumbull Services LLC to Exlservice Holdings Inc.
The Philadelphia deal "allows the Hartford to further focus on its core businesses," David Levenson, the seller's president of wealth management, said in the statement.
Philadelphia will service $35 billion in private placement business previously handled by the Hartford, Connecticut-based insurer, according to the statement. Reinsurance Group of America Inc. is providing financing for the deal, which is expected to be completed next year, Philadelphia said.