The Hartford Signs Agreement To Sell U.K. P&C Run-Off Subsidiaries To Catalina
July 26 2016 - 6:02AM
Business Wire
The Hartford has entered into a definitive agreement to sell its
U.K. property & casualty run-off subsidiaries, Downlands
Liability Management Limited (DLM) and Hartford Financial Products
International Limited (HFPI), to Catalina Holdings UK Limited
(Catalina). The transaction is not expected to result in a material
gain or loss, net of tax effects, on The Hartford’s financial
results. The sale is expected to close in fourth quarter 2016,
subject to regulatory approvals and other customary closing
conditions.
“We are pleased to announce this agreement, which is a good
opportunity to permanently transfer our P&C run-off exposures
in the U.K.,” said The Hartford’s Chief Financial Officer Beth
Bombara. “Catalina is a well-respected organization that
specializes in the consolidation of insurance and reinsurance
liabilities in runoff.”
The transaction follows the successful completion of a Part VII
transfer undertaken by The Hartford to combine all of its run-off
U.K. insurance business into a single insurance company, HFPI.
Catalina Holdings UK Limited is a wholly owned subsidiary of
Catalina Holdings (Bermuda) Limited.
“HFPI is a large and well diversified business, the majority of
which has been in runoff since 1993,” said Chris Fagan, Chairman
and Chief Executive of Catalina. “It is managed by a professional
and experienced team at DLM who will strengthen the breadth and
diversity of Catalina’s UK business.”
On closing, all staff will remain employees of DLM, and DLM and
HFPI will remain headquartered in Worthing, England.
The U.K. businesses have been largely in runoff since 1993. They
primarily consist of U.S. asbestos and environmental liabilities,
most of which was previously underwritten by Excess Insurance
Company Limited, as well as U.K. asbestos liabilities. At March 31,
2016, DLM and HFPI had total assets of £712 million ($1,023
million), undiscounted gross reserves of £477 million ($686
million), undiscounted reserves net of reinsurance of £359 million
($516 million) and shareholders’ equity of approximately £223
million ($321 million), all stated on a U.S. GAAP basis.
The Hartford’s financial advisor is Barclays, the company’s
legal advisor is Freshfields Bruckhaus Deringer LLP, and
PricewaterhouseCoopers LLP provided other advisory services.
About The Hartford
The Hartford is a leader in property and casualty insurance,
group benefits and mutual funds. With more than 200 years of
expertise, The Hartford is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at https://www.thehartford.com. Follow us on Twitter
at www.twitter.com/TheHartford_PR.
The Hartford Financial Services Group Inc., (NYSE: HIG) operates
through its subsidiaries under the brand name, The Hartford, and is
headquartered in Hartford, Conn. For additional details, please
read The Hartford’s legal notice.
About Catalina Holdings (Bermuda) Ltd
Catalina Holdings (Bermuda) Ltd (“Catalina”) is a long term
consolidator in the non-life insurance/reinsurance run-off sector.
Catalina was established in 2005 to focus solely on the acquisition
and management of non-life insurance/reinsurance companies in
run-off. Our shareholders are substantial financial institutions
including funds managed by Apollo Global Management, Ontario
Teachers’ Pension Plan and Caisse de depot et placement du Quebec.
Since its foundation, Catalina has acquired or reinsured over
$3.9bn of non-life insurance and reinsurance liabilities in
run-off. Catalina has received approvals from Bermudian, Irish,
Swiss, UK (FSA/PRA and Lloyd’s) and various US state insurance
regulators for prior acquisitions and reinsurance transactions. We
currently maintain offices in Bermuda, Denver, Dublin, Hartford,
London, New York and Pfaffikon, Switzerland, with over 140
employees. For further details about Catalina’s acquisitions or its
management team please refer to www.catalinare.com.
HIG-F
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our 2015 Annual Report on
Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission.
We assume no obligation to update this release, which speaks as of
the date issued.
From time to time, The Hartford may use its website to
disseminate material company information. Financial and other
important information regarding The Hartford is routinely
accessible through and posted on our website at
https://ir.thehartford.com. In addition, you may automatically
receive email alerts and other information about The Hartford when
you enroll your email address by visiting the “Email Alerts”
section at https://ir.thehartford.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726005715/en/
The HartfordMedia Contact:Michelle Loxton,
860-547-7413michelle.loxton@thehartford.comorInvestor
Contact:Sabra Purtill,
860-547-8691sabra.purtill@thehartford.com
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Sep 2023 to Sep 2024