Prudential has publicly announced that they have reached an agreement with The Hartford to buy their individual life insurance division for over $600 million in cash. The deal is expected to be finalized sometime in 2013, and was based on the book value of The Hartford’s accounts as of the end of June, 2012.
This move will put Prudential in the top five US life insurers based on overall premium sales.
Policy owners will not see much change, since the named insurer will remain The Hartford. Once the sale is final, Prudential will be responsible for actually paying and managing the claims, even though The Hartford’s name will remain on the policy for the time being.
The current CEO of The Hartford’s individual life insurance division, Jim Avery will retire when the agreement becomes final, and will be succeeded by Kent Sluyter, who currently serves as Vice President and chief actuary.
Jim was originally slated to retire in 2012, but agreed to stay onboard when the acquisition opportunity became available.
Read the press release in its entirety, here.