Posted on 27 Apr 2012
The Hartford has signed an agreement with Forethought, a Houston-based privately held diversified financial services company, under which Forethought will purchase The Hartford’s Individual Annuity new business capabilities, consisting of the product management, distribution and marketing units, as well as the suite of products currently being sold. The terms of the agreement were not disclosed, but are not considered material to The Hartford’s operations or financial results.
“We are pleased to announce an agreement with Forethought, an organization of proven integrity and growing suite of high-value products,” said David N. Levenson, President of The Hartford’s Wealth Management division. “Over the last 12 months, our Individual Annuity team has done a tremendous job rebuilding our market presence through differentiated products and best-in-class distribution. Building on this track record, I am confident the business will thrive under Forethought’s ownership.”
The majority of the current employees that support The Hartford’s Individual Annuity new business capabilities will be offered positions with Forethought. As part of the agreement, The Hartford will continue to write new annuity products during a transition period and Forethought will assume all expenses and risk for these sales through a reinsurance arrangement. The agreement does not include The Hartford’s in-force annuity book of business.
“Forethought is excited to expand further into the annuity business, given the growing demand for income products in retirement and the demographic trends unfolding in the U.S.,” said John A. Graf, Chairman, President, and Chief Executive Officer of Forethought. “Being able to acquire a team of top-tier annuity professionals from The Hartford will allow us to capitalize on this opportunity at an accelerated pace.”