The Hartford is re-entering the structured settlement annuity market as part of an ongoing strategy to grow its annuity business, the company announced on Wednesday.
"Building our annuity business is an important part of our Wealth Management strategy, and we are committed to rejuvenating our market position through new products and expanded distribution," said David Levenson, president of Wealth Management at The Hartford.
The Hartford's Structured Settlement Fixed Annuity, issued by Hartford Life Insurance Co., provides tax-free payouts to people who receive settlements related to a workers' compensation or personal injury claim. The periodic payments deliver dependable, regular income and are tailored to meet the future needs of the recipient.
"The structured settlement market is a growth opportunity for us and represents the next step in our re-emergence in annuities," said Rob Arena, head of annuities for The Hartford's Wealth Management unit. "We have the financial strength, the expertise, the distribution relationships and the right product to be successful in the structured settlement market."
The Hartford also offers medical underwriting for structured settlements, a capability that not all carriers are able to provide. Because structured settlement recipients sometimes have accident-related injuries that can reduce their life expectancy, medical underwriting can potentially increase their periodic payments.
"One of the most important considerations for recipients of structured settlements is the financial stability and strength of the insurance company that stands behind their annuity," Arena said. "The Hartford is a company they can have confidence in to be there for as long as their settlement calls for income."
The Hartford has an "A" financial strength rating from A.M. Best, which is considered "excellent."
The Hartford, a leader in the annuity market, had $7.6 billion in assets under management (AUM) related to structured settlement annuities and $91.3 billion in total annuity AUM as of June 30, 2011.