Hartford Financial Services Group has announced that Forethought Financial Group will buy the firm's units that market and sell annuities, including variable annuities.
"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," said president of The Hartford's wealth management division, David N. Levenson. "Building on this track record, I am confident the business will thrive under Forethought's ownership."
Forethought Financial Group will take on the product management, distribution and marketing units of The Hartford, which will no longer be selling annuities in any form, as it seeks to re-focus on property and casualty insurance, group benefits and mutual funds.
"Given the growing demand for income products in retirement and the demographic trends unfolding in the US, being able to acquire a team of top-tier annuity professionals from The Hartford will allow us to capitalise on this opportunity at an accelerated pace," said John A. Graf, chief executive at Forethought (pictured).
As reported by SRP, The Hartford announced in March that it would be moving out of the annuity market and selling this part of its business.
The Hartford expects to take a related after-tax charge of $15m to $20m in the second quarter of 2012, as a result of the move.