On Tuesday, The
Hartford announced that it had entered into a definitive agreement to sell off its property & casualty run-off subsidiaries in the UK to Catalina Holdings UK Limited (Catalina); itself a wholly-owned subsidiary of Catalina Holdings (Bermuda) Limited.
The two subsidiaries to be sold are Downlands Liability Management Limited (DLM) and Hartford Financial Products International Limited (HFPI).
According to a release from Hartford, the transaction is not expected to result in a material gain or loss, net of tax effects, on the company’s financial results.
The sale is anticipated to close in the fourth quarter of 2016 and will be 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.,” remarked 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 Hartford’s successful Part VII transfer, which combined all of its run-off UK insurance businesses into a single insurance company—HFPI.
“HFPI is a large and well diversified business, the majority of which has been in runoff since 1993,” explained Catalina Chairman and Chief Executive Chris Fagan. “It is managed by a professional and experienced team at DLM who will strengthen the breadth and diversity of Catalina’s UK business.”
Following the transaction, all staff will remain employees of DLM, and both DLM and HFPI will remain headquartered in Worthing, England.
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