SOURCE: Philadelphia Financial

Philadelphia Financial

December 05, 2011 10:18 ET

Philadelphia Financial to Acquire Private Placement Insurance Operations Unit From The Hartford

PHILADELPHIA, PA--(Marketwire - Dec 5, 2011) - Philadelphia Financial Group, Inc., a leader in the ultra-high net worth private placement insurance market, today announced its agreement with affiliates of The Hartford Financial Services Group, Inc. (NYSE: HIG) to acquire all of the assets of Hartford Life Private Placement, LLC ("HLPP"). The transaction, which is subject to regulatory approvals and closing conditions, is expected to close in 2012. Upon closing, Philadelphia Financial Group, Inc. ("Philadelphia Financial") and certain insurance subsidiaries of The Hartford Financial Services Group, Inc. ("The Hartford") will enter into a long term servicing agreement whereby Philadelphia Financial will service the $35.0 Billion in private placement insurance business previously serviced by HLPP.

"This acquisition significantly extends our market leading ultra-high net worth private placement franchise into the bank and corporate owned arena and provides a long-term relationship with The Hartford," commented John K. Hillman, CEO of Philadelphia Financial. He added, "We have been very impressed by the experience and expertise of the HLPP management team and we look forward to working with our new colleagues to further develop the combined business."

HLPP, a Florham Park, NJ subsidiary of The Hartford and a leading provider of insurance and wealth management services for consumers and businesses worldwide, administers corporate and bank owned life insurance, institutionally owned group annuity contracts, and individual ultra-high net worth private placement life insurance products. It is anticipated that all current HLPP employees will transfer to Philadelphia Financial and continue to operate out of the New Jersey facility.

For The Hartford, this transaction is consistent with its concentration on core businesses and operations. "We are very pleased to be entering into a long-term relationship with Philadelphia Financial," said David N. Levenson, The Hartford's president of Wealth Management. "This transaction allows The Hartford to further focus on its core businesses." There are no anticipated changes to policy terms, investment managers, stable value agreements, pricing or service standards as a result of this transaction. Philadelphia Financial is acquiring HLPP for $117.5 million, which is to be paid upon the closing of the transaction.

Reinsurance Group of America ("RGA"), a global leader in the life reinsurance industry, is providing financing to Philadelphia Financial for the transaction. Scott N. Cochran, Executive Vice President, Global Acquisitions and Financial Solutions for RGA, commented "RGA is fortunate to be able to support two important clients through our participation in this transaction. We look forward to both Philadelphia Financial and The Hartford benefiting from this arrangement."

Evercore Partners acted as financial advisor to Philadelphia Financial in this transaction.

About Philadelphia Financial

Philadelphia Financial, headquartered in Philadelphia, PA, is a leader in the ultra-high net worth private placement insurance market. Philadelphia Financial has significant experience in the complex regulatory issues applicable to this unique product class. For more information about Philadelphia Financial, please visit www.philadelphiafinancial.com.

About The Hartford

The Hartford Financial Services Group Inc. (NYSE: HIG) is a leading provider of insurance and wealth management services for millions of consumers and businesses worldwide. The Hartford is consistently recognized for its superior service and as one of the world's most ethical companies. More information on the company and its financial performance is available at www.thehartford.com. Join us on Facebook at www.facebook.com/TheHartford. Follow us on Twitter at www.twitter.com/TheHartford.

Contact Information

  • Media Contacts:

    Philadelphia Financial:
    Holly Singer
    HS Marketing LLC
    Email Contact
    609.275.1303

    The Hartford:
    Thomas Hambrick
    Email Contact
    860.547.9746