September 4, 2012 (PLANSPONSOR.com) - Massachusetts Mutual Life Insurance Company and The Hartford have entered into a definitive agreement for MassMutual to purchase The Hartford’s Retirement Plans business.
The purchase price is $400 million, subject to adjustment at closing. The transaction, which is subject to regulatory and other approvals, is expected to close by the end of 2012. Under the leadership of Elaine Sarsynski, executive vice president and head of MassMutual’s Retirement Services Division and chairman and CEO of MassMutual International LLC, a plan will be implemented to ensure an orderly integration of this acquisition over the coming year.
The Hartford’s Retirement Plans employees will become part of MassMutual’s Retirement Services Division.
The Hartford’s Retirement Plans business is primarily a defined contribution business with $54.9 billion in assets under management as of June 30, 2012. The business serves more than 33,000 plans with more than 1.5 million participants, and has a strong presence in the small to mid-sized corporate 401(k) and tax-exempt markets. It also provides administrative services for defined-benefit programs.
MassMutual said The Hartford’s Retirement Plans’ tax exempt business will strengthen MassMutual’s foothold in this segment.
Once the transaction is completed, the combined retirement businesses are projected to have approximately $120 billion in assets under management and three million participants.
According to PLANSPONSOR’s 2012 Recordkeeping Survey (see “RK Survey 2012”), in 2011, The Hartford had $41.5 billion in 401(k) assets, $2 billion in 403(b) assets and $9.6 billion in 457 plan assets. MassMutual had $36.2 billion in 401(k) assets, $1.8 billion in 403(b) assets, $70 million in 457 plan assets and $976 million in profit sharing plan assets.