According to the firms, the cash transaction includes CNA’s group life and accident, short and long term disability and certain other products, but excludes CNA’s group long term care business. The transaction, expected to be completed on or before December 31, 2003, will involve the transfer of approximately 1,200 employees to The Hartford. Richard Mucci, senior vice president, Hartford Life and director of its Group Benefits operations, will lead the newly combined organization.
“The sale of Group Benefits enables us to sharpen our operational focus and move forward on our recently announced capital plan,” stated Stephen W. Lilienthal, Chairman and Chief Executive Officer of the CNA insurance companies. “We are pleased to have found a buyer with such a strong position in the employee benefits business.”
Ramani Ayer, chairman and chief executive officer of The Hartford, said, “We are very pleased to add these solid operations to our already successful Group Benefits operations. This will enable Hartford Life to increase the scale of its group life and disability operations and expand its distribution capability. With expected 2004 earned premiums of approximately $1 billion coming from this transaction, we will create value through improved expense leverage and improved earnings as the businesses are combined with our existing operations.”
The transaction is, of course, subject to regulatory approvals and other conditions.