NEW YORK (AP) — Hartford Financial Services Group Inc. made another asset sale Thursday, agreeing to sell its individual life insurance business to Prudential Financial Inc. for $615 million in cash.
The sale is expected to close in early 2013. The Hartford said the business had $105 million in net income over the 12 months ended June 30. Prudential said it will take over 700,000 life insurance policies, and its individual life insurance business will become one of the five largest in the U.S. after the purchase is complete.
In the last few months Hartford sold a business that markets annuities and manages sales of annuities to Forethought Financial Group Inc. and then sold its retirement plans business to MassMutual. The Hartford, Conn., company has said it wants to focus more on property and casualty insurance, group benefits and mutual funds.
Prudential also said Jim Avery, the CEO of its individual life insurance division, will retire when the deal is complete. Avery will be replaced by Kent Sluyter, the chief actuary of the business.
Prudential is based in Newark, N.J. its shares rose 2 percent to $54.82 on Thursday, while Hartford shares rose 3.3 percent to $19.30. Hartford's stock rose an additional 30 cents to $19.60 in after-hours trading.