Hartford Financial leaving annuity business to focus on P&C Insurance

U.S.-based Hartford Financial Services Group is exiting the individual life insurance and annuity business to concentrate on property and casualty insurance, group benefits and mutual funds.

The company said in a statement that it is placing its individual annuity business into runoff, and is pursuing sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans.

Analysts at Credit Suisse estimated the value of the entire individual life and annuity business of Hartford Financial at between $2 billion to $3 billion.

In February 2012, Hartford reported that earnings for its individual annuity business fell to $86 million in 2011 Q4, down from $96 million in the prior-year period.

“The Hartford’s sharper focus will lead to an organization that, over time, will be positioned for higher returns on equity, reduced sensitivity to capital markets, a lower cost of capital and increased financial flexibility,” president and CEO Liam McGee said in a statement.