NU Online News Service, Jan. 5, 2004, 12:19 p.m. EST – Hartford Financial Services Group Inc., Hartford, has completed previously announced plans to buy the group benefits business of CNA Financial Corp., Chicago, for about $500 million in cash.[@@]
Hartford, which will be putting the business in its Hartford Life and Accident Insurance Company unit, has hired about 1,200 CNA employees in connection with the transaction, the companies say.
Hartford bought CNA’s group life and accident businesses as well as its short term disability and long term disability businesses, but CNA is keeping its group long term care insurance business.
The operations that Hartford acquired generated about $900 million in revenue during the first 3 quarters of 2003, Hartford says.
CNA has estimated that the deal will show up as a loss of about $200 million in its Generally Accepted Accounting Principles financial statements but as a gain of about $100 million in its statutory financial statements.