NU Online News Service, Feb. 14, 2005, 4:23 p.m. EST
A New England insurer is paying $29 million for a block of life and accident insurance business from another carrier.[@@]
Hartford Financial Services Group Inc., Hartford, is acquiring the 100,000-policy block from Union Labor Life Insurance Company, Washington.
Union Labor, a unit of ULLICO Inc., will use the sale proceeds to increase its capital and surplus position, says Mark Singleton, ULLICO’s chief financial officer.
Hartford bought the policies to add scale to its group life and accident businesses and become more competitive on costs, says Richard Mucci, executive vice president of Hartford’s group benefits division.
Hartford sells group life and accident policies through Hartford Life Insurance Company and Hartford Life and Accident Insurance Company.
The transaction was the result of an alliance that ULLICO and Hartford formed to sell life and accident insurance to union members through a direct-mail program, the companies say.