Hartford, Conn. (AP)—Hartford Financial Services Group Inc. (NYSE: HIG) is selling a subsidiary that provides insurance to wealthy customers for $117.5 million to Philadelphia Financial Group Inc.
Philadelphia Financial Group said Monday it expects to close the deal next year, assuming responsibility for servicing about $35 billion in private placement insurance business.
The subsidiary is Hartford Life Private Placement LLC, which is based in Florham Park, N.J. The division offers a variety of services for businesses and wealthy individuals. It provides insurance and wealth management services, administers corporate and bank-owned life insurance policies and runs institutionally owned group annuity contracts among other things.
Philadelphia Financial Group specializes in insurance products for wealthy clients. The company said it expects to take on all employees of the Hartford Life Private Placement employees, who will continue to work in New Jersey.
Shares of Hartford Financial Services Group jumped 90 cents, or 5 percent, to $18.81 in afternoon trading on Monday.