Prudential would end up reinsuring about 700,000 life policies that provide about $135 billion in coverage.
Prudential would get control over the $7 billion in assets and reserves backing the policies, and it would take over management of $5 billion in separate account assets.
“The benefits and provisions of The Hartford’s in-force life insurance contracts will remain unchanged, and The Hartford’s issuing companies will continue to be the named insurers,” Prudential said in a statement.
Prudential will collect the policy premiums, and it will be reponsible for paying claims and providing customer service and administration, Prudential said.
Jim Avery, the chief executive officer (CEO) of the Prudential individual life business, will retire when the transaction closes, and Kent Sluyter, the chief actuary, will take over as the CEO of the business, Prudential said.
Avery has been the unit CEO for 14 years. He delayed his retirement to help negotiate the Hartford life unit deal, Prudential said.