Prudential Financial Inc. has reached a definitive agreement with The Hartford to acquire the company’s individual life insurance business through a reinsurance transaction. This comes just more than one month since Prudential emerged as the likely buyer for this particular piece of The Hartford's business divestments.
Prudential said it will pay $615 million in cash for $7 billion of general account investment assets and corresponding reserves, and rights and obligations with respect to approximately $5 billion in separate account assets and corresponding liabilities, based on statutory balance sheet values as of June 30, 2012. According to a press release, “The cash consideration consists primarily of a ceding commission to provide reinsurance for approximately 700,000 Hartford life insurance policies with face amount in force of approximately $135 billion.”
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