The Prudential Insurance Company of America has closed the acquisition of The Hartford’s individual life insurance business through a reinsurance transaction, valued at $615m in cash.
The acquirer is expected to receive nearly $7bn of general account investment assets and corresponding reserves, and rights and obligations with respect to almost $5bn in separate account assets and related liabilities.
Prudential Individual Life Insurance incoming chief executive officer Kent Sluyter said, "This acquisition allows us to broaden our product and distribution capabilities and strengthens our position among the largest life insurance companies in the U.S."
Approximately 700,000 Hartford life insurance policies with a face amount of nearly $135bn will be provided reinsurance by Prudential, as part of the agreement announced on 27 September 2012.
Terms of the company's existing life insurance contracts will remain unchanged, and its issuing companies will continue to market new life insurance products and riders.
Based on terms of the deal, the acquirer will receive premiums and will be accountable for paying claims and offering customer service and administration.
Prudential Financial trades in the US, Asia, Europe, and Latin America and offers life insurance, annuities, retirement-related services, mutual funds and investment management products.