Forethought, of Houston, is a privately held diversified financial services company. Under the purchase agreement, Forethought will gain The Hartford’s Individual Annuity product management, distribution and marketing units, as well as the suite of products currently being sold.
The terms of the agreement were not disclosed, but are not considered material to The Hartford’s operations or financial results.
“We are pleased to announce an agreement with Forethought, an organization of proven integrity and growing suite of high-value products,” said David N. Levenson, president of The Hartford’s Wealth Management division. “Over the last 12 months, our Individual Annuity team has done a tremendous job rebuilding our market presence through differentiated products and best-in-class distribution.”
The majority of the current employees that support The Hartford’s Individual Annuity new business capabilities will be offered positions with Forethought. As part of the agreement, The Hartford will continue to write new annuity products during a transition period and Forethought will assume all expenses and risk for these sales through a reinsurance arrangement. The agreement does not include The Hartford’s in-force annuity book of business.
In March, The Hartford announced as part of a new focus it would be placing its Individual Annuity business into runoff and pursue sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans. (See “The Hartford Puts Retirement on the Block.”)