Questions & Answers
Why did The Hartford make this organizational decision?
The Hartford has made the strategic decision to focus on Property and Casualty, Group Benefits and Mutual Funds, each of which has a competitive market position, strong earning potential and less sensitivity to capital markets. This decision to focus on a small number of businesses is the result of a rigorous evaluation of the company’s strategy and business portfolio conducted over the past several quarters by management and the Board of Directors.
Are you currently in discussions with anyone regarding the Retirement or Individual Life Insurance businesses?
We have engaged external advisors to assist with the evaluation of alternatives for these businesses.
How long do you think it will take to make a decision on these businesses?
We believe it is in the best interests of all stakeholders that we conduct a rigorous but expeditious process. It is likely to take 12 to 18 months to complete any transactions.
Do you expect any changes to the company’s credit ratings as a result of this announcement?
Through this 12 to 18 month transition, we will maintain capital resources and financial strength required by our business strategy and consistent with our current ratings.
I have been selling The Hartford’s life products for several years. Should I keep selling your products? What do I say to my customers?
The Hartford values its relationships with policyholders and distribution partners, and we intend to honor our commitments to both groups during this transition. For policyholders, that means that their existing policies will remain in force, active and fully supported by our service staff. For you as an advisor, you should expect to see the same level of support that you’ve become accustomed to at The Hartford in our Life and Retirement Plan businesses, even as we look to find a more natural owner for those businesses. We are open for business, and we intend to have our distribution and service teams fully staffed and active throughout the transition.
Are you still selling life insurance policies?
Yes. We remain open for business during the 12 to 18 month transition process for our Individual Life operations. Agents and advisors interested in selling our life insurance products may contact our sales and marketing support desk at (800) 800-2738.
Has a buyer for Individual Life been identified?
No, a buyer has not been identified. We have engaged external advisors to assist with the evaluation of alternatives for Individual Life.
What does “other strategic alternatives” refer to?
Potential alternatives could include things like reinsurance or other capital markets transactions to reduce the risks of the in-force book or other alternatives to free up capital and increase the company’s financial flexibility.
How do the changes announced today impact my life policy?
The changes announced today will have no impact on your policy. Your policy remains in force and The Hartford will honor all commitments to our policyholders, as we have done for over 200 years.
Are you still selling and servicing retirement plans?
Yes. Our Retirement Plans Group is conducting business as usual during this transition period. We intend to provide the same levels of service and support to which our customers and distribution partners are accustomed.
While Retirement Plans is no longer part of The Hartford's core enterprise focus, our business remains strong, as does our commitment to our plan sponsors, participants and distribution partners.
What's the timeline for a sale of the Retirement Plans Group?
We expect that any sale could take 12 to 18 months to complete. During this time, our distribution partners and customers can rest assured that we are committed to providing the same the levels of service and support to which they are accustomed.
Has a buyer been identified?
Our company policy prohibits us from commenting publicly on the current status of the sale process, but we believe that our business is highly attractive and feel very positive about the potential prospects before us.
What does this mean for my retirement account with The Hartford?
We will continue to service your retirement account, and you will continue to have access to all of The Hartford's educational tools and resources, including the participant website, during the transition period. We will keep you informed of new developments.
Can I continue to make contributions to my retirement account?
Yes, the recent announcement does not change your ability to make contributions.
Do I need to take any action?
No. Current contracts, service agreements and accounts will be fully supported according to the existing contract terms.
RPS 110199 04/12
What does it mean when you say that you are putting this business into runoff?
It means that after April 27, The Hartford will no longer be selling new annuities. All existing annuities remain in force and will be fully supported according to the existing contract terms, as we have done for over 200 years.
Do I need to take any actions before April 27 to ensure that my annuity is still in force?
No. Your annuity remains in force and will be fully supported according to the existing contract terms.
If you are shutting down the annuity business, who is going to pay out when the time comes?
The Hartford will continue to back existing annuities as we have done for over 200 years.
My financial advisor recommended that I purchase an annuity from The Hartford. I have completed all the paperwork. What happens now? Can I still get it?
All new annuity applications must be received by our service center, with all required documentation in good order, by April 27. It is business as usual for any annuities that are processed up to that date.
Given this announcement, are you still paying commissions?
Yes, we will pay commissions in accordance with our agreements. Please contact your broker/dealer for further information.
Can I still add subsequent premium payments to my existing annuities?
Yes, today's announcement does not change your ability to make subsequent premium payments.
I own a CRC fixed annuity. Will I be permitted to renew my contract/policy when its current term ends?
Yes, today's announcement does not affect your ability to renew your CRC fixed annuity.
Is The Hartford still committed to growing the mutual fund business?
We are very excited about the potential to grow Mutual Funds. We recently announced an expansion of our relationship with Wellington and our plan is to continue to drive accelerated growth in this business.
Why is The Hartford retaining the Mutual Funds business but not the other Wealth Management businesses?
The Hartford’s go-forward focus is on businesses with competitive market positions, strong capital generating ability and lower sensitivity to capital markets, and the Mutual Funds business fits those criteria. We are very excited about the potential to grow Mutual Funds. We recently announced an expansion of our relationship with Wellington and our plan is to continue to drive accelerated growth in this business.
How will the strategic changes you announced today impact The Hartford’s relationship with Wellington Management?
We do not expect any changes to our relationship with Wellington as a result of today’s announcements. We are very excited about the potential to grow Mutual Funds. We recently announced an expansion of our relationship with Wellington and our plan is to continue to drive accelerated growth in this business.
How does this announcement affect my relationship with The Hartford?
The Hartford will honor our commitments to customers and business partners and stand behind all of our promises.