UK: The Hartford agrees to sell two subsidiaries

The Hartford has recently entered into an agreement to sell its U.K. based property & casualty run-off subsidiaries, Downlands Liability Management Limited (DLM) and Hartford Financial Products International Limited (HFPI), to Catalina Holdings UK Limited (Catalina). This transaction is not expected to result in a material gain or loss, net of tax effects, on The Hartford’s financial results. The sale is expected to close in last quarter of 2016, subject to regulatory approvals and other closing conditions.

On closing, all staff will remain employees of DLM, and both companies will remain headquartered in Worthing, England.

The U.K. businesses have been largely in runoff since 1993. They primarily consist of U.S. asbestos and environmental liabilities. As of March 31, 2016, DLM and HFPI had total assets of over $1 billion, undiscounted gross reserves of $686 million, undiscounted reserves net of reinsurance of $516 million and shareholders’ equity of approximately $321 million.

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