In the latest indication that The Hartford is exiting the life insurance sector, the Hartford, Conn.-based insurer announced today that it is selling Woodbury Financial Services, its Woodbury, Minn.-based broker-dealer focusing on life insurance, annuities, 401 (k) and other financial products, to an AIG unit.
The Hartford also noted in a statement that "the sales process for Individual Life and Retirement Plans is proceeding as expected." The company has been working to divest itself of those units since March, after pressure from its biggest shareholder, John Paulson. Woodland Hills, Calif.'s SunAmerica, a division of AIG (New York) will acquire Woodbury for an undisclosed amount by the end of the year. Terms of the deal were not disclosed.
“Woodbury Financial Services is a strong broker-dealer, with very talented independent financial advisors and a dedicated home office team,” said Jay Wintrob, President and CEO of SunAmerica Financial Group, in a statement. “I am confident that when Woodbury Financial’s advisors join our network they will see tremendous benefits, namely our industry-leading technology and open architecture platform. We look forward to welcoming Woodbury Financial into the AIG family and to working together to provide even more valuable services to their clients.”
The Hartford president and CEO, Liam McGee, said in a statement that Woodbury "will transition to a buyer who recognizes the strengths of the business and the talent of the people, and is committed to the independent financial advisor."