The Hartford to Sell Specialty Risk Services to Sedgwick CMS

The Hartford Financial Services Group has announced an agreement to sell Specialty Risk Services (SRS) to Sedgwick Claims Management Services (Sedgwick CMS, Memphis). SRS, a wholly-owned subsidiary of The Hartford, is one of the nation’s leading third-party claims administrators providing self-insured, insured, and alternative market clients with customized claims services. The transaction is expected to close during the first quarter of 2011, subject to regulatory approval and other required consents.

"The sale of SRS is consistent with our strategy to focus The Hartford on core protection and wealth management businesses,” comments Liam E. McGee, chairman, president and chief executive officer, The Hartford. "This transaction accomplishes the goal of creating shareholder value without impacting the earnings power of the company.

“These are two outstanding organizations that will build on strong traditions of client-focused service," McGee adds. As we work with Sedgwick to close the transaction, we will continue to provide high quality products and services to our customers.”

Under the agreement, Sedgwick CMS will pay The Hartford $278 million in cash to acquire SRS, according to a statement from The Hartford. The Hartford expects to realize a capital gain of approximately $150 million, after-tax, upon closing of the transaction.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio