The Hartford Financial Services Group Inc., has sold most of its property-casualty reinsurance business to Bermuda-based Endurance Specialty Holdings Ltd.
The transaction includes the sale of renewal rights for existing business and the transfer of the majority of the unearned premium reserves as of April 1, 2003. To facilitate the transaction, The Hartford will continue to service the business for a period of time. It will handle the retained business in run-off.
The Hartford on Monday announced its intention to exit the property-casualty reinsurance market because HartRe reportedly lacks the necessary scale to compete effectively. The company said it will focus on its core property-casualty insurance businesses.
“The current business is well underwritten and well priced,” said Ramani Ayer, chairman and CEO of The Hartford. “We feel that a professional reinsurer such as Endurance will be able to build off the strong platform we’ve created.”
The Hartford has been writing reinsurance for 30 years under several different names and most recently the HartRe name. Last year HartRe wrote more than $700 million in treaty and facultative reinsurance.
As part of the sale, Endurance has offered employment to a significant number of HartRe’s claims, underwriting and actuarial professionals.
Endurance has offices in New York City, White Plains, N.Y., and London, in addition to Bermuda.
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