The Hartford Financial Services Group, Inc. has agreed to sell its medical stop loss insurance business to National Benefit Resources, Inc. (NBR), a subsidiary of UnitedHealth Group, Inc.
The transaction is expected to close in early April. The terms were not disclosed.
Lizabeth Zlatkus, president of The Hartford’s International Wealth Management and Group Benefits, said all 102 stop loss employees will be offered jobs wth NBR.
“This transaction allows The Hartford’s Group Benefits Division to increase its focus on expanding its leadership positions in the group disability and life insurance markets,” she said.
Stop loss insurance covers self-insured employers against high claims generated by individual employees or limits employers’ liability of total claims incurred by all employees. The Hartford has been in the stop loss business since 1974 and currently has approximately $200 million of stop loss premium with more than 800 self-funded employer plans.
NBR has 20 years of experience in the stop loss industry. “NBR was attracted to The Hartford’s stop loss expertise, customer base and history of success,” said Paul Gulstrand, chief executive officer of NBR.
Sources: The Hartford