The Hartford Financial Services Group, Inc. has signed a definitive agreement to sell its non-standard property and casualty subsidiary, Omni Insurance Group, to Independent Insurance Investments, Inc. (4i’s), a portfolio company of Inverness Partners II, for approximately $100 million.
“The Hartford’s purchase of Omni in 1998 enabled the company to successfully enter the non-standard auto insurance market,” said David Zwiener, president and chief operating officer of The Hartford’s Property and Casualty Operations. “Today, The Hartford has the capacity to meet its customers’ needs through its enhanced Dimensions auto program. This agreement is a win-win for both parties; Omni will be able to thrive in a pure-play, non-standard organization and The Hartford will continue to focus on its core classes of business. We look forward to working with 4i’s on a successful transition.”
The transaction is expected to close by the fourth quarter of 2006, subject to regulatory approval and other required consents. The Hartford expects the sale will result in an after-tax realized capital gain due to a tax benefit that will be recognized at closing. The after-tax gain is not expected to be material to results of operations. UBS Investment Bank acted as the financial advisor to The Hartford in this transaction. Current Omni insurance policies will remain in force.
Source: The Hartford
Was this article valuable?
Here are more articles you may enjoy.