The Hartford said it has inked a $278 million deal to sell its third-party claims administration business, Specialty Risk Services (SRS), to Sedgwick Claims Management Services Inc.
The Hartford said the deal is expected to close in the first quarter, and will give the insurer capital gains of approximately $150 million, after taxes.
SRS handle claims services for self-insured, insured and alternative market clients.The Hartford said Sedgwick plans to extend comparable employment offers to all direct Specialty Risk Services employees.
Sedgwick, based in Tennessee, provides claims and productivity management services. It has about 7,000 employees and 130 offices in North America.The company specializes in workers’ compensation, disability, FMLA and other employee absence, general, automobile and professional liability and warranty and credit card claims services
The sale of SRS reflects The Hartford’s desire to refocus on its “core protection and wealth management” business said CEO and Chairman Liam E. McGee.
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