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Philadelphia Financial Acquires The Hartford's HNW Private Placement Unit

Vanessa Doctor December 6, 2011

Philadelphia Financial Acquires The Hartford's HNW Private Placement Unit

Philadelphia Financial Group, the insurance firm that offers high net worth private placements, is acquiring all the assets of Hartford Life Private Placement, the insurance and wealth management subsidiary of The Hartfold Financial Services, for $117.5 million. 

The transaction remains subject to regulatory approvals and is expected to be finalized in 2012. Upon closing, Philadelphia Financial and certain insurance units under The Hartford Financial will enter into a long-term servicing agreement whereby the former will service the $35 billion in private placement insurance business previously managed by HLPP.

The New Jersey-based firm administers corporate and bank-owned life insurance, institutionally-owned group annuity contracts and individual ultra-high net worth private placement life insurance products. It is expected that all current employees of HLPP will transfer to Philadelphia Financial and continue to operate out of the New Jersey office.

Philadelphia Financial will obtain financing from Reinsurance Group of America, the international life reinsurance firm, and Evercore Partners is acting as financial advisor. 

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