The Hartford Completes Sale Of Japan Annuity Company To ORIX Life Insurance Corporation

  The Hartford Completes Sale Of Japan Annuity Company To ORIX Life Insurance

Transaction results in $1.4 billion net statutory capital benefit

Business Wire

HARTFORD, Conn. -- July 1, 2014

The Hartford has completed the sale of its Japanese annuity subsidiary,
Hartford Life Insurance K.K. (HLIKK), to ORIX Life Insurance Corporation, a
subsidiary of ORIX Corporation for $963 million, comprised of a purchase price
of $895 million and an estimated positive purchase price adjustment of $68

“Completing the Japan transaction is another significant milestone in The
Hartford’s journey to focus on our P&C, Group Benefits and Mutual Funds
businesses,” said The Hartford’s CEO Christopher J. Swift. “This is an
excellent transaction for shareholders that permanently reduces the risk
profile of the company while also generating a significant capital benefit for
the company.”

Including the purchase price adjustment and the impact of hedging, the company
estimates that the transaction will result in a net statutory capital benefit
of $1.4 billion, which will provide approximately $1 billion for potential
incremental capital management actions. The Hartford is seeking approval for
extraordinary dividends from the Connecticut Insurance Department. These
dividends represent the reduction in capital required in the company’s U.S.
life insurance subsidiaries due to the termination of certain reinsurance
agreements as part of the transaction. The Hartford estimates that it will
record an after-tax GAAP loss on discontinued operations of approximately $625
million and a U.S. life statutory surplus loss of approximately $325 million
in second quarter 2014 financial results.

“The Hartford’s capital flexibility and risk profile are substantially
improved as a result of this transaction,” said The Hartford’s Chief Financial
Officer Beth A. Bombara. “We look forward to updating you on any additional
capital management actions we may take as a result of this transaction, and
expect any actions to be balanced consistent with our prior approach,
including equity repurchase and debt repayment.”

About The Hartford

With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in
property and casualty insurance, group benefits and mutual funds. The company
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Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
We caution investors that these forward-looking statements are not guarantees
of future performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may cause actual
results to differ. These important risks and uncertainties include those
discussed in our 2013 Annual Report on Form 10-K, subsequent Quarterly Reports
on Forms 10-Q, and the other filings we make with the Securities and Exchange
Commission. We assume no obligation to update this release, which speaks as of
the date issued.

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The Hartford
Media Contact:
Shannon Lapierre, 860-547-5624
Thomas Hambrick, 860-547-9746
Investor Contacts:
Sabra Purtill, 860-547-8691
Sean Rourke, 860-547-5688
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