The Hartford has entered into an agreement with Houston-based Forethought, according to which Forethought will purchase The Hartford’s Individual Annuity new business capabilities for an undisclosed amount.
Forethought will buy product management, distribution and marketing units, as well as the suite of products which are being sold, as a part of the agreement.
The majority of the current employees that support The Hartford’s Individual Annuity new business capabilities will be offered positions with Forethought.
Forethought chairman, president and chief executive officer John Graf said, "Forethought is excited to expand further into the annuity business, given the growing demand for income products in retirement and the demographic trends unfolding in the U.S."
During the transition period, The Hartford will write new annuity products as part of the agreement and through a reinsurance arrangement, Forethought will assume all expenses and risk for these sales.
The Hartford’s in-force annuity book of business is not included in the agreement.