back into the structured settlement marketplace
September 23rd, 2011It is really interesting that the The Hartford Financial Services has entered back into the structured settlement marketplace. It is such a lucrative business it is surprising it took them so long.
| On Tuesday, The Hartford Financial Services Group Inc. announced its intention to once again enter the structured settlement annuity market in an effort to expand their annuity business. Hartford had exited this particular business back in October 2009, but the directors are confident that the reemergence of the company into the structured settlement annuity business will prove immensely profitable.Rob Arena, the head of annuities for Hartford’s Wealth Management unit, claimed: “[the annuities market] is a growth opportunity for us, and represents the next step in our reemergence.”
The company’s Life Insurance unit will be providing tax-free payouts, via a structured settlement fixed annuity, to those who, due to a personal injury or worker’s compensation claim, are receiving settlements. These payments, which represent an aspect of the company’s return to the annuities market, will provide these individuals with regular income. Structured settlement recipients are often besieged with medical expenses due to accident related injuries. These injuries can often diminish life expectancy, and so the Connecticut-based financial services group will also be offering medical underwriting for the structured settlements. This underwriting provides invaluable assistance for those who require steady payments. The company had over $7.5 billion in structured settlement annuity assets under management at the end of June. This figure was from annuity contracts preceding the October 2009 exit, now revealed to be only a temporary exit, from the annuities market. Of the total annuity assets under management, Hartford had $91.3 billion. The company has the capability to again become a major player in the annuities market, and hopefully the board of directors will be able to keep everything on track. Recently, in morning trading, shares of The Hartford Group were down 4 cents, perhaps reflecting the slight caution that the market is taking towards Hartford’s return to the annuities arena; the stock is now at $17. |
It is also surprising how little this affected the stock price for the Hartford.
