The Hartford Financial Services Group (HIG – Free Report) recently sold its Navigators Holdings (Europe) NV and subsidiaries to Premia Holdings, Bermuda domiciled legacy reinsurer. The deal was closed on Dec 29, 2021, after being approved by the National Bank of Belgium and the Commissariat Aux Assurances in Luxemburg.
However, further terms of the transaction were kept under the wraps.
The divested businesses include property and casualty insurer Assurances Continentales NV (known as ASCO) in Belgium, and its captive reinsurer Canal Re S.A. in Luxembourg. Navigators Holdings will now be renamed Premia Holdings (Europe) NV.
Premia’s management has plans to turn ASCO into a provider of run-off solutions with new growth opportunities. Premia has a solid presence in Bermuda, the United States and the United Kingdom, including a managing agent at Lloyd’s of London.
Hartford Financial bought The Navigators Group, Inc. back in 2019 for a total price of $2.2 billion in cash. The multiline insurer made this move to achieve its key financial and strategic objectives, such as geographic expansion, establishment of its existence in Lloyd’s, a wider range of product offerings, better value proposition to agents and customers, and lend a boost to its commercial lines business. The consolidation was expected to merge the best of disciplined underwriting cultures, talent and commitment plus innovation of both companies to enhance the combined entity’s product and service suite.
This divestiture is expected to streamline its business.
Hartford Financial is leaving no stone unturned to streamline its business for focusing on its core business. Hartford Financial is constantly vending non-core businesses to concentrate on its U.S. operations and enhance its operating leverage. Apart from lowering expenses, boosting profitability and improving returns to shareholders, these divestitures are driving financial flexibility by freeing up more capital.
Earlier in 2021, HIG also divested its Talcott Resolution.
Cost reduction, sound financial footing and efficient capital management position HIG well for long-term growth.
(We are reissuing this article to correct a mistake. The original article, issued on December 30, 2021, should no longer be relied upon.)