by John D. Darer CLU ChFC CSSC RSP
Hartford Life Insurance Company will cease writing new structured settlement annuity business effective April 27, 2012. The Hartford had only re-entered the business last summer after a brief hiatus, but pressure put on the parent company to narrow the company focus to its property casualty business by major shareholder John Paulson, was the impetus to the action. Hartford Financial Services Group Inc. also announced it will stop selling individual annuities and seek buyers for parts of its life-insurance unit, according to various news reports today.
The important thing for Hartford annuitants is that Hartford Life Insurance Company IS NOT going out of business. It is only ceasing writing new business in the stuctured settlement market segment.
Hartford previously exited the structured settlement business in October 2009 "as part of the company's decision to exit the institutional business" , spokesman David Potter said on August 23, 2011- Forbes Here is the video podcast that Mark Wahlstrom and I published October 30, 2009.
Despite this, "revisionist historians" Tulsa attorney Dick Risk and Patrick Hindert continue to mischaracterize the 2009 withdrawal (Risk on his website, Hindert on his S2KM blog) as the result of the settlement of the Spencer v Hartford lawsuit when none of the other attorneys associated with the lawsuit make the same claim. Proud of success yes, but those attorneys have moved on.
Hartford CEO Liam McGhee is quoted in Bloomberg News March 21, 2012 that he opted against the complete breakup advocated by billionaire John Paulson because it wasn’t the best way to create value.
Credit-default swaps on Hartford Financial Services Group Inc. fell by the most in a day since Nov. 30, 2011. The cost to protect debt tied to Hartford Financial from default for five years slid to the lowest level since August 2011, according to Bloomberg.