The Hartford Financial Services Group Inc. and Sedgwick Claims Management Services Inc. have announced a definitive agreement to sell Specialty Risk Services LLC (SRS) to Sedgwick CMS.
SRS, a wholly-owned subsidiary of The Hartford, is a third-party claims administrator providing self-insured, insured, and alternative market clients with customized claims services.
The transaction is expected to close during the first quarter of 2011, subject to regulatory approval and other required consents. Sedgwick CMS plans to extend comparable employment offers to all direct SRS employees, as of closing.
Under the agreement, Sedgwick CMS will pay The Hartford $278 million in cash to acquire SRS. The Hartford expects to realize a capital gain of approximately $150 million, after-tax, upon closing of the transaction.
“The sale of SRS is consistent with our strategy to focus The Hartford on core protection and wealth management businesses,” said Liam E. McGee, The Hartford’s chairman, president and CEO. “This transaction accomplishes the goal of creating shareholder value without impacting the earnings power of the company.
Sedgwick CMS provides claims and productivity management solutions to employers. The company provides claims administration, managed care, program management and related services.
Credit Suisse served as the financial advisor to The Hartford.
Was this article valuable?
Here are more articles you may enjoy.