HARTFORD, Conn., August 4 — The Hartford has entered into a definitive agreement to acquire Equitable’s1 Employee Benefits business, which focuses on providing small and midsize employers with flexible, non-medical benefits. The acquisition, which accelerates The Hartford’s Employee Benefits growth strategy, represents approximately $500 million in premium, and is expected to close in the fourth quarter, subject to regulatory approvals and other customary closing conditions.
“This acquisition reinforces The Hartford’s leadership in employee benefits and small business,” said The Hartford’s Chairman and CEO Christopher Swift. “Small and midsize employers represent a strategic growth opportunity for our Employee Benefits business, and this transaction strengthens our ability to meet the evolving needs of this important business segment.”
Equitable’s Employee Benefits portfolio includes group life, disability, paid family and medical leave and supplemental health products, as well as dental and vision.
The Hartford will also obtain Equitable’s Employee Benefits technology, which will enhance employee, employer and broker experiences with unified digital capabilities and real-time API integrations. Equitable’s Employee Benefits business and The Hartford will work together to support their mutual customers, and the approximately 300 employees who support the acquired business will join The Hartford upon closing.
“The modern, integrated technology makes it easier for our small and midsize business customers to access and manage their benefits,” said Mike Fish, head of Employee Benefits at The Hartford. “We look forward to welcoming the Equitable employees who will be joining us to help serve our employer customers and broker partners.”
Financial terms of the transaction were not disclosed. This transaction does not change the company’s previously announced capital management plans.
Rothschild & Co served as financial advisor to The Hartford, and Sidley Austin LLP served as legal advisor to The Hartford. J.P. Morgan served as financial advisor to Equitable, and Debevoise & Plimpton LLP served as legal advisor to Equitable.