The Hartford Financial Services Group Inc.

The Hartford Closes On Japan Annuity Business, Says Large Dividends Could Follow

The Hartford Financial Services Group said Tuesday it has closed its sale of the company's Japan annuity business to Orix Life Insurance Corp., which could mean larger dividends for The Hartford's shareholders in the future.

The sale results in a $1.4 billion net statutory capital benefit for The Hartford. Orix is paying $895 million, plus a price adjustment of $68 million, to buy The Hartford Life Insurance K.K., the Japan annuity subsidiary. The transaction results in an after-tax accounting loss of $625 million, using Generally Accepted Accounting Principles, or GAAP, in The Hartford's second-quarter earnings.

The Hartford said Tuesday it is seeking approval from the...