(Bloomberg) -- Hartford FinancialServices Group Inc., the U.S. insurer that’s been narrowing itsfocus, agreed to sell U.K. operations with $1 billion of assets toCatalina HoldingsLtd. to exit risks tied to asbestos and environmental policiesissued more than two decades ago.

The units, Downlands Liability Management and Hartford FinancialProducts International, had shareholders equity of about 223million pounds ($321 million) as of March 31, the seller saidTuesday in a statement. Catalina counts the Ontario Teachers’Pension Plan and funds managed by Apollo Global Management LLCamong its major shareholders. The Bermuda-based businessspecializes in runoff deals in which it gets assets and agrees towind down liabilities initiated by other insurers.

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“HFPI is a large and well diversified business, the majority ofwhich has been in runoff since 1993,” Catalina Chief ExecutiveOfficer Chris Fagan said in the statement. “It is managed by aprofessional and experienced team at DLM who will strengthen thebreadth and diversity of Catalina’s U.K. business.”

Previous divestitures

The U.S. insurer is counting on coverage of homes, cars andcommercial clients in the world’s largest economy. Hartford, basedin the Connecticut city of the same name, previously divested adomestic life business, its Japan operations and a U.K. unit thatoffered retirement products.

The units being sold to Catalina will remain in Worthing,England, according to the statement, which didn’t disclose terms.Hartford was advised by Barclays Plc and used the law firm ofFreshfields Bruckhaus Deringer LLP. The company said it expects thedeal to be completed in the fourth quarter.

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