NU Online News Service, Dec. 21, 11:03 a.m. EST

In a move said to be consistent with its current strategy, Hartford Financial Services said it is selling its third-party claims administrator to Sedgwick Claims Management Services for $278 million.

The transaction is expected to close during the 2011 first quarter. The insurer predicts an after-tax capital gain of about $150 million for its cash sale of wholly owned subsidiary Specialty Risk Services, LLC (SRS), The Hartford said in a statement.

SRS provides services to self-insured, insured and alternative market clients. The Hartford said SRS is one of the nation's leading third-party claims administrators.

"This transaction accomplishes the goal of creating shareholder value without impacting the earnings power of the company," said Liam E. McGee, chairman, president and chief executive officer of The Hartford, which has outlined a business strategy that focuses on core protection and wealth management.

Earlier this year, The Hartford outlined a new growth strategy that concentrated on commercial markets, consumer markets and wealth management in order to improve earnings after repaying $3.4 billion it had borrowed from the U.S. Treasury under the Troubled Asset Relief Program.

Sedgwick said it plans to "extend comparable employment offers" to those at SRS.

Special Reports /

The Hartford To Sell Third-Party Claims Unit For $278 Million

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