The Hartford Financial Services Group HIG recently sold its company Navigators Holdings (Europe) NV and its subsidiaries to Premia Holdings, an incumbent reinsurer domiciled in Bermuda. The transaction was concluded on December 29, 2021, after having been approved by the National Bank of Belgium and the Commissariat Aux Assurances in Luxembourg.
However, the other terms of the transaction were kept secret.
The divested activities include the non-life insurer Assurances Continentales NV (known as ASCO) in Belgium and its captive reinsurer Canal Re SA in Luxembourg. Navigators Holdings will now be renamed Premia Holdings (Europe) NV.
Premia management intends to make ASCO a liquidation solutions provider with new growth opportunities. Premia is firmly established in Bermuda, the United States and the United Kingdom, notably with a management agent at Lloyd’s of London.
Hartford Financial acquired The Navigators Group, Inc. in 2019 for a total price of $ 2.2 billion in cash. The multi-line insurer took this decision to achieve its main financial and strategic objectives, such as geographic expansion, establishing its existence at Lloyd’s, a wider range of product offerings, a better value proposition for agents and customers, and give a boost to its Enterprise business lines. The consolidation was to merge the best of disciplined underwriting cultures, talent and commitment, and innovation from both companies to enhance the product and service mix of the combined entity.
This sale should make it possible to rationalize its activity.
History of assignment
Currently Zacks Rank # 3 (Hold) player spares no effort to streamline his activities and focus on his core business. Hartford Financial is constantly selling non-core businesses to focus on its US operations and improve operating leverage. In addition to reducing expenses, increasing profitability and improving shareholder returns, these divestitures promote financial flexibility by freeing up more capital. You can see The full list of today’s Zacks # 1 Rank stocks here.
Earlier this year, HIG also ceded its Talcott resolution.
Hartford Financial shares gained 42.9% year-on-year, outperforming its industry’s growth of 4.1%. Lower costs, a solid financial footing and efficient capital management position HIG well for long-term growth.
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Actions to consider
Some of the best-ranked actions in the field of insurance are CNO Financial Group, Inc. CNO, Former International Republic Corporaten ORI and Brighthouse Financial, Inc. BHF. All companies have a Zacks Rank # 2 (Buy).
CNO Financial is a leading holding organization for a group of insurance companies operating in the United States, which develops, administers and markets health insurance, annuity, individual life insurance and other products. insurance. CNO presented a surprise of 13.2% on average over the last four quarters.
Old Republic International Corporation is an insurance holding company whose subsidiaries actively market, underwrite and provide risk management services for a wide variety of coverages, primarily in the areas of general insurance and title insurance. ORI’s profits have managed to beat estimates in its last four quarters, averaging 54.6%.
Brighthouse Financial is a holding company formed to own the legal entities that historically managed a substantial portion of the former Retail segment of MetLife, Inc. BHF has recorded a surprise of 67.6% on average over the past four quarters.
CNO, ORI and BHF shares have gained 9.2%, 25.2% and 46.2% each in the past year.
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The Hartford Financial Services Group, Inc. (HIG): Free Stock Analysis Report
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