Hartford Financial Services Group (NYSE: HIG) is leaving the annuity business behind to focus on property and casualty insurance, group benefits and mutual funds. The company will stop selling new annuities effect April 27th.
According to Hartford, the decision to exit the annuity business was made after the board evaluated the business for several quarters. Earnings from the annuity business had fallen $10 million compared to the prior-year period.
The company is trying to lower the cost of capital and increased financial flexibility.
The announcement came a month after hedge fund manager John Paulson, whose fund owns an 8.4% stake in Hartford, urged the company to spin off its property and casualty business.