The Hartford Financial Services Group Inc. (HIG: Quote) Tuesday agreed to sell independent broker dealer Woodbury Financial Services to American International Group Inc. (AIG: Quote). The financial terms of the deal were not disclosed.
Hartford said the deal is expected to generate a modest gain and have no material impact to its 2013 earnings.
The agreement is expected to close by the end of 2012, subject to regulatory approval and other conditions.
"Today's agreement is the first of three planned transactions announced in March as part of The Hartford's strategic decision to focus on its property and casualty, group benefits and mutual funds businesses," said Hartford CEO Liam McGee.
Hartford also said the sales process for Individual Life and Retirement Plans is proceeding as expected.
Patrick McEvoy will continue to serve as Woodbury Financial Services' President and CEO, and once the transaction is finalized, the will become part of the SunAmerica Financial Group's Advisor Group at AIG.
"Woodbury Financial Services is a strong broker-dealer, with very talented independent financial advisors and a dedicated home office team," said Jay Wintrob, CEO of SunAmerica Financial Group.
Hartford meanwhile said the inclusion of Woodbury Financial within Advisor Group will benefit advisors from all four broker-dealers, as well as Woodbury Financial's customers.
The company also said the change in ownership will cause no disruption for Woodbury's registered representatives, who can continue to operate under the Woodbury Financial brand.
Woodbury Financial Services is an independent broker-dealer based in Minnesota with about 1,400 registered representatives.
Hartford's financial advisor was Deutsche Bank and its legal advisor was Sutherland Asbill & Brennan.
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by RTT Staff Writer
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