Hartford Financial exiting annuity business

Hartford Financial Services Group Inc. is exiting the annuity business so it can focus on its property and casualty insurance, group benefits and mutual funds businesses. The company announced the move this morning. It comes a little more than a month after hedge fund manager John Paulson urged Hartford to spin off its property and casualty insurance business. At that time, Hartford said it would review Paulson’s plan, but warned that a breakup wouldn’t be easy. Hartford says it will stop new annuity sales on April 27 and anticipates taking a $15 million to $20 million after-tax charge in the second quarter. Annual run-rate expenses are expected to decline by about $100 million, before taxes, starting next year. Hartford Financial also says it’s looking to sell or pursue other options for its individual life, Woodbury Financial Services and retirement plans, but that it will continue to write new business in those areas. The Hartford, Conn.-based company says its decision to exit the annuity business came after a board evaluation conducted over the past several quarters ended this week. Annuities, which are a popular component of retirement plans, enable individuals to invest and get payments at a later date or series of dates.