The Hartford Agrees to Acquire Sun Life Retirement Services
SIMSBURY, CT, December 13, 2007 -- The Hartford Financial Services Group, Inc. (NYSE: HIG), one of the nation's largest diversified financial services companies, has agreed to acquire Boston-based Sun Life Retirement Services (U.S.), Inc. (RSI), from the U.S. division of Sun Life Financial Inc. RSI, a high quality provider of recordkeeping and administrative services to defined contribution plans, was formerly known as MFS Retirement Services. On the close of the acquisition, The Hartford will add $17 billion in retirement plan assets across 6,000 plans and 465,000 retirement plan participants to its business. The Hartford also gains state-of-the-art service capabilities and an expanded national footprint with new service locations in Boston and Phoenix.
"This acquisition clearly boosts our retirement plans business, helping to accelerate growth, open new markets and better serve our customers," said John Walters, president of The Hartford's U.S. Wealth Management Group and co-COO of The Hartford's life operations. "In many ways just as important, this deal partners us with an organization recognized consistently for peerless customer service excellence."
For its client service, RSI has received many accolades, including, between 2000 and 2007, more than fifty awards for excellence in investor education from the Profit Sharing 401k Council of America (PSCA) and Pensions & Investments. RSI also received "Best in Class" ranking in both 2006 and 2007 from PLANSPONSOR(R) magazine and in 2005 was named "Bundled 401k Provider of the Year" by Defined Contribution News.
"This deal is a win-win for both organizations," said Jed Collins, president of Sun Life Retirement Services. "This transaction expands our customer reach and service capabilities and grows our offerings with added resources. We're excited that The Hartford shares our service-focused philosophy and approach."
When the transaction closes - expected during first quarter 2008 - each of RSI's more than 400 employees will be offered positions with The Hartford. The Hartford intends to maintain RSI's current sites in Boston and Phoenix. The terms of the agreement were not disclosed and it is not expected to be material to The Hartford's operations.
The RSI announcement joins The Hartford's recent agreement to purchase TopNoggin, a Powell, Ohio-based defined benefit and administrative consulting firm. Through this acquisition, The Hartford gains access to TopNoggin's proprietary technology that tackles the expensive, time-consuming and cumbersome tasks of data management, administration and benefit calculations.
About The Hartford
The Hartford's Retirement Plans Group is one of The Hartford's fastest growing business segments, with 2006 deposits of $5.5 billion, an increase of 23 percent over the prior year. The group reported 2006 net income of $109 million, an increase of 45 percent over the prior year. Through its extensive broker/dealer and employer relationships, The Hartford provides 401k retirement plans for corporate customers, 457 plans for government entities and 403(b) plans for education, healthcare and non-profit organizations.
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