Through the acquisition, The Hartford also obtains industry-leading digital assets and an integrated absence management platform, which will enhance the experience the company delivers to its customers. Elliot added, "Our claims organization continues to use data and advanced analytics across workers' compensation and disability to drive better outcomes for customers in both business lines. As the nation's second largest workers' compensation insurer, and now, the second largest group disability insurer, this transaction increases our competitive differentiation and potential for future product offerings for absence management."In addition, the deal enhances The Hartford's distribution footprint and includes an exclusive, multi-year collaboration in which Aetna will be offering The Hartford's group life and disability products through Aetna's medical sales team. Additional Transaction DetailsThe Hartford will pay Aetna cash consideration of $1.45 billion, primarily comprised of a ceding commission, to be paid by Hartford Life & Accident Insurance Company, the primary Group Benefits insurance operating subsidiary of The Hartford. Hartford Life & Accident will reinsure on an indemnity basis Aetna's book of group life and disability insurance, which had premiums of approximately $2 billion in 2016. Aetna projects the impact of the transaction to 2017 earnings per share to be immaterial given the timing of the transaction and slightly dilutive to 2018 earnings per share. The acquisition will be accretive to The Hartford's earnings in 2018 and will be funded by dividends from its insurance subsidiaries and holding company resources, including the $273 million remaining under the company's 2017 equity repurchase plan. The Hartford does not intend to issue debt or equity in order to fund the cash consideration for the acquisition and, as a result of the acquisition, does not currently expect to authorize an equity repurchase plan for 2018. The Hartford will host a conference call at 9:00 a.m. EDT on Oct. 23, 2017. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. A replay of the call along with a transcript of the event will be available for at least 90 days. Additional information regarding the transaction can be found on The Hartford's website at https://www.thehartford.com, including a presentation deck that summarizes key financial terms and operating benefits of the acquisition, and in Current Reports on Form 8-K filed today with the Securities and Exchange Commission by The Hartford and Aetna. About AetnaAetna (NYSE: AET) is one of the nation's leading diversified health care benefits companies, serving an estimated 44.7 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews About The HartfordThe Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at https://www.thehartford.com. Follow us on Twitter at www.twitter.com/TheHartford_PR. The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Conn. For additional details, please read The Hartford's legal notice. HIG-F, HIG-G
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to the impact of the acquisition of Aetna's Group Life and Disability business, including, without limitation, the impact on The Hartford's and Aetna's future earnings, earned premium and equity repurchase plans, the projected closing date for the transaction and the projected impact of the transaction on the parties. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in the parties' respective 2016 Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and the other filings they each make with the Securities and Exchange Commission. Neither party assumes any obligation to update this release, which speaks as of the date issued.From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at https://ir.thehartford.com. 1 Source: LIMRA, based on in-force master contracts, certificates, total premiums collected as of Dec. 31, 2016, and annualized premiums. 1 Total earned premium for both Aetna's group life and disability business and The Hartford's group life and disability business, expected for 2018.