Fortis, Inc. Completes Sale of Fortis Financial Group to The Hartford; Strategic Move Strengthens Focus on U.S. Specialty Insurance Businesses

Apr 02, 2001, 01:00 ET from Fortis, Inc.

    NEW YORK, April 2 /PRNewswire/ -- Fortis, Inc., part of the international
 Fortis group (BSE: FOR and AMS: FOR) announced today that it has completed the
 sale of Fortis Financial Group ("FFG"), Fortis, Inc.'s variable life insurance
 and annuity businesses and its proprietary mutual fund complex, to The
 Hartford Financial Services Group (NYSE:   HIG) ("The Hartford").
     As previously announced, Fortis, Inc. agreed to sell FFG to The Hartford
 in a cash transaction valued at approximately $ 1.12 billion.  Not included in
 the sale is FFG's statutory surplus of approximately $ 200 million, which
 Fortis will retain.
     The company said this transaction is consistent with Fortis' strategy in
 the United States to build and manage a select portfolio of specialty
 insurance businesses that are leaders in their respective markets.  FFG will
 now be able to realize its full potential with Hartford Life, whose leading
 position in the U.S. variable annuities market and rising profile in the
 mutual fund business offer it a unique platform for future growth.  This
 transaction will also enable Fortis, Inc. to focus more closely on new
 opportunities for its niche businesses -- Assurant Group, Fortis Benefits,
 Fortis Family and Fortis Health -- and in other high-potential specialty
 markets.
 
     About Fortis
     Fortis, Inc. is a financial services company that, through its operating
 companies and affiliates, provides specialty insurance and investment products
 to businesses, associations, financial service organizations and individuals
 primarily in the U.S. Fortis, Inc. is part of Fortis, the international group
 that operates in the fields of insurance, banking and investments in more than
 65 countries and with more than 70,000 employees.  For more information, visit
 the company's website at http://www.fortis.com.
 
 

SOURCE Fortis, Inc.
    NEW YORK, April 2 /PRNewswire/ -- Fortis, Inc., part of the international
 Fortis group (BSE: FOR and AMS: FOR) announced today that it has completed the
 sale of Fortis Financial Group ("FFG"), Fortis, Inc.'s variable life insurance
 and annuity businesses and its proprietary mutual fund complex, to The
 Hartford Financial Services Group (NYSE:   HIG) ("The Hartford").
     As previously announced, Fortis, Inc. agreed to sell FFG to The Hartford
 in a cash transaction valued at approximately $ 1.12 billion.  Not included in
 the sale is FFG's statutory surplus of approximately $ 200 million, which
 Fortis will retain.
     The company said this transaction is consistent with Fortis' strategy in
 the United States to build and manage a select portfolio of specialty
 insurance businesses that are leaders in their respective markets.  FFG will
 now be able to realize its full potential with Hartford Life, whose leading
 position in the U.S. variable annuities market and rising profile in the
 mutual fund business offer it a unique platform for future growth.  This
 transaction will also enable Fortis, Inc. to focus more closely on new
 opportunities for its niche businesses -- Assurant Group, Fortis Benefits,
 Fortis Family and Fortis Health -- and in other high-potential specialty
 markets.
 
     About Fortis
     Fortis, Inc. is a financial services company that, through its operating
 companies and affiliates, provides specialty insurance and investment products
 to businesses, associations, financial service organizations and individuals
 primarily in the U.S. Fortis, Inc. is part of Fortis, the international group
 that operates in the fields of insurance, banking and investments in more than
 65 countries and with more than 70,000 employees.  For more information, visit
 the company's website at http://www.fortis.com.
 
 SOURCE  Fortis, Inc.