Hartford unit terminates reinsurance agreement with White River Hartford Life and Annuity Insurance disclosed that it terminated its reinsurance agreement with White River Life Reinsurance. As a result, the company expects to recognize a gain of approximately $215M resulting from the termination of derivatives associated with the reinsurance transaction. In addition, the company expects to receive a capital contribution of approximately $1B from its ultimate parent, The Hartford Financial Services Group (HIG), in support of this transaction as the economics related to HLAI's business are no longer reinsured to WRR. This capital contribution will be funded by WRR paying off the $655 surplus note and returning approximately $345 in capital to The Hartford. Effective March 3, The Hartford made Hartford Life and Accident Insurance Company the single nationwide underwriting company for its Group Benefits business by capitalizing HLA to support the Group Benefits business and separating it from the legal entities that support The Hartford's Talcott Resolution operating segment. In connection with this effort, HLAI and the company paid a dividend of $800M to HLA, and all of the issued and outstanding equity of the company was distributed from HLA to Hartford Life.
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