SPRINGFIELD, Mass., Sept.4, 2012 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) announced today it has entered into a definitive agreement with The Hartford to purchase its Retirement Plans business, a prominent small to mid-sized retirement plan provider. This transaction will significantly increase the size of MassMutual's retirement business and strengthen its position as a leading retirement plan provider.

The purchase price is $400 million, subject to adjustment at closing. The transaction, which is subject to regulatory and other approvals, is expected to close by the end of 2012.

"This acquisition represents an important step for MassMutual and underscores our long-standing commitment to the retirement market. Following the closing of the transaction, we look forward to combining the best of our two organizations to offer enhanced capabilities and greater overall value across a broader retirement market," said Roger Crandall, Chairman, President and CEO, MassMutual. "Our Retirement Services Division has experienced record growth in recent years and is an important contributor to MassMutual's overall profitability and success. This transaction enables us to accelerate growth into new sectors, add complementary distribution capabilities, and nearly double the number of retirement plan participants we serve."

Under the leadership of Elaine Sarsynski, Executive Vice President and head of MassMutual's Retirement Services Division and Chairman and CEO of MassMutual International LLC, a plan will be implemented to ensure an orderly integration of this acquisition over the coming year.

"Today's announcement recognizes the strength of The Hartford's Retirement Plans business and the innovation, dedication and talent of the team," said The Hartford's Chairman, President and CEO Liam E. McGee. "The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy. With The Hartford's sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value."

MassMutual's Retirement Services Division offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. With a strong focus on the mid-size market, it provides retirement plan services to more than 7,600 plans, serves more than 1.6 million participants, and has more than $66.2 billion in assets under management (as of June 30, 2012).

After the closing, the strong distribution network of The Hartford's Retirement Plans business among small to mid-size plans will complement and strengthen MassMutual's excellent position with mid-size to larger corporate plans. Additionally, The Hartford's Retirement Plans' tax exempt business, including its position as a top provider of governmental plans, will strengthen MassMutual's foothold in this segment. The Hartford's Retirement Plans business, which also provides administrative services for defined benefit programs and has $54.9 billion in assets under management (as of June 30, 2012), provides retirement plan services to more than 33,000 plans and serves more than 1.5 million participants.

Once the transaction is completed, the combined retirement businesses are projected to have approximately $120 billion in assets under management and 3 million participants.

"Importantly, this is a win-win for both MassMutual and The Hartford's Retirement Plans business, their clients, distribution partners and employees," said Ms. Sarsynski. "The addition of this business will enable us to broaden and deepen our product offerings and relationships with valued distribution partners. We look forward to welcoming the talented team of professionals at The Hartford's Retirement Plans business to MassMutual."

"In addition, clients from The Hartford's Retirement Plans business will benefit from MassMutual's industry leadership in many areas, including our participant communication and education programs, comprehensive tools that help plan sponsors and plan participants measure retirement readiness, and award winning customer service," Ms. Sarsynski continued. "Together, we will create enhanced value for our advisors and plan sponsors, and work collectively toward our goal of helping our participants retire on their own terms."

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MassMutual To Acquire The Hartford's Retirement Plans Business