On Monday, Hartford Financial Services Group Inc. (HIG) sold its subsidiary Trumbull Services LLC to ExlService Holdings, Inc. (EXLS). The terms of the deal were not disclosed.
Trumbull specializes in providing subrogation service. Subrogation is a legal process via which an insurance company recovers its loss from a third party partially responsible for a particular claim. Trumbull also provides other services such as premium collection and policy administration.
The deal will help ExlService in expanding its outsourcing business. Along with the acquisition, the company will also take over the employees of Trumbull.
The divestiture will enable Hartford to focus on its core business of life insurance, property-casualty and retirement products. The company also sold its specialty risk services business last year.
Additionally, on Monday, Hartford also announced the termination of over 500 customer service and back-office jobs. However, while the company is cutting jobs in some areas, it is also hiring in other areas, which are witnessing growth.
Hartford is expected to announce its third-quarter earnings on November 2, 2011. The Zacks Consensus Estimate for third-quarter earnings is currently 71 cents per share, down 50.03% year-over-year. Of the 13 firms covering the stock, 4 revised their estimates downward, while no upward revisions were witnessed in the last 30 days.
For 2011, earnings are expected to be about $2.85 per share, down 14.2% year-over-year.
Currently, Hartford carries a Zacks #3 Rank, implying a short term Hold rating. On Thursday, the shares of the company closed at $17.66, up 4.19%, on the New York Stock Exchange.
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