John K. Hillman's Philadelphia Financial Group Inc., a Center City firm that insures "ultra-high-net worth" rich people, says it has agreed to pay $117.5 million for Hartford Financial Services's Hartford Life Private Placement LLC service, and will manage its $35 billion corporate and private insurance portfolio.

The deal "significantly extends our market-leading ultra-high-net-worth private-placement franchise" to reach Hartford's wealthy individual and corporate clients, Hillman said in a statement. Hartford Life's 85 employees will remain in their Florham Park, NJ offices; "all" were offered their jobs by the new owners. More on Hillman and Philadelphia Financial here.
The deal leaves Hartford to "focus on its core businesses," said Hartford Wealth Management boss David N. Levenson. Reinsurance Group of America will finance the deal, executive vp Scott N. Cochran said in a statement, and Evercore Partners advised Philadelphia Financial. 

The deal makes Philadelphia Financial ten times larger. According to Hillman: "PFG manages approximately $3.8 billion in assets, supporting private placement life polices for the ultra-high net worth market.  After the transaction, the total assets under management will be slightly under $40 billion, for both the ultra-high net worth market, and the corporate market. This transaction represents a meaningful expansion."

So, a big deal? "T
his transaction is transformational for PFG.  Strategically, this acquisition enhances our industry leading profile... Combined, we will administer nearly $40.0 Billion in separate account assets and hold a leading position in both the individual and corporate segment...

"Upon closing, we will have over 125 experienced professionals solely dedicated to this unique and demanding marketplace. The depth and breadth of our resources will be unmatched in the industry allowing us to provide even more highly focused service to our valued partners."

More about Philadelphia Financial, from my column a year ago: 

"That vacant former Cigna Inc. suite on the 54th floor of One Liberty Place has a new tenant: Philadelphia Financial, a $3.5 billion-asset insurer of private-placement investments and life insurance for rich people, has taken the space for its headquarters as it plans mergers and foreign expansion. The firm is paying more than $30 a square foot, competitive for Center City.
"Philadelphia Financial CEO John Hillman, a St. Joseph's University and Bishop Egan High graduate who founded the company in 1996, says he expects to hire more workers as his company expands. 'We are on an acquisition trail, and we will build out internationally,' he told me.
"The firm is moving its 35 people high above Center City from its previous headquarters in Blue Bell this fall, after completing the expected purchase of Phoenix Life and Reassurance Co. of New York and moving the work here. The firm's AGL Life Assurance Co. unit will be renamed Philadelphia Financial Life Assurance Co.; Phoenix will be renamed Philadelphia Financial Life Assurance Co. of New York." AGL had "historically profitable" but "uneven" financial results, especially after the global financial crisis, as more rich people cashed in their policies, A.M. Best & Co. reported at the time. 
"How can Philadelphia Financial afford to grow when markets are so slow? Philadelphia Financial is majority-owned by Tiptree Financial Partners, an affiliate of Tricadia Holdings, a bargain-hunting New York financial-investments group run by Michael Barnes for a group of institutional owners including JPMorgan Chase & Co., Bank of America Corp., and Union Bank of Switzerland (UBS)."