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HARTFORD LIFE TO TRANSFER MEDICAL BENEFITS BUSINESS TO MASSMUTUAL

 SPRINGFIELD, Mass., Sept. 14 /PRNewswire/ -- ITT Hartford Life Insurance Cos. intends to transfer a majority of its group medical and dental benefits business to Massachusetts Mutual Life Insurance Company of Springfield, Mass., the two companies announced today. The transaction represents more than $820 million in medical and dental benefits premium and premium equivalents from 500 businesses covering more than 450,000 employees and dependents.
 "This transaction will increase the scale of our medical benefits business," said James E. Miller, executive vice president, Life and Health Benefits Management, MassMutual. "Consolidations among large health carriers will be a major element of national health care reform. Our increased size, along with our reputation for effective and efficient health care delivery, will ensure that we will be a significant player in the future."
 Larry K. Lance, executive vice president of Hartford Life's Employee Benefits Division, said, "We have made a strategic decision to move away from traditional medical and to intensify our efforts to grow our successful group disability, group life, special risk, workers' compensation managed care, and third-party administrator (TPA) businesses. These lines, along with annuity, individual life and asset management, have made us the nation's fastest growing major life insurer."
 The transaction will add to MassMutual's current book of medical benefits business, which includes $1.9 billion in medical and dental benefits premium and premium equivalents from over 2,200 businesses for more than 1.2 million employees and dependents. MassMutual and Hartford Life are presently the 11th and 14th largest commercial health insurers, respectively, as measured by premium and premium equivalents.
 "The transaction to MassMutual should be smooth for our customers," said Lance. "MassMutual is a strong, solid carrier that shares many of our values and strategies, including our commitment to customer service." Customers with early 1994 policy renewal dates will be the first to consider transferring their plans.
 MassMutual's Miller added: "MassMutual and Hartford Life have developed parallel systems and provider networks in many locations. As a result, we will have a relatively seamless transfer of business and clients will benefit through greater efficiency brought about by consolidating operations."
 MassMutual plans to offer positions to a number of Hartford Life employees to service the new business, and will open a business transition office at a yet-to-be determined Connecticut location between
Simsbury and Springfield. In addition, MassMutual has indicated that it may add some new positions at its Springfield headquarters.
 While Hartford Life is moving away from the traditional group medical benefits business, it will continue to sell several related products and services, such as Medicare supplement, association major medical, products sold through TPAs, and coverages through AvMed, a major Florida health maintenance organization.
 Hartford Life is part of ITT Hartford Insurance Group, one of the oldest and largest multi-line insurance and financial services organizations in the world with more than $57 billion in assets. It is owned by ITT Corp. (NYSE :ITT), a highly diversified manufacturing and services organization with worldwide assets of more than $71 billion.
 With $53 billion in assets under management, MassMutual is a leading provider of individual life insurance, employee life, health and pension benefits, and investment services. Established in 1851, MassMutual is among the 100 largest businesses in the United States.
 -0- 9/14/93
 /CONTACT: Eustis Walcott, MassMutual, 413-744-3679, or Joe Mondy, of MassMutual, 413-744-2365, or; Robert F. Nolan, of Hartford Life, 203-843-8820/
 (ITT)


CO: MassMutual Life Insurance Company; Hartford Life; ITT Corporation ST: Massachusetts, Connecticut IN: INS SU:

JL-CM -- NE014 -- 1843 09/14/93 14:52 EDT
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Publication:PR Newswire
Date:Sep 14, 1993
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