AIG's SunAmerica unit to buy Woodbury Financial Services from Hartford

NEW YORK—American International Group Inc.'s SunAmerica Financial Group Inc. has signed a definitive agreement with Hartford Financial Services Group Inc. to acquire Woodbury Financial Services Inc., Hartford and AIG announced Tuesday.

Oakdale, Minn.-based Woodbury Financial is an independent broker-dealer that Hartford announced it would divest itself of earlier this year to concentrate on core operations.

Upon finalization of the transaction, Woodbury Financial Services will become part of the SunAmerica Financial Group's Advisor Group, a large network of independent broker-dealers.

“The transaction is expected to generate proceeds of up to $115 million to The Hartford at closing, consisting of a $25 million dividend from Woodbury and $90 million from AIG,” said Hartford in an emailed statement. “The purchase price is subject to downward adjustments based primarily on run-rate revenue at closing.”

“Woodbury Financial Services is a strong broker-dealer, with very talented independent financial advisers and a dedicated home office team,” said Jay Wintrob, president and CEO of SunAmerica Financial Group, in a statement.