Connecticut won’t lose hundreds of workers to Massachusetts as employees transfer from The Hartford Financial Services Group to Massachusetts Mutual Life Insurance Co.
Instead, they’ll work in Enfield.
On Jan. 1, The Hartford completed the sale of its Retirement Services division to MassMutual, which has offices in Enfield and Springfield. Until Friday, it wasn’t clear where the employees would work, and Connecticut could have lost those workers to Massachusetts.
“As we prepared for the integration with The Hartford’s Retirement Plans business, we undertook a complete assessment of our current facilities in Springfield and Enfield to determine how to optimize our existing footprint, best meet our business needs and create a more vibrant and collaborative work environment for our employees,” MassMutual spokesman Mark Cybulski said Friday.
As a result of that process, MassMutual decided to make Enfield its primary location for its Retirement Services business and Springfield the primary location for its U.S. insurance business.
MassMutual now has about 4,000 workers in Springfield and about 1,600 in Enfield. The company also has a mix of businesses in both locations. Some Enfield employees will be transferred to Springfield, although complete details of the plan aren’t established yet.
The Hartford had about 700 employees in its Retirement Services division, with people working in Windsor and Simsbury offices. Employees will stay in those offices until they transition to Enfield by the end of this year.
MassMutual is planning a two-year renovation to both its Springfield and Enfield offices, which will be complete by the end of 2014. The company has not said how much money it plans to spend on the renovations.
“We’re doing a significant investment in our Enfield and Springfield offices to upgrade facilities and infrastructure and get them ready for this move,” Cybulski said.
It’s still not clear how many of the 700 workers MassMutual will retain in the long run, and Cybulski reiterated what the company has said previously: “We’re building an integration plan that builds on the best of both organizations, but it’s premature to speculate about staffing at this point.”
MassMutual expanded to Hartford when it acquired Connecticut Mutual Life Insurance Co. in 1996. MassMutual maintained offices in the Asylum Hill neighborhood until 2004, when the insurer spent $27.4 million to buy an office complex in Enfield from The Phoenix Cos.
In 2005, MassMutual relocated about 1,200 jobs from Hartford to Enfield, and some jobs were moved to Springfield. At the time, Phoenix moved about 500 employees from Enfield to its downtown Hartford offices.
The Hartford bought the former MassMutual buildings in Asylum Hill, next to its own headquarters, in July 2009 for $9.1 million. It demolished much of the former offices, although part of the building remains.
The Hartford completed the sale of three major divisions in late December and early January as it finalizes its transformation into a leaner company focused on property-casualty, group benefits and mutual funds.
The Hartford’s Individual Life unit was sold to The Prudential Insurance Company of America, and The Hartford sold its Individual Annuity business to Forethought Financial Group Inc. In early December, The Hartford sold the Woodbury Financial brokerage to AIG. The four divestitures combined gave The Hartford a benefit of $2.2 billion in net statutory capital.