A.M. Best Co. has commented that the ratings of The Hartford Financial Services Group, Inc. (The Hartford) (Hartford, CT) [NYSE: HIG] and its subsidiaries will remain under review with developing implications following the recent announcement that it has signed a definitive agreement to sell its individual life business to Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU] for a cash ceding commission of $615 million. The sale is expected to close in the first quarter of 2013, subject to regulatory approvals.
The announced transaction remains consistent with The Hartford’s strategy to focus on its property/casualty, group benefits and mutual funds businesses as outlined by management in early 2012. Upon the close of the announced sales of Woodbury Financial Services, its retirement plans business and its individual life business, The Hartford will have successfully executed its announced restructuring and will move forward with a strategy centered on its core strengths.
A.M. Best will continue to monitor developments regarding The Hartford’s restructuring and discuss with management its future capital plans, including any deployment of proceeds from the sales of non-core businesses, to facilitate removing its ratings from under review.
The methodology used in determining these ratings is Best’s Credit Rating Methodology , which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV