This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Revises Outlook To Positive For The Hartford Financial Services Group, Inc. And Its Property/Casualty Subsidiaries

Stocks in this article: HIG

A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a+” of Hartford Fire Insurance Company and its pooling subsidiaries and affiliates, collectively referred to as the Hartford Insurance Pool. At the same time, A.M. Best has affirmed the ICR of “bbb+” and all debt ratings of The Hartford Financial Services Group, Inc. (The Hartford) [NYSE:HIG], which is the ultimate parent of the aforementioned operating insurance companies. All companies are headquartered in Hartford, CT. (Please see link below for a detailed listing of the companies and ratings.)

The ratings of the Hartford Insurance Pool reflect its solid risk-adjusted capitalization, improving underwriting and operating profitability and excellent market position within the property/casualty industry. The pool’s results remain better than the average of its peers in recent years, although they have deteriorated relative to historical levels. The Hartford Insurance Pool benefits from its geographic and product line diversity, experienced management team, generally conservative operating fundamentals and diversified underwriting initiatives, which provide balanced growth opportunities. Management remains focused primarily on small to middle commercial markets and personal lines that are viewed as less volatile. While results in recent years have been impacted by catastrophes and non-catastrophe weather losses, the pool's core results remain within A.M. Best's expectations.

These positive factors are somewhat offset by variable operating performance, given the impact of weather-related losses that weakened operating results in recent years relative to their historical levels. In addition, the pool maintains above-average exposure to affiliated investments and commercial real estate assets compared to the overall property/casualty peer group. In addition, the pool’s ratings reflect the potential strain on capital and resources from the run-off of variable annuity (VA) business written by the pool’s life affiliates.

The change in outlook for both The Hartford and the Hartford Insurance Pool reflects a substantial reduction in the risk associated with the VA business. Two key components of that risk reduction are the significantly increased surrender activity that has lowered the enterprise’s overall exposure to the VA business, and an expansion of The Hartford’s hedging program to include its Japanese VA business. The Hartford has historically employed a hedging program on U.S. VA risks to address equity, interest rate and market volatility risks. The expanded hedging program addresses those risks for the Japan VA block, as well as associated foreign exchange risk.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs