This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs