Updated from 9:35 a.m. EST
The Hartford Services Group
on Monday set out to reassure investors about its capital level, as the insurer battles intensifying credit crisis-related woes.
The company, in a filing with the
Securities and Exchange Commission
, said it had $2 billion more than it needed to maintain an AA ratings at year-end. That's down from $3.5 billion as of Oct. 6, due to a steep drop in the
S&P 500 Index
Moody's Investor Service later in the day affirmed the Aa3 insurer financial strength rating for the company's property and casualty and life insurance operating companies. The rating agency, however, downgraded the company's senior unsecured debt and short-term debt ratings.
"The Hartford is financially strong and well capitalized," Chairman and CEO Ramani Ayer said in a company statement. "The company's
risk-based capital ratio, including a number of provisions, is estimated to be above 400% at year-end S&P 500 levels of 900. Our capital position is more than sufficient for current market conditions and in the event markets deteriorate further."
Ayer said the company has access to other sources of capital -- including the parent company and the property and casualty subsidiaries, a $500 million contingent capital facility and a $1.9 billion bank credit facility -- should "market conditions become more severe."
The Hartford also received a $2.5 billion capital infusion from
Fitch Ratings on Friday cut the issuer default rating of the Hartford to A from A+ and its senior debt rating to A- from A. The ratings agency cited market conditions and a decline in the insurer's variable
Shares were up 53.7% to $15.86 in recent trading.
This article was written by a staff member of TheStreet.com.