Hartford Fi­nan­cial’s fi­nan­cial out­look pos­i­tive

The Pak Banker - - 6BUSINESS -

NEW YORK: Credit rat­ing agency Moody's has af­firmed the debt rat­ings (Baa3 se­nior) of The Hartford Fi­nan­cial Ser­vices Group and the in­sur­ance fi­nan­cial strength (IFS) rat­ings of its on­go­ing property & ca­su­alty (P&C) and Hartford Life & Ac­ci­dent In­sur­ance Com­pany op­er­at­ing sub­sidiaries. The out­look on these en­ti­ties has been changed to pos­i­tive from sta­ble. In the same ac­tion, Moody's down­graded the IFS rat­ing of Hartford Life In­sur­ance Co. (HLIC) to Baa2 from A3 to re­flect the re­cent re­struc­tur­ing of this en­tity, which now con­sists pri­mar­ily of run-off busi­ness. Moody's also af­firmed the Baa2 IFS rat­ing of the run-off com­pa­nies, Hartford Life and An­nu­ity Com­pany and of the First State Group. Ac­cord­ing to Moody's lead an­a­lyst Paul Bauer, "The pos­i­tive out­look on The Hartford re­flects the com­pany's grad­ual de-risk­ing of its busi­ness pro­file, par­tic­u­larly the group's legacy vari­able an­nu­ity busi­ness, and our ex­pec­ta­tion of an on­go­ing grad­ual de­cline in these long-term li­a­bil­i­ties." The an­a­lyst added that "The Hartford's credit pro­file is char­ac­ter­ized by a strong, well di­ver­si­fied P&C oper­a­tion with a good po­si­tion in group ben­e­fits and mu­tual funds, off­set by lin­ger­ing legacy risks as­so­ci­ated with the group's run-off op­er­a­tions."

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