Hartford Financial’s financial outlook positive
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."