A.M. Best Comments on The Hartford's Intent to Sell Its Individual Life Insurance Business
A.M. Best Comments on The Hartford's Intent to Sell Its Individual Life Insurance Business
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has commented that the ratings of The Hartford Financial Services Group, Inc. (The Hartford) (Hartford, CT) [NYSE: HIG] and its subsidiaries will remain under review with developing implications following the recent announcement that it has signed a definitive agreement to sell its individual life business to Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU] for a cash ceding commission of $615 million. The sale is expected to close in the first quarter of 2013, subject to regulatory approvals.
The announced transaction remains consistent with The Hartford's strategy to focus on its property/casualty, group benefits and mutual funds businesses as outlined by management in early 2012. Upon the close of the announced sales of Woodbury Financial Services, its retirement plans business and its individual life business, The Hartford will have successfully executed its announced restructuring and will move forward with a strategy centered on its core strengths.
A.M. Best will continue to monitor developments regarding The Hartford's restructuring and discuss with management its future capital plans, including any deployment of proceeds from the sales of non-core businesses, to facilitate removing its ratings from under review.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visitwww.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
A.M. Best Co.
Ken Johnson, CFA—L/H, 908-439-2200, ext. 5056
Managing Senior Financial Analyst
ken.johnson@ambest.com
or
Gordon McLean—P/C, 908-439-2200, ext. 5304
Senior Financial Analyst
gordon.mclean@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
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