The Hartford 2008 Annual Report Download - page 320

Table of Contents
Ratings
Ratings are an important factor in establishing the competitive position in the insurance and financial services marketplace.
There can be no assurance that the Company’s ratings will continue for any given period of time or that they will not be
changed. In the event the Company’s ratings are downgraded, the level of revenues or the persistency of the Company’s
business may be adversely impacted.
On December 23, 2008, A.M. Best affirmed the financial strength rating of A+ of the key life and property/casualty
subsidiaries and downgraded the senior debt ratings to a- from a. The outlook assigned to the ratings is negative.
On February 6, 2009, Moody’s downgraded the senior debt ratings to Baa1 from A3 and the insurance financial strength
ratings for the Company’s lead property and casualty and life insurance operating companies to A1 from Aa3. The ratings
outlook is negative.
On February 9, 2009, S&P lowered its debt rating on The Hartford Financial Services Group Inc. to A- from A. At the same
time, it placed all ratings, including the financial strength ratings, on credit watch with negative implications.
On February 9, 2009, Fitch Ratings downgraded the senior debt ratings to BBB from A-. Fitch also downgraded the insurer
financial strength ratings of our primary life insurance subsidiaries to A from AA- and property/casualty insurance
subsidiaries to A+ from AA-. The ratings outlook is negative.
The following table summarizes The Hartford’s significant member companies’ financial ratings from the major
independent rating organizations as of February 10, 2009.
A.M. Best Fitch Standard & Poor’s Moody’s
Insurance Financial Strength Ratings:
Hartford Fire Insurance Company A+ A+ AA- A1
Hartford Life Insurance Company A+ A AA- A1
Hartford Life and Accident Insurance Company A+ A AA- A1
Hartford Life and Annuity Insurance Company A+ A AA- A1
Hartford Life Insurance KK (Japan) — — AA- —
Hartford Life Limited (Ireland) — — AA- —
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt a- BBB A- Baa1
Commercial paper AMB-1 F2 A-2 P-2
Junior subordinated debentures bbb BBB- BBB Baa2
Hartford Life, Inc.:
Senior debt a- BBB A- Baa1
Hartford Life Insurance Company:
Short term rating — — A-1+ P-1
Consumer notes a+ A- AA- A2
These ratings are not a recommendation to buy or hold any of The Hartford’s securities and they may be revised or revoked
at any time at the sole discretion of the rating organization.
The agencies consider many factors in determining the final rating of an insurance company. One consideration is the
relative level of statutory surplus necessary to support the business written. Statutory surplus represents the capital of the
insurance company reported in accordance with accounting practices prescribed by the applicable state insurance
department.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009