The Hartford 2009 Annual Report Download - page 141

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Equity Markets
For a discussion of the potential impact of the equity markets on capital and liquidity, see the Capital Markets Risk Management section
under “Market Risk”.
Ratings
Ratings are an important factor in establishing 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 January 29, 2010, Standard & Poor's Ratings Services withdrew its 'A' financial strength ratings on Hartford Life Insurance K.K. of
Japan (“HLIKK”) and Hartford Life Ltd. of Ireland (“HLL”), two international subsidiaries of The Hartford Financial Services Group
Inc., at the parent company's request.
The following table summarizes The Hartford’ s significant member companies’ financial ratings from the major independent rating
organizations as of February 22, 2010.
Insurance Financial Strength Ratings: A.M. Best Fitch Standard & Poor’s Moody’s
Hartford Fire Insurance Company A A+ A A2
Hartford Life Insurance Company A A- A A3
Hartford Life and Accident Insurance Company A A- A A3
Hartford Life and Annuity Insurance Company A A- A A3
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt
Commercial paper
bbb+
AMB-2
BBB-
F2
BBB
A-2
Baa3
P-3
Junior subordinated debentures bbb- BB BB+ Ba1
Hartford Life, Inc.:
Senior debt bbb+ BBB- BBB Baa3
Hartford Life Insurance Company:
Short term rating — — A-1 P-2
Consumer notes a BBB+ A Baa1
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.
Statutory Surplus
The table below sets forth statutory surplus for the Company’ s insurance companies. The statutory surplus amount as of December 31,
2008 in the table below is based on actual statutory filings with the applicable U.S. regulatory authorities. The statutory surplus amount
as of December 31, 2009 is an estimate, as the respective 2009 statutory filings have not yet been made.
2009 2008
Life Operations, includes domestic captive insurance subsidiaries $ 7,287 $6,046
Property & Casualty Operations, excluding non-Property & Casualty subsidiaries 7,364 6,012
Total $ 14,651 $12,058
The Company also holds regulatory capital and surplus for its operations in Japan. Using the investment in subsidiary accounting
requirements defined in the U.S. National Association of Insurance Commissioners Statements of Statutory Accounting Practices, the
Company’ s statutory capital and surplus attributed to the Japan operations was $1,311 and $1,718 as of December 31, 2009 and 2008,
respectively. However, under the accounting practices and procedures governed by Japanese regulatory authorities, the Company’ s
statutory capital and surplus was $1.1 billion as of December 31, 2009 and 2008.