The Hartford Financial Services Grup Inc : A.M. Best Comments on The Hartford's Intent to Sell Its Retirement Plans Business
09/07/2012| 04:10pm US/Eastern
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 the company has
signed a definitive agreement to sell its retirement plans business to Massachusetts
Mutual Life Insurance Company (MassMutual) (Springfield, MA) for a
cash ceding commission of approximately $400 million. The sale is
expected to close by the end of 2012, 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 and its retirement
plans business as well as the previously announced intention to sell 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 believes that the basis for the under review status remains
intact as the retirement plans transaction itself does not have a
significant impact on The Hartford's overall financial condition. A.M.
Best will continue to monitor developments regarding The Hartford's
restructuring and discuss with company 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, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
A.M. Best Co.
Ken Johnson, CFA, 908-439-2200, ext.
Managing Senior Financial Analyst
McLean, 908-439-2200, ext. 5304
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
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