AM Best Assigns Indicative Issue Credit Ratings to The Hartford Financial Services Group, Inc.’s New Shelf Registration

Rhea-AI Summary

AM Best has assigned indicative Long-Term Issue Credit Ratings of “a-” (Excellent) for senior unsecured issues, “bbb+” (Good) for senior subordinated issues, and “bbb” (Good) for junior subordinated and preferred stock to The Hartford Financial Services Group’s (HIG) newly filed shelf registration. The outlook for these ratings is stable. The Hartford’s adjusted financial leverage stood at 20.3% at year-end 2021, aligned with targets, and saw favorable net operating earnings despite impacts from COVID-19 in its Group Benefits segment.

Positive

• Long-Term Issue Credit Ratings of 'a-' (Excellent) assigned to senior unsecured issues.
• Stable outlook for the assigned Credit Ratings.
• Adjusted financial leverage at 20.3%, within company targets.
• Favorable net operating earnings results for 2021.

Negative

• Impacts from COVID-19 on mortality in the Group Benefits segment.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned indicative Long-Term Issue Credit Ratings of “a-” (Excellent) to senior unsecured issues, “bbb+” (Good) to senior subordinated issues, and “bbb” (Good) to both junior subordinated and preferred stock to the recently filed shelf registration of The Hartford Financial Services Group, Inc. (The Hartford) (Delaware) [NYSE: HIG]. The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings on the previous shelf registration, which expired. The existing ratings of The Hartford and its insurance subsidiaries are unchanged.

The Hartford’s adjusted financial leverage, as calculated by AM Best, was at 20.3% at year-end 2021, which remain well within the company’s targets. Earnings before interest, preferred dividends and taxes interest coverage has been within AM Best’s expectations. The company’s 2021 net operating earnings results were favorable to prior year, despite some impact from the COVID-19 pandemic on mortality within its Group Benefits segment.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005783/en/

Kate Steffanelli

Associate Director

+1 908 439 2200, ext. 5063

kate.steffanelli@ambest.com

Michael Lagomarsino, CFA, FRM

Senior Director

+1 908 439 2200, ext. 5810

michael.lagomarsino@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best

FAQ

What are the new credit ratings assigned to HIG by AM Best?

AM Best assigned 'a-' (Excellent) for senior unsecured issues, 'bbb+' (Good) for senior subordinated issues, and 'bbb' (Good) for junior subordinated and preferred stock.

What is the outlook for The Hartford's credit ratings?

The outlook for The Hartford's credit ratings is stable.

What was The Hartford's adjusted financial leverage at year-end 2021?

The Hartford's adjusted financial leverage was 20.3% at year-end 2021.

Did The Hartford experience any impacts from COVID-19?

Yes, The Hartford noted some impact from COVID-19 on mortality within its Group Benefits segment.

Is AM Best's rating for The Hartford's insurance subsidiaries unchanged?

Yes, the existing ratings of The Hartford and its insurance subsidiaries remain unchanged.