The Hartford Financial Group, in the face of falling stock prices, issued an unusual statement to reassure that its companies are doing well and it has plenty of cash.

Shares of the Hartford, Conn.-based firm, which were selling in the $79 range six months ago, were trading this afternoon in the $37 range, after closing yesterday at $40.99.

A decline in the stock price followed Fitch Ratings' announcement yesterday that it was putting the company's outlook on negative. Fitch said while the firm has capacity to address deterioration in its capital position, it takes the view that “conditions in the financial markets could experience further deterioration and thus provide additional challenges for the company.”

The company in issuing its statement said it was not normal “policy to generally comment on fluctuations in its share price.”

“We are disappointed with our recent stock performance but recognize we are living through a period of unprecedented market conditions. The Hartford's core operating businesses are performing well and our liquidity remains strong,” the firm said.

The Hartford added that it has a strong history of managing through challenging times and is “pleased that both Moody's and Fitch maintained our excellent insurance financial strength ratings at a 'double-A' level following their review. However, both agencies did change our outlook, largely due to market conditions.

“We are confident in our financial strength and in our ability to meet our commitments to customers. Nothing is more important to us than honoring those promises and maintaining our strong ratings.”

David Anthony with Argus Research Company said Fitch was “a little obtuse” in its comment” and perhaps has a “veiled concern about asset-backed securities,” so he would not react, but Argus is not recommending the stock for purchase.

The company, he said, is a different animal from American International Group, which was forced to seek a government bailout, but “anything can happen as paranoid as people are.”

Special Reports /

The Hartford Reassures After Stock Price Drops

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