Connecticut Insurance Commissioner Thomas Sullivan said he will not discuss requests The Hartford Financial Services Group said it submitted to seek relief from certain capital requirements.
In a conference call Friday, Hartford Chief Financial Officer Lizabeth H. Zlatkus said the company requested "AG39 relief from our year-end reserve calculation from the Connecticut Department of insurance."
AG39, according to Hartford spokesperson Shannon Lapierre, is a variable annuity cash flow test requirement.
Ms. Zlatkus also said the company submitted a permitted practice request related to the admissibility of deferred tax assets.
"If both requests are approved, they could provide a benefit of as much as 75 RBC [risk-based capital] points" for the company's life operations.
Problems on the life side for The Hartford could impact property-casualty operations, Moody's noted yesterday in downgrading the company's ratings. The rating agency said while core underwriting profitability remains "very good" for p-c subsidiaries, there is the potential of capital strain associated with the support of the life insurance operations.
Ms. Lapierre said The Hartford's request to the insurance department is under consideration.
A statement by Mr. Sullivan read, "I would like nothing more than to be able to discuss this. Unfortunately, however, the law prohibits me and other commissioners from doing so."
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