NU Online News Service, April 13, 2:55 p.m. EDT
A.M. Best Co. has revised The Hartford Financial Services Group's outlook to stable from negative, reflecting the "financial strength and creditworthiness" of the company's property and casualty and life operating companies.
The Oldwick, N.J.-based rating agency also notes the "numerous steps the organization has taken to improve capital and liquidity in recent years, including the repayment of $3.4 billion of fixed-rate cumulative perpetual preferred stock to the U.S. Dept. of the Treasury on March 31, 2010." A.M. Best adds that The Hartford has adequate cash and short-term securities at the holding company level, and also has access to a $1.9 billion credit facility that expires in 2012 and a $500 million prefunded contingent capital facility that expires in 2067.
A.M. Best also affirmed the financial strength rating of The Hartford's key P&C insurance subsidiaries (called the Hartford Insurance Pool). "The ratings of the Hartford Insurance Pool acknowledge its solid risk-adjusted capitalization, strong underwriting fundamentals, continued core operating profitability and excellent business position within the [P&C]industry," says Best.
The strengths, Best adds, are "somewhat offset by Hartford Insurance Pool's above-average exposure to asset classes related to commercial real estate in comparison to the overall [P&C] industry, and continued soft market conditions throughout most commercial lines."
However, Best says that the pool is well positioned to manage challenging market dynamics.
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