The Hartford receives updated ratings from AM Best

The Hartford receives updated ratings from AM Best | Insurance Business America

Insurance News

Revision reflects consistent return metrics

Insurance News

By
Kenneth Araullo

AM Best has revised the outlook to positive from stable for the long-term issuer credit ratings (Long-Term ICRs) of The Hartford Financial Services Group, Inc, the ultimate parent of its subsidiaries.

The ratings agency also affirmed The Hartford’s long-term ICR of “a-” (Excellent) and the long-term issue credit ratings (Long-Term IR).

Additionally, AM Best has revised the outlook to positive from stable for the Long-Term ICR of Hartford Fire Insurance Company and its affiliates, as well as Hartford Life and Accident Insurance Company and Navigators Insurance Company.

These companies, collectively known as the Hartford Insurance Group, maintain a financial strength rating (FSR) of A+ (Superior) and long-term ICRs of “aa-” (Superior). The outlook for the FSR remains stable.

AM Best’s ratings for the Hartford Insurance Group reflect its balance sheet strength, which is assessed as the strongest, and its adequate operating performance, favorable business profile, and appropriate enterprise risk management (ERM).

The revision of the outlook to positive for the Long-Term ICRs is attributed to Hartford’s consistent return metrics over recent years, which compare favorably with peers and the overall industry, despite macroeconomic pressures and catastrophic events.

The Hartford has reported favorable top and bottom-line growth, reflecting rate actions, new product implementation, and expense efficiencies. Furthermore, the company also reported favorable combined ratios across all core lines of business through the first quarter of 2024. AM Best highlights the group benefits segment for its continued favorable results and contribution to overall enterprise diversity.

AM Best notes that the group’s financial leverage and coverage metrics remain well within expectations and that it maintains various liquidity sources, including a $750 million five-year revolving credit facility, membership with the Federal Home Loan Bank of Boston, and access to capital markets as needed.

The Hartford’s diversified and highly rated investment portfolio generates a steady stream of net investment income. Strong contributions from all core lines of business reflect Hartford’s diverse distribution channels and product offerings. The organization’s effective brand and market presence also support its favorable business profile.

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