Global credit ratings agency AM Best has upgraded the Issuer Credit Ratings (Long-Term ICR) of The Hartford Financial Services Group, Inc. (The Hartford) and its subsidiaries.
To break it down, AM Best has revised the outlook to positive from stable for the Long-Term ICRs and affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of The Hartford Financial Services Group, Inc. (The Hartford) , which is the ultimate parent of the companies hereinafter mentioned.
At the same time, the agency has also revised the outlooks to positive from stable for the Long-Term ICR and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Hartford Fire Insurance Company, and its pooling subsidiaries and affiliates, as well as Hartford Life and Accident Insurance Company. and Navigators Insurance Company, collectively known as the Hartford Insurance Group.
The outlook of the FSR is stable.
From what we understand, the ratings of the Hartford Insurance Group reflect its balance sheet strength, which Best assesses as strongest.
The agency also cited the groups adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Furthermore, Best’s revision of the outlook to positive for the Long-Term ICRs reflects the organisations overall return metrics that have been consistent in recent years and compare favorably with peers and to the overall industry, despite macroeconomic pressures and catastrophic events.
It is worth addressing, that the organisation has reported favorable top and bottom-line growth reflecting rate actions, new product implementation and expense efficiencies within recent years.
As well as this, the organisation also posted favorable combined ratios across all core lines of business through the first quarter of 2024.
AM Best stated that the company’s Group Benefits segment continues to provide favorable results and overall diversity to the enterprise.
Moreover, AM Best notes that strong contributions across all core lines of business reflect the Hartford’s diverse distribution channels and product offerings. The company’s brand and market presence are also said to be notable factors that are supporting its favorable business profile assessment.
AM Best concludes by stating that it views Hartford’s ERM capabilities as well-matched to its overall risk profile.
