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

The rating agency also affirmed The Hartford’s Long-Term ICR at ‘a-‘ (Excellent) and Long-Term IR (Long-Term IR).

Additionally, AM Best revised the outlook to positive from stable for the long-term ICR of Hartford Fire Insurance Company and its subsidiaries, as well as Hartford Life and Accident Insurance Company and Navigators Insurance Company.

These companies, known collectively as The Hartford Insurance Group, maintain a Financial Strength Rating (FSR) of A+ (Superior) and a Long-Term ICR of “aa-” (Outperform). The outlook for the FSR Fund remains stable.

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

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The outlook revision to positive for long-term ICRs is attributable 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 reported positive growth at the top and bottom lines, reflecting pricing actions, new product implementations, and expense efficiencies. Furthermore, the company also reported favorable combined ratios across all core business lines during the first quarter of 2024. AM Best highlights the Group Benefits segment for its continued positive results and contribution to the overall organization’s diversity.

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

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

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