Fitch Ratings
A Hartford split would impact ratings: FitchPosted by RJ and Makay on Feb 21, 2012 |
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Recent public speculation about a possible split of the Hartford Financial Services Group (HFSG) into separate life and property-casualty (P/C) companies is raising questions about possible rating implications of such a move, Fitch Ratings said last week. Market perception of a possible split is largely unknown, though some investors assert that a split would improve the profitability of HFSG.
U.S. life insurers’ average annualized 2011 operating returns, excluding all realized gains and losses, came in at 1.29% at the end of the first half of 2011, according to Fitch Ratings. This compares to a gain of 1.31% for the full year 2010. The results are in line with 2009 returns, though well below 2008 and prior years’ returns in the 1.50% to 1.80% range.
Fitch Ratings announced Tuesday that it was keeping the United States’ long-term credit rating at AAA with a stable outlook. Citing the “exceptional creditworthiness” of the U.S., Fitch said it maintained the coveted AAA rating because of the country’s ability, with its broad and diverse economy, to withstand economic shocks. After the announcement, U.S. officials said government leaders must still make progress on cutting budget deficits.
