Hartford Financial Services Group
The Hartford winds down life insurance operationsPosted by RJ and Makay on Mar 21, 2012 |
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Hartford Financial Services Group (HIG) Inc’s plan to exit a large portion of its life insurance business has prompted a Standard & Poor’s (S&P) Rating Services downgrade of subsidiaries previously aggregated under Hartford Life, Standard & Poor’s announced today. The agency is assigning individual ratings and outlooks for each legal entity. HIG intends to shift focus to its property & casualty insurance, group benefits and mutual fund business.
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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.
The recent spotlight on Transatlantic Holdings is drawing fresh attention to the reinsurance business. The potential for lucrative fees and quick returns has long made the sector a darling of Wall Street. In a typical year, reinsurers collectively write about $100 billion in new premiums. The amount earned ultimately hinges on the number and scope of major disasters.
