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A.M. Best Assigns Issue Credit Rating to The Hartford Financial Services Group, Inc.’s New Preferred Stock

OLDWICK, N.J.--(BUSINESS WIRE)--

A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to the $300 million 6.0% non-cumulative preferred stock, Series G recently issued by The Hartford Financial Services Group, Inc. (The Hartford) (headquartered in Hartford, CT) [NYSE: HIG]. The outlook assigned to this Credit Rating (rating) is stable.

Following the preferred stock issuance, financial leverage will remain within guidelines for the assigned rating. Coverage metrics historically have been within guidelines, but deteriorated in 2017 as a result of various one-time charges. A.M. Best expects coverage metrics to improve in 2018 and be within guidelines. The Hartford intends to use the net proceeds of the offering for various purposes, which may include repayment of its 6.0% senior unsecured notes due Jan. 15, 2019, the acquisition of The Navigators Group, Inc., and general corporate purposes, such as for interest on debt and common stockholders’ dividends.

The Hartford’s Long-Term Issuer Credit Rating of “a-”, its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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