A.M. Best Assigns Rating to Hartford Life's New Medium-Term Note Program.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a+" to the new unlimited medium-term note Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. program established by Hartford Life Insurance Company (Hartford Life). Hartford Life is a direct subsidiary of Hartford Life, Inc. (HLI HLI Human Life International HLI Highland Light Infantry HLI High Level Interface HLI High Layer Information HLI Hispanic Leadership Institute HLI Host Language Interface HLI Hekemian Laboratories Incorporated ), which is the holding company for the life operations of The Hartford Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group, Inc. (The Hartford) [NYSE NYSE See: New York Stock Exchange : HIG HIG Human immunoglobulin, see there ]. The rating outlook is stable. All companies listed above are domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. in Hartford, CT. Hartford Life's new medium-term note program is targeted to retail investors and provides for unlimited issuances of Hartford Life IncomeNotes(sm) and Hartford Life medium-term notes. The notes will be issued directly by Hartford Life, with the proceeds invested in a match-funded investment portfolio managed in a manner consistent with the company's other institutional spread-lending liabilities. Based on A.M. Best's analysis of the program structure, the program and notes will carry a debt rating of "a+", one notch below Hartford Life's issuer credit rating and consistent with their status as senior unsecured obligations of Hartford Life's general account. HLI's ratings reflect its formidable market positions in several life insurance and retirement savings businesses, diversified sources of revenues and earnings, broad multi-channel distribution, disciplined risk management, strong operating performance and strong capitalization. Partly offsetting these positive rating factors are the ongoing challenges of maintaining its market positions in the U.S. and Japanese variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. markets, while continuing to manage the risks associated with secondary guarantee riders through prudent product design and effective hedging. Moreover, HLI's operating results and capitalization are exposed to a potential downturn in the equity markets as roughly half of its operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before are derived from retail separate account products. A.M. Best expects the life operations to continue to maintain sound risk-adjusted capitalization in the near to medium term, primarily from solid statutory earnings, and if needed, financial support from The Hartford. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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