A.M. Best Places Debt Ratings of Hartford Financial and Hartford Life Under Review.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 28, 2003

A.M. Best Co. has placed under review the commercial paper and debt ratings of Hartford Financial Services Group, Inc. (The Hartford) (NYSE: HIG) and Hartford Life, Inc. (both located in Hartford, CT).

These ratings were also assigned negative implications. Concurrently, the financial strength ratings of The Hartford's various life and property/casualty subsidiaries remain unaffected. On December 16, 2002, all of The Hartford's financial strength and debt ratings were affirmed.

This under review status follows The Hartford's announcement that they are commencing a comprehensive ground up study of the company's asbestos loss reserves expected to be completed prior to the end of second quarter 2003. While the company has not provided an indication, A.M. Best expects The Hartford Insurance Pool to record a sizable reserve charge. As a result, The Hartford is expected to raise capital--either debt or equity--to replenish surplus. Therefore, holding company cash needs--including interest expense and shareholder dividends--are expected to increase and cash flow to cover holding company expenses to decrease beyond A.M. Best's near-term expectations. The Hartford's financial leverage, while decreasing over the past few years, has historically been at the high end of A.M. Best's tolerance for its ratings. Of greater concern, however, has been The Hartford's low level of holding company liquidity and dependence on a consistent cash flow from its subsidiaries. Based on future cash flow concerns, A.M. Best has placed the company's debt ratings under review with negative implications. A.M. Best plans to reevaluate these ratings soon after the company's second quarter 2003 announcement and details of the completed asbestos reserve evaluation.

The commencement of this study follows The Hartford's statement in July 2002 of a $600 million increase to asbestos and environmental (A&E) reserves by reallocating a like amount from "all other" reserves. At that time, A.M. Best stated that given the uncertainty regarding A&E, reserve adequacy remained a concern, and that concern was reflected in the company's ratings. A.M. Best's current rating already incorporates a sizeable A&E reserve shortfall in the evaluation of capitalization. Any potential reserve increase resulting from the study is likely to fall within that estimate. Including the estimation of reserve shortfall, A.M. Best believes the surplus of The Hartford's property/casualty operations is comfortably consistent with an A+ (Superior) financial strength rating. Should a prospective charge exceed A.M. Best's internal estimate, the financial strength ratings could be adversely affected.

For a list of The Hartford Financial Services Group Inc. and Hartford Life, Inc.'s debt ratings, please visit www.ambest.com/press/hartfordfinanciallife.pdf.

For a list of Hartford Life, Inc.'s debt and financial strength ratings, please visit http://www.ambest.com/press/hartford.pdf.

For a list of The Hartford Insurance Pool and The Hartford Financial Services Group, Inc.'s debt and financial strength ratings, please visit http://www.ambest.com/press/hartfordfinancial.pdf.

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.