A.M. Best Upgrades Ratings of The Hartford Financial Services Group, Inc.; Affirms Ratings of Hartford Insurance Pool.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the ICR to "a" from "a-", the senior debt ratings to "a" from "a-" and commercial paper rating to AMB-1 from AMB-2 of The Hartford Financial Services Group, Inc. (The Hartford) (Hartford, CT) (NYSE: HIG). Concurrently, A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of "aa-" of the Hartford Insurance Pool (The Pool) and its property/casualty members. The outlook for all ratings is stable. (See link below for a detailed list of the companies and ratings.)

The rating upgrades for The Hartford represent the use of extraordinary notching as the overall enterprise benefits from the diversification of its equally important and diverse property/casualty and life operations, which both provide strong, sustainable earnings and cash flows. This has been evidenced by the even distribution of revenues and contributions to earnings from both operations in recent years, which tend to be largely uncorrelated. Also, both the property/casualty and life operations maintain strong, market leading positions in their respective markets. In addition, The Hartford's financial leverage and coverage measures continued to improve through 2006, with an adjusted debt-to-total capital measure of approximately 18%.

The Pool's ratings reflect its superior risk-adjusted capitalization, strong core operating results, disciplined risk-management culture and excellent business position in the property/casualty insurance sector. These positive rating factors are derived from The Pool's adherence to conservative operating fundamentals and commitment to diversified underwriting and marketing strategies that provide balanced growth opportunities.

Although competition is emerging in the small and middle commercial markets, The Hartford utilizes technology, localized support and excellent service to strengthen its already formidable business position. Furthermore, The Hartford's personal lines segment benefits from its affinity market due to a long-term endorsement from the AARP. The benefits of the group's enterprise risk management culture have been a main driver of sustainable earnings generation in recent years as evidenced by The Pool's underwriting results in 2004 and 2005, despite record industry catastrophe losses.

These favorable considerations are somewhat tempered by expected margin compression driven by softening market conditions throughout the property/casualty industry. Moreover, The Pool maintains exposure, albeit substantially reduced, to emerging asbestos and environmental claims and adverse loss reserve development on older accident years. However, The Hartford conducts annual ground-up loss reserve reviews for its asbestos (second quarter) and environmental (third quarter) reserves, as well as an annual evaluation of its reinsurance recoverables. Additional offsetting attributes are The Pool's exposure to catastrophe events (natural and man-made), although it has a comprehensive reinsurance and catastrophe management program to limit its exposure to a single event.

The outlook reflects A.M. Best's view that The Hartford is well positioned to manage changing market dynamics such as reduced pricing and increased competition due to its significant depth and breadth of operations, well-balanced risk selection, effective utilization of multiple distribution channels and superior capitalization that is further bolstered by strong financial flexibility and proven access to capital markets.

In addition, A.M. Best has assigned the "bbb+" preferred stock rating to the $500 million 6.505% Glen Meadow Pass-Through Trust Securities (pass-through certificates) issued by the Glen Meadow Pass-Through Trust, a special-purpose vehicle sponsored by The Hartford. The outlook on the rating is stable. As the put counterparty, The Hartford has the option to require the trust to purchase The Hartford's junior subordinated notes at any time and from time to time in a maximum aggregate principal amount not to exceed $500 million.

For a complete listing of The Hartford Financial Services Group, Inc.'s FSRs, ICR and debt ratings, please visit www.ambest.com/press/062504hartfordpc.pdf.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.