Update - Fitch Rates Hartford Life Insurance Co. Medium-Term Notes 'AA-'.CHICAGO -- (This is an amended version of a release issued Sept. 11, 2006, and contains updated issuance details.) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned an 'AA-' rating to Hartford Life Insurance Company's (HLIC HLIC Housing Loans Insurance Corporation (Australia) HLIC Hargovan Lakhmidas Institute of Commerce ) medium-term notes. The Rating Outlook is Stable. It is anticipated that the use of proceeds from any future medium-term note issue under the program will be used to purchase investment assets that will generate investment income in excess of amounts payable under the notes. Proceeds are not targeted for general corporate purposes. Today's rating action reflects Fitch's overall analysis of Hartford Financial Services Group, Inc. (HFSG HFSG Hartford Financial Services Group, Inc. ), which includes HLIC. Fitch currently rates the insurer financial strength rating of HLIC at 'AA'. The medium-term note program rating reflects its subordination to policyholder claims. HFSG's ratings favorably consider the organization's strong operating performance, good asset quality and broad business diversification. HFSG has favorably improved the capital quality of its operating company operating company A business that engages in transactions with outsiders. in recent years and has strengthened its overall risk management practices. The life operation, in addition to being a leading seller of variable annuities, generates earnings from multiple business lines. The ratings also consider HFSG's liability mix that includes longer tail liability insurance risks and lingering asbestos reserves. Fitch believes that HFSG does a good job managing these items, though on occasion they have incurred charges associated with these issues. Further, potential exists for future losses surrounding run-off reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and environmental liabilities. Fitch rates the following with a Stable Outlook: Hartford Life Insurance Company -- Medium-term note program 'AA-'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion