HARTFORD LIFE AND ACCIDENT INSURANCE , HARTFORD LIFE INSURANCE, ITT HARTFORD LIFE AND ANNUITY CLAIMS PAYING ABILITY RATINGS REAFFIRMED 'AAA'
CHICAGO, May 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the `AAA' (Triple-A) claims paying ability rating of Hartford Life and Accident Insurance Company, Hartford Life Insurance Company and ITT Hartford Life and Annuity Insurance Company (Hartford Life Companies). The ratings reflect the companies' significant market position in several business lines, as well as, the consolidated entity's consistent profitability, conservative investment portfolio, and strong capital position. The Hartford Life Companies are owned by The Hartford Fire Insurance Company and represent the life insurance operations of the ITT Hartford Group a multi-line insurance holding company, which is a wholly owned subsidiary of ITT Corp. Consolidated statutory admitted assets for the Hartford Life Companies were $22.6 billion at year end 1992 and adjusted surplus was $888 million. Premium and deposits for 1992 were divided as follows: group pension-39.1 percent, individual annuities-29.1 percent, individual life & health-17.3 percent, and group life & health-14.5 percent. Net premium and deposit volume increased by 29 percent in 1992 to $7.0 billion. The majority of this growth was attributable to the individual annuity line and the acquisition of Mutual Benefit Life's corporate-owned life insurance (COLI) business. Statutory after-tax operating income declined to $59.1 million in 1992 from $77.9 million in 1991 due to a large increase in federal income taxes incurred. This decline was offset by a significant increase in realized capital gains which were $70.2 million in 1992 compared with $31.8 million in 1991. At year end 1992, invested assets were concentrated in bonds (87 percent of total invested assets), policy loans (7 percent), and cash and short-term investments (3 percent). The bond portfolio is of very high quality as 99 percent of the portfolio is rated investment grade. The firm has very little investment exposure to mortgage loans and real estate. Operating leverage, as measured by the ratio of adjusted liabilities to surplus increased somewhat in 1992 to 15.0 times. This increase was due to the high level of growth experienced in 1992. Operating leverage is still below historical norms as the life insurance subsidiaries received two large capital contributions from the parent in 1990 and 1991 to fund future growth. -0- 5/21/93 /CONTACT: James B. Auden of Duff & Phelps Credit Rating Co., 312-368-3146/ (ITT)
CO: Hartford Life and Accident Insurance Company ST: Connecticut IN: INS SU: RTG
TM -- NY057 -- 1315 05/21/93 16:29 EDT
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|Date:||May 21, 1993|
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