AM Best Upgrades Issuer Credit Ratings of The Hartford Insurance Group, Inc. and Its Subsidiaries

Published: 2025-07-07 04:58:07 ET HIG

Published on 07/07/2025 at 04:58

AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to 'a' (Excellent) from 'a-' (Excellent) and upgraded the Long-Term Issue Credit Ratings (Long-Term IR) of The Hartford Insurance Group, Inc. (The Hartford) (Delaware) [NYSE: HIG], which is the ultimate parent of the companies hereinafter mentioned.

In addition, AM Best has upgraded the Long-Term ICR to 'aa' (Superior) from 'aa-' (Superior) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) of Hartford Fire Insurance Company (Hartford, CT) and its pooling subsidiaries and affiliates, as well as Hartford Life and Accident Insurance Company (Hartford, CT) and Navigators Insurance Company (New York, NY), collectively known as the Hartford Insurance Group. The outlooks of the Long-Term ICRs have been revised to stable from positive, while the outlooks of the FSRs are stable. (See below for a detailed listing of the companies and the Long-Term IRs.)

The Credit Ratings (ratings) of the Hartford Insurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The group's balance sheet assessment continues to be anchored by its strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Additionally, The Hartford's financial leverage has shown a well managed trend over the last five years, and the organization maintains significant financial flexibility through access to its $750 million five-year revolving credit facility, as well as its membership with Federal Home Loan Bank of Boston. The organization has been proactively managed through the challenging rate environment of recent years resulting in a durable investment portfolio, which is highly rated and well diversified. In addition, the organization has a strong track record of generating good net cash flows and maintaining more than adequate overall liquidity to support its business needs.

Hartford Insurance Group's consistent operating performance has been trending positive in recent years due to the strength of its brand and reputation, as well as its diversified distribution and products across its various segments. Operating metrics continue to be in line with, or have exceeded, its peers and similarly rated companies in recent years. Most recently, Hartford reported double-digit premium growth in its core property/casualty lines of business, reflecting sales growth and pricing actions in certain lines of business. Separately, the employee benefits segment continues to provide a steady stream of income driven by the growth in fully insured ongoing premiums and a lower expense ratio. The Hartford Insurance Group continues to work to enhance its risk management expertise further, which is appropriate for the support of its investments, operations and insurance-related risks.

The Long-Term ICRs have been upgraded to 'aa' (Superior) from 'aa-' (Superior) while the FSRs of A+ (Superior) have been affirmed, with the outlooks of the Long-Term ICRs revised to stable from positive and the outlooks of the FSRs maintained at stable, for the following subsidiaries of The Hartford Insurance Group, Inc.:

Hartford Fire Insurance Company

Hartford Accident and Indemnity Company

Hartford Insurance Company of Illinois

Hartford Casualty Insurance Company

Hartford Underwriters Insurance Company

Pacific Insurance Company, Limited

Twin City Fire Insurance Company

Nutmeg Insurance Company

Hartford Insurance Company of the Midwest

Hartford Insurance Company of the Southeast

Hartford Life and Accident Insurance Company

Property and Casualty Insurance Company of Hartford

Trumbull Insurance Company

Sentinel Insurance Company, Ltd.

Hartford Lloyd's Insurance Company

Navigators Insurance Company

Navigators Specialty Insurance Company

Maxum Indemnity Company

Maxum Casualty Insurance Company

The following Long-Term IRs have been upgraded, with the outlooks revised to stable from positive:

The Hartford Insurance Group, Inc. -

to 'a' (Excellent) from 'a-' (Excellent) on $600 million 2.8% senior unsecured notes, due 2029

to 'a' (Excellent) from 'a-' (Excellent) on $300 million 5.95% senior unsecured notes, due 2036

to 'a' (Excellent) from 'a-' (Excellent) on $300 million 6.625% senior unsecured notes, due 2040 (approximately $295 million outstanding)

to 'a' (Excellent) from 'a-' (Excellent) on $409 million 6.1% senior unsecured notes, due 2041

to 'a' (Excellent) from 'a-' (Excellent) on $425 million 6.625% senior unsecured notes, due 2042 (approximately $178 million outstanding)

to 'a' (Excellent) from 'a-' (Excellent) on $300 million 4.3% senior unsecured notes, due 2043

to 'a' (Excellent) from 'a-' (Excellent) on $500 million 4.4% senior unsecured notes, due 2048

to 'a' (Excellent) from 'a-' (Excellent) on $800 million 3.6% senior unsecured notes, due 2049

to 'a' (Excellent) from 'a-' (Excellent) on $600 million 2.9% senior unsecured notes, due 2051

to 'bbb+' (Good) from 'bbb' (Good) on $500 million floating rate junior subordinated debentures,

due 2067

to 'bbb+' (Good) from 'bbb' (Good) on $345 million 6% non-cumulative preferred stock

The following indicative Long-Term IRs on securities available under the shelf registration have been upgraded with the outlooks revised to stable from positive:

The Hartford Insurance Group, Inc.-

to 'a' (Excellent) from 'a-' (Excellent) on senior unsecured

to 'a-' (Excellent) from 'bbb+' (Good) on senior subordinated

to 'bbb+' (Good) from 'bbb' (Good) on junior subordinated

to 'bbb+' (Good) from 'bbb' (Good) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.