AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of The Hartford Financial Services Group, Inc. (The Hartford) (Delaware) [NYSE: HIG], which is the ultimate parent of the companies hereinafter mentioned. AM Best also has revised the outlooks to positive from stable for the Long-Term ICR and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of “aa-” (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 outlook of the FSR is stable. (See below for a detailed listing of the companies and 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 adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The revision of the outlook to positive for the Long-Term ICRs reflects Hartford’s overall return metrics that have been consistent in recent years and compare favorably with peers and to the overall industry, despite macroeconomic pressures and catastrophic events. The organization has reported favorable top and bottom-line growth reflecting rate actions, new product implementation and expense efficiencies in recent years. Furthermore, Hartford reported favorable combined ratios across all core lines of business through the first quarter of 2024. AM Best notes that the organization’s Group Benefits segment continues to provide favorable results and overall diversity to the enterprise.

The organization’s balance sheet strength assessment reflects its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its favorable liquidity and financial flexibility. AM Best notes that the group’s financial leverage and coverage metrics remain well within expectations and that it continues to maintain various liquidity sources through its $750 million five-year revolving credit facility, membership with the Federal Home Loan Bank of Boston and access to capital markets as needed. Hartford maintains a diversified and highly rated investment portfolio, generating a steady stream of net investment income. Strong contributions across all core lines of business reflect the Hartford’s diverse distribution channels and product offerings. Additionally, the organization’s effective brand and market presence are notable factors supporting its favorable business profile assessment. AM Best views Hartford’s ERM capabilities as well-matched to its overall risk profile.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with the outlooks of the Long-Term ICRs revised to positive from stable, while the outlook of the FSR is stable, for the following subsidiaries of The Hartford Financial Services 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 affirmed with the outlooks revised to positive from stable:

The Hartford Financial Services Group, Inc. —

-- “a-” (Excellent) on $600 million 2.8% senior unsecured notes, due 2029

-- “a-” (Excellent) on $300 million 5.95% senior unsecured notes, due 2036

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

-- “a-” (Excellent) on $409 million 6.1% senior unsecured notes, due 2041

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

-- “a-” (Excellent) on $300 million 4.3% senior unsecured notes, due 2043

-- “a-” (Excellent) on $500 million 4.4% senior unsecured notes, due 2048

-- “a-” (Excellent) on $800 million 3.6% senior unsecured notes, due 2049

-- “a-” (Excellent) on $600 million 2.9% senior unsecured notes, due 2051

-- “bbb” (Good) on $500 million floating rate junior subordinated debentures, due 2067

-- “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 affirmed with the outlooks revised to positive from stable:

The Hartford Financial Services Group, Inc.—

-- “a-” (Excellent) on senior unsecured

-- “bbb+” (Good) on senior subordinated

-- “bbb” (Good) on junior subordinated

-- “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. For more information, visit www.ambest.com.

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