Fitch Rates Hartford's Senior Debt 'BBB'

  Fitch Rates Hartford's Senior Debt 'BBB'

Business Wire

CHICAGO -- April 16, 2013

Fitch Ratings has assigned the following rating to Hartford Financial Services
Group, Inc.'s (HFSG) new debt issuance:

--$300 million 4.3% senior notes due 2043 'BBB'.

A full list of Fitch's existing ratings on HFSG and its primary life and
property/casualty insurance subsidiaries follows at the end of this release.
These ratings are not affected by today's action and were most recently
affirmed with a Stable Outlook by Fitch on March 19, 2013.

KEY RATING DRIVERS

The debt is being issued as part HFSG's near-term capital management
initiative, announced in February 2013, following the recent sales of its
individual life business to Prudential Financial, Inc. and its retirement
plans business to Massachusetts Mutual Life Insurance. This issuance of lower
coupon debt will be used to redeem high coupon debt as part of the company's
debt restructuring.

HFSG expects approximately $1 billion of net debt reduction over the next
year. This includes maturities in July 2013 ($320 million) and March 2014
($200 million), as well as a recently completed tender offer for $800 million
of debt. This should help the company to reduce its financial leverage and
improve its debt service with a lower overall cost of debt.

Fitch expects HFSG to maintain a financial leverage ratio at or below 25%
following the successful execution of the company's capital management
actions. HFSG's financial leverage ratio (excluding accumulated other
comprehensive income [AOCI] on fixed maturities) increased to 27.2% at Dec.
31, 2012 from 22.5% at Dec. 31, 2011, due to additional debt issued to redeem
the company's 10% junior subordinated debentures investment by Allianz SE.

HFSG's operating earnings-based interest and preferred dividend coverage has
been reduced in recent years, averaging a low 3.5x from 2008 to 2012. This
reflects both constrained operating earnings and increased interest expense
and preferred dividends paid on capital over this period. Fitch expects HFSG's
run-rate operating earnings-based interest and preferred dividend coverage to
improve to at least 5.0x, with a reduced overall level of fixed charges.

RATING SENSITIVITIES

The key rating triggers that could result in an upgrade to HFSG's debt ratings
include a financial leverage ratio maintained near 20%, maintenance of at
least $1 billion of holding company cash, and interest and preferred dividend
coverage of at least 6x. Continued success with the strategic plan and
successful seasoning of run-off operations would also be considered favorably.
Fitch considers a rating upgrade to be unlikely in the near term for HFSG's
life and property/casualty insurance subsidiaries.

The key rating triggers that could result in a downgrade include significant
investment or operating losses that materially impact GAAP shareholders'
equity or statutory capital within the insurance subsidiaries, particularly as
they relate to any major negative surprises in the runoff VA business; a
financial leverage ratio maintained above 25%; a sizable drop in holding
company cash; failure to improve interest and preferred dividend coverage; and
an inability to execute on the company's strategic plan.

Fitch currently rates HFSG and its subsidiaries as follows:

Hartford Financial Services Group, Inc.

--Long-term IDR 'BBB+';

--$320 million 4.625% notes due 2013 'BBB';

--$200 million 4.75% notes due 2014 'BBB';

--$300 million 4.0% senior notes due 2015 'BBB';

--$200 million 7.3% notes due 2015 'BBB';

--$300 million 5.5% notes due 2016 'BBB';

--$499 million 5.375% notes due 2017 'BBB';

--$325 million 4.0% senior notes due 2017 'BBB';

--$500 million 6.3% notes due 2018 'BBB';

--$500 million 6% notes due 2019 'BBB';

--$499 million 5.5% senior notes due 2020 'BBB';

--$796 million 5.125% senior notes due 2022 'BBB';

--$298 million 5.95% notes due 2036 'BBB';

--$299 million 6.625% senior notes due 2040 'BBB';

--$325 million 6.1% notes due 2041 'BBB';

--$424 million 6.625% senior notes due 2042 'BBB';

--$600 million 7.875% junior subordinated debentures due 2042 'BB+';

--$500 million 8.125% junior subordinated debentures due 2068 'BB+'.

Hartford Financial Services Group, Inc.

--Short-term IDR 'F2';

--Commercial paper 'F2'.

Hartford Life, Inc.

--Long-term IDR 'BBB';

--$149 million 7.65% notes due 2027 'BBB-';

--$92 million 7.375% notes due 2031 'BBB-'.

Hartford Life Global Funding

--Secured notes program 'A-'.

Hartford Life Institutional Funding

--Secured notes program 'A-'.

Hartford Life and Accident Insurance Company

--IFS 'A-'.

Hartford Life Insurance Company

--IFS 'A-';

--Medium-term note program 'BBB+'.

Hartford Life and Annuity Insurance Company

--IFS 'A-'.

Members of the Hartford Fire Insurance Intercompany Pool:

Hartford Fire Insurance Company

Nutmeg Insurance Company

Hartford Accident & Indemnity Company

Hartford Casualty Insurance Company

Twin City Fire Insurance Company

Pacific Insurance Company, Limited

Property and Casualty Insurance Company of Hartford

Sentinel Insurance Company, Ltd.

Hartford Insurance Company of Illinois

Hartford Insurance Company of the Midwest

Hartford Underwriters Insurance Company

Hartford Insurance Company of the Southeast

Hartford Lloyd's Insurance Company

Trumbull Insurance Company

--IFS 'A+'.

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--Insurance Rating Methodology (Jan. 11, 2013);

--Fitch Affirms Hartford's Ratings; Outlook Stable (March 19, 2013).

Applicable Criteria and Related Research

Insurance Rating Methodology - Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698731

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=788683

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Contact:

Fitch Ratings
Primary Analyst
Brian C. Schneider, CPA, CPCU, ARe, +1-312-606-2321
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
R. Andrew Davidson, CFA, +1-312-368-3144
Senior Director
or
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Julie A. Burke, CPA, CFA, +1-312-368-3158
Managing Director
or
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brian.bertsch@fitchratings.com