Fitch Comments on Hartford's Announcement of Agreement to Sell Its Japan Unit

  Fitch Comments on Hartford's Announcement of Agreement to Sell Its Japan
  Unit

Business Wire

CHICAGO -- April 28, 2014

Hartford Financial Services Group, Inc. (HFSG) announced this morning that it
has reached a definitive agreement to sell Hartford Life Insurance K.K.
(HLIKK) to a subsidiary of Orix Corporation, a publicly held international
financial services organization based in Tokyo, Japan, for consideration of
approximately $895 million. HLIKK houses HFSG's Japan annuity operations, the
sale of which will, with the exception of reinsurance on approximately $1.1
billion of fixed payout annuities written by HLIKK, result in HFSG's exit from
the Japan market.

Despite the GAAP loss incurred by HFSG on the sale, Fitch views the
elimination of the company's exposure to the Japan variable annuity business
as a considerable offsetting factor. The sale of this unit is in line with
management's stated objective of refocusing HFSG on its ongoing property
casualty, group benefits and mutual fund businesses.

HFSG estimates that the sale of HLIKK, which is expected to close in July
2014, will result in a GAAP loss of approximately $675 million and a
substantial statutory capital benefit generated by the sales proceeds and a
release of capital backing reserves reinsured by HFSG's U.S. life insurance
subsidiaries.

Fitch affirmed the ratings of HFSG and most of its operating subsidiaries on
April 22, 2014. Concurrently, Fitch upgraded the Insurer Financial Strength
(IFS) rating of Hartford Life and Accident Insurance Company (HLA) to 'A' from
'A-', and downgraded the IFS ratings of Hartford Life Insurance Company (HLIC)
and Hartford Life and Annuity Insurance Company (HLAIC) to 'BBB+' from 'A-'.
HFSG's ratings have a Stable Outlook. All of these rating actions incorporated
the potential for the sale of HFSG's Japan operations with terms that did not
violate the rating sensitivities that Fitch cited in the associated Rating
Action Commentary on April 22. Fitch views the terms of the transaction
announced today to be within expectations.

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

Applicable Criteria and Related Research:

--Insurance Rating Methodology (Nov. 13, 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723072

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Contact:

Fitch Ratings
Primary Analyst
Martha M. Butler, CFA
Senior Director
+1-312-368-31911
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
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Bradley S. Ellis, CFA
Director
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or
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