Background
There are two types of ratings which agencies typically issue:
1) Financial strength ratings - assess an insurer's ability to meet its financial obligations to policyholders.
2) Debt ratings - assess a company's prospects for repaying its debts and assist lenders in setting interest rates and terms for a company's commercial paper, loans, bonds, etc.
Ratings agencies examine a wide range of important factors:
Quantitative financial performance — profit margins, financial leverage, liquidity, cash flows, capital and surplus ratios.
Qualitative judgments — underwriting cycle, competitive environment, regulatory and political factors, soundness of reinsurance, reserves, quality of invested assets, management experience and accomplishments.
Agencies that rate The Hartford and its entities:
A.M.Best is the oldest provider of insurance ratings and financial data exclusively focused on the insurance industry.
Moody's is a leading global credit provider of credit ratings, research and risk analysis with over 100 years of experience.
S&P Global Rating, formerly known as Standard & Poor's Ratings Services, has been a leading provider of credit ratings, research, and thought leadership for more than 150 years.
For additional information, please see:
www.ambest.com
www.moodys.com
www.standardandpoors.com