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S&P Global Ratings, a provider of independent credit ratings and financial analysis, has upgraded The Hartford Insurance Group and its core subsidiaries, citing consistent results and stronger capital resiliency.
The Hartford, a US insurer known for its property and casualty coverage as well as employee benefits, has seen its financial strength and issuer credit ratings raised to ‘AA-’ from ‘A+’, while the long-term issuer credit rating on the holding company was lifted to ‘A-’ from ‘BBB+’. S&P assigned a stable outlook.
The ratings firm explained that The Hartford’s underwriting performance now compares favourably with higher-rated peers.
According to S&P, disciplined risk management, effective underwriting governance, and advanced pricing strategies have allowed The Hartford to deliver reliable results across market cycles with lower volatility than many competitors.
S&P added that strong profitability has bolstered The Hartford’s capital position, ensuring buffers are in place to absorb severe stress scenarios.
The agency expects this resiliency to remain intact through 2027. Even with challenges such as natural catastrophe losses, social inflation, and exposure to long-tail claims, Hartford’s earnings profile and diversified operations have strengthened its credit standing.
In its review, S&P highlighted the company’s prominent role in the US P&C market, where it reported improved underwriting profitability in 2024 with a combined ratio of 93.2 percent. Its business insurance division, which accounts for the bulk of premiums, posted an even stronger result at 89.9 percent.
Personal insurance also showed marked improvement, narrowing losses from prior years. Despite wildfire claims in early 2025, S&P noted that The Hartford’s overall property and casualty performance continued to improve, demonstrating the effectiveness of its strategies.
S&P also underscored The Hartford’s diversified earnings streams, which include employee benefits and mutual funds alongside property and casualty insurance.
This balance, combined with solid capital adequacy at the 99.95 percent stress level under S&P’s model, supports the group’s overall stability. The agency observed that The Hartford’s leverage and coverage ratios, with financial leverage at 24.7 percent and fixed-charge coverage at 19.1 times at year-end 2024, remain comfortably within expectations.
In its outlook, S&P stated that it expects Hartford to maintain its competitive standing while continuing to produce strong underwriting performance.
A downgrade could occur if earnings or capital adequacy weaken significantly, while an upgrade is unlikely in the near term unless the company advances to a level comparable with higher-rated peers.
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