Moody's affirms Hartford Financial ratings

Moody's Investors Service said it has affirmed both Hartford Life Inc.'s and its parent's, Hartford Financial Services Group, debt ratings (senior at A3), as well as the Aa3 insurance financial strength ratings of its operating subsidiaries, following its announced plans to acquire CNA's group life and disability insurance business.

The block of business has been reinsured into CNA Life and Accident (unrated by Moody's), and will be acquired by Hartford Life and Accident Insurance Co. The existing negative rating outlook for Hartford Life Inc. and Hartford Financial and their life operating companies remains unchanged.

Moody's said that the rationale for its rating affirmation is that the transaction will not increase the financial leverage of either Hartford Financial or Hartford Life, based on Hartford Financial's capital raising plans, and that there are significant operational synergies as well as complementary distribution benefits between Hartford Life and the acquired business.

Hartford Life will pay CNA about $500 million in cash for the acquired company, and it is anticipated that the transaction will be completed close to year-end 2003.

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