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Press release from Business Wire

A.M. Best Comments on The Hartford's Intent to Sell Its Retirement Plans Business

Friday, September 07, 2012

A.M. Best Comments on The Hartford's Intent to Sell Its Retirement Plans Business16:06 EDT Friday, September 07, 2012 OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has commented that the ratings of The Hartford Financial Services Group, Inc. (The Hartford) (Hartford, CT) [NYSE: HIG] and its subsidiaries will remain under review with developing implications following the recent announcement that the company has signed a definitive agreement to sell its retirement plans business to Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA) for a cash ceding commission of approximately $400 million. The sale is expected to close by the end of 2012, subject to regulatory approvals. The announced transaction remains consistent with The Hartford's strategy to focus on its property/casualty group benefits and mutual funds businesses as outlined by management in early 2012. Upon the close of the announced sales of Woodbury Financial Services and its retirement plans business as well as the previously announced intention to sell its individual life business, The Hartford will have successfully executed its announced restructuring and will move forward with a strategy centered on its core strengths. A.M. Best believes that the basis for the under review status remains intact as the retirement plans transaction itself does not have a significant impact on The Hartford's overall financial condition. A.M. Best will continue to monitor developments regarding The Hartford's restructuring and discuss with company management its future capital plans, including any deployment of proceeds from the sales of non-core businesses, to facilitate removing its ratings from under review. The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Ken Johnson, CFA,908-439-2200, ext. 5056Managing Senior Financial Analystken.johnson@ambest.comorGordon McLean,908-439-2200, ext. 5304Senior Financial Analystgordon.mclean@ambest.comorRachelle Morrow, 908-439-2200, ext. 5378Senior Manager, Public Relationsrachelle.morrow@ambest.comorJim Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.com