Fitch affirms Hartford

Fitch Ratings said it affirmed the BBB issuer default rating for the Hartford Financial Services Group, Inc.

The outlook is stable.

The affirmation reflects the company's reasonable financial leverage, continued favorable underwriting performance of the property/casualty group, and sizable levels of holding company cash and financial resources, according to the agency.

Ratings also reflect the company's lower level of 2011 investment related impairments and exposure to credit and investment risks, particularly in its life asset portfolio where its above-average exposure to commercial real estate-related investments is declining, the agency said.

Hartford Life has execution risk associated with its strategy to expand certain businesses such as retirement plan assets and to leverage its distribution and brand name in protection-related businesses such as life and group benefits business lines, the agency noted.

The life insurance operation also faces ongoing challenges related to its large book of in-force variable annuities with benefit guarantees in the United States and Japan, Fitch said.

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