Hartford Life Ltd (HLL), the European subsidiary of US insurance and investment firm Hartford Life, has received an AA financial strength rating from Standard & Poor's (S&P).
HLL launched into the UK market last week with its sole product, a unit-linked bond aimed at the retirement and long-term savings market featuring underlying funds from Fidelity, Schroders, Invesco Perpetual, Investec, New Star and BGI.
According to S&P, the outlook for the firm is stable and the rating is based primarily on a support agreement from Hartford's parent company, which has already established itself as a provider of retirement products in the US and Japan.
The rating agency added that the AA status is a reflection of HLL's "prudent capitalisation and business plans, sophisticated risk management and strong financial flexibility, all of which stem from the backing of Hartford Life."
Given what S&P sees as the relatively low investment risks and associated capital requirements of unit-linked products and the "appropriate hedging of optional investment guarantees using Hartford Life's proven expertise," it expects HLL to maintain appropriate capitalisation as its business grows."
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