Hartford Financial Services (HIG) rose in pre-market trading, providing additional information regarding its capital position.
The stock was up 88 cents just after 9:00 am ET, climbing to $11.20. If pre-market gains hold, the stock will open at its highest level since Thursday.
Hartford Financial Services provided additional information regarding its capital position in a Form 8-K filing with the Securities and Exchange Commission, in which it stated that its capital margin, the capital in excess of modeled rating agency requirements to maintain AA level ratings, would be approximately $2 billion at year end, assuming a year-end S&P 500 level of 900. This compares to an estimate of $3.5 billion, which was disclosed by the company on October 6, 2008, following the announcement of the Allianz transaction. The prior estimate assumed a year-end S&P 500 market level at a September 30, 2008 level, which was 1165.
The company also provided additional details on its estimated year-end risk-based capital ratio for Hartford Life and Accident Insurance Company at various S&P 500 levels. An RBC ratio of 325% or higher has historically been associated by various rating agencies with AA level ratings.
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