Moody's rates Hartford preferreds Baa3(hyb)

Moody's Investors Service said it assigned a Baa3(hyb) rating to $300 million of retail series G perpetual preferred securities to be issued by the Hartford Financial Services Group, Inc. off its shelf registration.

The proceeds will be used for various purposes, which may include repayment of the company's 6% senior notes due Jan. 15, 2019, funding for the acquisition of Navigators Group and other general corporate purposes.

The outlook is stable.

The ratings are based on the group's well diversified revenue and earnings streams with strategic focus on personal and commercial insurance, group benefits and mutual funds, Moody's said.

Other strengths include the steady profitability in its small commercial business, long-term relationship with the AARP and its top-tier position in the group life and disability market, the agency said.

These strengths are tempered by pricing and reserving risk associated with commercial and specialty business with significant concentration in workers' compensation, moderate exposure to natural and man-made catastrophes, exposure to asbestos and other run-off liabilities, Moody's said.

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