If the Hartford decides to split its P&C and Life operations, as proposed by a hedge-fund manager who owns an 8.4 percent stake in the company, the P&C operations would have a more favorable credit outlook than would the Life operations alone, according to Moody's Investors Service.
In its Weekly Credit Outlook, Moody's notes that the Life group depends on the P&C group to bolster its credit support and boost its ratings.
Moody's says that if the break were to happen, discrepancies between the two units would be publicly reported—and the Life group's weaker status would be highlighted.
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