The 2008 financial crisis hit the Hartford Financial Services Group harder than many of its peers.
At a recent investor meeting, executives from The Hartford discussed how the company has positioned itself to avoid a repeat of 2008—largely through de-risking of its balance sheet.
The following is a high-level representation of changes in the composition of assets in The Hartford’s investment portfolio:
- Reduced holdings of commercial mortgage-backed securities
- Reduced subordinated commercial mortgage loans
- Reduced non-agency residential mortgage-backed securities
- Increased exposure to high quality corporate debt
- Repositioning of municipal debt (prior to market shake-up in 2010)
- Significantly reduced exposure to Europe—including an elimination of any sovereign exposure
These portfolio moves are in addition to business line decisions such as the discontinuation of variable annuity sales in 2009.
The company also has a renewed focus on its hedging programs.
Source: The Hartford Financial Services Group
