Insurer credit-rating firm A.M. Best Co. likes what Springfield insurer MassMutual is getting from its pending $400 million buyout of The Hartford’s retirement plans business.
Best said Monday the ratings outlook for MassMutual financial strength, issuer credit and debt ratings is stable.
MassMutual announced last week plans to buy the business from Hartford Financial Services Group Inc.
Best said the deal isn’t big enough to hurt MassMutual’s capitalization levels but would bring extra scale to its existing retirement business, particularly in the small- to mid-sized case market.
The purchase should begin contributing to MassMutual’s earnings in the second year after the deal, Best said.
