Fitch Ratings has revised its ratings outlook on The Hartford from stable to negative, citing “material exposure to troubled credits in its asset portfolio” and a previously disclosed expectation of a deferred acquisition charge in the third quarter.

Fitch said it recognizes that The Hartford has capacity within its organization to address near-term deterioration in its capital position following asset write-downs, and believes that near-term capital quality will remain at adequate levels for the company's ratings. However, today's revision reflects Fitch's view that conditions in the financial markets could experience further deterioration and thus provide additional challenges for The Hartford, Fitch said.

The Hartford’s exposures align with the overall life insurance industry in respect to deterioration in credit and equity markets, which has been and is expected to continue to negatively impact life insurers' capital levels and earnings performance, Fitch said.