The Hartford Financial Services Group, Inc. announced its decision to divest itself of individual life insurance and retirement services in order to focus on P&C (property & casualty), group benefits and mutual funds.

The announcement comes just weeks after hedge fund manager, John Paulson, The Hartford’s largest shareholder (8.5%), recommended that the company split its assets.

In response to the announcement, the S&P ratings service said it was downgrading the subsidiaries of Hartford Life and assigning individual ratings to each of the entities.

Moody’s affirmed the credit ratings of The Hartford Financial Services Group, Inc., but changed the outlook of their Life & Annuity insurance company to negative from stable.

Thomas Gallagher of Credit Suisse estimated that Hartford will see between $2 and $3 billion by selling the business.

The Hartford’s stock price went up slightly following the announcement.