CHARLOTTE (AP) — Hartford Financial Services Group Inc. shares slipped yesterday after a published report said the insurer may be looking to sell one of its units.

Shares fell 10 cents, or two percent, to $4.53 in afternoon trading after falling as low as $4.07 a share earlier in the session.

The report said the Hartford, Connecticut-based insurer is in talks to sell most of its life insurance subsidiary to Sun Life Financial Inc. of Canada.

The report, by Bloomberg News, did not name its sources. It said a deal isn't certain. Hartford spokeswoman Debora Raymond declined to comment.

Sun Life spokesman Steve Kee declined to comment directly on the report, but said, "Sun life is committed to business growth, and we actively look at potential opportunities in key markets that may build on our shareholder and customer value."

Sun Life Financial's US shares fell 66 cents, or 4.9 percent, to $12.87 in afternoon trading.

Insurers have been hit hard by the financial market meltdown.

On Tuesday, Standard & Poor's lowered its ratings on the Hartford and its subsidiaries by one notch, citing concerns about the insurer's ability to raise capital in a worsening economy.

The outlook on all of Hartford Financial's units is negative, reflecting concerns about Hartford's ability to raise cash to meet potential future funding needs, analyst Shellie Stoddard wrote.

Last month, Hartford Financial reported a loss of $806 million, or $2.71 per share, for the final three months of 2008. The loss included a $610 million realised capital loss and another $597 million loss tied to the write-off of goodwill.

In recent months, Hartford has taken action to bolster capital. In October, the company raised $2.5 billion and contributed all of it to its life insurance operations.

Hartford is also seeking government aid under the Troubled Asset Relief Programme.