þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3317783 | |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
7.9% Notes due June 15, 2010 | 5.375% Notes due March 15, 2017 | |
5.25% Notes due October 15, 2011 | 6.3% Notes due March 15, 2018 | |
4.625% Notes due July 15, 2013 | 6.0% Notes due January 15, 2019 | |
4.75% Notes due March 1, 2014 | 5.95% Notes due October 15, 2036 | |
7.3% Debentures due November 1, 2015 | 8.125% Junior Subordinated Debentures due June 15, 2068 | |
5.5% Notes due October 15, 2016 |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
2
|
significant risks and uncertainties related to the Companys current operating environment,
which reflects continued volatility in financial markets, constrained capital and credit
markets and uncertainty about the timing and strength of an economic recovery and the impact
of governmental budgetary and regulatory initiatives and whether managements initiatives to
address these risks will be effective;
|
|
risks associated with our continued execution of steps to realign our business and
reposition our investment portfolio, including the potential need to adjust our plans to take
other restructuring actions, such as divestitures;
|
|
market risks associated with our business, including changes in interest rates, credit
spreads, equity prices, foreign exchange rates, as well as challenging or deteriorating
conditions in key sectors such as the commercial real estate market, that have pressured our
results and are expected to continue to do so in 2010;
|
|
volatility in our earnings resulting from our recent adjustment of our risk
management program to emphasize protection of statutory surplus;
|
|
the impact on our statutory capital of various factors, including many that are outside the
Companys control, which can in turn affect our credit and financial strength ratings, cost of
capital, regulatory compliance and other aspects of our business and results;
|
|
risks to our business, financial position, prospects and results associated with downgrades
in the Companys financial strength and credit ratings or negative rating actions relating to
our investments;
|
|
the potential for differing interpretations of the methodologies, estimations and
assumptions that underlie the valuation of the Companys financial instruments that could
result in changes to investment valuations;
|
|
the subjective determinations that underlie the Companys evaluation of
other-than-temporary impairments on available-for-sale securities;
|
|
losses due to nonperformance or defaults by others;
|
|
the potential for further acceleration of deferred policy acquisition cost amortization;
|
|
the potential for further impairments of our goodwill or the potential for establishing
valuation allowances against deferred tax assets;
|
|
the possible occurrence of terrorist attacks and the Companys ability to contain its
exposure, including the effect of the absence or insufficiency of applicable terrorism
legislation on coverage;
|
|
the difficulty in predicting the Companys potential exposure for asbestos and
environmental claims;
|
|
the possibility of a pandemic or other man-made disaster that may adversely affect the
Companys businesses and cost and availability of reinsurance;
|
|
weather and other natural physical events, including the severity and frequency of storms,
hail, snowfall and other winter conditions, natural disasters such as hurricanes and
earthquakes, as well as climate change, including effects on weather patterns, greenhouse
gases, sea, land and air temperatures, sea levels, rain and snow;
|
|
the response of reinsurance companies under reinsurance contracts and the availability,
pricing and adequacy of reinsurance to protect the Company against losses;
|
|
the possibility of unfavorable loss development;
|
|
actions by our competitors, many of which are larger or have greater financial resources
than we do;
|
|
the costs, compliance and other consequences of the Companys participation in the Capital
Purchase Program under the Emergency Economic Stabilization Act of 2008 and the eventual
repayment thereof;
|
|
unfavorable judicial or legislative developments;
|
3
|
the potential effect of domestic and foreign regulatory developments, including those that
could adversely impact the demand for the Companys products, operating costs and required
capital levels, including changes to statutory reserves and/or risk-based capital requirements
related to secondary guarantees under universal life and variable annuity products;
|
|
the Companys ability to distribute its products through distribution channels, both
current and future;
|
|
the uncertain effects of emerging claim and coverage issues;
|
|
the ability of the Companys subsidiaries to pay dividends to the Company;
|
|
the Companys ability to effectively price its property and casualty policies, including
its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal
of certain product lines;
|
|
the Companys ability to maintain the availability of its systems and safeguard the
security of its data in the event of a disaster or other unanticipated events;
|
|
the potential for difficulties arising from outsourcing relationships;
|
|
the impact of potential changes in federal or state tax laws, including changes affecting
the availability of the separate account dividend received deduction;
|
|
the impact of potential changes in accounting principles and related financial reporting
requirements;
|
|
the Companys ability to protect its intellectual property and defend against claims of
infringement; and
|
|
other factors described in such forward-looking statements.
|
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
(Dollar amounts in millions, except for per share data, unless otherwise stated)
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Property And Casualty Loss And Loss Adjustment Expense Liability Development Net of Reinsurance
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
$
12,476
$
12,316
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
$
18,210
2,994
3,272
3,339
3,480
4,415
3,594
3,702
3,727
3,703
3,771
5,019
5,315
5,621
6,781
6,779
6,035
6,122
5,980
5,980
6,437
6,972
8,324
8,591
8,686
7,825
7,755
7,544
7,652
9,195
9,710
10,061
10,075
9,045
8,889
9,567
10,227
10,871
11,181
11,063
9,928
10,376
11,140
11,832
12,015
11,821
11,137
11,961
12,563
12,672
11,856
12,616
13,166
12,432
13,167
12,939
12,472
12,459
13,153
15,965
16,632
16,439
17,159
17,652
18,005
18,161
12,527
12,776
16,176
16,501
17,232
16,838
17,347
17,475
17,858
12,698
15,760
16,768
17,338
17,739
17,240
17,318
17,441
15,609
16,584
17,425
17,876
18,367
17,344
17,497
16,256
17,048
17,927
18,630
18,554
17,570
16,568
17,512
18,686
18,838
18,836
17,031
18,216
18,892
19,126
17,655
18,410
19,192
17,841
18,649
18,055
$
5,579
$
6,333
$
6,332
$
5,985
$
2,618
$
1,379
$
634
$
(163
)
$
(373
)
$
(186
)
[1]
For the Years Ended December 31, [1]
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
$
12,316
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
$
18,210
3,871
4,176
3,950
5,497
5,138
5,403
4,387
3,922
3,586
3,441
$
16,187
$
17,036
$
17,091
$
21,715
$
21,329
$
22,266
$
21,991
$
22,153
$
21,933
$
21,651
$
18,649
$
19,192
$
19,126
$
18,836
$
17,570
$
17,497
$
17,441
$
17,858
$
18,161
5,644
5,802
5,426
5,348
5,250
5,571
3,997
3,745
3,409
$
24,293
$
24,994
$
24,552
$
24,184
$
22,820
$
23,068
$
21,438
$
21,603
$
21,570
$
8,106
$
7,958
$
7,461
$
2,469
$
1,491
$
802
$
(553
)
$
(550
)
$
(363
)
[1]
Table of Contents
Calendar Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Total
$
(4
)
$
55
$
171
$
2,911
$
647
$
312
$
463
$
624
$
186
$
214
$
5,579
88
146
73
177
152
1
80
8
25
750
(24
)
39
(232
)
193
38
55
12
61
142
(199
)
(56
)
180
36
(5
)
2
(12
)
(54
)
(122
)
(237
)
(31
)
(126
)
(21
)
(6
)
(543
)
(352
)
(108
)
(226
)
(83
)
(56
)
(825
)
(103
)
(214
)
(133
)
(47
)
(497
)
(140
)
(148
)
(213
)
(501
)
(49
)
(113
)
(162
)
(39
)
(39
)
$
(4
)
$
143
$
293
$
2,824
$
414
$
248
$
296
$
48
$
(226
)
$
(186
)
$
3,850
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
F-1
F-2
F-3
F-4
F-5
F-6
F-7
F-8
F-9
F-10
F-11
F-12
F-13
F-14
F-15
F-16
F-17
F-18
F-19
F-20
F-21
F-22
F-23
F-24
F-25
F-26
F-27
F-28
F-29
F-30
F-31
F-32
F-33
F-34
F-35
F-36
F-37
F-38
F-39
F-40
F-41
F-42
F-43
F-44
F-45
F-46
F-47
F-48
F-49
F-50
F-51
F-52
F-53
F-54
F-55
F-56
F-57
F-58
F-59
F-60
F-61
F-62
F-63
F-64
F-65
F-66
F-67
F-68
F-69
F-70
F-71
F-72
F-73
F-74
F-75
F-76
F-77
F-78
F-79
F-80
F-81
F-82
F-83
F-84
F-85
F-86
F-87
F-88
F-89
F-90
S-1
S-2
S-3
S-4
S-5
S-6
S-7
S-8
S-9
II-1
II-5
Item 5.
1
st
Qtr.
2
nd
Qtr.
3
rd
Qtr.
4
th
Qtr.
$
19.68
$
18.16
$
28.62
$
29.20
$
3.62
$
7.67
$
10.18
$
23.16
$
0.05
$
0.05
$
0.05
$
0.05
$
84.93
$
79.13
$
67.74
$
38.11
$
66.05
$
64.57
$
40.99
$
4.95
$
0.53
$
0.53
$
0.53
$
0.32
Approximate Dollar
Total Number of
Value of Shares that
Shares Purchased as
May Yet Be
Total Number
Average Price
Part of Publicly
Purchased Under
of Shares
Paid Per
Announced Plans or
the Plans or
Period
Purchased [1]
Share
Programs
Programs
(in millions)
22,353
$
27.49
$
807
2,210
$
24.49
$
807
2,519
$
24.40
$
807
27,082
$
26.96
N/A
[1]
Table of Contents
For the Years Ended December 31,
Company/Index
2005
2006
2007
2008
2009
25.83
%
10.82
%
(4.55
%)
(79.99
%)
43.91
%
4.91
%
15.79
%
5.49
%
(37.00
%)
26.46
%
14.10
%
10.91
%
(6.31
%)
(58.14
%)
13.90
%
Base
Period
For the Years Ended December 31,
Company/Index
2004
2005
2006
2007
2008
2009
$
100
$
125.83
$
139.44
$
133.09
$
26.63
$
38.32
$
100
$
104.91
$
121.48
$
128.16
$
80.74
$
102.11
$
100
$
114.10
$
126.56
$
118.57
$
49.63
$
56.53
Table of Contents
(In millions, except for per share data and combined ratios)
2009
2008
2007
2006
2005
$
14,424
$
15,503
$
15,619
$
15,023
$
14,359
4,576
5,135
5,436
4,739
4,012
4,031
4,335
5,214
4,691
4,384
3,188
(10,340
)
145
1,824
3,847
7,219
(6,005
)
5,359
6,515
8,231
(2,010
)
(5,918
)
(994
)
(251
)
17
492
504
496
474
464
24,701
9,219
25,916
26,500
27,083
13,831
14,088
13,919
13,218
12,929
3,188
(10,340
)
145
1,824
3,847
4,267
4,271
2,989
3,558
3,169
3,749
3,993
3,894
3,252
3,227
476
343
263
277
252
32
745
886
710
701
769
674
26,429
13,810
21,911
22,898
24,098
(1,728
)
(4,591
)
4,005
3,602
2,985
(841
)
(1,842
)
1,056
857
711
(887
)
(2,749
)
2,949
2,745
2,274
127
8
$
(1,014
)
$
(2,757
)
$
2,949
$
2,745
$
2,274
$
150,394
$
130,184
$
199,946
$
180,484
$
150,875
307,717
287,583
360,361
326,544
285,412
343
398
1,365
599
719
5,496
5,823
3,142
3,504
4,048
150,394
130,184
199,946
180,484
150,875
21,177
16,788
20,062
18,698
15,235
(3,312
)
(7,520
)
(858
)
178
90
17,865
9,268
19,204
18,876
15,325
$
(2.93
)
$
(8.99
)
$
9.32
$
8.89
$
7.63
(2.93
)
(8.99
)
9.24
8.69
7.44
0.20
1.91
2.03
1.70
1.17
$
64,997
$
50,126
$
55,531
$
43,732
$
32,705
90.4
90.7
90.8
89.3
93.2
[1]
[2]
Table of Contents
AND RESULTS OF OPERATIONS
Description
Page
31
34
39
67
73
80
83
86
88
90
93
95
96
100
103
106
109
110
111
116
126
133
143
Table of Contents
(In millions, except for per share data)
For the years ended December 31,
Operating Summary
2009
2008
2007
$
14,424
$
15,503
$
15,619
4,576
5,135
5,436
4,031
4,335
5,214
3,188
(10,340
)
145
7,219
(6,005
)
5,359
(2,191
)
(3,964
)
(483
)
683
(1,508
)
(3,964
)
(483
)
(502
)
(1,954
)
(511
)
(2,010
)
(5,918
)
(994
)
492
504
496
24,701
9,219
25,916
13,831
14,088
13,919
3,188
(10,340
)
145
4,267
4,271
2,989
3,749
3,993
3,894
476
343
263
32
745
886
710
701
26,429
13,810
21,911
(1,728
)
(4,591
)
4,005
(841
)
(1,842
)
1,056
$
(887
)
$
(2,749
)
$
2,949
$
(2.93
)
$
(8.99
)
$
9.24
21,513
19,559
25,771
(1,034
)
(932
)
213
As of December 31,
Summary of Financial Condition
2009
2008
2007
$
307,717
$
287,583
$
360,361
93,235
89,287
94,904
17,865
9,268
19,204
[1]
Table of Contents
Increase
Increase
(Decrease) From
(Decrease) From
Net Income (Loss) by Operation and Life Segment
2009
2008
2007
2008 to 2009
2007 to 2008
$
(410
)
$
(1,399
)
$
812
$
989
$
(2,211
)
15
(43
)
182
58
(225
)
193
(6
)
315
199
(321
)
(222
)
(157
)
61
(65
)
(218
)
(183
)
(325
)
223
142
(548
)
(515
)
(502
)
17
(13
)
(519
)
(165
)
(11
)
(52
)
(154
)
41
(1,287
)
(2,443
)
1,558
1,156
(4,001
)
120
280
322
(160
)
(42
)
395
437
508
(42
)
(71
)
258
169
157
89
12
170
71
(18
)
99
89
943
957
969
(14
)
(12
)
37
31
52
6
(21
)
943
1,056
1,439
(113
)
(383
)
(266
)
(1,669
)
(160
)
1,403
(1,509
)
(223
)
(219
)
(248
)
(4
)
29
1,434
156
2,052
1,278
(1,896
)
374
(33
)
575
407
(608
)
1,060
189
1,477
871
(1,288
)
(77
)
(97
)
30
20
(127
)
983
92
1,507
891
(1,415
)
(583
)
(398
)
(116
)
(185
)
(282
)
$
(887
)
$
(2,749
)
$
2,949
$
1,862
$
(5,698
)
[1]
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
323
$
2
$
42
$
56
$
423
$
$
423
16
5
5
9
35
35
1,674
248
238
161
2,321
2,321
1,131
881
136
2,148
2,148
9
1,933
2,270
2,272
6,484
6,484
26
145
693
1,286
2,150
2,150
742
742
742
261
261
261
496
496
936
936
2
2
8
3
15
2,199
2,214
2,050
3,466
4,137
4,926
14,579
3,631
18,210
20
137
305
2,118
2,580
861
3,441
$
2,070
$
3,603
$
4,442
$
7,044
$
17,159
$
4,492
$
21,651
[1]
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
2,052
$
3,572
$
4,744
$
6,981
$
17,349
$
4,584
$
21,933
60
176
437
2,110
2,783
803
3,586
1,992
3,396
4,307
4,871
14,566
3,781
18,347
2,700
1,396
1,352
842
6,290
6,290
228
44
32
2
306
306
(33
)
(36
)
(187
)
(172
)
(428
)
242
(186
)
2,895
1,404
1,197
672
6,168
242
6,410
(2,837
)
(1,334
)
(1,367
)
(617
)
(6,155
)
(392
)
(6,547
)
2,050
3,466
4,137
4,926
14,579
3,631
18,210
20
137
305
2,118
2,580
861
3,441
$
2,070
$
3,603
$
4,442
$
7,044
$
17,159
$
4,492
$
21,651
$
3,952
$
2,580
$
2,101
$
1,228
$
9,861
$
$
9,861
71.8
51.7
65.1
50.4
62.5
73.3
54.4
57.0
54.7
62.6
(0.8
)
(1.4
)
(8.9
)
(14.0
)
(4.3
)
[1]
[2]
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
$
$
$
(127
)
$
(127
)
$
$
(127
)
(112
)
(112
)
(112
)
(40
)
(52
)
(92
)
(92
)
(77
)
(77
)
(77
)
(33
)
(14
)
(47
)
(47
)
38
38
38
28
28
28
18
18
18
138
138
75
75
35
35
(20
)
(20
)
(20
)
(40
)
26
(1
)
(9
)
(53
)
(37
)
14
(23
)
$
(33
)
$
(36
)
$
(187
)
$
(172
)
$
(428
)
$
242
$
(186
)
[1]
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
2,042
$
3,470
$
4,697
$
6,873
$
17,082
$
5,071
$
22,153
81
177
414
2,316
2,988
934
3,922
1,961
3,293
4,283
4,557
14,094
4,137
18,231
2,542
1,447
1,460
941
6,390
6,390
258
122
116
47
543
543
(51
)
(89
)
(134
)
(81
)
(355
)
129
(226
)
2,749
1,480
1,442
907
6,578
129
6,707
(2,718
)
(1,377
)
(1,418
)
(593
)
(6,106
)
(485
)
(6,591
)
1,992
3,396
4,307
4,871
14,566
3,781
18,347
60
176
437
2,110
2,783
803
3,586
$
2,052
$
3,572
$
4,744
$
6,981
$
17,349
$
4,584
$
21,933
$
3,926
$
2,724
$
2,299
$
1,382
$
10,331
$
7
$
10,338
69.2
50.5
61.6
42.8
59.1
70.0
54.3
62.7
65.6
63.7
(1.3
)
(3.3
)
(5.9
)
(5.8
)
(3.4
)
[1]
[2]
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
260
$
124
$
130
$
58
$
572
$
$
572
2
2
14
11
29
29
258
122
116
47
543
543
10
7
3
20
20
1
1
1
$
269
$
129
$
119
$
47
$
564
$
$
564
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
$
(92
)
$
(64
)
$
$
(156
)
$
$
(156
)
(15
)
(90
)
(105
)
(105
)
(75
)
(75
)
(75
)
(46
)
(46
)
(46
)
(27
)
(27
)
(27
)
(24
)
(24
)
(24
)
(10
)
(10
)
(10
)
17
50
67
67
25
25
25
53
53
50
50
19
1
(3
)
(21
)
(4
)
26
22
$
(51
)
$
(89
)
$
(134
)
$
(81
)
$
(355
)
$
129
$
(226
)
[1]
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
1,959
$
3,421
$
4,536
$
6,359
$
16,275
$
5,716
$
21,991
134
214
479
2,260
3,087
1,300
4,387
1,825
3,207
4,057
4,099
13,188
4,416
17,604
2,576
1,594
1,561
961
6,692
6,692
125
28
15
9
177
177
(4
)
(209
)
(16
)
84
(145
)
193
48
2,697
1,413
1,560
1,054
6,724
193
6,917
(2,503
)
(1,222
)
(1,248
)
(720
)
(5,693
)
(597
)
(6,290
)
(58
)
(105
)
(86
)
124
(125
)
125
1,961
3,293
4,283
4,557
14,094
4,137
18,231
81
177
414
2,316
2,988
934
3,922
$
2,042
$
3,470
$
4,697
$
6,873
$
17,082
$
5,071
$
22,153
$
3,889
$
2,736
$
2,420
$
1,446
$
10,491
$
5
$
10,496
64.4
44.7
51.5
49.8
54.3
69.3
51.6
64.5
73.0
64.1
(0.1
)
(7.6
)
(0.7
)
5.8
(1.4
)
[1]
[2]
[3]
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
$
(184
)
$
40
$
47
$
(97
)
$
$
(97
)
(30
)
(30
)
(30
)
(22
)
(22
)
(22
)
(18
)
(18
)
(18
)
(16
)
(16
)
(16
)
(15
)
(15
)
(15
)
99
99
(35
)
59
24
24
25
25
12
5
(3
)
15
29
69
98
$
(4
)
$
(209
)
$
(16
)
$
84
$
(145
)
$
193
$
48
[1]
Table of Contents
Table of Contents
Table of Contents
Asbestos
Environmental
All Other [1]
Total
$
1,884
$
269
$
1,628
$
3,781
138
75
29
242
(181
)
(40
)
(171
)
(392
)
51
3
(54
)
$
1,892
[6]
$
307
$
1,432
$
3,631
$
1,998
$
251
$
1,888
$
4,137
68
54
7
129
(182
)
(36
)
(267
)
(485
)
$
1,884
$
269
$
1,628
$
3,781
$
2,242
$
316
$
1,858
$
4,416
43
28
122
193
(287
)
(93
)
(217
)
(597
)
125
125
$
1,998
$
251
$
1,888
$
4,137
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
Number of
Total
Gross Environmental Reserves as of September 30, 2009 [1]
Accounts [2]
Reserves
8
$
43
562
109
115
570
267
56
61
384
(18
)
1
$
367
[1]
[2]
[3]
[4]
[5]
Table of Contents
Number of
All Time
Total
All Time
Accounts [2]
Paid [3]
Reserves
Ultimate [3]
7
$
270
$
475
$
745
29
904
43
947
29
474
168
642
5
73
744
547
1,291
1,104
424
119
543
1,687
366
2,053
4,503
1,718
6,221
1,110
557
1,667
581
347
928
6,194
2,622
8,816
143
(143
)
5
5
$
6,337
$
2,484
$
8,821
[1]
[2]
[3]
[4]
[5]
[6]
[7]
Table of Contents
Asbestos [1]
Environmental [1]
Paid
Incurred
Paid
Incurred
Losses & LAE
Losses & LAE
Losses & LAE
Losses & LAE
$
160
$
117
$
29
$
92
56
52
7
18
10
12
234
169
46
104
(53
)
(31
)
(6
)
(29
)
181
138
40
75
51
3
$
181
$
189
$
40
$
78
$
207
$
76
$
32
$
69
61
9
(17
)
19
6
13
287
76
47
65
(105
)
(8
)
(11
)
(11
)
$
182
$
68
$
36
$
54
$
251
$
(289
)
$
90
$
43
112
72
16
31
76
8
394
(141
)
114
43
(107
)
184
(21
)
(15
)
$
287
$
43
$
93
$
28
[1]
[2]
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
(5.2) (0.2
)
(6.5) (1.0
)
(4.3) 1.6
(3.5) 3.1
(2.9) 0.3
3.1 7.4
(1.2) 1.5
[1]
Table of Contents
Individual Variable
Individual Variable
Annuities U.S.
Annuities Japan
Individual Life
2009
2008
2009
2008
2009
2008
$
3,378
$
4,844
$
1,566
$
1,834
$
2,528
$
2,931
$
324
$
436
$
28
$
19
$
42
$
36
$
85
$
109
$
1
$
$
1,185
$
1,299
$
1,232
$
867
$
580
$
229
$
76
$
40
Table of Contents
Death and
Other
Insurance
Segment
Benefit
After-tax (charge) benefit
DAC
URR
Reserves [1]
SIA
Total [2]
$
(429
)
$
17
$
(158
)
$
(36
)
$
(606
)
(55
)
(1
)
(56
)
(101
)
54
(4
)
(51
)
(1
)
(1
)
(103
)
6
(210
)
(10
)
(317
)
(3
)
(3
)
$
(692
)
$
77
$
(372
)
$
(47
)
$
(1,034
)
[1]
[2]
[3]
Death and
Other
Insurance
Segment
Benefit
After-tax (charge) benefit
DAC
URR
Reserves [1]
SIA
Total [2]
$
(648
)
$
18
$
(75
)
$
(27
)
$
(732
)
(49
)
(49
)
(29
)
(12
)
(3
)
(44
)
(23
)
(1
)
(90
)
(2
)
(116
)
9
9
$
(740
)
$
5
$
(168
)
$
(29
)
$
(932
)
[1]
[2]
Table of Contents
Death and
Other
Insurance
Segment
Benefit
After-tax (charge) benefit
DAC
URR
Reserves [1]
SIA
Total [2]
$
180
$
(5
)
$
(4
)
$
9
$
180
(9
)
(9
)
1
1
24
(8
)
16
16
6
22
3
3
$
215
$
(13
)
$
2
$
9
$
213
[1]
[2]
Table of Contents
Table of Contents
Segment Goodwill
Goodwill in Corporate
Total
$
159
$
92
$
251
87
69
156
224
118
342
138
138
119
119
30
30
168
168
$
619
$
585
$
1,204
[1]
Segment Goodwill
Goodwill in Corporate
Total
$
159
$
92
$
251
79
69
148
32
32
224
118
342
138
138
119
119
30
30
$
611
$
449
$
1,060
Table of Contents
Table of Contents
Quoted Prices in
Active Markets
Significant
Significant
for Identical
Observable
Unobservable
Assets
Inputs
Inputs
(Level 1)
(Level 2)
(Level 3)
Total
$
785
$
58,274
$
1,711
$
60,770
4,071
4,071
7,053
7,053
480
480
6,846
3,511
10,357
$
7,631
$
61,785
$
13,315
$
82,731
9.2
%
74.7
%
16.1
%
100.0
%
[1]
Notional Value
Fair Value
$
2,279
$
6
40,871
(9
)
44,917
337
$
88,067
$
334
Notional Value
Fair Value
$
5,166
$
(193
)
2,591
(2
)
37,135
532
25
$
44,917
$
337
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Ratios
2009
2008
2007
(48.6
) bps
(133.5
) bps
58.9
bps
(18.8
) bps
(96.5
) bps
(13.3
) bps
(67.1
) bps
(68.0
) bps
15.6
bps
37.3
bps
31.0
bps
56.6
bps
1.3
%
(4.7
%)
16.0
%
(6.5
%)
(13.1
%)
(1.3
%)
(4.9
%)
(4.7
%)
1.4
%
12.7
%
13.1
%
15.9
%
4.2
%
(0.1
%)
6.7
%
(1.6
%)
(7.3
%)
(0.4
%)
5.8
%
7.2
%
7.1
%
(54.8
) bps
(47.9
) bps
22.9
bps
(44.8
) bps
(51.5
) bps
(10.5
) bps
(13.8
) bps
(15.0
) bps
(3.4
) bps
3.8
bps
18.6
bps
36.8
bps
(16.7
) bps
(72.9
) bps
73.4
bps
9.5
bps
(65.1
) bps
(8.1
) bps
(68.3
) bps
(31.9
) bps
6.4
bps
42.1
bps
24.1
bps
75.1
bps
(86.5
) bps
(83.3
) bps
3.0
bps
(80.3
) bps
(85.0
) bps
(21.5
) bps
(0.2
) bps
0.2
bps
(6.0
) bps
1.7
bps
24.3
bps
[1]
[2]
Table of Contents
Table of Contents
2009
2008
2007
1
%
1
%
3
%
(5
%)
3
%
(9
%)
(5
%)
(4
%)
(11
%)
(4
%)
(3
%)
(5
%)
(2
%)
1
%
91.7
88.9
90.5
3.1
5.3
1.7
(0.2
)
(0.2
)
0.1
2.9
5.0
1.8
(4.2
)
(3.2
)
(1.5
)
90.4
90.7
90.8
$
(77
)
$
(97
)
$
30
Table of Contents
Table of Contents
December 31, 2009
December 31, 2008
Amount
Percent
Amount
Percent
$
71,153
76.3
%
$
65,112
72.9
%
1,221
1.3
%
1,458
1.6
%
5,938
6.4
%
6,469
7.3
%
2,174
2.3
%
2,208
2.5
%
1,790
1.9
%
2,295
2.6
%
602
0.7
%
1,723
1.9
%
10,357
11.1
%
10,022
11.2
%
$
93,235
100.0
%
$
89,287
100.0
%
32,321
30,820
$
125,556
$
120,107
[1]
[2]
For the years ended December 31,
2009
2008
2007
Amount
Yield [1]
Amount
Yield [1]
Amount
Yield [1]
$
3,618
4.5
%
$
4,310
5.2
%
$
4,653
5.8
%
93
6.5
%
167
6.9
%
139
6.6
%
316
5.0
%
333
5.6
%
293
6.3
%
139
6.3
%
139
6.5
%
135
6.5
%
(341
)
(15.6
%)
(445
)
(4.3
%)
255
13.3
%
318
(72
)
(161
)
(112
)
(97
)
(100
)
$
4,031
4.1
%
$
4,335
4.6
%
$
5,214
5.9
%
3,188
(10,340
)
145
$
7,219
$
(6,005
)
$
5,359
[1]
[2]
[3]
Table of Contents
For the years ended December 31,
2009
2008
2007
$
1,056
$
607
$
374
(1,397
)
(856
)
(291
)
(1,508
)
(3,964
)
(483
)
47
64
18
(49
)
(33
)
(25
)
(650
)
1,526
(713
)
(286
)
(895
)
74
(12
)
631
(639
)
(298
)
(790
)
(447
)
(289
)
$
(2,010
)
$
(5,918
)
$
(994
)
[1]
[2]
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
2,139
$
2,757
$
3,117
(7
)
(4
)
(62
)
750
747
801
(7
)
(1,910
)
(381
)
2,875
1,590
3,475
1,310
1,008
820
1,049
1,187
1,221
1,389
1,344
406
422
3,748
3,961
2,447
(873
)
(2,371
)
1,028
(463
)
(972
)
216
$
(410
)
$
(1,399
)
$
812
Assets Under Management
2009
2008
2007
$
84,679
$
74,578
$
119,071
12,110
11,278
10,243
398
677
96,789
86,254
129,991
42,829
31,032
48,383
1,202
1,678
2,113
44,031
32,710
50,496
$
140,820
$
118,964
$
180,487
Account Value and Assets Under Management Roll Forward
2009
2008
2007
$
74,578
$
119,071
$
114,365
(7,122
)
(6,235
)
(2,733
)
17,223
(38,258
)
7,439
$
84,679
$
74,578
$
119,071
$
31,032
$
48,383
$
38,536
2,004
2,840
5,545
9,793
(20,191
)
4,302
$
42,829
$
31,032
$
48,383
Net Investment Spread
2009
2008
2007
28
bps
73
bps
174
bps
Expense Ratios
2009
2008
2007
21.0
bps
21.0
bps
17.9
bps
244.3
%
218.5
%
25.5
%
61.6
%
65.2
%
47.9
%
[1]
[2]
[3]
[4]
[5]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
1,027
$
899
$
870
(87
)
(71
)
(62
)
335
338
359
(145
)
(252
)
(28
)
1,130
914
1,139
640
627
562
188
202
193
314
169
121
1,142
998
876
(12
)
(84
)
263
(27
)
(41
)
81
$
15
$
(43
)
$
182
Account Values
2009
2008
2007
$
5,766
$
4,802
$
7,284
5,071
4,727
4,388
622
653
677
$
11,459
$
10,182
$
12,349
$
78,671
$
78,853
$
77,566
55,169
52,356
48,636
69,932
63,334
52,298
897
921
983
$
204,669
$
195,464
$
179,483
81
bps
90
bps
130
bps
$
346
$
359
$
298
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
4,350
$
4,391
$
4,301
403
419
465
(124
)
(540
)
(30
)
4,629
4,270
4,736
3,196
3,144
3,109
1,120
1,128
1,131
61
57
62
4,377
4,329
4,302
252
(59
)
434
59
(53
)
119
$
193
$
(6
)
$
315
Earned Premiums and Other
2009
2008
2007
$
4,309
$
4,355
$
4,239
1
27
41
35
35
$
4,350
$
4,391
$
4,301
$
741
$
820
$
770
87
%
89
%
87
%
73.5
%
71.6
%
72.1
%
77.8
%
76.3
%
77.3
%
27.1
%
27.0
%
27.9
%
22.6
%
22.4
%
23.0
%
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
321
$
334
$
238
3
4
4
315
342
355
(333
)
(272
)
(41
)
306
408
556
269
271
249
346
335
170
56
91
58
671
697
477
(365
)
(289
)
79
(143
)
(132
)
18
$
(222
)
$
(157
)
$
61
Assets Under Management
2009
2008
2007
$
11,116
$
10,242
$
12,363
16,142
11,956
14,731
27,258
22,198
27,094
245
99
26
16,459
14,739
1,428
16,704
14,838
1,454
$
43,962
$
37,036
$
28,548
$
5,588
$
5,122
$
Account Value and Assets Under Management Roll Forward
2009
2008
2007
$
22,198
$
27,094
$
23,575
563
2,418
1,669
4,497
(7,314
)
1,850
$
27,258
$
22,198
$
27,094
$
14,838
$
1,454
$
1,140
(1,705
)
(446
)
103
18,725
3,571
(4,895
)
211
$
16,704
$
14,838
$
1,454
66
bps
92
bps
162
bps
[1]
[2]
[3]
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
834
$
881
$
843
(7
)
(9
)
(11
)
182
167
131
35
(422
)
(116
)
1,044
617
847
621
270
32
291
321
246
364
496
214
1,276
1,087
492
(232
)
(470
)
355
(49
)
(145
)
132
$
(183
)
$
(325
)
$
223
Assets Under Management Japan
2009
2008
2007
$
30,521
$
29,726
$
35,793
4,365
4,769
1,844
$
34,886
$
34,495
$
37,637
Account Value and Assets Under Management Roll Forward
2009
2008
2007
$
34,495
$
37,637
$
31,343
(1,200
)
714
4,525
2,270
(10,921
)
(608
)
(679
)
7,065
2,377
$
34,886
$
34,495
$
37,637
Expense Ratios
2009
2008
2007
40.6
bps
49.4
bps
48.4
bps
225.2
%
109.3
%
35.3
%
42.5
%
42.4
%
40.0
%
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
143
$
152
$
251
352
889
987
833
1,004
1,241
(738
)
(789
)
(188
)
590
1,256
2,291
1,301
1,907
2,074
83
120
185
17
19
23
1,401
2,046
2,282
(811
)
(790
)
9
(296
)
(288
)
(8
)
$
(515
)
$
(502
)
$
17
Assets Under Management
2009
2008
2007
$
22,373
$
24,081
$
25,103
33,356
32,459
32,792
4,262
2,578
3,581
$
59,991
$
59,118
$
61,476
Net Investment Spread
2009
2008
2007
(48
)bps
21
bps
101
bps
Expense Ratios
2009
2008
2007
11.8
bps
14.1
bps
14.1
bps
[1]
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
58
$
60
$
67
85
28
145
3,188
(10,340
)
145
3,273
(10,312
)
290
(176
)
47
(35
)
3,155
(10,205
)
322
84
154
156
3,188
(10,340
)
145
124
7
84
3,396
(10,179
)
385
(241
)
(26
)
(63
)
(76
)
(15
)
(11
)
$
(165
)
$
(11
)
$
(52
)
[1]
Table of Contents
Underwriting Summary
2009
2008
2007
$
3,987
$
3,925
$
3,947
35
(1
)
58
3,952
3,926
3,889
2,700
2,542
2,576
228
258
125
(33
)
(51
)
(4
)
2,895
2,749
2,697
674
633
617
263
264
253
$
120
$
280
$
322
Written Premiums
2009
2008
2007
$
2,871
$
2,813
$
2,750
1,061
1,050
1,123
55
62
74
$
3,987
$
3,925
$
3,947
$
2,869
$
2,829
$
2,848
1,118
1,096
1,099
$
3,987
$
3,925
$
3,947
Earned Premiums
2009
2008
2007
$
2,844
$
2,778
$
2,681
1,049
1,080
1,123
59
68
85
$
3,952
$
3,926
$
3,889
$
2,850
$
2,824
$
2,822
1,102
1,102
1,067
$
3,952
$
3,926
$
3,889
Premium Measures
2009
2008
2007
2,395,421
2,323,882
2,349,402
1,488,408
1,455,954
1,481,542
3,883,829
3,779,836
3,830,944
$
455
$
364
$
424
$
149
$
106
$
140
86
%
86
%
87
%
86
%
87
%
89
%
3
%
4
%
3
%
5
%
6
%
7
%
4
%
4
%
3
%
6
%
5
%
7
%
Table of Contents
Ratios and Supplemental Data
2009
2008
2007
68.3
64.8
66.2
5.8
6.6
3.2
(0.8
)
(1.3
)
(0.1
)
73.3
70.0
69.3
23.7
22.8
22.4
97.0
92.9
91.7
5.8
6.6
3.2
0.1
0.2
0.2
5.9
6.8
3.4
91.1
86.1
88.3
92.0
87.6
88.6
$
153
$
135
$
141
[1]
Combined Ratios
2009
2008
2007
96.6
91.0
96.2
98.0
97.6
79.8
97.0
92.9
91.7
Table of Contents
Table of Contents
Table of Contents
Underwriting Summary
2009
2008
2007
$
2,572
$
2,696
$
2,747
(8
)
(28
)
11
2,580
2,724
2,736
1,396
1,447
1,594
44
122
28
(36
)
(89
)
(209
)
1,404
1,480
1,413
622
636
635
159
171
180
$
395
$
437
$
508
Premium Measures
2009
2008
2007
$
482
$
446
$
481
81
%
82
%
84
%
(1
%)
(1
%)
(1
%)
1,077,189
1,055,463
1,038,542
Ratios
2009
2008
2007
54.1
53.1
58.3
1.7
4.5
1.0
(1.4
)
(3.3
)
(7.6
)
54.4
54.3
51.6
30.2
29.1
29.2
0.5
0.6
84.7
84.0
81.4
1.7
4.5
1.0
(0.1
)
(0.1
)
0.2
1.6
4.4
1.2
83.1
79.6
80.3
84.4
82.8
88.0
Table of Contents
(decrease)
Table of Contents
retention
pricing increase
(decrease)
Table of Contents
Underwriting Summary
2009
2008
2007
$
2,021
$
2,242
$
2,326
(80
)
(57
)
(94
)
2,101
2,299
2,420
1,352
1,460
1,561
32
116
15
(187
)
(134
)
(16
)
1,197
1,442
1,560
486
513
529
160
175
174
$
258
$
169
$
157
Premium Measures
2009
2008
2007
$
434
$
420
$
394
77
%
79
%
80
%
(2
%)
(6
%)
(5
%)
(4
%)
(6
%)
(4
%)
95,540
97,308
94,828
Ratios
2009
2008
2007
64.3
63.5
64.5
1.5
5.1
0.6
(8.9
)
(5.9
)
(0.7
)
57.0
62.7
64.5
30.4
29.0
28.5
0.4
0.9
0.6
87.7
92.6
93.5
1.5
5.1
0.6
(0.7
)
(0.5
)
(0.1
)
0.9
4.6
0.5
86.9
88.1
93.0
95.1
93.4
93.5
Table of Contents
Table of Contents
retention
pricing decrease
Table of Contents
Underwriting Summary
2009
2008
2007
$
1,127
$
1,361
$
1,415
(101
)
(21
)
(31
)
1,228
1,382
1,446
842
941
961
2
47
9
(172
)
(81
)
84
672
907
1,054
284
313
323
102
91
87
$
170
$
71
$
(18
)
2009
2008
2007
$
(16
)
$
50
$
111
494
538
534
582
691
689
67
82
81
$
1,127
$
1,361
$
1,415
$
21
$
87
$
133
496
526
543
643
685
685
68
84
85
$
1,228
$
1,382
$
1,446
Ratios
2009
2008
2007
68.6
68.1
66.6
0.1
3.4
0.6
(14.0
)
(5.8
)
5.8
54.7
65.6
73.0
31.4
28.3
27.4
0.1
0.9
0.9
86.2
94.8
101.3
0.1
3.4
0.6
(0.4
)
(1.2
)
0.1
(0.3
)
2.2
0.7
86.5
92.6
100.6
100.1
97.3
94.9
$
340
$
371
$
354
[1]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2009
2008
2007
$
4
$
7
$
5
4
7
5
242
129
193
19
23
22
(261
)
(145
)
(210
)
163
197
248
(28
)
(208
)
(12
)
(3
)
(1
)
(126
)
(159
)
25
(49
)
(62
)
(5
)
$
(77
)
$
(97
)
$
30
Table of Contents
Operating Summary
2009
2008
2007
$
13
$
17
$
16
22
37
30
(228
)
97
(3
)
(193
)
151
43
1
476
341
259
32
323
53
(14
)
(40
)
561
650
220
(754
)
(499
)
(177
)
(171
)
(101
)
(61
)
$
(583
)
$
(398
)
$
(116
)
[1]
Table of Contents
% of layer(s)
Coverage
Treaty term
reinsured
Per occurrence limit
Retention
1/1/2010 to 1/1/2011
Varies by layer, but averages 81% across all layers
Aggregates to $690 across all layers
$
250
6/1/2009 to 6/1/2010
90%
293 [1]
69
7/1/2009 to 7/1/2010
95%
280
20
[1]
Table of Contents
Bond amount issued by
Foundation Re,
Foundation Re II or
Covered perils
Treaty term
Covered losses
Foundation Re III
2/17/2006 to 2/17/2010
26% of $400 in losses in excess of an index loss trigger equating to approximately $1.3 billion in Hartford losses
$
105
11/17/2006 to 11/17/2010
45% of $400 in losses in excess of an index loss trigger equating to approximately $1.85 billion in Hartford losses
180
1/27/2010 to 1/27/2014
90% of $200 in losses in excess of an index loss trigger equating to approximately $1.2 billion in Hartford losses
180
Table of Contents
Hurricane
Earthquake
Net of
Expected
Net of Expected
Before
Reinsurance
Before
Reinsurance
Reinsurance
Recoveries
Reinsurance
Recoveries
$
1,587
$
603
$
686
$
316
7
%
3
%
Table of Contents
Reinsurance Recoverable
December 31, 2009
December 31, 2008
$
208
$
326
3,321
3,492
3,529
3,818
(335
)
(379
)
$
3,194
$
3,439
Distribution of gross reinsurance recoverable
December 31, 2009
December 31, 2008
$
3,529
$
3,818
(642
)
(638
)
$
2,887
$
3,180
% of Total
% of Total
$
2,091
72.4
%
$
2,426
76.3
%
48
1.7
%
52
1.6
%
2,139
74.1
%
2,478
77.9
%
152
5.3
%
181
5.7
%
209
7.2
%
220
6.9
%
387
13.4
%
301
9.5
%
$
2,887
100
%
$
3,180
100.0
%
[1]
Table of Contents
Table of Contents
Table of Contents
December 31, 2009
December 31, 2008
Percent of
Percent of
Amortized
Total Fair
Amortized
Total Fair
Cost
Fair Value
Value
Cost
Fair Value
Value
$
7,299
$
7,172
10.1
%
$
9,409
$
9,568
14.7
%
11,974
11,188
15.7
%
17,844
13,489
20.7
%
14,845
13,932
19.6
%
14,093
11,646
17.9
%
19,822
18,664
26.2
%
18,742
15,831
24.4
%
17,886
17,071
24.0
%
15,749
12,794
19.6
%
4,189
3,126
4.4
%
2,401
1,784
2.7
%
$
76,015
$
71,153
100.0
%
$
78,238
$
65,112
100.0
%
Table of Contents
December 31, 2009
December 31, 2008
Percent
Percent
Cost or
Gross
Gross
of Total
Cost or
Gross
Gross
of Total
Amortized
Unrealized
Unrealized
Fair
Fair
Amortized
Unrealized
Unrealized
Fair
Fair
Cost
Gains
Losses
Value
Value
Cost
Gains
Losses
Value
Value
$
2,087
$
15
$
(277
)
$
1,825
2.6
%
$
2,251
$
$
(589
)
$
1,662
2.6
%
548
1
(232
)
317
0.4
%
570
(250
)
320
0.5
%
405
20
(44
)
381
0.5
%
610
6
(132
)
484
0.7
%
2,727
(288
)
2,439
3.5
%
2,865
(735
)
2,130
3.3
%
1,319
21
(901
)
439
0.6
%
1,763
2
(1,302
)
463
0.7
%
8
6
14
27
(8
)
19
62
3
65
0.1
%
433
16
449
0.7
%
9,600
52
(2,241
)
7,411
10.4
%
11,144
10
(4,370
)
6,784
10.4
%
1,074
59
(65
)
1,068
1.5
%
1,396
17
(333
)
1,080
1.7
%
2,642
112
(56
)
2,698
3.8
%
2,138
33
(338
)
1,833
2.8
%
3,085
140
(51
)
3,174
4.5
%
2,480
32
(322
)
2,190
3.3
%
1,946
75
(45
)
1,976
2.8
%
2,335
34
(388
)
1,981
3.0
%
4,737
281
(22
)
4,996
7.0
%
3,435
60
(252
)
3,243
5.0
%
3,070
163
(18
)
3,215
4.5
%
1,669
24
(146
)
1,547
2.4
%
8,059
118
(917
)
7,260
10.1
%
8,422
254
(1,543
)
7,133
10.9
%
3,984
205
(75
)
4,114
5.8
%
3,738
86
(400
)
3,424
5.3
%
698
22
(23
)
697
1.0
%
508
8
(90
)
426
0.7
%
5,755
230
(85
)
5,900
8.3
%
4,859
92
(578
)
4,373
6.7
%
1,342
22
(151
)
1,213
1.7
%
1,475
(444
)
1,031
1.6
%
1,376
52
(20
)
1,408
2.0
%
2,786
100
(65
)
2,821
4.3
%
1,176
4
(205
)
975
1.4
%
1,115
8
(229
)
894
1.4
%
10,949
314
(173
)
11,090
15.6
%
10,291
194
(724
)
9,761
15.0
%
3,383
99
(6
)
3,476
4.9
%
3,092
88
(15
)
3,165
4.9
%
143
(16
)
127
0.2
%
213
(48
)
165
0.2
%
218
(58
)
160
0.2
%
305
(108
)
197
0.3
%
1,768
5
(689
)
1,084
1.5
%
2,435
8
(862
)
1,581
2.4
%
3,854
14
(237
)
3,631
5.1
%
5,883
112
(39
)
5,956
9.2
%
76,015
2,033
(6,895
)
71,153
100.0
%
78,238
1,184
(14,310
)
65,112
100.0
%
836
7
(164
)
679
973
13
(196
)
790
497
73
(28
)
542
581
190
(103
)
668
1,333
80
(192
)
1,221
1,554
203
(299
)
1,458
$
77,348
$
2,113
$
(7,087
)
$
72,374
$
79,792
$
1,387
$
(14,609
)
$
66,570
[1]
[2]
[3]
[4]
Table of Contents
December 31, 2009
December 31, 2008
Percent of
Percent of
Amortized
Total Fair
Amortized
Total Fair
Cost
Fair Value
Value
Cost
Fair Value
Value
$
299
$
290
3.7
%
$
728
$
628
7.9
%
1,913
1,867
23.5
%
2,067
1,780
22.5
%
4,510
3,987
50.2
%
5,479
4,606
58.1
%
1,664
1,379
17.4
%
1,015
816
10.3
%
509
416
5.2
%
106
93
1.2
%
$
8,895
$
7,939
100.0
%
$
9,395
$
7,923
100.0
%
[1]
December 31, 2009
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
40
$
31
$
76
$
58
$
70
$
48
$
18
$
12
$
67
$
41
$
271
$
190
82
68
286
210
61
38
7
4
6
2
442
322
67
42
270
196
148
90
86
26
153
40
724
394
8
7
11
8
21
16
27
10
155
79
222
120
109
58
109
58
$
197
$
148
$
643
$
472
$
300
$
192
$
138
$
52
$
490
$
220
$
1,768
$
1,084
48.2
%
53.3
%
40.6
%
35.8
%
25.4
%
41.6
%
Table of Contents
December 31, 2008
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
49
$
41
$
162
$
136
$
60
$
43
$
32
$
26
$
34
$
20
$
337
$
266
112
81
349
277
8
7
10
7
479
372
90
71
543
367
154
77
24
16
23
18
834
549
77
69
126
56
18
9
120
50
143
54
484
238
42
27
40
10
38
18
47
26
134
75
301
156
$
370
$
289
$
1,220
$
846
$
278
$
154
$
233
$
125
$
334
$
167
$
2,435
$
1,581
40.5
%
47.6
%
31.4
%
21.9
%
19.9
%
41.0
%
[1]
[2]
[3]
[4]
[5]
December 31, 2009
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
1,732
$
1,716
$
297
$
230
$
150
$
113
$
20
$
17
$
11
$
7
$
2,210
$
2,083
639
626
82
52
52
34
15
7
788
719
1,011
930
356
230
228
123
100
64
89
54
1,784
1,401
1,945
1,636
430
275
536
247
323
132
231
83
3,465
2,373
498
408
139
101
169
68
346
160
201
98
1,353
835
$
5,825
$
5,316
$
1,304
$
888
$
1,135
$
585
$
804
$
380
$
532
$
242
$
9,600
$
7,411
26.5
%
21.2
%
13.1
%
11.6
%
8.7
%
22.0
%
December 31, 2008
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
2,057
$
1,869
$
455
$
299
$
175
$
102
$
36
$
27
$
37
$
25
$
2,760
$
2,322
667
576
85
35
65
22
23
10
840
643
1,142
847
475
152
325
127
55
27
1,997
1,153
2,562
1,498
385
110
469
168
385
140
40
12
3,841
1,928
981
504
438
128
148
45
134
60
5
1
1,706
738
$
7,409
$
5,294
$
1,838
$
724
$
1,182
$
464
$
633
$
264
$
82
$
38
$
11,144
$
6,784
24.4
%
16.4
%
12.2
%
5.3
%
4.4
%
20.6
%
[1]
[2]
Table of Contents
December 31, 2009
AAA
AA
A
BBB
BB and Below
Total
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
$
60
$
41
$
30
$
15
$
69
$
26
$
165
$
44
$
95
$
14
$
419
$
140
19
11
70
22
37
11
27
4
23
4
176
52
17
8
72
12
35
14
49
8
26
6
199
48
23
13
108
33
82
28
69
22
23
12
305
108
62
33
12
3
20
5
26
9
15
10
135
60
22
12
5
1
15
4
13
3
55
20
15
8
2
4
1
9
2
30
11
$
218
$
126
$
292
$
85
$
250
$
85
$
355
$
92
$
204
$
51
$
1,319
$
439
40.0
%
10.5
%
25.5
%
34.9
%
31.6
%
28.1
%
December 31, 2008
AAA
AA
A
BBB
BB and Below
Total
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
$
180
$
59
$
96
$
29
$
79
$
17
$
64
$
7
$
31
$
7
$
450
$
119
129
38
17
6
31
9
11
2
14
3
202
58
94
37
62
15
65
12
10
2
1
232
66
242
76
91
25
81
20
15
2
429
123
139
45
106
19
101
11
12
1
358
76
43
13
22
5
24
3
3
92
21
$
827
$
268
$
394
$
99
$
381
$
72
$
115
$
14
$
46
$
10
$
1,763
$
463
29.7
%
21.3
%
18.2
%
19.4
%
57.0
%
25.4
%
[1]
[2]
[3]
[4]
December 31, 2009
December 31, 2008
AAA
A
BBB
BB and Below
Total
AAA
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
331
$
352
$
$
$
$
$
$
$
331
$
352
$
440
$
423
207
217
207
217
268
199
284
275
1
2
285
277
354
245
137
120
3
1
1
2
141
123
165
104
110
99
110
99
169
109
$
1,069
$
1,063
$
3
$
1
$
1
$
2
$
1
$
2
$
1,074
$
1,068
$
1,396
$
1,080
[1]
[2]
Table of Contents
December 31, 2009
December 31, 2008
Amortized
Valuation
Carrying
Amortized
Valuation
Carrying
Cost [1]
Allowance
Value
Cost [1]
Allowance
Value
$
3,319
$
(40
)
$
3,279
$
3,557
$
(2
)
$
3,555
391
391
460
(13
)
447
701
(176
)
525
724
724
1,081
(142
)
939
1,108
1,108
$
5,492
$
(358
)
$
5,134
$
5,849
$
(15
)
$
5,834
[1]
[2]
December 31, 2009
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
136
$
137
$
47
$
47
$
96
$
96
$
105
$
103
$
22
$
17
$
406
$
400
703
714
26
24
197
186
926
924
292
186
326
249
137
66
755
501
$
1,131
$
1,037
$
373
$
296
$
259
$
186
$
302
$
289
$
22
$
17
$
2,087
$
1,825
December 31, 2008
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
135
$
109
$
29
$
27
$
142
$
103
$
209
$
162
$
30
$
20
$
545
$
421
419
367
6
3
108
97
351
248
58
39
942
754
294
159
332
244
138
84
764
487
$
848
$
635
$
367
$
274
$
388
$
284
$
560
$
410
$
88
$
59
$
2,251
$
1,662
[1]
[2]
[3]
Table of Contents
December 31, 2009
December 31, 2008
Amount
Percent
Amount
Percent
$
596
33.3
%
$
834
36.3
%
302
16.9
%
551
24.0
%
133
7.4
%
156
6.8
%
759
42.4
%
754
32.9
%
$
1,790
100.0
%
$
2,295
100.0
%
December 31, 2009
December 31, 2008
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Items
Cost
Value
Loss
Items
Cost
Value
Loss
1,237
$
11,197
$
10,838
$
(359
)
1,718
$
16,425
$
14,992
$
(1,433
)
105
317
289
(28
)
972
6,533
5,247
(1,286
)
311
2,940
2,429
(511
)
764
7,053
5,873
(1,180
)
134
2,054
1,674
(380
)
741
6,459
4,957
(1,502
)
2,020
22,445
16,636
(5,809
)
2,417
25,279
16,071
(9,208
)
3,807
$
38,953
$
31,866
$
(7,087
)
6,612
$
61,749
$
47,140
$
(14,609
)
Table of Contents
December 31, 2009
December 31, 2008
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
161
$
951
$
672
$
(279
)
1,789
$
21,512
$
13,483
$
(8,029
)
51
55
38
(17
)
225
2,139
800
(1,339
)
159
2,046
1,397
(649
)
112
1,448
618
(830
)
86
1,398
913
(485
)
169
1,989
610
(1,379
)
715
8,146
4,228
(3,918
)
33
377
71
(306
)
1,172
$
12,596
$
7,248
$
(5,348
)
2,328
$
27,465
$
15,582
$
(11,883
)
December 31, 2009
December 31, 2008
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
62
$
169
$
61
$
(108
)
650
$
8,350
$
2,923
$
(5,427
)
28
5
2
(3
)
38
352
56
(296
)
54
190
74
(116
)
28
267
44
(223
)
58
592
210
(382
)
3
15
3
(12
)
220
2,553
735
(1,818
)
422
$
3,509
$
1,082
$
(2,427
)
719
$
8,984
$
3,026
$
(5,958
)
For the years ended December 31,
2009
2008
2007
$
54
$
27
$
19
483
398
28
257
141
18
25
61
137
1,342
67
61
510
98
92
1,142
36
53
19
20
31
13
18
21
4
13
62
24
232
235
212
2
$
1,508
$
3,964
$
483
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Change in Net Economic Value As of December 31,
2009
2008
- 100
+ 100
- 100
+ 100
$
(30
)
$
(9
)
$
(173
)
$
114
Change in Fair Value As of December 31,
2009
2008
- 100
+ 100
- 100
+ 100
$
2,326
$
(2,230
)
$
2,015
$
(1,944
)
Table of Contents
Table of Contents
Table of Contents
Table of Contents
GMWB
Account
% of GMWB
Risk Management Strategy
Duration
Value
Account Value
Life of the product
$
11,299
25
%
Designed to cover the effective life of the product
10,838
24
%
Weighted average of 4 years [2]
23,369
51
%
$
45,506
100
%
[1]
[2]
Net Impact on
Hedging Program
Pre-Tax/DAC
Capital Market Factor
Gain (Loss)
$
(12
)
12
(30
)
30
2
(2
)
[1]
[2]
[3]
Table of Contents
Table of Contents
Table of Contents
Maximum Available As of
Outstanding As of
Effective
Expiration
December 31,
December 31,
Description
Date
Date
2009
2008
2009
2008
11/10/86
N/A
$
2,000
$
2,000
$
$
374
8/9/07
8/9/12
1,900
1,900
$
3,900
$
3,900
$
$
374
As of December 31, 2009
Ratings levels
Notional Amount
Fair Value
$
4,700
$
211
$
14,057
$
381
[1]
[2]
Table of Contents
$
23,911
1,283
240
(103
)
$
25,331
[1]
$
46,912
7,079
1,898
(1,591
)
(634
)
$
53,664
[1]
Table of Contents
As of
December 31,
2009
$
247,658
(150,394
)
(32,296
)
$
64,968
$
31,759
11,029
2,565
1,362
18,253
$
64,968
[1]
[2]
[3]
[4]
[5]
As of
December 31,
Liquidity available to The Hartford
2009
$
10,357
3,631
2,142
(1,694
)
(634
)
$
13,802
Table of Contents
Payments due by period
Less than
More than
Total
1 year
1-3 years
3-5 years
5 years
$
22,162
$
5,649
$
4,796
$
3,055
$
8,662
398,035
27,387
55,721
51,925
263,002
392
130
168
55
39
73
73
18,466
727
1,262
1,342
15,135
1,392
176
471
338
407
2,919
2,669
218
32
1,425
1,237
94
31
63
$
444,864
$
38,048
$
62,730
$
56,778
$
287,308
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
Table of Contents
December 31,
December 31,
2009
2008
Change
$
343
$
398
(14
%)
5,496
5,823
(6
%)
5,839
6,221
(6
%)
21,177
16,788
26
%
(3,312
)
(7,520
)
56
%
$
17,865
$
9,268
93
%
$
23,704
$
15,489
53
%
33
%
67
%
25
%
40
%
[1]
2009
2008
2007
$
2,974
$
4,192
$
5,991
$
(3,123
)
$
(8,827
)
$
(6,176
)
$
523
$
4,274
$
499
$
2,142
$
1,811
$
2,011
Table of Contents
A.M. Best
Fitch
Standard & Poors
Moodys
A
A+
A
A2
A
A-
A
A3
A
A-
A
A3
A
A-
A
A3
bbb+
BBB-
BBB
Baa3
AMB-2
F2
A-2
P-3
bbb-
BB
BB+
Ba1
bbb+
BBB-
BBB
Baa3
A-1
P-2
a
BBB+
A
Baa1
2009
2008
$
7,287
$
6,046
7,364
6,012
$
14,651
$
12,058
Table of Contents
Table of Contents
Table of Contents
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
Hartford, Connecticut
February 23, 2010
Table of Contents
(Executive Vice President; President and Chief Operating Officer, Property & Casualty Operations)
(Senior Vice President and Controller)
(Executive Vice President and General Counsel)
Table of Contents
(Executive Vice President and Chief Investment Officer)
(Executive Vice President; President and Chief Operating Officer, Hartford Life Operations)
(Senior Vice President, Marketing and Communications)
(Executive Vice President, Human Resources)
(Executive Vice President and Chief Financial Officer)
Table of Contents
(a)
(b)
(c)
Number of Securities
Weighted-average
Number of Securities Remaining
to be Issued Upon
Exercise Price of
Available for Future Issuance
Exercise of
Outstanding
Under Equity Compensation Plans
Outstanding Options,
Options, Warrants
(Excluding Securities Reflected in
Warrants and Rights
and Rights
Column (a))
6,450,678
$
49.75
11,607,634[1]
18,188
53.52
251,309
6,468,866
$
49.76
11,858,943
[1]
Table of Contents
(1)
(2)
(3)
Table of Contents
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
Page(s)
F-2
F-3
F-4
F-5
F-6
F-7
F-890
S-1
S-23
S-47
S-8
S-9
S-9
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
Hartford, Connecticut
February 23, 2010
Table of Contents
For the years ended December 31,
(In millions, except for per share data)
2009
2008
2007
$
14,424
$
15,503
$
15,619
4,576
5,135
5,436
4,031
4,335
5,214
3,188
(10,340
)
145
7,219
(6,005
)
5,359
(2,191
)
(3,964
)
(483
)
683
(1,508
)
(3,964
)
(483
)
(502
)
(1,954
)
(511
)
(2,010
)
(5,918
)
(994
)
492
504
496
24,701
9,219
25,916
13,831
14,088
13,919
3,188
(10,340
)
145
4,267
4,271
2,989
3,749
3,993
3,894
476
343
263
32
745
886
710
701
26,429
13,810
21,911
(1,728
)
(4,591
)
4,005
(841
)
(1,842
)
1,056
$
(887
)
$
(2,749
)
$
2,949
127
8
$
(1,014
)
$
(2,757
)
$
2,949
$
(2.93
)
$
(8.99
)
$
9.32
$
(2.93
)
$
(8.99
)
$
9.24
346.3
306.7
316.3
346.3
306.7
319.1
$
0.20
$
1.91
$
2.03
Table of Contents
As of December 31,
(In millions, except for share data)
2009
2008
$
71,153
$
65,112
32,321
30,820
1,221
1,458
5,938
6,469
2,174
2,208
1,790
2,295
602
1,723
10,357
10,022
125,556
120,107
2,142
1,811
3,404
3,604
5,384
6,357
10,686
13,248
3,940
5,239
1,204
1,060
1,026
1,075
3,981
4,898
150,394
130,184
$
307,717
$
287,583
$
21,651
$
21,933
17,980
16,747
45,852
53,753
32,296
30,799
5,221
5,379
343
398
5,496
5,823
1,136
1,210
9,454
11,997
150,394
130,184
289,823
278,223
2,960
4
3
8,985
7,569
11,164
11,336
(1,936
)
(2,120
)
(3,312
)
(7,520
)
17,865
9,268
29
92
17,894
9,360
$
307,717
$
287,583
Table of Contents
For the years ended December 31,
(In millions, except for share data)
2009
2008
2007
$
$
$
2,920
40
2,960
4
3
3
7,569
6,627
6,321
480
887
727
240
186
(126
)
(36
)
257
(11
)
11
49
8,985
7,569
6,627
11,336
14,686
12,421
(3
)
(41
)
11,336
14,683
12,380
(887
)
(2,749
)
2,949
912
(40
)
(87
)
(8
)
(70
)
(590
)
(643
)
11,164
11,336
14,686
(2,120
)
(1,254
)
(47
)
(1,000
)
(1,193
)
187
152
(3
)
(18
)
(14
)
(1,936
)
(2,120
)
(1,254
)
(7,520
)
(858
)
178
(912
)
5,120
(6,662
)
(1,036
)
(3,312
)
(7,520
)
(858
)
17,865
9,268
19,204
92
92
78
(56
)
57
7
(7
)
(57
)
7
29
92
92
$
17,894
$
9,360
$
19,296
6,048
6,048
(6,048
)
3,400
3,400
6,048
300,579
313,842
323,315
(27
)
(14,682
)
(12,878
)
24,194
56,109
2,356
1,673
3,549
(204
)
(254
)
(144
)
383,007
300,579
313,842
Table of Contents
For the years ended December 31,
(In millions)
2009
2008
2007
$
(887
)
$
(2,749
)
$
2,949
5,909
(7,127
)
(1,417
)
(224
)
(387
)
784
94
(23
)
196
146
(155
)
(515
)
141
5,120
(6,662
)
(1,036
)
$
4,233
$
(9,411
)
$
1,913
Table of Contents
For the years ended December 31,
(In millions)
2009
2008
2007
$
(887
)
$
(2,749
)
$
2,949
4,267
4,271
2,989
(2,853
)
(3,675
)
(4,194
)
558
1,026
1,357
236
300
487
380
(4
)
128
(1,271
)
(103
)
306
(246
)
(2,156
)
619
2,010
5,918
994
1,498
(2,276
)
4,695
(1,501
)
2,295
(4,701
)
470
361
794
32
745
281
239
(432
)
2,974
4,192
5,991
53,538
26,097
34,063
949
616
468
629
386
1,365
391
438
324
(54,346
)
(32,708
)
(37,799
)
(307
)
(714
)
(1,224
)
(233
)
(1,469
)
(3,454
)
(274
)
(678
)
(1,229
)
(561
)
909
(271
)
34
(147
)
(10
)
(2,925
)
(1,405
)
2,218
(18
)
(152
)
(627
)
(3,123
)
(8,827
)
(6,176
)
14,239
21,015
32,494
(24,341
)
(25,793
)
(30,443
)
7,203
7,353
(761
)
2,670
495
(24
)
(992
)
(300
)
(375
)
75
(74
)
401
551
727
512
3,400
887
17
41
217
(1,000
)
(1,193
)
(73
)
(149
)
(660
)
(636
)
(187
)
523
4,274
499
(43
)
161
273
331
(200
)
587
1,811
2,011
1,424
$
2,142
$
1,811
$
2,011
$
(243
)
$
253
$
451
$
475
$
286
$
257
Table of Contents
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Accounting Policy
Note
4
4a
5
6
7
8
9
10
11
12
13
17
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
(In millions, except for per share data)
2009
2008
2007
$
(887
)
$
(2,749
)
$
2,949
127
8
$
(1,014
)
$
(2,757
)
$
2,949
346.3
306.7
316.3
2.8
346.3
306.7
319.1
$
(2.93
)
$
(8.99
)
$
9.32
$
(2.93
)
$
(8.99
)
$
9.24
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net assumed (ceded) earned premiums under inter-segment
For the years ended December 31,
arrangements and retention
2009
2008
2007
$
(5
)
$
(6
)
$
(7
)
(24
)
(31
)
(29
)
(21
)
(31
)
(34
)
50
68
70
$
$
$
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Revenues by Product Line
2009
2008
2007
$
1,468
$
1,943
$
2,225
(2
)
(6
)
2
504
618
642
162
198
186
2,132
2,753
3,055
503
374
379
390
405
374
47
49
55
940
828
808
1,975
2,020
1,920
2,126
2,084
1,926
249
287
455
4,350
4,391
4,301
286
290
187
38
48
55
324
338
242
763
876
820
31
(7
)
10
33
3
2
827
872
832
381
923
1,015
114
118
223
495
1,041
1,238
58
60
67
9,126
10,283
10,543
2,903
3,045
3,497
3,188
(10,340
)
145
6,091
(7,295
)
3,642
(1,488
)
(4,138
)
(819
)
13,729
(1,150
)
13,366
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Revenues by Product Line (continued)
2009
2008
2007
$
2,850
$
2,824
$
2,822
1,102
1,102
1,067
3,952
3,926
3,889
1,178
1,241
1,230
1,123
1,167
1,169
279
316
337
2,580
2,724
2,736
847
847
861
555
611
627
288
335
382
411
506
550
2,101
2,299
2,420
250
288
304
42
86
117
86
84
83
208
241
246
250
272
256
393
414
429
(1
)
(3
)
11
1,228
1,382
1,446
9,861
10,331
10,491
7
5
9,861
10,338
10,496
492
504
496
1,106
1,253
1,687
(294
)
(1,877
)
(172
)
11,165
10,218
12,507
(193
)
151
43
$
24,701
$
9,219
$
25,916
[1]
For the years ended December 31,
Geographical Revenue Information
2009
2008
2007
$
20,429
$
18,904
$
24,842
3,816
(9,745
)
968
456
60
106
$
24,701
$
9,219
$
25,916
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Net Income (Loss)
2009
2008
2007
$
(410
)
$
(1,399
)
$
812
15
(43
)
182
193
(6
)
315
(222
)
(157
)
61
(183
)
(325
)
223
(515
)
(502
)
17
(165
)
(11
)
(52
)
(1,287
)
(2,443
)
1,558
120
280
322
395
437
508
258
169
157
170
71
(18
)
943
957
969
37
31
52
943
1,056
1,439
(266
)
(1,669
)
(160
)
(223
)
(219
)
(248
)
1,434
156
2,052
374
(33
)
575
1,060
189
1,477
(77
)
(97
)
30
983
92
1,507
(583
)
(398
)
(116
)
$
(887
)
$
(2,749
)
$
2,949
[1]
[2]
For the years ended December 31,
Amortization of deferred policy acquisition costs and present value of future profits
2009
2008
2007
$
1,389
$
1,344
$
406
314
169
121
61
57
62
56
91
58
364
496
214
17
19
23
2,201
2,176
884
674
633
617
622
636
635
486
513
529
284
313
323
2,066
2,095
2,104
2,066
2,095
2,104
1
$
4,267
$
4,271
$
2,989
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Income tax expense (benefit)
2009
2008
2007
$
(463
)
$
(972
)
$
216
(27
)
(41
)
81
59
(53
)
119
(143
)
(132
)
18
(49
)
(145
)
132
(296
)
(288
)
(8
)
(76
)
(15
)
(11
)
(995
)
(1,646
)
547
374
(33
)
575
(49
)
(62
)
(5
)
325
(95
)
570
(171
)
(101
)
(61
)
$
(841
)
$
(1,842
)
$
1,056
As of December 31,
Assets
2009
2008
2007
$
102,880
$
97,222
$
136,023
15,089
13,770
15,590
8,904
9,036
9,295
28,180
22,581
27,986
41,530
41,502
41,625
62,091
59,853
78,766
6,060
3,927
6,891
264,734
247,891
316,176
33,437
31,484
35,899
4,965
5,196
5,942
38,402
36,680
41,841
4,581
3,012
2,344
$
307,717
$
287,583
$
360,361
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Level 1
Level 2
Level 3
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
$
2,523
$
$
1,943
$
580
2,892
57
2,835
8,544
8,237
307
35,243
27,216
8,027
1,408
1,315
93
12,065
11,803
262
4,847
3,694
1,153
3,631
526
3,105
71,153
526
57,370
13,257
32,321
2,443
29,878
1,221
259
904
58
178
97
81
10,357
6,846
3,511
147,432
112,877
33,593
962
$
262,662
$
122,951
$
125,353
$
14,358
$
(2
)
$
$
$
(2
)
(10
)
(10
)
(12
)
(12
)
(214
)
56
(270
)
(5
)
(5
)
$
(231
)
$
$
56
$
(287
)
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
$
65,112
$
3,541
$
49,761
$
11,810
30,820
1,634
29,186
1,458
246
671
541
976
1,005
(29
)
10,022
7,025
2,997
126,777
94,804
31,187
786
$
235,165
$
107,250
$
114,807
$
13,108
$
(41
)
$
$
$
(41
)
(8
)
(8
)
(49
)
(49
)
(339
)
76
(415
)
(5
)
(5
)
$
(393
)
$
$
76
$
(469
)
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Total realized/unrealized
Purchases,
included in net income
as of
gains (losses) included in:
issuances,
Transfers in
Fair value
related to financial
January 1,
Net income
and
and/or (out)
as of
instruments still held at
Asset (Liability)
2009
[1]
OCI [2]
settlements
of Level 3 [3]
December 31, 2009
December 31, 2009 [1]
$
536
$
(44
)
$
176
$
(45
)
$
(43
)
$
580
$
(34
)
2,612
(491
)
827
(65
)
(48
)
2,835
(447
)
341
(308
)
338
(93
)
29
307
(94
)
6,396
(73
)
1,192
915
(403
)
8,027
(52
)
100
2
11
(20
)
93
2
163
3
25
71
262
1,662
(441
)
214
(243
)
(39
)
1,153
(264
)
11,810
(1,355
)
2,750
505
(453
)
13,257
(889
)
541
2
6
(19
)
(472
)
58
(1
)
(281
)
76
(4
)
29
(9
)
(189
)
131
786
(65
)
344
(103
)
962
(38
)
$
(41
)
$
39
$
$
$
$
(2
)
$
39
(8
)
(2
)
(10
)
(2
)
(49
)
37
(12
)
37
(163
)
70
93
(5
)
(5
)
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Total realized/unrealized
Purchases,
included in net income
as of
gains (losses) included in:
issuances,
Transfers in
Fair value
related to financial
January 1,
Net income
and
and/or (out)
as of
instruments still held at
Asset (Liability)
2008
[1]
OCI [3]
settlements
of Level 3 [5]
December 31, 2008
December 31, 2008 [1]
$
17,996
$
(988
)
$
(4,178
)
$
858
$
(1,878
)
$
11,810
$
(811
)
1,339
(77
)
11
64
(796
)
541
(67
)
(419
)
(471
)
16
491
102
(281
)
(301
)
701
(204
)
(26
)
315
786
(73
)
$
(24
)
$
(17
)
$
$
$
$
(41
)
$
(17
)
(21
)
13
(8
)
13
(45
)
(4
)
(49
)
(4
)
110
(273
)
(163
)
110
(5
)
5
(5
)
(5
)
5
[1]
[2]
[3]
[4]
[6]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4.
December 31, 2009
December 31, 2008
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
$
2,174
$
2,321
$
2,208
$
2,435
5,938
5,091
6,469
5,654
$
12,330
$
12,513
$
14,839
$
14,576
374
374
4,054
4,037
4,052
3,119
1,717
2,338
1,703
1,420
1,131
1,194
1,205
1,188
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
$
9
$
$
$
9
203
8
16
179
347
347
$
559
$
8
$
16
$
535
$
(1,957
)
$
$
$
(1,957
)
(45
)
(45
)
2
2
43
(184
)
227
115
(2
)
6
111
$
(1,842
)
$
(2
)
$
(178
)
$
(1,662
)
December 31, 2008
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
$
600
$
$
13
$
587
1,302
1,302
$
1,902
$
$
13
$
1,889
$
(6,526
)
$
$
$
(6,526
)
(94
)
(94
)
2,064
14
2,050
137
137
$
(4,419
)
$
$
14
$
(4,433
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Total realized/unrealized
Purchases,
included in net income
as of
gains (losses) included in:
issuances,
Transfers in
Fair value
related to financial
January 1,
Net income
and
and/or (out)
as of
instruments still held at
2009
[1] [6]
OCI [2]
Settlements [3]
of Level 3
December 31, 2009
December 31, 2009 [1]
$
27
$
(1,175
)
$
$
964
$
$
(184
)
$
[4]
2,637
(1,059
)
(1,342
)
236
(635
)
2,664
(2,234
)
(378
)
52
1,302
(988
)
33
347
(988
)
(6,526
)
4,686
(117
)
(1,957
)
4,686
(94
)
62
(3
)
(10
)
(45
)
62
(2,654
)
1,526
(3
)
(472
)
(1,603
)
(311
)
339
28
[4]
137
(584
)
737
290
(535
)
137
(895
)
1,076
318
5
(3
)
2
5
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Total realized/unrealized
Purchases,
included in net income
as of
gains (losses) included in:
issuances,
Transfers in
Fair value
related to financial
January 1,
Net income
and
and/or (out)
as of
instruments still held at
2008
[2]
OCI [3]
Settlements [5]
of Level 3
December 31, 2008
December 31, 2008 [2]
$
(12
)
$
1,363
$
$
(1,324
)
$
$
27
$
[7]
655
2,011
(29
)
2,637
1,893
643
3,374
(1,353
)
2,664
238
962
102
1,302
962
(1,433
)
(4,967
)
(126
)
(6,526
)
(4,967
)
(17
)
(82
)
11
(6
)
(94
)
(83
)
(569
)
(713
)
11
(1,383
)
(2,654
)
(11
)
11
[7]
18
85
34
137
102
18
74
45
137
(22
)
25
(1
)
(2
)
25
[1]
[2]
[3]
[4]
[5]
[6]
[7]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
(Before-tax)
2009
2008
2007
$
3,618
$
4,310
$
4,653
93
167
139
316
333
293
139
139
135
(341
)
(445
)
255
318
(72
)
(161
)
(112
)
(97
)
(100
)
4,031
4,335
5,214
3,188
(10,340
)
145
$
7,219
$
(6,005
)
$
5,359
For the years ended December 31,
(Before-tax)
2009
2008
2007
$
1,056
$
607
$
374
(1,397
)
(856
)
(291
)
(1,508
)
(3,964
)
(483
)
47
64
18
(49
)
(33
)
(25
)
(650
)
1,526
(713
)
(286
)
(895
)
74
(12
)
631
(639
)
(298
)
(790
)
(447
)
(289
)
$
(2,010
)
$
(5,918
)
$
(994
)
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
41,973
$
19,599
$
21,968
755
511
424
(1,272
)
(873
)
(276
)
$
941
$
616
$
468
429
38
28
(151
)
(78
)
(15
)
Credit Impairment
$
(1,320
)
(840
)
(292
)
245
3
4
$
(2,200
)
[1]
December 31, 2009
December 31, 2008
Cost or
Gross
Gross
Non-
Cost or
Gross
Gross
Amortized
Unrealized
Unrealized
Fair
Credit
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
OTTI [1]
Cost
Gains
Losses
Value
$
3,040
$
36
$
(553
)
$
2,523
$
(48
)
$
3,431
$
6
$
(971
)
$
2,466
4,054
27
(1,189
)
2,892
(174
)
4,655
2
(2,045
)
2,612
10,736
114
(2,306
)
8,544
(6
)
12,973
43
(4,703
)
8,313
35,318
1,368
(1,443
)
35,243
(23
)
31,059
623
(4,501
)
27,181
1,376
52
(20
)
1,408
2,786
100
(65
)
2,821
12,125
318
(378
)
12,065
(3
)
11,406
202
(953
)
10,655
5,512
104
(769
)
4,847
(185
)
6,045
96
(1,033
)
5,108
3,854
14
(237
)
3,631
5,883
112
(39
)
5,956
76,015
2,033
(6,895
)
71,153
(439
)
78,238
1,184
(14,310
)
65,112
1,333
80
(192
)
1,221
1,554
203
(299
)
1,458
$
77,348
$
2,113
$
(7,087
)
$
72,374
$
(439
)
$
79,792
$
1,387
$
(14,609
)
$
66,570
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
Maturity
Amortized Cost
Fair Value
$
1,404
$
1,418
13,240
13,593
14,165
14,366
23,864
22,970
52,673
52,347
23,342
18,806
$
76,015
$
71,153
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
Less Than 12 Months
12 Months or More
Total
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Cost
Value
Losses
Cost
Value
Losses
Cost
Value
Losses
$
445
$
376
$
(69
)
$
1,574
$
1,090
$
(484
)
$
2,019
$
1,466
$
(553
)
1,649
1,418
(231
)
2,388
1,430
(958
)
4,037
2,848
(1,189
)
1,951
1,628
(323
)
6,330
4,347
(1,983
)
8,281
5,975
(2,306
)
5,715
5,314
(401
)
6,675
5,633
(1,042
)
12,390
10,947
(1,443
)
543
530
(13
)
43
36
(7
)
586
566
(20
)
2,339
2,283
(56
)
2,184
1,862
(322
)
4,523
4,145
(378
)
855
787
(68
)
1,927
1,226
(701
)
2,782
2,013
(769
)
2,592
2,538
(54
)
648
465
(183
)
3,240
3,003
(237
)
16,089
14,874
(1,215
)
21,769
16,089
(5,680
)
37,858
30,963
(6,895
)
419
356
(63
)
676
547
(129
)
1,095
903
(192
)
$
16,508
$
15,230
$
(1,278
)
$
22,445
$
16,636
$
(5,809
)
$
38,953
$
31,866
$
(7,087
)
December 31, 2008
Less Than 12 Months
12 Months or More
Total
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Cost
Value
Losses
Cost
Value
Losses
Cost
Value
Losses
$
1,190
$
958
$
(232
)
$
2,092
$
1,353
$
(739
)
$
3,282
$
2,311
$
(971
)
688
440
(248
)
3,941
2,144
(1,797
)
4,629
2,584
(2,045
)
5,704
4,250
(1,454
)
6,647
3,398
(3,249
)
12,351
7,648
(4,703
)
16,604
14,145
(2,459
)
7,028
4,986
(2,042
)
23,632
19,131
(4,501
)
1,263
1,211
(52
)
43
30
(13
)
1,306
1,241
(65
)
5,153
4,640
(513
)
2,578
2,138
(440
)
7,731
6,778
(953
)
731
546
(185
)
2,607
1,759
(848
)
3,338
2,305
(1,033
)
4,120
4,083
(37
)
66
64
(2
)
4,186
4,147
(39
)
35,453
30,273
(5,180
)
25,002
15,872
(9,130
)
60,455
46,145
(14,310
)
1,017
796
(221
)
277
199
(78
)
1,294
995
(299
)
$
36,470
$
31,069
$
(5,401
)
$
25,279
$
16,071
$
(9,208
)
$
61,749
$
47,140
$
(14,609
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
December 31, 2008
Amortized
Valuation
Carrying
Amortized
Valuation
Carrying
Cost [1]
Allowance
Value
Cost [1]
Allowance
Value
$
604
$
(8
)
$
596
$
646
$
(11
)
$
635
5,492
(358
)
5,134
5,849
(15
)
5,834
208
208
$
6,304
$
(366
)
$
5,938
$
6,495
$
(26
)
$
6,469
[1]
[2]
2009
2008
$
(26
)
$
(408
)
(26
)
68
$
(366
)
$
(26
)
December 31, 2009
December 31, 2008
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
125
2.1
%
$
162
2.5
%
689
11.6
%
825
12.8
%
138
2.3
%
223
3.4
%
449
7.6
%
487
7.5
%
1,377
23.2
%
1,495
23.1
%
1,213
20.4
%
1,102
17.0
%
51
0.9
%
64
1.0
%
297
5.0
%
333
5.2
%
1,599
26.9
%
1,778
27.5
%
$
5,938
100.0
%
$
6,469
100.0
%
[1]
[2]
December 31, 2009
December 31, 2008
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
596
10.0
%
$
635
9.8
%
1,068
18.0
%
1,118
17.3
%
421
7.1
%
483
7.5
%
835
14.1
%
1,131
17.5
%
1,727
29.1
%
1,885
29.1
%
208
3.5
%
712
12.0
%
858
13.3
%
371
6.2
%
359
5.5
%
$
5,938
100.0
%
$
6,469
100.0
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
December 31, 2008
Maximum
Maximum
Total
Total
Exposure
Total
Total
Exposure
Assets
Liabilities [1]
to Loss [2]
Assets
Liabilities [1]
to Loss [2]
$
226
$
32
$
196
$
339
$
69
$
257
31
1
30
151
43
108
111
20
87
249
59
221
$
368
$
53
$
313
$
739
$
171
$
586
[1]
[2]
December 31, 2009
December 31, 2008
Maximum
Maximum
Exposure
Exposure
Assets
Liabilities
to Loss
Assets
Liabilities
to Loss
$
262
$
$
273
$
311
$
$
364
36
36
5
42
40
5
$
298
$
36
$
278
$
353
$
40
$
369
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Asset
Liability
Net Derivatives
Derivatives
Derivatives
Notional Amount
Fair Value
Fair Value
Fair Value
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Hedge Designation/ Derivative Type
2009
2008
2009
2008
2009
2008
2009
2008
$
11,170
$
9,030
$
123
$
640
$
294
$
643
$
(171
)
$
(3
)
6,355
381
1,210
(3
)
(7
)
30
154
(33
)
(161
)
17,906
10,240
120
633
324
797
(204
)
(164
)
1,745
2,138
(21
)
(86
)
16
41
(37
)
(127
)
696
696
(9
)
(57
)
53
47
(62
)
(104
)
2,441
2,834
(30
)
(143
)
69
88
(99
)
(231
)
8,355
8,156
(84
)
(97
)
250
931
(334
)
(1,028
)
1,296
1,372
(21
)
56
14
68
(35
)
(12
)
2,514
(19
)
35
(54
)
2,271
2,334
316
383
319
383
(3
)
2,606
3,668
(50
)
340
45
361
(95
)
(21
)
1,158
1,199
(240
)
(403
)
2
(242
)
(403
)
6,176
2,626
(71
)
(11
)
185
125
(256
)
(136
)
220
256
(16
)
(16
)
3
3
(19
)
(19
)
869
(163
)
(163
)
47,329
48,767
(2,002
)
(6,620
)
(2,002
)
(6,620
)
10,301
11,437
347
1,302
347
1,302
15,567
18,620
52
2,664
264
2,697
(212
)
(33
)
27,448
2,188
318
137
558
137
(240
)
226
206
2
2
500
500
36
42
36
42
125,967
102,198
(1,432
)
(2,386
)
2,060
6,049
(3,492
)
(8,435
)
$
146,314
$
115,272
$
(1,342
)
$
(1,896
)
$
2,453
$
6,934
$
(3,795
)
$
(8,830
)
$
269
$
304
$
(8
)
$
(3
)
$
$
$
(8
)
$
(3
)
24,006
18,667
390
1,576
492
2,172
(102
)
(596
)
64,061
35,763
(56
)
1,862
1,612
3,460
(1,668
)
(1,598
)
64
70
(5
)
(5
)
(5
)
(5
)
10,301
11,437
347
1,302
347
1,302
47,613
49,031
(2,010
)
(6,628
)
2
(2,012
)
(6,628
)
$
146,314
$
115,272
$
(1,342
)
$
(1,896
)
$
2,453
$
6,934
$
(3,795
)
$
(8,830
)
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net Realized Capital Gains (Losses)
Gain (Loss) Recognized in OCI
Recognized in Income
on Derivative (Effective Portion)
on Derivative (Ineffective Portion)
2009
2008
2007
2009
2008
2007
$
(461
)
$
908
$
97
$
(3
)
$
9
$
3
(194
)
233
(53
)
75
(2
)
$
(655
)
$
1,141
$
44
$
72
$
9
$
1
Gain (Loss) Reclassified from AOCI
into Income (Effective Portion)
2009
2008
2007
Interest rate swaps
$
11
$
34
$
(3
)
Interest rate swaps
47
(17
)
(20
)
Foreign currency swaps
(119
)
(83
)
(79
)
Foreign currency swaps
2
1
Total
$
(59
)
$
(65
)
$
(102
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Gain (Loss) Recognized in Income [1]
2009
2008
2007
Hedged
Hedged
Hedged
Derivative
Item
Derivative
Item
Derivative
Item
$
72
$
(68
)
$
(138
)
$
130
$
(103
)
$
99
(37
)
40
25
(18
)
32
(28
)
51
(51
)
(124
)
124
25
(25
)
2
(2
)
42
(42
)
9
(9
)
$
88
$
(81
)
$
(195
)
$
194
$
(37
)
$
37
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
December 31,
2009
2008
2007
$
31
$
12
$
29
(66
)
87
(24
)
(22
)
(12
)
487
53
(533
)
302
84
167
(623
)
(332
)
(3
)
(25
)
2
70
110
4,748
(5,786
)
(670
)
(988
)
1,073
127
(2,234
)
3,374
257
(895
)
74
(12
)
5
2
2
(8
)
(3
)
(4
)
$
260
$
(916
)
$
(488
)
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Underlying Referenced
Weighted
Credit Obligation(s) [1]
Average
Average
Offsetting
Credit Derivative type by derivative
Notional
Fair
Years to
Credit
Notional
Offsetting
risk exposure
Amount [2]
Value
Maturity
Type
Rating
Amount [3]
Fair Value [3]
$
1,226
$
4
4 years
Corporate Credit/Foreign Gov.
AA-
$
1,201
$
(59
)
156
(4
)
3 years
Corporate Credit
B+
85
(12
)
2,052
(54
)
4 years
Corporate Credit
BBB+
1,277
(21
)
525
(141
)
7 years
CMBS Credit
A
525
141
200
(157
)
5 years
Corporate Credit
BBB+
87
83
2 years
Corporate Credit
BBB+
$
4,246
$
(269
)
$
3,088
$
49
Underlying Referenced
Weighted
Credit Obligation(s) [1]
Average
Average
Offsetting
Credit Derivative type by derivative
Notional
Fair
Years to
Credit
Notional
Offsetting
risk exposure
Amount [2]
Value
Maturity
Type
Rating
Amount [3]
Fair Value [3]
$
60
$
(1
)
4 years
Corporate Credit
A-
$
35
$
(9
)
82
(19
)
4 years
Corporate Credit
B-
1,778
(235
)
5 years
Corporate Credit
A-
1,003
21
275
(92
)
8 years
CMBS Credit
AAA
275
92
200
(166
)
6 years
Corporate Credit
BB+
117
106
2 years
Corporate Credit
BBB+
$
2,512
$
(407
)
$
1,313
$
104
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31,
December 31,
2009
2008
$
891
$
3,263
10
14
618
$
905
$
3,891
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
9,448
$
10,441
$
10,675
162
263
273
(484
)
(421
)
(405
)
$
9,126
$
10,283
$
10,543
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Premiums Written
2009
2008
2007
$
10,185
$
10,831
$
11,281
238
218
205
(712
)
(818
)
(1,046
)
$
9,711
$
10,231
$
10,440
$
10,386
$
10,999
$
11,396
253
216
204
(778
)
(877
)
(1,104
)
$
9,861
$
10,338
$
10,496
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2009
2008
2007
$
11,988
$
10,514
$
9,071
(78
)
(79
)
11,910
10,514
8,992
784
1,548
2,059
(1,191
)
(1,023
)
(1,212
)
(1,010
)
(1,153
)
327
(1,031
)
1,754
230
(39
)
348
118
$
9,423
$
11,988
$
10,514
[1]
[2]
[3]
[4]
2009
2008
2007
$
1,260
$
1,228
$
1,197
2,069
2,127
2,135
(2,066
)
(2,095
)
(2,104
)
$
1,263
$
1,260
$
1,228
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
December 31, 2008
Accumulated
Carrying
Accumulated
Carrying
Gross
Impairments
Value
Gross
Impairments
Value
$
581
$
(422
)
$
159
$
581
$
(422
)
$
159
224
224
224
224
87
87
79
79
892
(422
)
470
884
(422
)
462
119
119
119
119
30
30
30
30
149
149
149
149
940
(355
)
585
772
(323
)
449
$
1,981
$
(777
)
$
1,204
$
1,805
$
(745
)
$
1,060
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2009
December 31, 2008
Accumulated Net
Accumulated Net
Acquired Intangible Assets
Gross
Amortization
Gross
Amortization
$
$
$
22
$
21
71
16
70
11
13
1
14
1
6
1
15
14
$
90
$
18
$
121
$
47
Renewal
Distribution
Servicing
Rights
Agreement
Intangibles
Other
Total
$
1
$
59
$
13
$
1
$
74
1
5
6
(1
)
(5
)
(1
)
(1
)
(8
)
$
$
55
$
12
$
5
$
72
$
2
$
65
$
$
$
67
14
1
15
(1
)
(6
)
(1
)
(8
)
$
1
$
59
$
13
$
1
$
74
$
2
$
$
$
4
$
6
70
70
(5
)
(4
)
(9
)
$
2
$
65
$
$
$
67
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
UL Secondary
U.S. GMDB [1]
Japan GMDB/GMIB [1]
Guarantees [1]
$
870
$
229
$
40
298
91
41
(457
)
(117
)
522
341
(5
)
36
$
1,233
$
580
$
76
[1]
UL Secondary
U.S. GMDB [1]
Japan GMDB/GMIB [1]
Guarantees [1]
$
529
$
42
$
19
221
26
21
(269
)
(42
)
389
164
39
$
870
$
229
$
40
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Retained Net
Account
Net Amount
Amount
Weighted Average
Value
at Risk
at Risk
Attained Age of
Maximum anniversary value (MAV) [1]
(AV)
(NAR) [10]
(RNAR) [10]
Annuitant
$
27,423
$
8,408
$
2,461
67
1,868
664
259
67
6,567
1,409
140
63
784
224
45
66
36,642
10,705
2,905
28,612
5,508
3,535
64
1,330
214
214
62
3,790
490
486
67
21,446
1,445
1,405
64
91,820
$
18,362
$
8,545
65
6,802
85,018
65,376
$
150,394
$
30,521
$
6,335
$
5,238
68
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
[10]
Asset type
As of December 31, 2009
As of December 31, 2008
$
75,720
$
63,114
9,298
10,174
$
85,018
$
73,288
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2009
2008
$
553
$
467
59
151
(105
)
(21
)
(69
)
(44
)
$
438
$
553
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
6,066
$
6,028
$
5,877
231
261
236
5,835
5,767
5,641
3,244
3,243
3,186
(88
)
(118
)
(125
)
3,156
3,125
3,061
1,580
1,554
1,470
1,493
1,503
1,465
3,073
3,057
2,935
5,918
5,835
5,767
213
231
261
$
6,131
$
6,066
$
6,028
2009
2008
$
6,131
$
6,066
232
253
123
123
11,494
10,305
$
17,980
$
16,747
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
21,933
$
22,153
$
21,991
3,586
3,922
4,387
18,347
18,231
17,604
6,596
6,933
6,869
(186
)
(226
)
48
6,410
6,707
6,917
2,776
2,888
2,563
3,771
3,703
3,727
6,547
6,591
6,290
18,210
18,347
18,231
3,441
3,586
3,922
$
21,651
$
21,933
$
22,153
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Years ending December 31,
Capital Leases
Operating Leases
$
73
$
130
105
63
37
18
39
$
73
$
392
(5
)
68
(68
)
$
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
502
$
(247
)
$
436
502
(247
)
436
(1,580
)
(1,574
)
473
712
(742
)
(475
)
721
147
(1,343
)
(1,595
)
620
$
(841
)
$
(1,842
)
$
1,056
Deferred Tax Assets
2009
2008
$
682
$
725
641
703
401
405
1,718
2,000
494
419
1,581
4,265
1,102
641
535
195
86
850
66
25
7,306
10,228
(86
)
(75
)
7,220
10,153
(3,179
)
(4,816
)
(43
)
(13
)
(58
)
(85
)
(3,280
)
(4,914
)
$
3,940
$
5,239
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2009
2008
2007
$
91
$
76
$
8
27
33
35
(35
)
(12
)
(8
)
$
48
$
91
$
76
For the years ended December 31,
2009
2008
2007
$
(605
)
$
(1,607
)
$
1,402
(149
)
(161
)
(157
)
(188
)
(191
)
(170
)
78
12
113
11
4
(19
)
$
(841
)
$
(1,842
)
$
1,056
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Short-Term Debt
2009
2008
$
$
374
343
24
$
343
$
398
$
$
275
400
400
320
319
199
199
200
200
300
300
499
499
500
500
499
499
149
148
92
92
298
298
323
323
3,779
4,052
5
500
500
1,212
1,203
1,717
1,703
68
$
5,496
$
5,823
For the years ended December 31,
2009
2008
2007
$
3
$
11
$
13
473
332
250
$
476
$
343
$
263
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
$
275
400
320
200
5,205
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Maximum Available As of
Outstanding As of
Effective
Expiration
December 31,
December 31,
Description
Date
Date
2009
2008
2009
2008
11/10/86
N/A
$
2,000
$
2,000
$
$
374
8/9/07
8/9/12
1,900
1,900
$
3,900
$
3,900
$
$
374
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Statutory Net Income (Loss)
2009
2008
2007
$
1,928
$
(4,553
)
$
729
889
497
1,803
$
2,817
$
(4,056
)
$
2,532
As of December 31,
Statutory Surplus
2009
2008
$
7,287
$
6,046
7,364
6,012
$
14,651
$
12,058
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net Gain
Pension and
(Loss) on
Foreign
Other
Accumulated
Unrealized
Cash-Flow
Currency
Postretirement
Other
Gain (Loss)
Hedging
Translation
Plan
Comprehensive
on Securities
Instruments
Adjustments
Adjustment
Income (Loss)
$
(7,486
)
$
644
$
222
$
(900
)
$
(7,520
)
5,909
5,909
(224
)
(224
)
(912
)
(912
)
(387
)
(387
)
(23
)
(23
)
(155
)
(155
)
$
(2,713
)
$
257
$
199
$
(1,055
)
$
(3,312
)
$
(359
)
$
(140
)
$
26
$
(385
)
$
(858
)
(7,127
)
(7,127
)
784
784
196
196
(515
)
(515
)
$
(7,486
)
$
644
$
222
$
(900
)
$
(7,520
)
$
1,058
$
(234
)
$
(120
)
$
(526
)
$
178
(1,417
)
(1,417
)
94
94
146
146
141
141
$
(359
)
$
(140
)
$
26
$
(385
)
$
(858
)
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
Other Postretirement Benefits
2009
2008
2009
2008
6.00
%
6.25
%
5.75
%
6.25
%
4.00
%
4.25
%
N/A
N/A
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2009
2008
2007
6.25
%
6.25
%
5.75
%
7.30
%
7.30
%
8.00
%
4.25
%
4.25
%
4.25
%
As of December 31,
2009
2008
2007
9.05
%
8.80
%
9.30
%
7.60
%
7.00
%
7.70
%
5.00
%
5.00
%
5.00
%
2018
2015
2013
Other Postretirement
Pension Benefits
Benefits
Change in Benefit Obligation
2009
2008
2009
2008
$
3,938
$
3,713
$
384
$
364
105
121
6
6
243
230
24
23
16
15
71
65
(5
)
17
118
(2
)
17
(197
)
(175
)
(46
)
(42
)
5
2
5
(14
)
(1
)
$
4,283
$
3,938
$
401
$
384
Other Postretirement
Pension Benefits
Benefits
Change in Plan Assets
2009
2008
2009
2008
$
3,326
$
3,957
$
154
$
170
184
(441
)
21
(16
)
201
2
(177
)
(164
)
(13
)
(14
)
5
(14
)
$
3,526
$
3,326
$
175
$
154
$
(757
)
$
(612
)
$
(226
)
$
(230
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31,
2009
2008
$
4,239
$
3,893
4,209
3,869
3,471
3,275
Pension Benefits
Other Postretirement Benefits
2009
2008
2009
2008
$
12
$
6
$
$
(54
)
(20
)
(33
)
(32
)
(715
)
(598
)
(193
)
(198
)
$
(757
)
$
(612
)
$
(226
)
$
(230
)
Pension Benefits
Other Postretirement Benefits
2009
2008
2007
2009
2008
2007
$
105
$
121
$
128
$
6
$
6
$
7
243
230
209
24
23
21
(276
)
(279
)
(283
)
(11
)
(12
)
(8
)
(9
)
(9
)
(13
)
(1
)
(1
)
(6
)
74
59
90
$
137
$
122
$
131
$
18
$
16
$
14
Pension Benefits
Other Postretirement Benefits
2009
2008
2009
2008
$
(74
)
$
(59
)
$
$
9
9
1
1
302
795
3
45
$
237
$
745
$
4
$
46
Pension Benefits
Other Postretirement Benefits
2009
2008
2009
2008
$
1,681
$
1,454
$
9
$
6
(39
)
(49
)
(1
)
(2
)
1
1
$
1,642
$
1,405
$
9
$
5
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Target Asset Allocation
Pension Plan
Other Postretirement Plan
10% 30%
20% 40%
50% 70%
60% 80%
10% 25%
Percentage of Pension Plan Assets
Percentage of Other Postretirement Plan
Fair Value at December 31,
Assets Fair Value at December 31,
2009
2008
2009
2008
28
%
36
%
21
%
19
%
57
%
58
%
79
%
81
%
15
%
6
%
100
%
100
%
100
%
100
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Plan Assets at Fair Value as of December 31, 2009
Asset Category
Level 1
Level 2
Level 3
Total
$
197
$
98
$
$
295
903
12
915
368
24
392
9
279
288
80
2
82
113
113
19
8
27
435
435
130
130
82
82
313
313
1
1
501
501
$
731
$
2,296
$
547
$
3,574
[1]
[2]
[3]
[4]
Actual return on plan assets
Relating to
Beginning
assets still
Relating to
Purchase,
Transfers
Ending
Balance
held at the
assets sold
issuances,
in and / or
balance,
January 1,
reporting
during the
and
out of
December 31,
Asset Category
2009
date
period
settlements
Level 3
2009
$
24
$
7
$
(4
)
$
(10
)
$
(5
)
$
12
1
1
(1
)
23
24
2
2
3
1
4
8
199
57
(9
)
254
501
$
227
$
66
$
(14
)
$
273
$
(5
)
$
547
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Other Postretirement Plan Assets at Fair
Value as of December 31, 2009
Asset Category
Level 1
Level 2
Level 3
Total
$
$
7
$
$
7
65
65
39
39
17
17
12
12
1
1
37
37
$
$
178
$
$
178
[1]
Employer Contributions
Pension Benefits
Other Postretirement Benefits
$
2
$
$
201
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
Other Postretirement Benefits
$
268
$
37
253
40
275
40
293
40
309
41
1,736
196
$
3,134
$
394
$
4
4
4
5
5
32
$
54
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2009
2008
2007
3.2%
2.9%
2.0%
57.8% 57.8%
37.0% 32.2%
21.0% 31.3%
57.8%
33.3%
29.0%
0.3% 4.2%
2.0% 5.0%
4.4% 5.2%
7.3 years
8 years
8 years
Weighted
Average
Weighted
Remaining
Number of Options
Average
Contractual
Aggregate
(in thousands)
Exercise Price
Term
Intrinsic Value
5,829
$
60.43
3.8
$
1,411
7.04
(719
)
57.82
(52
)
52.02
6,469
49.76
3.8
5,203
$
57.05
2.6
$
3.06
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Shares
Weighted-Average
Non-vested Shares
(in thousands)
Grant-Date Fair Value
1,968
$
79.63
733
9.68
(33
)
(573
)
80.32
(250
)
69.36
1,845
$
53.19
Weighted-Average
Weighted-Average
Deferred Units
Grant-Date Fair
Restricted Units
Grant-Date Fair
Non-vested Units
(in thousands)
Value
(in thousands)
Value
$
$
36
24.12
243
20.80
(36
)
24.12
(106
)
16.49
$
137
$
24.12
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2009
2008
2007
1.4
%
3.5
%
2.1
%
91.4
%
45.5
%
23.2
%
0.3
%
1.9
%
4.7
%
6 months
3 months
3 months
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
To Be Well Capitalized
Under Prompt
For Minimum Capital
Corrective Action
Actual
Adequacy Purposes
Provisions
At December 31, 2009
Amount
%
Amount
%
Amount
%
$
32.3
13.2
%
$
19.5
8
%
$
24.4
10
%
$
32.2
13.2
%
$
9.8
4
%
$
14.6
6
%
$
32.2
8.3
%
$
15.6
4
%
$
19.5
5
%
$
52
53
34
$
139
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2009
2008
2009
2008
2009
2008
2009
2008
$
5,394
$
1,544
$
7,637
$
7,503
$
5,230
$
(393
)
$
6,440
$
565
$
7,411
$
1,453
$
7,619
$
6,851
$
5,687
$
3,790
$
5,712
$
1,716
$
(1,209
)
$
145
$
(15
)
$
543
$
(220
)
$
(2,631
)
$
557
$
(806
)
3
62
62
8
$
(1,209
)
$
145
$
(18
)
$
543
$
(282
)
$
(2,631
)
$
495
$
(814
)
$
(3.77
)
$
0.46
$
(0.06
)
$
1.74
$
(0.79
)
$
(8.74
)
$
1.29
$
(2.71
)
$
(3.77
)
$
0.46
$
(0.06
)
$
1.73
$
(0.79
)
$
(8.74
)
$
1.19
$
(2.71
)
320.8
313.8
325.4
311.7
356.1
301.1
382.7
300.2
320.8
315.7
325.4
313.1
356.1
301.1
416.2
300.2
[1]
[2]
[3]
[4]
Table of Contents
As of December 31, 2009
Amount at
which shown on
Type of Investment
Cost
Fair Value
Balance Sheet
$
7,299
$
7,172
$
7,172
12,125
12,065
12,065
1,376
1,408
1,408
5,755
5,900
5,900
29,563
29,343
29,343
19,897
15,265
15,265
76,015
71,153
71,153
248
293
293
1,085
928
928
1,333
1,221
1,221
33,070
32,321
32,321
34,403
33,542
33,542
5,938
5,091
5,938
107
107
107
2,174
2,321
2,174
1,790
1,790
1,790
1,019
495
495
10,357
10,357
10,357
$
131,803
$
124,856
$
125,556
Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
(Registrant)
(In millions)
As of December 31,
Condensed Balance Sheets
2009
2008
$
309
$
149
36
42
1,936
1,484
21,642
14,517
755
583
51
55
368
33
$
25,097
$
16,863
$
366
$
779
275
374
5,250
5,514
1,341
928
7,232
7,595
17,865
9,268
$
25,097
$
16,863
For the years ended December 31,
Condensed Statements of Operations
2009
2008
2007
$
8
$
30
$
24
(231
)
103
(4
)
(223
)
133
20
457
323
241
8
(3
)
18
465
320
259
(688
)
(187
)
(239
)
(157
)
(102
)
(83
)
(531
)
(85
)
(156
)
(356
)
(2,664
)
3,105
$
(887
)
$
(2,749
)
$
2,949
the consolidated financial statements and notes thereto.
Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued)
(Registrant)
For the years ended December 31,
Condensed Statements of Cash Flows
2009
2008
2007
$
(887
)
$
(2,749
)
$
2,949
1,307
(4,766
)
(1,422
)
(590
)
9,372
18
(170
)
1,857
1,545
(412
)
(892
)
(76
)
(10
)
(3,115
)
(2,300
)
(127
)
(3,537
)
(3,192
)
(203
)
2,670
495
(955
)
(300
)
(375
)
75
727
512
3,400
887
20
54
186
(1,000
)
(1,193
)
(3
)
(18
)
(14
)
5
45
(73
)
(149
)
(660
)
(636
)
3,707
1,335
(1,342
)
$
$
$
$
454
$
265
$
239
$
243
$
2,279
$
1,668
the consolidated financial statements and notes thereto.
Table of Contents
Deferred Policy
Acquisition
Other
Costs and
Future Policy Benefits,
Policyholder
Present Value of
Unpaid Losses and Loss
Unearned
Funds and
Segment
Future Profits
Adjustment Expenses
Premiums
Benefits Payable
$
3,821
$
1,749
$
10
$
17,950
2,623
842
1
6,330
78
6,403
84
401
980
293
6,156
1,775
659
37,697
146
7,984
72
9,302
50
1
312
9,423
17,980
168
78,148
643
2,070
1,938
277
3,603
1,306
215
4,442
1,034
128
7,044
776
1,263
17,159
5,054
4,492
1
1,263
21,651
5,055
(2
)
$
10,686
$
39,631
$
5,221
$
78,148
$
5,801
$
1,353
$
11
$
22,164
3,027
781
1
6,010
81
6,356
85
402
877
313
6,437
2,046
229
36,461
156
7,667
40
11,255
48
1
1,823
11,988
16,747
138
84,552
606
2,052
1,904
282
3,572
1,318
232
4,745
1,128
140
6,980
893
1,260
17,349
5,243
4,584
1
1,260
21,933
5,244
(3
)
$
13,248
$
38,680
$
5,379
$
84,552
Table of Contents
Amortization of
Deferred Policy
Acquisition
Earned
Benefits, Losses
Costs and
Premiums, Fee
Net
and Loss
Present Value
Income and
Investment
Adjustment
of Future
Other
Net Written
Segment
Other
Income
Expenses
Profits
Expenses [1]
Premiums
$
2,132
$
750
$
1,310
$
1,389
$
1,049
940
335
640
314
188
4,350
403
3,196
61
1,120
324
315
269
56
346
827
182
621
364
291
495
833
1,301
17
83
58
3,273
3,272
124
9,126
6,091
10,609
2,201
3,201
N/A
4,105
183
2,895
674
459
$
3,987
2,580
223
1,404
622
217
2,572
2,100
258
1,197
486
194
2,021
1,568
279
672
284
492
1,127
10,353
943
6,168
2,066
1,362
9,707
163
242
19
4
10,353
1,106
6,410
2,066
1,381
9,711
13
22
561
$
19,492
$
7,219
$
17,019
$
4,267
$
5,143
$
9,711
[1]
N/A
Table of Contents
Amortization of
Deferred Policy
Acquisition
Earned
Benefits, Losses
Costs and
Premiums, Fee
Net
and Loss
Present Value
Income and
Investment
Adjustment
of Future
Other
Net Written
Segment
Other
Income
Expenses
Profits
Expenses [1]
Premiums
$
2,753
$
747
$
1,008
$
1,344
$
1,609
828
338
627
169
202
4,391
419
3,144
57
1,128
338
342
271
91
335
872
167
270
496
321
1,041
1,004
1,907
19
120
60
(10,312
)
(10,186
)
7
10,283
(7,295
)
(2,959
)
2,176
3,722
N/A
4,061
209
2,749
633
431
$
3,925
2,724
222
1,480
636
224
2,696
2,297
279
1,442
513
208
2,242
1,753
346
907
313
530
1,361
10,835
1,056
6,578
2,095
1,393
10,224
7
197
129
26
7
10,842
1,253
6,707
2,095
1,419
10,231
17
37
650
$
21,142
$
(6,005
)
$
3,748
$
4,271
$
5,791
$
10,231
[1]
N/A
Table of Contents
Amortization of
Deferred Policy
Acquisition
Earned
Benefits, Losses
Costs and
Premiums, Fee
Net
and Loss
Present Value
Income and
Investment
Adjustment
of Future
Other
Net Written
Segment
Other
Income
Expenses
Profits
Expenses [1]
Premiums
$
3,055
$
801
$
820
$
406
$
1,221
808
359
562
121
193
4,301
465
3,109
62
1,131
242
355
249
58
170
832
131
32
214
246
1,238
1,241
2,074
23
185
67
290
301
84
10,543
3,642
7,147
884
3,230
N/A
4,030
249
2,697
617
402
$
3,947
2,737
299
1,413
635
239
2,747
2,420
389
1,560
529
208
2,326
1,800
502
1,054
323
537
1,415
10,987
1,439
6,724
2,104
1,386
10,435
5
248
193
23
5
10,992
1,687
6,917
2,104
1,409
10,440
16
30
1
219
$
21,551
$
5,359
$
14,064
$
2,989
$
4,858
$
10,440
[1]
N/A
Table of Contents
Percentage
Assumed
of Amount
Gross
Ceded to Other
From Other
Net
Assumed
Amount
Companies
Companies
Amount
to Net
$
970,455
$
128,144
$
49,273
$
891,584
6
%
$
10,386
$
778
$
253
$
9,861
3
%
7,245
433
91
6,903
1
%
2,203
51
71
2,223
3
%
$
19,834
$
1,262
$
415
$
18,987
2
%
$
924,987
$
123,074
$
43,736
$
845,649
5
%
$
10,999
$
877
$
216
$
10,338
2
%
8,187
390
173
7,970
2
%
2,254
31
90
2,313
4
%
$
21,440
$
1,298
$
479
$
20,621
2
%
$
824,608
$
216,439
$
82,282
$
690,451
12
%
$
11,396
$
1,104
$
204
$
10,496
2
%
8,360
369
188
8,179
2
%
2,315
36
85
2,364
4
%
$
22,071
$
1,509
$
477
$
21,039
2
%
Table of Contents
Charged to
Write-offs/
Balance
Costs and
Translation
Payments/
Balance
January 1,
Expenses
Adjustment
Other
December 31,
$
125
$
53
$
$
(57
)
$
121
379
11
(55
)
335
1,601
253
(110
)
1,744
26
408
(68
)
366
75
11
86
$
126
$
53
$
$
(54
)
$
125
404
12
(37
)
379
1,395
228
(22
)
1,601
26
26
43
32
75
$
114
$
47
$
$
(35
)
$
126
412
12
(20
)
404
1,241
232
(78
)
1,395
60
(17
)
43
PROPERTY AND CASUALTY INSURANCE OPERATIONS
(In millions)
Discount
Losses and Loss Adjustment
Paid Losses and
Deducted From
Expenses Incurred Related to:
Loss Adjustment
Liabilities [1]
Current Year
Prior Year
Expenses
$
511
$
6,596
$
(186
)
$
6,547
$
488
$
6,933
$
(226
)
$
6,591
$
568
$
6,869
$
48
$
6,290
[1]
Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
By:
/s/ Beth A. Bombara
Beth A. Bombara
Senior Vice President and Controller
(Chief Accounting Officer and duly authorized signatory)
Signature
Title
Date
/s/ Liam E. McGee
Chairman, Chief Executive Officer and Director
(Principal
Executive Officer)
February 23, 2010
/s/ Lizabeth H. Zlatkus
Executive Vice President and Chief Financial Officer
(Principal
Financial Officer)
February 23, 2010
/s/ Beth A. Bombara
Senior Vice President and Controller
(Principal
Accounting Officer)
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
*
Director
February 23, 2010
/s/ Alan J. Kreczko
Alan J. Kreczko
As Attorney-in-Fact
Table of Contents
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
Exhibit No.
Description
3.01
3.02
3.02
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
*10.01
10.02
10.03
Table of Contents
Exhibit No.
Description
10.04
*10.05
*10.06
*10.07
*10.08
*10.09
*10.10
*10.11
*10.12
*10.13
*10.14
*10.15
*10.16
*10.17
*10.18
*10.19
*10.20
*10.21
Table of Contents
Exhibit No.
Description
10.22
10.23
10.24
10.25
10.26
10.27
10.28
10.29
12.01
21.01
23.01
24.01
31.01
31.02
32.01
32.02
99.01
99.02
Table of Contents
Exhibit No.
Description
101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
[1]
*
Sincerely,
THE HARTFORD FINANCIAL SERVICES GROUP, INC. |
||||
By: | /s/ Eileen Whelley | |||
Eileen Whelley | ||||
Executive Vice President,
Human Resources |
/s/ Christopher J. Swift
|
February 14, 2010 |
- 2 -
- 3 -
- 4 -
- 5 -
- 6 -
- 7 -
- 8 -
- 9 -
- 10 -
- 11 -
- 12 -
- 13 -
- 14 -
- 15 -
- 16 -
- 17 -
- 18 -
- 19 -
- 20 -
- 21 -
- 22 -
- 23 -
- 24 -
- 25 -
- 26 -
less than 1 year
|
0 | % | ||
1 but less than 2 years
|
20 | % | ||
2 but less than 3 years
|
40 | % | ||
3 but less than 4 years
|
60 | % | ||
4 but less than 5 years
|
80 | % | ||
5 or more years
|
100 | % |
- 27 -
less than 1 year
|
0 | % | ||
1 but less than 2 years
|
20 | % | ||
2 but less than 3 years
|
40 | % | ||
3 but less than 4 years
|
60 | % | ||
4 but less than 5 years
|
80 | % | ||
5 or more years
|
100 | % |
- 28 -
- 29 -
- 30 -
- 31 -
- 32 -
- 33 -
- 34 -
Type of Contribution | Sub-Account | Account | ||||
|
||||||
-Basic Before-Tax Savings
|
Basic Before-Tax Investment Account | } | ||||
-Basic Roth 401(k) Savings
|
Basic Roth 401(k) Investment Account | Basic Investment Account | ||||
-Basic After-Tax Savings
|
Basic After-Tax Investment Account | |||||
|
||||||
-Supplemental Before-Tax Savings
|
Supplemental Before-Tax Investment Account | |||||
-Supplemental Roth 401(k) Savings
|
Supplemental Roth 401(k) Investment Account | } | ||||
-Supplemental After-Tax Savings
|
Supplemental After-Tax Investment Account | Supplemental Investment Account | ||||
-Prior Plan Transfers
|
||||||
|
||||||
|
||||||
- Before-Tax Catch-Up Savings
Prior to January 1, 2006
|
Supplemental Before-Tax Investment Account | Supplemental Investment Account | ||||
|
||||||
|
||||||
- Before-Tax Catch-Up Savings On
and After January 1, 2006
|
Before-Tax Catch-Up
Contributions Account |
|||||
|
||||||
|
||||||
-Roth 401(k) Catch-Up Savings
|
Roth 401(k) Catch-Up
Contributions Account |
|||||
|
||||||
-Rollovers
|
Rollover Account | |||||
|
||||||
|
||||||
-Matching Company Contributions
(including pre-Distribution ITT type) |
} | Company Contribution Account | ||||
|
||||||
-Floor Company Contributions
|
||||||
|
||||||
-Prior Plan Transfers
|
||||||
|
||||||
-Reinvested Dividends Attributable
to The Hartford Stock Fund
|
||||||
|
||||||
|
||||||
Planco Profit Sharing Contributions
|
Planco Profit Sharing Contributions Account | |||||
|
||||||
|
||||||
ESOP balances (from Pre-
Distribution ITT Plan) |
ESOP Account | |||||
|
- 35 -
- 36 -
- 37 -
- 38 -
- 39 -
Members or Deferred | ||
Members Date of Birth | Default Target Retirement Fund | |
|
||
Prior to 1940
|
Vanguard Target Retirement Income Fund | |
|
||
1940 through 1944
|
Vanguard Target Retirement 2005 Fund | |
|
||
1945 through 1954
|
Vanguard Target Retirement 2015 Fund | |
|
||
1955 through 1964
|
Vanguard Target Retirement 2025 Fund | |
|
||
1965 through 1974
|
Vanguard Target Retirement 2035 Fund | |
|
||
1975 or later
|
Vanguard Target Retirement 2045 Fund |
Members or Deferred | ||
Members Date of Birth | Default Target Retirement Fund | |
|
||
Prior to 1937
|
Vanguard Target Retirement Income Fund | |
|
||
1937 through 1942
|
Vanguard Target Retirement 2005 Fund | |
|
||
1943 through 1947
|
Vanguard Target Retirement 2010 Fund | |
|
||
1948 through 1952
|
Vanguard Target Retirement 2015 Fund | |
|
||
1953 through 1957
|
Vanguard Target Retirement 2020 Fund | |
|
||
1958 through 1962
|
Vanguard Target Retirement 2025 Fund | |
|
||
1963 through 1967
|
Vanguard Target Retirement 2030 Fund | |
|
||
1968 through 1972
|
Vanguard Target Retirement 2035 Fund | |
|
||
1973 through 1977
|
Vanguard Target Retirement 2040 Fund | |
|
||
1978 through 1982
|
Vanguard Target Retirement 2045 Fund | |
|
||
1983 or Later
|
Vanguard Target Retirement 2050 Fund |
- 40 -
- 41 -
- 42 -
- 43 -
- 44 -
- 45 -
- 46 -
- 47 -
- 48 -
- 49 -
- 50 -
- 51 -
- 52 -
- 53 -
- 54 -
- 55 -
- 56 -
- 57 -
- 58 -
- 59 -
- 60 -
- 61 -
- 62 -
- 63 -
- 64 -
- 65 -
- 66 -
17.11 |
Construction
.
The Plan shall be construed, regulated and administered in accordance
with the laws of the State of New York, subject to the provisions of applicable Federal laws.
|
- 67 -
Age of the Employee | Distribution Period | ||||
70
|
27.4 | ||||
71
|
26.5 | ||||
72
|
25.6 | ||||
73
|
24.7 | ||||
74
|
23.8 | ||||
75
|
22.9 | ||||
76
|
22.0 | ||||
77
|
21.2 | ||||
78
|
20.3 | ||||
79
|
19.5 | ||||
80
|
18.7 | ||||
81
|
17.9 | ||||
82
|
17.1 | ||||
83
|
16.3 | ||||
84
|
15.5 | ||||
85
|
14.8 | ||||
86
|
14.1 | ||||
87
|
13.4 | ||||
88
|
12.7 | ||||
89
|
12.0 | ||||
90
|
11.4 | ||||
91
|
10.8 | ||||
92
|
10.2 | ||||
93
|
9.6 | ||||
94
|
9.1 | ||||
95
|
8.6 | ||||
96
|
8.1 | ||||
97
|
7.6 | ||||
98
|
7.1 | ||||
99
|
6.7 | ||||
100
|
6.3 | ||||
101
|
5.9 | ||||
102
|
5.5 | ||||
103
|
5.2 | ||||
104
|
4.9 | ||||
105
|
4.5 | ||||
106
|
4.2 | ||||
107
|
3.9 | ||||
108
|
3.7 | ||||
109
|
3.4 | ||||
110
|
3.1 | ||||
111
|
2.9 | ||||
112
|
2.6 | ||||
113
|
2.4 | ||||
114
|
2.1 | ||||
115 and older
|
1.9 |
- 68 -
[1] |
Interest credited to contractholders includes interest credited on general account assets and interest credited on consumer notes.
For the year ended December 31, 2008, the $(8.5) billion in interest credited to contractholders was primarily due to $(10.3) billion
in investment income losses and mark-to-market effects of equity securities, trading, supporting the international variable annuity
business.
|
|
[2] |
Interest factor attributable to rental and others includes 1/3 of total rent expense as disclosed in the notes to the financial
statements, capitalized interest and amortization of debt issuance costs.
|
|
[3] |
Preferred stock dividend requirements include preferred stock dividends accrued and accretion of discount on preferred stock issuance.
|
|
[4] |
Ratios of less than one-to-one are presented as NM or not meaningful.
|
|
[5] |
Represents additional earnings that would be necessary to result in a one-to-one ratio. These amounts are primarily due to
before-tax realized losses of $(2.0) billion and $(5.9) billion, which includes before-tax impairments of $(1.5) billion and $(4.0)
billion, for the years ended December 31, 2009 and 2008, respectively.
|
|
[6] |
These secondary ratios are disclosed for the convenience of fixed income investors and the rating agencies that serve them and is
more comparable to the ratios disclosed by all issuers of fixed income securities.
|
2
3
Form S-3 Registration No. | Form S-8 Registration Nos. | |
333-142044
|
333-105707 | |
|
333-049170 | |
|
333-105706 | |
|
333-034092 | |
|
033-080665 | |
|
333-012563 | |
|
333-125489 | |
|
333-157372 | |
|
333-160173 |
/s/ Liam E. McGee
|
/s/ Edward J. Kelly, III
|
|||
|
||||
/s/ Lizabeth H. Zlatkus
|
/s/ Gail J. McGovern
|
|||
|
||||
/s/ Beth A. Bombara
|
/s/ Michael G. Morris
|
|||
|
||||
/s/ Robert B. Allardice, III
|
/s/ Charles B. Strauss
|
|||
|
||||
/s/ Trevor Fetter
|
/s/ H. Patrick Swygert
|
1. |
I have reviewed this Annual Report on Form 10-K of The Hartford Financial Services
Group, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the
periods presented in this report;
|
4. |
The registrants other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
|
||
b. |
Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
|
||
c. |
Evaluated the effectiveness of the registrants disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
||
d. |
Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal
quarter (the registrants fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting; and
|
5. |
The registrants other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrants
auditors and the audit committee of the registrants board of directors (or persons
performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrants ability to record, process, summarize and
report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal control over
financial reporting.
|
Date: February 23, 2010 | /s/ Liam E. McGee | |||
Liam E. McGee | ||||
Chairman, President and Chief Executive Officer |
1. |
I have reviewed this Annual Report on Form 10-K of The Hartford Financial Services
Group, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the
periods presented in this report;
|
4. |
The registrants other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
|
||
b. |
Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
|
||
c. |
Evaluated the effectiveness of the registrants disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
||
d. |
Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal
quarter (the registrants fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting; and
|
5. |
The registrants other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrants
auditors and the audit committee of the registrants board of directors (or persons
performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrants ability to record, process, summarize and
report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal control over
financial reporting.
|
Date: February 23, 2010 | /s/ Lizabeth H. Zlatkus | |||
Lizabeth H. Zlatkus | ||||
Executive Vice President and Chief Financial Officer |
1) |
The Report fully complies with the requirements of section 13(a) or section 15(d) of
the Securities Exchange Act of 1934; and
|
2) |
The information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
|
Date: February 23, 2010 | /s/ Liam E. McGee | |||
Liam E. McGee | ||||
Chairman, President and Chief Executive Officer |
1) |
The Report fully complies with the requirements of section 13(a) or section 15(d) of
the Securities Exchange Act of 1934; and
|
2) |
The information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
|
Date: February 23, 2010 | /s/ Lizabeth H. Zlatkus | |||
Lizabeth H. Zlatkus | ||||
Executive Vice President and Chief Financial Officer |
(i) |
The compensation committee of The Hartford Financial Services Group, Inc. (the Company) has
discussed, reviewed, and evaluated with senior risk officers at least every six months during
the period beginning on the later of September 14, 2009, or ninety days after the closing date
of the agreement between the TARP recipient and Treasury and ending with the last day of the
TARP recipients fiscal year containing that date (the applicable period), the senior
executive officer (SEO) compensation plans and the employee compensation plans and the risks
these plans pose to the Company;
|
(ii) |
The compensation committee of the Company has identified and limited during the applicable
period any features of the SEO compensation plans that could lead SEOs to take unnecessary and
excessive risks that could threaten the value of the Company, and during that same applicable
period has identified any features of the employee compensation plans that pose risks to the
Company and has limited those features to ensure that the Company is not unnecessarily exposed
to risks;
|
(iii) |
The compensation committee has reviewed, at least every six months during the applicable
period, the terms of each employee compensation plan and identified any features of the plan
that could encourage the manipulation of reported earnings of the Company to enhance the
compensation of an employee, and has limited any such features;
|
(iv) |
The compensation committee of the Company will certify to the reviews of the SEO compensation
plans and employee compensation plans required under (i) and (iii) above;
|
(v) |
The compensation committee of the Company will provide a narrative description of how it
limited during any part of the most recently completed fiscal year that included a TARP period
the features in
|
(A) |
SEO compensation plans that could lead SEOs to take unnecessary and excessive risks
that could threaten the value of the Company;
|
(B) |
Employee compensation plans that unnecessarily expose the Company to risks; and
|
(C) |
Employee compensation plans that could encourage the manipulation of reported
earnings of the Company to enhance the compensation of an employee;
|
(vi) |
The Company has required that bonus payments, as defined in the regulations and guidance
established under section 111 of EESA (bonus payments), of the SEOs and twenty next most
highly compensated employees be subject to a recovery or clawback provision during any
part of the most recently completed fiscal year that was a TARP period if the bonus payments
were based on materially inaccurate financial statements or any other materially inaccurate
performance metric criteria;
|
(vii) |
The Company has prohibited any golden parachute payment, as defined in the regulations and
guidance established under section 111 of EESA, to an SEO or any of the next five most highly
compensated employees during the period beginning on the later of the closing date of the
agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last
day of the TARP recipients fiscal year containing that date;
|
(viii) |
The Company has limited bonus payments to its applicable employees in accordance with
section 111 of EESA and the regulations and guidance established thereunder during the period
beginning on the later of the closing date of the agreement between the TARP recipient and
Treasury or June 15, 2009 and ending with the last day of the TARP recipients fiscal year
containing that date;
|
(ix) |
The board of directors of the Company has established an excessive or luxury expenditures
policy, as defined in the regulations and guidance established under section 111 of EESA, by
the later of September 14, 2009, or ninety days after the closing date of the agreement
between the TARP recipient and Treasury; this policy has been provided to Treasury and its
primary regulatory agency; the Company and its employees have complied with this policy during
the applicable period; and any expenses that, pursuant to this policy, required approval of
the board of directors, a committee of the board of directors, an SEO, or an executive officer
with a similar level of responsibility were properly approved;
|
(x) |
The Company will permit a non-binding shareholder resolution in compliance with any
applicable Federal securities rules and regulations on the disclosures provided under the
Federal securities laws related to SEO compensation paid or accrued during the period
beginning on the later of the closing date of the agreement between the TARP recipient and
Treasury or June 15, 2009 and ending with the last day of the TARP recipients fiscal year
containing that date;
|
(xi) |
The Company will disclose the amount, nature, and justification for the offering during the
period beginning on the later of the closing date of the agreement between the TARP recipient
and Treasury or June 15, 2009 and ending with the last day of the TARP recipients fiscal year
containing that date of any perquisites, as defined in the regulations and guidance
established under section 111 of EESA, whose total value exceeds $25,000 for any employee who
is subject to the bonus payment limitations identified in paragraph (viii);
|
(xii) |
The Company will disclose whether the Company, the board of directors of the Company, or the
compensation committee of the Company has engaged during the period beginning on the later of
the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and
ending with the last day of the TARP recipients fiscal year containing that date, a
compensation consultant; and the services the compensation consultant or any affiliate of the
compensation consultant provided during this period;
|
(xiii) |
The Company has prohibited the payment of any gross-ups, as defined in the regulations and
guidance established under section 111 of EESA, to the SEOs and the next twenty most highly
compensated employees during the period beginning on the later of the closing date of the
agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last
day of the TARP recipients fiscal year containing that date;
|
(xiv) |
The Company has substantially complied with all other requirements related to employee
compensation that are provided in the agreement between the Company and Treasury, including
any amendments;
|
(xv) |
The Company has submitted to Treasury a complete and accurate list of the SEOs and the twenty
next most highly compensated employees for the current fiscal year and the most recently
completed fiscal year, with the non-SEOs ranked in descending order of level of annual
compensation, and with the name, title, and employer of each SEO and most highly compensated
employee identified; and
|
(xvi) |
I understand that a knowing and willful false or fraudulent statement made in connection
with this certification may be punished by fine, imprisonment, or both.
|
Date: February 23, 2010 | /s/ Liam E. McGee | |||
Liam E. McGee | ||||
Chairman, President and Chief Executive Officer |
(i) |
The compensation committee of The Hartford Financial Services Group, Inc. (the Company) has
discussed, reviewed, and evaluated with senior risk officers at least every six months during
the period beginning on the later of September 14, 2009, or ninety days after the closing date
of the agreement between the TARP recipient and Treasury and ending with the last day of the
TARP recipients fiscal year containing that date (the applicable period), the senior
executive officer (SEO) compensation plans and the employee compensation plans and the risks
these plans pose to the Company;
|
(ii) |
The compensation committee of the Company has identified and limited during the applicable
period any features of the SEO compensation plans that could lead SEOs to take unnecessary and
excessive risks that could threaten the value of the Company, and during that same applicable
period has identified any features of the employee compensation plans that pose risks to the
Company and has limited those features to ensure that the Company is not unnecessarily exposed
to risks;
|
(iii) |
The compensation committee has reviewed, at least every six months during the applicable
period, the terms of each employee compensation plan and identified any features of the plan
that could encourage the manipulation of reported earnings of the Company to enhance the
compensation of an employee, and has limited any such features;
|
(iv) |
The compensation committee of the Company will certify to the reviews of the SEO compensation
plans and employee compensation plans required under (i) and (iii) above;
|
(v) |
The compensation committee of the Company will provide a narrative description of how it
limited during any part of the most recently completed fiscal year that included a TARP period
the features in
|
(A) |
SEO compensation plans that could lead SEOs to take unnecessary and excessive risks
that could threaten the value of the Company;
|
(B) |
Employee compensation plans that unnecessarily expose the Company to risks; and
|
(C) |
Employee compensation plans that could encourage the manipulation of reported
earnings of the Company to enhance the compensation of an employee;
|
(vi) |
The Company has required that bonus payments, as defined in the regulations and guidance
established under section 111 of EESA (bonus payments), of the SEOs and twenty next most
highly compensated employees be subject to a recovery or clawback provision during any
part of the most recently completed fiscal year that was a TARP period if the bonus payments
were based on materially inaccurate financial statements or any other materially inaccurate
performance metric criteria;
|
(vii) |
The Company has prohibited any golden parachute payment, as defined in the regulations and
guidance established under section 111 of EESA, to an SEO or any of the next five most highly
compensated employees during the period beginning on the later of the closing date of the
agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last
day of the TARP recipients fiscal year containing that date;
|
(viii) |
The Company has limited bonus payments to its applicable employees in accordance with
section 111 of EESA and the regulations and guidance established thereunder during the period
beginning on the later of the closing date of the agreement between the TARP recipient and
Treasury or June 15, 2009 and ending with the last day of the TARP recipients fiscal year
containing that date;
|
(ix) |
The board of directors of the Company has established an excessive or luxury expenditures
policy, as defined in the regulations and guidance established under section 111 of EESA, by
the later of September 14, 2009, or ninety days after the closing date of the agreement
between the TARP recipient and Treasury; this policy has been provided to Treasury and its
primary regulatory agency; the Company and its employees have complied with this policy during
the applicable period; and any expenses that, pursuant to this policy, required approval of
the board of directors, a committee of the board of directors, an SEO, or an executive officer
with a similar level of responsibility were properly approved;
|
(x) |
The Company will permit a non-binding shareholder resolution in compliance with any
applicable Federal securities rules and regulations on the disclosures provided under the
Federal securities laws related to SEO compensation paid or accrued during the period
beginning on the later of the closing date of the agreement between the TARP recipient and
Treasury or June 15, 2009 and ending with the last day of the TARP recipients fiscal year
containing that date;
|
(xi) |
The Company will disclose the amount, nature, and justification for the offering during the
period beginning on the later of the closing date of the agreement between the TARP recipient
and Treasury or June 15, 2009 and ending with the last day of the
TARP recipients fiscal year containing that date of any perquisites, as defined in the
regulations and guidance established under section 111 of EESA, whose total value exceeds
$25,000 for any employee who is subject to the bonus payment limitations identified in
paragraph (viii);
|
(xii) |
The Company will disclose whether the Company, the board of directors of the Company, or the
compensation committee of the Company has engaged during the period beginning on the later of
the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and
ending with the last day of the TARP recipients fiscal year containing that date, a
compensation consultant; and the services the compensation consultant or any affiliate of the
compensation consultant provided during this period;
|
(xiii) |
The Company has prohibited the payment of any gross-ups, as defined in the regulations and
guidance established under section 111 of EESA, to the SEOs and the next twenty most highly
compensated employees during the period beginning on the later of the closing date of the
agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last
day of the TARP recipients fiscal year containing that date;
|
(xiv) |
The Company has substantially complied with all other requirements related to employee
compensation that are provided in the agreement between the Company and Treasury, including
any amendments;
|
(xv) |
The Company has submitted to Treasury a complete and accurate list of the SEOs and the twenty
next most highly compensated employees for the current fiscal year and the most recently
completed fiscal year, with the non-SEOs ranked in descending order of level of annual
compensation, and with the name, title, and employer of each SEO and most highly compensated
employee identified; and
|
(xvi) |
I understand that a knowing and willful false or fraudulent statement made in connection
with this certification may be punished by fine, imprisonment, or both.
|
Date: February 23, 2010 | /s/ Lizabeth H. Zlatkus | |||
Lizabeth H. Zlatkus | ||||
Executive Vice President and Chief Financial Officer | ||||