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.) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
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2. | 25 | |||||||
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3. | 25 | |||||||
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4. | 27 | |||||||
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5. | 27 | |||||||
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7. | 30 | |||||||
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7A. | 121 | |||||||
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8. | 121 | |||||||
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9. | 121 | |||||||
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9B. | 123 | |||||||
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10. | 124 | |||||||
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11. | 126 | |||||||
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12. | 126 | |||||||
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13. | 128 | |||||||
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14. | 128 | |||||||
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15. | 128 | |||||||
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II-1 | ||||||||
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II-2 | ||||||||
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Exhibit 10.07 | ||||||||
Exhibit 10.08 | ||||||||
Exhibit 10.09 | ||||||||
Exhibit 10.10 | ||||||||
Exhibit 10.11 | ||||||||
Exhibit 10.12 | ||||||||
Exhibit 10.27 | ||||||||
Exhibit 12.01 | ||||||||
Exhibit 21.01 | ||||||||
Exhibit 23.01 | ||||||||
Exhibit 24.01 | ||||||||
Exhibit 31.01 | ||||||||
Exhibit 31.02 | ||||||||
Exhibit 32.01 | ||||||||
Exhibit 32.02 | ||||||||
Exhibit 99.01 | ||||||||
Exhibit 99.02 |
2
|
uncertainties related to the Companys current operating environment, which reflects
constrained capital and credit markets and uncertainty about the timing and strength of an
economic recovery, and whether managements efforts to identify and address these risks will
be timely and effective;
|
|
risks associated with our continued execution of steps to realign our business and
reposition our investment portfolio, including the potential need to take other actions;
|
|
market risks associated with our business, including changes in interest rates, credit
spreads, equity prices, foreign exchange rates, and implied volatility levels, as well as
uncertainty in key sectors such as the global real estate market, that continued to pressure
our results in 2010;
|
|
volatility in our earnings resulting from our 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 negative
rating actions or downgrades in the Companys financial strength and credit ratings or
negative rating actions or downgrades 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 changes in
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, earthquake, or other natural or man-made disaster that may
adversely affect our businesses and cost and availability of reinsurance;
|
|
weather and other natural physical events, including the severity and frequency of storms,
hail, winter storms, hurricanes and tropical storms, as well as climate change and its
potential impact on weather patterns;
|
|
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;
|
3
|
the restrictions, oversight, costs and other consequences of being a savings and loan holding
company, including from the supervision, regulation and examination by the Office of Thrift
Supervision (the OTS), and in the future, as a result of the enactment of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act), The Federal Reserve as
the Companys regulator and the Office of the Controller of the Currency as regulator of Federal
Trust Bank;
|
|
the cost and other effects of increased regulation as a result of the enactment of the
Dodd-Frank Act, which will, among other effects, vest a newly created Financial Services
Oversight Council with the power to designate systemically important institutions, require
central clearing of, and/or impose new margin and capital requirements on, derivatives
transactions, and may affect our ability as a savings and loan holding company to manage our
general account by limiting or eliminating investments in certain private equity and hedge
funds;
|
|
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 Company to declare and pay dividends is subject to limitations;
|
|
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 risk that our framework for managing business risks may not be effective in mitigating
risk and loss to us that could adversely affect our business;
|
|
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;
|
|
unfavorable judicial or legislative developments; 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
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
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
F-91
F-92
F-93
F-94
F-95
F-96
S-1
S-2
S-3
S-4
S-5
S-6
S-7
II-1
II-4
(Dollar amounts in millions, except for per share data, unless otherwise stated)
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Item 5.
MARKET FOR THE HARTFORDS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES
1
st
Qtr.
2
nd
Qtr.
3
rd
Qtr.
4
th
Qtr.
$
28.58
$
29.64
$
24.12
$
27.43
$
22.34
$
22.13
$
19.09
$
22.26
$
0.05
$
0.05
$
0.05
$
0.05
$
19.68
$
18.16
$
28.62
$
29.20
$
3.62
$
7.67
$
10.18
$
23.16
$
0.05
$
0.05
$
0.05
$
0.05
Total Number of
Approximate Dollar
Shares Purchased as
Value of Shares that
Total Number
Average Price
Part of Publicly
May Yet Be
of Shares
Paid Per
Announced Plans or
Purchased Under
Period
Purchased [1]
Share
Programs
the Plans or Programs
(in millions)
6,351
$
23.53
$
807
4,820
$
23.95
$
807
$
$
807
11,171
$
23.71
N/A
[1]
Table of Contents
For the Years Ended
Company/Index
2006
2007
2008
2009
2010
10.82
%
(4.55
%)
(79.99
%)
43.91
%
14.89
%
15.79
%
5.49
%
(37.00
%)
26.46
%
15.06
%
10.91
%
(6.31
%)
(58.14
%)
13.90
%
15.80
%
Base Period
For the Years Ended
Company/Index
2005
2006
2007
2008
2009
2010
$
100
$
110.82
$
105.77
$
21.16
$
30.46
$
34.99
$
100
$
115.79
$
122.16
$
76.96
$
97.33
$
111.99
$
100
$
110.91
$
103.92
$
43.50
$
49.54
$
57.37
Table of Contents
(In millions, except for per share data and combined ratios)
2010
2009
2008
2007
2006
$
14,055
$
14,424
$
15,503
$
15,619
$
15,023
4,784
4,576
5,135
5,436
4,739
4,392
4,031
4,335
5,214
4,691
(774
)
3,188
(10,340
)
145
1,824
3,618
7,219
(6,005
)
5,359
6,515
(852
)
(2,191
)
(3,964
)
(483
)
(121
)
418
683
(434
)
(1,508
)
(3,964
)
(483
)
(121
)
(120
)
(502
)
(1,954
)
(511
)
(130
)
(554
)
(2,010
)
(5,918
)
(994
)
(251
)
480
492
504
496
474
22,383
24,701
9,219
25,916
26,500
13,025
13,831
14,088
13,919
13,218
(774
)
3,188
(10,340
)
145
1,824
2,544
4,267
4,271
2,989
3,558
4,663
4,635
4,703
4,595
4,021
508
476
343
263
277
153
32
745
20,119
26,429
13,810
21,911
22,898
2,264
(1,728
)
(4,591
)
4,005
3,602
584
(841
)
(1,842
)
1,056
857
1,680
(887
)
(2,749
)
2,949
2,745
515
127
8
$
1,165
$
(1,014
)
$
(2,757
)
$
2,949
$
2,745
$
159,742
$
150,394
$
130,184
$
199,946
$
180,484
318,346
307,717
287,583
360,361
326,544
400
343
398
1,365
599
6,207
5,496
5,823
3,142
3,504
159,742
150,394
130,184
199,946
180,484
21,312
21,177
16,788
20,062
18,698
(1,001
)
(3,312
)
(7,520
)
(858
)
178
20,311
17,865
9,268
19,204
18,876
$
2.70
$
(2.93
)
$
(8.99
)
$
9.32
$
8.89
2.49
(2.93
)
(8.99
)
9.24
8.69
0.20
0.20
1.91
2.03
1.70
$
24,009
$
23,704
$
23,523
$
26,254
$
24,797
$
111
$
(1,034
)
$
(932
)
$
213
$
(76
)
$
98,175
$
93,235
$
89,287
$
94,904
$
89,778
Table of Contents
Item 7.
Description
Page
31
33
35
61
66
72
75
76
79
82
84
86
87
88
92
100
111
121
Table of Contents
Increase
Increase
(Decrease) From
(Decrease) From
Segment Results
2010
2009
2008
2009 to 2010
2008 to 2009
$
995
$
899
$
133
$
96
$
766
185
193
(6
)
(8
)
199
1,180
1,092
127
88
965
143
140
102
3
38
404
(1,166
)
(2,287
)
1,570
1,121
262
39
(19
)
223
58
47
(222
)
(157
)
269
(65
)
132
34
37
98
(3
)
845
(1,315
)
(2,426
)
2,160
1,111
(488
)
(804
)
(552
)
316
(252
)
$
1,680
$
(887
)
$
(2,749
)
$
2,567
$
1,862
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
$
162
$
$
$
162
435
435
13
15
28
587
1,674
2,261
1,256
1,256
6,701
6,701
2,720
34
2,754
644
644
269
269
400
400
901
901
14
2
2,121
2,137
12,366
2,160
3,422
17,948
2,361
17
699
3,077
$
14,727
$
2,177
$
4,121
$
21,025
[1]
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Total
Property &
Property and
Casualty
Consumer
Corporate and
Casualty
Commercial
Markets
Other
Insurance
$
15,051
$
2,109
$
4,491
$
21,651
2,570
11
860
3,441
12,481
2,098
3,631
18,210
3,579
2,737
6,316
152
300
452
(361
)
(86
)
251
(196
)
3,370
2,951
251
6,572
(3,485
)
(2,889
)
(460
)
(6,834
)
12,366
2,160
3,422
17,948
2,361
17
699
3,077
$
14,727
$
2,177
$
4,121
$
21,025
$
5,744
$
3,947
60.7
73.2
58.7
74.8
(6.3
)
(2.2
)
[1]
[2]
Table of Contents
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
$
(54
)
$
(115
)
$
$
(169
)
(88
)
(88
)
(70
)
(70
)
(66
)
(66
)
(42
)
(42
)
(19
)
(19
)
(16
)
(16
)
(5
)
(5
)
23
23
67
67
189
189
11
11
(30
)
(30
)
26
26
1
10
11
2
(4
)
(16
)
(18
)
$
(361
)
$
(86
)
$
251
$
(196
)
Table of Contents
Total
Property &
Property and
Casualty
Consumer
Corporate and
Casualty
Commercial
Markets
Other
Insurance
$
15,273
$
2,083
$
4,577
$
21,933
2,742
46
798
3,586
12,531
2,037
3,779
18,347
3,582
2,707
1
6,290
78
228
306
(394
)
(33
)
241
(186
)
3,266
2,902
242
6,410
(3,316
)
(2,841
)
(390
)
(6,547
)
12,481
2,098
3,631
18,210
2,570
11
860
3,441
$
15,051
$
2,109
$
4,491
$
21,651
$
5,903
$
3,959
56.2
71.8
55.3
73.3
(6.7
)
(0.8
)
[1]
[2]
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
$
(47
)
$
(77
)
$
$
(124
)
(127
)
(127
)
(112
)
(112
)
(92
)
(92
)
38
38
28
28
18
18
75
75
138
138
35
35
(20
)
(20
)
(40
)
24
24
(23
)
(23
)
(63
)
26
13
(24
)
$
(394
)
$
(33
)
$
241
$
(186
)
Table of Contents
Table of Contents
Total
Property &
Property and
Casualty
Consumer
Corporate and
Casualty
Commercial
Markets
Other
Insurance
$
15,020
2,065
5,068
22,153
2,917
67
938
3,922
12,103
1,998
4,130
18,231
3,835
2,552
3
6,390
285
258
543
(298
)
(52
)
124
(226
)
3,822
2,758
127
6,707
(3,394
)
(2,719
)
(478
)
(6,591
)
12,531
2,037
3,779
18,347
2,742
46
798
3,586
$
15,273
$
2,083
$
4,577
$
21,933
$
6,395
$
3,935
53.0
69.1
59.8
70.1
(4.7
)
(1.3
)
[1]
[2]
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
$
312
$
260
$
$
572
27
2
29
285
258
543
10
10
20
1
1
$
295
$
269
$
$
564
Table of Contents
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
$
(27
)
$
(46
)
$
$
(73
)
(156
)
(156
)
(105
)
(105
)
67
67
(75
)
(75
)
(24
)
(24
)
(10
)
(10
)
25
25
53
53
50
50
26
26
(27
)
(27
)
(16
)
18
21
23
$
(298
)
$
(52
)
$
124
$
(226
)
Table of Contents
Table of Contents
Asbestos
Environmental
All Other [1]
Total
$
1,892
$
307
$
1,432
$
3,631
189
67
(5
)
251
(294
)
(40
)
(125
)
(459
)
$
1,787
[4]
$
334
$
1,302
$
3,423
$
1,884
$
269
$
1,628
$
3,781
138
75
29
242
(181
)
(40
)
(171
)
(392
)
51
3
(54
)
$
1,892
$
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
[1]
[2]
[3]
[4]
Table of Contents
Asbestos [1]
Environmental [1]
Paid
Incurred
Paid
Incurred
Losses & LAE
Losses & LAE
Losses & LAE
Losses & LAE
$
201
$
209
$
35
$
50
128
12
5
42
(15
)
7
10
371
194
54
65
(77
)
(5
)
(14
)
2
$
294
$
189
$
40
$
67
$
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
[1]
[2]
Table of Contents
Total Reserves
$
273
47
58
378
(39
)
$
339
[1]
[2]
Table of Contents
Number of
All Time
Total
All Time
Accounts [2]
Paid [3]
Reserves
Ultimate [3]
7
$
312
$
428
$
740
29
908
44
952
29
476
132
608
5
77
832
585
1,417
1,122
409
133
542
1,766
446
2,212
4,703
1,768
6,471
1,199
469
1,668
605
308
913
6,507
2,545
9,052
242
(242
)
5
5
$
6,749
$
2,308
$
9,057
[1]
[2]
[3]
[4]
[5]
[6]
[7]
Table of Contents
Property & Casualty
Consumer
Corporate and
Total Property and
Commercial
Markets
Other
Casualty Insurance
(3.1) 1.5
(5.2) 5.1
2.9 67.5
(1.2) 21.5
[1]
[2]
Loss And Loss Adjustment Expense Liability Development Net of Reinsurance
For the Years Ended December 31, [1]
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$
12,316
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
$
18,210
$
17,948
3,272
3,339
3,480
4,415
3,594
3,702
3,727
3,703
3,771
3,882
5,315
5,621
6,781
6,779
6,035
6,122
5,980
5,980
6,273
6,972
8,324
8,591
8,686
7,825
7,755
7,544
7,752
9,195
9,710
10,061
10,075
9,045
8,889
8,833
10,227
10,871
11,181
11,063
9,928
9,903
11,140
11,832
12,015
11,821
10,798
11,961
12,563
12,672
12,601
12,616
13,166
13,385
13,167
13,829
13,779
12,459
13,153
15,965
16,632
16,439
17,159
17,652
18,005
18,161
18,014
12,776
16,176
16,501
17,232
16,838
17,347
17,475
17,858
18,004
15,760
16,768
17,338
17,739
17,240
17,318
17,441
17,700
16,584
17,425
17,876
18,367
17,344
17,497
17,439
17,048
17,927
18,630
18,554
17,570
17,613
17,512
18,686
18,838
18,836
17,777
18,216
18,892
19,126
19,063
18,410
19,192
19,373
18,649
19,452
18,922
$
6,606
$
6,592
$
6,232
$
2,845
$
1,586
$
750
$
(165
)
$
(531
)
$
(343
)
$
(196
)
[1]
Table of Contents
For the Years Ended December 31, [1]
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
$
18,210
$
17,948
4,176
3,950
5,497
5,138
5,403
4,387
3,922
3,586
3,441
3,077
$
17,036
$
17,091
$
21,715
$
21,329
$
22,266
$
21,991
$
22,153
$
21,933
$
21,651
$
21,025
$
19,452
$
19,373
$
19,063
$
17,777
$
17,613
$
17,439
$
17,700
$
18,004
$
18,014
5,908
5,511
5,423
5,311
5,646
4,069
3,785
3,459
2,959
$
25,360
$
24,884
$
24,486
$
23,088
$
23,259
$
21,508
$
21,485
$
21,463
$
20,973
$
8,324
$
7,793
$
2,771
$
1,759
$
993
$
(483
)
$
(668
)
$
(470
)
$
(678
)
[1]
Calendar Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total
$
143
$
317
$
2,984
$
824
$
464
$
464
$
704
$
194
$
239
$
273
$
6,606
(24
)
39
(232
)
193
38
55
12
61
(13
)
129
(199
)
(56
)
180
36
(5
)
2
(12
)
(13
)
(67
)
(122
)
(237
)
(31
)
(126
)
(21
)
(6
)
(20
)
(563
)
(352
)
(108
)
(226
)
(83
)
(56
)
(20
)
(845
)
(103
)
(214
)
(133
)
(47
)
(91
)
(588
)
(140
)
(148
)
(213
)
(118
)
(619
)
(49
)
(113
)
(156
)
(318
)
(39
)
1
(38
)
(39
)
(39
)
$
143
$
293
$
2,824
$
414
$
248
$
296
$
48
$
(226
)
$
(186
)
$
(196
)
$
3,658
Table of Contents
Table of Contents
U.S. Annuity
International Annuity
Retirement Plans
Life Insurance
2010
2009
2010
2009
2010
2009
2010
2009
$
3,251
$
3,114
$
1,617
$
1,693
$
820
$
701
$
2,667
$
2,490
$
329
$
324
$
41
$
28
$
23
$
23
$
45
$
42
$
99
$
96
$
43
$
70
$
$
$
1,383
$
1,182
$
1,052
$
1,232
$
696
$
584
$
1
$
1
$
113
$
76
Table of Contents
Death and Other
Segment
Insurance
After-tax (Charge) Benefit
DAC
URR
Benefit Reserves
SIA
Total
$
42
$
7
$
16
$
$
65
23
5
1
(1
)
28
18
18
$
83
$
12
$
17
$
(1
)
$
111
Death and Other
Segment
Insurance
After-tax (Charge) Benefit
DAC
URR
Benefit Reserves
SIA
Total [1]
$
(533
)
$
23
$
(368
)
$
(46
)
$
(924
)
(101
)
54
(4
)
(51
)
(55
)
(1
)
(56
)
(3
)
(3
)
$
(692
)
$
77
$
(372
)
$
(47
)
$
(1,034
)
[1]
Death and Other
Segment
Insurance Benefit
After-tax (Charge) Benefit
DAC
URR
Reserves
SIA
Total
$
(671
)
$
17
$
(165
)
$
(29
)
$
(848
)
(29
)
(12
)
(3
)
(44
)
(49
)
(49
)
9
9
$
(740
)
$
5
$
(168
)
$
(29
)
$
(932
)
Table of Contents
Table of Contents
Segment
Goodwill in
Goodwill
Corporate and Other
Total
$
30
$
$
30
138
138
119
119
224
118
342
87
69
156
159
92
251
15
15
$
619
$
432
$
1,051
Segment
Goodwill in
Goodwill
Corporate and Other
Total
$
30
$
$
30
138
138
119
119
224
118
342
87
69
156
159
92
251
168
168
$
619
$
585
$
1,204
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Property & Casualty Commercial
2010
2009
2008
89.7
85.9
89.4
2.7
0.9
4.0
(6.3
)
(6.3
)
(4.2
)
93.4
91.2
89.6
99.0
97.2
92.9
7.8
5.9
6.7
(2.4
)
(1.0
)
(1.5
)
93.6
92.3
87.7
Table of Contents
Ratios
2010
2009
2008
26.1
bps
(75.0
) bps
(132.9
) bps
(19.0
) bps
(53.3
) bps
(106.3
) bps
4.9
bps
(47.0
) bps
(49.1
) bps
40.2
bps
25.3
bps
22.5
bps
9.7
bps
(54.8
) bps
(47.9
) bps
(4.8
) bps
(46.4
) bps
(51.3
) bps
5.4
bps
(11.4
) bps
(14.6
) bps
9.1
bps
3.0
bps
18.0
bps
13.6
bps
8.8
bps
8.8
bps
4.3
bps
bps
(0.2
) bps
bps
bps
(0.3
) bps
9.3
bps
8.8
bps
9.3
bps
[1]
Table of Contents
2010
2009
2008
16.6
%
3.1
%
(1.8
%)
0.9
%
(6.0
%)
(13.0
%)
1.4
%
(4.3
%)
(2.6
%)
14.3
%
13.4
%
13.8
%
3.9
%
4.2
%
(0.1
%)
0.5
%
(1.5
%)
(7.3
%)
3.4
%
5.7
%
7.2
%
Table of Contents
December 31, 2010
December 31, 2009
Amount
Percent
Amount
Percent
$
77,820
79.2
%
$
71,153
76.3
%
649
0.7
%
973
1.0
%
1,221
1.3
%
4,489
4.6
%
5,938
6.4
%
2,181
2.2
%
2,174
2.3
%
1,918
2.0
%
1,790
1.9
%
1,617
1.6
%
602
0.7
%
8,528
8.7
%
10,357
11.1
%
98,175
100.0
%
93,235
100.0
%
32,820
32,321
$
130,995
$
125,556
[1]
[2]
For the years ended December 31,
2010
2009
2008
Amount
Yield [1]
Amount
Yield [1]
Amount
Yield [1]
$
3,490
4.3
%
$
3,618
4.5
%
$
4,310
5.2
%
53
4.8
%
93
6.5
%
167
6.9
%
283
5.7
%
316
5.0
%
333
5.6
%
132
6.1
%
139
6.3
%
139
6.5
%
216
12.6
%
(341
)
(15.6
%)
(445
)
(16.3
%)
333
318
(72
)
(115
)
(112
)
(97
)
$
4,392
4.5
%
$
4,031
4.1
%
$
4,335
4.6
%
(774
)
3,188
(10,340
)
$
3,618
$
7,219
$
(6,005
)
[1]
[2]
[3]
Table of Contents
For the years ended December 31,
2010
2009
2008
$
836
$
1,056
$
607
(522
)
(1,397
)
(856
)
(434
)
(1,508
)
(3,964
)
(157
)
(403
)
(26
)
27
47
64
(17
)
(49
)
(33
)
(650
)
111
1,526
(713
)
(562
)
(895
)
74
(451
)
631
(639
)
164
(387
)
(421
)
$
(554
)
$
(2,010
)
$
(5,918
)
[1]
[2]
Gross gains and losses on
sales for the year ended December
31, 2010 were predominantly from
sales of investment grade corporate
securities in order to take
advantage of attractive market
opportunities, as well as, sales of
U.S. Treasuries related to tactical
repositioning of the portfolio.
Gross gains and losses on
sales for the year ended December
31, 2009 were predominantly within
corporate, government and structured
securities. Also included were
gains of $360 related to the sale of
Verisk/ISO securities. Gross gains
and losses on sales primarily
resulted from efforts to reduce
portfolio risk through sales of
subordinated financials and real
estate related securities and from
sales of U.S. Treasuries to manage
liquidity.
Gross gains and losses on
sales for the year ended December
31, 2008 primarily resulted from the
decision to reallocate the portfolio
to securities with more favorable
risk/return profiles. Also included
was a gain of $141 from the sale of
a synthetic CDO.
For further information, see
Other-Than-Temporary Impairments
within the Investment Credit Risk
section of the MD&A.
loans
For further information, see
Valuation Allowances on Mortgage
Loans within the Investment Credit
Risk section of the MD&A.
Table of Contents
For the year ended December
31, 2010, the gain on GMWB
derivatives, net, was primarily due
to liability model assumption
updates of $159 and lower implied
market volatility of $118, and
outperformance of the underlying
actively managed funds as compared
to their respective indices of $104,
partially offset by losses due to a
general decrease in long-term rates
of $(158) and rising equity markets
of $(90). The net loss on the macro
hedge program was primarily the
result of a higher equity market
valuation and the impact of trading
activity.
For the year ended December
31, 2009, the gain on GMWB
derivatives, net, was primarily due
to liability model assumption
updates related to favorable
policyholder experience of $566, the
relative outperformance of the
underlying actively managed funds as
compared to their respective indices
of $550, and the impact of the
Companys own credit standing of
$154. Additional net gains of $56
resulted from lower implied market
volatility and a general increase in
long-term interest rates, partially
offset by rising equity markets.
Increasing equity markets resulted
in a loss of $895 related to the
Companys macro hedge program.
Total gains related to GMWB hedging
in 2009 were $1.5 billion. For
further information, see Note 4a of
the Notes to Consolidated Financial
Statements. In addition, see the
Companys variable annuity hedging
program sensitivity disclosures
within Capital Markets Risk
Management section of the MD&A.
For the year ended December
31, 2008, the loss on GMWB
derivatives, net, was primarily due
to losses of $904 related to
market-base hedge ineffectiveness
due to extremely volatile capital
markets and $355 related to the
relative outperformance of the
underlying actively managed funds as
compared to their respective
indices, partially offset by gains
of $470 in the fourth quarter
related to liability model
assumption updates for lapse rates.
Other, net gains for the
year ended December 31, 2010 was
primarily due to gains of $217 on
credit derivatives driven by credit
spreads tightening, gains of $102
related to Japan variable annuity
hedges due to the appreciation of
the Japanese yen, gains of $62
related to the sale of Hartford
Investments Canada Corporation
mutual fund business and gains of
$59 on interest rate derivatives
used to manage portfolio duration
driven by a decline in long-term
interest rates, partially offset by
losses of $(326) on transactional
foreign currency re-valuation due to
an increase in value of the Japanese
yen versus the U.S. dollar
associated with the internal
reinsurance of the Japan variable
annuity business, which is offset in
AOCI.
Other, net losses for the
year ended December 31, 2009
primarily resulted in net losses of
$463 on credit derivatives where the
Company purchased credit protection
due to credit spread tightening and
approximately $300 from contingent
obligations associated with the
Allianz transaction. These losses
were partially offset by gains of
$155 on credit derivatives that
assume credit risk due to credit
spread tightening, as well as $140
from a change in spot rates related
to transactional foreign currency
predominately on the internal
reinsurance of the Japan variable
annuity business, which is offset in
AOCI.
Other, net losses for the
year ended December 31, 2008 were
primarily due to net losses of $291
related to transactional foreign
currency losses predominately on the
internal reinsurance of the Japan
variable annuity business, which is
offset in AOCI, resulting from
appreciation of the yen, as well as
credit derivative losses of $312 due
to significant credit spread
widening. Also included were
derivative related losses of $46 due
to counterparty default related to
the bankruptcy of Lehman Brothers
Holdings Inc.
Table of Contents
Underwriting Summary
2010
2009
2008
$
5,796
$
5,715
$
6,291
52
(188
)
(104
)
5,744
5,903
6,395
3,579
3,582
3,835
152
78
285
(361
)
(394
)
(298
)
3,370
3,266
3,822
1,353
1,393
1,461
431
409
434
590
835
678
9
13
939
759
803
5
(213
)
(1,277
)
(127
)
(132
)
(119
)
1,407
1,258
98
412
359
(35
)
$
995
$
899
$
133
Premium Measures
2010
2009
2008
$
1,122
$
1,101
$
1,089
84
%
81
%
82
%
1
%
(1
%)
(4
%)
(2
%)
(3
%)
1,211,047
1,159,759
1,138,483
Ratios
2010
2009
2008
62.3
60.7
60.0
2.7
1.3
4.5
(6.3
)
(6.7
)
(4.7
)
58.7
55.3
59.8
31.0
30.4
28.9
0.1
0.2
0.7
89.7
85.9
89.4
2.7
1.3
4.5
(0.4
)
(0.4
)
2.7
0.9
4.0
87.1
84.9
85.4
93.4
91.2
89.6
$
308
$
334
$
363
[1]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2010
2009
2008
$
4,278
$
4,350
$
4,391
429
403
419
46
(124
)
(540
)
4,753
4,629
4,270
3,331
3,196
3,144
61
61
57
1,111
1,120
1,128
4,503
4,377
4,329
250
252
(59
)
65
59
(53
)
$
185
$
193
$
(6
)
Premiums and other considerations
2010
2009
2008
$
4,166
$
4,309
$
4,355
58
1
54
41
35
$
4,278
$
4,350
$
4,391
$
583
$
741
$
820
77.6
%
73.5
%
71.6
%
82.8
%
77.8
%
76.3
%
27.8
%
27.1
%
27.0
%
23.3
%
22.6
%
22.4
%
Table of Contents
Operating Summary
2010
2009
2008
$
3,886
$
3,995
$
3,933
(61
)
36
(2
)
3,947
3,959
3,935
2,737
2,707
2,552
300
228
258
(86
)
(33
)
(52
)
2,951
2,902
2,758
667
674
633
290
273
266
39
110
278
35
29
26
187
178
207
(52
)
(319
)
(66
)
(77
)
(63
)
195
188
129
52
48
27
$
143
$
140
$
102
2010
2009
2008
$
2,745
$
2,877
$
2,837
1,141
1,118
1,096
$
3,886
$
3,995
$
3,933
$
2,806
$
2,857
$
2,833
1,141
1,102
1,102
$
3,947
$
3,959
$
3,935
Premium Measures
2010
2009
2008
2,226,351
2,395,421
2,323,882
1,426,107
1,488,408
1,455,954
3,652,458
3,883,829
3,779,836
$
311
$
455
$
364
$
106
$
149
$
106
83
%
86
%
86
%
85
%
86
%
87
%
6
%
3
%
4
%
10
%
5
%
6
%
5
%
4
%
4
%
7
%
6
%
5
%
Table of Contents
Ratios and Supplemental Data
2010
2009
2008
69.4
68.4
64.8
7.6
5.8
6.5
(2.2
)
(0.8
)
(1.3
)
74.8
73.3
70.1
24.2
23.9
22.8
99.0
97.2
92.9
7.6
5.8
6.5
0.3
0.1
0.2
7.8
5.9
6.7
91.2
91.3
86.2
93.6
92.3
87.7
$
172
$
154
$
135
[1]
Product Combined Ratios
2010
2009
2008
97.1
96.9
91.1
104.0
98.2
97.6
99.0
97.2
92.9
Table of Contents
Table of Contents
Operating Summary
2010
2009
2008
$
2,376
$
2,335
$
2,856
226
338
876
1,691
1,706
1,935
(774
)
3,188
(10,340
)
917
4,894
(8,405
)
(762
)
(706
)
(3,115
)
2,757
6,861
(7,788
)
1,997
3,089
3,120
(774
)
3,188
(10,340
)
253
1,716
1,762
768
860
960
422
2,244
8,853
(4,076
)
513
(1,992
)
(3,712
)
109
(826
)
(1,425
)
$
404
$
(1,166
)
$
(2,287
)
Assets Under Management
2010
2009
2008
$
116,520
$
119,387
$
105,921
16,819
16,475
16,047
19,674
22,373
24,081
4,262
2,578
$
153,013
$
162,497
$
148,627
Account Value Roll Forward
2010
2009
2008
$
119,387
$
105,921
$
156,084
(11,980
)
(7,506
)
(6,750
)
6,432
19,943
(49,447
)
(1,355
)
1,188
4,036
(159
)
6,034
$
116,520
$
119,387
$
105,921
18
bps
(7
) bps
46
bps
22.4
29.7
32.5
33.0
%
(624.4
%)
(90.3
%)
48.3
%
66.0
%
73.6
%
[1]
[2]
[3]
[4]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2010
2009
2008
$
1,125
$
1,141
$
1,017
(96
)
(87
)
(71
)
522
347
343
23
(149
)
(257
)
1,574
1,252
1,032
849
715
692
223
208
228
121
317
171
1,193
1,240
1,091
381
12
(59
)
119
(27
)
(40
)
$
262
$
39
$
(19
)
Account Values
2010
2009
2008
$
6,115
$
5,766
$
4,802
6,128
5,693
5,380
36,042
33,356
32,459
$
48,285
$
44,815
$
42,641
Individual Life Insurance In-force
2010
2009
2008
$
74,044
$
78,671
$
78,853
58,789
56,030
52,980
75,797
69,968
63,631
$
208,630
$
204,669
$
195,464
145
bps
81
bps
90
bps
$
461
$
407
$
416
[1]
Table of Contents
Table of Contents
Operating Summary
2010
2009
2008
$
352
$
321
$
334
7
3
4
364
315
342
(18
)
(333
)
(272
)
705
306
408
278
269
271
340
346
335
27
56
91
645
671
697
60
(365
)
(289
)
13
(143
)
(132
)
$
47
$
(222
)
$
(157
)
Assets Under Management
2010
2009
2008
$
20,291
$
16,142
$
11,956
12,649
11,116
10,242
19,578
16,704
14,838
$
52,518
$
43,962
$
37,036
$
4,448
$
5,588
$
5,122
Assets Under Management Roll Forward
2010
2009
2008
$
43,962
$
37,036
$
28,548
1,545
(1,142
)
1,972
18,725
1,488
5,523
8,068
(12,209
)
$
52,518
$
43,962
$
37,036
110
bps
66
bps
92
bps
[1]
[2]
Table of Contents
Table of Contents
Operating Summary
2010
2009
2008
$
690
$
518
$
666
(8
)
(21
)
(22
)
69
(1
)
751
497
643
480
395
491
62
50
96
542
445
587
209
52
56
77
18
19
$
132
$
34
$
37
Assets Under Management
2010
2009
2008
$
48,753
$
42,829
$
31,032
6,659
1,472
1,202
1,678
56,884
44,031
32,710
43,602
$
100,486
$
44,031
$
32,710
Non-Proprietary and Canadian Mutual Fund AUM Roll Forward
2010
2009
2008
$
44,031
$
32,710
$
50,496
5,617
(826
)
2,750
2,115
3,171
4,486
10,032
(20,957
)
$
56,884
$
44,031
$
32,710
Proprietary Mutual Fund AUM Roll Forward
2010
2009
2008
$
$
$
43,890
(5,334
)
5,046
$
43,602
$
$
[1]
[2]
[3]
Table of Contents
Operating Summary
2010
2009
2008
$
3
$
(1
)
$
8
187
220
227
268
344
308
83
(433
)
(137
)
4
6
541
134
412
249
394
281
382
365
220
508
476
343
153
32
323
1,292
1,267
1,167
(751
)
(1,133
)
(755
)
(263
)
(329
)
(203
)
$
(488
)
$
(804
)
$
(552
)
[1]
Table of Contents
Table of Contents
% of layer(s)
Coverage
Treaty term
reinsured
Per occurrence limit
Retention
1/1/2011 to 1/1/2012
90
%
$
750
$
350
6/1/2010 to 6/1/2011
90
%
175[
1]
64
7/1/2010 to 7/1/2011
95
%
300
50
[1]
[2]
Table of Contents
Bond amount issued
Covered perils
Treaty term
Covered losses
by Foundation Re III
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 losses to The Hartford
$
180
2/18/2011 to 2/18/2015
67.5% of $200 in losses in excess of an index loss trigger equating to approximately $1.4 billion in losses to The Hartford
135
Reinsurance Recoverable
December 31, 2010
December 31, 2009
$
198
$
208
2,963
3,321
3,161
3,529
(290
)
(335
)
$
2,871
$
3,194
Table of Contents
Distribution of gross reinsurance recoverable
December 31, 2010
December 31, 2009
$
3,161
$
3,529
(614
)
(642
)
$
2,547
$
2,887
% of Total
% of Total
$
1,869
73.3
%
$
2,091
72.4
%
43
1.7
%
48
1.7
%
1,912
75.0
%
2,139
74.1
%
107
4.2
%
152
5.3
%
226
8.9
%
209
7.2
%
302
11.9
%
387
13.4
%
$
2,547
100
%
$
2,887
100.0
%
[1]
Table of Contents
Table of Contents
December 31, 2010
December 31, 2009
Percent of
Percent of
Amortized
Total Fair
Amortized
Total Fair
Cost
Fair Value
Value
Cost
Fair Value
Value
$
9,961
$
9,918
12.7
%
$
7,299
$
7,172
10.1
%
10,080
10,174
13.1
%
11,974
11,188
15.7
%
15,933
15,554
20.0
%
14,845
13,932
19.6
%
19,265
19,460
25.0
%
19,822
18,664
26.2
%
18,849
19,153
24.6
%
17,886
17,071
24.0
%
4,331
3,561
4.6
%
4,189
3,126
4.4
%
$
78,419
77,820
100.0
%
$
76,015
71,153
100.0
%
Table of Contents
December 31, 2010
December 31, 2009
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
$
2,496
$
23
$
(221
)
$
2,298
2.9
%
$
2,087
$
15
$
(277
)
$
1,825
2.6
%
453
(141
)
312
0.4
%
548
1
(232
)
317
0.4
%
298
15
(34
)
279
0.4
%
405
20
(44
)
381
0.5
%
2,429
1
(212
)
2,218
2.9
%
2,727
(288
)
2,439
3.5
%
653
(266
)
387
0.5
%
1,319
21
(901
)
439
0.6
%
6
6
8
6
14
519
9
(4
)
524
0.7
%
62
3
65
0.1
%
6,985
147
(583
)
6,549
8.4
%
9,600
52
(2,241
)
7,411
10.4
%
793
79
(28
)
844
1.1
%
1,074
59
(65
)
1,068
1.5
%
2,993
190
(24
)
3,159
4.1
%
2,642
112
(56
)
2,698
3.8
%
3,179
223
(23
)
3,379
4.3
%
3,085
140
(51
)
3,174
4.5
%
1,883
115
(12
)
1,986
2.6
%
1,946
75
(45
)
1,976
2.8
%
6,126
444
(29
)
6,541
8.4
%
4,737
281
(22
)
4,996
7.0
%
3,377
212
(23
)
3,566
4.6
%
3,070
163
(18
)
3,215
4.5
%
7,545
253
(470
)
7,328
9.4
%
8,059
118
(917
)
7,260
10.1
%
4,268
269
(68
)
4,469
5.7
%
3,984
205
(75
)
4,114
5.8
%
1,141
69
(13
)
1,197
1.5
%
698
22
(23
)
697
1.0
%
7,099
386
(58
)
7,427
9.5
%
5,755
230
(85
)
5,900
8.3
%
885
13
(27
)
832
1.1
%
1,342
22
(151
)
1,213
1.7
%
1,627
73
(17
)
1,683
2.2
%
1,376
52
(20
)
1,408
2.0
%
1,319
9
(129
)
1,199
1.5
%
1,176
4
(205
)
975
1.4
%
11,150
141
(366
)
10,925
14.0
%
10,949
314
(173
)
11,090
15.6
%
4,283
109
(27
)
4,365
5.6
%
3,383
99
(6
)
3,476
4.9
%
78
(3
)
75
0.1
%
143
(16
)
127
0.2
%
168
(19
)
149
0.2
%
218
(58
)
160
0.2
%
1,507
(413
)
1,094
1.4
%
1,768
5
(689
)
1,084
1.5
%
5,159
24
(154
)
5,029
6.5
%
3,854
14
(237
)
3,631
5.1
%
78,419
2,804
(3,364
)
77,820
100.0
%
76,015
2,033
(6,895
)
71,153
100.0
%
569
4
(127
)
446
836
7
(164
)
679
444
88
(5
)
527
497
73
(28
)
542
1,013
92
(132
)
973
1,333
80
(192
)
1,221
$
79,432
$
2,896
$
(3,496
)
$
78,793
$
77,348
$
2,113
$
(7,087
)
$
72,374
$
649
$
[1]
[2]
Table of Contents
December 31, 2010
December 31, 2009
Amortized
Net
Amortized
Net
Cost
Fair Value
Unrealized
Cost
Fair Value
Unrealized
$
302
$
309
$
7
$
299
$
290
$
(9
)
2,085
2,095
10
1,913
1,867
(46
)
3,760
3,599
(161
)
4,510
3,987
(523
)
1,677
1,518
(159
)
1,664
1,379
(285
)
290
253
(37
)
509
416
(93
)
$
8,114
$
7,774
$
(340
)
$
8,895
$
7,939
$
(956
)
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
$
782
$
803
$
146
$
142
$
107
$
103
$
24
$
21
$
26
$
22
$
1,085
$
1,091
489
511
35
35
68
61
33
27
6
5
631
639
610
632
131
121
213
177
182
147
123
96
1,259
1,173
1,016
1,050
566
536
256
224
496
416
436
339
2,770
2,565
305
320
278
250
71
55
253
200
278
198
1,185
1,023
55
58
55
58
$
3,257
$
3,374
$
1,156
$
1,084
$
715
$
620
$
988
$
811
$
869
$
660
$
6,985
$
6,549
28.8%
22.5%
13.3%
13.8%
8.0%
21.5%
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%
[1]
Table of Contents
December 31, 2010
December 31, 2009
Amortized
Valuation
Carrying
Amortized
Valuation
Carrying
Cost [1]
Allowance
Value
Cost [1]
Allowance
Value
$
339
$
(23
)
$
316
$
604
$
(8
)
$
596
3,326
(23
)
3,303
3,319
(40
)
3,279
319
319
391
391
327
(70
)
257
701
(176
)
525
181
(36
)
145
1,081
(142
)
939
$
4,492
$
(152
)
$
4,340
$
6,096
$
(366
)
$
5,730
[1]
[2]
December 31, 2010
December 31, 2009
Amount
Percent
Amount
Percent
$
439
22.8
%
$
596
33.3
%
406
21.2
%
302
16.9
%
132
6.9
%
133
7.4
%
941
49.1
%
759
42.4
%
$
1,918
100.0
%
$
1,790
100.0
%
Table of Contents
December 31, 2010
December 31, 2009
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Items
Cost
Value
Loss [1]
Items
Cost
Value
Loss
1,503
$
17,431
$
16,783
$
(643
)
1,237
$
11,197
$
10,838
$
(359
)
115
732
690
(42
)
105
317
289
(28
)
91
438
397
(41
)
311
2,940
2,429
(511
)
42
185
169
(16
)
134
2,054
1,674
(380
)
1,231
15,599
12,811
(2,754
)
2,020
22,445
16,636
(5,809
)
2,982
$
34,385
$
30,850
$
(3,496
)
3,807
$
38,953
$
31,866
$
(7,087
)
[1]
Table of Contents
December 31, 2010
December 31, 2009
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
99
$
771
$
582
$
(189
)
161
$
951
$
672
$
(279
)
22
136
104
(32
)
51
55
38
(17
)
28
234
169
(65
)
159
2,046
1,397
(649
)
13
43
32
(11
)
86
1,398
913
(485
)
390
4,361
2,766
(1,595
)
715
8,146
4,228
(3,918
)
552
$
5,545
$
3,653
$
(1,892
)
1,172
$
12,596
$
7,248
$
(5,348
)
December 31, 2010
December 31, 2009
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
20
$
27
$
12
$
(15
)
62
$
169
$
61
$
(108
)
1
2
1
(1
)
28
5
2
(3
)
12
65
29
(36
)
54
190
74
(116
)
58
592
210
(382
)
94
722
260
(462
)
220
2,553
735
(1,818
)
127
$
816
$
302
$
(514
)
422
$
3,509
$
1,082
$
(2,427
)
For the years ended December 31,
2010
2009
2008
$
13
$
54
$
27
164
483
398
28
157
257
141
3
25
61
33
198
1,852
14
145
1,161
31
1
18
21
2
4
13
10
62
24
37
232
235
2
$
434
$
1,508
$
3,964
Table of Contents
For the years ended December 31,
2010
2009
2008
$
70
$
310
$
26
10
4
22
51
52
43
3
$
157
$
408
$
26
Table of Contents
Table of Contents
Table of Contents
Change in Net Economic Value As of December 31,
2010
2009
Basis point shift
- 100
+ 100
- 100
+ 100
$
(190
)
$
96
$
(30
)
$
(9
)
Change in Fair Value As of December 31,
2010
2009
Basis point shift
- 100
+ 100
- 100
+ 100
$
2,988
$
(2,774
)
$
2,326
$
(2,230
)
Table of Contents
Table of Contents
GMIB [1]
($ in billions)
Account Value
Net Amount at Risk
$
0.3
$
4.7
0.7
7.6
1.4
2.6
0.6
2.9
0.7
7.3
2.0
$
25.4
$
5.4
[1]
[2]
Table of Contents
Variable Annuity Guarantee [1]
U.S. GAAP Treatment [1]
Primary Market Risk Exposures [1]
Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
Equity Market Levels
Fair Value
Equity Market Levels / Implied
Volatility / Interest Rates
Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
Equity Market Levels
Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
Equity Market Levels / Interest
Rates / Foreign Currency
Fair Value
Equity Market Levels / Implied
Volatility / Interest Rates /Foreign
Currency
Fair Value
Equity Market Levels / Implied
Volatility / Interest Rates /Foreign
Currency
[1]
Variable Annuity Guarantee
Reinsurance
Customized Derivative
Dynamic Hedging [1]
Macro Hedging [2]
ü
ü
ü
ü
ü
ü
ü
ü
ü
[1]
[2]
Table of Contents
Table of Contents
Pre-Tax/DAC Gain (Loss)
Net Impact
Net Impact
GMWB
GMWB
Liability and
Liability and
Dynamic
Macro
Dynamic
Macro
Hedge
Hedge
Total Net
Hedge
Hedge
Total Net
Program
Program [5]
Impact
Program
Program [5]
Impact
Expected for fourth quarter based on
Expected for first quarter based on
Capital Market Factor
September 30, 2010
December 31, 2010
$
(0) / 0
$
(34) / 34
$
(34) / 34
$
(0) / 0
$
(26) / 26
$
(26) / 26
$
(41) / 41
$
16 / (16
)
$
(25) / 25
$
(26) / 26
$
15 / (15
)
$
(11) / 11
$
2 / (2
)
$
(1) / 1
$
1 / (1
)
$
2 / (2
)
$
(2) / 2
$
0 / 0
$
$
44 / (44
)
$
44 / (44
)
$
$
57 / (57
)
$
57 / (57
)
[1]
[2]
[3]
[4]
[5]
Table of Contents
Table of Contents
Table of Contents
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
2010
2009
2010
2009
11/10/86
N/A
$
2,000
$
2,000
$
$
8/9/07
8/9/12
1,900
1,900
$
3,900
$
3,900
$
$
As of December 31, 2010
Ratings levels
Notional Amount
Fair Value
$
16,117
$
307
[1]
Table of Contents
$
25,124
1,117
250
(174
)
$
26,317
[1]
$
53,068
5,631
1,809
(1,725
)
(702
)
$
58,081
[1]
Table of Contents
As of
December 31,
Contractholder Obligations
2010
$
256,040
(159,742
)
(32,793
)
$
63,505
$
29,303
10,467
2,723
912
20,100
$
63,505
[1]
[2]
[3]
[4]
[5]
As of
December 31,
Liquidity available to The Hartford
2010
$
8,528
5,029
2,062
(1,899
)
(702
)
$
13,018
Table of Contents
Payments due by period
Less than
1-3
3-5
More than
Total
1 year
years
years
5 years
$
21,549
$
5,732
$
4,471
$
2,857
$
8,489
386,382
26,697
56,139
51,192
252,354
307
114
118
42
33
19,799
901
1,280
1,610
16,008
419
79
250
50
40
2,338
1,972
209
114
43
1,848
1,357
345
146
$
432,642
$
36,852
$
62,812
$
56,011
$
276,967
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
Table of Contents
December 31,
December 31,
2010
2009
Change
$
400
$
343
17
%
6,207
5,496
13
%
6,607
5,839
13
%
21,312
21,177
1
%
(1,001
)
(3,312
)
70
%
$
20,311
$
17,865
14
%
$
26,918
$
23,704
14
%
33
%
33
%
25
%
25
%
[1]
2010
2009
2008
$
3,309
$
2,974
$
4,192
$
(434
)
$
(3,123
)
$
(8,827
)
$
(2,955
)
$
523
$
4,274
$
2,062
$
2,142
$
1,811
Table of Contents
Insurance Financial Strength Ratings:
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
2010
2009
$
7,731
$
7,324
7,721
7,364
$
15,452
$
14,688
Table of Contents
Table of Contents
Table of Contents
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
February 25, 2011
Table of Contents
Table of Contents
(Executive Vice President, Digital Commerce & Customer Analytics)
(Senior Vice President and Controller)
(Executive Vice President, Strategic Initiatives and Enterprise Technology)
Table of Contents
(Executive Vice President and General Counsel)
(Executive Vice President; President Wealth Management)
(Executive Vice President and Chief Investment Officer)
(Executive Vice President; President Consumer Markets)
(Executive Vice President; Acting Head of Commercial Markets)
Table of Contents
(Executive Vice President and Chief Financial Officer)
(Executive Vice President, Marketing and Communications)
(Executive Vice President, Human Resources)
(Executive Vice President and Chief Risk 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))
5,266,634
$
52.91
24,624,318
[1]
12,821
50.23
256,676
5,279,455
$
52.90
24,880,994
[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-8
-
96
S-1
S-2
-
3
S-4
-
5
S-6
S-7
S-7
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
Hartford, Connecticut
February 25, 2011
Table of Contents
For the years ended December 31,
(In millions, except for per share data)
2010
2009
2008
$
14,055
$
14,424
$
15,503
4,784
4,576
5,135
4,392
4,031
4,335
(774
)
3,188
(10,340
)
3,618
7,219
(6,005
)
(852
)
(2,191
)
(3,964
)
418
683
(434
)
(1,508
)
(3,964
)
(120
)
(502
)
(1,954
)
(554
)
(2,010
)
(5,918
)
480
492
504
22,383
24,701
9,219
13,025
13,831
14,088
(774
)
3,188
(10,340
)
2,544
4,267
4,271
4,663
4,635
4,703
508
476
343
153
32
745
20,119
26,429
13,810
2,264
(1,728
)
(4,591
)
584
(841
)
(1,842
)
$
1,680
$
(887
)
$
(2,749
)
515
127
8
$
1,165
$
(1,014
)
$
(2,757
)
$
2.70
$
(2.93
)
$
(8.99
)
$
2.49
$
(2.93
)
$
(8.99
)
$
0.20
$
0.20
$
1.91
Table of Contents
As of December 31,
(In millions, except for share data)
2010
2009
$
77,820
$
71,153
649
32,820
32,321
973
1,221
4,489
5,938
2,181
2,174
1,918
1,790
1,617
602
8,528
10,357
130,995
125,556
2,062
2,142
3,273
3,404
4,862
5,384
9,857
10,686
3,725
3,940
1,051
1,204
1,150
1,026
1,629
3,981
159,742
150,394
$
318,346
$
307,717
$
39,598
$
39,631
44,550
45,852
32,793
32,296
5,176
5,221
400
343
6,207
5,496
382
1,136
9,187
9,454
159,742
150,394
298,035
289,823
556
2,960
5
4
10,448
8,985
12,077
11,164
(1,774
)
(1,936
)
(1,001
)
(3,312
)
20,311
17,865
29
20,311
17,894
$
318,346
$
307,717
Table of Contents
For the years ended December 31,
(In millions, except for share data)
2010
2009
2008
$
2,960
$
$
556
40
440
(3,400
)
2,920
556
2,960
5
4
3
8,985
7,569
6,627
480
887
727
240
1,599
(130
)
(126
)
(36
)
186
(6
)
(11
)
11
10,448
8,985
7,569
11,164
11,336
14,686
26
(3
)
11,190
11,336
14,683
1,680
(887
)
(2,749
)
(194
)
912
(40
)
(440
)
(75
)
(87
)
(8
)
(84
)
(70
)
(590
)
12,077
11,164
11,336
(1,936
)
(2,120
)
(1,254
)
(1,000
)
165
187
152
(3
)
(3
)
(18
)
(1,774
)
(1,936
)
(2,120
)
(3,312
)
(7,520
)
(858
)
194
(912
)
2,117
5,120
(6,662
)
(1,001
)
(3,312
)
(7,520
)
20,311
17,865
9,268
29
92
92
(56
)
57
(7
)
(57
)
(29
)
29
92
$
20,311
$
17,894
$
9,360
3,400
6,048
6,048
(6,048
)
3,400
575
(3,400
)
575
3,400
6,048
383,007
300,579
313,842
(27
)
(14,682
)
24,194
56,109
59,590
2,095
2,356
1,673
(143
)
(204
)
(254
)
444,549
383,007
300,579
Table of Contents
For the years ended December 31,
(In millions)
2010
2009
2008
$
1,680
$
(887
)
$
(2,749
)
1,707
5,909
(7,127
)
116
(224
)
128
(387
)
784
289
(23
)
196
(123
)
(155
)
(515
)
2,117
5,120
(6,662
)
$
3,797
$
4,233
$
(9,411
)
Table of Contents
For the years ended December 31,
(In millions)
2010
2009
2008
$
1,680
$
(887
)
$
(2,749
)
2,544
4,267
4,271
(2,648
)
(2,853
)
(3,675
)
(93
)
558
1,026
353
236
300
437
380
(4
)
(612
)
(1,271
)
(103
)
561
(246
)
(2,156
)
554
2,010
5,918
497
1,498
(2,276
)
(499
)
(1,501
)
2,295
596
470
361
153
32
745
(214
)
281
239
3,309
2,974
4,192
49,155
53,538
26,097
20
325
949
616
1,723
629
386
367
391
438
(50,807
)
(54,346
)
(32,708
)
(75
)
(163
)
(307
)
(714
)
(291
)
(233
)
(1,469
)
(348
)
(274
)
(678
)
241
(7
)
(94
)
(338
)
(561
)
909
(7
)
34
(147
)
(46
)
(2,925
)
(1,405
)
(190
)
(11
)
(58
)
(434
)
(3,123
)
(8,827
)
12,602
14,239
21,015
(22,476
)
(24,341
)
(25,793
)
8,409
7,203
7,353
1,090
2,670
(343
)
(24
)
(992
)
(375
)
(754
)
(74
)
401
556
1,600
(3,400
)
1,239
3,400
887
25
17
41
(1,000
)
(85
)
(73
)
(85
)
(149
)
(660
)
(94
)
(187
)
(2,955
)
523
4,274
(43
)
161
(80
)
331
(200
)
2,142
1,811
2,011
$
2,062
$
2,142
$
1,811
$
308
$
(243
)
$
253
$
485
$
475
$
286
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
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)
2010
2009
2008
$
1,680
$
(887
)
$
(2,749
)
515
127
8
$
1,165
$
(1,014
)
$
(2,757
)
431.5
346.3
306.7
32.3
1.3
16.4
481.5
346.3
306.7
$
2.70
$
(2.93
)
$
(8.99
)
$
2.49
$
(2.93
)
$
(8.99
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Net Income (Loss)
2010
2009
2008
$
995
$
899
$
133
185
193
(6
)
143
140
102
404
(1,166
)
(2,287
)
262
39
(19
)
47
(222
)
(157
)
132
34
37
(488
)
(804
)
(552
)
$
1,680
$
(887
)
$
(2,749
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Revenues
2010
2009
2008
$
2,387
$
2,275
$
2,376
547
597
697
598
646
726
1,124
1,123
1,167
540
619
747
224
250
272
324
393
410
5,744
5,903
6,395
2,004
1,975
2,020
2,052
2,126
2,084
222
249
287
4,278
4,350
4,391
2,806
2,857
2,833
1,141
1,102
1,102
3,947
3,959
3,935
2,506
2,231
2,819
74
61
(10
)
22
381
923
2,602
2,673
3,732
416
503
374
391
390
405
49
47
49
173
114
118
1,029
1,054
946
318
286
290
41
38
48
359
324
338
629
518
666
61
690
518
666
190
219
235
18,839
19,000
20,638
4,392
4,031
4,335
(774
)
3,188
(10,340
)
3,618
7,219
(6,005
)
(554
)
(2,010
)
(5,918
)
480
492
504
$
22,383
$
24,701
$
9,219
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Geographical Revenue Information
For the years ended December 31,
Revenues
2010
2009
2008
$
22,376
$
20,429
$
18,904
(329
)
3,816
(9,745
)
336
456
60
$
22,383
$
24,701
$
9,219
Amortization of deferred policy acquisition costs and
For the years ended December 31,
present value of future profits
2010
2009
2008
$
1,353
$
1,393
$
1,461
61
61
57
667
674
633
253
1,716
1,762
121
317
171
27
56
91
62
50
96
$
2,544
$
4,267
$
4,271
For the years ended December 31,
Income tax expense (benefit)
2010
2009
2008
$
412
$
359
$
(35
)
65
59
(53
)
52
48
27
109
(826
)
(1,425
)
119
(27
)
(40
)
13
(143
)
(132
)
77
18
19
(263
)
(329
)
(203
)
$
584
$
(841
)
$
(1,842
)
As of December 31,
Assets
2010
2009
$
23,736
$
24,225
9,028
8,904
6,778
6,737
166,684
164,837
64,063
54,939
34,152
28,180
301
159
13,604
19,736
$
318,346
$
307,717
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, 2010
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
$
2,889
$
$
2,412
$
477
2,611
30
2,581
7,917
7,228
689
39,884
37,755
2,129
1,683
1,627
56
12,124
11,852
272
5,683
4,398
1,285
5,029
434
4,595
77,820
434
69,897
7,489
649
127
522
32,820
2,279
30,541
973
298
521
154
3
(18
)
21
2
2
868
868
(106
)
(70
)
(36
)
32
32
799
780
19
8,528
541
7,987
153,727
116,717
35,763
1,247
$
275,316
$
120,269
$
145,616
$
9,431
100
%
44
%
53
%
3
%
$
$
$
$
(9
)
(9
)
(9
)
(9
)
(482
)
(71
)
(411
)
2
2
(34
)
(34
)
(266
)
(249
)
(17
)
(780
)
(354
)
(426
)
(37
)
(37
)
(5
)
(5
)
$
(831
)
$
$
(354
)
$
(477
)
[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)
$
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
100
%
47
%
48
%
5
%
$
(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)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Level 2
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Level 3
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
included in
Total
net income
realized/unrealized
related to
Fair value
gains (losses)
Purchases,
Fair value
financial instruments
as of
included in:
issuances,
Transfers
Transfers
as of
still held at
January 1,
Net
and
in to
out of
December 31,
December 31,
Asset (Liability)
2010
income [1]
OCI [2]
settlements
Level 3 [3]
Level 3 [3]
2010
2010 [1]
$
580
$
(17
)
$
92
$
(74
)
$
40
$
(144
)
$
477
$
(8
)
2,835
(151
)
533
(234
)
42
(444
)
2,581
(158
)
307
(132
)
409
(186
)
443
(152
)
689
(73
)
8,027
(14
)
320
78
967
(7,249
)
2,129
(24
)
93
5
(8
)
8
(42
)
56
262
1
24
14
11
(40
)
272
1,153
(43
)
254
(161
)
146
(64
)
1,285
(38
)
13,257
(356
)
1,637
(571
)
1,657
(8,135
)
7,489
(301
)
80
(11
)
453
522
76
58
(6
)
9
16
98
(21
)
154
(8
)
(228
)
124
4
(290
)
(390
)
116
(2
)
6
4
6
5
(4
)
1
(44
)
(11
)
(53
)
(24
)
36
(4
)
32
(4
)
(189
)
122
1
(40
)
(290
)
(11
)
(407
)
94
962
142
314
14
(185
)
1,247
20
$
(2
)
$
2
$
$
$
$
$
$
2
(10
)
1
(9
)
(12
)
2
1
(9
)
2
(26
)
(11
)
(37
)
(5
)
(5
)
[1]
[2]
[3]
[4]
[5]
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
Purchases,
included in net income
as of
Total realized/unrealized
issuances,
Transfers in
Fair value
related to financial
January 1,
gains (losses) included in:
and
and/or (out)
as of
instruments still held at
Asset (Liability)
2008
Net income [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]
[5]
[6]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended
December 31, 2010
$
(5
)
(7
)
83
(1
)
(26
)
$
44
As of December 31, 2010
$
65
270
250
64
649
37
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
December 31, 2009
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
$
2,181
$
2,294
$
2,174
$
2,321
4,489
4,524
5,938
5,091
$
11,155
$
11,383
$
12,330
$
12,513
4,880
5,072
4,054
4,037
1,727
2,596
1,717
2,338
377
392
1,131
1,194
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
339
(122
)
461
386
2
176
208
280
280
$
1,005
$
2
$
54
$
949
$
(1,611
)
$
$
$
(1,611
)
(36
)
(36
)
3
3
128
(11
)
139
(2
)
(2
)
$
(1,518
)
$
(2
)
$
(11
)
$
(1,505
)
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
)
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)
included in
net income
related to
Fair value
Total realized/unrealized
Purchases,
Fair value
financial instruments
as of
gains (losses) included in:
issuances,
Transfers
Transfers
as of
still held at
January 1,
Net income
and
in to
out of
December 31,
December 31,
Asset (Liability)
2010
[1] [2] [6]
OCI [2]
settlements [3]
Level 3
Level 3
2010
2010 [1] [2]
$
(184
)
$
(221
)
$
$
272
$
$
$
(133
)
[4
]
236
(74
)
442
(4
)
600
$
(61
)
52
(295
)
714
(4
)
467
[4
]
347
(102
)
35
280
(102
)
(1,957
)
486
(140
)
(1,611
)
486
(45
)
22
(4
)
(9
)
(36
)
22
(1,603
)
111
(4
)
600
(4
)
(900
)
[4
]
28
(221
)
369
176
[4
]
290
(341
)
259
208
(321
)
318
(562
)
628
384
[4
]
2
4
(3
)
3
4
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Purchases,
included in net income
as of
Total realized/unrealized
issuances,
Transfers in
Fair value
related to financial
January 1,
gains (losses) included in:
and
and/or (out)
as of
instruments still held at
2009
Net income
[1]
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
)
[4
]
(311
)
339
28
[4
]
137
(584
)
737
290
(535
)
137
(895
)
1,076
318
5
(3
)
2
5
[1]
[2]
[3]
[4]
[5]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Changes in unrealized
gains (losses)
Fair value
Purchases,
included in net income
as of
Total realized/unrealized
issuances,
Transfers in
Fair value
related to financial
January 1,
gains (losses) included in:
and
and/or (out)
as of
instruments still held at
2008
Net income
[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
)
[4
]
(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)
December 31,
2010
2009[1]
$
(418
)
$
(683
)
647
244
(113
)
215
$
116
$
(224
)
[1]
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)
2010
2009
2008
$
3,490
$
3,618
$
4,310
53
93
167
283
316
333
132
139
139
216
(341
)
(445
)
333
318
(72
)
(115
)
(112
)
(97
)
4,392
4,031
4,335
(774
)
3,188
(10,340
)
$
3,618
$
7,219
$
(6,005
)
For the years ended December 31,
(Before-tax)
2010
2009
2008
$
836
$
1,056
$
607
(522
)
(1,397
)
(856
)
(434
)
(1,508
)
(3,964
)
(157
)
(403
)
(26
)
27
47
64
(17
)
(49
)
(33
)
(650
)
111
1,526
(713
)
(562
)
(895
)
74
(451
)
631
(639
)
164
(387
)
(421
)
$
(554
)
$
(2,010
)
$
(5,918
)
[1]
[2]
For the years ended December 31,
2010
2009
2008
$
46,482
$
41,973
$
19,599
706
755
511
(452
)
(1,272
)
(873
)
$
325
$
941
$
616
24
429
38
(16
)
(151
)
(78
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
$
(2,200
)
$
(1,320
)
(211
)
(840
)
(161
)
(292
)
468
245
3
32
4
$
(2,072
)
$
(2,200
)
[1]
December 31, 2010
December 31, 2009
Cost or
Gross
Gross
Non-
Cost or
Gross
Gross
Non-
Amortized
Unrealized
Unrealized
Fair
Credit
Amortized
Unrealized
Unrealized
Fair
Credit
Cost
Gains
Losses
Value
OTTI [1]
Cost
Gains
Losses
Value
OTTI [1]
$
3,247
$
38
$
(396
)
$
2,889
$
(2
)
$
3,040
$
36
$
(553
)
$
2,523
$
(48
)
3,088
1
(478
)
2,611
(82
)
4,054
27
(1,189
)
2,892
(174
)
8,297
235
(615
)
7,917
(9
)
10,736
114
(2,306
)
8,544
(6
)
38,496
2,174
(747
)
39,884
7
35,318
1,368
(1,443
)
35,243
(23
)
1,627
73
(17
)
1,683
1,376
52
(20
)
1,408
12,469
150
(495
)
12,124
12,125
318
(378
)
12,065
(3
)
6,036
109
(462
)
5,683
(124
)
5,512
104
(769
)
4,847
(185
)
5,159
24
(154
)
5,029
3,854
14
(237
)
3,631
78,419
2,804
(3,364
)
77,820
(210
)
76,015
2,033
(6,895
)
71,153
(439
)
1,013
92
(132
)
973
1,333
80
(192
)
1,221
$
79,432
$
2,896
$
(3,496
)
$
78,793
$
(210
)
$
77,348
$
2,113
$
(7,087
)
$
72,374
$
(439
)
[1]
[2]
December 31, 2010
Maturity
Amortized Cost
Fair Value
$
1,886
$
1,905
17,151
17,817
14,563
15,180
24,151
23,818
57,751
58,720
20,668
19,100
$
78,419
$
77,820
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
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
$
302
$
290
$
(12
)
$
1,410
$
1,026
$
(384
)
$
1,712
$
1,316
$
(396
)
321
293
(28
)
2,724
2,274
(450
)
3,045
2,567
(478
)
556
530
(26
)
3,962
3,373
(589
)
4,518
3,903
(615
)
5,533
5,329
(199
)
4,017
3,435
(548
)
9,550
8,764
(747
)
356
349
(7
)
78
68
(10
)
434
417
(17
)
7,485
7,173
(312
)
1,046
863
(183
)
8,531
8,036
(495
)
1,744
1,702
(42
)
1,567
1,147
(420
)
3,311
2,849
(462
)
2,436
2,321
(115
)
158
119
(39
)
2,594
2,440
(154
)
18,733
17,987
(741
)
14,962
12,305
(2,623
)
33,695
30,292
(3,364
)
53
52
(1
)
637
506
(131
)
690
558
(132
)
$
18,786
$
18,039
$
(742
)
$
15,599
$
12,811
$
(2,754
)
$
34,385
$
30,850
$
(3,496
)
[1]
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
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
December 31, 2009
Amortized
Valuation
Carrying
Amortized
Valuation
Carrying
Cost [1]
Allowance
Value
Cost [1]
Allowance
Value
$
4,492
$
(152
)
$
4,340
$
6,096
$
(366
)
$
5,730
152
(3
)
149
208
208
$
4,644
$
(155
)
$
4,489
$
6,304
$
(366
)
$
5,938
[1]
For the years ended December 31,
2010
2009
2008
$
(366
)
$
(26
)
$
(157
)
(408
)
(26
)
368
68
$
(155
)
$
(366
)
$
(26
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Mortgage Loans by Region
December 31, 2010
December 31, 2009
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
77
1.7
%
$
125
2.1
%
428
9.5
%
689
11.6
%
109
2.4
%
138
2.3
%
259
5.8
%
449
7.6
%
1,147
25.6
%
1,377
23.2
%
1,177
26.3
%
1,213
20.4
%
36
0.8
%
51
0.9
%
231
5.1
%
297
5.0
%
1,025
22.8
%
1,599
26.9
%
$
4,489
100.0
%
$
5,938
100.0
%
[1]
Mortgage Loans by Property Type
December 31, 2010
December 31, 2009
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
315
7.0
%
$
596
10.0
%
1,141
25.4
%
1,068
18.0
%
132
2.9
%
421
7.1
%
713
15.9
%
835
14.1
%
986
22.1
%
1,727
29.1
%
669
14.9
%
712
12.0
%
384
8.5
%
371
6.2
%
149
3.3
%
208
3.5
%
$
4,489
100.0
%
$
5,938
100.0
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
December 31, 2009
Maximum
Maximum
Total
Total
Exposure
Total
Total
Exposure
Assets
Liabilities [1]
to Loss [2]
Assets
Liabilities [1]
to Loss [2]
$
729
$
393
$
289
$
226
$
32
$
196
14
1
13
31
1
30
111
20
87
$
743
$
394
$
302
$
368
$
53
$
313
[1]
[2]
[3]
December 31, 2010
December 31, 2009
Maximum
Maximum
Exposure
Exposure
Assets
Liabilities
to Loss
Assets
Liabilities
to Loss
$
$
$
$
262
$
$
273
32
32
4
36
36
5
$
32
$
32
$
4
$
298
$
36
$
278
[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)
Notional Amount
Fair Value
December 31,
December 31,
December 31,
December 31,
2010
2009
2010
2009
$
10,113
$
10,838
$
209
$
234
4,943
2,994
391
9
2,800
1,735
(133
)
(191
)
$
17,856
$
15,567
$
467
$
52
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Notional Amount
Fair Value
December 31,
December 31,
December 31,
December 31,
2010
2009
2010
2009
$
14,500
$
25,373
$
205
$
296
3,232
93
2,182
21
1,000
3
3,075
1,000
67
22
2,221
1,075
(5
)
$
26,210
$
27,448
$
384
$
318
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net Derivatives
Asset Derivatives
Liability 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
2010
2009
2010
2009
2010
2009
2010
2009
$
10,290
$
11,170
$
115
$
123
$
188
$
294
$
(73
)
$
(171
)
6,355
335
381
6
(3
)
29
30
(23
)
(33
)
10,625
17,906
121
120
217
324
(96
)
(204
)
1,120
1,745
(46
)
(21
)
5
16
(51
)
(37
)
677
696
(12
)
(9
)
71
53
(83
)
(62
)
1,797
2,441
(58
)
(30
)
76
69
(134
)
(99
)
7,938
8,355
(441
)
(84
)
126
250
(567
)
(334
)
368
1,039
(18
)
(13
)
1
14
(19
)
(27
)
2,285
2,514
177
(19
)
177
35
(54
)
2,119
2,271
608
316
608
319
(3
)
1,720
257
73
(8
)
74
(1
)
(8
)
2,559
2,606
(9
)
(50
)
29
45
(38
)
(95
)
2,569
1,158
(434
)
(240
)
8
2
(442
)
(242
)
8,367
6,176
(75
)
(71
)
98
185
(173
)
(256
)
189
220
(10
)
(16
)
5
3
(15
)
(19
)
42,739
47,329
(1,647
)
(2,002
)
(1,647
)
(2,002
)
8,767
10,301
280
347
280
347
17,856
15,567
467
52
647
264
(180
)
(212
)
26,210
27,448
384
318
394
558
(10
)
(240
)
246
226
3
2
3
2
500
500
32
36
32
36
124,432
125,967
(610
)
(1,432
)
2,482
2,060
(3,092
)
(3,492
)
$
136,854
$
146,314
$
(547
)
$
(1,342
)
$
2,775
$
2,453
$
(3,322
)
$
(3,795
)
$
728
$
269
$
(39
)
$
(8
)
$
$
$
(39
)
$
(8
)
55,948
24,006
1,524
390
2,105
492
(581
)
(102
)
28,333
64,061
(654
)
(56
)
387
1,612
(1,041
)
(1,668
)
39
64
(5
)
(5
)
(5
)
(5
)
8,767
10,301
280
347
280
347
43,039
47,613
(1,653
)
(2,010
)
3
2
(1,656
)
(2,012
)
$
136,854
$
146,314
$
(547
)
$
(1,342
)
$
2,775
$
2,453
$
(3,322
)
$
(3,795
)
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Derivatives in Cash Flow Hedging Relationships
Net Realized Capital Gains (Losses)
Gain (Loss) Recognized in OCI
Recognized in Income
on Derivative (Effective Portion)
on Derivative (Ineffective Portion)
2010
2009
2008
2010
2009
2008
$
294
$
(461
)
$
908
$
2
$
(3
)
$
9
8
(194
)
233
(1
)
75
$
302
$
(655
)
$
1,141
$
1
$
72
$
9
Derivatives in Cash Flow Hedging Relationships
Gain (Loss) Reclassified from AOCI
into Income (Effective Portion)
2010
2009
2008
Net realized capital gains (losses)
$
18
$
11
$
34
Net investment income (loss)
94
47
(17
)
Net realized capital gains (losses)
(7
)
(119
)
(83
)
Net investment income (loss)
2
1
$
105
$
(59
)
$
(65
)
Derivatives in Fair Value Hedging Relationships
Gain (Loss) Recognized in Income [1]
2010
2009
2008
Derivative
Hedged Item
Derivative
Hedged Item
Derivative
Hedged Item
$
(43
)
$
36
$
72
$
(68
)
$
(138
)
$
130
(1
)
3
(37
)
40
25
(18
)
8
(8
)
51
(51
)
(124
)
124
(12
)
12
2
(2
)
42
(42
)
$
(48
)
$
43
$
88
$
(81
)
$
(195
)
$
194
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
As of December 31, 2010
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]
$
1,562
$
(14
)
3 years
Corporate Credit/
Foreign Gov.
A+
$
1,447
$
(41
)
204
(6
)
3 years
Corporate Credit
BB-
168
(13
)
3,145
(1
)
4 years
Corporate Credit
BBB+
2,019
(14
)
525
(50
)
6 years
CMBS Credit
BBB+
525
50
767
(381
)
4 years
Corporate Credit
BBB+
25
25
25
4 years
Corporate Credit
BBB-
525
463
6 years
Corporate Credit
BB+
$
6,753
$
36
$
4,184
$
(18
)
As of December 31, 2009
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
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
December 31, 2009
$
823
$
891
14
$
823
$
905
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
9,518
$
9,448
$
10,441
192
162
263
(576
)
(484
)
(421
)
$
9,134
$
9,126
$
10,283
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Premiums Written
2010
2009
2008
$
10,070
$
10,185
$
10,831
234
238
218
(619
)
(712
)
(818
)
$
9,685
$
9,711
$
10,231
Premiums Earned
$
10,105
$
10,386
$
10,999
256
253
216
(668
)
(778
)
(877
)
$
9,693
$
9,861
$
10,338
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2010
2009
2008
$
10,686
$
13,248
$
11,742
2,648
2,853
3,675
(2,682
)
(3,257
)
(3,118
)
138
(1,010
)
(1,153
)
(1,159
)
(1,031
)
1,754
215
(39
)
348
11
(78
)
$
9,857
$
10,686
$
13,248
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2010
December 31, 2009
Accumulated
Carrying
Accumulated
Carrying
Gross
Impairments
Value
Gross
Impairments
Value
$
30
$
$
30
$
30
$
$
30
30
30
30
30
119
119
119
119
422
(422
)
422
(422
)
224
224
224
224
87
87
87
87
159
159
159
159
892
(422
)
470
892
(422
)
470
940
(508
)
432
940
(355
)
585
$
1,981
$
(930
)
$
1,051
$
1,981
$
(777
)
$
1,204
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
90
$
121
$
106
18
47
39
72
74
67
(1
)
6
15
(7
)
(8
)
(8
)
64
72
74
25
18
47
$
89
$
90
$
121
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
International
UL Secondary
U.S. GMDB
GMDB/GMIB
Guarantees
$
1,233
$
599
$
76
239
103
39
(294
)
(134
)
(125
)
39
(2
)
89
$
1,053
$
696
$
113
$
787
$
51
$
22
139
(26
)
8
(176
)
1
(64
)
5
5
$
686
$
36
$
30
International
UL Secondary
U.S. GMDB
GMDB/GMIB
Guarantees
$
870
$
232
$
40
298
109
41
(457
)
(121
)
522
342
(5
)
37
$
1,233
$
599
$
76
$
595
$
33
$
16
166
(6
)
6
(253
)
(2
)
279
26
$
787
$
51
$
22
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
$
25,546
$
5,526
$
1,327
68
1,752
472
160
68
6,524
883
99
64
724
157
33
67
34,546
7,038
1,619
27,840
2,703
1,736
65
1,319
88
88
63
3,699
243
241
68
23,427
674
647
65
$
90,831
$
10,746
$
4,331
66
6,865
83,966
75,776
$
159,742
$
31,249
$
8,847
$
7,593
69
$
28,835
5,777
5,777
69
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
[10]
[11]
Asset type
As of December 31, 2010
As of December 31, 2009
$
75,601
$
75,720
8,365
9,298
$
83,966
$
85,018
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2010
2009
2008
$
438
$
553
$
467
31
59
151
(8
)
(105
)
(21
)
(2
)
(69
)
(44
)
$
459
$
438
$
553
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
6,131
$
6,066
$
6,028
213
231
261
5,918
5,835
5,767
3,260
3,244
3,243
70
(88
)
(118
)
3,330
3,156
3,125
1,552
1,580
1,554
1,517
1,493
1,503
3,069
3,073
3,057
6,179
5,918
5,835
209
213
231
$
6,388
$
6,131
$
6,066
2010
2009
$
6,388
$
6,131
216
232
110
123
11,859
11,494
$
18,573
$
17,980
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
21,651
$
21,933
$
22,153
3,441
3,586
3,922
18,210
18,347
18,231
6,768
6,596
6,933
(196
)
(186
)
(226
)
6,572
6,410
6,707
2,952
2,776
2,888
3,882
3,771
3,703
6,834
6,547
6,591
17,948
18,210
18,347
3,077
3,441
3,586
$
21,025
$
21,651
$
21,933
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,
Operating Leases
$
114
71
47
26
16
33
$
307
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
134
502
$
(247
)
69
203
502
(247
)
77
(1,580
)
(1,574
)
1
712
(742
)
303
(475
)
721
381
(1,343
)
(1,595
)
$
584
(841
)
$
(1,842
)
Deferred Tax Assets
2010
2009
$
647
$
682
579
641
401
401
3,246
1,718
555
494
4
1,581
1,183
1,102
535
88
86
63
66
6,766
7,306
(173
)
(86
)
6,593
7,220
(2,721
)
(3,179
)
(42
)
(43
)
(105
)
(58
)
(2,868
)
(3,280
)
$
3,725
$
3,940
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2010
2009
2008
$
48
$
91
76
27
(35
)
(12
)
(8
)
$
48
$
48
91
For the years ended December 31,
2010
2009
2008
$
792
(605
)
$
(1,607
)
(152
)
(149
)
(161
)
(154
)
(188
)
(191
)
78
87
30
32
12
113
11
(19
)
(28
)
$
584
(841
)
$
(1,842
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Short-Term Debt
2010
2009
$
400
$
343
$
400
$
343
400
320
320
200
199
300
200
200
300
300
499
499
500
500
500
499
499
149
149
92
92
298
298
299
324
323
4,480
3,779
5
5
500
500
1,222
1,212
1,727
1,717
$
6,207
$
5,496
For the years ended December 31,
2010
2009
2008
$
$
3
$
11
508
473
332
$
508
$
476
$
343
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
$
400
320
200
500
5,805
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
2010
2009
2010
2009
11/10/86
N/A
$
2,000
$
2,000
$
$
8/9/07
8/9/12
1,900
1,900
$
3,900
$
3,900
$
$
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,
2010
2009
2008
$
(140
)
$
1,714
$
(4,669
)
1,477
889
497
$
1,337
$
2,603
$
(4,172
)
As of December 31,
2010
2009
$
7,731
$
7,324
7,721
7,364
$
15,452
$
14,688
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)
$
(2,713
)
$
257
$
199
$
(1,055
)
$
(3,312
)
1,707
1,707
116
116
194
194
128
128
289
289
(123
)
(123
)
$
(696
)
$
385
$
488
$
(1,178
)
$
(1,001
)
$
(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]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
Other Postretirement Benefits
2010
2009
2010
2009
5.50
%
6.00
%
5.25
%
5.75
%
4.00
%
4.00
%
N/A
N/A
For the years ended December 31,
2010
2009
2008
6.00
%
6.25
%
6.25
%
7.30
%
7.30
%
7.30
%
4.00
%
4.25
%
4.25
%
For the years ended December 31,
2010
2009
2008
5.75
%
6.25
%
6.25
%
7.30
%
7.30
%
7.30
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
As of December 31,
2010
2009
2008
9.70
%
9.05
%
8.80
%
8.25
%
7.60
%
7.00
%
5.00
%
5.00
%
5.00
%
2018
2018
2015
Other Postretirement
Pension Benefits
Benefits
Change in Benefit Obligation
2010
2009
2010
2009
$
4,283
$
3,938
$
401
$
384
102
105
7
6
252
243
22
24
15
16
86
71
(7
)
(5
)
(43
)
348
118
17
17
(234
)
(197
)
(49
)
(46
)
2
5
1
5
$
4,795
$
4,283
$
408
$
401
Other Postretirement
Pension Benefits
Benefits
Change in Plan Assets
2010
2009
2010
2009
$
3,526
$
3,326
$
175
$
154
434
184
15
21
201
201
(228
)
(177
)
(12
)
(13
)
1
5
$
3,922
$
3,526
$
190
$
175
$
(873
)
$
(757
)
$
(218
)
$
(226
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31,
2010
2009
$
4,771
$
4,239
4,733
4,209
3,901
3,471
Pension Benefits
Other Postretirement Benefits
2010
2009
2010
2009
$
$
12
$
$
(19
)
(54
)
(34
)
(33
)
(854
)
(715
)
(184
)
(193
)
$
(873
)
$
(757
)
$
(218
)
$
(226
)
Pension Benefits
Other Postretirement Benefits
2010
2009
2008
2010
2009
2008
$
102
$
105
$
121
$
7
$
6
$
6
252
243
230
22
24
23
(286
)
(276
)
(279
)
(13
)
(11
)
(12
)
(9
)
(9
)
(9
)
(1
)
(1
)
(1
)
107
74
59
20
$
186
$
137
$
122
$
15
$
18
$
16
Pension Benefits
Other Postretirement Benefits
2010
2009
2010
2009
$
(107
)
$
(74
)
$
$
(20
)
9
9
1
1
298
302
7
3
$
180
$
237
$
8
$
4
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
Other Postretirement Benefits
2010
2009
2010
2009
$
1,852
$
1,681
$
17
$
9
(30
)
(39
)
(1
)
1
$
1,822
$
1,642
$
17
$
9
Target Asset Allocation
Pension Plans
Other Postretirement Plans
10% 30%
20% 40%
50% 70%
60% 80%
10% 25%
Percentage of Pension Plans Assets
Percentage of Other Postretirement Plans
At Fair Value as of December 31,
Assets at Fair Value as of December 31,
2010
2009
2010
2009
22
%
28
%
22
%
21
%
61
%
57
%
78
%
79
%
17
%
15
%
100
%
100
%
100
%
100
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Plan Assets at Fair Value as of December 31, 2010
Asset Category
Level 1
Level 2
Level 3
Total
$
75
$
406
$
$
477
882
3
906
450
9
459
7
330
336
61
2
42
174
1
175
56
7
63
496
501
62
62
47
47
248
248
635
635
$
439
$
2,855
$
657
$
3,951
[1]
[2]
[3]
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]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Actual return on plan assets
Relating to
Fair Value
assets still
Relating to
Purchase,
Transfers
Fair Value as
as of
held at the
assets sold
issuances,
in and / or
of
January 1,
reporting
during the
and
out of
December 31,
Asset Category
2010
date
period
settlements
Level 3
2010
$
12
$
(1
)
$
1
$
(6
)
$
(3
)
$
3
24
(15
)
9
2
2
(2
)
2
8
1
4
(5
)
8
501
29
4
101
635
$
547
$
29
$
5
$
86
$
(10
)
$
657
Pension Plan Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Actual return on plan assets
Relating to
Fair Value
assets still
Relating to
Purchase,
Transfers
Fair Value as
as of
held at the
assets sold
issuances,
in and / or
of
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, 2010
Asset Category
Level 1
Level 2
Level 3
Total
$
$
10
$
$
10
57
60
44
44
19
19
17
17
6
3
43
43
$
$
196
$
$
196
[1]
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]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Employer Contributions
Pension Benefits
Other Postretirement Benefits
$
201
$
$
201
Pension Benefits
Other Postretirement Benefits
$
257
$
37
280
39
298
40
315
39
330
39
1,826
178
$
3,306
$
372
$
3
4
4
4
4
25
$
44
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2010
2009
2008
$
94
$
72
$
62
(33
)
(20
)
(19
)
$
61
$
52
$
43
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2009
2008
3.2%
2.9%
57.8% - 57.8%
37.0% - 32.2%
57.8%
33.3%
0.3% - 4.2%
2.0% - 5.0%
7.3 years
8 years
Weighted
Average
Weighted
Remaining
Number of Options
Average
Contractual
Aggregate
(in thousands)
Exercise Price
Term
Intrinsic Value
6,469
$
49.76
3.8
$
(36
)
7.04
(486
)
39.57
(668
)
35.88
5,279
52.90
2.9
4,541
$
58.01
2.2
Shares
Weighted-Average
Non-vested Shares
(in thousands)
Grant-Date Fair Value
1,845
$
53.19
1,022
22.93
(78
)
(437
)
78.81
(463
)
27.46
1,889
$
35.83
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Weighted-Average
Weighted-Average
Deferred Units
Grant-Date Fair
Restricted Units
Grant-Date Fair
Non-vested Units
(in thousands)
Value
(in thousands)
Value
$
137
$
24.12
265
26.12
625
24.76
(265
)
26.12
(114
)
24.29
$
648
$
24.70
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2009
2008
1.4
%
3.5
%
91.4
%
45.5
%
0.3
%
1.9
%
6 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)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2010
2009
$
25
$
52
1
53
34
$
26
$
139
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2010
2009
2010
2009
2010
2009
2010
2009
$
6,319
$
5,394
$
3,336
$
7,637
$
6,673
$
5,230
$
6,055
$
6,440
$
5,784
$
7,411
$
3,343
$
7,619
$
5,751
$
5,687
$
5,241
$
5,712
$
319
$
(1,209
)
$
76
$
(15
)
$
666
$
(220
)
$
619
$
557
483
11
3
10
62
11
62
$
(164
)
$
(1,209
)
$
65
$
(18
)
$
656
$
(282
)
$
608
$
495
$
(0.42
)
$
(3.77
)
$
0.15
$
(0.06
)
$
1.48
$
(0.79
)
$
1.37
$
1.29
$
(0.42
)
$
(3.77
)
$
0.14
$
(0.06
)
$
1.34
$
(0.79
)
$
1.24
$
1.19
393.7
320.8
443.9
325.4
444.1
356.1
444.3
382.7
393.7
320.8
480.2
325.4
495.3
356.1
497.8
416.2
[1]
[2]
Table of Contents
SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN AFFILIATES
(In millions)
As of December 31, 2010
Amount at
which shown on
Type of Investment
Cost
Fair Value
Balance Sheet
$
9,961
$
9,918
$
9,918
12,469
12,124
12,124
1,627
1,683
1,683
7,099
7,427
7,427
31,397
32,457
32,457
15,866
14,211
14,211
78,419
77,820
77,820
845
649
649
79,264
78,469
78,469
271
345
345
742
628
628
1,013
973
973
33,875
32,820
32,820
34,888
33,793
33,793
4,489
4,524
4,489
2,181
2,294
2,181
1,918
1,918
1,918
1,240
1,617
1,617
8,528
8,528
8,528
$
132,508
$
131,143
$
130,995
Table of Contents
(Registrant)
(In millions)
As of December 31,
Condensed Balance Sheets
2010
2009
$
251
$
309
31
36
1,762
1,936
25,227
21,642
885
755
55
51
22
368
$
28,233
$
25,097
$
430
$
366
400
275
5,961
5,250
1,131
1,341
7,922
7,232
20,311
17,865
$
28,233
$
25,097
For the years ended December 31,
Condensed Statements of Operations
2010
2009
2008
$
5
$
8
$
30
(5
)
(231
)
103
(223
)
133
489
457
323
11
8
(3
)
500
465
320
(500
)
(688
)
(187
)
(170
)
(157
)
(102
)
(330
)
(531
)
(85
)
2,010
(356
)
(2,664
)
$
1,680
$
(887
)
$
(2,749
)
the consolidated financial statements and notes thereto.
Table of Contents
SCHEDULE II
THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued)
(Registrant)
(In millions)
For the years ended December 31,
Condensed Statements of Cash Flows
2010
2009
2008
$
1,680
$
(887
)
$
(2,749
)
(1,004
)
1,307
(4,766
)
(21
)
(590
)
9,372
655
(170
)
1,857
233
(412
)
(892
)
(10
)
(311
)
(3,115
)
(2,300
)
(78
)
(3,537
)
(3,192
)
1,090
2,670
(275
)
(955
)
(375
)
556
1,600
727
512
3,400
(3,400
)
887
22
17
41
(1,000
)
(85
)
(73
)
(85
)
(149
)
(660
)
(577
)
3,707
1,335
$
$
$
$
465
$
454
$
265
$
1,006
$
243
$
2,279
the consolidated financial statements and notes thereto.
Table of Contents
Deferred Policy
Acquisition Costs
Other
and Present
Future Policy Benefits,
Policyholder
Value of Future
Unpaid Losses and Loss
Unearned
Funds and
Segment
Profits
Adjustment Expenses
Premiums
Benefits Payable
$
603
$
14,727
$
3,126
$
67
6,640
76
320
660
2,177
1,875
4,981
10,427
80
61,251
2,661
1,048
14
8,927
842
458
3
6,841
43
4
4,121
2
$
9,857
$
39,598
$
5,176
$
77,343
$
619
$
15,051
$
3,114
$
78
6,403
84
401
644
2,109
1,938
5,650
10,290
70
63,122
2,658
944
13
6,620
980
293
6,156
57
4,541
2
1,849
$
10,686
$
39,631
$
5,221
$
78,148
Table of Contents
SCHEDULE III
SUPPLEMENTARY INSURANCE INFORMATION (continued)
Amortization of
Insurance
Earned
Benefits, Losses
Deferred Policy
Operating
Premiums, Fee
Net
and Loss
Acquisition Costs
Costs and
Income and
Investment
Adjustment
and Present Value
Other
Net Written
Segment
Other
Income
Expenses
of Future Profits
Expenses [1]
Premiums
$
6,052
$
939
$
3,370
$
1,353
$
866
$
5,796
4,278
429
3,331
61
1,111
N/A
4,119
187
2,951
667
493
3,886
2,602
917
1,223
253
768
N/A
1,029
522
849
121
223
N/A
359
364
278
27
340
N/A
690
(8
)
62
480
N/A
190
268
249
1,043
3
$
19,319
$
3,618
$
12,251
$
2,544
$
5,324
$
9,685
$
6,237
$
759
$
3,266
$
1,393
$
866
$
5,715
4,350
403
3,196
61
1,120
N/A
4,113
178
2,902
674
475
3,995
2,673
4,894
6,277
1,716
860
N/A
1,054
347
715
317
208
N/A
324
315
269
56
346
N/A
518
(21
)
50
395
N/A
223
344
394
873
1
$
19,492
$
7,219
$
17,019
$
4,267
$
5,143
$
9,711
$
6,758
$
803
$
3,822
$
1,461
$
903
$
6,291
4,391
419
3,144
57
1,128
N/A
4,070
207
2,758
633
438
3,933
3,732
(8,405
)
(7,220
)
1,762
1,382
N/A
946
343
692
171
228
N/A
338
342
271
91
335
N/A
666
(22
)
96
491
N/A
241
308
281
886
7
$
21,142
$
(6,005
)
$
3,748
$
4,271
$
5,791
$
10,231
[1]
N/A
Table of Contents
Percentage
Assumed
of Amount
Gross
Ceded to Other
From Other
Net
Assumed
Amount
Companies
Companies
Amount
to Net
$
987,104
$
135,269
$
43,999
$
895,834
5
%
$
10,105
668
256
9,693
3
%
7,297
518
128
6,907
2
%
2,221
58
64
2,227
3
%
$
19,623
$
1,244
$
448
$
18,827
2
%
$
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
%
Table of Contents
Charged to
Write-offs/
Balance
Costs and
Translation
Payments/
Balance
January 1,
Expenses
Adjustment
Other
December 31,
$
121
$
53
$
$
(55
)
$
119
335
11
(56
)
290
366
157
(368
)
155
86
87
173
$
125
$
53
$
$
(57
)
$
121
379
11
(55
)
335
26
408
(68
)
366
75
11
86
$
126
$
53
$
$
(54
)
$
125
404
12
(37
)
379
26
26
43
32
75
(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
$
524
$
6,768
$
(196
)
$
6,834
$
511
$
6,596
$
(186
)
$
6,547
$
488
$
6,933
$
(226
)
$
6,591
[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 25, 2011
/s/ Christopher J. Swift
Executive Vice President and Chief Financial Officer (Principal
Financial Officer)
February 25, 2011
/s/ Beth A. Bombara
Senior Vice President and Controller (Principal
Accounting Officer)
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
*
Director
February 25, 2011
/s/ Alan J. Kreczko
As Attorney-in-Fact
Table of Contents
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
FORM 10-K
Exhibit No.
Description
3.01
3.02
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11
4.12
4.13
4.14
Table of Contents
Exhibit No.
Description
4.15
4.16
4.17
10.01
10.02
10.03
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
Table of Contents
Exhibit No.
Description
*10.21
*10.22
*10.23
*10.24
*10.25
*10.26
*10.27
*10.28
10.29
10.30
10.31
10.32
12.01
21.01
23.01
24.01
31.01
31.02
32.01
32.02
99.01
99.02
*
1
1
1
2
3
3
4
4
5
6
7
10
10
11
13
13
14
14
1. |
Purpose
|
2. |
Application of Plan
|
3. |
Covered Employees
|
1
4. |
Severance Pay Upon Termination of Employment
|
2
5. |
Schedule of Severance Pay
|
6. |
Pro-Rata Annual Bonus and Treatment of Long Term Incentives
|
3
7. |
Notice or Pay in Lieu of Notice
|
8. |
Payment of Severance Pay and Pro-Rata Annual Bonus
|
4
9. |
Employee Benefit Plan Coverage While Receiving Severance Pay
|
5
10. |
Sale, Divestiture, Outsourcing, Closure or Relocation
|
6
11. |
Severance Pay in the Event of a Change of Control
|
7
8
9
12. |
Separation and Release Agreement
|
13. |
Offset
|
10
14. |
Administration of Plan
|
11
12
15. |
Termination or Amendment
|
16. |
Miscellaneous
.
|
13
17. |
Other Important Information
|
14
1
1
1
2
3
4
5
5
5
6
7
11
11
12
13
14
15
15
1. |
Purpose
|
2. |
Application of Plan
|
3. |
Covered Employees
|
1
4. |
Severance Pay Upon Termination of Employment
|
2
5. |
Schedule of Severance Pay
|
Number of Months | ||||
Years of Service | of Base Pay | |||
Less than 4 Years of Service
|
12 months | |||
4 Years of Service
|
13 months | |||
5 Years of Service
|
14 months | |||
6 Years of Service
|
15 months | |||
7 Years of Service
|
16 months | |||
8 Years of Service
|
17 months | |||
9 Years of Service
|
18 months | |||
10 Years of Service
|
19 months | |||
11 Years of Service
|
20 months | |||
12 Years of Service
|
21 months | |||
13 Years of Service
|
22 months | |||
14 Years of Service
|
23 months | |||
15 or more Years of Service
|
24 months |
3
6. |
Pro-Rata Annual Bonus and Treatment of Long Term Incentives
|
4
7. |
Notice or Pay in Lieu of Notice
|
8. |
Payment of Severance Pay and Pro-Rata Annual Bonus
|
9. |
Employee Benefit Plan Coverage While Receiving Severance Pay
|
5
10. |
Sale, Divestiture, Outsourcing, Closure or Relocation
|
6
11. |
Severance Pay in the Event of a Change of Control
|
7
8
9
10
12. |
Separation and Release Agreement
|
13. |
Offset
|
11
14. |
Administration of Plan
|
12
15. |
Termination or Amendment
|
13
16. |
Miscellaneous
|
14
17. |
Other Important Information
|
15
1. |
Awards to Executives Who Report to the CEO or Who Are Section 16 Executive
Officers
: Awards for those executives who report to the Chief Executive Officer and
executive officers as defined in Section 16 of the Act and as designated by the Board of
Directors (collectively Senior Executive Officers) shall be made by the Committee, or by
the Committee Chairman subject to subsequent ratification by the Committee,
|
2. |
Awards to Other Key Employees
: Pursuant to Section 11(d) of the Plan, and to
the extent not inconsistent with the Plan, the Committee hereby delegates its authority to
the Chief Executive Officer or the Executive Vice President, Human Resources of the
Company (or other person holding a similar position) to grant Awards (and to determine all
matters related thereto) to Key Employees who are not Senior Executive Officers (as
defined above) after the date the Committee makes its annual Awards of Restricted Units to
Key Employees, as follows:
|
|
in the case of Restricted Units, a guideline Award value up to the target
annual Award amount applicable to the Key Employee, and, in the case of Restricted Stock, a guideline award value up to 100% of the Key Employees base salary
|
|
guideline Award vesting pursuant to which the restrictions on an Award lapse
either on the third anniversary of the date of award, or in accordance with the
schedule applicable to the most recent Awards approved by the Committee for Key
Employees.
|
|
Awards of Options and Performance Shares shall be made only to Key Employees
who are not in Tier 3 and below
|
|
a guideline Award value up to the target annual Award amount applicable to
the Key Employee
|
|
guideline Award vesting pursuant to which the restrictions on an Award lapse
either on the third anniversary of the date of award, or in accordance with the
schedule applicable to the most recent Awards approved by the Committee for Key
Employees.
|
3. |
Termination Rules for Restricted Units and Performance Shares
. Pursuant to
the discretion granted to the Committee with respect to vesting of Restricted Units and
Performance Shares, if a Key Employee (including a Senior Executive Officer) terminates
employment with all Participating Companies during a Restriction Period or Performance
Period because of (a) death, (b) Total Disability, or (c) his or her termination of
employment due to Retirement, that Key Employee shall be entitled, following the end of
the applicable Restriction Period or Performance Period, to a prorated payment in
settlement of such Restricted Units and Performance Shares, with such proration based on
the portion of the Restriction Period or Performance Period during which the Key Employee
was employed by a Participating Company.
|
4. |
Termination Rules for Options
. Pursuant to the discretion granted to the
Committee with respect to vesting of Options, if a Key Employee (including a Senior
Executive Officer) terminates employment with all Participating Companies because of (a)
death, (b) Total Disability, or (c) his or her termination of employment due to
Retirement, any Options held by that Key Employee which are not fully exercisable
immediately prior to such optionees termination of employment shall become fully
exercisable upon such death, Total Disability or Retirement, provided however that, in the
event of a Key Employees Retirement, the Key Employees termination of employment is at
least one year after the date of grant of the Options.
|
5. |
Termination Rules for Restricted Stock
. Pursuant to the discretion granted
to the Committee with respect to vesting of Restricted Stock, if a Key Employee terminates
employment with all Participating Companies during a Restriction Period, the restrictions
applicable to the shares of Restricted Stock awarded to such Key Employee shall not lapse
upon such termination of employment (and the shares of Restricted Stock shall not become
vested) except as may be otherwise provided in Section 9 of the Plan (regarding a Change
of Control) or such Key Employees Award Document, or as may be specifically approved by
the Committee, regardless of the reason for such termination of employment.
|
6. |
Crediting of Dividend Equivalents to Restricted Units
. Pursuant to Section
7(g) of the Plan, the Restricted Unit account of a Key Employee shall be credited with
Dividend Equivalents during the Restriction Period, which shall be subject to the same
terms and conditions (and become payable and be paid) as the Restricted Units to which
they relate. All Dividend Equivalents payable in respect of Restricted Units shall be
deemed reinvested in that number of Restricted Units determined based on the Fair Market
Value on the date the corresponding dividend on the Stock is payable to stockholders.
|
7. |
Termination of Awards.
The Committee may in its sole discretion terminate in
whole or in part such portion of a Key Employees Award of Restricted Stock, Restricted
Units, Performance Shares, Options, or Rights as has not at the time of such termination
become vested or with respect to which any applicable Performance Period or Restriction
Period has not lapsed, if the Committee determines that such Key Employee is not
performing satisfactorily the duties to which he or she was assigned (or duties of at
least equal responsibility) on the date the Award was made to the Key Employee.
|
8. |
Definition of Total Disability
. A Key Employee shall be deemed to have
terminated employment by reason of Total Disability for purposes of the Plan if the Key
Employee becomes entitled to receipt of long term disability benefits under the Companys
Long-Term Disability Benefits Plan for Salaried Employees.
|
9. |
Tax Withholding
. Federal, state and local income or other taxes to be
withheld with respect to Awards for a Key Employee shall be satisfied by retaining Stock
otherwise deliverable to the Key Employee in an amount sufficient to satisfy the
withholding obligations applicable in respect of such Awards, unless other arrangements
satisfactory to the Executive Vice President, Human Resources are made for withholding.
|
1. |
Annual Non-Employee Director Restricted Stock Awards
. An annual award of
Restricted Stock automatically shall be made, on such date as may be determined
appropriate by the Nominating and Corporate Governance Committee of the Board (the
Nominating Committee) from time to time, to each director of the Company who is not an
officer of, or otherwise employed by, the Company or any of its subsidiaries or affiliates
(Non-Employee Director).
|
2. |
Amount of Awards
. The amount of each Non-Employee Directors annual
Restricted Stock award shall equal the number of whole shares of Stock (rounded up to the
nearest whole share) determined by dividing (a) the dollar amount of the annual award as
may be in effect at the time of award as determined by the Nominating Committee, by (b)
the Fair Market Value of the Stock on the date of award.
|
3. |
General Rule for Lapse of Restrictions on Restricted Stock
. Except as
otherwise provided in the Plan, the restrictions on Restricted Stock awarded to
Non-Employee Directors under the Plan shall lapse in accordance with the following vesting
schedule (or such other vesting schedule as may be determined appropriate by the
Nominating Committee from time to time): the restrictions on such Restricted Stock shall
lapse on the earlier of (i) the last day of the Board service year (the period between
dates of Annual Meetings of Stockholders) during which he or she is elected or (ii) the
first anniversary of the award grant date. Notwithstanding the preceding sentence, the
restrictions on Restricted Stock awarded to a Non-Employee Director shall lapse
automatically upon the occurrence of any of the following events: (a) retirement from
service
|
4. |
Registration of Restricted Stock
. All shares of restricted stock granted to
Non-Employee Directors will be registered in their respective names and held in escrow by
the Company until the restrictions on such shares lapse in accordance with the Plan and
these Rules. Shares of restricted stock may be evidenced on a book entry or electronic
basis or pursuant to other arrangements (including, without limitation, in an omnibus or
nominee account administered by a third party), rather than such shares being registered
in the respective names of the Non-Employee Directors and held in escrow, so long as the
shares of restricted stock to the credit of each Non-Employee Director may be accurately
determined.
|
5. |
Dividends and Voting Rights
. Pursuant to Section 7(j) of the Plan,
Non-Employee Directors shall receive dividends with respect to all Restricted Stock held
in escrow on their behalf and shall have the right to vote such Restricted Stock.
|
6. |
Prorated Awards for Non-Employee Directors Elected After Annual Non-Employee
Director Restricted Stock Awards are Made
. A Non-Employee Director elected to the
Board after the annual Non-Employee Director Restricted Stock Awards described in Rule 1
are made shall receive a prorated annual Award of Restricted Stock (rounded up to the
nearest whole share) for the portion of the Board service year (the period between dates
of Annual Meetings of Stockholders) during which he or she is elected. The amount of such
award shall be determined by dividing (a) the dollar amount in effect under Rule 2 for the
immediately preceding annual Non-Employee Director Restricted Stock Awards under Rule 1,
by (b) the Fair Market Value of the Stock on the date of such Non-Employee Directors
election, and (c) multiplying the resulting amount by the Service Fraction. The Service
Fraction shall mean the fraction resulting from dividing (i) the nearest number of whole
months that are expected to elapse between the date of such Non-Employee Directors
election and the next Annual Meeting of Stockholders, by (ii) the nearest number of whole
months that are expected to elapse between the immediately preceding Annual Meeting of
Stockholders and the next Annual Meeting of Stockholders. A Non-Employee
|
7. |
Voluntary Deferrals
. A Non-Employee Director may elect to receive Restricted
Units in lieu of all or a portion of compensation otherwise payable in cash for a Board
service year, including the annual Board cash retainer, any Board committee chair cash
retainer, and Board and committee meeting fees earned in conjunction with service on the
Board. Such election, along with the election as to when the Restricted Units are to be
distributed, shall be made in the calendar year before the start of the applicable Board
service year, and shall be irrevocable as of the end of such calendar year. The available
elections as to when the Restricted Units are to be distributed shall be the same as are
then in effect under The Hartford Deferred Compensation Plan. Any such Restricted Units
shall be credited to the Non-Employee Director as of the last trading day of the calendar
quarter in which the amount would otherwise have been payable to the director in cash.
The number of Restricted Units credited shall be determined by dividing that dollar amount
by the Fair Market Value of the Stock on the last trading date of the calendar quarter.
During the Restriction Period, dividend equivalents will be reinvested in Restricted
Units. Any Restricted Units credited as a dividend equivalent (including any dividend
equivalents credited on Restricted Units that were previously credited as dividend
equivalents) shall be payable to a Non-Employee Director at the same time and subject to
the same conditions as are applicable to the Restricted Units in respect of which such
dividend equivalents were credited.
|
8. |
Election to Receive Stock in Lieu of Annual Cash Retainer
. A Non-Employee
Director may elect to receive unrestricted Stock in lieu of all or a portion of the annual
Board cash retainer for a Board service year. Such election shall be made prior to the
start of the applicable Board service year. Any such unrestricted Stock shall be
transferred to the Non-Employee Director as of the first trading day of the trading window
next following the start of the applicable Board service year. The number of shares of
Stock transferred shall be determined by dividing the elected dollar amount of the annual
Board cash retainer by the Fair Market Value of the Stock on the first day of the
applicable trading window.
|
Notice of Award / Award Agreement
|
[DATE] | |
|
||
[Name]
|
THE HARTFORD FINANCIAL SERVICES GROUP, INC. |
RESTRICTION PERIOD:
|
[3 years from date of award] |
Notice of Award
|
[DATE] | |
|
||
[NAME]
|
THE HARTFORD FINANCIAL SERVICES GROUP, INC. |
RESTRICTED SHARES: | RESTRICTION PERIOD: | |
[XXX]
|
[2011-2012 Board Service Year] |
- 2 -
- 3 -
- 4 -
- 5 -
- 6 -
- 7 -
- 8 -
- 9 -
- 10 -
(A) |
Certain Members Hired Before 2001
.
Solely with respect
to a Member with an original hire date with the Company before January 1, 2001
who: (i) is covered in whole or in part under the final average pay formula of
the Retirement Plan, or (ii) is not eligible for coverage under the Retirement
Plan, Retirement shall mean satisfaction of the requirements for early or
normal retirement under the final average pay formula of the Retirement Plan
(assuming such Member were covered under the final average pay formula of the
Retirement Plan), provided such event results in such Members separation from
the employment of the Company; or
|
(B) |
Certain Members Hired During 2001
.
Solely with respect
to a Member with an original hire date with the Company on or after January 1,
2001 but before January 1, 2002 who: (i) is covered under the cash balance
formula of the Retirement Plan, or (ii) is not eligible for coverage under the
Retirement Plan, Retirement shall mean satisfaction of the requirements for
early or normal retirement under the final average pay formula of the Retirement
Plan (assuming such Member were covered under the final average pay formula of
the Retirement Plan), provided such event results in such Members separation
from the employment of the Company; or
|
(C) |
Certain Members Hired During 2002 or Later
.
Solely with
respect to a Member with an original hire date with the Company on or after
January 1, 2002 who: (i) is covered under the cash balance formula of the
Retirement Plan, or (ii) is not eligible for coverage under the Retirement Plan,
Retirement shall mean, solely for purposes of this Plan, separation from the
employment of the Company on or after reaching age 65.
|
- 11 -
- 12 -
- 13 -
- 14 -
- 15 -
- 16 -
- 17 -
- 18 -
- 19 -
- 20 -
- 21 -
- 22 -
- 23 -
- 24 -
- 25 -
- 26 -
Years of Service | Percentage of Company Contribution that is Vested | |||
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 -
Years of Service | Percentage of Company Contribution that is Vested | |||
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 -
- 35 -
- 36 -
Type of Contribution | Sub-Account | Account | ||
-Basic Before-Tax Savings
-Basic Roth 401(k) Savings -Basic After-Tax Savings |
Basic Before-Tax Investment Account
Basic Roth 401(k) Investment Account Basic After-Tax Investment Account |
} | Basic Investment Account | |
|
||||
-Supplemental Before-Tax Savings
-Supplemental Roth 401(k) Savings -Supplemental After-Tax Savings -Prior Plan Transfers |
Supplemental Before-Tax Investment Account
Supplemental Roth 401(k) Investment Account Supplemental After-Tax Investment Account |
} | Supplemental Investment Account | |
|
||||
- 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)
-Floor Company Contributions -Prior Plan Transfers -Reinvested Dividends Attributable to The Hartford Stock Fund |
|
} | Company Contribution Account | |
|
||||
Planco Profit Sharing Contributions
|
Planco Profit Sharing Contributions Account | |||
|
||||
ESOP balances (from Pre-Distribution ITT Plan)
|
ESOP Account |
- 37 -
- 38 -
- 39 -
- 40 -
- 41 -
- 42 -
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 |
- 43 -
- 44 -
- 45 -
- 46 -
- 47 -
(A) |
Before-Tax Rollover Account.
|
||
(B) |
After-Tax Rollover Account
|
||
(C) |
Basic Before-Tax and Supplemental Before-Tax Investment Accounts.
|
||
(D) |
Before-Tax Catch-Up Contributions Account.
|
||
(E) |
Prior Plan Transfers.
|
||
(F) |
Basic After-Tax Investment Account.
|
||
|
Supplemental After-Tax Investment Account
|
||
(H) |
ESOP Account.
|
||
(I) |
Floor Company Contributions in the Company Contribution Account.
|
||
(J) |
Vested Matching Company Contributions in the Company Contribution Account.
|
||
(K) |
Vested Planco Profit Sharing Contributions, if any.
|
||
(L) |
Reinvested Dividends Attributable to The Hartford Stock Fund.
|
||
(M) |
Roth 401(k) Rollover Account.
|
||
(N) |
Basic Roth 401(k) and Supplemental Roth 401(k) Investment Account.
|
||
(O) |
Roth 401(k) Catch-Up Contributions Account.
|
- 48 -
- 49 -
- 50 -
- 51 -
- 52 -
- 53 -
- 54 -
- 55 -
- 56 -
- 57 -
- 58 -
- 59 -
- 60 -
- 61 -
- 62 -
- 63 -
- 64 -
- 65 -
- 66 -
- 67 -
- 68 -
- 69 -
- 70 -
- 71 -
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 |
- 72 -
[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 are
more comparable to the ratios disclosed by all issuers of fixed income securities.
|
Form S-3 Registration No. | Form S-8 Registration Nos. | |||
333-168532
|
333-105707 | |||
|
333-49170 | |||
|
333-105706 | |||
|
333-34092 | |||
|
033-80665 | |||
|
333-12563 | |||
|
333-125489 | |||
|
333-157372 | |||
|
333-160173 | |||
|
333-168537 |
/s/ Liam E. McGee
|
/s/ Kathryn A. Mikells
|
|||||
|
||||||
/s/ Christopher J. Swift
|
/s/ Michael G. Morris
|
|||||
Christopher J. Swift
|
Michael G. Morris | |||||
|
||||||
/s/ Beth A. Bombara
|
/s/ Thomas A. Renyi
|
|||||
Beth A. Bombara
|
Thomas A. Renyi | |||||
|
||||||
/s/ Robert B. Allardice, III
|
/s/ Charles B. Strauss
|
|||||
Robert B. Allardice, III
|
Charles B. Strauss | |||||
|
||||||
/s/ Trevor Fetter
|
/s/ H. Patrick Swygert
|
|||||
Trevor Fetter
|
H. Patrick Swygert | |||||
|
||||||
/s/ Paul G. Kirk, Jr.
|
||||||
Paul G. Kirk, Jr.
|
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 25, 2011 | /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 25, 2011 | /s/ Christopher J. Swift | |||
Christopher J. Swift | ||||
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 25, 2011 | /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 25, 2011 | /s/ Christopher J. Swift | |||
Christopher J. Swift | ||||
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 any part of the most recently completed fiscal year that was a
TARP period, senior executive officer (SEO) compensation plans and employee compensation
plans and the risks these plans pose to the Company;
|
(ii) |
The compensation committee of the Company has identified and limited during any
part of the most recently completed fiscal year that was a TARP 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 has identified any features of the
employee compensation plans that pose risks to the Company and 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 any
part of the most recently completed fiscal year that was a TARP 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 was 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 to SEOs or any of the next twenty
most highly compensated employees, as defined in the regulations and guidance
established under section 111 of EESA (bonus payments), 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 a SEO or any of the
next five most highly compensated employees during any part of the most recently
completed fiscal year that was a TARP period;
|
(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 any
part of the most recently completed fiscal year that was a TARP period;
|
(ix) |
The Company and its employees have complied with the excessive or luxury
expenditures policy, as defined in the regulations and guidance established under
section 111 of EESA, during any part of the most recently completed fiscal year that was
a TARP period, and any expenses that, pursuant to the 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 any
part of the most recently completed fiscal year that was a TARP period;
|
(xi) |
The Company will disclose the amount, nature, and justification for the offering,
during any part of the most recently completed fiscal year that was a TARP period, 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 was 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 any part of the
most recently completed fiscal year that was a TARP period 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 any part of the most recently completed fiscal year
that was a TARP period;
|
(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 submitted to Treasury a complete and accurate list of the SEOs and
the twenty next most highly compensated employees for its 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. The Company is not required to submit such information with respect to 2011
because it repaid its TARP obligation on March 31, 2010; 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 25, 2011 | /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 any part of the most recently completed fiscal year that was a
TARP period, senior executive officer (SEO) compensation plans and employee compensation
plans and the risks these plans pose to the Company;
|
(ii) |
The compensation committee of the Company has identified and limited during any
part of the most recently completed fiscal year that was a TARP 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 has identified any features of the
employee compensation plans that pose risks to the Company and 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 any
part of the most recently completed fiscal year that was a TARP 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 was 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 to SEOs or any of the next twenty
most highly compensated employees, as defined in the regulations and guidance
established under section 111 of EESA (bonus payments), 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 a SEO or any of the
next five most highly compensated employees during any part of the most recently
completed fiscal year that was a TARP period;
|
(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 any
part of the most recently completed fiscal year that was a TARP period;
|
(ix) |
The Company and its employees have complied with the excessive or luxury
expenditures policy, as defined in the regulations and guidance established under
section 111 of EESA, during any part of the most recently completed fiscal year that was
a TARP period, and any expenses that, pursuant to the 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 any
part of the most recently completed fiscal year that was a TARP period;
|
(xi) |
The Company will disclose the amount, nature, and justification for the offering,
during any part of the most recently completed fiscal year that was a TARP period, 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 was 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 any part of the
most recently completed fiscal year that was a TARP period 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 any part of the most recently completed fiscal year
that was a TARP period;
|
(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 submitted to Treasury a complete and accurate list of the SEOs and
the twenty next most highly compensated employees for its 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. The Company is not required to submit such information with respect to 2011
because it repaid its TARP obligation on March 31, 2010; 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 25, 2011 | /s/ Christopher J. Swift | |||
Christopher J. Swift
Executive Vice President and Chief Financial Officer |
||||