þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3317783 | |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
7.9% Notes due June 15, 2010 | 5.375% Notes due March 15, 2017 | ||
5.25% Notes due October 15, 2011 | 5.95% Notes due October 15, 2036 | ||
4.625% Notes due July 15, 2013 | 6.3% Notes due March 15, 2018 | ||
4.75% Notes due March 1, 2014 | 6.0% Notes due January 15, 2019 | ||
7.3% Debentures due November 1, 2015 | 8.125% Junior Subordinated Debentures due June 15, 2068 | ||
5.5% Notes due October 15, 2016 |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
Item | Description | Page | ||||||
|
||||||||
|
||||||||
1. | 3 | |||||||
|
||||||||
1A. | 22 | |||||||
|
||||||||
1B. | 34 | |||||||
|
||||||||
2. | 34 | |||||||
|
||||||||
3. | 34 | |||||||
|
||||||||
4. | 36 | |||||||
|
||||||||
|
||||||||
5. | 36 | |||||||
|
||||||||
6. | 39 | |||||||
|
||||||||
7. | 40 | |||||||
|
||||||||
7A. | 198 | |||||||
|
||||||||
8. | 198 | |||||||
|
||||||||
9. | 198 | |||||||
|
||||||||
9A. | 199 | |||||||
|
||||||||
9B. | 201 | |||||||
|
||||||||
|
||||||||
10. | 201 | |||||||
|
||||||||
11. | 202 | |||||||
|
||||||||
12. | 202 | |||||||
|
||||||||
13. | 204 | |||||||
|
||||||||
14. | 204 | |||||||
|
||||||||
|
||||||||
15. | 204 | |||||||
|
||||||||
II-1 | ||||||||
|
||||||||
II-2 | ||||||||
|
||||||||
Exhibit 10.01 | ||||||||
Exhibit 10.02 | ||||||||
Exhibit 10.03 | ||||||||
Exhibit 10.04 | ||||||||
Exhibit 10.05 | ||||||||
Exhibit 10.06 | ||||||||
Exhibit 10.08 | ||||||||
Exhibit 10.09 | ||||||||
Exhibit 10.10 | ||||||||
Exhibit 10.12 | ||||||||
Exhibit 10.16 | ||||||||
Exhibit 10.17 | ||||||||
Exhibit 12.01 | ||||||||
Exhibit 21.01 | ||||||||
Exhibit 23.01 | ||||||||
Exhibit 24.01 | ||||||||
Exhibit 31.01 | ||||||||
Exhibit 31.02 | ||||||||
Exhibit 32.01 | ||||||||
Exhibit 32.02 |
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
Substantially all of the Companys variable annuity contracts contain a GMDB and a portion of those contracts also
contain one or more living benefits. The Companys maximum exposure disclosed below for death and living benefits are
calculated independently, however, these exposures are substantially overlapping.
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
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
S-1
S-2
S-3
S-4
S-5
S-6
S-7
S-8
S-9
II-1
II-5
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Property And Casualty Loss And Loss Adjustment Expense Liability Development Net of Reinsurance
For the Years Ended December 31, [1]
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$
12,902
$
12,476
$
12,316
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
2,939
2,994
3,272
3,339
3,480
4,415
3,594
3,702
3,727
3,703
4,733
5,019
5,315
5,621
6,781
6,779
6,035
6,122
5,980
6,153
6,437
6,972
8,324
8,591
8,686
7,825
7,755
7,141
7,652
9,195
9,710
10,061
10,075
9,045
8,080
9,567
10,227
10,871
11,181
11,063
9,818
10,376
11,140
11,832
12,015
10,501
11,137
11,961
12,563
11,246
11,856
12,616
11,964
12,432
12,483
12,662
12,472
12,459
13,153
15,965
16,632
16,439
17,159
17,652
18,005
12,569
12,527
12,776
16,176
16,501
17,232
16,838
17,347
17,475
12,584
12,698
15,760
16,768
17,338
17,739
17,240
17,318
12,663
15,609
16,584
17,425
17,876
18,367
17,344
15,542
16,256
17,048
17,927
18,630
18,554
16,076
16,568
17,512
18,686
18,838
16,290
17,031
18,216
18,892
16,799
17,655
18,410
17,440
17,841
17,616
$
4,714
$
5,365
$
6,094
$
6,032
$
5,697
$
2,336
$
1,153
$
455
$
(129
)
$
(226
)
[1]
For the Years Ended December 31, [1]
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$
12,476
$
12,316
$
12,860
$
13,141
$
16,218
$
16,191
$
16,863
$
17,604
$
18,231
$
18,347
3,706
3,871
4,176
3,950
5,497
5,138
5,403
4,387
3,922
3,586
$
16,182
$
16,187
$
17,036
$
17,091
$
21,715
$
21,329
$
22,266
$
21,991
$
22,153
$
21,933
$
17,841
$
18,410
$
18,892
$
18,838
$
18,554
$
17,344
$
17,318
$
17,475
$
18,005
5,206
5,342
5,526
5,142
5,083
4,979
5,299
3,891
3,645
$
23,047
$
23,752
$
24,418
$
23,980
$
23,637
$
22,323
$
22,617
$
21,366
$
21,650
$
6,865
$
7,565
$
7,382
$
6,889
$
1,922
$
994
$
351
$
(625
)
$
(503
)
[1]
Table of Contents
Calendar Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Total
$
(240
)
$
(93
)
$
15
$
79
$
2,879
$
534
$
214
$
509
$
641
$
176
$
4,714
89
40
92
32
113
98
(46
)
(17
)
10
411
88
146
73
177
152
1
80
8
725
(24
)
39
(232
)
193
38
55
12
81
(199
)
(56
)
180
36
(5
)
2
(42
)
(122
)
(237
)
(31
)
(126
)
(21
)
(537
)
(352
)
(108
)
(226
)
(83
)
(769
)
(103
)
(214
)
(133
)
(450
)
(140
)
(148
)
(288
)
(49
)
(49
)
$
(240
)
$
(4
)
$
143
$
293
$
2,824
$
414
$
248
$
296
$
48
$
(226
)
$
3,796
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
1
st
Qtr.
2
nd
Qtr.
3
rd
Qtr.
4
th
Qtr.
$
84.93
$
79.13
$
67.74
$
38.11
66.05
64.57
40.99
4.95
0.53
0.53
0.53
0.32
$
97.75
$
106.02
$
99.87
$
98.56
90.77
95.82
85.44
86.78
0.50
0.50
0.50
0.53
Table of Contents
For the Years Ended
Company/Index
2004
2005
2006
2007
2008
19.50
%
25.83
%
10.82
%
(4.55
%)
(79.99
%)
10.88
%
4.91
%
15.79
%
5.49
%
(37.00
%)
7.25
%
14.10
%
10.91
%
(6.31
%)
(58.14
%)
Base
Period
For the Years Ended
Company/Index
2003
2004
2005
2006
2007
2008
$
100
$
119.50
$
150.36
$
166.63
$
159.04
$
31.82
$
100
$
110.88
$
116.33
$
134.70
$
142.10
$
89.53
$
100
$
107.25
$
122.37
$
135.73
$
127.17
$
53.23
Table of Contents
Approximate Dollar
Total Number of
Value of Shares that
Shares Purchased as
May Yet Be
Total Number
Part of Publicly
Purchased Under
of Shares
Average Price
Announced Plans or
the Plans or
Period
Purchased
Paid Per Share
Programs
Programs
(in millions)
3,940
[1]
$
28.69
$
807
1,483
[1]
$
10.63
$
807
52
[1]
$
6.61
$
807
5,475
$
23.59
N/A
[1]
Table of Contents
2008
2007
2006
2005
2004
$
9,219
$
25,916
$
26,500
$
27,083
$
22,708
(2,749
)
2,949
2,745
2,274
2,138
(2,749
)
2,949
2,745
2,274
2,115
$
287,583
$
360,361
$
326,544
$
285,412
$
259,585
5,823
3,142
3,504
4,048
4,308
9,268
19,204
18,876
15,325
14,238
$
(8.99
)
$
9.32
$
8.89
$
7.63
$
7.32
(8.99
)
9.32
8.89
7.63
7.24
(8.99
)
9.24
8.69
7.44
7.20
(8.99
)
9.24
8.69
7.44
7.12
1.91
2.03
1.70
1.17
1.13
$
50,126
$
55,531
$
43,732
$
32,705
$
28,068
90.7
90.8
89.3
93.2
95.3
[1]
[2]
[3]
[4]
[5]
Table of Contents
(Dollar amounts in millions, except for per share data, unless otherwise stated)
41
41
62
70
80
83
85
87
89
91
93
94
123
124
130
136
140
145
149
156
166
177
187
198
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
304
$
2
$
61
$
86
$
453
$
$
453
23
4
6
11
44
44
1,615
281
252
142
2,290
2,290
1,108
938
149
2,195
2,195
11
1,854
2,226
2,241
6,332
6,332
36
145
814
1,256
2,251
2,251
773
773
773
210
210
210
562
562
1,066
1,066
3
2
10
3
18
2,153
2,171
1,992
3,396
4,307
4,871
14,566
3,781
18,347
60
176
437
2,110
2,783
803
3,586
$
2,052
$
3,572
$
4,744
$
6,981
$
17,349
$
4,584
$
21,933
[1]
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Individual Variable Annuities -
Individual Variable Annuities -
U.S.
Japan
Individual Life
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2008
2007
2008
2007
2008
2007
$
4,844
$
4,982
$
1,834
$
1,760
$
2,931
$
2,309
$
436
$
390
$
19
$
8
$
36
$
20
$
109
$
124
$
$
$
1,299
$
816
$
867
$
527
$
229
$
42
$
40
$
19
Table of Contents
Impact on Earnings for DAC
Assumption
Impact to EGPs
Amortization
Benefit
Charge
Charge
Benefit
Charge
Benefit
Table of Contents
Death and
DAC
Unearned
Income
Sales
and
Revenue
Benefit
Inducement
Segment After-tax (charge) benefit
PVFP
Reserves
Reserves [1]
Assets
Total [2]
$
(648
)
$
18
$
(75
)
$
(27
)
$
(732
)
(49
)
(49
)
(29
)
(12
)
(3
)
(44
)
(23
)
(1
)
(90
)
(2
)
(116
)
9
9
$
(740
)
$
5
$
(168
)
$
(29
)
$
(932
)
[1]
[2]
Table of Contents
Death and
DAC
Unearned
Income
Sales
and
Revenue
Benefit
Inducement
Segment After-tax (charge) benefit
PVFP
Reserves
Reserves [1]
Assets
Total [2]
$
180
$
(5
)
$
(4
)
$
9
$
180
(9
)
(9
)
1
1
24
(8
)
16
16
6
22
3
3
$
215
$
(13
)
$
2
$
9
$
213
[1]
[2]
Effect on EGP-related
(Increasing separate account returns and decreasing lapse rates generally result in benefits. Decreasing
balances if unlocked
separate account returns and increasing lapse rates generally result in charges.)
(after-tax) [1]
$
20 $40
[3]
$
10 $25
[2]
$
90 $120
$
50 $80
[2]
Effect on EGP-related
(Increasing separate account returns and decreasing lapse rates generally result in benefits. Decreasing
balances if unlocked
separate account returns and increasing lapse rates generally result in charges.)
(after-tax) [1]
$
5 $20
[4] [5]
$
1 $10
[2]
$
50 $70
$
10 $25
[2]
[1]
[2]
Table of Contents
[3]
[4]
[5]
Table of Contents
Table of Contents
Table of Contents
Quoted Prices in
Active Markets
Significant
Significant
for Identical
Observable
Unobservable
Assets
Inputs
Inputs
(Level 1)
(Level 2)
(Level 3)
Total
$
3,787
$
50,252
$
2,976
$
57,015
3,962
3,962
180
4,693
4,873
720
720
7,025
2,997
10,022
$
10,812
$
53,429
$
12,351
$
76,592
14.1
%
69.8
%
16.1
%
100.0
%
[1]
[2]
Table of Contents
% of Total
Fair Value
Fair Value
$
1,643
13.3
%
2,131
17.3
%
560
4.5
%
4,641
37.6
%
1,755
14.2
%
802
6.5
%
337
2.7
%
482
3.9
%
$
12,351
100.0
%
Notional Value
Fair Value
$
4,502
$
26,011
1,108
23,915
2,330
$
54,428
$
3,438
Notional Value
Fair Value
$
3,629
$
(358
)
3,152
49
15,735
2,759
1,399
(120
)
$
23,915
$
2,330
Table of Contents
Table of Contents
Table of Contents
Segment Goodwill
Goodwill in Corporate
Total
$
159
$
92
$
251
79
69
148
32
32
224
118
342
138
138
119
119
30
30
$
611
$
449
$
1,060
[1]
Segment Goodwill
Goodwill in Corporate
Total
$
422
$
308
$
730
159
92
251
69
69
32
32
224
118
342
138
138
15
15
119
119
30
30
$
954
$
772
$
1,726
Table of Contents
Table of Contents
For the Years Ended December 31,
Operating Summary
2008
2007
2006
$
15,503
$
15,619
$
15,023
5,135
5,436
4,739
4,335
5,214
4,691
(10,340
)
145
1,824
(6,005
)
5,359
6,515
504
496
474
(5,918
)
(994
)
(251
)
9,219
25,916
26,500
14,088
13,919
13,218
(10,340
)
145
1,824
4,271
2,989
3,558
3,993
3,894
3,252
343
263
277
745
710
701
769
13,810
21,911
22,898
(4,591
)
4,005
3,602
(1,842
)
1,056
857
$
(2,749
)
$
2,949
$
2,745
[1]
Net Income (Loss) by Operation and Life Segment
2008
2007
2006
$
(1,399
)
$
812
$
536
(43
)
182
150
(1,442
)
994
686
(157
)
61
101
(6
)
315
298
(163
)
376
399
(325
)
223
231
(502
)
17
78
(11
)
(52
)
47
(2,443
)
1,558
1,441
280
322
429
437
508
422
169
157
214
71
(18
)
46
957
969
1,111
31
52
53
1,056
1,439
1,225
(1,669
)
(160
)
(17
)
(219
)
(248
)
(222
)
33
(575
)
(596
)
189
1,477
1,554
(97
)
30
(35
)
92
1,507
1,519
(398
)
(116
)
(215
)
$
(2,749
)
$
2,949
$
2,745
[1]
Table of Contents
Table of Contents
Table of Contents
2008
2007
2006
$
(8.99
)
$
9.32
$
8.89
$
(8.99
)
$
9.24
$
8.69
306.7
316.3
308.8
306.7
319.1
315.9
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
As of and for the years ended December 31,
Product/Key Indicator Information
2008
2007
2006
$
119,071
$
114,365
$
105,314
(6,235
)
(2,733
)
(3,150
)
(38,258
)
7,439
12,201
$
74,578
$
119,071
$
114,365
$
48,383
$
38,536
$
29,063
2,840
5,545
5,659
(20,191
)
4,302
3,814
$
31,032
$
48,383
$
38,536
$
4,802
$
7,284
$
6,637
195,464
179,483
164,227
$
27,094
$
23,575
$
19,317
2,418
1,669
2,545
(7,314
)
1,850
1,713
$
22,198
$
27,094
$
23,575
$
1,454
$
1,140
$
947
(446
)
103
59
18,725
(4,895
)
211
134
$
14,838
$
1,454
$
1,140
$
37,637
$
31,343
$
26,104
714
4,525
4,393
(10,921
)
(608
)
1,195
7,065
2,377
(349
)
$
34,495
$
37,637
$
31,343
903
1,468
1,418
1,220
1,477
1,310
[1]
Table of Contents
For the years ended December 31,
2008
2007
2006
73.1
bps
173.5
bps
153.0
bps
89.6
bps
130.3
bps
123.9
bps
92.3
bps
161.9
bps
152.0
bps
20.5
bps
100.6
bps
84.8
bps
Table of Contents
For the years ended December 31,
Group Benefits
2008
2007
2006
$
4,391
$
4,301
$
4,149
820
770
861
89
%
87
%
87
%
For the years ended December 31,
2008
2007
2006
21.0
bps
17.9
bps
17.2
bps
218.5
%
25.5
%
65.3
%
65.2
%
47.9
%
52.4
%
$
359
$
298
$
251
$
3,144
$
3,109
$
3,002
71.6
%
72.1
%
72.3
%
27.0
%
27.9
%
27.6
%
49.4
bps
48.4
bps
49.1
bps
109.3
%
35.3
%
30.2
%
77.8
%
40.0
%
40.7
%
14.1
bps
14.1
bps
14.7
bps
[1]
[2]
[3]
Table of Contents
Table of Contents
Ratios
2008
2007
2006
(133.5
) bps
58.9
bps
39.9
bps
(96.5
) bps
(13.3
) bps
(7.4
) bps
(68.0
) bps
15.6
bps
(6.0
) bps
31.0
bps
56.6
bps
53.3
bps
(4.7
%)
16.0
%
13.3
%
(13.1
%)
(1.3
%)
(1.5
%)
(4.7
%)
1.4
%
(1.6
%)
13.1
%
15.9
%
16.4
%
(47.9
) bps
22.9
bps
44.7
bps
(51.5
) bps
(10.5
) bps
(3.1
) bps
(15.0
) bps
(3.4
) bps
8.9
bps
18.6
bps
36.8
bps
38.9
bps
(0.1
%)
6.7
%
6.6
%
(7.3
%)
(0.4
%)
(0.1
%)
7.2
%
7.1
%
6.7
%
(72.9
) bps
73.4
bps
87.7
bps
(65.1
) bps
(8.1
) bps
(5.6
) bps
(31.9
) bps
6.4
bps
18.5
bps
24.1
bps
75.1
bps
74.8
bps
(83.3
) bps
3.0
bps
16.6
bps
(85.0
) bps
(21.5
) bps
(5.1
) bps
bps
0.2
bps
bps
1.7
bps
24.3
bps
21.7
bps
[1]
[2]
[3]
Table of Contents
Life Operating Summary
2008
2007
2006
$
5,165
$
5,123
$
4,590
5,118
5,420
4,726
3,045
3,497
3,184
(10,340
)
145
1,824
(7,295
)
3,642
5,008
(4,138
)
(819
)
(260
)
(1,150
)
13,366
14,064
7,381
7,002
6,216
(10,340
)
145
1,824
2,176
884
1,452
422
3,300
3,230
2,708
2,939
11,261
12,200
(4,089
)
2,105
1,864
(1,646
)
547
423
$
(2,443
)
$
1,558
$
1,441
[1]
[2]
[3]
Table of Contents
Table of Contents
Individual
Group
Retail
Life
Retirement
Benefits
International
Institutional
Other
Total
$
(31
)
$
(20
)
$
(38
)
$
(3
)
$
(20
)
$
167
$
(32
)
$
23
(474
)
(245
)
(243
)
(513
)
(114
)
(740
)
(95
)
(2,424
)
64
64
(6
)
(2
)
(4
)
(1
)
(28
)
6
(35
)
(616
)
(34
)
(650
)
(631
)
(82
)
(713
)
40
34
74
(591
)
(48
)
(639
)
(192
)
15
13
(23
)
(242
)
(216
)
168
(477
)
(1,910
)
(252
)
(272
)
(540
)
(422
)
(789
)
47
(4,138
)
(859
)
(89
)
(101
)
(188
)
(133
)
(277
)
13
(1,634
)
$
(1,051
)
$
(163
)
$
(171
)
$
(352
)
$
(289
)
$
(512
)
$
34
$
(2,504
)
Individual
Group
Retail
Life
Retirement
Benefits
International
Institutional
Other
Total
$
17
$
7
$
(11
)
$
8
$
$
13
$
11
$
45
(87
)
(21
)
(22
)
(19
)
(48
)
(148
)
(13
)
(358
)
18
18
1
(68
)
3
24
(40
)
(286
)
(286
)
(12
)
(12
)
(298
)
(298
)
(14
)
(14
)
(8
)
(19
)
(18
)
(56
)
(57
)
(186
)
(381
)
(28
)
(41
)
(30
)
(116
)
(188
)
(35
)
(819
)
(212
)
(13
)
(13
)
(12
)
(52
)
(67
)
(4
)
(373
)
$
(169
)
$
(15
)
$
(28
)
$
(18
)
$
(64
)
$
(121
)
$
(31
)
$
(446
)
Table of Contents
Individual
Group
Retail
Life
Retirement
Benefits
International
Institutional
Other
Total
$
(44
)
$
(1
)
$
(9
)
$
(6
)
$
(4
)
$
23
$
(1
)
$
(42
)
(6
)
(18
)
(6
)
(3
)
(2
)
(32
)
(9
)
(76
)
(17
)
(17
)
3
(1
)
1
(63
)
1
11
(48
)
(26
)
(26
)
(14
)
(14
)
(40
)
(40
)
(5
)
(1
)
(5
)
(2
)
(29
)
5
(37
)
(87
)
(25
)
(16
)
(13
)
(88
)
(37
)
6
(260
)
3
(8
)
(9
)
(5
)
(41
)
(13
)
1
(72
)
$
(90
)
$
(17
)
$
(7
)
$
(8
)
$
(47
)
$
(24
)
$
5
$
(188
)
Table of Contents
Operating Summary
2008
2007
2006
$
2,757
$
3,117
$
2,695
(4
)
(62
)
(86
)
747
801
839
(1,910
)
(381
)
(87
)
1,590
3,475
3,361
1,008
820
819
1,187
1,221
994
1,344
406
973
422
3,961
2,447
2,786
(2,371
)
1,028
575
(972
)
216
39
$
(1,399
)
$
812
$
536
Assets Under Management
2008
2007
2006
$
74,578
$
119,071
$
114,365
11,278
10,243
9,937
398
677
525
86,254
129,991
124,827
31,032
48,383
38,536
1,678
2,113
1,489
32,710
50,496
40,025
$
118,964
$
180,487
$
164,852
[1]
[2]
[3]
Table of Contents
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
899
$
870
$
885
(71
)
(62
)
(53
)
338
359
324
(252
)
(28
)
(25
)
914
1,139
1,131
627
562
497
202
193
179
169
121
243
998
876
919
(84
)
263
212
(41
)
81
62
$
(43
)
$
182
$
150
Account Values
2008
2007
2006
$
4,802
$
7,284
$
6,637
4,727
4,388
4,035
653
677
699
$
10,182
$
12,349
$
11,371
$
78,853
$
77,566
$
73,770
52,356
48,636
45,230
63,334
52,298
44,175
921
983
1,052
$
195,464
$
179,483
$
164,227
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
334
$
238
$
193
4
4
19
342
355
326
(272
)
(41
)
(16
)
408
556
522
271
249
250
335
170
136
91
58
(4
)
697
477
382
(289
)
79
140
(132
)
18
39
$
(157
)
$
61
$
101
Assets Under Management
2008
2007
2006
$
10,242
$
12,363
$
11,540
11,956
14,731
12,035
22,198
27,094
23,575
99
26
14,739
1,428
1,140
14,838
1,454
1,140
$
37,036
$
28,548
$
24,715
$
5,122
$
$
[1]
[2]
[3]
[4]
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
4,391
$
4,301
$
4,149
419
465
415
(540
)
(30
)
(13
)
4,270
4,736
4,551
3,144
3,109
3,002
1,128
1,131
1,101
57
62
41
4,329
4,302
4,144
(59
)
434
407
(53
)
119
109
$
(6
)
$
315
$
298
Earned Premiums and Other
2008
2007
2006
$
4,355
$
4,239
$
4,100
1
27
12
35
35
37
$
4,391
$
4,301
$
4,149
71.6
%
72.1
%
72.3
%
76.3
%
77.3
%
77.2
%
27.0
%
27.9
%
27.6
%
22.4
%
23.0
%
22.9
%
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
881
$
843
$
709
(9
)
(11
)
(8
)
167
131
123
(422
)
(116
)
(88
)
617
847
736
270
32
3
321
246
208
496
214
167
1,087
492
378
(470
)
355
358
(145
)
132
127
$
(325
)
$
223
$
231
Assets Under Management Japan
2008
2007
2006
$
29,726
$
35,793
$
29,653
4,769
1,844
1,690
$
34,495
$
37,637
$
31,343
[1]
[2]
[3]
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
152
$
251
$
125
889
987
607
1,004
1,241
1,003
(789
)
(188
)
(37
)
1,256
2,291
1,698
1,907
2,074
1,484
120
185
78
19
23
32
2,046
2,282
1,594
(790
)
9
104
(288
)
(8
)
26
$
(502
)
$
17
$
78
Assets Under Management
2008
2007
2006
$
24,081
$
25,103
$
22,214
32,459
32,792
26,131
2,578
3,581
2,567
$
59,118
$
61,476
$
50,912
[1]
[2]
[3]
Table of Contents
Table of Contents
Operating Summary
2008
2007
2006
$
60
$
67
$
81
28
145
154
(10,340
)
145
1,824
(10,312
)
290
1,978
47
(35
)
6
(10,205
)
322
2,065
154
156
161
(10,340
)
145
1,824
7
84
12
(10,179
)
385
1,997
(26
)
(63
)
68
(15
)
(11
)
21
$
(11
)
$
(52
)
$
47
[1]
Table of Contents
Written premiums [1]
2008
2007
2006
$
3,925
$
3,947
$
3,877
2,696
2,747
2,728
2,242
2,326
2,515
1,361
1,415
1,538
7
5
4
$
10,231
$
10,440
$
10,662
$
3,926
$
3,889
$
3,760
2,724
2,736
2,652
2,299
2,420
2,523
1,382
1,446
1,493
7
5
5
$
10,338
$
10,496
$
10,433
[1]
Table of Contents
Table of Contents
2008
2007
2006
$
1,129
$
984
$
1,240
543
177
199
(226
)
48
296
812
759
745
31
52
53
1,253
1,687
1,486
(222
)
(249
)
(223
)
(1,877
)
(172
)
9
(3
)
2,077
2,070
95
(570
)
(551
)
$
92
$
1,507
$
1,519
[1]
2008
2007
2006
$
180
$
159
$
205
(448
)
(121
)
(164
)
(1,533
)
(125
)
(45
)
2
15
4
(78
)
(100
)
9
$
(1,877
)
$
(172
)
$
9
Table of Contents
Table of Contents
Gross gains (losses) on sales, net
Impairments
Other, net
Table of Contents
Ongoing Operations earned premium growth
2008
2007
2006
1
%
3
%
4
%
3
%
10
%
(5
%)
(4
%)
4
%
(4
%)
(3
%)
(12
%)
(2
%)
1
%
3
%
88.9
90.5
88.0
5.3
1.7
1.9
(0.2
)
0.1
(0.7
)
5.0
1.8
1.2
(3.2
)
(1.5
)
0.1
90.7
90.8
89.3
$
(97
)
$
30
$
(35
)
3.2
%
4.4
%
4.1
%
$
29,797
$
29,760
$
27,324
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
2,042
$
3,470
$
4,697
$
6,873
$
17,082
$
5,071
$
22,153
81
177
414
2,316
2,988
934
3,922
1,961
3,293
4,283
4,557
14,094
4,137
18,231
2,542
1,447
1,460
941
6,390
6,390
258
122
116
47
543
543
(51
)
(89
)
(134
)
(81
)
(355
)
129
(226
)
2,749
1,480
1,442
907
6,578
129
6,707
(2,718
)
(1,377
)
(1,418
)
(593
)
(6,106
)
(485
)
(6,591
)
1,992
3,396
4,307
4,871
14,566
3,781
18,347
60
176
437
2,110
2,783
803
3,586
$
2,052
$
3,572
$
4,744
$
6,981
$
17,349
$
4,584
$
21,933
$
3,926
$
2,724
$
2,299
$
1,382
$
10,331
$
7 $
10,338
69.2
50.5
61.6
42.8
59.1
70.0
54.3
62.7
65.6
63.7
(1.3
)
(3.3
)
(5.9
)
(5.8
)
(3.4
)
[1]
[2]
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
260
$
124
$
130
$
58
$
572
$
$
572
2
2
14
11
29
29
258
122
116
47
543
543
10
7
3
20
20
1
1
1
$
269
$
129
$
119
$
47
$
564
$
$
564
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
$
(92
)
$
(64
)
$
$
(156
)
$
$
(156
)
(15
)
(90
)
(105
)
(105
)
(75
)
(75
)
(75
)
(46
)
(46
)
(46
)
(27
)
(27
)
(27
)
(24
)
(24
)
(24
)
(10
)
(10
)
(10
)
17
50
67
67
25
25
25
53
53
50
50
19
1
(3
)
(21
)
(4
)
26
22
$
(51
)
$
(89
)
$
(134
)
$
(81
)
$
(355
)
$
129
$
(226
)
[1]
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
1,959
$
3,421
$
4,536
$
6,359
$
16,275
$
5,716
$
21,991
134
214
479
2,260
3,087
1,300
4,387
1,825
3,207
4,057
4,099
13,188
4,416
17,604
2,576
1,594
1,561
961
6,692
6,692
125
28
15
9
177
177
(4
)
(209
)
(16
)
84
(145
)
193
48
2,697
1,413
1,560
1,054
6,724
193
6,917
(2,503
)
(1,222
)
(1,248
)
(720
)
(5,693
)
(597
)
(6,290
)
(58
)
(105
)
(86
)
124
(125
)
125
1,961
3,293
4,283
4,557
14,094
4,137
18,231
81
177
414
2,316
2,988
934
3,922
$
2,042
$
3,470
$
4,697
$
6,873
$
17,082
$
5,071
$
22,153
$
3,889
$
2,736
$
2,420
$
1,446
$
10,491
$
5
$
10,496
64.4
44.7
51.5
49.8
54.3
69.3
51.6
64.5
73.0
64.1
(0.1
)
(7.6
)
(0.7
)
5.8
(1.4
)
[1]
[2]
[3]
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
$
(151
)
$
$
$
(151
)
$
$
(151
)
(49
)
(49
)
(49
)
(33
)
(33
)
(33
)
(30
)
(30
)
(30
)
(22
)
(22
)
(22
)
(18
)
(18
)
(18
)
(16
)
(16
)
(16
)
(15
)
(15
)
(15
)
47
47
47
40
40
40
14
25
39
39
34
34
34
99
99
25
25
12
5
(3
)
15
29
69
98
$
(4
)
$
(209
)
$
(16
)
$
84
$
(145
)
$
193
$
48
[1]
Table of Contents
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
2,152
$
3,023
$
4,185
$
6,060
$
15,420
$
6,846
$
22,266
385
192
565
2,306
3,448
1,955
5,403
1,767
2,831
3,620
3,754
11,972
4,891
16,863
2,396
1,509
1,577
1,025
6,507
6,507
120
34
36
9
199
199
(38
)
(75
)
13
36
(64
)
360
296
2,478
1,468
1,626
1,070
6,642
360
7,002
(2,309
)
(1,092
)
(1,189
)
(725
)
(5,315
)
(835
)
(6,150
)
(111
)
(111
)
(111
)
1,825
3,207
4,057
4,099
13,188
4,416
17,604
134
214
479
2,260
3,087
1,300
4,387
$
1,959
$
3,421
$
4,536
$
6,359
$
16,275
$
5,716
$
21,991
$
3,760
$
2,652
$
2,523
$
1,493
$
10,428
$
5
$
10,433
61.4
41.1
47.3
48.4
51.0
65.9
55.3
64.6
71.5
63.7
(1.0
)
(2.8
)
0.5
2.5
(0.6
)
[1]
[2]
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
$
(23
)
$
(22
)
$
(3
)
$
(35
)
$
(83
)
$
$
(83
)
(31
)
(31
)
(31
)
30
30
30
20
20
20
(33
)
(25
)
(58
)
(58
)
(22
)
(22
)
(22
)
10
35
45
45
20
20
20
243
243
43
43
8
(20
)
11
16
15
74
89
$
(38
)
$
(75
)
$
13
$
36
$
(64
)
$
360
$
296
[1]
Table of Contents
Table of Contents
Personal
Small
Middle
Specialty
Ongoing
Other
Total
Lines
Commercial
Market
Commercial
Operations
Operations
P&C
(5.2) (0.2
)
(6.5) (1.0
)
(3.1) 1.6
(1.8) 3.1
(2.5) 0.3
3.1 7.4
(1.2) 1.5
[1]
[2]
Table of Contents
% of layer(s)
Coverage
Treaty term
reinsured
Per occurrence limit
Retention
1/1/2009 to 1/1/2010
Varies by layer, but averages 90% across all layers
Aggregates to $750 across all layers
$250
1/1/2009 to 1/1/2010
95%
Aggregates to $280 across all layers
20
6/1/2008 to 6/1/2009
90%
$300
1,000
6/1/2008 to
6/1/2009
90%
382[1]
83
7/1/2008 to
7/1/2009
95%
280
20
[1]
Table of Contents
Bond amount issued by
Foundation Re or
Covered perils
Treaty term
Covered losses
Foundation Re II
2/17/2006 to 2/24/2010
26% of $400 in losses in excess of an
index loss trigger equating to approximately $1.3 billion in Hartford losses
$105
11/17/2006 to 11/26/2010
45% of $400 in losses in excess of an index loss
trigger equating to approximately $1.85 billion in Hartford losses
180
Table of Contents
Hurricane
Earthquake
Net of
Expected
Net of Expected
Before
Reinsurance
Before
Reinsurance
Reinsurance
Recoveries
Reinsurance
Recoveries
$
1,891
$
671
$
953
$
316
7
%
3
%
Table of Contents
Reinsurance Recoverable
December 31, 2008
December 31, 2007
$
326
$
347
3,492
3,788
3,818
4,135
(379
)
(404
)
$
3,439
$
3,731
Table of Contents
Distribution of gross reinsurance recoverable
December 31, 2008
December 31, 2007
$
3,818
$
4,135
(638
)
(635
)
$
3,180
$
3,500
% of Total
% of Total
$
2,426
76.3
%
$
2,614
74.7
%
52
1.6
%
90
2.6
%
2,478
77.9
%
2,704
77.3
%
181
5.7
%
195
5.6
%
220
6.9
%
231
6.6
%
301
9.5
%
370
10.5
%
$
3,180
100.0
%
$
3,500
100.0
%
[1]
Table of Contents
Operating Summary
2008
2007
2006
$
10,338
$
10,496
$
10,433
1,253
1,687
1,486
504
496
473
(1,877
)
(172
)
9
10,218
12,507
12,401
6,390
6,692
6,507
543
177
199
(226
)
48
296
6,707
6,917
7,002
2,095
2,104
2,106
724
716
580
695
693
643
10,221
10,430
10,331
(3
)
2,077
2,070
(95
)
570
551
$
92
$
1,507
$
1,519
$
189
$
1,477
$
1,554
(97
)
30
(35
)
$
92
$
1,507
$
1,519
[1]
[2]
Table of Contents
Ongoing Operations
2008
2007
2006
$
10,224
$
10,435
$
10,658
(107
)
(56
)
230
10,331
10,491
10,428
6,390
6,692
6,507
543
177
199
(355
)
(145
)
(64
)
6,578
6,724
6,642
2,095
2,104
2,106
701
694
569
957
969
1,111
31
52
53
1,056
1,439
1,225
(1,669
)
(160
)
(17
)
(219
)
(248
)
(222
)
156
2,052
2,150
33
(575
)
(596
)
$
189
$
1,477
$
1,554
61.9
63.8
62.4
5.3
1.7
1.9
(3.4
)
(1.4
)
(0.6
)
63.7
64.1
63.7
26.6
26.3
25.6
0.5
0.4
0.1
90.7
90.8
89.3
5.3
1.7
1.9
(0.2
)
0.1
(0.7
)
5.0
1.8
1.2
85.7
89.0
88.1
88.9
90.5
88.0
[1]
Table of Contents
Change in underwriting results
$
(160
)
200
102
302
(366
)
210
146
9
(7
)
2
$
(12
)
Table of Contents
Table of Contents
Change in underwriting results
$
185
(122
)
63
(176
)
(114
)
105
(185
)
22
81
(82
)
2
(125
)
(123
)
$
(142
)
Table of Contents
Table of Contents
Table of Contents
Written Premiums [1]
2008
2007
2006
$
2,813
$
2,750
$
2,580
1,050
1,123
1,100
62
74
197
$
3,925
$
3,947
$
3,877
$
2,829
$
2,848
$
2,856
1,096
1,099
1,021
$
3,925
$
3,947
$
3,877
Earned Premiums [1]
2008
2007
2006
$
2,778
$
2,681
$
2,466
1,080
1,123
1,068
68
85
226
$
3,926
$
3,889
$
3,760
$
2,824
$
2,822
$
2,792
1,102
1,067
968
$
3,926
$
3,889
$
3,760
[1]
The difference between written premiums and earned premiums is attributable to the change in
unearned premium reserve.
Premium Measures
2008
2007
2006
2,323,882
2,349,402
2,276,165
1,455,954
1,481,542
1,440,399
3,779,836
3,830,944
3,716,564
$
364
$
424
$
469
$
106
$
140
$
161
87
%
88
%
87
%
89
%
96
%
94
%
2
%
(1
%)
2
%
5
%
5
%
1
%
(1
%)
(1
%)
3
%
6
%
5
%
Table of Contents
Table of Contents
Table of Contents
Personal Lines - Underwriting Summary
2008
2007
2006
$
3,925
$
3,947
$
3,877
(1
)
58
117
3,926
3,889
3,760
2,542
2,576
2,396
258
125
120
(51
)
(4
)
(38
)
2,749
2,697
2,478
633
617
622
264
253
231
$
280
$
322
$
429
64.8
66.2
63.8
6.6
3.2
3.2
(1.3
)
(0.1
)
(1.0
)
70.0
69.3
65.9
22.8
22.4
22.7
92.9
91.7
88.6
6.6
3.2
3.2
0.2
0.2
(0.4
)
6.8
3.4
2.8
86.1
88.3
85.8
87.6
88.6
86.4
$
135
$
141
$
135
[1]
Represents servicing revenue
Combined Ratios
2008
2007
2006
91.0
96.2
93.6
97.6
79.8
74.0
92.9
91.7
88.6
Change in underwriting results
$
37
59
(25
)
34
(133
)
47
(52
)
(16
)
(11
)
(27
)
$
(42
)
Table of Contents
Change in underwriting results
$
251
(122
)
129
(160
)
(125
)
105
(180
)
(5
)
(34
)
(219
)
5
(22
)
(17
)
$
(107
)
Table of Contents
Table of Contents
Premiums [1]
2008
2007
2006
$
2,696
$
2,747
$
2,728
$
2,724
$
2,736
$
2,652
[1]
Premium Measures
2008
2007
2006
$
446
$
481
$
533
82
%
84
%
87
%
(2
%)
(2
%)
1
%
(2
%)
(1
%)
1
%
1,055,463
1,038,542
991,979
Table of Contents
Small Commercial Underwriting Summary
2008
2007
2006
$
2,696
$
2,747
$
2,728
(28
)
11
76
2,724
2,736
2,652
1,447
1,594
1,509
122
28
34
(89
)
(209
)
(75
)
1,480
1,413
1,468
636
635
634
171
180
128
$
437
$
508
$
422
53.1
58.3
56.9
4.5
1.0
1.3
(3.3
)
(7.6
)
(2.8
)
54.3
51.6
55.3
29.1
29.2
28.5
0.5
0.6
0.2
84.0
81.4
84.1
4.5
1.0
1.3
(0.1
)
0.2
(0.7
)
4.4
1.2
0.6
79.6
80.3
83.5
82.8
88.0
85.6
Table of Contents
Change in underwriting results
$
(12
)
140
7
147
(94
)
(120
)
(67
)
(1
)
9
8
$
(71
)
Table of Contents
Change in underwriting results
$
84
(47
)
(38
)
(85
)
6
134
55
(1
)
(52
)
(53
)
$
86
Table of Contents
Premiums [1]
2008
2007
2006
$
2,242
$
2,326
$
2,515
$
2,299
$
2,420
$
2,523
[1]
Premium Measures
2008
2007
2006
$
420
$
394
$
464
79
%
78
%
82
%
(5
%)
(5
%)
(5
%)
(6
%)
(5
%)
(5
%)
90,478
88,254
86,640
retention
decrease
Table of Contents
Middle Market Underwriting Summary
2008
2007
2006
$
2,242
$
2,326
$
2,515
(57
)
(94
)
(8
)
2,299
2,420
2,523
1,460
1,561
1,577
116
15
36
(134
)
(16
)
13
1,442
1,560
1,626
513
529
544
175
174
139
$
169
$
157
$
214
63.5
64.5
62.6
5.1
0.6
1.5
(5.9
)
(0.7
)
0.5
62.7
64.5
64.6
29.0
28.5
26.7
0.9
0.6
0.2
92.6
93.5
91.5
5.1
0.6
1.5
(0.5
)
(0.1
)
4.6
0.5
1.4
88.1
93.0
90.1
93.4
93.5
89.6
Table of Contents
Change in underwriting results
$
(121
)
78
23
101
(101
)
118
118
16
(1
)
15
$
12
Table of Contents
Change in underwriting results
$
(103
)
61
(45
)
16
21
29
66
15
(35
)
(20
)
$
(57
)
Table of Contents
Table of Contents
Written Premiums [1]
2008
2007
2006
$
50
$
111
$
142
538
534
582
691
689
697
82
81
117
$
1,361
$
1,415
$
1,538
$
87
$
133
$
144
526
543
579
685
685
650
84
85
120
$
1,382
$
1,446
$
1,493
[1]
Table of Contents
Specialty Commercial Underwriting Summary
2008
2007
2006
$
1,361
$
1,415
$
1,538
(21
)
(31
)
45
1,382
1,446
1,493
941
961
1,025
47
9
9
(81
)
84
36
907
1,054
1,070
313
323
306
91
87
71
$
71
$
(18
)
$
46
68.1
66.6
68.4
3.4
0.6
0.6
(5.8
)
5.8
2.5
65.6
73.0
71.5
28.3
27.4
25.6
0.9
0.9
(0.1
)
94.8
101.3
97.0
3.4
0.6
0.6
(1.2
)
0.1
(2.6
)
2.2
0.7
(2.0
)
92.6
100.6
99.0
97.3
94.9
93.9
$
371
$
354
$
337
[1]
Table of Contents
Change in underwriting results
$
(64
)
42
(22
)
20
(38
)
165
147
10
(4
)
6
$
89
Table of Contents
Change in underwriting results
$
(47
)
31
33
64
(48
)
16
(17
)
(16
)
(33
)
$
(64
)
Table of Contents
2008
2007
2006
$
7
$
5
$
4
(1
)
7
5
5
129
193
360
23
22
11
(145
)
(210
)
(366
)
197
248
261
(208
)
(12
)
26
(3
)
(1
)
(1
)
(159
)
25
(80
)
62
5
45
$
(97
)
$
30
$
(35
)
Table of Contents
Table of Contents
Asbestos
Environmental
All Other [1][6]
Total
$
1,998
$
251
$
1,888
$
4,137
68
54
7
129
(182
)
(36
)
(267
)
(485
)
$
1,884 [5]
$
269
$
1,628
$
3,781
$
2,242
$
316
$
1,858
$
4,416
43
28
122
193
(287
)
(93
)
(217
)
(597
)
125
125
$
1,998
$
251
$
1,888
$
4,137
$
2,291
$
360
$
2,240
$
4,891
314
62
(16
)
360
(363
)
(106
)
(366
)
(835
)
$
2,242
$
316
$
1,858
$
4,416
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
As of December 31, 2008
Number of
Total
Gross Environmental Reserves as of September 30, 2008 [1]
Accounts [2]
Reserves
9
$
44
565
100
62
574
206
61
56
323
(16
)
2
$
309
[1]
[2]
[3]
[4]
[5]
Table of Contents
Number of
All Time
Total
All Time
Gross Asbestos Reserves as of June 30, 2008 [1]
Accounts [2]
Paid [3]
Reserves
Ultimate [3]
5
$
194
$
408
$
602
31
968
67
1,035
29
482
168
650
5
74
715
603
1,318
1,090
282
119
401
1,653
444
2,097
4,294
1,809
6,103
1,058
497
1,555
558
370
928
5,910
2,676
8,586
183
(183
)
5
5
$
6,093
$
2,498
$
8,591
[1]
[2]
[3]
[4]
[5]
[6]
Table of Contents
Asbestos [1]
Environmental [1]
Paid
Incurred
Paid
Incurred
Losses & LAE
Losses & LAE
Losses & LAE
Losses & LAE
$
207
$
76
$
32
$
69
61
9
(17
)
19
6
13
287
76
47
65
(105
)
(8
)
(11
)
(11
)
$
182
$
68
$
36
$
54
$
251
$
(289
)
$
90
$
43
112
72
16
31
76
8
394
(141
)
114
43
(107
)
184
(21
)
(15
)
$
287
$
43
$
93
$
28
$
346
$
5
$
45
$
57
199
4
50
(25
)
66
9
3
611
9
104
35
(248
)
305
2
27
$
363
$
314
$
106
$
62
[1]
Table of Contents
Table of Contents
Table of Contents
December 31, 2008
December 31, 2007
Amount
Percent
Amount
Percent
$
45,182
71.3
%
$
52,542
82.6
%
711
1.1
%
1,284
2.0
%
5,684
9.0
%
4,739
7.5
%
2,208
3.5
%
2,061
3.2
%
1,129
1.8
%
1,306
2.1
%
6,937
11.0
%
1,158
1.8
%
1,473
2.3
%
534
0.8
%
63,324
100.0
%
63,624
100.0
%
30,820
36,182
$
94,144
$
99,806
[1]
[2]
[3]
[4]
December 31, 2008
December 31, 2007
Amount
Percent
Amount
Percent
$
273
24.2
%
$
506
38.7
%
259
22.9
%
309
23.7
%
95
8.4
%
72
5.5
%
502
44.5
%
419
32.1
%
$
1,129
100.0
%
$
1,306
100.0
%
[1]
[2]
[3]
[4]
Table of Contents
2008
2007
2006
(Before-tax)
Amount
Yield [1]
Amount
Yield [1]
Amount
Yield [1]
$
2,858
5.2
%
$
3,114
5.9
%
$
2,860
5.8
%
96
7.5
%
86
7.0
%
56
7.3
%
293
5.7
%
255
6.2
%
142
6.3
%
139
6.5
%
135
6.5
%
142
6.9
%
(233
)
(17.2
%)
115
12.0
%
69
12.6
%
(36
)
(133
)
(22
)
(72
)
(75
)
(63
)
3,045
4.8
%
3,497
6.0
%
3,184
5.8
%
(10,340
)
145
1,824
$
(7,295
)
$
3,642
$
5,008
[1]
[2]
[3]
[4]
Table of Contents
(Before-tax)
2008
2007
2006
$
422
$
213
$
215
(399
)
(168
)
(257
)
(2,424
)
(358
)
(76
)
64
18
(17
)
(35
)
(40
)
(48
)
(650
)
(713
)
(286
)
(26
)
74
(12
)
(14
)
(639
)
(298
)
(40
)
(477
)
(186
)
(37
)
$
(4,138
)
$
(819
)
$
(260
)
[1]
[2]
[3]
Table of Contents
December 31, 2008
December 31, 2007
Amount
Percent
Amount
Percent
$
19,775
81.7
%
$
27,205
88.8
%
674
2.8
%
1,208
3.9
%
785
3.2
%
671
2.2
%
1,166
4.8
%
1,260
4.1
%
1,597
6.6
%
284
0.9
%
207
0.9
%
38
0.1
%
$
24,204
100.0
%
$
30,666
100.0
%
[1]
[2]
[3]
Table of Contents
December 31, 2008
December 31, 2007
Amount
Percent
Amount
Percent
$
561
48.1
%
$
728
57.8
%
292
25.1
%
291
23.1
%
61
5.2
%
48
3.8
%
252
21.6
%
193
15.3
%
$
1,166
100.0
%
$
1,260
100.0
%
[1]
[2]
[3]
[4]
2008
2007
2006
(Before-tax)
Amount
Yield [1]
Amount
Yield [1]
Amount
Yield [1]
$
1,418
5.4
%
$
1,511
5.7
%
$
1,386
5.5
%
68
6.5
%
50
6.0
%
35
5.5
%
40
5.5
%
38
6.2
%
16
5.6
%
(212
)
(15.5
%)
140
14.5
%
64
9.9
%
(36
)
(27
)
9
(25
)
(25
)
(24
)
$
1,253
4.4
%
$
1,687
5.9
%
$
1,486
5.5
%
$
921
3.2
%
$
1,246
4.4
%
$
1,107
4.1
%
[1]
[2]
[3]
[4]
Table of Contents
2008
2007
2006
$
180
$
159
$
205
(448
)
(121
)
(164
)
(1,533
)
(125
)
(45
)
2
15
4
(78
)
(100
)
9
$
(1,877
)
$
(172
)
$
9
[1]
Table of Contents
Cash Collateral
December 31, 2008
$
917
838
784
430
$
2,969
December 31, 2008
December 31, 2007
Maximum
Maximum
Total
Total
Exposure
Total
Total
Exposure
Assets
Liabilities [1]
to Loss [2]
Assets
Liabilities [1]
to Loss
$
339
$
69
$
257
$
128
$
47
$
107
151
43
108
309
47
262
249
59
221
377
71
317
$
739
$
171
$
586
$
814
$
165
$
686
[1]
[2]
Table of Contents
December 31, 2008
December 31, 2007
Maximum
Maximum
Exposure
Exposure
Assets
Liabilities
to Loss
Assets
Liabilities
to Loss
$
308
$
$
349
$
26
$
$
37
3
15
76
108
42
40
5
43
43
5
$
353
$
40
$
369
$
145
$
43
$
150
[1]
[2]
[3]
Table of Contents
2008
2007
2006
$
235
$
212
$
1
27
19
7
141
18
61
2
398
37
1,342
67
510
98
103
1,142
36
19
20
8
52
13
$
3,964
$
483
$
121
Table of Contents
Table of Contents
December 31, 2008
December 31, 2007
Initial
Initial
Notional
Premium
Notional
Premium
Amount
Received
Fair Value
Amount
Received
Fair Value
$
1,082
$
(2
)
$
(399
)
$
2,715
$
(203
)
$
(416
)
3,668
(1
)
340
5,166
(1
)
81
$
4,750
$
(3
)
$
(59
)
$
7,881
$
(204
)
$
(335
)
December 31, 2008
December 31, 2007
Percent of
Percent of
Amortized
Total Fair
Amortized
Total Fair
Cost
Fair Value
Value
Cost
Fair Value
Value
$
17,844
$
13,489
20.7
%
$
28,547
$
28,318
35.4
%
14,093
11,646
17.9
%
11,326
10,999
13.7
%
18,742
15,831
24.4
%
16,999
17,030
21.3
%
15,749
12,794
19.6
%
15,093
14,974
18.7
%
9,409
9,568
14.7
%
5,165
5,229
6.5
%
2,401
1,784
2.7
%
3,594
3,505
4.4
%
$
78,238
$
65,112
100.0
%
$
80,724
$
80,055
100.0
%
Table of Contents
December 31, 2008
December 31, 2007
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
$
545
$
$
(124
)
$
421
0.6
%
$
692
$
$
(16
)
$
676
0.9
%
2,865
(735
)
2,130
3.3
%
2,590
(114
)
2,476
3.1
%
942
(188
)
754
1.2
%
957
3
(22
)
938
1.2
%
2,532
7
(891
)
1,648
2.5
%
2,999
10
(343
)
2,666
3.3
%
764
(277
)
487
0.7
%
786
1
(40
)
747
0.9
%
1,215
6
(393
)
828
1.3
%
1,491
19
(98
)
1,412
1.7
%
433
16
449
0.7
%
445
10
455
0.6
%
11,144
10
(4,370
)
6,784
10.4
%
13,196
116
(421
)
12,891
16.1
%
1,763
2
(1,302
)
463
0.7
%
2,243
1
(390
)
1,854
2.3
%
1,396
17
(333
)
1,080
1.7
%
1,741
117
(27
)
1,831
2.3
%
849
46
(8
)
887
1.4
%
1,191
32
(4
)
1,219
1.5
%
413
1
(124
)
290
0.4
%
525
4
(3
)
526
0.7
%
2,138
33
(338
)
1,833
2.8
%
2,508
61
(34
)
2,535
3.2
%
2,480
32
(322
)
2,190
3.3
%
2,194
86
(26
)
2,254
2.8
%
2,335
34
(388
)
1,981
3.0
%
3,011
87
(60
)
3,038
3.8
%
3,435
60
(252
)
3,243
5.0
%
3,008
89
(37
)
3,060
3.8
%
1,669
24
(146
)
1,547
2.4
%
1,595
71
(12
)
1,654
2.1
%
8,422
254
(1,543
)
7,133
10.9
%
11,153
227
(512
)
10,868
13.5
%
3,738
86
(400
)
3,424
5.3
%
3,763
181
(40
)
3,904
4.9
%
508
8
(90
)
426
0.7
%
401
12
(13
)
400
0.5
%
4,859
92
(578
)
4,373
6.7
%
4,500
181
(104
)
4,577
5.7
%
1,475
(444
)
1,031
1.6
%
1,985
27
(104
)
1,908
2.4
%
2,786
100
(65
)
2,821
4.3
%
999
59
(5
)
1,053
1.3
%
5,883
112
(39
)
5,956
9.2
%
836
22
(3
)
855
1.1
%
2,243
42
(7
)
2,278
3.5
%
2,757
26
(20
)
2,763
3.5
%
1,115
8
(229
)
894
1.4
%
1,376
33
(23
)
1,386
1.7
%
10,291
194
(724
)
9,761
15.0
%
11,776
394
(67
)
12,103
15.1
%
6
6
$
78,238
$
1,184
$
(14,310
)
$
65,112
100.0
%
$
80,724
$
1,869
$
(2,538
)
$
80,055
100.0
%
973
13
(196
)
790
2,062
13
(224
)
1,851
581
190
(103
)
668
549
205
(10
)
744
$
79,792
$
1,387
$
(14,609
)
$
66,570
$
83,335
$
2,087
$
(2,772
)
$
82,650
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
Table of Contents
December 31, 2008
December 31, 2007
Percent of
Percent of
Amortized
Total Fair
Amortized
Total Fair
Cost
Fair Value
Value
Cost
Fair Value
Value
$
728
$
628
7.9
%
$
635
$
614
4.8
%
2,067
1,780
22.5
%
4,141
4,008
31.5
%
5,479
4,606
58.1
%
6,755
6,525
51.3
%
1,015
816
10.3
%
1,378
1,283
10.1
%
106
93
1.2
%
306
289
2.3
%
$
9,395
$
7,923
100.0
%
$
13,215
$
12,719
100.0
%
Table of Contents
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
49
$
41
$
162
$
136
$
60
$
43
$
32
$
26
$
34
$
20
$
337
$
266
112
81
349
277
8
7
10
7
479
372
90
71
543
367
154
77
24
16
23
18
834
549
77
69
126
56
18
9
120
50
143
54
484
238
42
27
40
10
38
18
47
26
134
75
301
156
$
370
$
289
$
1,220
$
846
$
278
$
154
$
233
$
125
$
334
$
167
$
2,435
$
1,581
40.5%
47.6%
31.4%
21.9%
19.9%
41.0%
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
$
93
$
92
$
213
$
199
$
113
$
94
$
8
$
7
$
7
$
7
$
434
$
399
133
131
358
324
2
2
2
1
495
458
113
107
796
713
8
5
10
3
33
23
960
851
457
413
67
55
2
3
3
2
8
2
537
475
280
241
71
39
56
47
21
20
25
27
453
374
$
1,076
$
984
$
1,505
$
1,330
$
181
$
151
$
44
$
33
$
73
$
59
$
2,879
$
2,557
32.7%
47.3%
21.1%
19.6%
17.1%
39.8%
[1]
[2]
[3]
[4]
[5]
Table of Contents
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
2,057
$
1,869
$
455
$
299
$
175
$
102
$
36
$
27
$
37
$
25
$
2,760
$
2,322
667
576
85
35
65
22
23
10
840
643
1,142
847
475
152
325
127
55
27
1,997
1,153
2,562
1,498
385
110
469
168
385
140
40
12
3,841
1,928
981
504
438
128
148
45
134
60
5
1
1,706
738
$
7,409
$
5,294
$
1,838
$
724
$
1,182
$
464
$
633
$
264
$
82
$
38
$
11,144
$
6,784
24.4%
16.4%
12.2%
5.3%
4.4%
20.6%
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
2,666
$
2,702
$
495
$
502
$
224
$
227
$
30
$
32
$
46
$
49
$
3,461
$
3,512
709
708
89
87
77
73
23
21
898
889
1,280
1,258
479
454
345
327
85
76
24
21
2,213
2,136
2,975
2,910
415
395
555
526
456
400
24
22
4,425
4,253
1,365
1,342
461
431
180
160
190
165
3
3
2,199
2,101
$
8,995
$
8,920
$
1,939
$
1,869
$
1,381
$
1,313
$
784
$
694
$
97
$
95
$
13,196
$
12,891
23.8%
16.4%
13.6%
6.8%
3.7%
20.6%
[1]
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
$
180
$
59
$
96
$
29
$
79
$
17
$
64
$
7
$
31
$
7
$
450
$
119
129
38
17
6
31
9
11
2
14
3
202
58
94
37
62
15
65
12
10
2
1
232
66
242
76
91
25
81
20
15
2
429
123
139
45
106
19
101
11
12
1
358
76
43
13
22
5
24
3
3
92
21
$
827
$
268
$
394
$
99
$
381
$
72
$
115
$
14
$
46
$
10
$
1,763
$
463
29.7%
21.3%
18.2%
19.4%
57.0%
25.4%
Table of Contents
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
$
378
$
320
$
88
$
73
$
64
$
42
$
13
$
10
$
$
$
543
$
445
170
149
17
15
24
17
8
7
219
188
178
153
63
52
60
42
6
5
307
252
517
436
178
136
149
118
46
34
890
724
107
97
92
80
72
58
13
10
284
245
$
1,350
$
1,155
$
438
$
356
$
369
$
277
$
86
$
66
$
$
$
2,243
$
1,854
31.5%
27.1%
16.7%
10.4%
27.5%
[1]
[2]
[3]
[4]
December 31, 2008
December 31, 2007
AAA
AAA
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
$
440
$
423
$
548
$
606
268
199
360
374
354
245
422
430
165
104
194
205
169
109
217
216
$
1,396
$
1,080
$
1,741
$
1,831
[1]
December 31, 2008
December 31, 2007
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
162
2.5
%
$
120
2.2
%
9
0.2
%
717
11.1
%
674
12.4
%
223
3.4
%
200
3.7
%
487
7.5
%
404
7.5
%
1,495
23.1
%
1,200
22.2
%
1,102
17.0
%
1,104
20.4
%
64
1.0
%
32
0.6
%
333
5.2
%
286
5.3
%
1,886
29.2
%
1,381
25.5
%
$
6,469
100.0
%
$
5,410
100.0
%
[1]
Table of Contents
December 31, 2008
December 31, 2007
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
1,118
17.3
%
$
649
12.0
%
483
7.5
%
524
9.7
%
635
9.8
%
362
6.7
%
1,131
17.5
%
991
18.3
%
1,885
29.1
%
1,929
35.6
%
884
13.7
%
806
14.9
%
333
5.1
%
149
2.8
%
$
6,469
100.0
%
$
5,410
100.0
%
AAA
AA
A
BBB
BB and Below
Total
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
$
135
$
109
$
29
$
27
$
142
$
103
$
209
$
162
$
30
$
20
$
545
$
421
419
367
6
3
108
97
351
248
58
39
942
754
294
159
332
244
138
84
764
487
$
848
$
635
$
367
$
274
$
388
$
284
$
560
$
410
$
88
$
59
$
2,251
$
1,662
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
$
274
$
270
$
27
$
27
$
151
$
148
$
198
$
192
$
42
$
39
$
692
$
676
166
166
19
19
162
162
610
591
957
938
313
297
333
317
140
133
786
747
$
753
$
733
$
379
$
363
$
453
$
443
$
808
$
783
$
42
$
39
$
2,435
$
2,361
[1]
[2]
[3]
Table of Contents
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Items
Cost
Value
Loss
Items
Cost
Value
Loss
1,718
$
16,425
$
14,992
$
(1,433
)
1,581
$
10,879
$
10,445
$
(434
)
972
6,533
5,247
(1,286
)
1,052
11,857
10,954
(903
)
764
7,053
5,873
(1,180
)
813
10,086
9,354
(732
)
741
6,459
4,957
(1,502
)
262
2,756
2,545
(211
)
2,417
25,279
16,071
(9,208
)
1,735
10,563
10,071
(492
)
6,612
$
61,749
$
47,140
$
(14,609
)
5,443
$
46,141
$
43,369
$
(2,772
)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
859
$
11,852
$
6,779
$
(5,073
)
138
$
1,263
$
835
$
(428
)
102
1,141
420
(721
)
12
146
91
(55
)
153
1,966
687
(1,279
)
97
934
218
(716
)
18
240
38
(202
)
6
40
26
(14
)
1,229
$
16,133
$
8,142
$
(7,991
)
156
$
1,449
$
952
$
(497
)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
1,006
$
10,597
$
7,044
$
(3,553
)
116
$
635
$
492
$
(143
)
58
306
150
(156
)
9
74
21
(53
)
27
314
178
(136
)
8
115
68
(47
)
1,099
$
11,332
$
7,440
$
(3,892
)
125
$
709
$
513
$
(196
)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
1,865
$
22,449
$
13,823
$
(8,626
)
254
$
1,898
$
1,327
$
(571
)
160
1,447
570
(877
)
21
220
112
(108
)
180
2,280
865
(1,415
)
105
1,049
286
(763
)
18
240
38
(202
)
6
40
26
(14
)
2,328
$
27,465
$
15,582
$
(11,883
)
281
$
2,158
$
1,465
$
(693
)
Table of Contents
(included in the depressed over 20% table above)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
532
$
7,150
$
2,395
$
(4,755
)
27
$
124
$
47
$
(77
)
37
347
56
(291
)
21
182
26
(156
)
590
$
7,679
$
2,477
$
(5,202
)
27
$
124
$
47
$
(77
)
(included in the depressed over 20% table above)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
129
$
1,305
$
549
$
(756
)
9
$
3
$
1
$
(2
)
4
17
1
(16
)
129
$
1,305
$
549
$
(756
)
13
$
20
$
2
$
(18
)
(included in the depressed over 20% table above)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
661
$
8,455
$
2,944
$
(5,511
)
36
$
127
$
48
$
(79
)
37
347
56
(291
)
4
17
1
(16
)
21
182
26
(156
)
719
$
8,984
$
3,026
$
(5,958
)
40
$
144
$
49
$
(95
)
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Change in Net Economic Value As of December 31,
2008
2007
Basis point shift
- 100
+ 100
- 100
+ 100
$
(173
)
$
114
$
(160
)
$
60
Table of Contents
Change in Fair Value As of December 31,
2008
2007
Basis point shift
- 100
+ 100
- 100
+ 100
$
479
$
(455
)
$
375
$
(364
)
Table of Contents
Table of Contents
Table of Contents
GMWB
Account
% of GMWB
Risk Management Strategy
Duration
Value
Account Value
Life of the product
$
10,225
27
%
Designed to cover the
effective life of the
product
10,464
27
%
Weighted average of 5 years
17,628
46
%
$
38,317
100
%
[1]
Table of Contents
Table of Contents
Change in Fair Value As of December 31,
2008
2007
Basis point shift
- 100
+ 100
- 100
+ 100
$
718
$
(695
)
$
925
$
(894
)
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
2008
2007
2008
2007
11/10/86
N/A
$
2,000
$
2,000
$
374
$
373
8/9/07
8/9/12
1,900
2,000
9/18/02
1/4/10
55
45
$
3,955
$
4,045
$
374
$
373
[1]
Table of Contents
Payments due by period
Less than
1-3
3-5
More than
Total
1 year
years
years
5 years
$
22,421
$
5,940
$
5,021
$
2,929
$
8,531
392,118
27,358
50,147
49,495
265,118
498
143
217
102
36
100
27
73
20,246
468
1,569
1,161
17,048
1,583
73
285
583
642
1,917
1,475
377
41
24
6,571
6,437
83
51
$
445,454
$
41,921
$
57,772
$
54,311
$
291,450
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
Table of Contents
As of December 31,
2008
2007
$
398
$
1,365
5,823
3,142
6,221
4,507
16,788
20,062
(7,520
)
(858
)
$
9,268
$
19,204
$
15,489
$
23,711
67
%
23
%
40
%
19
%
[1]
Table of Contents
Table of Contents
Table of Contents
2008
2007
2006
$
4,192
$
5,991
$
5,638
$
(8,827
)
$
(6,176
)
$
(7,410
)
$
4,274
$
499
$
1,915
$
1,811
$
2,011
$
1,424
Table of Contents
A.M. Best
Fitch
Standard & Poors
Moodys
A+
A+
AA-
A1
A+
A
AA-
A1
A+
A
AA-
A1
A+
A
AA-
A1
AA-
AA-
a-
BBB
A-
Baa1
AMB-1
F2
A-2
P-2
bbb
BBB-
BBB
Baa2
a-
BBB
A-
Baa1
A-1+
P-1
a+
A-
AA-
A2
Table of Contents
2008
2007
$
6,047
$
5,786
1,718
1,620
6,012
8,509
$
13,777
$
15,915
Table of Contents
Table of Contents
Table of Contents
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
Hartford, Connecticut
February 11, 2009
Table of Contents
Table of Contents
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))
5,805,393
$
60.46
5,452,015
[1]
23,896
53.81
246,448
5,829,289
$
60.43
5,698,463
[1]
Table of Contents
(a)
(1)
(2)
(3)
Table of Contents
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
Page(s)
F-2
F-3
F-4
F-5
F-5
F-6
F-7-93
S-1
S-2-3
S-4-7
S-8
S-9
S-9
Table of Contents
The Hartford Financial Services Group, Inc.
Hartford, Connecticut
Hartford, Connecticut
February 11, 2009
Table of Contents
For the years ended December 31,
(In millions, except for per share data)
2008
2007
2006
$
15,503
$
15,619
$
15,023
5,135
5,436
4,739
4,335
5,214
4,691
(10,340
)
145
1,824
(6,005
)
5,359
6,515
504
496
474
(5,918
)
(994
)
(251
)
9,219
25,916
26,500
14,088
13,919
13,218
(10,340
)
145
1,824
4,271
2,989
3,558
3,993
3,894
3,252
343
263
277
745
710
701
769
13,810
21,911
22,898
(4,591
)
4,005
3,602
(1,842
)
1,056
857
$
(2,749
)
$
2,949
$
2,745
$
(8.99
)
$
9.32
$
8.89
$
(8.99
)
$
9.24
$
8.69
306.7
316.3
308.8
306.7
319.1
315.9
$
1.91
$
2.03
$
1.70
Table of Contents
As of December 31,
(In millions, except for share data)
2008
2007
$
65,112
$
80,055
30,820
36,182
1,458
2,595
2,208
2,061
6,469
5,410
2,295
2,566
1,723
615
10,022
1,602
120,107
131,086
1,811
2,011
3,604
3,681
6,357
5,150
13,248
11,742
5,239
308
1,060
1,726
1,075
972
4,898
3,739
130,184
199,946
$
287,583
$
360,361
$
21,933
$
22,153
16,747
15,331
53,753
44,190
30,799
36,152
5,379
5,545
398
1,365
5,823
3,142
1,210
809
12,089
12,524
130,184
199,946
278,315
341,157
3
3
7,569
6,627
11,336
14,686
(2,120
)
(1,254
)
(7,520
)
(858
)
9,268
19,204
$
287,583
$
360,361
Table of Contents
For the years ended December 31,
(In millions, except for share data)
2008
2007
2006
$
$
$
3
3
3
6,627
6,321
5,067
727
240
1,020
(36
)
257
190
11
49
44
7,569
6,627
6,321
14,686
12,421
10,207
(3
)
(41
)
14,683
12,380
10,207
(2,749
)
2,949
2,745
(8
)
(590
)
(643
)
(531
)
11,336
14,686
12,421
(1,254
)
(47
)
(42
)
(1,000
)
(1,193
)
152
(18
)
(14
)
(5
)
(2,120
)
(1,254
)
(47
)
(858
)
178
90
(6,662
)
(1,036
)
554
(466
)
(7,520
)
(858
)
178
$
9,268
$
19,204
$
18,876
313,842
323,315
302,152
17,856
(14,682
)
(12,878
)
1,673
3,549
3,358
(254
)
(144
)
(51
)
300,579
313,842
323,315
For the years ended December 31,
(In millions)
2008
2007
2006
$
(2,749
)
$
2,949
$
2,745
(7,127
)
(1,417
)
89
784
94
(124
)
196
146
29
(515
)
141
560
(6,662
)
(1,036
)
554
$
(9,411
)
$
1,913
$
3,299
Table of Contents
For the years ended December 31,
(In millions)
2008
2007
2006
$
(2,749
)
$
2,949
$
2,745
4,271
2,989
3,558
(3,675
)
(4,194
)
(4,092
)
1,026
1,357
975
300
487
1,071
(4
)
128
(34
)
(103
)
306
(287
)
(2,156
)
619
657
5,918
994
251
2,295
(4,701
)
(5,609
)
(2,276
)
4,695
5,594
745
361
794
606
239
(432
)
203
4,192
5,991
5,638
26,097
34,063
35,432
616
468
514
386
1,365
392
438
324
154
(32,708
)
(37,799
)
(40,368
)
(714
)
(1,224
)
(924
)
(1,469
)
(3,454
)
(1,974
)
(678
)
(1,229
)
(809
)
(147
)
(10
)
(36
)
(1,405
)
2,218
970
1,688
(267
)
(65
)
(555
)
(356
)
(389
)
(94
)
(112
)
(282
)
(275
)
(195
)
(8,827
)
(6,176
)
(7,410
)
21,015
32,494
27,450
(25,793
)
(30,443
)
(27,096
)
7,353
(761
)
1,189
1,020
2,670
495
990
(955
)
(300
)
(1,415
)
(37
)
75
(173
)
727
512
445
551
258
(44
)
54
186
147
5
45
10
(1,000
)
(1,193
)
(18
)
(14
)
(5
)
(660
)
(636
)
(460
)
4,274
499
1,915
161
273
8
(200
)
587
151
2,011
1,424
1,273
$
1,811
$
2,011
$
1,424
$
253
$
451
$
179
$
286
$
257
$
274
Table of Contents
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)
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)
Individual Variable
Annuities
Individual Variable
Annuities
U.S.
Japan
Individual Life
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2008
2007
2008
2007
2008
2007
$
4,844
$
4,982
$
1,834
$
1,760
$
2,931
$
2,309
$
436
$
390
$
21
$
8
$
36
$
20
$
109
$
124
$
$
$
1,299
$
816
$
867
$
527
$
229
$
42
$
40
$
19
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Death and
DAC
Unearned
Income
Sales
Segment
and
Revenue
Benefit
Inducement
After-tax (charge) benefit
PVFP
Reserves
Reserves [1]
Assets
Total [2]
$
(648
)
$
18
$
(75
)
$
(27
)
$
(732
)
(49
)
(49
)
(29
)
(12
)
(3
)
(44
)
(23
)
(1
)
(90
)
(2
)
(116
)
9
9
$
(740
)
$
5
$
(168
)
$
(29
)
$
(932
)
[1]
[2]
Death and
DAC
Unearned
Income
Sales
Segment
and
Revenue
Benefit
Inducement
After-tax (charge) benefit
PVFP
Reserves
Reserves [1]
Assets
Total [2]
$
180
$
(5
)
$
(4
)
$
9
$
180
(9
)
(9
)
1
1
24
(8
)
16
16
6
22
3
3
$
215
$
(13
)
$
2
$
9
$
213
[1]
[2]
Table of Contents
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)
Net
Per Share
(In millions, except for per share data)
Income (Loss)
Shares
Amount
$
(2,749
)
8
(2,757
)
306.7
$
(8.99
)
$
(2,757
)
306.7
$
(8.99
)
$
2,949
316.3
$
9.32
2.8
$
2,949
319.1
$
9.24
$
2,745
308.8
$
8.89
3.0
4.1
$
2,745
315.9
$
8.69
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net assumed (ceded) earned premiums under inter-segment
For the years ended December 31,
arrangements and retention
2008
2007
2006
$
(6
)
$
(7
)
$
(21
)
(31
)
(29
)
(31
)
(31
)
(34
)
(45
)
68
70
97
$
$
$
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Revenues by Product Line
2008
2007
2006
$
1,943
$
2,225
$
1,957
(6
)
2
1
618
642
524
198
186
127
2,753
3,055
2,609
828
808
832
3,581
3,863
3,441
290
187
160
48
55
52
338
242
212
2,020
1,920
1,849
2,084
1,926
1,830
287
455
470
4,391
4,301
4,149
4,729
4,543
4,361
876
820
691
(7
)
10
10
3
2
872
832
701
923
1,015
630
118
223
102
1,041
1,238
732
60
67
81
10,283
10,543
9,316
3,045
3,497
3,184
(10,340
)
145
1,824
(7,295
)
3,642
5,008
(4,138
)
(819
)
(260
)
(1,150
)
13,366
14,064
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Revenues by Product Line (continued)
2008
2007
2006
$
2,824
$
2,822
$
2,792
1,102
1,067
968
3,926
3,889
3,760
1,241
1,230
1,156
1,167
1,169
1,143
316
337
353
2,724
2,736
2,652
847
861
883
611
627
639
335
382
408
506
550
593
2,299
2,420
2,523
288
304
341
86
117
119
84
83
83
241
246
272
272
256
231
414
429
419
(3
)
11
28
1,382
1,446
1,493
10,331
10,491
10,428
7
5
5
10,338
10,496
10,433
504
496
473
1,253
1,687
1,486
(1,877
)
(172
)
9
10,218
12,507
12,401
151
43
35
$
9,219
$
25,916
$
26,500
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Net Income (Loss)
2008
2007
2006
$
(1,399
)
$
812
$
536
(43
)
182
150
(1,442
)
994
686
(157
)
61
101
(6
)
315
298
(163
)
376
399
(325
)
223
231
(502
)
17
78
(11
)
(52
)
47
(2,443
)
1,558
1,441
280
322
429
437
508
422
169
157
214
71
(18
)
46
957
969
1,111
31
52
53
1,056
1,439
1,225
(1,669
)
(160
)
(17
)
(219
)
(248
)
(222
)
33
(575
)
(596
)
189
1,477
1,554
(97
)
30
(35
)
92
1,507
1,519
(398
)
(116
)
(215
)
$
(2,749
)
$
2,949
$
2,745
[1]
Amortization of deferred policy acquisition costs and
For the years ended December 31,
present value of future profits
2008
2007
2006
$
1,344
$
406
$
973
169
121
243
1,513
527
1,216
91
58
(4
)
57
62
41
148
120
37
496
214
167
19
23
32
2,176
884
1,452
633
617
622
636
635
634
513
529
544
313
323
306
2,095
2,104
2,106
2,095
2,104
2,106
1
$
4,271
$
2,989
$
3,558
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
Income tax expense (benefit)
2008
2007
2006
$
(972
)
$
216
$
39
(41
)
81
62
(1,013
)
297
101
(132
)
18
39
(53
)
119
109
(185
)
137
148
(145
)
132
127
(288
)
(8
)
26
(15
)
(11
)
21
(1,646
)
547
423
(33
)
575
596
(62
)
(5
)
(45
)
(95
)
570
551
(101
)
(61
)
(117
)
$
(1,842
)
$
1,056
$
857
Geographical Revenue Information
For the years ended December 31,
Revenues
2008
2007
2006
$
18,904
$
24,842
$
23,848
(9,745
)
968
2,536
60
106
116
$
9,219
$
25,916
$
26,500
As of December 31,
Assets
2008
2007
$
97,222
$
136,023
13,770
15,590
110,992
151,613
22,581
27,986
9,036
9,295
31,617
37,281
41,502
41,625
59,853
78,766
3,927
6,891
247,891
316,176
31,484
35,899
5,196
5,942
36,680
41,841
3,012
2,344
$
287,583
$
360,361
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)
As of January 1, 2008
Transition
Adjustment
SFAS 157
Pre-SFAS 157
Gain (Loss)
Fair Value
Fair Value
[Before tax and
Asset (Liability)
Asset (Liability)
DAC amortization]
$
(1,114
)
$
(553
)
$
(561
)
(319
)
(154
)
(165
)
(17
)
(7
)
(10
)
(336
)
(161
)
(175
)
(22
)
2
(24
)
(1,472
)
(712
)
(760
)
238
128
110
$
(1,234
)
$
(584
)
$
(650
)
Transition Adjustment
Gain (Loss)
[Before tax and
DAC amortization]
$
(100
)
4
(194
)
(360
)
$
(650
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Quoted Prices
in Active
Significant
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
Asset (Liability)
Total
(Level 1)
(Level 2)
(Level 3)
$
65,112
$
3,541
$
49,761
$
11,810
30,820
1,634
29,186
1,458
246
671
541
600
13
587
976
1,005
(29
)
1,576
1,018
558
10,022
7,025
2,997
1,302
1,302
126,777
94,804
31,187
786
$
237,067
$
107,250
$
114,820
$
14,997
$
(6,526
)
$
$
$
(6,526
)
(64
)
(64
)
(30
)
(30
)
(41
)
(41
)
(8
)
(8
)
(6,669
)
(6,669
)
941
941
1,123
14
1,109
137
137
(339
)
76
(415
)
1,862
90
1,772
(5
)
(5
)
$
(4,812
)
$
$
90
$
(4,902
)
[1]
[2]
[3]
[4]
[5]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
% of Total
Fair Value
Fair Value
$
1,643
13.3
%
2,131
17.3
%
560
4.5
%
4,641
37.6
%
1,755
14.2
%
802
6.5
%
337
2.7
%
482
3.9
%
$
12,351
100
%
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 (loss)
Total
related to
SFAS 157
realized/unrealized
SFAS 157
financial
Fair value
gains (losses)
Purchases,
Transfers
Fair value
instruments
as of
included in:
issuances,
in and/or
as of
still held at
January 1,
Net income
AOCI
and
(out) of
December 31,
December 31,
2008
[2], [3]
[5]
settlements
Level 3 [7]
2008
2008 [3]
$
17,996
$
(988
)
$
(4,178
)
$
858
$
(1,878
)
$
11,810
$
(811
)
1,339
(77
)
11
64
(796
)
541
(67
)
91
850
941
850
564
1,161
(29
)
1,696
1,043
18
85
34
137
102
(419
)
(471
)
16
491
102
(281
)
(301
)
254
1,625
16
496
102
2,493
1,694
238
962
102
1,302
962
701
(204
)
(26
)
315
786
(73
)
643
3,374
(1,353
)
2,664
3,374
$
(1,433
)
$
(4,967
)
$
$
(126
)
$
$
(6,526
)
$
(4,967
)
(17
)
(56
)
13
(4
)
(64
)
(57
)
(26
)
(2
)
(2
)
(30
)
(26
)
(22
)
25
(1
)
(2
)
25
(24
)
(17
)
(41
)
(17
)
(21
)
13
(8
)
13
(1,517
)
(5,028
)
10
(134
)
(6,669
)
(5,029
)
110
(273
)
(163
)
110
(5
)
5
(5
)
(5
)
5
(552
)
(631
)
(1,377
)
(2,560
)
(631
)
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Total
Fair value
Realized/unrealized
Fair value
as of
gains (losses)
Purchases,
as of
January 1,
included in:
issuances, and
December 31,
2007
Net income
settlements
2007
$
$
50
$
$
50
346
198
48
592
(22
)
127
23
128
$
53
$
(661
)
$
(99
)
$
(707
)
(8
)
(8
)
2
2
4
(28
)
(24
)
1
(22
)
(21
)
57
(694
)
(121
)
(758
)
377
(286
)
(28
)
63
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Notional
Fair
Notional
Fair
Amount
Value
Amount
Value
$
11,437
$
1,302
$
6,579
$
128
10,464
941
12,784
50
8,156
1,723
8,573
592
46,734
(6,526
)
44,852
(707
)
1,672
(64
)
1,048
(8
)
361
(30
)
206
2,768
2
2,188
137
661
18
70
(5
)
19
(5
)
55
(8
)
50
(21
)
$
81,343
$
(2,530
)
$
77,334
$
49
[1]
[2]
[3]
[4]
[5]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2008
2007
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
$
2,208
$
2,435
$
2,061
$
2,061
6,469
5,654
5,410
5,407
$
14,839
14,576
$
15,480
$
15,429
374
374
373
373
5,755
4,539
4,006
4,118
1,205
1,188
804
809
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
4,310
$
4,653
$
4,266
167
139
92
(10,340
)
145
1,824
333
293
158
139
135
142
(445
)
255
133
(72
)
(161
)
(13
)
(5,908
)
5,459
6,602
97
100
87
$
(6,005
)
$
5,359
$
6,515
$
(3,012
)
$
(357
)
$
(113
)
(1,201
)
(43
)
(11
)
(459
)
(109
)
17
(1,246
)
(485
)
(144
)
$
(5,918
)
$
(994
)
$
(251
)
[1]
[2]
$
(13,126
)
$
(669
)
$
1,466
(96
)
(16
)
204
(101
)
3
(4
)
(13,323
)
(682
)
1,666
(5,837
)
(323
)
608
(7,486
)
(359
)
1,058
(359
)
1,058
969
$
(7,127
)
$
(1,417
)
$
89
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Cost or
Gross
Gross
Cost or
Gross
Gross
Amortized
Unrealized
Unrealized
Fair
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
Cost
Gains
Losses
Value
$
8,863
$
13
$
(2,608
)
$
6,268
$
9,515
$
33
$
(633
)
$
8,915
433
16
449
445
10
455
14,303
29
(6,005
)
8,327
17,180
234
(838
)
16,576
849
46
(8
)
887
1,191
32
(4
)
1,219
413
1
(124
)
290
525
4
(3
)
526
31,059
623
(4,501
)
27,181
34,118
1,022
(942
)
34,198
2,786
100
(65
)
2,821
999
59
(5
)
1,053
5,883
112
(39
)
5,956
836
22
(3
)
855
2,243
42
(7
)
2,278
2,757
26
(20
)
2,763
11,406
202
(953
)
10,655
13,152
427
(90
)
13,489
6
6
78,238
1,184
(14,310
)
65,112
80,724
1,869
(2,538
)
80,055
1,554
203
(299
)
1,458
2,611
218
(234
)
2,595
$
79,792
$
1,387
$
(14,609
)
$
66,570
$
83,335
$
2,087
$
(2,772
)
$
82,650
December 31, 2008
Maturity
Amortized Cost
Fair Value
$
2,135
$
2,187
13,840
13,127
14,692
13,357
35,203
26,718
65,870
55,389
12,368
9,723
$
78,238
$
65,112
For the years ended December 31,
2008
2007
2006
$
19,599
$
21,968
$
26,827
511
424
427
(873
)
(276
)
(407
)
$
616
$
468
$
514
38
28
11
(78
)
(15
)
(14
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
Less Than 12 Months
12 Months or More
Total
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Cost
Value
Losses
Cost
Value
Losses
Cost
Value
Losses
$
1,870
$
1,487
$
(383
)
$
6,811
$
4,586
$
(2,225
)
$
8,681
$
6,073
$
(2,608
)
5,986
4,354
(1,632
)
8,110
3,737
(4,373
)
14,096
8,091
(6,005
)
75
68
(7
)
34
33
(1
)
109
101
(8
)
332
235
(97
)
82
55
(27
)
414
290
(124
)
16,604
14,145
(2,459
)
7,028
4,986
(2,042
)
23,632
19,131
(4,501
)
1,263
1,211
(52
)
43
30
(13
)
1,306
1,241
(65
)
4,120
4,083
(37
)
66
64
(2
)
4,186
4,147
(39
)
50
50
250
243
(7
)
300
293
(7
)
5,153
4,640
(513
)
2,578
2,138
(440
)
7,731
6,778
(953
)
35,453
30,273
(5,180
)
25,002
15,872
(9,130
)
60,455
46,145
(14,310
)
1,017
796
(221
)
277
199
(78
)
1,294
995
(299
)
$
36,470
$
31,069
$
(5,401
)
$
25,279
$
16,071
$
(9,208
)
$
61,749
$
47,140
$
(14,609
)
December 31, 2007
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
$
7,811
$
7,222
$
(589
)
$
671
$
627
$
(44
)
$
8,482
$
7,849
$
(633
)
8,138
7,453
(685
)
3,400
3,247
(153
)
11,538
10,700
(838
)
324
321
(3
)
89
88
(1
)
413
409
(4
)
120
118
(2
)
54
53
(1
)
174
171
(3
)
13,849
13,165
(684
)
4,873
4,615
(258
)
18,722
17,780
(942
)
226
221
(5
)
66
66
292
287
(5
)
216
213
(3
)
14
14
230
227
(3
)
56
56
1,033
1,013
(20
)
1,089
1,069
(20
)
3,157
3,081
(76
)
342
328
(14
)
3,499
3,409
(90
)
6
6
6
6
33,903
31,856
(2,047
)
10,542
10,051
(491
)
44,445
41,907
(2,538
)
1,675
1,442
(233
)
21
20
(1
)
1,696
1,462
(234
)
$
35,578
$
33,298
$
(2,280
)
$
10,563
$
10,071
$
(492
)
$
46,141
$
43,369
$
(2,772
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
859
$
11,852
$
6,779
$
(5,073
)
138
$
1,263
$
835
$
(428
)
102
1,141
420
(721
)
12
146
91
(55
)
153
1,966
687
(1,279
)
97
934
218
(716
)
18
240
38
(202
)
6
40
26
(14
)
1,229
$
16,133
$
8,142
$
(7,991
)
156
$
1,449
$
952
$
(497
)
December 31, 2008
December 31, 2007
Cost or
Cost or
Amortized
Fair
Unrealized
Amortized
Fair
Unrealized
Consecutive Months
Items
Cost
Value
Loss
Items
Cost
Value
Loss
1,006
$
10,597
$
7,044
$
(3,553
)
116
$
635
$
492
$
(143
)
58
306
150
(156
)
9
74
21
(53
)
27
314
178
(136
)
8
115
68
(47
)
1,099
$
11,332
$
7,440
$
(3,892
)
125
$
709
$
513
$
(196
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
162
2.5
%
$
120
2.2
%
9
0.2
%
717
11.1
%
674
12.4
%
223
3.4
%
200
3.7
%
487
7.5
%
404
7.5
%
1,495
23.1
%
1,200
22.2
%
1,102
17.0
%
1,104
20.4
%
64
1.0
%
32
0.6
%
333
5.2
%
286
5.3
%
1,886
29.2
%
1,381
25.5
%
$
6,469
100.0
%
$
5,410
100.0
%
[1]
December 31, 2008
December 31, 2007
Carrying
Percent of
Carrying
Percent of
Value
Total
Value
Total
$
1,118
17.3
%
$
649
12.0
%
483
7.5
%
524
9.7
%
635
9.8
%
362
6.7
%
1,131
17.5
%
991
18.3
%
1,885
29.1
%
1,929
35.6
%
884
13.7
%
806
14.9
%
333
5.1
%
149
2.8
%
$
6,469
100.0
%
$
5,410
100.0
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Maximum
Maximum
Total
Total
Exposure
Total
Total
Exposure
Assets
Liabilities [1]
to Loss [2]
Assets
Liabilities
[1]
to Loss
$
339
$
69
$
257
$
128
$
47
$
107
151
43
108
309
47
262
249
59
221
377
71
317
$
739
$
171
$
586
$
814
$
165
$
686
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2008
December 31, 2007
Maximum
Maximum
Exposure
Exposure
Assets
Liabilities
to Loss
Assets
Liabilities
to Loss
$
308
$
$
349
$
26
$
$
37
3
15
76
108
42
40
5
43
43
5
$
353
$
40
$
369
$
145
$
43
$
150
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Asset Values
Liability Values
2008
2007
2008
2007
$
$
$
3
$
1,576
528
1,302
128
2
6,628
737
5
5
1,862
617
$
4,740
$
658
$
6,636
$
1,359
[1]
[2]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Hedge
Ineffectiveness,
Notional Amount
Fair Value
Before-tax
Hedging Strategy
2008
2007
2008
2007
2008
2007
$
9,030
$
5,049
$
640
$
113
$
9
$
3
1,210
1,588
(7
)
(318
)
(2
)
10,240
6,637
633
(205
)
9
1
2,138
4,226
(86
)
(66
)
(1
)
696
696
(57
)
25
2,834
4,922
(143
)
(41
)
(1
)
$
13,074
$
11,559
$
490
$
(246
)
$
8
$
1
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Derivative Change
Notional Amount
Fair Value
in Value, Before-tax
Hedging Strategy
2008
2007
2008
2007
2008
2007
$
8,156
$
9,287
$
(97
)
$
(17
)
$
12
$
29
1,113
412
21
(14
)
47
(14
)
1,199
2,857
(403
)
(416
)
(457
)
(205
)
2,306
(70
)
(166
)
(127
)
3,668
5,166
340
81
302
84
2,626
(11
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Derivative Change
Notional Amount
Fair Value
in Value, Before-tax
Hedging Strategy
2008
2007
2008
2007
2008
2007
$
500
$
500
$
42
$
43
$
(3
)
$
(4
)
2,334
1,849
383
(115
)
487
53
206
2,768
2
2
2
48,767
45,900
(6,620
)
(715
)
(5,786
)
(670
)
11,437
6,579
1,302
128
1,073
127
18,620
21,357
2,664
642
3,374
257
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Derivative Change
Notional Amount
Fair Value
in Value, Before-tax
Hedging Strategy
2008
2007
2008
2007
2008
2007
$
256
$
154
$
(16
)
$
(22
)
$
(25
)
$
2
259
35
40
(10
)
2,188
661
137
18
74
(12
)
869
(163
)
110
102,198
99,796
(2,386
)
(455
)
(916
)
(488
)
$
115,272
$
111,355
$
(1,896
)
$
(701
)
$
(908
)
$
(487
)
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Underlying Referenced Credit
Weighted
Obligation(s) [1]
Average
Average
Offsetting
Credit Derivative type by derivative
Notional
Fair
Years to
Credit
Notional
Offsetting
risk exposure
Amount [2]
Value
Maturity
Type
Rating
Amount [3]
Fair Value [3]
$
60
$
(1
)
4 years
Corporate Credit
A-
$
35
$
(9
)
82
(19
)
4 years
Corporate Credit
B-
1,778
(235
)
5 years
Corporate Credit
A-
1,003
21
275
(92
)
42 years
CMBS Credit
AAA
275
92
200
(166
)
6 years
Corporate Credit
BB+
117
106
2 years
Corporate Credit
BBB+
$
2,512
$
(407
)
$
1,313
$
104
[1]
[2]
[3]
[4]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Loaned Securities and Collateral Pledged
2008
2007
$
12
$
18
45
450
2,395
3,164
410
492
44
47
402
650
618
1
10
77
$
3,891
$
4,944
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
10,441
$
10,675
$
9,372
263
273
313
(421
)
(405
)
(369
)
$
10,283
$
10,543
$
9,316
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
10,831
$
11,281
$
11,600
218
205
265
(818
)
(1,046
)
(1,203
)
$
10,231
$
10,440
$
10,662
$
10,999
$
11,396
$
11,465
216
204
259
(877
)
(1,104
)
(1,291
)
$
10,338
$
10,496
$
10,433
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2008
2007
2006
$
10,514
$
9,071
$
8,568
(79
)
10,514
8,992
8,568
1,548
2,059
1,923
(1,023
)
(1,212
)
(1,269
)
(1,153
)
327
(183
)
1,754
230
47
348
118
(15
)
$
11,988
$
10,514
$
9,071
[1]
[2]
2008
2007
2006
$
1,228
$
1,197
$
1,134
2,127
2,135
2,169
(2,095
)
(2,104
)
(2,106
)
$
1,260
$
1,228
$
1,197
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Life
2008
2007
$
159
$
581
224
224
79
462
805
119
119
30
30
149
149
449
772
$
1,060
$
1,726
2008
2007
Gross Carrying
Accumulated Net
Gross Carrying
Accumulated Net
Acquired Intangible Assets
Amount
Amortization
Amount
Amortization
$
22
$
21
$
22
$
20
70
11
70
5
14
1
15
14
14
14
$
121
$
47
$
106
$
39
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Renewal
Distribution
Servicing
Rights
Agreement
Intangibles
Other
Total
$
2
$
65
$
$
$
67
14
1
15
(1
)
(6
)
(1
)
(8
)
$
1
$
59
$
13
$
1
$
74
$
2
$
$
$
4
$
6
70
70
(5
)
(4
)
(9
)
$
2
$
65
$
$
$
67
$
5
$
$
$
7
$
12
(3
)
(3
)
(6
)
$
2
$
$
$
4
$
6
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
UL Secondary
U.S. GMDB
[1]
Japan GMDB/GMIB
[1]
Guarantees
[1]
$
529
$
42
$
19
221
26
21
(269
)
(42
)
389
164
39
$
870
$
229
$
40
[1]
UL Secondary
U.S. GMDB
[1]
Japan GMDB/GMIB
[1]
Guarantees
[1]
$
475
$
35
$
7
142
16
12
(84
)
(3
)
(4
)
(9
)
3
$
529
$
42
$
19
[1]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Retained Net
Weighted Average
Account
Net Amount
Amount
Attained Age of
Maximum anniversary value (MAV) [1]
Value
at Risk [9]
at Risk [9]
Annuitant
$
25,961
$
14,743
$
5,019
66
1,858
1,153
481
65
5,068
2,447
241
62
742
400
75
65
33,629
18,743
5,816
25,601
11,985
6,634
63
1,137
487
487
61
3,440
1,190
1,189
67
17,321
3,889
3,638
58
81,128
36,294
17,764
63
29,726
9,151
7,761
67
$
110,854
$
45,445
$
25,525
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
2008
2007
$
467
$
404
(1
)
467
403
151
115
(21
)
(37
)
(44
)
(14
)
$
553
$
467
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
6,028
$
5,877
$
5,729
261
236
238
5,767
5,641
5,491
3,243
3,186
3,067
(118
)
(125
)
(160
)
3,125
3,061
2,907
1,554
1,470
1,335
1,503
1,465
1,422
3,057
2,935
2,757
5,835
5,767
5,641
231
261
236
$
6,066
$
6,028
$
5,877
2008
2007
$
6,066
$
6,028
253
269
123
121
10,305
8,913
$
16,747
$
15,331
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
22,153
$
21,991
$
22,266
3,922
4,387
5,403
18,231
17,604
16,863
6,933
6,869
6,706
(226
)
48
296
6,707
6,917
7,002
2,888
2,563
2,448
3,703
3,727
3,702
6,591
6,290
6,150
111
18,347
18,231
17,604
3,586
3,922
4,387
$
21,933
$
22,153
$
21,991
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Years ending December 31,
Capital Leases
Operating Leases
$
27
143
73
121
96
68
34
36
$
100
$
498
(8
)
92
(24
)
$
68
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
2006
$
(247
)
$
436
$
519
(247
)
436
519
(1,574
)
473
169
(742
)
721
147
169
(1,595
)
620
338
$
(1,842
)
$
1,056
$
857
Deferred Tax Assets
2008
2007
$
725
$
742
703
724
405
405
2,000
467
419
119
4,265
302
641
773
195
850
80
25
39
10,228
3,651
(75
)
(43
)
10,153
3,608
(4,816
)
(3,169
)
(13
)
(24
)
(85
)
(107
)
(4,914
)
(3,300
)
$
5,239
$
308
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31,
2008
2007
$
76
$
8
27
33
35
12
$
91
$
76
For the years ended December 31,
2008
2007
2006
$
(1,607
)
$
1,402
$
1,261
(161
)
(157
)
(153
)
(191
)
(170
)
(186
)
(40
)
113
4
(19
)
(25
)
$
(1,842
)
$
1,056
$
857
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Short-Term Debt
2008
2007
$
374
$
373
24
992
$
398
$
1,365
275
275
400
400
319
319
199
199
200
200
300
300
499
499
500
499
148
147
92
92
298
298
323
322
4,052
3,051
500
1,203
1,703
68
91
$
5,823
$
3,142
For the years ended December 31,
2008
2007
2006
$
11
$
13
$
31
332
250
246
$
343
$
263
$
277
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
$
275
400
320
5,400
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
2008
2007
2008
2007
11/10/86
N/A
$
2,000
$
2,000
$
374
$
373
8/9/07
8/9/12
1,900
2,000
9/18/02
1/4/10
55
45
$
3,955
$
4,045
$
374
$
373
[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)
For the years ended December 31,
Statutory Net Income (Loss)
2008
2007
2006
$
(4,553
)
$
729
$
1,123
497
1,803
1,326
$
(4,056
)
$
2,532
$
2,449
As of December 31,
Statutory Surplus
2008
2007
$
6,047
$
5,786
1,718
1,620
6,012
8,509
$
13,777
$
15,915
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension and
Net Gain (Loss)
Foreign
Other
Accumulated
Unrealized
on Cash-Flow
Currency
Postretirement
Other
Gain (Loss) on
Hedging
Translation
Plan
Comprehensive
Securities
Instruments
Adjustments
Adjustment
Income (Loss)
$
(359
)
$
(140
)
$
26
$
(385
)
$
(858
)
(7,127
)
(7,127
)
784
784
196
196
(515
)
(515
)
$
(7,486
)
$
644
$
222
$
(900
)
$
(7,520
)
$
1,058
$
(234
)
$
(120
)
$
(526
)
$
178
(1,417
)
(1,417
)
94
94
146
146
141
141
$
(359
)
$
(140
)
$
26
$
(385
)
$
(858
)
$
969
$
(110
)
$
(149
)
$
(620
)
$
90
89
89
(124
)
(124
)
29
29
94
94
$
1,058
$
(234
)
$
(120
)
$
(526
)
$
178
[1]
[2]
[3]
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
As of December 31,
2008
2007
6.25
%
6.25
%
4.25
%
4.25
%
For the year ended December 31,
2008
2007
2006
6.25
%
5.75
%
5.50
%
7.30
%
8.00
%
8.00
%
4.25
%
4.25
%
4.00
%
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
As of December 31,
2008
2007
2006
N/A
N/A
10.00
%
8.80
%
9.30
%
N/A
7.00
%
7.70
%
N/A
5.00
%
5.00
%
4.50
%
2015
2013
2013
Other Postretirement
Pension Benefits
Benefits
Change in Benefit Obligation
2008
2007
2008
2007
$
3,713
$
3,604
$
364
$
371
121
122
6
7
230
209
23
21
15
14
30
65
97
17
(11
)
(2
)
(193
)
(175
)
(165
)
(42
)
(42
)
2
3
(14
)
9
(1
)
1
$
3,938
$
3,713
$
384
$
364
Other Postretirement
Pension Benefits
Benefits
Change in Plan Assets
2008
2007
2008
2007
$
3,957
$
3,655
$
170
$
118
(441
)
331
(16
)
6
2
124
46
(164
)
(149
)
(14
)
(12
)
(14
)
8
$
3,326
$
3,957
$
154
$
170
$
(612
)
$
244
$
(230
)
$
(194
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31,
2008
2007
$
3,893
$
262
3,869
256
3,275
Pension Benefits
Other Postretirement Benefits
2008
2007
2006
2008
2007
2006
$
121
$
128
$
128
$
6
$
7
$
8
230
209
193
23
21
20
(279
)
(283
)
(244
)
(12
)
(8
)
(8
)
(9
)
(13
)
(13
)
(1
)
(6
)
(23
)
59
90
88
$
122
$
131
$
152
$
16
$
14
$
(3
)
Pension Benefits
Other Postretirement Benefits
2008
2007
2008
2007
$
(59
)
$
(90
)
$
$
9
13
1
6
795
(139
)
45
(10
)
31
$
745
$
(185
)
$
46
$
(4
)
Pension Benefits
Other Postretirement Benefits
2008
2007
2008
2007
$
1,454
$
718
$
6
$
(39
)
(49
)
(58
)
(2
)
(3
)
1
1
$
1,405
$
660
$
5
$
(41
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Percentage of Pension Plan Assets
Fair Value at December 31,
Target
2008
2007
Allocation
36
%
55
%
20% 40
%
58
%
43
%
50% 70
%
6
%
2
%
25% maximum
100
%
100
%
Percentage of Other Postretirement Benefit
Plan Assets Fair Value at December 31,
Target
2008
2007
Allocation
19
%
27
%
20% 40
%
81
%
73
%
60% 80
%
100
%
100
%
Employer Contributions
Pension Benefits
Other Postretirement Benefits
$
158
$
46
$
2
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
Other Postretirement Benefits
$
207
$
36
220
39
234
40
252
40
261
40
1,460
193
$
2,634
$
388
$
3
3
4
4
4
28
$
46
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the year ended December 31,
2008
2007
2006
2.9
%
2.0
%
1.9
%
32.2% - 37.0
%
21.0% - 31.3
%
20.2% - 32.3
%
33.3
%
29.0
%
28.9
%
2.0% - 5.0
%
4.4% - 5.2
%
4.4% - 4.6
%
8 years
8 years
7 years
Weighted
Average
Weighted
Remaining
Number of Options
Average
Contractual
Aggregate
(in thousands)
Exercise Price
Term
Intrinsic Value
6,323
$
58.76
4.2
$
180
431
69.26
(445
)
46.45
(49
)
94.95
(431
)
55.85
5,829
60.43
3.8
5,006
$
57.44
3.1
$
21.57
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Shares
Weighted-Average
Non-vested Shares
(in thousands)
Grant-Date Fair Value
1,883
$
81.69
792
70.07
(67
)
(498
)
69.87
(142
)
83.51
1,968
$
79.63
For the year ended December 31,
2008
2007
2006
3.5
%
2.1
%
2.0
%
45.5
%
23.2
%
19.0
%
1.9
%
4.7
%
4.7
%
3 months
3 months
3 months
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2008
2007
2008
2007
2008
2007
2008
2007
$
1,544
$
6,759
$
7,503
$
7,660
$
(393
)
$
5,823
$
565
$
5,674
$
1,453
$
5,547
$
6,851
$
6,823
$
3,790
$
4,648
$
1,716
$
4,893
$
145
$
876
$
543
$
627
$
(2,631
)
$
851
$
(806
)
$
595
$
0.46
$
2.74
$
1.74
$
1.98
$
(8.74
)
$
2.70
$
(2.71
)
$
1.90
$
0.46
$
2.71
$
1.73
$
1.96
$
(8.74
)
$
2.68
$
(2.71
)
$
1.88
313.8
319.6
311.7
316.8
301.1
315.4
300.2
313.4
315.7
322.7
313.1
319.6
301.1
318.0
300.2
316.1
[1]
[2]
[3]
[4]
Table of Contents
As of December 31, 2008
Amount at
which shown on
Type of Investment
Cost
Fair Value
Balance Sheet
$
5,883
$
5,956
$
5,956
3,525
3,614
3,614
11,406
10,655
10,655
2,786
2,821
2,821
4,859
4,373
4,373
26,200
22,808
22,808
23,579
14,885
14,885
78,238
65,112
65,112
1
1
1
1
1
1
331
445
445
1,221
1,011
1,011
1,554
1,458
1,458
35,278
30,820
30,820
36,832
32,278
32,278
103
103
103
10,022
10,022
10,022
6,469
5,654
6,469
2,208
2,435
2,208
2,295
2,295
2,295
744
1,620
1,620
11,716
12,004
12,592
$
136,911
$
119,519
$
120,107
Table of Contents
(Registrant)
(In millions)
As of December 31,
Condensed Balance Sheets
2008
2007
$
2,346
$
1,414
14,517
23,120
$
16,863
$
24,534
$
779
$
663
374
1,328
5,514
2,811
928
528
7,595
5,330
9,268
19,204
$
16,863
$
24,534
(In millions)
For the years ended December 31,
Condensed Statements of Operations
2008
2007
2006
$
293
$
217
$
198
(106
)
22
44
(187
)
(239
)
(242
)
(102
)
(83
)
(84
)
(85
)
(156
)
(158
)
(2,664
)
3,105
2,903
$
(2,749
)
$
2,949
$
2,745
the consolidated financial statements and notes thereto.
Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued)
(Registrant)
(In millions)
For the years ended December 31,
Condensed Statements of Cash Flows
2008
2007
2006
$
(2,749
)
$
2,949
$
2,745
(4,766
)
(1,422
)
(2,366
)
9,372
18
(74
)
1,857
1,545
305
(892
)
(76
)
(292
)
(2,300
)
(127
)
(527
)
(3,192
)
(203
)
(819
)
1,020
2,670
495
990
(955
)
(300
)
(1,015
)
75
(173
)
727
512
54
186
147
(1,000
)
(1,193
)
(18
)
(14
)
(5
)
5
45
10
(660
)
(636
)
(460
)
1,335
(1,342
)
514
$
$
$
$
265
$
239
$
198
$
2,279
$
1,668
$
441
the consolidated financial statements and notes thereto.
Table of Contents
Future Policy
Other
Benefits,
Policyholder
Deferred Policy
Unpaid Losses
Funds and
Acquisition
and
Unearned
Benefits
Segment [1]
Costs [2]
Loss Adjustment Expenses
Premiums
Payable
$
5,801
$
1,353
$
11
$
22,164
3,027
781
1
6,010
8,828
2,134
12
28,174
877
313
6,437
81
6,356
85
402
958
6,669
85
6,839
2,046
229
36,461
156
7,667
40
11,255
48
1
1,823
11,988
16,747
138
84,552
606
2,052
1,904
282
3,572
1,318
232
4,745
1,128
140
6,980
893
1,260
17,349
5,243
4,584
1
1,260
21,933
5,244
(3
)
$
13,248
$
38,680
$
5,379
$
84,552
$
5,315
$
961
$
13
$
15,443
2,406
737
2
5,691
7,721
1,698
15
21,134
658
333
5,591
69
6,331
75
317
727
6,664
75
5,908
1,923
42
39,024
143
6,863
57
12,460
64
1,816
10,514
15,331
147
80,342
566
2,042
1,909
282
3,470
1,357
236
4,697
1,195
144
6,873
940
1,228
17,082
5,401
5,071
1
1,228
22,153
5,402
(4
)
$
11,742
$
37,484
$
5,545
$
80,342
[1]
[2]
Table of Contents
Earned
Benefits, Losses
Amortization of
Premiums, Fee
Net
and Loss
Deferred Policy
Income and
Investment
Adjustment
Acquisition
Other
Net Written
Segment [1]
Other
Income
Expenses
Costs
Expenses [2]
Premiums
$
2,753
$
747
$
1,008
$
1,344
$
1,609
$
828
338
627
169
202
3,581
1,085
1,635
1,513
1,811
338
342
271
91
335
4,391
419
3,144
57
1,128
4,729
761
3,415
148
1,463
872
167
270
496
321
1,041
1,004
1,907
19
120
60
(10,312
)
(10,186
)
7
10,283
(7,295
)
(2,959
)
2,176
3,722
N/A
4,061
209
2,749
633
431
3,925
2,724
222
1,480
636
224
2,696
2,297
279
1,442
513
208
2,242
1,753
346
907
313
530
1,361
10,835
1,056
6,578
2,095
1,393
10,224
7
197
129
26
7
10,842
1,253
6,707
2,095
1,419
10,231
17
37
650
$
21,142
$
(6,005
)
$
3,748
$
4,271
$
5,791
$
10,231
[1]
[2]
N/A
Table of Contents
Earned
Benefits, Losses
Amortization of
Premiums, Fee
Net
and Loss
Deferred Policy
Income and
Investment
Adjustment
Acquisition
Other
Net Written
Segment [1]
Other
Income
Expenses
Costs
Expenses [2]
Premiums
$
3,055
$
801
$
820
$
406
$
1,221
$
808
359
562
121
193
3,863
1,160
1,382
527
1,414
242
355
249
58
170
4,301
465
3,109
62
1,131
4,543
820
3,358
120
1,301
832
131
32
214
246
1,238
1,241
2,074
23
185
67
290
301
84
10,543
3,642
7,147
884
3,230
N/A
4,030
249
2,697
617
402
3,947
2,737
299
1,413
635
239
2,747
2,420
389
1,560
529
208
2,326
1,800
502
1,054
323
537
1,415
10,987
1,439
6,724
2,104
1,386
10,435
5
248
193
23
5
10,992
1,687
6,917
2,104
1,409
10,440
16
30
1
219
$
21,551
$
5,359
$
14,064
$
2,989
$
4,858
$
10,440
[1]
[2]
N/A
Table of Contents
Earned
Benefits, Losses
Amortization of
Premiums, Fee
Net
and Loss
Deferred Policy
Income and
Investment
Adjustment
Acquisition
Other
Net Written
Segment [1]
Other
Income
Expenses
Costs
Expenses [2]
Premiums
$
2,609
$
839
$
819
$
973
$
994
$
832
324
497
243
179
3,441
1,163
1,316
1,216
1,173
212
326
250
(4
)
136
4,149
415
3,002
41
1,101
4,361
741
3,252
37
1,237
701
123
3
167
208
732
1,003
1,484
32
78
81
1,978
1,985
12
9,316
5,008
8,040
1,452
2,708
N/A
3,895
228
2,478
622
409
3,877
2,651
261
1,468
634
181
2,728
2,525
346
1,626
544
176
2,515
1,830
390
1,070
306
445
1,538
10,901
1,225
6,642
2,106
1,211
10,658
5
261
360
12
4
10,906
1,486
7,002
2,106
1,223
10,662
14
21
367
$
20,236
$
6,515
$
15,042
$
3,558
$
4,298
$
10,662
[1]
[2]
N/A
Table of Contents
Percentage
Assumed
of Amount
Gross
Ceded to Other
From Other
Net
Assumed
(In millions)
Amount
Companies
Companies
Amount
to Net
$
924,987
$
123,074
$
43,736
$
845,649
5
%
$
10,999
$
877
$
216
$
10,338
2
%
8,187
390
173
7,970
2
%
2,254
31
90
2,313
4
%
$
21,440
$
1,298
$
479
$
20,621
2
%
$
824,608
$
216,439
$
82,282
$
690,451
12
%
$
11,396
$
1,104
$
204
$
10,496
2
%
8,360
369
188
8,179
2
%
2,315
36
85
2,364
4
%
$
22,071
$
1,509
$
477
$
21,039
2
%
$
872,536
$
218,795
$
48,428
$
702,169
7
%
$
11,465
$
1,291
$
259
$
10,433
2
%
7,092
333
247
7,006
3
%
2,280
36
66
2,310
3
%
$
20,837
$
1,660
$
572
$
19,749
3
%
Table of Contents
Charged to
Write-offs/
Balance
Costs and
Translation
Payments/
Balance
(In millions)
January 1,
Expenses
Adjustment
Other
December 31,
$
126
$
53
$
$
(54
)
$
125
404
12
(37
)
379
1,395
228
(22
)
1,601
26
26
43
32
75
$
114
$
47
$
$
(35
)
$
126
412
12
(20
)
404
1,241
232
(78
)
1,395
60
(17
)
43
$
120
$
35
$
$
(41
)
$
114
413
284
(285
)
412
1,150
193
(102
)
1,241
44
16
60
PROPERTY AND CASUALTY INSURANCE OPERATIONS
Discount
Losses and Loss Adjustment
Paid Losses and
Deducted From
Expenses Incurred Related to:
Loss Adjustment
(In millions)
Liabilities [1]
Current Year
Prior Year
Expenses
$
488
$
6,933
$
(226
)
$
6,591
$
568
$
6,869
$
48
$
6,290
$
605
$
6,706
$
296
$
6,150
[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/ Ramani Ayer
Chairman, Chief Executive Officer
and Director
(Principal Executive Officer)
February 11, 2009
*
President, Chief Operating Officer and Director
February 11, 2009
/s/ Lizabeth H. Zlatkus
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
February 11, 2009
/s/ Beth A. Bombara
Senior Vice President and Controller
(Principal Accounting Officer)
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
*
Director
February 11, 2009
/s/ Alan J. Kreczko
As Attorney-in-Fact
Table of Contents
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008
FORM 10-K
Exhibit No.
Description
Table of Contents
Exhibit No.
Description
Table of Contents
Exhibit No.
Description
Table of Contents
Exhibit No.
Description
*
2
3
4
5
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT:
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Options / Restricted Stock:
Payable Other Equity Awards: Determined Under the Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
6
7
8
9
10
11
12
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
13
14
15
16
17
18
19
20
21
22
23
24
|
If to the Company: | The Hartford Financial Services Group, Inc. | ||
|
Law Department, HO-1-09 | |||
|
Hartford Plaza | |||
|
Hartford, CT 06115 | |||
|
Attention: Corporate Secretary | |||
|
||||
|
with a copy to : | Debevoise & Plimpton | ||
|
875 Third Avenue | |||
|
New York, NY 10022 | |||
|
Attn: Lawrence K. Cagney, Esq. | |||
|
||||
|
If to Executive: | The home address of Executive shown on the records of the Company |
25
26
THE HARTFORD FINANCIAL SERVICES GROUP, INC. | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
|
By: | Ann M. de Raismes | ||||||
|
Title: | Executive Vice President, Human Resources | ||||||
|
||||||||
|
||||||||
EXECUTIVE: | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
Ramani Ayer | ||||||||
|
||||||||
|
27
(a) |
Agreement to Employ
.
Upon the terms and subject to the conditions of this
Agreement, the Company hereby agrees to continue to employ Executive and Executive hereby
agrees to continue his employment by the Company.
|
(b) |
Term of Employment
.
Except as otherwise provided below, the Company shall employ
Executive for the period commencing on the Commencement Date and ending on the third
anniversary of the Commencement Date. At the expiration of the original term or any extended
term (each a Renewal Date), Executives employment hereunder shall be extended
automatically, upon the same terms and conditions, for successive one-year periods, unless
either party shall give written notice to the other of its intention not to renew such
employment at least fifteen months prior to such Renewal Date. Without limiting the
generality of the foregoing, upon the occurrence of a Change of Control (as defined below),
the term of this Agreement shall be extended automatically without any action by either party
until the second anniversary of such Change of Control. Notwithstanding the foregoing, if not
previously terminated pursuant to Sections 1(b), 5(a) or 6(a), the term of this Agreement
shall terminate on the last day of the month in which Executive attains age 65, and such a
termination upon Executive reaching age 65
shall be deemed to be a Termination Due to Retirement for purposes of this Agreement. The period
during which Executive is employed pursuant to this Agreement, including any extension thereof
in accordance with this Section 1(b), shall be referred to as the Employment Period.
|
(a) |
Base Salary
.
During the Employment Period, the Company shall pay Executive a base
salary at the annual rate as in effect on the date hereof. The annual base salary payable under
this paragraph shall be reduced, however, to the extent that Executive elects to defer such salary
under the terms of any deferred compensation or savings plan or arrangement maintained or
established by the Company or its affiliates. The Board or the appropriate committee of the Board
may in its discretion periodically review Executives base salary in light of competitive
practices, the base salaries paid to other executive officers of the Company and the performance of
Executive and the Company and its applicable affiliates, and may, in its discretion, increase such
base salary by an amount it determines to be appropriate. Any such increase shall not reduce or
limit any other obligation of the Company hereunder. Executives base salary (as set forth above or
as may be increased from time to time) shall not be reduced following any Change of Control, but
may be reduced prior to a Change of Control solely pursuant to a cost-saving plan or structural
realignment of total compensation elements that includes all senior executives and only to the
extent that such reduction is proportionate to the reductions applicable to other senior
executives. Executives annual base salary payable hereunder, as it may be increased or reduced
from time to time as provided herein and without reduction for any amounts deferred as described
above, shall be referred to herein as Base Salary. The Company shall
pay Executive the portion of his Base Salary not deferred not less frequently than in equal monthly
installments.
|
2
(b) |
Annual Bonus
.
For each calendar year ending during the Employment Period, Executive
shall have the opportunity to earn and receive an annual bonus, based on the achievement of target
levels of performance, equal to the percentage of his Base Salary used to calculate such annual
bonus as of the date hereof. Executives annual bonus opportunity may be increased above such
percentage from time to time by the Board or the appropriate committee thereof. Executives annual
bonus opportunity shall not be reduced following any Change of Control, but may be reduced prior to
a Change of Control solely pursuant to a cost-saving plan or structural realignment of total
compensation elements that includes all senior executives and only to the extent that such
reduction is proportionate to the reductions applicable to other senior executives. Executives
annual bonus opportunity, as it may be increased or reduced from time to time as provided herein,
shall be referred to herein as Target Bonus. The actual bonus, if any, payable for any such year
shall be determined in accordance with the terms of the Companys Annual Executive Bonus Program or
any successor annual incentive plan (the Annual Plan) based upon the performance of the Company
and/or its applicable affiliates and/or Executive against target objectives established under such
Annual Plan. Subject to Executives election to defer all or a portion of any annual bonus payable
hereunder pursuant to the terms of any deferred compensation or savings plan or arrangement
maintained or established by the Company or its affiliates, any annual bonus payable under this
Section 3(b) shall be paid to Executive in accordance with the terms of the Annual Plan.
|
(c) |
Long-term Incentive Compensation
.
During the Employment Period, Executive shall
participate in all of the Companys existing and future long-term incentive compensation programs
for key executives at a level commensurate with his position with the Company and consistent with
the Companys then current policies and practices, as determined in good faith by the Board or the
appropriate committee of the Board.
|
(a) |
Benefits
.
During the Employment Period, Executive (and, to the extent applicable,
his dependents) shall be eligible to participate in or be covered under (i) each welfare
benefit plan or program maintained or as hereafter amended or established by the Company or
its applicable affiliates, including, without limitation, each group life, hospitalization,
medical, dental, health, accident or disability insurance or similar plan or program of
thereof, and (ii) each pension, retirement, savings, deferred compensation, stock purchase or
other similar plan or program maintained or as hereafter amended or established by the
Company or its applicable affiliates, in each case to the extent that Executive is eligible
to participate in any such plan or program under the generally applicable provisions thereof.
Nothing in this Section 4(a) shall limit the Companys right to amend or terminate any such
plan or program in accordance with the procedures set forth therein or as permitted by
applicable law.
|
(b) |
Perquisites
.
For each calendar year during the Employment Period, Executive shall
be entitled to at least the number of paid vacation days per year that Executive is entitled
to as of
the date hereof, and shall also be entitled to receive such other perquisites as are generally
provided to him as of the date hereof or are hereafter provided to other similarly situated senior
executives of the Company in accordance with the then current policies and practices of the
Company.
|
3
(c) |
Business Expenses
.
During the Employment Period, the Company shall pay or reimburse
Executive for all reasonable business expenses incurred or paid by Executive in the performance of
Executives duties hereunder, upon presentation of expense statements or vouchers and such other
information as the Company may require and in accordance with the generally applicable policies and
procedures of the Company.
|
(d) |
Office and Support Staff
.
During the Employment Period, Executive shall be entitled to
an office with furnishings and other material appointments, and to secretarial and other
assistance, at a level that is at least commensurate with the foregoing provided to him as of the
date hereof or is hereafter provided to other similarly situated senior executives of the Company.
|
(e) |
Indemnification
.
The Company shall indemnify Executive and hold Executive harmless from
and against any claim, loss or cause of action, regardless whether asserted during or after the
Employment Period, arising from or out of Executives performance as an officer, director or
employee of the Company or any of its affiliates or in any other capacity, including any fiduciary
capacity in which Executive serves at the request of the Company, to the maximum extent permitted
by applicable law and under the Certificate of Incorporation and By-Laws of the Company, as may be
amended from time to time (the Governing Documents), provided that in no event shall the
protection afforded to Executive be less than that afforded under the Governing Documents as in
effect on the Commencement Date.
|
(a) |
Early Termination of the Employment Period
.
Notwithstanding Section 1(b) hereof, the
Employment Period shall end upon the earliest to occur of (i) a Termination For Cause, (ii) a
Termination Without Cause, (iii) a Voluntary Termination, (iv) a Termination Due to Retirement, (v)
a Termination Due to Disability, or (vi) a Termination Due to Death.
|
(b) |
Notice of Termination
.
Communication of termination under this Section 5 shall be made
to the other party by Notice of Termination in the case of (i) a Termination For Cause, (ii) a
Termination Without Cause, or (iii) a Voluntary Termination.
|
4
(c) |
Benefits Payable Upon Termination; Rules for Determining Reason for Termination
.
|
(i) |
Benefits Payable Upon Termination
.
Following the end of the Employment Period
pursuant to Section 5(a), Executive (or, in the event of his death, his surviving spouse, if
any, or if none, his estate) shall be paid the type or types of compensation determined to be
payable in accordance with the following table, such payment to be made in the form specified in
such table and at the time established pursuant to Section 7 hereof. Capitalized terms used in
such table shall have the meanings set forth in Section 5(d) hereof.
|
(ii) |
Rules for Determining Reason for Termination
.
|
(A) |
If a Voluntary Termination occurs on a date that Executive is eligible for Retirement
as defined in The Hartford Investment and Savings Plan, as may be amended from time to
time, or any successor plan thereof (the Savings Plan), such Voluntary Termination shall
instead be treated as a Termination Due to Retirement solely for purposes of this Section
5.
|
(B) |
No Termination Without Cause shall be treated as a Termination Due to Retirement or a
Termination Due to Disability for purposes of any Pro Rata Target Bonus, Severance
Payment, Equity Awards or Vested Benefits Enhancement under this Section 5,
notwithstanding the fact that, either on, before or after the date of termination of the
Employment Period with respect thereto, (I) Executive was eligible for Retirement as
defined in the Savings Plan, (II) Executive requested to be treated as a retiree for
purposes of the Savings Plan or any other plan or program of the Company or its
affiliates, or (III) Executive or the Company could have terminated Executives employment
in a Termination Due to Disability hereunder.
|
5
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT:
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Options / Restricted Stock:
Payable Other Equity Awards: Determined Under the Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
6
(d) |
Definitions
.
|
7
8
9
10
(a) |
Early Termination of the Employment Period
.
Notwithstanding Section 1(b)
hereof, the Employment Period shall end upon the earliest to occur of (i) a Termination
For Cause, (ii) a Termination Without Cause, (iii) a Voluntary Termination, (iv) a
Termination For Good Reason, (v) a Termination Due to Retirement, (vi) a Termination
Due to Disability, or (vii) a Termination Due to Death.
|
(b) |
Notice of Termination
.
Communication of termination under this Section 6
shall be made to the other party by Notice of Termination in the case of (i) a
Termination For Cause, (ii) a Termination Without Cause, (iii) a Voluntary Termination,
or (iv) a Termination For Good Reason.
|
(c) |
Benefits Payable Upon Termination; Rules for Determining Reason for Termination
|
(i) |
Benefits Payable Upon Termination
.
Following the end of the Employment
Period, Executive (or, in the event of his death, his surviving spouse, if any, or
if none, his estate) shall be paid the type or types of compensation determined to
be payable in accordance with the following table, such payment to be made in the
form specified in such table and at the time established pursuant to Section 7
hereof. Capitalized terms used in such table (and otherwise in this Section 6)
that are defined in Section 5, and not specifically defined in Section 6(d)
hereof, shall have the meanings ascribed thereto under Section 5. Where such a
capitalized term is defined solely in Section 6(d), or in both Section 5 and
Section 6(d), such term shall have the meaning ascribed to it in Section 6(d).
|
11
(ii) |
Rules for Determining Reason for Termination
.
|
(A) |
No Termination Without Cause or Termination For Good Reason shall be
treated as a Termination Due to Retirement or a Termination Due to Disability
for purposes of any Pro Rata Target Bonus, Severance Payment, Equity Awards or
Vested Benefits Enhancement under this Section 6, notwithstanding the fact
that, either on, before or after the Date of Termination with respect
thereto,(I) Executive was eligible for Retirement as defined in the Savings
Plan, (II) Executive requested to be treated as a retiree for purposes of the
Savings Plan or any other plan or program of the Company or its affiliates, or
(III) Executive or the Company could have terminated Executives employment in
a Termination Due to Disability hereunder.
|
(B) |
No Termination Due to Retirement shall be treated as a Voluntary Termination
for purposes of this Section 6.
|
(C) |
Notwithstanding any provision in this Agreement to the contrary, in the
event of a change of Control as described in clause (iii) or clause (iv) of the
definition of the term change of Control in Section 6(d) of this Agreement, if
the employment of Executive involuntarily terminates on or after the date of a
shareholder approval described in either of such clauses but before the date of
a consummation described in either of such clauses, the date of termination of
Executives employment shall be deemed for the purposes of this Agreement to be
the day following the date of the applicable consummation.
|
12
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
13
(d) |
Definitions
.
|
(i) |
a report on Schedule 13D shall be filed with the Securities and Exchange
Commission pursuant to Section 13(d) of the Act disclosing that any Person, other
than the Company or a subsidiary of the Company or any employee benefit plan
sponsored by the Company or a subsidiary of the Company is the Beneficial Owner of
forty percent or more of the outstanding stock of the Company entitled to vote in
the election of directors of the Company;
|
(ii) |
any Person, other than the Company or a subsidiary of the Company or any
employee benefit plan sponsored by the Company or a subsidiary of the Company shall
purchase shares pursuant to a tender offer or exchange offer to acquire any stock
of the Company (or securities convertible into stock) entitled to vote in the
election of directors of the Company for cash, securities or any other
consideration, provided that after consummation of the offer, the Person in
question is the Beneficial Owner of fifteen percent or more of the outstanding
stock of the Company entitled to vote in the election of directors of the Company
(calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of
rights to acquire stock);
|
14
(iii) |
any merger, consolidation, recapitalization or reorganization of the Company
approved by the stockholders of the Company shall be consummated, other than any
such transaction immediately following which the persons who were the Beneficial
Owners of the outstanding securities of the Company entitled to vote in the
election of directors of the Company immediately prior to such transaction are the
Beneficial Owners of at least 55% of the total voting power represented by the
securities of the entity surviving such transaction entitled to vote in the
election of directors of such entity (or the ultimate parent of such entity) in
substantially the same relative proportions as their ownership of the securities of
the Company entitled to vote in the election of directors of the Company
immediately prior to such transaction; provided that, such continuity of ownership
(and preservation of relative voting power) shall be deemed to be satisfied if the
failure to meet such threshold (or to preserve such relative voting power) is due
solely to the acquisition of voting securities by an employee benefit plan of the
Company, such surviving entity or any subsidiary of such surviving entity;
|
(iv) |
any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all the assets of the Company
approved by the stockholders of the Company shall be consummated; or
|
(v) |
within any 24 month period, the persons who were directors of the
Company immediately before the beginning of such period (the Incumbent
Directors) shall cease (for any reason other than death) to constitute at
least a majority of the Board or the board of directors of any successor to the
Company, provided that any director who was not a director at the beginning of
such period shall be deemed to be an Incumbent Director if such director (A)
was elected to the Board by, or on the recommendation of or with the approval
of, at least two-thirds of the directors who then qualified as Incumbent
Directors either actually or by prior operation of this clause (v), and (B) was
not designated by a person who has entered into an agreement with the Company
to effect a transaction described in clause (iii) or (iv) of this definition of
the term Change of Control in Section 6(d) of this Agreement.
|
15
16
(i) |
(A)the assignment to Executive of any duties inconsistent in any material adverse
respect with Executives position, duties, authority or responsibilities as contemplated
by Section 2 of this Agreement, or (B) any other material adverse change in such position,
including titles, authority or responsibilities;
|
||
(ii) |
any failure by the Company to comply with any of the provisions of Sections 3 and 4
of this Agreement at a level of least equal to that in effect immediately preceding the
Change of Control, other than an insubstantial or inadvertent failure remedied by the
Company promptly after receipt of notice thereof given by Executive;
|
||
(iii) |
the Companys requiring Executive to be based at any office or location more than 25
miles from the location at which he performed his services specified under Section 2
hereof immediately prior to the Change of Control, except for travel reasonably required
in the performance of Executives responsibilities;
|
||
(iv) |
any failure by the Company to obtain the assumption and agreement to perform this
Agreement by a successor as contemplated by Section 10(d) hereof; or
|
||
(v) |
any attempt by the Company to terminate the Executives employment in a Termination
For Cause that is determined in a proceeding pursuant to Section 9 or Section 10 hereof
not to constitute a Termination For Cause.
|
17
(e) |
Out-Placement Services
.
If the Employment Period terminates because of a Termination
Without Cause or a Termination For Good Reason, Executive shall be entitled to out-placement
services, provided by the Company or its designee at the Companys expense, for 12 months following
the Date of Termination, or such lesser period as the Executive may require such services.
|
(f) |
Certain Further Payments by Company
.
|
(i) |
Tax Reimbursement Payment
.
In the event that any amount or benefit paid or
distributed to Executive pursuant to this Agreement, taken together with any amounts or
benefits otherwise paid or distributed to Executive by the Company or any affiliate
(collectively, the Covered Payments), are or become subject to the tax (the Excise Tax)
imposed under Section 4999 of the Internal Revenue Code of 1986, as amended, or any similar
tax that may hereafter be imposed, the Company shall pay to the Executive at the time
specified in this Section an additional amount (the Tax Reimbursement Payment) such that
the net amount retained by the Executive with respect to such Covered Payments, after
deduction of any Excise Tax on the Covered Payments and any Federal, state and local income
tax and other tax on the Tax Reimbursement Payment provided for by this Section, but before
deduction for any Federal, state or local income or employment tax withholding on such
Covered Payments, shall be equal to the amount of the Covered Payments.
|
18
(ii) |
Applicable Rules
.
For purposes of determining whether any of the Covered
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
|
(A) |
such Covered Payments will be treated as parachute payments within the meaning
of Section 280G of the Code, and all parachute payments in excess of the base
amount (as defined under Section 280G(b)(3) of the Code) shall be treated as subject
to the Excise Tax, unless, and except to the extent that, in the good faith judgment
of the Companys independent certified public accountants appointed prior to the
Effective Date or tax counsel selected by such accountants (the Accountants), the
Company has a reasonable basis to conclude that such Covered Payments (in whole or in
part) either do not constitute parachute payments or represent reasonable
compensation for personal services actually rendered (within the meaning of Section
280G(b)(4)(B) of the Code) in excess of the base amount, or such parachute
payments are otherwise not subject to such Excise Tax, and
|
(B) |
the value of any non-cash benefits or any deferred payment or benefit shall be
determined by the Accountants in accordance with the principles of Section 280G of the
Code.
|
(iii) |
Additional Rules
.
For purposes of determining the amount of the Tax Reimbursement
Payment, the Executive shall be deemed to pay: (A) Federal income taxes at the highest applicable
marginal rate of Federal income taxation for the calendar year in which the Tax Reimbursement
Payment is to be made, and (B) any applicable state and local income and other taxes at the highest
applicable marginal rate of taxation for the calendar year in which the Tax Reimbursement Payment
is to be made, net of the maximum reduction in Federal incomes taxes which could be obtained from
the deduction of such state or local taxes if paid in such year.
|
(iv) |
Repayment or Additional Payment in Certain Circumstances
.
|
(A) |
Repayment
.
In the event that the Excise Tax is subsequently determined by
the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue
Service to be less than the amount taken into account hereunder in calculating the Tax
Reimbursement Payment made, Executive shall repay to the Company, at the time that the
amount of such reduction in the Excise Tax is finally determined, the portion of such
prior Tax Reimbursement Payment that would not have been paid if such lesser Excise Tax
had been applied in initially calculating such Tax Reimbursement Payment.
Notwithstanding the foregoing, in the event any portion of the Tax Reimbursement
Payment to be repaid to the Company has been paid to any Federal, state or local tax
authority, repayment thereof shall not be required until actual refund or credit of
such portion has been made to Executive by the applicable tax authority. Executive and the Company shall mutually agree upon
the course of action to be pursued (and the method of allocating the expenses
thereof) if Executives good faith claim for refund or credit is denied.
|
19
(B) |
Additional Tax Reimbursement Payment
.
In the event that the Excise Tax is later
determined by the Accountants or pursuant to any proceeding or negotiations with the
Internal Revenue Service to exceed the amount taken into account hereunder at the time the
Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment
the existence or amount of which cannot be determined at the time of the Tax Reimbursement
Payment), the Company shall make an additional Tax Reimbursement Payment in respect of such
excess (plus any interest or penalty payable with respect to such excess) at the time that
the amount of such excess is finally determined.
|
(v) |
Timing for Tax Reimbursement Payment
.
The Tax Reimbursement Payment (or portion
thereof) provided for in this Section 6 shall be paid to Executive not later than 10
business days following the payment of the Covered Payments; provided, however, that if the
amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined
on or before the date on which payment is due, the Company shall pay to Executive by such
date an amount estimated in good faith by the Accountants to be the minimum amount of such
Tax Reimbursement Payment and shall pay the remainder of such Tax Reimbursement Payment
(together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon
as the amount thereof can be determined, but in no event later than 45 calendar days after
payment of the related Covered Payment. To the extent that the amount of the estimated Tax
Reimbursement Payment exceeds the amount subsequently determined to have been due, Executive
shall repay such excess to the Company on the fifth business day after written demand by the
Company for payment.
|
20
21
(a) |
Noncompetition
.
During the Employment Period and until the earlier of: (i) the last
day of the one year period following any Voluntary Termination of the Employment Period by
Executive pursuant to Section 5 hereof, or (ii) the date a Change of Control occurs (the
Restriction Period), Executive shall not become associated with any entity, whether as a
principal, partner, employee, agent, consultant, shareholder (other than as a holder, or a member
of a group which is a holder, of not in excess of 1% of the outstanding voting shares of any
publicly traded company) or in any other relationship or capacity, paid or unpaid, that is
actively engaged in any geographic area in any business which is in competition with the business
of the Company. The Company shall, in its sole discretion, have the right to enforce or waive the
terms of this provision in connection with the Restriction Period. If the Company exercises its
right to enforce this provision for the Restriction Period, the Company will provide Executive
with written notice of its intent to enforce and agrees to pay Executive one year of Executives
then current Base Salary and one year of Executives then current Target Bonus as compensation
for the Restriction Period. Executive agrees that the terms of the Restriction Period are
reasonable and that this compensation is above and beyond any amounts necessary to support the
terms of the Restriction Period a set forth herein. Notwithstanding anything herein to the
contrary, the terms of this Section 9(a) shall not apply in the event of any termination of
employment following a Change of Control as provided for in Section 6 of this Agreement.
|
(b) |
Confidentiality
.
Without the prior written consent of the Company, except to the
extent required by an order of a court having competent jurisdiction or under subpoena from an
appropriate government agency, Executive shall not disclose to any third person, or permit the
use of for the benefit of any person or any entity other than The Company or its affiliates, any
trade secrets, customer lists, information regarding product development, marketing plans, sales
plans, management organization information (including data and other information relating to
members of the Board and management), operating policies or manuals, business plans, financial
records, or other financial, organizational, commercial, business, sales, marketing, technical,
product or employee information relating to the Company or its affiliates or information
designated as confidential, proprietary, and/or a trade secret, or any other information relating
to the Company or its affiliates that Executive knows from the circumstances, in good faith and
good conscience, should be treated as confidential, or any information that the Company or its
affiliates may receive belonging to customers, agents or others who do business with the Company
or its affiliates, except to the extent that any such information previously has been disclosed
to the public by the Company or is in the public domain (other than by reason of Executives
violation of this Section 9(b)).
|
22
(c) |
Non-Solicitation of Employees
.
During the Employment Period and until the earlier of:
(i) the last day of the one year period following any Voluntary Termination of the Employment
Period by Executive pursuant to Section 5 hereof, or (ii) the date a Change of Control occurs,
Executive shall not directly or indirectly solicit, encourage or induce any employee of the
Company or its affiliates to terminate employment with such entity, and shall not directly or
indirectly, either individually or as owner, agent, employee, consultant or otherwise, employ or
offer employment to any person who is or was employed by the Company or an affiliate thereof
unless such person shall have ceased to be employed by such entity for a period of at least six
months. Notwithstanding anything herein to the contrary, the terms of this Section 9(c) shall not
apply in the event of any termination of employment following a Change of Control as provided for
in Section 6 of this Agreement.
|
(d) |
Company Property
.
Except as expressly provided herein, promptly following any
termination of the Employment Period, Executive shall return to the Company all property of the
Company, and all copies thereof in Executives possession or under his control.
|
(e) |
Injunctive Relief and Other Remedies with Respect to Covenants
.
Executive
acknowledges and agrees that the covenants and obligations of Executive with respect to
noncompetition, confidentiality, nonsolicitation, and Company property relate to special, unique
and extraordinary matters and that a violation of any of the terms of such covenants and
obligations will cause the Company irreparable injury for which adequate remedies are not
available at law. Therefore, Executive agrees that the Company (i) shall be entitled to an
injunction, restraining order or such other equitable relief (without the requirement to post
bond) restraining Executive from committing any violation of the covenants and obligations
contained in this Section 9, and (ii) shall have no further obligation to make any payments to
Executive hereunder following any material violation of the covenants and obligations contained
in this Section 9. These remedies are cumulative and are in addition to any other rights and
remedies the Company may have at law or in equity. In connection with the foregoing provisions of
this Section 9, Executive represents that his economic means and circumstances are such that such
provisions will not prevent him from providing for himself and his family on a basis satisfactory
to him. Notwithstanding the foregoing, in no event shall an asserted violation of the provisions
of this Section constitute a basis for deferring or withholding any amounts otherwise payable to
the Executive under this Agreement following a Change of Control.
|
23
(a) |
Survival
.
All of the provisions of Sections 5 (relating to termination of the
Employment Period prior to a Change of Control), 6 (relating to termination of the Employment
Period following a Change of Control), 9 (relating to noncompetition, confidentiality,
nonsolicitation and Company property), 10(b) (relating to arbitration), 10(c) (relating to
legal fees) and 10(n) (relating to governing law) of this Agreement shall survive the
termination of this Agreement.
|
(b) |
Arbitration
.
Except as provided in Section 9, any dispute or controversy arising
under or in connection with this Agreement shall be resolved by binding arbitration.
Such arbitration shall be held in the city of Hartford, Connecticut and except to the
extent inconsistent with this Agreement, shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association in effect at the time
of the arbitration, and otherwise in accordance with the principles that would be applied
by a court of law or equity. The arbitrator shall be acceptable to both the Company and
Executive. If the parties cannot agree on an acceptable arbitrator, the dispute or
controversy shall be heard by a panel of three arbitrators; one appointed by each of the
parties and the third appointed by the other two arbitrators. The Company and Executive
further agree that they will abide by and perform any award or awards rendered by the
arbitrators and that a judgment may be entered on any award or awards rendered by any
state or federal court having jurisdiction over the Company or Executive or any of their
respective property.
|
(c) |
Legal Fees and Expenses
.
In any contest (whether initiated by Executive or by the
Company) as to the validity, enforceability or interpretation of any provision of this
Agreement, the Company shall pay Executives legal expenses (or cause such expenses to be
paid) including, without limitation, his reasonable attorneys fees, on a quarterly basis,
upon presentation of proof of such expenses in a form acceptable to the Company, provided
that Executive shall reimburse the Company for such amounts, plus simple interest thereon at
the 90-day United States Treasury Bill rate as in effect from time to time, compounded
annually, if Executive shall not prevail, in whole or in part, as to any material issue as to
the validity, enforceability or interpretation of any provision of this Agreement.
|
(d) |
Successors; Binding Effect
.
This Agreement shall inure to the benefit of and be binding
upon the Company and its successors. The Company shall require any successor to all or
substantially all of the business and/or assets of the Company, whether direct or indirect, by
purchase, merger, consolidation, acquisition of stock, or otherwise, by an agreement in form and
substance satisfactory to Executive, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent as the Company would be required to perform the Agreement if no
such succession had taken place. This Agreement is personal to the Executive and, without the prior
written consent of the Company, shall not be assignable by Executive otherwise than by will or the
law of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by
Executives legal representatives.
|
(e) |
Assignment
.
Except as provided in Section 10(d), neither this Agreement nor any
of the rights or obligations hereunder shall be assigned or delegated by any party hereto
without the prior written consent of the other party.
|
24
(f) |
Entire Agreement
.
This Agreement constitutes the entire agreement between the
parties hereto with respect to the matters referred to herein. This Agreement supersedes and
replaces any prior employment or severance agreement or arrangement between the Company and
Executive. No other agreement relating to the terms of Executives employment by the Company,
oral or otherwise, shall be binding between the parties unless it is in writing and signed by
the party against whom enforcement is sought. There are no promises, representations,
inducements or statements between the parties other than those that are expressly contained
herein. Executive acknowledges that he is entering into this Agreement of his own free will
and accord, and with no duress, and that he has read this Agreement and that he understands
it and its legal consequences.
|
(g) |
Severability; Reformation.
In the event that one or more of the provisions of this
Agreement shall become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not be
affected thereby. In the event of a determination that any of the provisions of Section 9(a),
Section 9(b) or Section 9(c) are not enforceable in accordance with their terms, Executive
and the Company agree that such Section shall be reformed to make such Section enforceable in
a manner that provides the Company the maximum rights permitted at law.
|
(h) |
Waiver
.
Waiver by any party hereto of any breach or default by the other party of
any of the terms of this Agreement shall not operate as a waiver of any other breach or
default, whether similar to or different from the breach or default waived. No waiver of any
provision of this Agreement shall be implied from any course of dealing between the parties
hereto or from any failure by either party hereto to assert its or his rights hereunder on
any occasion or series of occasions.
|
(i) |
Notices
.
Any notice required or desired to be delivered under this Agreement
shall be in writing and shall be delivered personally, by courier service, by registered
mail, return receipt requested, or by telecopy and shall be effective upon actual receipt by
the party to which such notice shall be directed, and shall be addressed as follows (or to
such other address as the party entitled to notice shall hereafter designate in accordance
with the terms hereof):
|
|
If to the Company: | The Hartford Financial Services Group, Inc. | ||
|
Law Department, HO-1-09 | |||
|
Hartford Plaza | |||
|
Hartford, CT 06115 | |||
|
Attention: Corporate Secretary | |||
|
||||
|
With a copy to: | Debevoise & Plimpton | ||
|
875 Third Avenue | |||
|
New York, NY 10022 | |||
|
Attn: Lawrence K. Cagney, Esq. | |||
|
||||
|
If to Executive: | The home address of Executive | ||
|
shown on the records of the Company |
25
(j) |
Amendments
.
This Agreement may not be altered, modified or amended except by a
written instrument signed by each of the parties hereto, provided, however, that the Company
may unilaterally amend this Agreement at any time as may be necessary, in its reasonable
judgment, to comply with law or to avoid payments to the Executive under the Agreement being
subject to an additional tax under Section 409A of the Code. This Agreement is intended to
comply with Section 409A of the Code, and no action taken by the Company shall be construed
in a manner that would result in the imposition of an additional tax on Executive under
Section 409A of the Code.
|
26
(k) |
Headings
.
Headings to provisions of this Agreement are for the convenience of the
parties only and are not intended to be part of or to affect the meaning or interpretation
hereof.
|
(l) |
Counterparts
.
This Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument.
|
(m) |
Withholding
.
Any payments provided for herein shall be reduced by any
amounts required to be withheld by the Company from time to time under applicable
Federal, State or local income or employment tax laws or similar statutes or other
provisions of law then in effect.
|
(n) |
Governing Law
.
This Agreement shall be governed by the laws of the State
of Connecticut, without reference to principles of conflicts or choice of law under
which the law of any other jurisdiction would apply.
|
THE HARTFORD FINANCIAL SERVICES GROUP, INC. | ||||||
|
||||||
WITNESSED:
|
||||||
|
||||||
|
||||||
|
|
|||||
|
Title: Executive Vice President, Human Resources | |||||
|
||||||
|
||||||
EXECUTIVE: | ||||||
|
||||||
WITNESSED:
|
||||||
|
||||||
Thomas M. Marra | ||||||
|
||||||
|
27
2
3
4
5
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT:
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Options / Restricted Stock:
Payable Other Equity Awards: Determined Under the Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
6
7
8
9
10
11
12
13
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
14
15
16
17
18
19
20
21
22
23
24
25
If to the Company:
|
The Hartford Financial Services Group, Inc. | |
|
Law Department, HO-1-09 | |
|
Hartford Plaza | |
|
Hartford, CT 06115 | |
|
Attention: Corporate Secretary | |
|
||
with a copy to:
|
Debevoise & Plimpton | |
|
875 Third Avenue | |
|
New York, NY 10022 | |
|
Attn: Lawrence K. Cagney, Esq. | |
|
||
If to Executive:
|
The home address of Executive
shown on the records of the Company |
26
27
THE HARTFORD FINANCIAL SERVICES GROUP, INC. | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
|
By: | Ann M. de Raismes | ||||||
|
Title: | Executive Vice President, Human Resources | ||||||
|
||||||||
|
||||||||
EXECUTIVE: | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
Neal Wolin | ||||||||
|
28
2
3
4
5
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT:
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Options / Restricted Stock:
Payable Other Equity Awards: Determined Under the Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
6
7
8
9
10
11
12
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
13
14
15
16
17
18
19
20
21
22
23
24
If to the Company:
|
The Hartford Financial Services Group, Inc. | |
|
Law Department, HO-1-09 | |
|
Hartford Plaza | |
|
Hartford, CT 06115 | |
|
Attention: Corporate Secretary | |
|
||
with a copy to:
|
Debevoise & Plimpton | |
|
875 Third Avenue | |
|
New York, NY 10022 | |
|
Attn: Lawrence K. Cagney, Esq. | |
|
||
If to Executive:
|
The home address of Executive
shown on the records of the Company |
25
THE HARTFORD FINANCIAL SERVICES GROUP, INC. | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
|
By: | Eileen G. Whelley | ||||||
|
Title: | Executive Vice President, Human Resources | ||||||
|
||||||||
|
||||||||
EXECUTIVE: | ||||||||
|
||||||||
WITNESSED:
|
||||||||
|
||||||||
Lizabeth H. Zlatkus | ||||||||
|
26
2
3
4
5
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT:
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Options / Restricted Stock:
Payable Other Equity Awards: Determined Under the Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
6
7
8
9
10
11
12
13
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the event | ||||||||||||||
that Executives | ||||||||||||||
employment by the | ||||||||||||||
Accrued | Pro Rata Target | Severance | Company terminates | Welfare | ||||||||||
BENEFIT | Salary | Bonus | Payment | Equity Awards | Vested Benefits | prior to July 1, 2009) | Benefits Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum | Lump Sum |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Lump Sum |
Determined Under the
Applicable Plan |
|||||||
|
||||||||||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available | |||||||
|
||||||||||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Payable | Available | |||||||
|
||||||||||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Available | |||||||
|
||||||||||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under the
Applicable Plan |
Determined Under the
Applicable Plan |
Not Payable | Not Available |
14
15
16
17
18
19
20
21
22
23
24
25
If to the Company:
|
The Hartford Financial Services Group, Inc. | |
|
Law Department, HO-1-09 | |
|
Hartford Plaza | |
|
Hartford, CT 06115 | |
|
Attention: Corporate Secretary | |
|
||
wiith a copy to:
|
Debevoise & Plimpton | |
|
875 Third Avenue | |
|
New York, NY 10022 | |
|
Attn: Lawrence K. Cagney, Esq. | |
|
||
If to Executive:
|
The home address of Executive
shown on the records of the Company |
26
27
THE HARTFORD
FINANCIAL SERVICES GROUP,
INC. |
|||||
|
|||||
WITNESSED:
|
|||||
|
|||||
|
By: | Eileen G. Whelley | |||
|
Title: | Executive Vice President, Human Resources | |||
|
|||||
|
|||||
EXECUTIVE: | |||||
|
|||||
WITNESSED:
|
|||||
|
|||||
|
John C. Walters | ||||
|
|||||
|
28
Page 2 of 23
Page 3 of 23
Page 4 of 23
Page 5 of 23
Page 6 of 23
Page 7 of 23
Page 8 of 23
BENEFITS PAYABLE | ||||||||||||||
Vested Benefits | ||||||||||||||
Enhancement (only | ||||||||||||||
applicable in the | ||||||||||||||
event that | ||||||||||||||
Executives | ||||||||||||||
employment by the | ||||||||||||||
Company and/or the | ||||||||||||||
Subsidiaries | Welfare | |||||||||||||
Pro Rata | Severance | terminates prior to | Benefits | |||||||||||
BENEFIT | Accrued Salary | Target Bonus | Payment | Equity Awards | Vested Benefits | July 1, 2009) | Continuation | |||||||
FORM OF PAYMENT
|
Lump Sum | Lump Sum |
Lump
Sum |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Lump Sum |
Determined Under
the Applicable Plan |
|||||||
Termination For Cause
|
Payable | Not Payable | Not Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Not Payable | Not Available | |||||||
Termination Without Cause
|
Payable | Payable | Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Payable | Available | |||||||
Termination For Good Reason
|
Payable | Payable | Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Payable | Available | |||||||
Voluntary Termination
|
Payable | Not Payable | Not Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Not Payable | Not Available | |||||||
Termination Due to Retirement
|
Payable |
Determined Under
the Applicable Plan |
Not Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Not Payable | Available | |||||||
Termination Due to Disability
|
Payable | Payable | Not Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Not Payable | Available | |||||||
Termination Due to Death
|
Payable | Payable | Not Payable |
Determined Under
the Applicable Plan |
Determined Under
the Applicable Plan |
Not Payable | Not Available |
Page 9 of 23
Page 10 of 23
Page 11 of 23
Page 12 of 23
Page 13 of 23
Page 14 of 23
Page 15 of 23
Page 16 of 23
Page 17 of 23
Page 18 of 23
Page 19 of 23
Page 20 of 23
If to the Company:
|
The Hartford Financial Services Group, Inc. | |
|
Executive Row, Home Office | |
|
One Hartford Plaza | |
|
Hartford, CT 06155 | |
|
Attention: General Counsel | |
|
||
with a copy to:
|
Debevoise & Plimpton | |
|
875 Third Avenue | |
|
New York, NY 10022 | |
|
Attn: Lawrence K. Cagney, Esq. | |
|
||
If to Executive:
|
The home address of Executive shown on the records of the Company |
Page 21 of 23
Page 22 of 23
Executive | The Hartford Financial Services Group, Inc. | |||||||
|
||||||||
Employee Name | Eileen Whelley | |||||||
Executive Vice President | ||||||||
Human Resources | ||||||||
|
||||||||
Date:
|
Date: | |||||||
|
||||||||
|
||||||||
Witness
|
Witness | |||||||
|
||||||||
Witness Signature | Witness Signature | |||||||
|
||||||||
Printed Name | Printed Name |
Page 23 of 23
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
2
3
4
5
6
7
8
9
10
11
12
13
14
15
(b) |
For purposes of this Plan, a Potential Change of Control shall
occur if:
|
16
17
18
19
20
21
2
3
4
5
6
7
8
9
(A) |
General Rule
.
Except as provided in Section 6.3(B), within 90 days of
the fifth business day of the month following the month in which the Participants
separation from service occurs, the Company shall distribute to the Participant a
single lump sum cash payment equal to the total amount credited to the Participants
Account as of the Valuation Date immediately preceding such distribution.
|
(B) |
Exception for Certain Terminations.
In the case of a Participant who:
(i) has reached age 55 or older at the time employment or service on the Board of
Directors terminates or who has satisfied the requirements for early retirement
treatment (Rule of 70) under The Hartford Retirement Plan for U.S. Employees, or (ii)
is a commissioned wholesaler for Planco Financial Services,. who, at the time
employment terminates, satisfies the minimum service and Account balance requirements
established by the Committee or the Plan Administrator (two years and $50,000), the
Company shall
distribute the amounts credited to such a Participants Account in accordance with the
distribution elections in place at such time. Notwithstanding the foregoing, except for
a Participant who elected to participate in the Plan prior to 2009 while a commissioned
wholesaler for Planco Financial Services or a Participant who first elects to
participate in the Plan after 2008 while a wholesaler for Planco Financial Services, if
a Participant has an election in place to receive payment of amounts from any Account
during the time of employment or service on the Board of Directors, all amounts
remaining in such Account shall be distributed to such Participant in a single lump sum
cash payment within 90 days of the fifth business day of the month following the month
in which the Participants separation from service occurs. Further, if any minimum
Account balance requirement is not met, the particular Account shall be distributed to
the Participant in a single lump sum cash payment as soon as practicable after the
Valuation Date coincident with or next succeeding the date the first installment
otherwise would have been payable.
|
10
11
12
13
14
15
2
3
4
5
6
7
8
9
10
11
12
- 2 -
- 3 -
- 4 -
- 5 -
- 6 -
- 7 -
- 8 -
- 9 -
- 10 -
- 11 -
- 12 -
- 13 -
- 14 -
- 15 -
- 16 -
- 17 -
- 18 -
- 19 -
- 20 -
- 21 -
- 22 -
- 23 -
- 24 -
- 25 -
Percentage of | ||||
Company Contribution | ||||
Years of Service | 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 | % |
Percentage of | ||||
Company Contribution | ||||
Years of Service | 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 | % |
- 26 -
- 27 -
- 28 -
- 29 -
- 30 -
- 31 -
- 32 -
- 33 -
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 |
- 34 -
- 35 -
- 36 -
- 37 -
- 38 -
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 |
- 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 -
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 |
- 64 -
[1] |
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.
|
|
[2] |
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 held for trading supporting the international variable
annuity business.
|
|
[3] |
NM: Not meaningful.
|
|
[4] |
This secondary ratio is disclosed for the convenience of fixed income
investors and the rating agencies that serve them and is more
comparable to the ratios disclosed by all issuers of fixed income
securities.
|
|
[5] |
Represents additional earnings that would be necessary to result in a
one to one ratio of consolidated earnings to fixed charges and
preference dividends. This amount is primarily due to before-tax
realized losses of $(5.9) billion, which includes before-tax
impairments of $(4.0) billion.
|
Form S-3 Registration No. | Form S-8 Registration Nos. | |
333-142044
|
333-105707 | |
|
333-049170 | |
|
333-105706 | |
|
333-034092 | |
|
033-080665 | |
|
333-012563 | |
|
333-125489 |
/s/ Ramani Ayer
|
/s/ Edward J. Kelly, III | |
|
||
Ramani Ayer
|
Edward J. Kelly, III | |
|
||
/s/ Thomas M. Marra
|
/s/ Paul G. Kirk, Jr. | |
|
||
Thomas M. Marra
|
Paul G. Kirk, Jr. | |
|
||
/s/ Lizabeth H. Zlatkus
|
/s/ Gail J. McGovern | |
|
||
Lizabeth H. Zlatkus
|
Gail J. McGovern | |
|
||
/s/ Beth A. Bombara
|
/s/ Michael G. Morris | |
|
||
Beth A. Bombara
|
Michael G. Morris | |
|
||
/s/ Ramon de Oliveira
|
/s/ Charles B. Strauss | |
|
||
Ramon de Oliveira
|
Charles B. Strauss | |
|
||
/s/ Trevor Fetter
|
/s/ H. Patrick Swygert | |
|
||
Trevor Fetter
|
H. Patrick Swygert | |
|
||
/s/ Robert B. Allardice III
|
||
Robert B. Allardice III
|
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 11, 2009 | /s/ Ramani Ayer | |||
Ramani Ayer | ||||
Chairman 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 11, 2009 | /s/ Lizabeth H. Zlatkus | |||
Lizabeth H. Zlatkus | ||||
Executive Vice President and Chief Financial Officer |
1) |
The Report fully complies with the requirements of section 13(a) or section 15(d) of
the Securities Exchange Act of 1934; and
|
2) |
The information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
|
Date: February 11, 2009 | /s/ Ramani Ayer | |||
Ramani Ayer | ||||
Chairman 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 11, 2009 | /s/ Lizabeth H. Zlatkus | |||
Lizabeth H. Zlatkus | ||||
Executive Vice President and Chief Financial Officer | ||||