The Hartford 2008 Annual Report Download - page 405

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Investments and Derivative Instruments (continued)
The following tables present the Company’s unrealized loss aging for total fixed maturity and equity securities classified as
available-for-sale, by investment type and length of time the security was in a continuous unrealized loss position.
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
ABS $ 1,870 $ 1,487 $ (383) $ 6,811 $ 4,586 $ (2,225) $ 8,681 $ 6,073 $ (2,608)
CMBS — Non-agency
backed 5,986 4,354 (1,632) 8,110 3,737 (4,373) 14,096 8,091 (6,005)
CMOs
Agency backed 75 68 (7) 34 33 (1) 109 101 (8)
Non-agency backed 332 235 (97) 82 55 (27) 414 290 (124)
Corporate 16,604 14,145 (2,459) 7,028 4,986 (2,042) 23,632 19,131 (4,501)
Government/government
agencies
Foreign 1,263 1,211 (52) 43 30 (13) 1,306 1,241 (65)
United States 4,120 4,083 (37) 66 64 (2) 4,186 4,147 (39)
MBS 50 50 — 250 243 (7) 300 293 (7)
States, municipalities and
political subdivisions 5,153 4,640 (513) 2,578 2,138 (440) 7,731 6,778 (953)
Total fixed maturities 35,453 30,273 (5,180) 25,002 15,872 (9,130) 60,455 46,145 (14,310)
Equity securities,
available-for-sale 1,017 796 (221) 277 199 (78) 1,294 995 (299)
Total temporarily impaired
securities $ 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
ABS $ 7,811 $ 7,222 $ (589) $ 671 $ 627 $ (44) $ 8,482 $ 7,849 $ (633)
CMBS — Non-agency
backed 8,138 7,453 (685) 3,400 3,247 (153) 11,538 10,700 (838)
CMOs
Agency backed 324 321 (3) 89 88 (1) 413 409 (4)
Non-agency backed 120 118 (2) 54 53 (1) 174 171 (3)
Corporate 13,849 13,165 (684) 4,873 4,615 (258) 18,722 17,780 (942)
Government/government
agencies
Foreign 226 221 (5) 66 66 — 292 287 (5)
United States 216 213 (3) 14 14 — 230 227 (3)
MBS 56 56 — 1,033 1,013 (20) 1,089 1,069 (20)
States, municipalities and
political subdivisions 3,157 3,081 (76) 342 328 (14) 3,499 3,409 (90)
Redeemable preferred stock 6 6 — — — — 6 6 —
Total fixed maturities 33,903 31,856 (2,047) 10,542 10,051 (491) 44,445 41,907 (2,538)
Equity securities,
available-for-sale 1,675 1,442 (233) 21 20 (1) 1,696 1,462 (234)
Total temporarily impaired
securities $ 35,578 $ 33,298 $ (2,280) $ 10,563 $ 10,071 $ (492) $ 46,141 $ 43,369 $ (2,772)
As of December 31, 2008, available-for-sale securities in an unrealized loss position, comprised of approximately 6,612
securities, were primarily concentrated in securitized assets, specifically CMBS and financial services sector securities. The
increase in unrealized losses was largely the result of credit spread widening primarily due to continued deterioration in the
U.S. housing market, tightened lending conditions and the market’s flight to quality securities, as well as, a U.S. recession
and a declining global economy.
As of December 31, 2008, 65% of securities in an unrealized loss position were depressed less than 20% of amortized cost.
Based upon the Company’s current evaluation of these securities in accordance with its impairment policy and the
Company’s intent to retain these investments for a period of time sufficient to allow for recovery in value, the Company has
determined that these securities are temporarily impaired.
F-47
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009