The Hartford Financial Services Group, Inc. (HIG) 10-Q 29 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 23, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	HARTFORD FINANCIAL SERVICES GROUP INC/DE
Entity Central Index Key	0000874766
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			3.9
Entity Common Stock, Shares Outstanding		444,102,884

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues
Earned premiums	$3,527	$3,829
Fee income	1,189	1,167
Net investment income (loss):
Securities available-for-sale and other	1,060	920
Equity securities, trading	701	(724)
Total net investment income	1,761	196
Net realized capital gains (losses):
Total other-than-temporary impairment ("OTTI") losses	(340)	(224)
OTTI losses recognized in other comprehensive income	188
Net OTTI losses recognized in earnings	(152)	(224)
Net realized capital gains (losses), excluding net OTTI losses recognized in earnings	(124)	308
Total net realized capital gains (losses)	(276)	84
Other revenues	118	118
Total revenues	6,319	5,394
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	3,133	4,637
Benefits, losses and loss adjustment expenses - returns credited on International variable annuities	701	(724)
Amortization of deferred policy acquisition costs and present value of future profits	651	2,259
Insurance operating costs and expenses	919	898
Interest expense	120	120
Goodwill impairment		32
Other expenses	260	189
Total benefits, losses and expenses	5,784	7,411
Income (loss) before income taxes	535	(2,017)
Income tax expense (benefit)	216	(808)
Net income (loss)	319	(1,209)
Preferred stock dividends and accretion of discount	483
Net loss available to common shareholders	($164)	($1,209)
Earnings (Loss) per common share
Basic	-0.42	-3.77
Diluted	-0.42	-3.77
Weighted average common shares outstanding	393.7	320.8
Weighted average common shares outstanding and dilutive potential common shares	393.7	320.8
Cash dividends declared per common share	0.05	0.05

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Investments
Fixed maturities, available-for-sale, at fair value (amortized cost of $78,707 and $76,015) (includes variable interest entity assets, at fair value, of $953 as of March 31, 2010)	$75,584	$71,153
Equity securities, trading, at fair value (cost of $32,089 and $33,070)	32,053	32,321
Equity securities, available-for-sale, at fair value (cost of $1,197 and $1,333)	1,153	1,221
Mortgage loans (net of allowances for loan losses of $385 and $366)	5,162	5,938
Policy loans, at outstanding balance	2,177	2,174
Limited partnerships and other alternative investments (includes variable interest entity assets of $27 as of March 31, 2010)	1,736	1,790
Other investments	941	602
Short-term investments	8,545	10,357
Total investments	127,351	125,556
Cash	2,079	2,142
Premiums receivable and agents' balances	3,402	3,404
Reinsurance recoverables	5,179	5,384
Deferred policy acquisition costs and present value of future profits	10,270	10,686
Deferred income taxes	3,322	3,940
Goodwill	1,204	1,204
Property and equipment, net	1,032	1,026
Other assets	3,245	3,981
Separate account assets	160,198	150,394
Total assets	317,282	307,717
Reserve for future policy benefits and unpaid losses and loss adjustment expenses
Property and casualty	21,560	21,651
Life	17,990	17,980
Other policyholder funds and benefits payable	45,388	45,852
Other policyholder funds and benefits payable - International variable annuities	32,027	32,296
Unearned premiums	5,293	5,221
Short-term debt	275	343
Long-term debt	6,597	5,496
Consumer notes	834	1,136
Other liabilities (includes variable interest entity liabilities of $423 as of March 31, 2010)	9,280	9,454
Separate account liabilities	160,198	150,394
Total liabilities	299,442	289,823
Commitments and Contingencies (Note 9)
Equity
Preferred stock, $0.01 par value - 50,000,000 shares authorized, 575,000 and 3,400,000 shares issued, liquidation preference $1,000 per share	556	2,960
Common stock, $0.01 par value - 1,500,000,000 shares authorized, 469,769,804 and 410,184,182 shares issued	5	4
Additional paid-in capital	10,475	8,985
Retained earnings	11,006	11,164
Treasury stock, at cost - 25,842,652 and 27,177,019 shares	(1,825)	(1,936)
Accumulated other comprehensive loss, net of tax	(2,377)	(3,312)
Total stockholders' equity	17,840	17,865
Noncontrolling interest	0	29
Total equity	17,840	17,894
Total liabilities and equity	$317,282	$307,717

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Investments
Fixed maturities, available-for-sale, at amortized cost	$78,707	$76,015
Fixed maturities, available-for-sale, variable interest entity assets	953
Equity securities, trading, at cost	32,089	33,070
Equity securities, available-for-sale, at cost	1,197	1,333
Mortgage loans loss, net of allowances	385	366
Limited partnerships and other alternative investments, variable interest entity assets	27
Liabilities
Other liabilities, variable interest entity liabilities	$423
Equity
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	575,000	3,400,000
Preferred stock, liquidation preference per share	1,000	1,000
Common stock, par value	0.01	0.01
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	469,769,804	410,184,182
Treasury stock, shares	25,842,652	27,177,019

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Changes in E Q U I T Y (Unaudited) (USD $)
In Millions, except Share data in Thousands	Dec. 31, 2009 Previously reported Retained Earnings	Dec. 31, 2008 Previously reported Retained Earnings	Mar. 31, 2010 Stockholders' Equity	Mar. 31, 2009 Stockholders' Equity	3 Months Ended Mar. 31, 2010 Common Stock	3 Months Ended Mar. 31, 2009 Common Stock	Dec. 31, 2009 Common Stock	Dec. 31, 2008 Common Stock	3 Months Ended Mar. 31, 2010 Preferred Stock	3 Months Ended Mar. 31, 2009 Preferred Stock	Dec. 31, 2009 Preferred Stock	Dec. 31, 2008 Preferred Stock	3 Months Ended Mar. 31, 2010 Additional Paid-in Capital	3 Months Ended Mar. 31, 2009 Additional Paid-in Capital	Dec. 31, 2009 Additional Paid-in Capital	Dec. 31, 2008 Additional Paid-in Capital	3 Months Ended Mar. 31, 2010 Treasury Stock, at Cost	3 Months Ended Mar. 31, 2009 Treasury Stock, at Cost	Dec. 31, 2009 Treasury Stock, at Cost	Dec. 31, 2008 Treasury Stock, at Cost	3 Months Ended Mar. 31, 2010 Retained Earnings	3 Months Ended Mar. 31, 2009 Retained Earnings	12 Months Ended Dec. 31, 2009 Retained Earnings	Dec. 31, 2008 Retained Earnings	3 Months Ended Mar. 31, 2010 Accumulated Other Comprehensive Loss, Net of Tax	3 Months Ended Mar. 31, 2009 Accumulated Other Comprehensive Loss, Net of Tax	Dec. 31, 2009 Accumulated Other Comprehensive Loss, Net of Tax	Dec. 31, 2008 Accumulated Other Comprehensive Loss, Net of Tax	3 Months Ended Mar. 31, 2010 Noncontrolling Interest	3 Months Ended Mar. 31, 2009 Noncontrolling Interest	Dec. 31, 2009 Noncontrolling Interest	Dec. 31, 2008 Noncontrolling Interest
Preferred Stock
Balance at beginning of period									$2,960	$0			$8,985	$7,569			($1,936)	($2,120)			$11,190	$11,336	$11,336		($3,312)	($7,520)			$29	$92
Issuance of mandatory convertible preferred stock									556
Accelerated accretion of discount from redemption of preferred stock issued to the U.S. Treasury									440												440
Redemption of preferred stock issued to the U.S. Treasury									(3,400)
Balance at end of period	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Common Stock					5	4
Additional Paid-in Capital
Balance at beginning of period									2,960	0			8,985	7,569			(1,936)	(2,120)			11,190	11,336	11,336		(3,312)	(7,520)			29	92
Issuance of shares under public offering													1,599
Issuance of shares under incentive and stock compensation plans													(103)	(51)
Reclassification of warrants from other liabilities to equity														93
Tax (expense) benefit on employee stock options and awards													(6)	(11)
Balance at end of period	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Retained Earnings
Balance at beginning of period									2,960	0			8,985	7,569			(1,936)	(2,120)			11,190	11,336	11,336		(3,312)	(7,520)			29	92
Cumulative effect of accounting change, net of tax																							26
Net income (loss)																					319	(1,209)
Accelerated accretion of discount from redemption of preferred stock issued to the U.S. Treasury									(440)												(440)
Dividends on preferred stock																					(43)
Dividends declared on common stock																					(20)	(16)
Balance at end of period	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Treasury Stock, at Cost
Balance at beginning of period									2,960	0			8,985	7,569			(1,936)	(2,120)			11,190	11,336	11,336		(3,312)	(7,520)			29	92
Issuance of shares under incentive and stock compensation plans from treasury stock																	114	69
Return of shares under incentive and stock compensation plans to treasury stock																	(3)	(3)
Balance at end of period	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of period									2,960	0			8,985	7,569			(1,936)	(2,120)			11,190	11,336	11,336		(3,312)	(7,520)			29	92
Total other comprehensive income (loss)																									935	(281)
Balance at end of period	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Total stockholders' equity	11,164	11,336	17,840	7,860					556	0	2,960	0	10,475	7,600	8,985	7,569	(1,825)	(2,054)	(1,936)	(2,120)	11,006	10,111	11,190	11,336	(2,377)	(7,801)	(3,312)	(7,520)	0	27	29	92
Noncontrolling Interest (Note 13)
Balance at beginning of period									2,960	0			8,985	7,569			(1,936)	(2,120)			11,190	11,336	11,336		(3,312)	(7,520)			29	92
Change in noncontrolling interest ownership																														(64)
Noncontrolling loss																														(1)
Recognition of noncontrolling interest in other liabilities																													(29)
Balance at end of period	$11,164	$11,336	$17,840	$7,860					$556	$0	$2,960	$0	$10,475	$7,600	$8,985	$7,569	($1,825)	($2,054)	($1,936)	($2,120)	$11,006	$10,111	$11,190	$11,336	($2,377)	($7,801)	($3,312)	($7,520)	$0	$27	$29	$92
Outstanding Preferred Shares (in thousands)
Balance at beginning of period									3,400	6,048
Conversion of preferred to common shares										(6,048)
Issuance of mandatory convertible preferred shares					59,590				575
Redemption of preferred stock issued to the U.S. Treasury, shares									(3,400)
Balance at end of period									575	0	3,400	6,048
Outstanding Common Shares (in thousands)
Balance at beginning of period					383,007	300,579
Treasury stock acquired						(15)
Conversion of preferred to common shares						24,194
Issuance of shares under public offering					59,590				575
Issuance of shares under incentive and stock compensation plans					1,455	860
Return of shares under incentive and stock compensation plans to treasury stock					(125)	(183)
Balance at end of period					443,927	325,435	383,007	300,579

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Comprehensive Income (Loss)
Net income (loss)	$319	($1,209)
Other comprehensive income (loss)
Change in net unrealized gain (loss) on securities	859	(33)
Change in OTTI losses recognized in other comprehensive income	32
Change in net gain (loss) on cash-flow hedging instruments	66	(48)
Change in foreign currency translation adjustments	(36)	(209)
Amortization of prior service cost and actuarial net losses included in net periodic benefit costs	14	9
Total other comprehensive income (loss)	935	(281)
Total comprehensive income (loss)	$1,254	($1,490)

4_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating Activities
Net income (loss)	$319	($1,209)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Amortization of deferred policy acquisition costs and present value of future profits	651	2,259
Additions to deferred policy acquisition costs and present value of future profits	(680)	(734)
Change in reserve for future policy benefits and unpaid losses and loss adjustment expenses and unearned premiums	33	1,700
Change in reinsurance recoverables	45	(334)
Change in receivables and other assets	(180)	(21)
Change in payables and accruals	(109)	(396)
Change in accrued and deferred income taxes	128	(276)
Net realized capital (gains) losses	276	(84)
Net disbursements from investment contracts related to policyholder funds - International variable annuities	(257)	(387)
Net decrease in equity securities, trading	268	449
Depreciation and amortization	144	137
Goodwill impairment		32
Other operating activities, net	(150)	(126)
Net cash provided by operating activities	488	1,010
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	11,534	22,195
Equity securities, available-for-sale	108	311
Mortgage loans	726	27
Partnerships	145	153
Payments for the purchase of:
Fixed maturities, available-for-sale	(11,973)	(22,655)
Equity securities, available-for-sale	(15)	(207)
Mortgage loans	(18)	(20)
Partnerships	(72)	(81)
Derivatives, net	(252)	894
Change in policy loans, net	(3)	11
Change in payables for collateral under securities lending, net	(23)	(1,450)
Other investing activities, net	(58)	(189)
Net cash provided by (used for) investing activities	99	(1,011)
Financing Activities
Deposits and other additions to investment and universal life-type contracts	5,468	2,872
Withdrawals and other deductions from investment and universal life-type contracts	(5,614)	(4,715)
Net transfers from separate accounts related to investment and universal life-type contracts	124	2,136
Proceeds from issuance of long-term debt	1,090
Payments on capital lease obligations	(68)	(24)
Change in commercial paper	0	(21)
Repayments at maturity or settlement of consumer notes	(302)	(8)
Net proceeds from issuance of mandatory convertible preferred stock	556
Net proceeds from issuance of shares under public offering	1,600
Redemption of preferred stock issued to the U.S. Treasury	(3,400)
Proceeds from net issuance of shares under incentive and stock compensation plans and excess tax benefit	8	(7)
Dividends paid on preferred stock	(64)	(8)
Dividends paid on common stock	(20)	(99)
Changes in bank deposits and payments on bank advances	(30)
Net cash provided by (used for) financing activities	(652)	126
Foreign exchange rate effect on cash	2	(85)
Net increase (decrease) in cash	(63)	40
Cash - beginning of period	2,142	1,811
Cash - end of period	2,079	1,851
Net Cash Paid (Received) During the Period For:
Income taxes	87	(598)
Interest	$61	$70

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies
	3 Months Ended Mar. 31, 2010
Basis of Presentation and Accounting Policies [Abstract]
Basis of Presentation and Accounting Policies	1. Basis of Presentation and Accounting Policies Basis of Presentation The Hartford Financial Services Group, Inc. is a financial holding company for a group of subsidiaries that provide investment products and life and property and casualty insurance to both individual and business customers in the United States (collectively, The Hartford or the Company). The Condensed Consolidated Financial Statements have been prepared on the basis of accounting principles generally accepted in the United States of America (U.S. GAAP), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. The accompanying Condensed Consolidated Financial Statements and Notes as of March31, 2010, and for the three months ended March31, 2010 and 2009 are unaudited. These financial statements reflect all adjustments (consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in The Hartfords 2009 Form 10-K Annual Report. The results of operations for the interim periods should not be considered indicative of the results to be expected for the full year. Consolidation The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., companies in which the Company directly or indirectly has a controlling financial interest and those variable interest entities in which the Company is required to consolidate. Entities in which the Company has significant influence over the operating and financing decisions but are not required to consolidate are reported using the equity method. Material intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated. For further discussions on variable interest entities see Note 5 and Note 13. Reclassifications Certain reclassifications have been made to prior period financial information to conform to the current period classifications. Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty reserves, net of reinsurance; life estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on investments; living benefits required to be fair valued; goodwill impairment; valuation of investments and deriva

Earnings

Earnings (Loss) Per Share
	3 Months Ended Mar. 31, 2010
Earnings (Loss) Per Share [Abstract]
Earnings (Loss) Per Share	2. Earnings (Loss) Per Share The following table presents a reconciliation of net income (loss)and shares used in calculating basic earnings (loss)per common share to those used in calculating diluted earnings (loss)per common share. Three Months Ended March 31, (In millions, except for per share data) 2010 2009 Income (loss) Net income (loss) $ 319 $ (1,209 ) Less: Preferred stock dividends and accretion of discount 483 Net loss available to common shareholders $ (164 ) $ (1,209 ) Common shares Basic Weighted average common shares outstanding 393.7 320.8 Diluted Weighted average shares outstanding and dilutive potential common shares 393.7 320.8 Earnings (loss)per common share Basic $ (0.42 ) $ (3.77 ) Diluted $ (0.42 ) $ (3.77 ) On March23, 2010, The Hartford issued 23million depositary shares, each representing a 1/40th interest in The Hartfords 7.25% mandatory convertible preferred stock, SeriesF. These shares and the related dividend adjustment are included in diluted earnings per share, if dilutive, using the if converted method. For additional information on the mandatory convertible preferred stock see Note 13. As a result of the net loss available to common shareholders for the three months ended March31, 2010, the Company is required to use basic weighted average common shares outstanding in the calculation of the three months ended March31, 2010 diluted loss per share, since the inclusion of 1.2million shares for stock compensation plans, 33.6million shares for warrants and 3.4million shares for mandatory convertible preferred shares, along with the related dividend adjustment, would have been antidilutive to the earnings per share calculation. In the absence of the net loss available to common shareholders and assuming the impact of the mandatory convertible preferred shares was not antidilutive, weighted average common shares outstanding and dilutive potential common shares would have totaled 431.9million. As a result of the net loss in the three months ended March31, 2009, the Company is required to use basic weighted average common shares outstanding in the calculation of the three months ended March31, 2009 diluted loss per share, since the inclusion of 0.7million shares for stock compensation plans would have been antidilutive to the earnings per share calculation. In the absence of the net loss, weighted average common shares outstanding and dilutive potential common shares would have totaled 321.5million. Additionally, since the average market price of The Hartfords common stock did not exceed the exercise price of the Allianz warrants for the three months ended March31, 2009, the 321.5million includes no dilutive effect for these warrants.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information [Abstract]
Segment Information	3. Segment Information The Hartford is organized into two major operations: Life and Property Casualty, each containing reporting segments. Within the Life and Property Casualty operations, The Hartford conducts business principally in eleven reporting segments. Corporate primarily includes the Companys debt financing and related interest expense, as well as other capital raising activities, banking operations and certain purchase accounting adjustments. Life Effective for first quarter 2010 reporting, Life made changes to its segments as described below. Life changed its reporting structure to realign mutual funds businesses into Retirement from Global Annuity U.S (formerly the Retail Products Group or Retail). In addition, certain fee income and commission expenses associated with sales of non-proprietary products by broker-dealer subsidiaries have been moved from Global Annuity U.S. to Life Other, with no impact on net income in either Global Annuity U.S. or Life Other. The impact of these changes on the annual periods presented in The Hartfords 2009 Annual Report on Form 10-K, which annual periods are not contained in the accompanying interim financial statements, is disclosed in the following tables: As Reported in the Realignment of Movement of Segment 2009 Annual Report Mutual Fund Non-Proprietary Results, Revenues on Form 10-K Businesses Product Results As Revised For the year ended December31, 2009 Global Annuity U.S. (formerly Retail) $ 2,132 $ (517 ) $ (149 ) $ 1,466 Retirement 324 517 841 Life Other 58 149 207 For the year ended December31, 2008 Global Annuity U.S. (formerly Retail) $ 2,753 $ (666 ) $ (150 ) $ 1,937 Retirement 338 666 1,004 Life Other 60 150 210 For the year ended December31, 2007 Global Annuity U.S. (formerly Retail) $ 3,055 $ (688 ) $ (140 ) $ 2,227 Retirement 242 688 930 Life Other 67 140 207 As Reported in the Realignment of Segment 2009 Annual Report Mutual Fund Results, Net Income (Loss) on Form 10-K Businesses As Revised For the year ended December31, 2009 Global Annuity U.S. (formerly Retail) $ (410 ) $ (34 ) $ (444 ) Retirement (222 ) 34 (188 ) For the year ended December31, 2008 Global Annuity U.S. (formerly Retail) $ (1,399 ) $ (37 ) $ (1,436 ) Retirement (157 ) 37 (120 ) For the year ended December31, 2007 Global Annuity U.S. (formerly Retail) $ 812 $ (65 ) $ 747 Retirement 61 65 126 Life is now organized into six reporting segments, Global Annuity U.S. (formerly Retail), Global Annuity

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements [Abstract]
Fair Value Measurements - Financial Instruments Excluding Guaranteed Living Benefits	4. Fair Value Measurements Financial Instruments Excluding Guaranteed Living Benefits The following financial instruments are carried at fair value in the Companys Condensed Consolidated Financial Statements: fixed maturities and equity securities, available-for-sale (AFS), equity securities, trading, short-term investments, freestanding and embedded derivatives, separate account assets and certain other liabilities. The following section and Note 4a apply the fair value hierarchy and disclosure requirements for the Companys financial instruments that are carried at fair value. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad Levels (Level 1, 2 or 3). Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 1 securities include highly liquid U.S. Treasuries, money market funds and exchange traded equity, open-ended mutual funds reported in separate account assets and derivative securities, including futures and certain option contracts. Level 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Most fixed maturities and preferred stocks, including those reported in separate account assets, are model priced by vendors using observable inputs and are classified within Level 2. Also included in the Level 2 category are derivative instruments that are priced using models with significant observable market inputs, including interest rate, foreign currency and certain credit swap contracts and have no significant unobservable market inputs. Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Level 3 securities include less liquid securities such as highly structured and/or lower quality asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), commercial real estate (CRE) collateralized debt obligations (CDOs), residential mortgage-backed securities (RMBS) primarily backed by below- prime loans, and private placement securities. Also included in Level 3 are guaranteed product embedded and reinsurance derivatives and other complex derivative securities, including customized guaranteed minimum withdrawal benefit (GMWB) hedging derivatives (see Note 4a for further information on GMWB product related financial instruments), equity derivatives, long dated derivatives, swaps with optionality, certain complex credit derivatives and certain other liabilities. Because Level 3 fair values, by their nature, contain unobservable market inputs as there is little or no observable market for these assets and liabilities, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the Companys best estimate of an amount that could be realized in a current market exchange absent actual market exchanges. In many situations, inputs used to measure the fair value of an ass
Fair Value Measurements - Guaranteed Living Benefits	4a. Fair Value Measurements Guaranteed Living Benefits These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments related to guaranteed living benefits and the related hedging program and information about the inputs used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following tables present assets and (liabilities)related to the guaranteed living benefits program carried at fair value by hierarchy level. March 31, 2010 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets accounted for at fair value on a recurring basis Variable annuity hedging derivatives $ 270 $ $ $ 270 Macro hedge program 139 4 30 105 Reinsurance recoverable for U.S. GMWB 295 295 Total assets accounted for at fair value on a recurring basis $ 704 $ 4 $ 30 $ 670 Liabilities accounted for at fair value on a recurring basis Other policyholder funds and benefits payable U.S. guaranteed withdrawal benefits $ (1,655 ) $ $ $ (1,655 ) International guaranteed withdrawal benefits (31 ) (31 ) International other guaranteed living benefits 4 4 Variable annuity hedging derivatives (125 ) (166 ) 41 Macro hedge program 66 20 46 Total liabilities accounted for at fair value on a recurring basis $ (1,741 ) $ $ (146 ) $ (1,595 ) December 31, 2009 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets accounted for at fair value on a recurring basis Variable annuity hedging derivatives $ 9 $ $ $ 9 Macro hedge program 203 8 16 179 Reinsurance recoverable for U.S. GMWB 347 347 Total assets accounted for at fair value on a recurring basis $ 559 $ 8 $ 16 $ 535 Liabilities accounted for at fair value on a recurring basis Other policyholder funds and benefits payable U.S. guaranteed withdrawal benefits $ (1,957 ) $ $ $ (1,957 ) International guaranteed withdrawal benefits (45 ) (45 ) International other guaranteed living benefits 2 2 Variable annuity hedging deriv

Investments and Derivative Inst

Investments and Derivative Instruments
	3 Months Ended Mar. 31, 2010
Investments and Derivative Instruments [Abstract]
Investments and Derivative Instruments	5. Investments and Derivative Instruments Significant Investment Accounting Policies Recognition and Presentation of Other-Than-Temporary Impairments The Company deems debt securities and certain equity securities with debt-like characteristics (collectively debt securities) to be other-than-temporarily impaired (impaired) if a security meets the following conditions: a) the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the securitys amortized cost basis and the fair value is separated into the portion representing a credit other-than-temporary impairment (impairment), which is recorded in net realized capital losses, and the remaining impairment, which is recorded in OCI. Generally, the Company determines a securitys credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the securitys effective yield prior to impairment. The remaining non-credit impairment, which is recorded in OCI, is the difference between the securitys fair value and the Companys best estimate of expected future cash flows discounted at the securitys effective yield prior to the impairment. The remaining non-credit impairment typically represents current market liquidity and risk premiums. The change in non-credit impairments recognized in OCI as disclosed in the Companys Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March31, 2010, of $32 is net of OTTI losses recognized in OCI of $(188), changes in fair value and/or sales of $254 and net of tax and deferred acquisition costs of $(34). The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the securitys new cost basis. The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the securitys yield, if necessary. The Company evaluates whether a credit impairment exists for debt securities by considering primarily the following factors: (a)changes in the financial condition of the securitys underlying collateral, (b)whether the issuer is current on contractually obligated interest and principal payments, (c)changes in the financial condition, credit rating and near-term prospects of the issuer, (d)the extent to which the fair value has been less than the amortized cost of the security and (e)the payment structure of the security. The Companys best estimate of expected future cash flows used to determine the credit lo

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs and Present Value of Future Profits
	3 Months Ended Mar. 31, 2010
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract]
Deferred Policy Acquisition Costs and Present Value of Future Profits	6. Deferred Policy Acquisition Costs and Present Value of Future Profits Life Changes in deferred policy acquisition costs and present value of future profits are as follows: 2010 2009 Balance, January 1 $ 9,423 $ 11,988 Deferred Costs 170 222 Amortization DAC (222 ) (392 ) Amortization Unlock, pre-tax 1, 2 79 (1,344 ) Adjustments to unrealized gains and losses on securities available-for-sale and other 3 (441 ) 513 Effect of currency translation (4 ) (159 ) Balance, March 31 $ 9,005 $ 10,828 1 The most significant contributor to the Unlock benefit recorded during the first quarter of 2010 was actual separate account returns from January1, 2010 to March31, 2010 being above our aggregated estimated return. 2 The most significant contributor to the Unlock amounts recorded during the first quarter of 2009 was actual separate account returns from the period ending October1, 2008 to March31, 2009 being significantly below our aggregated estimated return. 3 The adjustment reflects the effect of credit spreads tightening, resulting in unrealized gains on securities in 2010. Property Casualty Changes in deferred policy acquisition costs are as follows: 2010 2009 Balance, January 1 $ 1,263 $ 1,260 Deferred costs 510 512 Amortization Deferred policy acquisition costs (508 ) (523 ) Balance, March 31 $ 1,265 $ 1,249

Separate Accounts, Death Benefi

Separate Accounts, Death Benefits and Other Insurance Benefit Features
	3 Months Ended Mar. 31, 2010
Separate Accounts, Death Benefits and Other Insurance Benefit Features [Abstract]
Separate Accounts, Death Benefits and Other Insurance Benefit Features	7. Separate Accounts, Death Benefits and Other Insurance Benefit Features U.S. GMDB, Japan GMDB/GMIB, and UL Secondary Guarantee Benefits Changes in the gross U.S. GMDB, Japan GMDB/GMIB, and UL secondary guarantee benefits are as follows: UL Secondary U.S. GMDB 1 Japan GMDB/GMIB 1 Guarantees 1 Liability balance as of January1, 2010 $ 1,233 $ 580 $ 76 Incurred 63 28 9 Paid (78 ) (29 ) Unlock (58 ) (20 ) Currency translation adjustment (2 ) Liability balance as of March31, 2010 $ 1,160 $ 557 $ 85 1 The reinsurance recoverable asset related to the U.S. GMDB was $748 as of March31, 2010. The reinsurance recoverable asset related to the Japan GMDB was $33 as of March31, 2010. The reinsurance recoverable asset related to the UL secondary guarantees was $24 as of March 31, 2010. UL Secondary U.S. GMDB 1 Japan GMDB/GMIB 1 Guarantees 1 Liability balance as of January1, 2009 $ 870 $ 229 $ 40 Incurred 108 29 7 Paid (161 ) (41 ) Unlock 1,051 534 Currency translation adjustment (23 ) Liability balance as of March31, 2009 $ 1,868 $ 728 $ 47 1 The reinsurance recoverable asset related to the U.S. GMDB was $1,116 as of March31, 2009. The reinsurance recoverable asset related to the Japan GMDB was $49 as of March31, 2009. The reinsurance recoverable asset related to the UL secondary guarantees was $17 as of March 31, 2009. The following table provides details concerning GMDB and GMIB exposure as of March31, 2010: Breakdown of Individual Variable and Group Annuity Account Value by GMDB/GMIB Type Retained Net Weighted Average Account Net Amount Amount Attained Age of Maximum anniversary value (MAV) 1 Value at Risk 10 at Risk 10 Annuitant MAV only $ 27,277 $ 7,358 $ 2,054 67 With 5% rollup 2 1,857 595 223 67 With Earnings Protection Benefit Rider (EPB) 3 6,640 1,210 123 64 With 5% rollup EPB 780 197 40 66 Total MAV 36,554 9,360 2,440 Asset Protection Benefit (APB) 4 28,770 4,571 2,932 64 Lifetime Income Benefit (LIB) Death Benefit 5 1,343 169 169 62 Reset 6 (5-7years) 3,811 389 386 67 Return of Premium (ROP) 7/Other 22,216 1,156 1,120 64 Subtotal U.S. GMDB 8 92,694 15,645 7,047 65 Less: General Account Value Subject to U.S. GMDB 6,753 Subtotal Separate Account Liabilities with U.S. GMDB 85,941 Separate Account Liabilities without U.S. GMDB 74,257

Sales Inducements

Sales Inducements
	3 Months Ended Mar. 31, 2010
Sales Inducements [Abstract]
Sales Inducements	8. Sales Inducements Changes in deferred sales inducement activity were as follows for the three months ended March31: 2010 2009 Balance, January 1 $ 438 $ 553 Sales inducements deferred 8 15 Amortization (8 ) (39 ) Amortization Unlock 4 (69 ) Balance, March 31 $ 442 $ 460

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Litigation The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties discussed below under the caption Asbestos and Environmental Claims, management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford. The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, life and inland marine; improper sales practices in connection with the sale of life insurance and other investment products; and improper fee arrangements in connection with investment products. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Companys consolidated results of operations or cash flows in particular quarterly or annual periods. Broker Compensation Litigation Following the New York Attorney Generals filing of a civil complaint against Marsh McLennan Companies, Inc., and Marsh, Inc. (collectively, Marsh) in October2004 alleging that certain insurance companies, including The Hartford, participated with Marsh in arrangements to submit inflated bids for business insurance and paid contingent commissions to ensure that Marsh would direct business to them, private plaintiffs brought several lawsuits against the Company predicated on the allegations in the Marsh complaint, to which the Company was not party. Among these is a multidistri

Pension Plans and Postretiremen

Pension Plans and Postretirement Health Care and Life Insurance Benefit Plans
	3 Months Ended Mar. 31, 2010
Pension Plans and Postretirement Health Care and Life Insurance Benefit Plans [Abstract]
Pension Plans and Postretirement Health Care and Life Insurance Benefit Plans	10. Pension Plans and Postretirement Health Care and Life Insurance Benefit Plans Components of Net Periodic Benefit Cost Total net periodic benefit cost for the three months ended March31, 2010 includes the following components: Pension Benefits Other Postretirement Benefits 2010 2009 2010 2009 Service cost $ 27 $ 26 $ 2 $ 1 Interest cost 62 60 5 6 Expected return on plan assets (71 ) (69 ) (3 ) (3 ) Amortization of prior service credit (2 ) (2 ) Amortization of actuarial loss 26 18 Net periodic benefit cost $ 42 $ 33 $ 4 $ 4

Stock Compensation Plans

Stock Compensation Plans
	3 Months Ended Mar. 31, 2010
Stock Compensation Plans [Abstract]
Stock Compensation Plans	11. Stock Compensation Plans The Companys stock-based compensation plans include The Hartford 2005 Incentive Stock Plan, The Hartford Employee Stock Purchase Plan and The Hartford Deferred Stock Unit Plan. For a description of these plans, see Note 18 of Notes to Consolidated Financial Statements included in The Hartfords 2009 Form 10-K Annual Report. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by the Company in treasury or from shares purchased in the open market. The Company typically issues shares from treasury in satisfaction of stock-based compensation. The compensation expense recognized for the stock-based compensation plans was $22 and $13 for the three months ended March31, 2010 and 2009, respectively. The income tax benefit recognized for stock-based compensation plans was $8 and $4 for the three months ended March31, 2010 and 2009, respectively. The Company did not capitalize any cost of stock-based compensation. As of March31, 2010, the total compensation cost related to non-vested awards not yet recognized was $149, which is expected to be recognized over a weighted average period of 1.9years.

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
Debt	12. Debt Senior Notes On March23, 2010, The Hartford issued $1.1billion aggregate principal amount of its senior notes. The issuance consisted of $300 of 4.0% senior notes due March30, 2015, $500 of 5.5% senior notes due March30, 2020 and $300 of 6.625% senior notes due March30, 2040. The senior notes bear interest at their respective rate, payable semi-annually in arrears on March30 and September30 of each year, beginning September30, 2010.

Equity

Equity
	3 Months Ended Mar. 31, 2010
Equity [Abstract]
Equity	13. Equity Issuance of Common Stock On March23, 2010, The Hartford issued approximately 59.6million shares of common stock at a price to the public of $27.75 per share and received net proceeds of $1.6billion. Issuance of SeriesF Preferred Stock On March23, 2010, The Hartford issued 23million depositary shares, each representing a 1/40th interest in The Hartfords 7.25% mandatory convertible preferred stock, SeriesF, at a price of $25 per depositary share and received net proceeds of approximately $556. The Company will pay cumulative dividends on each share of the mandatory convertible preferred stock at a rate of 7.25% per annum on the initial liquidation preference of $1,000 per share. Dividends will accrue and cumulate from the date of issuance and, to the extent that the Company is legally permitted to pay dividends and its board of directors declares a dividend payable, the Company will, from July1, 2010 until and including January1, 2013 pay dividends on each January1, April1, July 1 and October1, in cash and (whether or not declared prior to that date) on April1, 2013 will pay or deliver, as the case may be, dividends in cash, shares of its common stock, or a combination thereof, at its election. Dividends on and repurchases of the Companys common stock will be subject to restrictions in the event that the Company fails to declare and pay, or set aside for payment, dividends on the SeriesF preferred stock. The 575,000 shares of mandatory convertible preferred stock, SeriesF, will automatically convert into shares of common stock on April1, 2013, if not earlier converted at the option of the holder, at any time, or upon the occurrence of a fundamental change. The number of shares issuable upon mandatory conversion of each share of mandatory convertible preferred stock will be a variable amount based on the average of the daily volume weighted average price per share of the Companys common stock during a specified period of 20 consecutive trading days with the number of shares of common stock ranging from 29.536 to 36.036 per share of mandatory convertible preferred stock, subject to anti-dilution adjustments. Redemption of SeriesE Preferred Stock issued under the Capital Purchase Program On March31, 2010, the Company repurchased all 3.4million shares of SeriesE preferred stock issued to the U.S. Treasury (the Treasury) for an aggregate purchase price of $3.4billion and made a final dividend payment of $22 on the SeriesE preferred stock. The Company recorded a $440 charge to retained earnings representing the acceleration of the accretion of the remaining discount on the SeriesE preferred stock. Treasury continues to hold warrants to purchase approximately 52million shares of the Companys common stock at an exercise price of $9.79 per share. During the Companys participation in the Capital Purchase Program (CPP), the Company was subject to numerous additional regulations, including restrictions on the ability to increase the common stock dividend, limitations on the compensation arrangements for senior executives and additional corporate governance standards. As a result of the redemption of SeriesE Preferred St