Pricing Supplement No. 22 dated Filed pursuant to Rule 424(b)(5)
January 3, 2005. (To Prospectus File No. 333-112244
dated September 7, 2004 and Prospectus
Supplement dated September 7, 2004)
This Pricing Supplement consists of 6 pages.
HARTFORD LIFE INSURANCE COMPANY
DEPOSITOR
FLOATING RATE INCOMENOTES(sm)
ISSUED THROUGH
HARTFORD LIFE GLOBAL FUNDING TRUST 2005-001
FLOATING RATE NOTES DUE JANUARY 15, 2017
The description in this pricing supplement of the particular terms of the
Floating Rate IncomeNotes(sm) offered hereby and the Funding Agreement sold by
Hartford Life Insurance Company to the Trust specified herein supplements the
description of the general terms and provisions of the notes and the funding
agreements set forth in the accompanying prospectus and prospectus supplement,
to which reference is hereby made.
INVESTING IN NOTES INVOLVES RISKS. SEE "ADDITIONAL RISK FACTORS" BEGINNING ON
PAGE 3 OF THIS PRICING SUPPLEMENT AND "RISK FACTORS" BEGINNING ON PAGE 4 OF THE
ACCOMPANYING PROSPECTUS.
PROVISIONS RELATING TO THE NOTES
Principal Amount: $7,401,000.00 Issuance Date: January 6, 2005
Price to Public: 100% Stated Maturity Date: January 15, 2017
Net Proceeds to Trust: $7,271,483.00 Initial Interest Payment Date: February 15, 2005
Agent's Discount: 1.75% Interest Payment Frequency: Monthly
CUSIP Number: 41659FAW4 Regular Record Dates: 15 days prior to an Interest Payment Date.
Day Count Convention: 30/360
Base Rate:
[ ] CD Rate [ ] LIBOR If LIBOR: [ ] LIBOR Reuters Page
[ ] CMT Rate [ ] Prime Rate [ ] LIBOR Telerate Page
[ ] Commercial Paper Rate [ ] Treasury Rate Designated LIBOR Currency:
[ ] Federal Funds Rate [X] Other (See Attached)
If CMT Rate, Telerate Page: [ ] 7051 [ ] 7052
Interest Reset Dates: Each Interest Payment Date If 7052: [ ] Weekly Average [ ] Monthly Average
Designated CMT Maturity Index:
Initial Interest Reset Date: February 15, 2005
Index Maturity: Not Applicable.
Interest Rate Determination Dates: The fifth
Business Day prior to each Interest Reset Date. Spread: +1.60% Spread Multiplier: None.
Maximum Interest Rate: None. Minimum Interest Rate: 0.00%
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Floating Rate/Fixed Rate Note: [ ] Yes [X] No Computation of Interest: See Attached.
If yes: Fixed Rate:
Fixed Rate Commencement Date:
Optional Redemption: Yes [ ] No [X] The Survivor's Option [X] is [ ] is not available
Optional Redemption Date: N/A Annual Put Limitation: $1 million or 1%
Initial Redemption Percentage: N/A Individual Put Limitation: $250,000
Annual Percentage Reduction: N/A Trust Put Limitation: N/A
Redemption may be: [ ] In whole only.
[ ] In whole or in part.
Discount Note: [ ] Yes [X] No If Yes: Authorized Denominations: $1,000 integral amounts.
Total Amount of Discount: Calculation Agent: JPMorgan Chase Bank, N.A.
Yield to Maturity:
Sinking Fund: None. Securities Exchange Listing: None.
Special Tax Considerations: Interest payable on the Notes will be treated as
"qualified stated interest" for United States federal income tax purposes, as it
meets the specified criteria referenced in the prospectus supplement under the
heading "Material United States Federal Income Tax Considerations--U.S.
Holders--INTEREST AND ORIGINAL ISSUE DISCOUNT".
Other Provisions Relating to the Notes: See Attached.
Agents : Bear, Stearns & Co. Inc., A.G. Edwards & Sons, Inc., Banc of America
Securities LLC, Charles Schwab & Co., Inc., Citigroup, HSBC, JPMorgan, Merrill
Lynch & Co., Morgan Stanley, Raymond James, RBC Dain Rauscher, Inc., Scott &
Stringfellow, Inc., UBS Financial Services, Inc., Wachovia Securities, WM
Financial Services
INFORMATION RELATING TO THE FUNDING AGREEMENT
Funding Agreement Provider: Hartford Life Insurance Company
Funding Agreement: FA-405001 Effective Date: January 6, 2005
Contract Payment: $7,401,015.00 Stated Maturity Date: January 15, 2017
Deposit Amount: $7,271,498.00 Initial Interest Payment Date: February 15, 2005
(if different from Contract Payment)
Initial Interest Rate: 5.12% Day Count Convention: 30/360
Interest Payment Frequency: Monthly
Base Rate:
[ ] CD Rate [ ] LIBOR If LIBOR: [ ] LIBOR Reuters Page
[ ] CMT Rate [ ] Prime Rate [ ] LIBOR Telerate Page
[ ] Commercial Paper Rate [ ] Treasury Rate Designated LIBOR Currency:
[ ] Federal Funds Rate [X] Other (See Attached)
If CMT Rate, Telerate Page: [ ] 7051 [ ] 7052
Interest Reset Frequency: Each Interest Payment Date If 7052: [ ] Weekly Average [ ] Monthly Average
Designated CMT Maturity Index:
Initial Interest Reset Date: February 15, 2005
Index Maturity: Not Applicable.
Interest Rate Determination Date: The fifth Business
Day prior to each Interest Reset Date. Spread: +1.60% Spread Multiplier: None.
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Maximum Interest Rate: None. Floating/Fixed Rate Funding Agreement: [ ] Yes [x] No
If yes: Fixed Rate:
Minimum Interest Rate: 0.00% Fixed Rate Commencement Date:
Optional Redemption: Yes [ ] No [X] Survivor Option: Under the Funding Agreement, Hartford Life
Optional Redemption Date: N/A Insurance Company [X] is [ ] is not required
to provide the Trust with amounts it needs to
Initial Redemption Percentage: N/A honor valid exercises of the Survivor's Option.
Annual Percentage Reduction: N/A
Redemption may be: [ ] In whole only. Other Provisions Relating to the Funding
Agreement: See Attached.
[ ] In whole or in part.
Computation of Interest: See Attached. Amortizing Funding Agreement: [ ] Yes (See attached) [ X] No
Discount Funding Agreement: [ ] Yes [X] No If yes: Special Tax Considerations: None.
Total Amount of Discount:
Yield to Maturity:
Note: The Opinion regarding the enforceability of the Funding Agreement and the
related Consent of Counsel for Hartford Life Insurance Company is given by
Jonathan Mercier, Counsel.
INFORMATION PERTAINING TO THE RATINGS OF THE NOTES AND THE FUNDING AGREEMENT
It is anticipated that, as of January 6, 2005, both the Notes and the Funding
Agreement will be rated by the indicated rating agencies as follows:
Standard & Poor's: AA- Moody's: Aa3
The Moody's rating also extends to the Program under which the Notes are issued.
ADDITIONAL RISK FACTORS
THE ACCOMPANYING PROSPECTUS AND THIS PRICING SUPPLEMENT DO NOT DESCRIBE
ALL OF THE RISKS AND OTHER RAMIFICATIONS OF AN INVESTMENT IN THE NOTES. AN
INVESTMENT IN NOTES LINKED TO THE CONSUMER PRICE INDEX ("CPI") ENTAILS
SIGNIFICANT RISKS NOT ASSOCIATED WITH AN INVESTMENT IN A CONVENTIONAL FIXED RATE
OR FLOATING RATE DEBT SECURITY. INVESTORS SHOULD CONSULT THEIR OWN FINANCIAL AND
LEGAL ADVISORS ABOUT THE RISKS ASSOCIATED WITH AN INVESTMENT IN THE NOTES AND
THE SUITABILITY OF INVESTING IN THE NOTES IN LIGHT OF THEIR PARTICULAR
CIRCUMSTANCES, AND POSSIBLE SCENARIOS FOR ECONOMIC, INTEREST RATE AND OTHER
FACTORS THAT MAY AFFECT THEIR INVESTMENT.
YOUR INTEREST RATE IS BASED ON THE CPI.
Your interest payments will be affected by changes in the
non-seasonally adjusted U.S. City Average All Items Consumer Price Index for All
Urban Consumers, published monthly by the Bureau of Labor Statistics (the
"CPI"). Such changes may be significant. Changes in the CPI are a function of
the changes in specified consumer prices over time, which result from the
interaction of many factors over which we have no control.
HISTORICAL CHANGES TO THE CPI ARE NOT NECESSARILY INDICATIVE OF FUTURE
CHANGES.
Movements in the CPI that have occurred in the past are not necessarily
indicative of changes that may occur in the future, which may be WIDER or MORE
CONFINED than those that have occurred historically. The CPI is a measure of the
average levels in consumer prices over time in a fixed market basket of goods
and services. In calculating the CPI, price levels for the various items are
averaged together with weights that represent their relative importance in the
spending of urban households in the United States. The contents of the market
basket of goods and services and the weights assigned to the various items are
updated periodically to take into account changes in consumer expenditure
patterns. Investors should not rely on any historical changes or trends in the
CPI as an indicator of future changes in the CPI.
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DURING PERIODS OF LOW INFLATION OR DEFLATION, THE INTEREST RATE
APPLICABLE TO THE NOTES COULD BE AS LOW AS 0.00%.
During periods of reduced inflation, the amount of interest payable on
the notes will decrease. In a period of deflation, the CPI Adjustment Rate (as
defined below) would be negative. This could result in an interest rate below
the Spread and as low as 0.00%.
THE INTEREST RATE ON THE NOTES MAY BE LESS THAN THE RATE ON COMPARABLE
FIXED OR FLOATING RATE DEBT SECURITIES.
Because the long-term trend in CPI changes has been positive, the
initial interest rate may be below what would be paid, as of a current date on
comparable debt securities with a fixed or floating rate and similar maturity
and credit quality to that of the notes. Even though the long-term trend in CPI
changes has been positive, at any future date, the interest rate on the notes
may be below what we would expect to pay as of such date if we issued
non-callable senior debt securities with a fixed or floating rate and similar
maturity to that of the notes.
CHANGES IN THE CPI MAY NOT CORRELATE WITH CHANGES IN INTEREST RATE
INDICES.
Changes in the CPI may bear little or no relationship to changes in
interest rate indices (such as those described in the Prospectus Supplement)
that may be applicable to other floating rate notes. As a result, your interest
rate may be below the interest rates payable on other otherwise comparable
floating rate debt securities. In addition, the calculation of the CPI
Adjustment Rate CPI incorporates an approximate three-month lag, which will
affect the amount of interest payable on the notes and may have an impact on the
trading prices of the notes, particularly in periods of significant and rapid
changes in the CPI.
THE CPI ITSELF AND THE WAY THE BUREAU OF LABOR STATISTICS CALCULATES
THE CPI MAY CHANGE IN THE FUTURE.
There can be no assurance that the Bureau of Labor Statistics will not
change the method by which it calculates the CPI. In addition, changes in the
way the CPI is calculated could reduce the level of the CPI and lower the
interest payment with respect to the notes. Accordingly, the amount of interest,
if any, payable on the notes, and therefore the value of the notes, may be
significantly reduced. If the CPI is substantially altered, a substitute index
may be employed to calculate the interest payable on the notes, as described
below. That substitution may adversely affect the value of the notes.
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INTEREST RATE ATTACHMENT
BASE RATE:
The interest rate basis for the notes and the funding agreement is the
CPI Adjustment Rate (as defined below) for each interest payment period, based
on the percentage change in the non-seasonally adjusted U.S. City Average All
Items Consumer Price Index for All Urban Consumers (the "CPI"), published
monthly by the Bureau of Labor Statistics of the U.S. Department of Labor
("BLS"), and calculated as described in this pricing supplement. The CPI
Adjustment Rate may be a positive or negative rate in any interest payment
period. The CPI is a measure of the average levels in consumer prices over time
for a fixed market basket of goods and services, including food, clothing,
shelter, fuels, transportation, charges for doctors and dentists services, and
drugs. In calculating the index, price levels for the various items are averaged
together with weights that represent their importance in the spending of urban
households in the United States. The contents of the market basket of goods and
services and the weights assigned to the various items are updated periodically
by the BLS to take into account changes in consumer expenditure patterns. The
CPI is expressed in relative terms in relation to a time base reference period
for which the level is set at 100.0. The base reference period for the Notes is
the 1982-1984 average.
Historical Data on the Consumer Price Index
The table below sets forth the CPI as published by the BLS of the months listed.
Historical fluctuations in the CPI are not necessarily indicative of future
fluctuations, which may be greater or less than those that have occurred
historically.
LEVEL OF THE CONSUMER PRICE INDEX
(as published by the Bureau of Labor Statistics)
January February March April May June July August September October November December
-------------------------------------------------------------------------------------------------------------------------
2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0
2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3
2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9
2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7
2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0
1999 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3
1998 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.4 163.6 164.0 164.0 163.9
COMPUTATION OF INTEREST:
CALCULATION OF CPI ADJUSTMENT RATE: The CPI Adjustment Rate for each Interest
Reset Period is determined as of each Interest Rate Determination Date using the
following formula:
(CPI(t)-CPI(t-12))/CPI(t-12) where:
CPI(t): Current Index Level of CPI (as defined below), as published on
Bloomberg CPURNSA; and
CPI(t-12): Index Level of CPI for the month 12 months prior to CPI(t).
All percentages resulting from any calculation on the notes will be rounded to
the nearest one hundredth of a percentage point, with five one-thousandths of a
percentage point rounded upwards, e.g., 9.876% (or .09876) would be rounded to
9.88% (or .0988).
CALCULATION OF INTEREST RATE: The CPI Adjustment Rate determined on an Interest
Rate Determination Date is used to calculate the interest rate effective on the
next Interest Reset Date. That interest rate is equal to the CPI Adjustment Rate
plus the Spread indicated earlier in this pricing supplement.
CPI: CPI(t) for each Interest Payment Date is the CPI for the second calendar
month prior to the applicable Interest Rate Determination Date, as published and
reported in the calendar month immediately prior to such Interest Rate
Determination Date. For example, if notes were outstanding for the period from
and including November 15, 2004 to but excluding December
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15, 2004, CPI(t) would be the CPI for September 2004, which was 189.9, and
CPI(t-12) would be the CPI for September 2003, which was 185.2. The CPI for
September 2004 was published by BLS and reported on Bloomberg CPURNSA in October
2004, and the CPI for September 2003 was published and reported in October 2003.
If the CPI is not reported on Bloomberg CPURNSA for a particular month
by 3:00 PM on an Interest Rate Determination Date, but has otherwise been
published by the BLS, the Calculation Agent will determine the CPI as published
by the BLS for such month using such other source as on its face, and after
consultation with us, appears to accurately set forth the CPI as published by
the BLS. If the CPI has not been discontinued but has not been reported on
Bloomberg CPURNSA or published by BLS for a particular month by 3:00 PM on an
Interest Rate Determination Date, CPI for such date shall be the CPI for the
immediately preceding Interest Rate Determination Date.
In calculating CPI(t) and CPI(t-12) the Calculation Agent will use the
most recently available value of the CPI for any month, determined as described
above on the applicable Interest Rate Determination Date, even if such value has
been adjusted from a prior reported value for the relevant month. However, if a
value of CPI(t) and CPI(t-12) used by the Calculation Agent on any Interest Rate
Determination Date to determine the interest rate on the notes (an "Initial
CPI") is subsequently revised by the BLS, the Calculation Agent will continue to
use the Initial CPI, and the interest rate determined will not be revised. If
the CPI is rebased to a different year or period, the base reference period for
the notes will continue to be the 1982-1984 reference period as long as the
1982-1984 CPI continues to be published.
If, while the notes are outstanding, the CPI is discontinued or, if in
the opinion of the BLS, as evidenced by a public release, and if concurred with
by us, substantially altered, the applicable substitute index for the notes will
be that chosen by the Secretary of the Treasury for the Department of Treasury's
Inflation-Linked Treasuries as described at 62 Federal Register 846-874 (January
6, 1997). If no such securities are outstanding, the substitute index for the
notes will be determined by the Calculation Agent as directed by us in
accordance with general market practice at the time, provided that the procedure
for determining the resulting interest rate is administratively acceptable to
the Calculation Agent.
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