================================================================================
FORM 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the year ended December 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from _______ to ____________
Commission file number 0-19277
A. Full title of Plan and the address of the Plan, if different from that of
the issuer named below:
THE HARTFORD INVESTMENT AND SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the Plan and the address
of its principal executive office:
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Hartford Plaza, Hartford, Connecticut 06115-1900
================================================================================
THE HARTFORD INVESTMENT AND SAVINGS PLAN
CONTENTS
December 30, 1998 AND 1997
Pages
Report of Independent Public Accountants F-1
Statement of Net Assets Available for Benefits With Fund
Information as of December 30, 1998 F-2, F-3
Statement of Net Assets Available for Benefits With Fund
Information as of December 30, 1997 F-4, F-5
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the Year Ended December 30, 1998 F-6, F-7
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the Period from January 1,
1997 to December 30, 1997 F-8, F-9
Notes to Financial Statements F-10 - F-14
Item 27a - Schedule of Assets Held for Investment Purposes
- Part I as of December 30, 1998 F-15 - F-17
Item 27b - Schedule of Loans or Fixed Income obligations
- For the year ended December 30, 1998 F-18 - F-24
Item 27d - Schedule of Reportable Transactions - For the
year ended December 30, 1998 F-25
Signature F-26
Exhibit 1 - Consent of Independent Public Accountants F-27
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Hartford Financial Services Group, Inc.:
We have audited the accompanying Statements of Net Assets Available for Benefits
with Fund Information of The Hartford Investment and Savings Plan as of December
30, 1998 and December 30, 1997, and the related Statements of Changes in Net
Assets Available for Benefits with Fund Information for the year ended December
30, 1998 and the period from January 1, 1997 to December 30, 1997. These
financial statements and the schedules referred to below are the responsibility
of the Plan Administrator. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of The Hartford
Investment and Savings Plan as of December 30, 1998 and December 30, 1997, and
the changes in net assets available for benefits for the year ended December 30,
1998 and the period from January 1, 1997 to December 30, 1997, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules on pages F-15
through F-25 are presented for purposes of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
June 25, 1999
F-1
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
Non-Member |
Directed | Member Directed
-------------------------------------------------------
The Hartford | The
Hartford Life | Hartford
Company Company | Company
Total Stock Fund Stock Fund |Stock Fund Index Fund
- -------------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-
14,226,085 shares $ 794,000 $ 601,852 $ -- $ 192,148 $ --
Hartford Life common stock-
1,383,950 shares 80,788 -- 51,866 -- --
Standard & Poor's 500 Index Portfolio 250,491 -- -- -- 250,491
Mutual funds 127,858 -- -- -- --
Pooled temporary investments 26,221 11,882 169 3,793 --
Investment in group annuity contracts,
at contract value 273,244 -- -- -- --
Loans receivable 40,115 -- -- -- --
Dividends and interest receivable 4,765 2,439 83 779 33
Contributions receivable 3,339 1,027 184 328 562
Unsettled net security (purchases) sales (163) -- -- -- --
----------------------------------------------------------------------
Total assets 1,600,658 617,200 52,302 197,048 251,086
----------------------------------------------------------------------
Liabilities
Interfund transfers pending -- 96 20 31 33
----------------------------------------------------------------------
Total liabilities -- 96 20 31 33
----------------------------------------------------------------------
Net assets available for benefits $ 1,600,658 $ 617,104 52,282 $ 197,017 $ 251,053
- ---------------------------------------------======================================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
-----------------------------------------------------------------
Bond
Stable Income Money
Value MidCap Advisers Strategy Market
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-
14,226,085 shares $ -- $ -- $ -- $ -- $ --
Hartford Life common stock-
1,383,950 shares -- -- -- -- --
Standard & Poor's 500 Index Portfolio -- -- -- -- --
Mutual funds -- 2,639 55,982 8,501 5,313
Pooled temporary investments 10,283 -- -- -- --
Investment in group annuity contracts,
at contract value 273,244 -- -- -- --
Loans receivable -- -- -- -- --
Dividends and interest receivable 1,385 -- -- -- --
Contributions receivable 490 12 187 36 18
Unsettled net security (purchases) sales -- -- (44) (16) (85)
-----------------------------------------------------------------
Total assets 285,402 2,651 56,125 8,521 5,246
-----------------------------------------------------------------
Liabilities
Interfund transfers pending 7 -- (44) (16) (85)
-----------------------------------------------------------------
Total liabilities 7 -- (44) (16) (85)
-----------------------------------------------------------------
Net assets available for benefits $ 285,395 $ 2,651 $ 56,169 $ 8,537 $ 5,331
- ---------------------------------------------=================================================================
The accompanying notes are an integral part of these financial statements.
F-2
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
- ------------------------------------------------------------------------------------------------------
Dividend & International Capital Small
Growth Opportunities Appreciation Company
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-14,226,085
shares $ -- $ -- $ -- $ --
Hartford Life common stock-
1,383,950 shares -- -- -- --
Standard & Poor's 500 Index Portfolio -- -- -- --
Mutual funds 15,329 7,859 21,179 11,056
Pooled temporary investments -- -- -- --
Investment in group annuity contracts,
at contract value -- -- -- --
Loans receivable -- -- -- --
Dividends and interest receivable -- -- -- --
Contributions receivable 94 49 159 71
Unsettled net security (purchases) sales (12) (20) 20 (6)
----------------------------------------------------------
Total assets 15,411 7,888 21,358 11,121
----------------------------------------------------------
Liabilities
Interfund transfers pending (12) (20) 20 (6)
----------------------------------------------------------
Total liabilities (12) (20) 20 (6)
----------------------------------------------------------
Net assets available for benefits $ 15,423 $ 7,908 $ 21,338 $ 11,127
- --------------------------------------------==========================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
- -------------------------------------------------------------------------------------------------------------
Hartford Life ITT Industries
Company Starwood Stock Company Stock Loan
Stock Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-14,226,085
shares $ -- $ -- $ -- $ --
Hartford Life common stock-
1,383,950 shares 28,922 -- -- --
Standard & Poor's 500 Index Portfolio -- -- -- --
Mutual funds -- -- -- --
Pooled temporary investments 94 -- -- --
Investment in group annuity contracts,
at contract value -- -- -- --
Loans receivable -- -- -- 40,115
Dividends and interest receivable 46 -- -- --
Contributions receivable 102 -- -- 20
Unsettled net security (purchases) sales -- -- -- --
-----------------------------------------------------------------
Total assets 29,164 -- -- 40,135
-----------------------------------------------------------------
Liabilities
Interfund transfers pending 11 -- -- (35)
-----------------------------------------------------------------
Total liabilities 11 -- -- (35)
-----------------------------------------------------------------
Net assets available for benefits $ 29,153 $ -- $ -- $ 40,170
- --------------------------------------------=================================================================
The accompanying notes are an integral part of these financial statements.
F-3
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1997
($ IN THOUSANDS)
Non-Member |
Directed | Member Directed
-------------------------------------------------------
The Hartford | The
Hartford Life | Hartford
Company Company | Company
Total Stock Fund Stock Fund |Stock Fund Index Fund
- -------------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-
10,315,750 shares $ 477,103 $ 359,736 $ -- $ 117,367 $ --
Hartford Life common stock-
384,718 shares 16,928 -- 7,093 -- --
Starwood common stock- 2,534,944 shares 209,450 -- -- -- --
ITT Industries, Inc. common stock-
2,624,437 shares 79,881 -- -- -- --
Standard & Poor's 500 Index Portfolio 191,181 -- -- -- 191,181
Mutual funds 81,205 -- -- -- --
Pooled temporary investments 37,317 7,107 29 2,319 --
Investment in group annuity contracts,
at contract value 249,619 -- -- -- --
Loans receivable 37,973 -- -- -- --
Dividends and interest receivable 2,636 1,590 -- 519 --
Contributions receivable 3,086 974 91 318 558
Unsettled net security sales (purchases) 896 -- 41 -- 31
----------------------------------------------------------------------
Total assets 1,387,275 369,407 7,254 120,523 191,770
----------------------------------------------------------------------
Liabilities
Interfund transfers pending -- 517 31 168 31
Other liabilities 21 -- -- -- 36
----------------------------------------------------------------------
Total liabilities 21 517 31 168 67
----------------------------------------------------------------------
Net assets available for benefits $ 1,387,254 $ 368,890 $ 7,223 $ 120,355 $ 191,703
- ---------------------------------------------======================================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
-----------------------------------------------------------------
Bond
Stable Income Money
Value Balanced Advisers Strategy Market
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock-
10,315,750 shares $ -- $ -- $ -- $ -- $ --
Hartford Life common stock-
384,718 shares -- -- -- -- --
Starwood common stock- 2,534,944 shares -- -- -- -- --
ITT Industries, Inc. common stock-
2,624,437 shares -- -- -- -- --
Standard & Poor's 500 Index Portfolio -- -- -- -- --
Mutual funds -- -- 38,574 2,697 2,444
Pooled temporary investments 14,255 -- -- -- --
Investment in group annuity contracts,
at contract value 249,619 -- -- -- --
Loans receivable -- -- -- -- --
Dividends and interest receivable 68 -- -- -- --
Contributions receivable 555 -- 162 14 9
Unsettled net security sales (purchases) -- -- 26 (26) (29)
-----------------------------------------------------------------
Total assets 264,497 -- 38,762 2,685 2,424
-----------------------------------------------------------------
Liabilities
Interfund transfers pending (1,011) -- 26 (26) (29)
Other liabilities -- -- -- -- (11)
-----------------------------------------------------------------
Total liabilities (1,011) -- 26 (26) (40)
-----------------------------------------------------------------
Net assets available for benefits $ 265,508 $ -- $ 38,736 $ 2,711 $ 2,464
- --------------------------------------------==================================================================
The accompanying notes are an integral part of these financial statements.
F-4
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
- ------------------------------------------------------------------------------------------------------
Dividend & International Capital Small
Growth Opportunities Appreciation Company
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock- 10,315,750
shares $ -- $ -- $ -- $ --
Hartford Life common stock-
384,718 shares -- -- -- --
Starwood common stock- 2,534,944
shares -- -- -- --
ITT Industries, Inc. common stock-
2,624,437 shares -- -- -- --
Standard & Poor's 500 Index Portfolio -- -- -- --
Mutual funds 7,544 4,305 17,899 7,742
Pooled temporary investments -- -- -- --
Investment in group annuity contracts,
at contract value -- -- -- --
Loans receivable -- -- -- --
Dividends and interest receivable -- -- -- --
Contributions receivable 54 37 129 60
Unsettled net security (purchases) sales (42) (2) (47) (43)
---------------------------------------------------------
Total assets 7,556 4,340 17,981 7,759
---------------------------------------------------------
Liabilities
Interfund transfers pending (42) (2) (47) (43)
Other liabilities -- -- -- --
---------------------------------------------------------
Total liabilities (42) (2) (47) (43)
---------------------------------------------------------
Net assets available for benefits $ 7,598 $ 4,342 $ 18,028 $ 7,802
- --------------------------------------------=========================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
- -------------------------------------------------------------------------------------------------------------
Hartford Life ITT Industries
Company Starwood Stock Company Stock Loan
Stock Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
Assets
Investments, at fair value:
The Hartford common stock- 10,315,750
shares $ -- $ -- $ -- $ --
Hartford Life common stock-
384,718 shares 9,835 -- -- --
Starwood common stock- 2,534,944
shares -- 209,450 -- --
ITT Industries, Inc. common stock-
2,624,437 shares -- -- 79,881 --
Standard & Poor's 500 Index Portfolio -- -- -- --
Mutual funds -- -- -- --
Pooled temporary investments 40 9,643 3,924 --
Investment in group annuity contracts,
at contract value -- -- -- --
Loans receivable -- -- -- 37,973
Dividends and interest receivable 1 43 415 --
Contributions receivable 125 -- -- --
Unsettled net security (purchases) sales 56 931 -- --
-----------------------------------------------------------------
Total assets 10,057 220,067 84,220 37,973
-----------------------------------------------------------------
Liabilities
Interfund transfers pending 42 312 100 (27)
Other liabilities -- -- -- (4)
-----------------------------------------------------------------
Total liabilities 42 312 100 (31)
-----------------------------------------------------------------
Net assets available for benefits $ 10,015 $ 219,755 $ 84,120 $ 38,004
- --------------------------------------------=================================================================
The accompanying notes are an integral part of these financial statements.
F-5
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
Non-Member |
Directed | Member Directed
-------------------------------------------------------
The Hartford | The
Hartford Life | Hartford
Company Company | Company
Total Stock Fund Stock Fund |Stock Fund Index Fund
- -------------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 177,866 $ 90,577 $ 9,555 $ 28,918 $ 55,441
Dividends and interest 35,306 8,719 282 2,783 --
---------------------------------------------------------------------
Total investment income (loss) 213,172 99,296 9,837 31,701 55,441
Interest on participant loans 3,482 908 76 290 732
Repayment of participant loans -- 4,646 434 1,483 3,443
Employee contributions 57,217 10,881 981 3,474 14,397
Employer contributions, net of
forfeitures 23,875 13,949 3,263 4,453 68
Rollovers 6,830 746 210 238 1,096
Other, net 34 1,973 3,843 (1,952) (1)
---------------------------------------------------------------------
Total additions (deductions) 304,610 132,399 18,644 39,687 75,176
---------------------------------------------------------------------
Deductions from Net Assets
Attributed to:
Interfund transfers -- 151,599 28,261 48,400 268
Loans to participants -- (5,295) (356) (1,691) (4,292)
Administrative expense (2,634) (890) (47) (284) (359)
Withdrawals (88,572) (29,599) (1,443) (9,450) (11,443)
---------------------------------------------------------------------
Total additions (deductions) (91,206) 115,815 26,415 36,975 (15,826)
---------------------------------------------------------------------
Net increase (decrease) 213,404 248,214 45,059 76,662 59,350
Net Assets Available for Benefits
Beginning of year 1,387,254 368,890 7,223 120,355 191,703
---------------------------------------------------------------------
End of year $ 1,600,658 $ 617,104 $ 52,282 $ 197,017 $ 251,053
- --------------------------------------------=====================================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
-----------------------------------------------------------------
Bond
Stable Income Money
Value MidCap Advisers Strategy Market
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ -- $ 189 $ 7,471 $ 49 $ --
Dividends and interest 16,713 -- 1,826 379 149
--------------------------------------------------------------------
Total investment income (loss) 16,713 189 9,297 428 149
Interest on participant loans 945 4 182 24 15
Repayment of participant loans 4,082 20 867 106 140
Employee contributions 12,582 168 4,525 675 316
Employer contributions, net of
forfeitures 167 4 40 12 3
Rollovers 768 77 596 242 470
Other, net -- -- (5) -- (11)
--------------------------------------------------------------------
Total additions (deductions) 35,257 462 15,502 1,487 1,082
--------------------------------------------------------------------
Deductions from Net Assets
Attributed to:
Interfund transfers 12,250 2,270 4,940 4,719 2,713
Loans to participants (5,778) (7) (1,019) (119) (93)
Administrative expense (493) (2) (83) (10) (5)
Withdrawals (21,349) (72) (1,907) (251) (830)
--------------------------------------------------------------------
Total additions (deductions) (15,370) 2,189 1,931 4,339 1,785
--------------------------------------------------------------------
Net increase (decrease) 19,887 2,651 17,433 5,826 2,867
Net Assets Available for Benefits
Beginning of year 265,508 -- 38,736 2,711 2,464
--------------------------------------------------------------------
End of year $ 285,395 $ 2,651 $ 56,169 $ 8,537 $ 5,331
- --------------------------------------------====================================================================
The accompanying notes are an integral part of these financial statements.
F-6
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
- ------------------------------------------------------------------------------------------------------
Dividend & International Capital Small
Growth Opportunities Appreciation Company
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 1,298 $ 528 $ 508 $ 856
Dividends and interest 216 28 132 90
----------------------------------------------------------
Total investment income (loss) 1,514 556 640 946
Interest on participant loans 57 34 125 48
Repayment of participant loans 272 152 578 212
Employee contributions 1,917 1,114 3,927 1,713
Employer contributions, net of
forfeitures 34 13 33 17
Rollovers 686 219 991 374
Other, net -- (2) 1 1
----------------------------------------------------------
Total additions (deductions) 4,480 2,086 6,295 3,311
----------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers 3,992 1,809 (1,535) 676
Loans to participants (277) (142) (537) (170)
Administrative expense (20) (11) (37) (16)
Withdrawals (350) (176) (876) (476)
----------------------------------------------------------
Total additions (deductions) 3,345 1,480 (2,985) 14
----------------------------------------------------------
Net increase (decrease) 7,825 3,566 3,310 3,325
Net Assets Available for Benefits
Beginning of year 7,598 4,342 18,028 7,802
----------------------------------------------------------
End of year $ 15,423 $ 7,908 $ 21,338 $ 11,127
- ------------------------------------------==========================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
Member Directed
- -------------------------------------------------------------------------------------------------------------
Hartford Life ITT Industries
Company Starwood Stock Company Stock Loan
Stock Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 5,328 $ (28,620) $ 5,768 $ --
Dividends and interest 158 2,711 1,120 --
-----------------------------------------------------------------
Total investment income (loss) 5,486 (25,909) 6,888 --
Interest on participant loans 42 -- -- --
Repayment of participant loans 242 -- -- (16,677)
Employee contributions 547 -- -- --
Employer contributions, net of
forfeitures 1,820 (1) -- --
Rollovers 117 -- -- --
Other, net (3,846) (1) (1) 35
-----------------------------------------------------------------
Total additions (deductions) 4,408 (25,911) 6,887 (16,642)
-----------------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers 15,759 (188,921) (87,214) 14
Loans to participants (198) (460) (364) 20,798
Administrative expense (26) (209) (142) --
Withdrawals (805) (4,254) (3,287) (2,004)
-----------------------------------------------------------------
Total additions (deductions) 14,730 (193,844) (91,007) 18,808
-----------------------------------------------------------------
Net increase (decrease) 19,138 (219,755) (84,120) 2,166
Net Assets Available for Benefits
Beginning of year 10,015 219,755 84,120 38,004
-----------------------------------------------------------------
End of year $ 29,153 $ -- $ -- $ 40,170
- --------------------------------------------=================================================================
The accompanying notes are an integral part of these financial statements.
F-7
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997
($ IN THOUSANDS)
Non-Member |
Directed | Member Directed
-------------------------------------------------------
The Hartford | The
Hartford Life | Hartford
Company Company | Company
Total Stock Fund Stock Fund |Stock Fund Index Fund
- -------------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 319,616 $ 94,961 $ 861 $ 30,982 $ 47,821
Dividends and interest 29,813 6,349 34 2,072 120
---------------------------------------------------------------------
Total investment income (loss) 349,429 101,310 895 33,054 47,941
Interest on participant loans 2,762 721 14 235 621
Repayment of participant loans -- 3,216 88 1,049 2,790
Employee contributions 51,722 10,473 161 3,417 14,341
Employer contributions, net of
forfeitures 21,644 14,368 1,043 4,688 26
Rollovers 7,421 891 50 291 1,413
Other, net 205 2,018 -- (1,999) 1
---------------------------------------------------------------------
Total additions (deductions) 433,183 132,997 2,251 40,735 67,133
---------------------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers -- 12,818 5,094 4,182 (4,753)
Loans to participants -- (5,717) (37) (1,864) (5,800)
Administrative expense (2,662) (688) (4) (224) (407)
Withdrawals (81,996) (19,342) (81) (6,301) (8,673)
---------------------------------------------------------------------
Total additions (deductions) (84,658) (12,929) 4,972 (4,207) (19,633)
---------------------------------------------------------------------
Net increase (decrease) 348,525 120,068 7,223 36,528 47,500
Net Assets Available for Benefits
Beginning of period 1,038,729 248,822 83,827 144,203
---------------------------------------------------------------------
End of period $ 1,387,254 $ 368,890 $ 7,223 $ 120,355 $ 191,703
- --------------------------------------------=====================================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
-----------------------------------------------------------------
Bond
Stable Income Money
Value Balanced Advisers Strategy Market
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ -- $ -- $ 6,225 $ 32 $ --
Dividends and interest 16,723 -- 807 106 71
--------------------------------------------------------------------
Total investment income (loss) 16,723 -- 7,032 138 71
Interest on participant loans 862 4 154 8 6
Repayment of participant loans 3,963 (35) 673 33 29
Employee contributions 14,797 -- 4,427 177 138
Employer contributions, net of
forfeitures 228 (213) 11 3 1
Rollovers 898 -- 614 223 270
Other, net 108 16 66 -- 11
--------------------------------------------------------------------
Total additions (deductions) 37,579 (228) 12,977 582 526
--------------------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers (6,234) (26,167) 28,636 2,234 2,332
Loans to participants (8,480) 11 (1,288) (64) (81)
Administrative expense (604) -- (75) (2) (3)
Withdrawals (26,711) -- (1,514) (39) (310)
--------------------------------------------------------------------
Total additions (deductions) (42,029) (26,156) 25,759 2,129 1,938
--------------------------------------------------------------------
Net increase (decrease) (4,450) (26,384) 38,736 2,711 2,464
Net Assets Available for Benefits
Beginning of period 269,958 26,384 -- -- --
--------------------------------------------------------------------
End of period $ 265,508 $ -- $ 38,736 $ 2,711 $ 2,464
- --------------------------------------------====================================================================
The accompanying notes are an integral part of these financial statements.
F-8
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
- ------------------------------------------------------------------------------------------------------
Dividend & International Capital Small
Growth Opportunities Appreciation Company
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 847 $ (169) $ 1,199 $ 116
Dividends and interest 129 97 607 331
----------------------------------------------------------
Total investment income (loss) 976 (72) 1,806 447
Interest on participant loans 21 20 53 24
Repayment of participant loans 121 88 242 104
Employee contributions 716 548 1,523 780
Employer contributions, net of
forfeitures 13 5 14 8
Rollovers 700 331 1,031 640
Other, net -- -- -- --
----------------------------------------------------------
Total additions (deductions) 2,547 920 4,669 2,003
----------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers 5,440 3,798 14,128 6,106
Loans to participants (190) (116) (370) (166)
Administrative expense (8) (6) (15) (8)
Withdrawals (191) (254) (384) (133)
----------------------------------------------------------
Total additions (deductions) 5,051 3,422 13,359 5,799
----------------------------------------------------------
Net increase (decrease) 7,598 4,342 18,028 7,802
Net Assets Available for Benefits
Beginning of period -- -- -- --
----------------------------------------------------------
End of period $ 7,598 $ 4,342 $ 18,028 $ 7,802
- ------------------------------------------==========================================================
The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997
($ IN THOUSANDS)
(continued)
Member Directed
- -------------------------------------------------------------------------------------------------------------
Hartford Life ITT Industries
Company Starwood Stock Company Stock Loan
Stock Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
Additions to Net Assets Attributed to:
Investment income:
Net realized and unrealized gains
(losses) $ 1,194 $ 117,996 $ 17,551 $ --
Dividends and interest 45 511 1,811 --
-----------------------------------------------------------------
Total investment income (loss) 1,239 118,507 19,362 --
Interest on participant loans 19 -- -- --
Repayment of participant loans 121 (19) (11) (12,452)
Employee contributions 224 -- -- --
Employer contributions, net of
forfeitures 1,449 (36) 36 --
Rollovers 69 -- -- --
Other, net -- 74 (25) (65)
-----------------------------------------------------------------
Total additions (deductions) 3,121 118,526 19,362 (12,517)
-----------------------------------------------------------------
Deductions from Net Assets Attributed
to:
Interfund transfers 7,063 (39,245) (15,432) --
Loans to participants (51) (2,143) (909) 27,265
Administrative expense (6) (420) (192) --
Withdrawals (112) (11,164) (5,222) (1,565)
-----------------------------------------------------------------
Total additions (deductions) 6,894 (52,972) (21,755) 25,700
-----------------------------------------------------------------
Net increase (decrease) 10,015 65,554 (2,393) 13,183
Net Assets Available for Benefits
Beginning of period -- 154,201 86,513 24,821
-----------------------------------------------------------------
End of period $ 10,015 $ 219,755 $ 84,120 $ 38,004
- --------------------------------------------=================================================================
The accompanying notes are an integral part of these financial statements.
F-9
THE HARTFORD INVESTMENT AND SAVING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 30, 1998 AND 1997
(Dollar amounts in thousands)
NOTE 1. DESCRIPTION OF THE PLAN
The Hartford Financial Services Group, Inc., a Delaware corporation, and its
consolidated subsidiaries ("The Hartford" or the "Company") provide property and
casualty and life insurance to both individual and commercial customers in the
United States and internationally.
The Hartford was a wholly-owned subsidiary of ITT Corporation ("ITT" which was
renamed ITT Industries, Inc.). On December 19, 1995, ITT distributed all of the
outstanding shares of The Hartford to ITT shareholders of record in an action
known herein as the "Distribution". Through the date of the Distribution,
eligible employees of the Company participated in the ITT Investment and Savings
Plan for Salaried Employees ("ITT Plan"). Subsequent to the Distribution, the
Company established The Hartford Investment and Savings Plan (The "Plan",
formerly ITT Investment and Savings Plan) for the benefit of eligible employees
of The Hartford. The accounts of employees who had participated in the ITT Plan
were transferred to the Plan. On the date of Distribution holders of common
stock of ITT, including the ITT Plan, received one share of ITT Destinations,
Inc. (renamed "ITT Corporation") common stock, one share of ITT Industries, Inc.
common stock and one share of The Hartford common stock for each share of ITT
common stock held. Shares in each of The Hartford, ITT Corporation, and ITT
Industries, Inc. have been held in separate funds. In February 1998, ITT
Corporation was acquired by Starwood Hotels & Resorts Worldwide, Inc.
("Starwood") and the ITT Corporation Company Stock Fund became the Starwood
Stock Fund. Both the ITT Industries and Starwood Stock Funds were terminated on
September 1, 1998. The balances in those two funds were transferred to The
Hartford Company Stock Fund or for employees of Hartford Life, Inc. ("Hartford
Life" or "HLI"), the holding company parent of The Hartford's significant life
insurance subsidiaries, Hartford Life Company Stock Fund.
On May 21, 1998, The Hartford's Board of Directors authorized a two-for-one
stock split effected in the form of a 100% stock dividend distributed on July
15, 1998 to shareholders of record as of June 24, 1998. Share information has
been restated on a retroactive basis to reflect the effect of the stock split.
Information with regard to eligibility, contributions, distributions, vesting,
trustees, withdrawals, restoration, loans, fund redistribution and definitions
of all capitalized terms are contained in the Plan's information document, which
has been distributed to the participants.
In 1997, the Plan's year end was changed from December 31 to December 30.
General
- -------
The Plan is a defined contribution plan covering all full-time and some
part-time employees of the Company who have six months or more of service and
who have attained age 19. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA").
The Trust, as defined in the Plan document, is the aggregate funds held by the
Trustee, Bankers Trust Company, under the trust agreement or agreements
established for the purposes of this Plan or the aggregate funds held under an
insurance contract or contracts established with The Hartford or its
subsidiaries or affiliates.
Contributions
- -------------
Plan members may generally elect to save 2% to 16% of base salary. Members may
designate their savings as before-tax, after-tax or a combination of both.
Members who are highly compensated employees may be limited to less than 16% due
to the operation of certain tests required under the Internal Revenue Code of
1986 (the "Code"), as amended.
An amount equal to 50% of a member's Basic Savings is matched by the Company.
Basic Savings are contributions which are not in excess of the first 6% of base
salary. Member's savings in excess of 6% of base salary are supplemental savings
that are not matched by Company contributions. In addition, the Company
allocates .50% of
F-10
NOTES TO FINANCIAL STATEMENTS (Continued)
base salary to the Floor Company Contribution Account of each eligible employee.
Matching Company contributions and Floor Company contributions are invested in
The Hartford Company Stock Fund, or for employees of Hartford Life, Hartford
Life Company Stock Fund.
Effective December 30, 1998 for Plan year 1999 and December 30, 1997 for Plan
year 1998, the Company guaranteed a fixed minimum contribution (based on a
percentage of the amount of employer contributions normally made) that
represents the employee salary deferral contributions and matching contributions
for the subsequent Plan year. If actual contributions are less than the
guaranteed fixed minimum amount at the end of the Plan year, then an additional
matching contribution would be made to the participants. The minimum
contribution was met for the 1998 Plan year.
Administrative Costs
- --------------------
The Trust, as defined by the Plan, pays for the administrative expenses of the
Plan up to 0.25% of the market value of Trust assets. The Company continues to
pay Plan administrative expenses which are not paid by the Trust.
Member Accounts
- ---------------
Each member's account is credited with that member's contributions and
allocations of (a) the Company's contribution and (b) Plan earnings, and is
charged with an allocation of administrative expenses. Allocations are based on
member earnings or account balances, as defined. The benefit to which a member
is entitled is the benefit that can be provided from that member's vested
account.
Vesting
- -------
Vesting in the Company-matched contributions begins one year after employment at
20% and increases 20% each consecutive year until the fifth consecutive year of
employment when 100% is vested. Notwithstanding the foregoing statement, a
member becomes fully vested in such member's Company contribution account upon
retirement, disability, death, or upon reaching age 65, or the complete
discontinuance of Company contributions or upon termination of the Plan. Floor
contributions are 100% vested when allocated to each member's account
Investment Options
- ------------------
Contributions of member savings are invested in any one or more of the funds
listed below (with the exception of Starwood Stock Fund and ITT Industries
Company Stock Fund, which were terminated as of September 1, 1998), in multiples
of 1%, as elected by the member. During 1998, the Plan added one new investment
option; while eight new investment options were added during 1997.
[1] The Hartford This fund's investment objective is to seek
Company Stock long-term capital appreciation by investing in the
Fund common stock of The Hartford.
[1] Index Fund This fund's investment objective is to seek
investment results that track the overall
performance of the stocks in the Standard & Poor's
("S&P") 500 Stock Index by investing in stocks in
the S&P 500 Stock Index.
[1] Stable Value Fund This fund's investment objective is to seek a
stable and predictable rate of return and
preservation of capital by investing in group
annuity contracts issued by a diversified group of
high-quality life insurance companies, including
an affiliate, Hartford Life, deposit agreements
issued by a diversified group of high-quality
banks, U.S. government obligations and
asset-backed securities.
Balanced Fund A fund invested through an actively managed
portfolio consisting of equity securities, fixed
income securities and cash equivalents. This fund
was closed and assets were transferred to the
Advisers Fund on January 2, 1997.
F-11
NOTES TO FINANCIAL STATEMENTS (Continued)
[1],[2] MidCap Fund This fund's investment objective is to seek
capital appreciation by investing primarily in
stock with market capitalization in the range
represented by the S&P MidCap 400 index.
[1],[3] Advisers Fund The fund's investment objective is to seek
long-term total return by investing primarily in
the stocks of U.S. companies, bonds and other debt
securities, and money market instruments.
[1],[3] Bond Income The fund's investment objective is to seek a high
Strategy Fund level of current income consistent with a
competitive total return as compared with bond
funds with similar investment objectives and
policies by investing primarily in
investment-grade bonds.
[1],[3] Money Market Fund This fund's investment objective is to seek
maximum current income consistent with liquidity
and preservation of capital by investing in cash,
cash equivalents and high-quality debt securities.
[1],[3] Dividend & Growth This fund's investment objective is to seek
Fund current income and growth of capital by investing
primarily in large, well-known U.S. companies that
pay above-average dividends.
[1],[3] International This fund's investment objective is to seek
Opportunities Fund long-term growth of capital by investing primarily
in the stocks of large non-U.S. companies.
[1],[3] Capital This fund's investment objective is to seek
Appreciation Fund capital appreciation by investing primarily in the
stocks of small, medium and large U.S. companies.
[1],[3] Small Company Fund This fund's investment objective is to seek
capital appreciation by investing primarily in
stocks of U.S. companies with market
capitalization of less than $2 billion that the
portfolio manager believes have above-average
earnings growth potential.
[1],[3] Hartford Life This fund's investment objective is to seek
Company Stock long-term capital appreciation by investing in the
Fund class A common stock of Hartford Life, Inc.
Starwood Stock This fund's investment objective was to seek
Fund long-term capital appreciation by investing in the
common stock of Starwood (formerly ITT
Corporation). The fund was terminated as of
September 1, 1998.
ITT Industries This fund's investment objective was to seek
Company Stock long-term capital appreciation by investing in
Fund the common stock of ITT Industries. The fund was
terminated as of September 1, 1998.
[1] Indicates party-in-interest with certain subsidiaries of The Hartford. See
Note 7 for further discussion.
[2] MidCap Fund became effective on April 1, 1998.
[3] New funds effective as of February 18, 1997, except for Hartford Life
Company Stock Fund which became effective May 22, 1997. HLI completed the
initial public offering of 18.6% of its Class A common stock on May 22,
1997.
Participant Loans
- -----------------
Members may borrow from their fund accounts a minimum of $1,000 to a maximum
equal to the lesser of $50,000 or 50 percent of their vested account balances.
Loan transactions are treated as transfers to (from) the investment fund from
(to) the loan fund. Loan terms range from one to five years, or up to 15 years
for the purchase of a primary residence. The loan is secured by the balance in
the member's account and bears interest at the prime rate (as published in the
Wall Street Journal) plus 1%. The interest rate is determined quarterly.
F-12
NOTES TO FINANCIAL STATEMENTS (Continued)
Payment of Benefits
- -------------------
On termination of service due to death, disability, retirement, or other
reasons, members may elect to receive either a lump sum amount equal to the
value of the vested interest in their respective accounts or, subject to certain
conditions, annual installments over a period not greater than twenty years.
Members may also elect to defer distributions subject to certain conditions.
Forfeitures
- -----------
Forfeitures of the nonvested portion of any member's Company contributions are
applied to reduce future Company contributions. Forfeitures were immaterial for
the year ended December 30, 1998 and the period from January 1, 1997 through
December 30, 1997.
NOTE 2. ACCOUNTING POLICIES
The financial statements have been prepared using the accrual basis of
accounting. The preparation of financial statements in conformity with generally
accepted accounting principles and the Department of Labor Rules and Regulations
for Reporting and Disclosure under ERISA requires management of the Plan to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
NOTE 3. VALUATION OF INVESTMENTS
Plan investments, except group annuity contracts, are reported at fair value.
The fair value of the underlying common stock of The Hartford Company Stock Fund
and Hartford Life Company Stock Fund are based on quoted market prices.
Interests in mutual funds and pooled investment funds are valued at the
redemption price established by the trustee or the investment manager of the
respective fund.
The Plan has entered into numerous traditional and synthetic group annuity
contracts primarily with insurance carriers. These contracts, which are included
in the Stable Value Fund, are fully benefit responsive and are included in the
financial statements at contract value, which approximates fair value. Contract
value represents contributions made under the contract, plus earnings, less Plan
withdrawals and administrative expenses. As of December 30, 1998, the estimated
fair value of the group annuity contracts was $277,777. The average yield and
weighted average crediting interest rate on these contracts was 6.43% and 6.35%,
respectively, for the year ended December 30, 1998, and 6.54% and 6.09%,
respectively, for the period from January 1, 1997 to December 30, 1997.
Crediting interest rate resets are generally made quarterly for synthetic
contracts and are reset based on formulas which may use market value, book
value, duration and yield. A synthetic group annuity contract is an investment
contract that simulates the performance of a traditional group annuity contract
through the use of financial instruments. A key difference between a synthetic
group annuity contract and a traditional group annuity contract is that the Plan
owns the assets underlying the synthetic group annuity contract. Traditional
group annuity contracts have fixed crediting interest rates.
NOTE 4. FEDERAL INCOME TAX
In 1997, the Company filed with the Internal Revenue Service a request for a
formal determination that the Plan is qualified and that the Trust established
under the Plan is tax-exempt. On February 25, 1998, a favorable determination
was received from the Internal Revenue Service as to the tax-qualified status of
the Plan.
Accordingly, no provision for income taxes has been made in the Plan's financial
statements. While the Plan has been amended subsequent to the receipt of the
determination letter, the Plan administrator believes that the Plan is designed
and is currently being operated in compliance with applicable provisions of the
Code and other applicable law, and there have been no amendments, changes or
events, which have occurred, which could affect the Plan's qualified status.
F-13
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 5. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to suspend, reduce, or partially or completely discontinue its
contributions at any time and to terminate the Plan, the trust agreement and the
Trust hereunder subject to the provisions of ERISA. In the event of termination
of the Plan or partial termination or complete discontinuance of contributions,
the interest of affected members shall automatically become nonforfeitable.
NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
As of December 30, 1998 and 1997, the following is a reconciliation of net
assets available for plan benefits according to the financial statements to Form
5500:
1998 1997
----------------------------------------------------------------------------------- ---------------- ----------------
Net assets available for plan benefits per financial statements $ 1,600,658 $ 1,387,254
Amounts allocated to withdrawing members (254) (650)
----------------------------------------------------------------------------------- -- ------------- -- -------------
Net assets available for plan benefits per Form 5500 $ 1,600,404 $ 1,386,604
----------------------------------------------------------------------------------- -- ------------- -- -------------
The following is a reconciliation of benefits paid to members according to the
financial statements to Form 5500:
1998 1997
----------------------------------------------------------------------------------- ---------------- ----------------
Benefits paid to members per financial statements $ 88,572 $ 81,996
Amounts allocated to withdrawing members at end of period 254 650
Amounts allocated to withdrawing members at beginning of period (650) (7,342)
----------------------------------------------------------------------------------- -- ------------- -- -------------
Benefits paid to members per Form 5500 $ 88,176 $ 75,304
----------------------------------------------------------------------------------- -- ------------- -- -------------
Amounts allocated to withdrawing participants are recorded on Form 5500 for
benefit claims that have been processed and approved for payment prior to the
end of the Plan year, but not paid as of that date.
NOTE 7. PARTY-IN-INTEREST TRANSACTIONS
Certain Plan investments are held in funds managed by Bankers Trust Company, the
Trustee, as defined by the Plan, and certain subsidiaries of The Hartford. Fees
paid by the Plan for Trustee, custodial and investment management services
provided by Bankers Trust Company amounted to $464 and $589 for the year ended
December 30, 1998 and the period from January 1, 1997 to December 30, 1997,
respectively. Fees paid by the Plan to certain subsidiaries of the Company for
investment management services, the issuance of group annuity contracts and
print services amounted to $65 and $98 for the year ended December 30, 1998 and
the period from January 1, 1997 to December 30, 1997, respectively. In addition,
certain Plan investments are shares of The Hartford common stock and Hartford
Life common stock. Since The Hartford is the Plan Sponsor, these transactions
qualify as party-in-interest transactions.
F-14
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(c) Description of Investment Including Maturity
Date, Rate of Interest, Collateral, Par or (e) Current
(a) (b) Identity of Party Maturity Value (d) Cost Value
- --- --------------------- -------------- -------- -----
The Hartford Company Stock Fund
-------------------------------
* The Hartford Financial
Services Group, Inc. Common Stock $ 370,349 $ 794,000
* Bankers Trust Company BT Pyramid Directed Account Cash Fund -
STIF 15,675 15,675
------------- -------------
SUBTOTAL 386,024 809,675
------------- -------------
Index Fund
----------
* Hartford Life Insurance S&P 500 Index Portfolio Hartford - GA - 6226,
Company S/A BI 111,357 250,491
------------- -------------
SUBTOTAL 111,357 250,491
------------- -------------
Stable Value Fund
-----------------
* Bankers Trust Company BT Pyramid Discretionary Account Cash Fund -
STIF 10,283 10,283
Allstate Life Group Annuity Contract
Insurance Company #5429A, 5.74%, 05/03/1999 7,506 7,506
Allstate Life Group Annuity Contract
Insurance Company GA#5593A, 7.52%, 11/01/1999 2,208 2,208
Caisse des Depots et Group Annuity Contract
Consignations #BR302-01, 6.98%, 01/01/2002 16,766 16,766
Continental Assurance Group Annuity Contract
Insurance Contracts #24022, 6.58%, 12/31/2001 8,282 8,282
* Hartford Life Group Annuity Contract
Insurance Company #10361, 4.29%, 03/31/1999 2,351 2,351
* Hartford Life Group Annuity Contract
Insurance Company GA#30027, 6.22%, 06/01/1999 1,938 1,938
* Hartford Life Group Annuity Contract
Insurance Company #30026, 5.46%, 06/04/1999 3,361 3,361
Jackson National Life Group Annuity Contract
Insurance Company #1226, 5.00%, 08/07/2001 2,500 2,500
Metropolitan Life Group Annuity Contract
Insurance Company GAC#24543, 6.01%, 11/30/2003 9,737 9,737
Monumental Life Group Annuity Contract
Insurance Company #ADA00212TR, 6.38% * * 53,523 53,523
Morgan Guaranty Group Annuity Contract
#A1TTH01, 6.44% * * 63,851 63,851
<FN>
* Indicates party-in-interest.
** These synthetic portfolios have no final maturity. Final maturity is
based on the underlying assets in the bond portfolios.
</FN>
The accompanying notes are an integral part of this schedule.
F-15
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
(c) Description of Investment Including Maturity
Date, Rate of Interest, Collateral, Par or (e) Current
(a) (b) Identity of Party Maturity Value (d) Cost Value
- --- --------------------- -------------- -------- -----
New York Life Group Annuity Contract
Insurance Company GA#30497, 7.20%, 09/30/1999 6,375 6,375
Principal Mutual Group Annuity Contract
#4-23600-2, 8.00%, 03/20/1999 1,601 1,601
Sun America Life Group Annuity Contract
Insurance Company #4670, 6.81%, 10/16/2001 5,976 5,976
Transamerica Group Annuity Contract
Insurance Company #76620, 6.85% * * 23,422 23,422
Transamerica Group Annuity Contract
Insurance Company #76592, 5.92%, 10/31/2008 41,897 41,897
Transamerica Insurance Group Annuity Contract
Company #76682, 6.47% * * 21,950 21,950
------------- -------------
SUBTOTAL 283,527 283,527
------------- -------------
MidCap Fund
-----------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. MidCap Fund 2,409 2,639
------------- -------------
SUBTOTAL 2,409 2,639
------------- -------------
Advisers Fund
-------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Advisor Fund #BL416645786 43,860 55,982
------------- -------------
SUBTOTAL 43,860 55,982
------------- -------------
Bond Income Strategy Fund
-------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Bond Income Strategy Fund 8,445 8,501
------------- -------------
SUBTOTAL 8,445 8,501
------------- -------------
Money Market Fund
-----------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Money Market Fund 5,313 5,313
------------- -------------
SUBTOTAL 5,313 5,313
------------- -------------
<FN>
* Indicates party-in-interest.
** These synthetic portfolios have no final maturity. Final maturity is based
on the underlying assets in the bond portfolios.
</FN>
The accompanying notes are an integral part of this schedule.
F-16
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I
AS OF DECEMBER 30, 1998
($ IN THOUSANDS)
(continued)
(c) Description of Investment Including Maturity
Date, Rate of Interest, Collateral, Par or (e) Current
(a) (b) Identity of Party Maturity Value (d) Cost Value
- --- --------------------- -------------- -------- -----
Dividend & Growth Fund
----------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Dividend & Growth Fund 13,398 15,329
------------- -------------
SUBTOTAL 13,398 15,329
------------- -------------
International Opportunities Fund
--------------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. International Opportunity Fund 7,544 7,859
------------- -------------
SUBTOTAL 7,544 7,859
------------- -------------
Capital Appreciation Fund
-------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Capital Appreciation Fund 20,151 21,179
------------- -------------
SUBTOTAL 20,151 21,179
------------- -------------
Small Company Fund
------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Small Company Fund 10,239 11,056
------------- -------------
SUBTOTAL 10,239 11,056
------------- -------------
Hartford Life Company Stock Fund
--------------------------------
* Hartford Life Common Stock 64,975 80,788
* Bankers Trust Company BT Pyramid Directed Account
Cash Fund - STIF 263 263
------------- -------------
SUBTOTAL 65,238 81,051
------------- -------------
Loan Fund
---------
* Loans to Participant Loans Receivable from Participants, maturing
at various dates bearing interest at rates
from 7.0 % - 11.5 % $ -- $ 40,115
------------- -------------
SUBTOTAL -- 40,115
------------- -------------
TOTAL $ 957,505 $ 1,592,717
============= =============
<FN>
* Indicates party-in-interest.
</FN>
The accompanying notes are an integral part of this schedule
F-17
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- --------------------
Active Employee $ 9,000 $1,444 $ 478 $ 5,951
residing in AZ
Active Employee 1,400 159 63 1,186
residing in CT
Active Employee 2,000 595 136 1,965
residing in CT
Active Employee 3,119 481 202 2,376
residing in CT
Active Employee 14,000 1,961 256 4,094
residing in CT
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ------------------------ -------------------------
Active Employee Participant Loan at $ 3,392
residing in AZ 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 399
residing in CT 9.75% secured by
participant's account
balance
Active Employee Participant Loan at 823
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 619
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 7% 2,633
residing in CT secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-18
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- --------------------
Active Employee 2,561 661 179 1,454
residing in CT
Active Employee 10,000 0 0 10,000
residing in CT
Active Employee 4,000 973 188 1,597
residing in MS
Active Employee 10,000 1,462 522 6,006
residing in CT
Active Employee 9,924 1,111 443 6,596
residing in CT
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ----------------------- -------------------------
Active Employee Participant Loan at 1,115
residing in CT 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 783
residing in CT 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 606
residing in MS 9.75% secured by
participant's account
balance
Active Employee Participant Loan at 940
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 829
residing in CT 9.25% secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-19
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- -------------------
Active Employee 1,679 441 410 46
residing in CT
Active Employee 6,650 996 610 5,654
residing in CT
Active Employee 16,306 1,770 780 12,544
residing in CT
Active Employee 15,000 1,510 849 13,490
residing in NY
Active Employee 12,900 770 447 12,130
residing in NY
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ------------------------ -------------------------
Active Employee Participant Loan at 46
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 526
residing in CT 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 1,360
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 1,258
residing in NY 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 1,082
residing in NY 9.5% secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-20
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- --------------------
Active Employee 20,000 3,212 1,611 15,997
residing in FL
Active Employee 6,000 1,290 141 1,304
residing in CT
Active Employee 22,000 2,693 982 14,622
residing in CT
Active Employee 5,896 1,728 168 1,200
residing in CT
Active Employee 6,080 943 268 4,774
residing in TX
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ------------------------ -------------------------
Active Employee Participant Loan at 1,677
residing in FL 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 452
residing in CT 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 1,608
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 95
residing in CT 9.75% secured by
participant's account
balance
Active Employee Participant Loan at 382
residing in TX 9.5% secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-21
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- --------------------
Active Employee 7,408 2,909 436 5,483
residing in CT
Active Employee 10,000 362 459 5,435
residing in CT
Active Employee 10,500 1,770 872 8,244
residing in CT
Active Employee 13,000 909 1,088 11,261
residing in NY
Active Employee 8,000 342 469 6,063
residing in NY
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ------------------------ -------------------------
Active Employee Participant Loan at 983
residing in CT 8.9% secured by
participant's account
balance
Active Employee Participant Loan at 796
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 550
residing in CT 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 333
residing in NY 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 162
residing in NY 9.0% secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-22
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- -------- ------------------- ------------------- -------------------- ---------------- --------------------
Active Employee 3,900 1,098 207 1,976
residing in AZ
Active Employee 3,200 322 181 2,877
residing in CA
Active Employee 5,802 1,842 380 3,101
residing in CT
Active Employee 2,600 286 88 2,314
residing in MN
Active Employee 3,300 488 234 2,636
residing in CT
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- -------- ------------------- ------------------------ -------------------------
Active Employee Participant Loan at 311
residing in AZ 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 168
residing in CA 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 815
residing in CT 9.25% secured by
participant's account
balance
Active Employee Participant Loan at 333
residing in MN 9.5% secured by
participant's account
balance
Active Employee Participant Loan at 202
residing in CT 9.25% secured by
participant's account
balance
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-23
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(e) Interest
(d) Principal Received (f) Unpaid
(b) Identity and (c) Original Received During During Principal Balance
(a) Address of Obligor Amount of Loan Reporting Year Reporting Year at end of Year
- ------- ------------------- ------------------- --------------------- --------------- --------------------
Active Employee 12,000 1,760 883 9,686
residing in CT
- ------- ------------------- ------------------- --------------------- --------------- --------------------
Total $182,062
========
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
(CONTINUED)
(b) Identity and (g) Detailed (h) Arrears
(a) Address of Obligor Description of Loan (Principal + Interest) *
- ------- ------------------- ------------------------ --------------------------
Active Employee Participant Loan at 629
residing in CT 9.5% secured by
participant's account
balance
- ------- ------------------- ------------------------ --------------------------
Total $25,907
<FN>
* Information for split between principal and interest unavailable.
</FN>
The accompanying notes are an integral part of this schedule.
F-24
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
(c) (d) (e)
(a) (b) Purchase Selling Lease
Identity of Party Description of Asset Price Price Rental
- ----------------------- ---------------------------- -------------- ------------- -----------
Bankers Trust Company BT Pyramid Directed Cash
Fund - STIF $ -- $ 465,204 $ --
Bankers Trust Company BT Pyramid Directed Cash
Fund - STIF 458,080 -- --
Bankers Trust Company BT Pyramid Discretionary
Cash Fund - STIF -- 90,133 --
Bankers Trust Company BT Pyramid Discretionary
Cash Fund - STIF 86,161 -- --
Hartford Financial Hartford Financial Services
Services Group, Inc. Group, Inc. common stock 156,530 -- --
Hartford Financial Hartford Financial Services
Services Group, Inc. Group, Inc. common stock -- 15,773 --
ITT Corporation ITT Corporation common stock -- 122,770 --
ITT Industries ITT Industries common stock -- 85,649 --
Starwood Hotel & Starwood common stock
Resorts Worldwide,
Inc. -- 95,982 --
Starwood Hotel & Starwood common stock
Resorts Worldwide,
Inc. 37,923 -- --
- ----------------------- ---------------------------- -------------- ------------- -----------
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 30, 1998
($ IN THOUSANDS)
(Continued)
(h)
(f) (g) Current Value of (i)
(a) Expense Cost of Assets on Net Gain
Identity of Party Incurred Asset Transaction Date (Loss)
- ----------------------- ------------- -------------- -------------------- -----------------
Bankers Trust Company
$ -- $465,204 $465,204 $ --
Bankers Trust Company
-- 458,080 458,080 --
Bankers Trust Company
-- 90,133 90,133 --
Bankers Trust Company
-- 86,161 86,161 --
Hartford Financial
Services Group, Inc. -- 156,530 156,530 --
Hartford Financial
Services Group, Inc. -- 7,747 15,773 8,026
ITT Corporation -- 57,518 122,770 65,252
ITT Industries -- 27,678 85,649 57,971
Starwood Hotel &
Resorts Worldwide,
Inc. -- 37,923 95,982 58,059
Starwood Hotel &
Resorts Worldwide,
Inc. -- 37,923 37,923 --
- ----------------------- ------------- -------------- -------------------- -----------------
The accompanying notes are an integral part of this schedule.
F-25
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Pension
Fund Trust and Investment Committee of The Hartford Investment and Savings Plan
has duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
THE HARTFORD INVESTMENT AND SAVINGS PLAN
----------------------------------------
(Name of Plan)
BY: /s/ Francis A. Dorion
---------------------------------------
(Francis A. Dorion, Plan Administrator)
June 29, 1999
(Date)
F-26
EXHIBIT 1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Hartford Financial Services Group, Inc.:
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K into the Company's previously filed
registration statement on Form S-8 (Registration No. 33-80663).
ARTHUR ANDERSEN LLP
Hartford, Connecticut
June 29, 1999
F-27