The Hartford 2008 Annual Report Download - page 128

Table of Contents
Performance Measures
Fee Income
Fee income is largely driven from amounts collected as a result of contractually defined percentages of assets under
management. These fees are generally collected on a daily basis. For individual life insurance products, fees are
contractually defined as percentages based on levels of insurance, age, premiums and deposits collected and contract holder
value. Life insurance fees are generally collected on a monthly basis. Therefore, the growth in assets under management
either through positive net flows or net sales, or favorable equity market performance will have a favorable impact on fee
income. Conversely, either negative net flows or net sales, or unfavorable equity market performance will reduce fee
income.
As of and for the years ended December 31,
Product/Key Indicator Information 2008 2007 2006
Retail U.S. Individual Variable Annuities
Account value, beginning of period $ 119,071 $ 114,365 $ 105,314
Net flows (6,235) (2,733) (3,150)
Change in market value and other (38,258) 7,439 12,201
Account value, end of period $ 74,578 $ 119,071 $ 114,365
Retail Mutual Funds
Assets under management, beginning of period $ 48,383 $ 38,536 $ 29,063
Net sales 2,840 5,545 5,659
Change in market value and other (20,191) 4,302 3,814
Assets under management, end of period $ 31,032 $ 48,383 $ 38,536
Individual Life Insurance
Variable universal life account value, end of period $ 4,802 $ 7,284 $ 6,637
Total life insurance in-force 195,464 179,483 164,227
Retirement Plans Group Annuities
Account value, beginning of period $ 27,094 $ 23,575 $ 19,317
Net flows 2,418 1,669 2,545
Change in market value and other (7,314) 1,850 1,713
Account value, end of period $ 22,198 $ 27,094 $ 23,575
Retirement Plans Mutual Funds
Assets under management, beginning of period $ 1,454 $ 1,140 $ 947
Net sales/(redemptions) (446) 103 59
Acquisitions 18,725 — —
Change in market value and other (4,895) 211 134
Assets under management, end of period $ 14,838 $ 1,454 $ 1,140
Japan Annuities
Account value, beginning of period $ 37,637 $ 31,343 $ 26,104
Net flows [1] 714 4,525 4,393
Change in market value and other (10,921) (608) 1,195
Effect of currency translation 7,065 2,377 (349)
Account value, end of period $ 34,495 $ 37,637 $ 31,343
S&P 500 Index
Year end closing value 903 1,468 1,418
Daily average value 1,220 1,477 1,310
[1] Includes the effect of the triggering of the guaranteed minimum income benefit (“GMIB”) for the 3 Win product of
which $(809) relates to policyholders surrendering and $(170) relates to the current period annuity payments.
Year ended December 31, 2008 compared to year ended December 31, 2007
Assets under management, across all businesses have had substantial reductions in values from prior year primarily due to
declines in equity markets during 2008. The changes in line of business assets under management have also been affected
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009