The Hartford 2008 Annual Report Download - page 138

Table of Contents
• Net investment income on securities, available-for-sale, and other declined primarily due to declines in limited
partnership and other alternative investments income and a decrease in investment yield for fixed maturities.
• A goodwill impairment of $274, after-tax, in Retail.
• The effect of the triggering of the guaranteed minimum income benefit for the 3 Win product was $151, after-tax.
Year ended December 31, 2007 compared to the year ended December 31, 2006
The increase in Life’s net income was due to the following:
• The DAC Unlock benefit of $210 recorded in the third quarter of 2007.
• Increased income on asset growth in the variable annuity, mutual fund, retirement and institutional businesses.
Partially offsetting the increase in Life’s net income were the following:
• Increased non-deferrable individual annuity asset based commissions.
• Unfavorable mortality in Individual Life.
• Increased DAC amortization in Group Benefits due to the adoption of SOP 05-1.
• During the first quarter of 2006, the Company achieved favorable settlements in several cases brought against the
Company by policyholders regarding their purchase of broad-based leveraged corporate owned life insurance
(“leveraged COLI”) policies in the early to mid-1990s and therefore, released a reserve for these matters of $34,
after-tax.
• Realized losses increased for the year ended December 31, 2007 as compared to the comparable prior year periods
primarily due to net losses on GMWB derivatives and impairments.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009