The Hartford 2008 Annual Report Download - page 263

the CLO losses, refer to the Variable Interest Entities section below.
• Other, net losses for the year ended December 31, 2007 were primarily driven by the change
in value of non-qualifying derivatives due to credit spread widening as well as fluctuations in
interest rates and foreign currency exchange rates. Credit spreads widened primarily due to
the deterioration in the U.S. housing market, tightened lending conditions and the market’s
flight to quality securities.
• Other, net losses for the year ended December 31, 2006 were primarily driven from the
change in value of non-qualifying derivatives due to fluctuations in interest rates and foreign
currency exchange rates. These losses were partially offset by a before-tax benefit of $25
received from the WorldCom security settlement.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009