The Hartford 2008 Annual Report Download - page 406

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Investments and Derivative Instruments (continued)
The following tables present the Company’s unrealized loss aging, by length of time the security was in a continuous greater
than 20% unrealized loss position.
Securitized Assets Depressed over 20%
December 31, 2008 December 31, 2007
Cost or Cost or
Amortized Fair Unrealized Amortized Fair Unrealized
Consecutive Months Items Cost Value Loss Items Cost Value Loss
Three months or less 859 $ 11,852 $ 6,779 $ (5,073) 138 $ 1,263 $ 835 $ (428)
Greater than three to six
months 102 1,141 420 (721) 12 146 91 (55)
Greater than six to nine
months 153 1,966 687 (1,279) — — — —
Greater than nine to twelve
months 97 934 218 (716) — — — —
Greater than twelve
months 18 240 38 (202) 6 40 26 (14)
Total 1,229 $ 16,133 $ 8,142 $ (7,991) 156 $ 1,449 $ 952 $ (497)
All Other Securities Depressed over 20%
December 31, 2008 December 31, 2007
Cost or Cost or
Amortized Fair Unrealized Amortized Fair Unrealized
Consecutive Months Items Cost Value Loss Items Cost Value Loss
Three months or less 1,006 $ 10,597 $ 7,044 $ (3,553) 116 $ 635 $ 492 $ (143)
Greater than three to six
months 58 306 150 (156) 9 74 21 (53)
Greater than six to nine
months 27 314 178 (136) — — — —
Greater than nine to twelve
months 8 115 68 (47) — — — —
Greater than twelve
months — — — — — — — —
Total 1,099 $ 11,332 $ 7,440 $ (3,892) 125 $ 709 $ 513 $ (196)
The majority of securitized assets depressed over 20% for six consecutive months are primarily related to CMBS and
sub-prime RMBS. Based upon the Company’s cash flow modeling in a severe negative economic outlook, which shows no
loss of principal and interest, and the Company’s assertion of its ability and intent to retain the securities until recovery, it
has been determined that these securities are temporarily impaired as of December 31, 2008.
The majority of all other securities depressed over 20% for six consecutive months or greater in the tables above primarily
relate to financial services sector securities that include corporate bonds, as well as, preferred equity issued by large high
quality financial institutions that are lower in the capital structure and, as a result have incurred greater price depressions.
Based upon the Company’s analysis of these securities and current macroeconomic conditions, the Company expects to see
significant price recovery on these securities within a reasonable period of time and, therefore, has determined that these
securities are temporarily impaired as of December 31, 2008.
F-48
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009