The Hartford 2008 Annual Report Download - page 407

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Investments and Derivative Instruments (continued)
Mortgage Loans
The carrying value of mortgage loans on real estate was $6.5 billion and $5.4 billion as of December 31, 2008 and 2007,
respectively. The Company’s mortgage loans are collateralized by a variety of commercial and agricultural properties. The
mortgage loans are diversified both geographically throughout the United States and by property type.
At December 31, 2008, the Company held delinquent mortgage loans on three properties with a carrying value of $91 which
were deemed impaired and accordingly, a valuation allowance of $26 was established. At December 31, 2007, the Company
held no impaired, restructured, delinquent or in-process-of-foreclosure mortgage loans and therefore had no valuation
allowance.
The following table presents commercial mortgage loans by region and property type.
Commercial Mortgage Loans on Real Estate by Region
December 31, 2008 December 31, 2007
Carrying Percent of Carrying Percent of
Value Total Value Total
East North Central $ 162 2.5% $ 120 2.2%
East South Central — — 9 0.2%
Middle Atlantic 717 11.1% 674 12.4%
Mountain 223 3.4% 200 3.7%
New England 487 7.5% 404 7.5%
Pacific 1,495 23.1% 1,200 22.2%
South Atlantic 1,102 17.0% 1,104 20.4%
West North Central 64 1.0% 32 0.6%
West South Central 333 5.2% 286 5.3%
Other [1] 1,886 29.2% 1,381 25.5%
Total $ 6,469 100.0% $ 5,410 100.0%
[1] Includes multi-regional properties.
Commercial Mortgage Loans on Real Estate by Property Type
December 31, 2008 December 31, 2007
Carrying Percent of Carrying Percent of
Value Total Value Total
Industrial $ 1,118 17.3% $ 649 12.0%
Lodging 483 7.5% 524 9.7%
Agricultural 635 9.8% 362 6.7%
Multifamily 1,131 17.5% 991 18.3%
Office 1,885 29.1% 1,929 35.6%
Retail 884 13.7% 806 14.9%
Other 333 5.1% 149 2.8%
Total $ 6,469 100.0% $ 5,410 100.0%
F-49
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009