The Hartford 2008 Annual Report Download - page 468

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
19. Investment and Savings Plan
Substantially all U.S. employees are eligible to participate in The Hartford’s Investment and Savings Plan under which
designated contributions may be invested in common stock of The Hartford or certain other investments. These
contributions are matched, up to a contribution of 3% of base salary, by the Company. In 2008, employees who had earnings
of less than $100,000 in the preceding year received a contribution of 1.5% of base salary and employees who had earnings
of $100,000 or more in the preceding year received a contribution of 0.5% of base salary. The cost to The Hartford for this
plan was approximately $64, $62, and $59 for 2008, 2007 and 2006, respectively.
20. Sale of Subsidiary
On November 30, 2006, the Company sold its non-standard auto insurance business, Omni Insurance Group, Inc. (“Omni”).
Under the terms the agreement, the Company continues to be obligated for certain extra contractual liability claims and for
claims and expenses arising from all business written by Omni in the states of California and New York. The Company has
since taken action to cease writing new non-standard business in both California and New York. The Company believes that
exiting the traditional non-standard auto insurance business will streamline its operations and help the Company align its
resources towards achieving core business objectives.
The total consideration for the sale of approximately $104 included a cash dividend prior to the sale of $38 and a purchase
price of $65, of which $60 was received in cash at closing and $5 was received in 2007. In 2006, the Company recorded an
after-tax gain from the sale of $25, which included an income tax benefit of $49 and a pre-tax loss of $24. The pre-tax loss is
recorded within realized gains and losses in the 2006 consolidated statement of operations. The $49 income tax benefit arose
because the tax basis of the Company’s investment in Omni exceeded the financial statement carrying value. The assets that
were sold at the closing date included $172 of cash, $8 of invested assets, $31 of premiums receivable, $3 of Personal Lines
segment goodwill allocated to the Omni business and $23 of other assets. The liabilities sold at the closing date included
$111 of loss and loss adjustment expense reserves, $37 of unearned premium and $14 of other liabilities.
F-91
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009