The Hartford 2008 Annual Report Download - page 72

Table of Contents
Item 6. SELECTED FINANCIAL DATA
(In millions, except for per share data and combined ratios)
2008 2007 2006 2005 2004
Income Statement Data
Total revenues [1] $ 9,219 $ 25,916 $ 26,500 $ 27,083 $ 22,708
Income (loss) before cumulative
effect of accounting change [2] (2,749) 2,949 2,745 2,274 2,138
Net income (loss) [2] [3] (2,749) 2,949 2,745 2,274 2,115
Balance Sheet Data
Total assets $ 287,583 $ 360,361 $ 326,544 $ 285,412 $ 259,585
Long-term debt 5,823 3,142 3,504 4,048 4,308
Total stockholders’ equity 9,268 19,204 18,876 15,325 14,238
Earnings (Loss) Per Share Data
Basic earnings (loss) per share [2]
[4]
Income (loss) before cumulative
effect of accounting change [2] $ (8.99) $ 9.32 $ 8.89 $ 7.63 $ 7.32
Net income (loss) [2] [3] (8.99) 9.32 8.89 7.63 7.24
Diluted earnings (loss) per share
[2] [4]
Income (loss) before cumulative
effect of accounting change [2] (8.99) 9.24 8.69 7.44 7.20
Net income (loss) [2] [3] (8.99) 9.24 8.69 7.44 7.12
Dividends declared per common
share 1.91 2.03 1.70 1.17 1.13
Other Data
Mutual fund assets [5] $ 50,126 $ 55,531 $ 43,732 $ 32,705 $ 28,068
Operating Data
Combined ratios
Ongoing Property & Casualty
Operations 90.7 90.8 89.3 93.2 95.3
[1] Total revenues of The Hartford are impacted by net investment income and mark-to-market effects of equity securities
held for trading supporting the international variable annuity business, which have corresponding amounts credited to
policyholders within benefits losses and loss adjustment expenses. 2008 revenues include net investment losses on
equity securities held for trading of $10.3 billion. Also included in 2008 revenues are net realized capital losses of
$5.9 billion.
[2] 2008 includes net realized capital losses of $3.6 billion, after-tax, including $2.5 billion, after-tax, in impairments.
2004 includes a $216 tax benefit related to agreement with the IRS on the resolution of matters pertaining to tax years
prior to 2004.
[3] 2004 includes a $23 after-tax charge related to the cumulative effect of accounting change for the Company’s adoption
of the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position 03-1, “Accounting
and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate
Accounts”.
[4] Due to the net loss for the year ended December 31, 2008, no allocation of the net loss was made to the preferred
shareholders under the two-class method in the calculation of basic earnings per share, as the preferred shareholders
had no contractual obligation to fund the net losses of the Company. In the absence of the net loss, any such income
would be allocated to the preferred shareholders based on the weighted average number of preferred shares
outstanding as of December 31, 2008.
As a result of the net loss in the year ended December 31, 2008, FASB No.128, “Earnings per Share” (“SFAS 128”)
requires the Company to use basic weighted average common shares outstanding in the calculation of the year ended
December 31, 2008 diluted earnings (loss) per share, since the inclusion of the assumed conversion of convertible
preferred shares to common of 5.0 and shares for stock compensation plans of 1.3 would have been antidilutive to the
earnings per share calculation. In the absence of the net loss, weighted average common shares outstanding and
dilutive potential common shares would have totaled 313.0.
[5] Mutual funds are owned by the shareholders of those funds and not by the Company. As a result, they are not reflected
in total assets in the Company’s balance sheet.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009