The Hartford 2009 Annual Report Download - page 185

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-36
5. Investments and Derivative Instruments (continued)
Sales of Available-for-Sale Securities
For the years ended December 31,
2009 2008 2007
Fixed maturities
Sale proceeds $ 41,973 $ 19,599 $ 21,968
Gross gains 755 511 424
Gross losses (1,272) (873) (276)
Equity securities, AFS
Sale proceeds $ 941 $ 616 $ 468
Gross gains 429 38 28
Gross losses (151) (78) (15)
Sales of AFS securities were the result of the Company’ s repositioning of its investment portfolio throughout 2009.
Other-Than-Temporary Impairment Losses
The following table presents a roll-forward of the Company’ s cumulative credit impairments on debt securities held as of December 31,
2009.
Credit Impairment
Balance as of January 1, 2009 $ —
Credit impairments remaining in retained earnings related to adoption of new accounting guidance in
April 2009
(1,320)
Additions for credit impairments recognized on [1]:
Securities not previously impaired (840)
Securities previously impaired (292)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period 245
Securities that the Company intends to sell or more likely than not will be required to sell before recovery 3
Securities due to an increase in expected cash flows 4
Balance as of December 31, 2009 $ (2,200)
[1] These additions are included in the net OTTI losses recognized in earnings of $1.5 billion in the Consolidated Statements of Operations, as well as
impairments on debt securities for which the Company intended to sell and on equity securities.
Available-for-Sale Securities
The following table presents the Company’ s AFS securities by type.
December 31, 2009 December 31, 2008
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Non-
Credit
OTTI [1]
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
ABS $ 3,040 $ 36 $ (553) $ 2,523 $ (48) $ 3,431 $ 6 $ (971) $ 2,466
CDOs 4,054 27 (1,189) 2,892 (174) 4,655 2 (2,045) 2,612
CMBS 10,736 114 (2,306) 8,544 (6) 12,973 43 (4,703) 8,313
Corporate 35,318 1,368 (1,443) 35,243 (23) 31,059 623 (4,501) 27,181
Foreign govt./govt. agencies 1,376 52 (20) 1,408 — 2,786 100 (65) 2,821
Municipal 12,125 318 (378) 12,065 (3) 11,406 202 (953) 10,655
RMBS 5,512 104 (769) 4,847 (185) 6,045 96 (1,033) 5,108
U.S. Treasuries 3,854 14 (237) 3,631 — 5,883 112 (39) 5,956
Total fixed maturities 76,015 2,033 (6,895) 71,153 (439) 78,238 1,184 (14,310) 65,112
Equity securities 1,333 80 (192) 1,221 — 1,554 203 (299) 1,458
Total AFS securities $ 77,348 $ 2,113 $ (7,087) $ 72,374 $ (439) $ 79,792 $ 1,387 $ (14,609) $ 66,570
[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had a credit impairment. These losses are
included in gross unrealized losses as of December 31, 2009.