The Hartford 2009 Annual Report Download - page 3

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Forward-Looking Statements
Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,”
“plans,” “seeks,” “believes,” “estimates,” “expects,” and similar references to future periods.
Forward-looking statements are based on our current expectations and assumptions regarding economic, competitive and legislative
developments. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. They have been made based upon management’ s expectations and beliefs concerning future
developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the
“Company”). Future developments may not be in line with management’ s expectations or have unanticipated effects. Actual results
could differ materially from expectations, depending on the evolution of various factors, including those set forth in Part I, Item 1A.
These important risks and uncertainties include:
• significant risks and uncertainties related to the Company’ s current operating environment, which reflects continued volatility in
financial markets, constrained capital and credit markets and uncertainty about the timing and strength of an economic recovery and
the impact of governmental budgetary and regulatory initiatives and whether management’ s initiatives to address these risks will be
effective;
• risks associated with our continued execution of steps to realign our business and reposition our investment portfolio, including the
potential need to adjust our plans to take other restructuring actions, such as divestitures;
• market risks associated with our business, including changes in interest rates, credit spreads, equity prices, foreign exchange rates,
as well as challenging or deteriorating conditions in key sectors such as the commercial real estate market, that have pressured our
results and are expected to continue to do so in 2010;
• volatility in our earnings resulting from our recent adjustment of our risk management program to emphasize protection of statutory
surplus;
• the impact on our statutory capital of various factors, including many that are outside the Company’ s control, which can in turn
affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results;
• risks to our business, financial position, prospects and results associated with downgrades in the Company’ s financial strength and
credit ratings or negative rating actions relating to our investments;
• the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the valuation of the
Company’ s financial instruments that could result in changes to investment valuations;
• the subjective determinations that underlie the Company’ s evaluation of other-than-temporary impairments on available-for-sale
securities;
• losses due to nonperformance or defaults by others;
• the potential for further acceleration of deferred policy acquisition cost amortization;
• the potential for further impairments of our goodwill or the potential for establishing valuation allowances against deferred tax
assets;
• the possible occurrence of terrorist attacks and the Company’ s ability to contain its exposure, including the effect of the absence or
insufficiency of applicable terrorism legislation on coverage;
• the difficulty in predicting the Company’ s potential exposure for asbestos and environmental claims;
• the possibility of a pandemic or other man-made disaster that may adversely affect the Company’ s businesses and cost and
availability of reinsurance;
• weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter
conditions, natural disasters such as hurricanes and earthquakes, as well as climate change, including effects on weather patterns,
greenhouse gases, sea, land and air temperatures, sea levels, rain and snow;
• the response of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to
protect the Company against losses;
• the possibility of unfavorable loss development;
• actions by our competitors, many of which are larger or have greater financial resources than we do;
• the costs, compliance and other consequences of the Company’ s participation in the Capital Purchase Program under the
Emergency Economic Stabilization Act of 2008 and the eventual repayment thereof;
• unfavorable judicial or legislative developments;