The Hartford 2010 Annual Report Download - page 155

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-27
4. Fair Value Measurements –Financial Instruments Excluding Guaranteed Living Benefits (continued)
Financial Instruments Not Carried at Fair Value
The following table presents carrying amounts and fair values of The Hartford’ s financial instruments not carried at fair value and not
included in the above fair value discussion as of December 31, 2010 and December 31, 2009.
December 31, 2010 December 31, 2009
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Assets
Policy loans $2,181 $ 2,294 $ 2,174 $ 2,321
Mortgage loans 4,489 4,524 5,938 5,091
Liabilities
Other policyholder funds and benefits payable [1] $ 11,155 $ 11,383 $ 12,330 $ 12,513
Senior notes [2] 4,880 5,072 4,054 4,037
Junior subordinated debentures [2] 1,727 2,596 1,717 2,338
Consumer notes [3] 377 392 1,131 1,194
[1] Excludes guarantees on variable annuities, group accident and health and universal life insurance contracts, including corporate owned life
insurance.
[2] Included in long-term debt in the Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.
[3] Excludes amounts carried at fair value and included in disclosures above.
As of December 31, 2010 and 2009, included in other liabilities in the Consolidated Balance Sheets are carrying amounts of $233 and
$273 for deposits, respectively, and $25 and $78 for Federal Home Loan Bank advances, respectively, related to Federal Trust
Corporation. These carrying amounts approximate fair value.
The Company has not made any changes in its valuation methodologies for the following assets and liabilities since December 31, 2009.
• Fair value for policy loans and consumer notes were estimated using discounted cash flow calculations using current interest rates.
• Fair values for mortgage loans were estimated using discounted cash flow calculations based on current lending rates for similar
type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans.
• Fair values for other policyholder funds and benefits payable, not carried at fair value, are determined by estimating future cash
flows, discounted at the current market rate.
• Fair values for senior notes and junior subordinated debentures are based primarily on market quotations from independent third
party pricing services.