The Hartford 2011 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,” “projects,” 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.
Risk Factors and those identified from time to time in our other filings with the Securities and Exchange Commission. These important
risks and uncertainties include:
• challenges related to the Company’ s current operating environment, including continuing uncertainty about the strength and speed
of the recovery in the United States and other key economies and the impact of governmental stimulus and austerity initiatives,
sovereign credit concerns, including the potential consequences associated with recent and further potential downgrades to the
credit ratings of debt issued by the United States government, European sovereigns and other adverse developments on financial,
commodity and credit markets and consumer spending and investment, including in respect of Europe, and the effect of these events
on our returns in our life and property and casualty investment portfolios and our hedging costs associated with our variable
annuities business;
• the potential impact or consequences of our ongoing evaluation of the Company’ s strategy and business portfolio, which may lead
us to pursue one or more transactions or take other actions, including the discontinuance or placing in run-off of certain lines of
business and/or the pursuit of strategic acquisitions, divestitures or restructurings, and the potential that any of the foregoing
transactions or actions may not be achievable or that the benefits anticipated to be gained thereby may not be obtained;
• the success of our initiatives relating to the realignment of our business, including the continuing realignment of our hedge program
for our variable annuity business, and plans to improve the profitability and long-term growth prospects of our key divisions,
including through opportunistic acquisitions or divestitures or other actions or initiatives, and the impact of regulatory or other
constraints on our ability to complete these initiatives and deploy capital among our businesses as and when planned;
• market risks associated with our business, including changes in interest rates, credit spreads, equity prices, market volatility and
foreign exchange rates, and implied volatility levels, as well as continuing uncertainty in key sectors such as the global real estate
market;
• the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy;
• volatility in our earnings and potential material changes to our results resulting from our adjustment of our risk management
program to emphasize protection of statutory surplus and cash flows;
• 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 negative rating actions or downgrades in the
Company’ s financial strength and credit ratings or negative rating actions or downgrades 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 changes in 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 possibility of unfavorable loss development including with respect to long-tailed exposures;
• the difficulty in predicting the Company’ s potential exposure for asbestos and environmental claims;
• the possibility of a pandemic, earthquake, or other natural or man-made disaster that may adversely affect our businesses and cost
and availability of reinsurance;
• weather and other natural physical events, including the severity and frequency of storms, hail, winter storms, hurricanes and
tropical storms, as well as climate change and its potential impact on weather patterns;