The Hartford 2013 Annual Report Download - page 122

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Debt
Senior Notes
On April 15, 2013, the Company issued $300 aggregate principal amount of 4.3% Senior Notes (the "4.3% Notes") due April 15, 2043.
For further information regarding debt, see Note 13 - Debt of Notes to Consolidated Financial Statements.
Dividends
On February 27, 2014, The Hartford’s Board of Directors declared a quarterly dividend of $0.15 per common share payable
on April 1, 2014 to common shareholders of record as of March 10, 2014. There are no current restrictions on the HFSG Holding
Company's ability to pay dividends to its shareholders. For a discussion of restrictions on dividends to the HFSG Holding Company
from its insurance subsidiaries, see "Dividends from Insurance Subsidiaries" below. For a discussion of potential restrictions on the
HFSG Holding Company's ability to pay dividends, see the risk factor "Our ability to declare and pay dividends is subject to
limitations".
Pension Plans and Other Postretirement Benefits
While the Company has significant discretion in making voluntary contributions to the U. S. qualified defined benefit pension plan, the
Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006, the Worker, Retiree, and
Employer Recovery Act of 2008, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, the
Moving Ahead for Progress in the 21st Century Act of 2012 (MAP-21) and Internal Revenue Code regulations mandate minimum
contributions in certain circumstances. The Company made contributions to the U. S. qualified defined benefit pension plan of $100,
$200 and $200 in 2013, 2012 and 2011, respectively. No contributions were made to the other postretirement plans in 2013, 2012 and
2011. The Company’s 2013, 2012 and 2011 required minimum funding contributions were immaterial. The Company does not have a
2014 required minimum funding contribution for the U.S. qualified defined benefit pension plan and the funding requirements for all
pension plans are expected to be immaterial. The Company has not determined whether, and to what extent, contributions may be made
to the U. S. qualified defined benefit pension plan in 2014. The Company will monitor the funded status of the U.S. qualified defined
benefit pension plan during 2014 to make this determination.
Dividends from Insurance Subsidiaries
Dividends to the HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. The payment of
dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require
notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other
dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus
as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company)
for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance
accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the
prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which The
Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain
instances somewhat more restrictive) limitations on the payment of dividends. Dividends paid to HFSG Holding Company by its life
insurance subsidiaries are further dependent on cash requirements of HLI and other factors. In addition to statutory limitations on paying
dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations
include, but are not limited to expected earnings and capitalization of the subsidiary, regulatory capital requirements and liquidity
requirements of the individual operating company.
The Company’s property-casualty insurance subsidiaries are permitted to pay up to a maximum of approximately $1.5 billion in
dividends to HFSG Holding Company in 2014 without prior approval from the applicable insurance commissioner. Before considering
the transactions discussed below, the domestic life insurance subsidiaries' dividend limitation under the holding company laws of
Connecticut is $560 in 2014. In 2014, HFSG Holding Company anticipates receiving approximately $800 in dividends from its
property-casualty insurance subsidiaries, net of dividends to fund interest payments on an intercompany note between Hartford
Holdings, Inc. and Hartford Fire Insurance Company and no ordinary dividends from the life insurance subsidiaries. During 2013, the
Company initiated a plan to make HLA the single nationwide underwriting company for its Group Benefits business by capitalizing it to
support the Group Benefits business and separating it from the legal entities supporting the Talcott Resolution operating segment. On
January 30, 2014, the Company received approval from the State of Connecticut Insurance Department ("CTDOI") to dividend
approximately $800 of cash and invested assets from HLAI and HLIC to HLA and then distribute those subsidiaries to Hartford Life Inc.
leaving HLA and HLIC with no remaining ordinary dividend capacity for the twelve months following this transaction. Any additional
dividends from HLA and HLIC in 2014 would be extraordinary in nature and require prior approval from the CTDOI. The Company
believes this initiative will allow for greater operational efficiencies and financial transparency to Group Benefits' customers. In
addition, HFSG Holding Company is expecting to receive a dividend from HLIKK in the second half of 2014.