The Hartford 2013 Annual Report Download - page 220

F-84
Equity Repurchase Program
On January 31, 2013, the Board of Directors authorized a capital management plan which provides for a $500 equity repurchase
program to be completed by December 31, 2014. On June 26, 2013 the Board of Directors approved a $750 increase in the Company's
authorized equity repurchase program, bringing the total authorization to $1.25 billion, with $617 remaining as of December 31, 2013.
In January 2014, the Board of Directors approved an increase in the Company's authorized equity repurchase program by an amount
that, when combined with the amount remaining under the existing authorization, provides the Company with the ability to repurchase
$2 billion, in equity during the period commencing on January 1, 2014 and ending on December 31, 2015.
During the year ended December 31, 2013, the Company repurchased 19.2 million common shares, for $600, and 1.6 million warrants,
for $33, through this program.
The Company repurchased 7.7 million common shares, for $262, from January 1, 2014 to February 25, 2014.
During the year ended December 31, 2012, the Company completed a $500 equity repurchase program authorized on July 27, 2011 by
the Board of Directors that permitted for purchases of common stock, as well as warrants and other derivative securities. In addition to
repurchases that occurred in 2011, the repurchases in 2012 included 8.0 million common shares for $149, and the repurchase of all
outstanding Series B and Series C warrants held by Allianz for $300.
Statutory Results
The domestic insurance subsidiaries of The Hartford prepare their statutory financial statements in conformity with statutory accounting
practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed
statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state
laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements
prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory
financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, life benefit reserves predominately
use interest rate and mortality assumptions prescribed by the NAIC, bonds are generally carried at amortized cost and reinsurance assets
and liabilities are presented net of reinsurance.
The statutory net income (loss) and statutory capital and surplus were as follows:
For the years ended December 31,
Statutory Net Income (Loss) 2013 2012 2011
U.S. life insurance subsidiaries, includes domestic captive insurance subsidiaries $ 2,144 $ 592 $ (1,272)
Property and casualty insurance subsidiaries 1,217 883 514
Total $ 3,361 $ 1,475 $ (758)
As of December 31,
Statutory Capital and Surplus 2013 2012
U.S. life insurance subsidiaries, includes domestic captive insurance subsidiaries $ 6,639 $ 6,410
Property and casualty insurance subsidiaries 8,022 7,645
Total $ 14,661 $ 14,055
The Company also holds regulatory capital and surplus for its operations in Japan. Under the accounting practices and procedures
governed by Japanese regulatory authorities, the Company’s statutory capital and surplus was $1.2 billion and $1.1 billion, as of
December 31, 2013 and 2012, respectively.
Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
16. Equity (continued)