The Hartford 2013 Annual Report Download - page 88

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Year ended December 31, 2012 compared to the year ended December 31, 2011
Net loss, as compared to the prior year period, increased in 2012 primarily due to a loss on extinguishment of debt related to the
repurchase of all outstanding 10% fixed-to-floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal
amount all held by Allianz. The loss consisted of the premium associated with repurchasing the 10% Debentures at an amount greater
than the face amount, the write-off of the unamortized discount and debt issuance costs related to the 10% Debentures and other costs
related to the repurchase transaction.
Also in 2012, the Company recorded a reinsurance loss on disposition consisting of an impairment of goodwill related to the disposition
of the Individual Life business. See Note 9 of Notes to Consolidated Financial Statements for additional information on the goodwill
impairment.
In addition, insurance operating costs and other expenses increased as a result of restructuring and other costs related to the Company’s
implementation of its strategic initiatives. See Note 21 of Notes to Consolidated Financial Statements for additional information on
restructuring and other costs.
Partially offsetting the losses was an increase in net realized capital gains (losses), primarily due to gains on derivatives as a result of
credit spreads tightening. For additional information on net realized capital gains, see the Investment Results section.
For a reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes, see Note 14 - Income
Taxes of Notes to Consolidated Financial Statements.