The Hartford 2013 Annual Report Download - page 9

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Mutual Funds
Principal Products and Services
Mutual Funds offers mutual funds for retail and retirement accounts and provides investment-management and administrative services
such as product design, implementation and oversight. This business also includes the runoff of the mutual funds supporting the
Company's variable annuity products. Wellington Management Company, LLP ("Wellington Management") serves as the primary sub-
advisor for The Hartford’s 96 mutual funds, including equity, fixed-income and asset-allocation funds.
Marketing and Distribution
Mutual Fund sales professionals are segmented into two teams; a retail team and an institutional team. The retail team distributes The
Hartford’s open-end funds and markets 529 college savings plans to national and regional broker-dealer organizations, banks and other
financial institutions, independent financial advisors and registered investment advisors. The institutional team distributes The Hartford’s
funds to professional buyers, such as broker-dealers, consultants, record keepers, and bank trust groups.
Competition
Mutual Funds compete with other mutual fund companies along with investment brokerage companies and differentiate themselves
through product solutions, performance, and service. In this non-proprietary broker sold market, the Company and its competitors
compete aggressively for net sales.
Talcott Resolution
Talcott Resolution's business is comprised of runoff business from the Company's U.S. annuity, international annuity (in Japan), and
institutional and private-placement life insurance businesses. Talcott Resolution's mission is to pursue opportunities to reduce the size
and risk of the annuity book of business while honoring the Company's obligations to its annuity contractholders. Talcott Resolution
manages approximately 1.4 million annuity contracts with account values of approximately $150 billion as of December 31, 2013.
In 2013, the Company completed the sale of its U.K. annuity business. The Talcott Resolution business segment includes our Retirement
Plans and Individual Life businesses sold in 2013 through reinsurance agreements with the respective buyers. In 2012, the Company
completed the sale of its U.S. individual annuities new business capabilities and the sale of the administration and operating assets of its
private placement life insurance business. For further discussion of these transactions, see Note 2 - Business Dispositions and Note 20 -
Discontinued Operations of Notes to Consolidated Financial Statements.
Reserves
The Hartford establishes and carries as liabilities reserves for its insurance products to estimate for the following:
• a liability for unpaid losses, including those that have been incurred but not yet reported, as well as estimates of all
expenses associated with processing and settling these claims;
• a liability equal to the balance that accrues to the benefit of the life insurance policyholder as of the consolidated financial
statement date, otherwise known as the account value;
• a liability for future policy benefits, representing the present value of future benefits to be paid to or on behalf of
policyholders less the present value of future net premiums;
• fair value reserves for living benefits embedded derivative guarantees; and
• death and living benefit reserves which are computed based on a percentage of revenues less actual claim costs.
Further discussion of The Hartford’s property and casualty insurance product reserves, including asbestos and environmental claims
reserves, may be found in Part II, Item 7, MD&A — Critical Accounting Estimates — Property and Casualty Insurance Product
Reserves, Net of Reinsurance. Additional discussion may be found in the Company’s accounting policies for insurance product reserves
within Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements.