The Hartford 2014 Annual Report Download - page 154

Table of Contents
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
Universal life-type contracts consist of fixed and variable annuities and universal life insurance. The liability for universal life-type contracts is equal to the
balance that accrues to the benefit of the policyholders as of the financial statement date, including credited interest, amounts that have been assessed to
compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on
termination of the contract.
Investment contracts consist of institutional and governmental products, without life contingencies, including funding agreements, certain structured
settlements and guaranteed investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract
holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through
the financial statement date.
Foreign Currency
Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of accumulated other comprehensive income (loss). The
Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are
translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional
currencies. Gains and losses resulting from the remeasurement of foreign currency transactions are reflected in earnings in realized capital gains (losses) in the
period in which they occur.
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