The Hartford 2014 Annual Report Download - page 5

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(Dollar amounts in millions, except for per share data, unless otherwise stated)
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The Hartford Financial Services Group, Inc. (together with its subsidiaries, “The Hartford”, the “Company”, “we”, or “our”) is an insurance and financial
services company. The Hartford, headquartered in Connecticut, is among the largest providers of property and casualty insurance and group life and
disability products to individual and business customers in the United States of America. The Hartford is also a provider of mutual funds to investors and
additionally, The Hartford continues to manage life and annuity products previously sold. Hartford Fire Insurance Company, founded in 1810, is the oldest of
The Hartford’s subsidiaries. At December 31, 2014, total assets and total stockholders’ equity of The Hartford were $245 billion and $18.7 billion,
respectively.
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The Hartford strives to maintain and enhance its position as a market leader within the financial services industry. The Company sells diverse and innovative
products through multiple distribution channels to consumers and businesses. The Company seeks on an ongoing basis to develop and expand its
distribution channels, achieving cost efficiencies through economies of scale and improved technology, and capitalizes on its brand name and The Hartford
Stag Logo, one of the most recognized symbols in the financial services industry.
In 2012, The Hartford concluded an evaluation of its strategy and business portfolio. The Company is currently focusing on its Property & Casualty, Group
Benefits and Mutual Fund businesses. This realignment positions the organization for higher returns on equity, reduced sensitivity to capital markets, a lower
cost of capital and increased financial flexibility. As a result, the Company completed the sale of Hartford Life Insurance KK ("HLIKK") in 2014 and its
Retirement Plans, Individual Life and U.K. annuity businesses in 2013. For further discussion of these transactions, see Note 2 - Business Dispositions and
Note 19 - Discontinued Operations of Notes to Consolidated Financial Statements. In addition, the Company sold Woodbury Financial Services, Inc.
("Woodbury Financial Services", "WFS"), an indirect wholly-owned broker-dealer subsidiary, and placed its annuity businesses into runoff in 2012.
As a holding company that is separate and distinct from its subsidiaries, The Hartford Financial Services Group, Inc. has no significant business operations of
its own. Therefore, it relies on the dividends from its insurance companies and other subsidiaries as the principal source of cash flow to meet its obligations.
Additional information regarding the cash flow and liquidity needs of The Hartford Financial Services Group, Inc. may be found in Part II, Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Capital Resources and Liquidity.
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The Hartford currently conducts business principally in six reporting segments including Commercial Lines (formerly Property & Casualty Commercial),
Personal Lines (formerly Consumer Markets), Property & Casualty Other Operations, Group Benefits, Mutual Funds and Talcott Resolution, as well as a
Corporate category. The Hartford includes in its Corporate category the Company’s debt financing and related interest expense, as well as other capital
raising activities; and purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments.
The following discussion describes the principal products and services, marketing and distribution, and competition of The Hartford's reporting segments. For
further discussion of the reporting segments, including financial disclosures of revenues by product line, net income (loss), and assets for each reporting
segment, see Note 4 - Segment Information of Notes to Consolidated Financial Statements.
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Principal Products and Services
Commercial Lines provides businesses with workers’ compensation, property, automobile, liability, umbrella, marine and livestock coverages under several
different products, primarily throughout the United States, within its standard commercial lines, which consists of The Hartford’s small commercial and
middle market lines of business. Additionally, a variety of customized insurance products and risk management services including workers’ compensation,
automobile, general liability, professional liability, bond, and specialty casualty coverages are offered through the segment’s specialty lines.
Standard commercial lines seeks to offer products with coverage options and customized pricing based on the policyholder’s individualized risk
characteristics. For small businesses, those businesses whose annual payroll is under $5 and whose revenue and property values are less than $15 each,
property and liability coverages are bundled as part of a single multi-peril package policy marketed under the Spectrum name. The small commercial line of
business also provides workers' compensation and automobile coverages. Medium-sized businesses, companies whose payroll, revenue and property values
exceed the small business definition, are served within middle market. The middle market line of business provides workers’ compensation, property,
automobile, liability, umbrella, marine and livestock coverages.
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