The Hartford 2014 Annual Report Download - page 99

The following tables summarize the account values of the Company’s variable annuities with guarantee features and the NAR split between various
guarantee features (retained net amount at risk does not take into consideration the effects of the variable annuity hedge programs in place as of each balance
sheet date):


($ in billions) 









GMDB $ 52.9 $ 3.8 $ 0.8 23% 14%
GMWB 24.8 0.2 0.1 6% 11%


($ in billions) 









GMDB $ 61.8 $ 4.3 $ 1.0 16% 26%
GMWB 30.3 0.2 0.1 5% 12%

GMDB 20.1 0.8 0.6 31% 8%
GMIB [5] 18.5 0.1 0.1 20% 3%
[1] Policies with a guaranteed living benefit also have a guaranteed death benefit. The net amount at risk (“NAR”) for each benefit is shown; however these benefits are not
additive. When a policy terminates due to death, any NAR related to GMWB is released. Similarly, when a policy goes into benefit status on a GMWB, its GMDB NAR is
reduced to zero.
[2] Excludes contracts that are fully reinsured.
[3] For all contracts that are “in the money”, this represents the percentage by which the average contract was in the money.
[4] On June 30, 2014, the Company completed the sale of the Japan variable annuity business of HLIKK. For further information of the sale of Japan variable annuity business,
HLIKK in 2014, see Note 2 - Business Dispositions of Notes to the Consolidated Financial Statements.
[5] Includes small amount of GMWB and GMAB.
Many policyholders with a GMDB also have a GMWB. Policyholders that have a product that offer both guarantees can only receive the GMDB or GMWB.
The GMDB NAR disclosed in the tables above is a point in time measurement and assumes that all participants utilize the GMDB benefit on that
measurement date. For additional information on the Company's GMDB liability, see Note 10 - Separate Accounts, Death Benefits and Other Insurance
Benefit Features of Notes to Consolidated Financial Statements.
The Company expects to incur GMDB payments in the future only if the policyholder has an “in the money” GMDB at their death. If the account value is
reduced to a specified level, the contract holder will receive an annuity equal to the guaranteed remaining balance ("GRB"). For the Company’s “life-time”
GMWB products, this annuity can exceed the GRB. As the account value fluctuates with equity market returns on a daily basis and the “life-time” GMWB
payments may exceed the GRB, the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more or less than the
Company’s current carried liability. For additional information on the Company’s GMWB liability, see Note 5 - Fair Value Measurements of Notes to
Consolidated Financial Statements.
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