The Hartford 2008 Annual Report Download - page 279

Table of Contents
The following table identifies available-for-sale securities by type on a consolidated basis.
Consolidated Available-for-Sale Securities by Type
December 31, 2008 December 31, 2007
Percent Percent
Cost or Gross Gross of Total Cost or Gross Gross of Total
Amortized Unrealized Unrealized Fair Fair Amortized Unrealized Unrealized Fair Fair
Cost Gains Losses Value Value Cost Gains Losses Value Value
ABS
Auto $ 545 $ — $ (124) $ 421 0.6% $ 692 $ — $ (16) $ 676 0.9%
CLOs [1] 2,865 — (735) 2,130 3.3% 2,590 — (114) 2,476 3.1%
Credit cards 942 — (188) 754 1.2% 957 3 (22) 938 1.2%
RMBS [2] 2,532 7 (891) 1,648 2.5% 2,999 10 (343) 2,666 3.3%
Student loan 764 — (277) 487 0.7% 786 1 (40) 747 0.9%
Other [3] 1,215 6 (393) 828 1.3% 1,491 19 (98) 1,412 1.7%
CMBS
Agency backed [4] 433 16 — 449 0.7% 445 10 — 455 0.6%
Bonds 11,144 10 (4,370) 6,784 10.4% 13,196 116 (421) 12,891 16.1%
CRE CDOs 1,763 2 (1,302) 463 0.7% 2,243 1 (390) 1,854 2.3%
Interest only
(“IOs”) 1,396 17 (333) 1,080 1.7% 1,741 117 (27) 1,831 2.3%
CMOs
Agency backed 849 46 (8) 887 1.4% 1,191 32 (4) 1,219 1.5%
Non-agency backed
[5] 413 1 (124) 290 0.4% 525 4 (3) 526 0.7%
Corporate [6]
Basic industry 2,138 33 (338) 1,833 2.8% 2,508 61 (34) 2,535 3.2%
Capital goods 2,480 32 (322) 2,190 3.3% 2,194 86 (26) 2,254 2.8%
Consumer cyclical 2,335 34 (388) 1,981 3.0% 3,011 87 (60) 3,038 3.8%
Consumer
non-cyclical 3,435 60 (252) 3,243 5.0% 3,008 89 (37) 3,060 3.8%
Energy 1,669 24 (146) 1,547 2.4% 1,595 71 (12) 1,654 2.1%
Financial services 8,422 254 (1,543) 7,133 10.9% 11,153 227 (512) 10,868 13.5%
Tech. & comm. 3,738 86 (400) 3,424 5.3% 3,763 181 (40) 3,904 4.9%
Transportation 508 8 (90) 426 0.7% 401 12 (13) 400 0.5%
Utilities 4,859 92 (578) 4,373 6.7% 4,500 181 (104) 4,577 5.7%
Other [7] 1,475 — (444) 1,031 1.6% 1,985 27 (104) 1,908 2.4%
Gov./Gov. agencies
Foreign 2,786 100 (65) 2,821 4.3% 999 59 (5) 1,053 1.3%
United States 5,883 112 (39) 5,956 9.2% 836 22 (3) 855 1.1%
MBS 2,243 42 (7) 2,278 3.5% 2,757 26 (20) 2,763 3.5%
Municipal
Taxable 1,115 8 (229) 894 1.4% 1,376 33 (23) 1,386 1.7%
Tax-exempt 10,291 194 (724) 9,761 15.0% 11,776 394 (67) 12,103 15.1%
Red. preferred stock — — — — — 6 — — 6 —
Fixed maturities $ 78,238 $ 1,184 $ (14,310) $ 65,112 100.0% $ 80,724 $ 1,869 $ (2,538) $ 80,055 100.0%
Equity securities,
available-for-sale
Financial Services 973 13 (196) 790 2,062 13 (224) 1,851
Other 581 190 (103) 668 549 205 (10) 744
Total securities,
available-for-sale
[8] $ 79,792 $ 1,387 $ (14,609) $ 66,570 $ 83,335 $ 2,087 $ (2,772) $ 82,650
[1] As of December 31, 2008, 99% of these senior secured bank loan CLOs were AAA rated with an average subordination
of 29%.
[2] Includes securities with an amortized cost and fair value of $14 and $10, respectively, as of December 31, 2008, and
$40 and $37, respectively, as of December 31, 2007, which were backed by pools of loans issued to prime borrowers.
Includes securities with an amortized cost and fair value of $91 and $62, respectively, as of December 31, 2008, and
$96 and $87, respectively, as of December 31, 2007, which were backed by pools of loans issued to Alt-A borrowers.
[3] Includes CDO securities with an amortized cost and fair value of $8 and $5, respectively, as of December 31, 2008, and
$16 and $15, respectively, as of December 31, 2007, that contain a below-prime residential mortgage loan component.
Typically these CDOs are also backed by assets other than below-prime loans.
[4] Represents securities with pools of loans by the Small Business Administration whose issued loans are backed by the
full faith and credit of the U.S. government.
[5] Includes securities with an amortized cost and fair value of $214 and $135, respectively, as of December 31, 2008, and
$270 as of December 31, 2007, which were backed by pools of loans issued to Alt-A borrowers.
[6] As of December 31, 2008 and 2007, 95% and 92%, respectively, of corporate securities were rated investment grade.
[7] Includes structured investments with an amortized cost and fair value of $526 and $364, respectively, as of
December 31, 2008, and $782 and $730, respectively, as of December 31, 2007. The underlying securities supporting
these investments are primarily diversified pools of investment grade corporate issuers which can withstand a 15%
cumulative default rate, assuming a 35% recovery.
[8] Gross unrealized gains represent gains of $860, $526, and $1 for Life, Property & Casualty, and Corporate,
respectively, as of December 31, 2008 and $1,339, $734, and $14, respectively, as of December 31, 2007. Gross
unrealized losses represent losses of $10,766 $3,835, and $8 for Life, Property & Casualty, and Corporate,
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009