The Hartford 2008 Annual Report Download - page 388

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Fair Value Measurements (continued)
The following table presents the Company’s assets and liabilities that are carried at fair value, by SFAS 157 hierarchy level,
as of December 31, 2008:
Quoted Prices
in Active Significant Significant
Markets for Observable Unobservable
Identical Assets Inputs Inputs
Asset (Liability) Total (Level 1) (Level 2) (Level 3)
Assets accounted for at fair value on a
recurring basis
Fixed maturities, available-for-sale $ 65,112 $ 3,541 $ 49,761 $ 11,810
Equity securities, held for trading 30,820 1,634 29,186 —
Equity securities, available-for-sale 1,458 246 671 541
Other investments
Other derivatives used to hedge US
GMWB 600 — 13 587
Other investments [1] 976 — 1,005 (29)
Total Other Investments 1,576 — 1,018 558
Short-term investments 10,022 7,025 2,997 —
Reinsurance recoverables for US GMWB 1,302 — — 1,302
Separate account assets [2] [5] 126,777 94,804 31,187 786
Total assets accounted for at fair value
on a recurring basis $ 237,067 $ 107,250 $ 114,820 $ 14,997
Liabilities accounted for at fair value on
a recurring basis
Other policyholder funds and benefits
payable
US GMWB $ (6,526) $ — $ — $ (6,526)
UK GMWB (64) — — (64)
Japan GMWB (30) — — (30)
Institutional Notes (41) — — (41)
Equity Linked Notes (8) — — (8)
Total other policyholder funds and benefits
payable (6,669) — — (6,669)
Other liabilities [3]
Customized derivatives used to hedge
US GMWB 941 — — 941
Other derivatives used to hedge US
GMWB 1,123 — 14 1,109
Macro hedge program 137 — — 137
Other liabilities (339) — 76 (415)
Total Other Liabilities 1,862 — 90 1,772
Consumer notes [4] (5) — — (5)
Total liabilities accounted for at fair
value on a recurring basis $ (4,812) $ — $ 90 $ (4,902)
[1] Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to
pledge collateral to the Company. At December 31, 2008, $574 of cash collateral liability was netted against the
derivative asset value on the consolidated balance sheet and is excluded from the table above. See footnote 3 below for
derivative liabilities.
[2] Pursuant to the conditions set forth in SOP 03-1, the value of separate account liabilities is set to equal the fair value
for separate account assets.
[3] Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the
SFAS 157 Level 3 roll forward table included below in this Note, the derivative asset and liability are referred to as
“freestanding derivatives” and are presented on a net basis.
[4] Represents embedded derivatives associated with non-funding agreement-backed consumer equity linked notes.
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009