The Hartford 2008 Annual Report Download - page 402

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Investments and Derivative Instruments (continued)
Components of Available-for-Sale Securities
December 31, 2008 December 31, 2007
Cost or Gross Gross Cost or Gross Gross
Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair
Cost Gains Losses Value Cost Gains Losses Value
Bonds and Notes
ABS $ 8,863 $ 13 $ (2,608) $ 6,268 $ 9,515 $ 33 $ (633) $ 8,915
CMBS
Agency backed 433 16 — 449 445 10 — 455
Non-agency backed 14,303 29 (6,005) 8,327 17,180 234 (838) 16,576
CMOs
Agency backed 849 46 (8) 887 1,191 32 (4) 1,219
Non-agency backed 413 1 (124) 290 525 4 (3) 526
Corporate 31,059 623 (4,501) 27,181 34,118 1,022 (942) 34,198
Government/government
agencies
Foreign 2,786 100 (65) 2,821 999 59 (5) 1,053
United States 5,883 112 (39) 5,956 836 22 (3) 855
MBS 2,243 42 (7) 2,278 2,757 26 (20) 2,763
States, municipalities and
political subdivisions 11,406 202 (953) 10,655 13,152 427 (90) 13,489
Redeemable preferred
stock — — — — 6 — — 6
Fixed maturities 78,238 1,184 (14,310) 65,112 80,724 1,869 (2,538) 80,055
Equity securities,
available-for-sale 1,554 203 (299) 1,458 2,611 218 (234) 2,595
Total securities,
available-for-sale $ 79,792 $ 1,387 $ (14,609) $ 66,570 $ 83,335 $ 2,087 $ (2,772) $ 82,650
The amortized cost and estimated fair value of fixed maturity investments by contractual maturity year are shown below.
December 31, 2008
Maturity Amortized Cost Fair Value
One year or less $ 2,135 $ 2,187
Over one year through five years 13,840 13,127
Over five years through ten years 14,692 13,357
Over ten years 35,203 26,718
Subtotal 65,870 55,389
ABS, MBS, and CMOs 12,368 9,723
Total $ 78,238 $ 65,112
Estimated maturities may differ from contractual maturities due to security call or prepayment provisions because of the
potential for prepayment on certain mortgage- and asset-backed securities which is why ABS, MBS and CMOs are not
categorized by contractual maturity. The CMBS are categorized by contractual maturity because they generally are not
subject to prepayment risk as these securities are generally structured to include forms of call protections such as yield
maintenance charges, prepayment penalties or lockouts, and defeasance.
Sales of Available-for-Sale Securities
For the years ended December 31,
2008 2007 2006
Sale of Fixed Maturities
Sale proceeds $ 19,599 $ 21,968 $ 26,827
Gross gains 511 424 427
Gross losses (873) (276) (407)
Sale of Equity Securities, Available-for-Sale
Sale proceeds $ 616 $ 468 $ 514
Gross gains 38 28 11
Gross losses (78) (15) (14)
F-45
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009