The Hartford 2010 Annual Report Download - page 156

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-28
4a. Fair Value Measurements – Guaranteed Living Benefits
These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments related to
variable annuity product guaranteed living benefits and the related variable annuity hedging program and information about the inputs
used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following tables
present assets and (liabilities) related to the guaranteed living benefits program carried at fair value by hierarchy level.
December 31, 2010
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets accounted for at fair value on a recurring basis
Variable annuity hedging derivatives $ 339 $ — $ (122) $ 461
Macro hedge program 386 2 176 208
Reinsurance recoverable for U.S. GMWB 280 — — 280
Total assets accounted for at fair value on a recurring basis $ 1,005 $ 2 $ 54 $ 949
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
U.S. guaranteed withdrawal benefits $ (1,611) $ — $ — $ (1,611)
International guaranteed withdrawal benefits (36) — — (36)
International other guaranteed living benefits 3 — — 3
Variable annuity hedging derivatives 128 — (11) 139
Macro hedge program (2) (2) — —
Total liabilities accounted for at fair value on a recurring basis $ (1,518) $ (2) $ (11) $ (1,505)
December 31, 2009
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets accounted for at fair value on a recurring basis
Variable annuity hedging derivatives $ 9 $ — $ — $ 9
Macro hedge program 203 8 16 179
Reinsurance recoverable for U.S. GMWB 347 — — 347
Total assets accounted for at fair value on a recurring basis $ 559 $ 8 $ 16 $ 535
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
US Guaranteed withdrawal benefits $ (1,957) $ — $ — $ (1,957)
International guaranteed withdrawal benefits (45) — — (45)
International other guaranteed living benefits 2 — — 2
Variable annuity hedging derivatives 43 — (184) 227
Macro hedge program 115 (2) 6 111
Total liabilities accounted for at fair value on a recurring basis $ (1,842) $ (2) $ (178) $ (1,662)