The Hartford 2011 Annual Report Download - page 220

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-85
17. Employee Benefit Plans (continued)
Other Postretirement Plan Assets
The fair value of the Company’ s other postretirement plan assets at December 31, 2011, by asset category are as follows:
Other Postretirement Plan Assets
at Fair Value as of December 31, 2011
Asset Category
Level 1
Level 2
Level 3
Total
Short-term investments
$
—
$
9
$
—
$
9
Fixed Income Securities:
Corporate
—
53
—
53
RMBS
—
48
—
48
U.S. Treasuries
—
28
—
28
Foreign government
—
2
—
2
CMBS
—
18
—
18
Other fixed income
—
4
—
4
Equity Securities:
Large-cap
—
43
—
43
Total other postretirement plan assets at fair value [1]
$
—
$
205
$
—
$
205
[1] Excludes approximately $3 of investment payables net of investment receivables that are not carried at fair value. Also excludes approximately $1
of interest receivable carried at fair value.
The fair value of the Company’ s other postretirement plan assets at December 31, 2010, by asset category are as follows:
Other Postretirement Plan Assets
at Fair Value as of December 31, 2010
Asset Category
Level 1
Level 2
Level 3
Total
Short-term investments
$
—
$
10
$
—
$
10
Fixed Income Securities:
Corporate
—
57
—
57
RMBS
—
44
—
44
U.S. Treasuries
—
19
—
19
CMBS
—
17
—
17
Other fixed income
—
6
—
6
Equity Securities:
Large-cap
—
43
—
43
Total other postretirement plan assets at fair value [1]
$
—
$
196
$
—
$
196
[1] Excludes approximately $7 of investment payables net of investment receivables that are not carried at fair value. Also excludes approximately $1
of interest receivable carried at fair value.
There was no Company common stock included in the other postretirement benefit plan assets as of December 31, 2011 and 2010.
Concentration of Risk
In order to minimize risk, the Plan maintains a listing of permissible and prohibited investments. In addition, the Plan has certain
concentration limits and investment quality requirements imposed on permissible investment options. Permissible investments include
U.S. equity, international equity, alternative asset and fixed income investments including derivative instruments. Derivative
instruments include future contracts, options, swaps, currency forwards, caps or floors and will be used to control risk or enhance return
but will not be used for leverage purposes.
Securities specifically prohibited from purchase include, but are not limited to: shares or fixed income instruments issued by The
Hartford, short sales of any type within long-only portfolios, non-derivative securities involving the use of margin, leveraged floaters
and inverse floaters, including money market obligations, natural resource real properties such as oil, gas or timber and precious metals.
Other than U.S. government and certain U.S. government agencies backed by the full faith and credit of the U.S. government, the Plan
does not have any material exposure to any concentration risk of a single issuer.