The Hartford 2012 Annual Report Download - page 220

Table of Contents



The Hartford’s long-term debt securities are issued by either The Hartford Financial Services Group, Inc. (“HFSG Holding Company”) or Hartford Life, Inc.
(“HLI”), an indirect wholly owned subsidiary, and are unsecured obligations of HFSG Holding Company or HLI and rank on a parity with all other
unsecured and unsubordinated indebtedness of HFSG Holding Company or HLI.
On January 31, 2013, the Board of Directors authorized a capital management plan which provides for the repayment of approximately $1.0 billion of debt
including repayment of $320 of 4.625% senior notes due in July 2013 and $200 of 4.75% senior notes due in March 2014.
Debt is carried net of discount. Short-term and long-term debt by issuance are as follows:

 

4.625% Notes, due 2013 $320 $ —


4.625% Notes, due 2013 —320
4.75% Notes, due 2014 200 200
4.0% Notes, due 2015 300 300
7.3% Notes, due 2015 200 200
5.5% Notes, due 2016 300 300
5.375% Notes, due 2017 499 499
4.0% Notes, due 2017 325 —
6.3% Notes, due 2018 500 500
6.0% Notes, due 2019 500 500
5.5% Notes, due 2020 499 499
5.125% Notes, due 2022 796 —
7.65% Notes, due 2027 149 149
7.375% Notes, due 2031 92 92
5.95% Notes, due 2036 298 298
6.625% Notes, due 2040 299 299
6.1% Notes, due 2041 325 325
6.625% Notes, due 2042 424 —
  

7.875% Notes, due 2042 600 —
8.125% Notes, due 2068 500 500
10.0% Notes, due 2068 —1,235
  
  
The effective interest rate on the 6.1% senior notes due 2041 is 7.9%. The effective interest rate on the 10.0% junior subordinated debentures due 2068 was
15.3%. The effective interest rate on the remaining notes does not differ materially from the stated rate.

Interest expense incurred is as follows:

  
Long-term debt $ 457 $ 508 $ 508
   
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