The Hartford 2015 Annual Report Download - page 180

Download and view the complete annual report

Please find page 180 of the 2015 The Hartford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 255

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
6. Investments and Derivative Instruments (continued)
F-49
The weighted-average LTV ratio of the Company’s commercial mortgage loan portfolio was 54% as of December 31, 2015, while the
weighted-average LTV ratio at origination of these loans was 62%. LTV ratios compare the loan amount to the value of the underlying
property collateralizing the loan. The loan values are updated no less than annually through property level reviews of the portfolio.
Factors considered in the property valuation include, but are not limited to, actual and expected property cash flows, geographic market
data and capitalization rates. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. The
weighted average DSCR of the Company’s commercial mortgage loan portfolio was 2.63x as of December 31, 2015. As of
December 31, 2015, the Company held two delinquent commercial mortgage loans past due by 90 days or more. The loans had a total
carrying value and valuation allowance of $17 and $20, respectively, and neither loan was accruing income. As of December 31, 2014,
the Company held one delinquent commercial mortgage loan past due by 90 days or more. The loan had a total carrying value and
valuation allowance of $7 and $0, respectively, and was not accruing income.
The following table presents the carrying value of the Company’s commercial mortgage loans by LTV and DSCR.
Commercial Mortgage Loans Credit Quality
December 31, 2015 December 31, 2014
Loan-to-value Carrying
Value Avg. Debt-Service
Coverage Ratio Carrying
Value Avg. Debt-Service
Coverage Ratio
Greater than 80% $ 24 0.81x $ 53 1.07x
65% - 80% 623 1.82x 789 1.75x
Less than 65% 4,977 2.75x 4,714 2.66x
Total commercial mortgage loans $ 5,624 2.63x $ 5,556 2.51x
The following tables present the carrying value of the Company’s mortgage loans by region and property type.
Mortgage Loans by Region
December 31, 2015 December 31, 2014
Carrying
Value Percent of
Total Carrying
Value Percent of
Total
East North Central $ 289 5.1 % $ 211 3.8 %
East South Central 14 0.2 % — — %
Middle Atlantic 384 6.8 % 468 8.4 %
Mountain 32 0.6 % 88 1.6 %
New England 446 7.9 % 381 6.9 %
Pacific 1,669 29.7 % 1,607 29.0 %
South Atlantic 1,174 20.9 % 1,019 18.3 %
West North Central 29 0.5 % 44 0.8 %
West South Central 318 5.7 % 302 5.4 %
Other [1] 1,269 22.6 % 1,436 25.8 %
Total mortgage loans $ 5,624 100.0% $ 5,556 100.0%
[1] Primarily represents loans collateralized by multiple properties in various regions.