The Hartford 2015 Annual Report Download - page 3

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Forward-Looking Statements
Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,”
“plans,” “seeks,” “believes,” “estimates,” “expects,” “projects,” and similar references to future periods.
Forward-looking statements are based on our current expectations and assumptions regarding economic, competitive, legislative and
other developments. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes
in circumstances that are difficult to predict. They have been made based upon management’s expectations and beliefs concerning future
developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the
“Company” or “The Hartford”). Future developments may not be in line with management’s expectations or may have unanticipated
effects. Actual results could differ materially from expectations, depending on the evolution of various factors, including the risks and
uncertainties identified below, as well as factors described in such forward-looking statements or in Part I, Item 1A. Risk Factors, in Part
II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and those identified from time to
time in our other filings with the Securities and Exchange Commission.
• Risks Relating to Economic, Market and Political Conditions:
challenges related to the Company’s current operating environment, including global political, economic and market
conditions, and the effect of financial market disruptions, economic downturns or other potentially adverse
macroeconomic developments on the attractiveness of our products, the returns in our investment portfolios and the
hedging costs associated with our runoff annuity block;
financial risk related to the continued reinvestment of our investment portfolios and performance of our hedge program
for our runoff annuity block;
market risks associated with our business, including changes in interest rates, credit spreads, equity prices, market
volatility and foreign exchange rates, commodities prices and implied volatility levels.
the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the
economy;
• Risks Relating to Estimates, Assumptions and Valuations:
risk associated with the use of analytical models in making decisions in key areas such as underwriting, capital
management, hedging, reserving, and catastrophe risk management;
the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the valuation of
the Company’s financial instruments that could result in changes to investment valuations;
the subjective determinations that underlie the Company’s evaluation of other-than-temporary impairments on available-
for-sale securities;
the potential for further acceleration of deferred policy acquisition cost amortization;
the potential for further impairments of our goodwill or the potential for changes in valuation allowances against deferred
tax assets;
the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and
environmental claims;
• Financial Strength, Credit and Counterparty Risks:
the impact on our statutory capital of various factors, including many that are outside the Company’s control, which can
in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our
business and results;
risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in
the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments;
losses due to nonperformance or defaults by others, including sourcing partners, derivative counterparties and other third
parties;
the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance
contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses;
• Insurance Industry and Product-Related Risks:
the possibility of unfavorable loss development, including with respect to long-tailed exposures;
the possibility of a pandemic, earthquake, or other natural or man-made disaster that may adversely affect our businesses;