497 1 a12-29691_6497.txt 497 HARTFORD LEADERS ULTRA HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (EST. 12/8/86) PO BOX 14293 LEXINGTON, KY 40512-4293 1-800-862-6668 (CONTRACT OWNERS) 1-800-862-7155 (REGISTERED REPRESENTATIVES) WWW.HARTFORDINVESTOR.COM [THE HARTFORD LOGO] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- This variable annuity prospectus describes a contract between each Owner and joint Owner ("you") and Hartford Life Insurance Company ("us," "we" or "our"). This is an individual, deferred, flexible-premium variable annuity. This Contract is closed to new investors. This variable annuity allows you to allocate your Premium Payment among the following portfolio companies: X Invesco X AllianceBernstein L.P. X Fidelity Investments X Franklin Templeton Investments X Hartford HLS Funds X Lord, Abbett & Co., Inc. X MFS Investment Management X OppenheimerFunds, Inc. X Putnam Investments, LLC X The Universal Institutional Funds, Inc. X Huntington Funds X J.P.Morgan Investment Management Inc. X Wilmington Funds X Sterling Capital Variable Insurance Funds X Wells Fargo Funds Management Please see Appendix C (Fund Data) for additional information. This prospectus refers to several Contract options that differ most significantly in terms of sales charges, if any, and Mortality and Expense Risk charges. As used throughout this prospectus, the Access contract version has no sales charge; Core has a 7 year contingent deferred sales charge (CDSC); Outlook has a 4 year CDSC; and Plus is a bonus annuity with a 8 year CDSC. The amount of the bonus may be more than offset by additional charges. Because of these higher charges, there could be circumstances where you may be worse off purchasing a bonus Contract than purchasing other Contracts variations. The form of Contract selected will be identified on your application and Contract. Not every contract variation may be available from your Financial Intermediary. Please read this prospectus carefully before investing and keep it for your records and for future reference. You can also contact us to get a Statement of Additional Information free of charge. The Statement of Additional Information contains more information about this Contract and, like this prospectus, is filed with the Securities and Exchange Commission ("SEC" or "Commission"). Although we file this prospectus and the Statement of Additional Information with the SEC, the SEC doesn't approve or disapprove these securities or determine if the information in this prospectus is truthful or complete. Anyone who represents that the SEC does these things may be guilty of a criminal offense. This prospectus and the Statement of Additional Information can also be obtained from us or the SEC's website (www.sec.gov). This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long investment time horizon and is not appropriate for people who intend to engage in market timing. You will get NO ADDITIONAL TAX advantage from this variable annuity if you are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account ("IRA")). This prospectus is not intended to provide tax, accounting or legal advice. NOT INSURED BY FDIC OR ANY MAY LOSE NOT A DEPOSIT OF OR GUARANTEED BY [NOT FDIC BANK FEDERAL GOVERNMENT AGENCY VALUE ANY BANK OR ANY BANK AFFILIATE IMAGE]
-------------------------------------------------------------------------------- PROSPECTUS DATED: MAY 1, 2013 STATEMENT OF ADDITIONAL INFORMATION DATED: MAY 1, 2013 2 ------------------------------------------------------------------------------- TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- 1. HIGHLIGHTS 3 2. SYNOPSIS 5 3. GENERAL INFORMATION 8 The Company 8 The Separate Account 8 The Funds 8 Fixed Accumulation Feature 10 4. PERFORMANCE RELATED INFORMATION 11 5. THE CONTRACT 11 a. Purchases and Contract Value 11 b. Charges and Fees 20 c. Surrenders 22 d. Annuity Payouts 24 e. Standard Death Benefits 27 6. OPTIONAL DEATH BENEFITS 30 a. MAV Plus 30 7. MISCELLANEOUS 32 a. Glossary 32 b. State Variations 35 c. More Information 37 d. Legal Proceedings 38 e. How Contracts Are Sold 38 8. FEDERAL TAX CONSIDERATIONS 40 9. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS 46 TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION 54 APPENDIX A - EXAMPLES APP A-1 APPENDIX B - ACCUMULATION UNIT VALUES APP B-1 APPENDIX C - COMPARISON AND FUND DATA APP C-1 APPENDIX D - THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND APP D-1 THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS APPENDIX E - THE HARTFORD'S PRINCIPAL FIRST APP E-1 APPENDIX F - THE HARTFORD'S LIFETIME INCOME FOUNDATION APP F-1 APPENDIX G - THE HARTFORD'S LIFETIME INCOME BUILDER II APP G-1 APPENDIX H - RIDERINVESTMENT RESTRICTIONS APP H-1
3 ------------------------------------------------------------------------------- 1. HIGHLIGHTS A. OVERVIEW This Contract is closed to new investors. This is a deferred, flexible-premium variable annuity. A deferred variable annuity has an accumulation phase and a payout phase. You make investments during the accumulation phase. The value of your investments is used to set your benefits. At the end of the accumulation phase, we use that accumulated value to set the payments that we make during the payout phase. Generally speaking, the longer the accumulation phase, the greater your Contract Value will be for setting your benefits and annuity payouts. This variable annuity provides: X Tax-deferred investing (subject to possible IRS penalty)(Sections 5(c), 8 & 9) X Professional money management (Section 3 & Appendix C) X Guaranteed fixed or lifetime withdrawal benefits (Sections 2, 5(d) & Appendices D - G) X Optional death and/or withdrawal benefits (Section 6 & Appendices D - G) X Death benefit protection (Sections 2, 5(e) & 6) B. HOW TO BUY THIS VARIABLE ANNUITY (Section 5(a)) -- Choose the contract version right for you. Versions available in this prospectus include:
SALES CHARGE TYPE ---------------------------------------------------------------------------------------------- ACCESS None CORE 7 Year - Contingent Deferred Sales Charge OUTLOOK 4 Year - Contingent Deferred Sales Charge PLUS 8 Year - Contingent Deferred Sales Charge
The form of Contract selected will be identified on your application and contract. Not every variation of this variable annuity may be available from your Financial Intermediary. Other available variations for certain Financial Intermediaries are not described in this prospectus. -- Choose an optional feature right for you. Options include:
OPTIONAL FEATURE GENERAL PURPOSE -------------------------------------------------------------------------------- MAV/MAV Plus* Guaranteed Minimum Death Benefit that ratchets up based on performance The Hartford's Principal First* Guaranteed Minimum Withdrawal Benefit with periodic step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Selects* Benefit with limited annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Portfolios* Benefit with full annual step-up rights
* Closed to new investors. For The Hartford's Lifetime Income Builder Portfolios we require that your Contract Value be invested in one or more Programs and in an approved model portfolio, Funds, or other investment vehicles established from time to time. For The Hartford's Lifetime Income Builder Portfolios, The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation, partial Surrenders taken prior to the Lifetime Income Eligibility Date or Eligible Withdrawal Year, or in excess of the available Lifetime Benefit Payment will reduce the Guaranteed Minimum Death Benefit by an amount greater than the amount withdrawn as a result of a proportionate reduction. Optional features are subject to restrictions that may limit or eliminate the availability of these benefits. Optional features selected will be identified on your application and Contract. Not every optional feature may be available from your Financial Intermediary and may be subject to additional restrictions. For more information, see Section 6 & Appendices D - G. -- Complete our application or order request and submit it to your Financial Intermediary for approval. -- Pay the applicable minimum initial Premium Payment. 4 -------------------------------------------------------------------------------
QUALIFIED CONTRACT NON-QUALIFIED CONTRACT -------------------------------------------------------------------------------- ACCESS $2,000 $10,000 CORE $1,000 $1,000 OUTLOOK $2,000 $10,000 PLUS $2,000 $10,000
C. INVESTMENT OPTIONS (Section 3 & Appendix C) You may invest in: X Funds with different investment strategies, objectives and risk/reward profiles. X In certain circumstances, you may also invest in a Fixed Accumulation Feature. D. CHARGES AND FEES (Sections 2, 5(b) & 5(c)) You will pay the following types of fees: X Sales charges (vary by Contract version) X Contract expenses X Optional rider fees (if selected) X Fund expenses E. ASK QUESTIONS BEFORE YOU INVEST Before you decide to buy any variable annuity, consider the following questions: X Will you use the variable annuity primarily to save for retirement or a similar long-term goal? X Are you investing in the variable annuity through a retirement plan or IRA (which would mean that you are not receiving any additional tax-deferral benefit from the variable annuity)? X Are you willing to take the risk that your Contract Value will decrease if your underlying investment options perform poorly? X Do you intend to hold this variable annuity long enough to avoid paying any Surrender charges if you have to withdraw money? X If you are exchanging one annuity for another one, do the benefits of the exchange outweigh the costs, such as any surrender charges you might have to pay if you withdraw your money before the end of the surrender charge period for the new annuity? X Do you need an optional living or Death Benefit? X If you are purchasing our "Plus" variable annuity, are you sure that you understand that you are buying a "bonus" annuity? Do you understand that you pay for Payment Enhancements through higher Surrender charges, a longer surrender period and higher Mortality and Expense Risk charges? Do you know that Payment Enhancements may be more than offset by the additional fees and charges associated with the bonus? Do you know that we may take back some or all Payment Enhancements in certain circumstances? X Can you cancel your contract? (Section 5(a)) F. COMMISSIONS PAID FOR SELLING THIS VARIABLE ANNUITY (Section 7(f)) We pay a commission to your Financial Intermediary for selling this variable annuity. Commissions vary based on a variety of factors such as whether they are paid up front or over time, the type of variable annuity sold and your age. Maximum up-front commissions are: ACCESS 2% CORE 7% OUTLOOK 5.75% PLUS 6.5%
We also provide various promotional incentives to Financial Intermediaries to promote our products. These arrangements create a potential conflict of interest. You should ask your Registered Representative for information regarding these matters. 5 ------------------------------------------------------------------------------- 2. SYNOPSIS THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING YOUR VARIABLE ANNUITY. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY OR SURRENDER THIS VARIABLE ANNUITY. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES
ACCESS CORE OUTLOOK PLUS -------------------------------------------------------------------------------- SALES CHARGE IMPOSED ON PURCHASES None None None None (as a percentage of Premium Payments) $0 - $49,999 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $999,999 $1,000,000+ CONTINGENT DEFERRED SALES CHARGE (1) None (as a percentage of Premium Payments) First Year 7% 7% 8% Second Year 7% 6% 8% Third Year 7% 5% 8% Fourth Year 6% 4% 8% Fifth Year 5% 0% 7% Sixth Year 4% 0% 6% Seventh Year 3% 0% 5% Eighth Year 0% 0% 4% Ninth Year 0% 0% 0% SURRENDER FEE (as a percentage of None None None None amount Surrendered, if applicable) TRANSFER FEE None None None None
(1) Each Premium Payment has its own CDSC schedule. CONTRACT OWNER PERIODIC EXPENSES THE NEXT TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY AND ON A DAILY BASIS (EXCEPT AS NOTED) DURING THE TIME THAT YOU OWN THE VARIABLE ANNUITY, NOT INCLUDING ANNUAL FUND FEES AND EXPENSES.
ACCESS CORE OUTLOOK PLUS -------------------------------------------------------------------------------- ANNUAL MAINTENANCE FEE (2) $30 $30 $30 $30 SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average daily Contract Value) Mortality and Expense Risk Charge 1.50% 1.05% 1.45% 1.45% Administrative Charge 0.20% 0.20% 0.20% 0.20% Total Separate Account Annual 1.70% 1.25% 1.65% 1.65% Expenses MAXIMUM OPTIONAL CHARGES (as a percentage of average daily Contract Value) The Hartford's Principal First 0.75% 0.75% 0.75% 0.75% Charge (3)(4)
(2) Fee waived if Contract Value is $50,000 or more on your Contract Anniversary. (3) You may not own more than one of these optional riders at the same time. (4) Current rider charges are: The Hartford's Lifetime Income Builder II - 0.75%, The Hartford's Principal First - 0.75%. Current charges for The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios (Single and Joint/Spousal Options) are 1.50% (currently waived to 0.85% and 1.15%, respectively). 6 -------------------------------------------------------------------------------
ACCESS CORE OUTLOOK PLUS -------------------------------------------------------------------------------- MAV/MAV Plus Charge 0.30% 0.30% 0.30% 0.30% Total Separate Account Annual Expenses with optional benefit separate account charges 2.75% 2.30% 2.70% 2.70% MAXIMUM OPTIONAL CHARGES (3) (as a percentage of Payment Base (5) The Hartford's Lifetime Income Foundation (3) 0.30% 0.30% 0.30% 0.30% The Hartford's Lifetime Income Builder II (3)(4) 0.75% 0.75% 0.75% 0.75% The Hartford's Lifetime Income Builder Selects (3)(4) - Single Life Option 1.50% 1.50% 1.50% 1.50% - Joint/Spousal Life Option 1.50% 1.50% 1.50% 1.50% The Hartford's Lifetime Income Builder Portfolios (3)(4) - Single Life Option 1.50% 1.50% 1.50% 1.50% - Joint/Spousal Life Option 1.50% 1.50% 1.50% 1.50%
(5) Payment Base is defined in the Glossary and described further in applicable optional riders. THE NEXT ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL ANNUAL FUND OPERATING EXPENSES CHARGED BY THE FUNDS THAT YOU MAY PAY ON A DAILY BASIS DURING THE TIME THAT YOU OWN THIS VARIABLE ANNUITY. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND.
MINIMUM MAXIMUM -------------------------------------------------------------------------------------------------- TOTAL ANNUAL FUND OPERATING EXPENSES 0.42% 2.20% (expenses that are deducted from Sub-Account assets, including management fees, distribution and/or service fees (12b-1) fees, and other expenses. (6)
(6) Please see Appendix C for additional information. 7 ------------------------------------------------------------------------------- EXAMPLE THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THIS VARIABLE ANNUITY WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITIES. LET'S SAY, HYPOTHETICALLY, THAT YOUR ANNUAL INVESTMENT RETURN IS 5% AND THAT YOUR FEES AND EXPENSES TODAY WERE AS HIGH AS POSSIBLE INCLUDING THE ELECTION OF THE OPTIONAL MAV/MAV PLUS DEATH BENEFIT AT THE HIGHEST POSSIBLE CHARGE OF .30% AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS OPTIONAL BENEFIT RIDER AT THE HIGHEST POSSIBLE CHARGE OF 1.50%. THE EXAMPLE ILLUSTRATES THE EFFECT OF FEES AND EXPENSES THAT YOU COULD INCUR (OTHER THAN TAXES). YOUR ACTUAL FEES AND EXPENSES MAY VARY. FOR EVERY $10,000 INVESTED (EXCLUDING PAYMENT ENHANCEMENTS, IF ANY), HERE'S HOW MUCH YOU WOULD PAY UNDER EACH OF THE THREE SCENARIOS POSED: (1) If you Surrender your Contract at the end of the applicable time period: 1 year $1,202 3 years $2,317 5 years $3,246 10 years $5,548
(2) If you annuitize at the end of the applicable time period: 1 year $384 3 years $1,508 5 years $2,623 10 years $5,367
(3) If you do not Surrender your Contract: 1 year $566 3 years $1,690 5 years $2,805 10 years $5,548
FINANCIAL INFORMATION -------------------------------------------------------------------------------- When Premium Payments (and any applicable Payment Enhancements) are credited to your Funds, they are converted into Accumulation Units by dividing the amount of your Premium Payments (and any applicable Payment Enhancements), minus any Premium Taxes, by the Accumulation Unit Value for that day. All classes of Accumulation Unit Values may be obtained, free of charge, by contacting us. See Appendix B - Accumulation Unit Values for additional information. You can find financial statements for us and the Separate Account in the Statement of Additional Information. To receive a copy of the Statement of Additional Information free of charge, call your Registered Representative or contact us. AVAILABLE INFORMATION We provide information about our financial strength in reports filed with the SEC and state insurance departments. For example, we file annual reports (Form 10-K), quarterly reports (Form 10-Q) and periodic reports (Form 8-K) with the SEC. Forms 10-K and 10-Q include information such as our financial statements, management discussion and analysis of the previous year of operations, risk factors, and other information. Form 8-K reports are used to communicate important developments that are not otherwise disclosed in the other forms described above. You may read or copy these reports at the SEC's Public Reference Room at 100 F. Street N.E., Room 1580, Washington, D.C. 20549-2001. You may also obtain reports and other information about us by contacting us using the information stated on the cover page of this prospectus, visiting our website at www.hartfordinvestor.com or visiting at the SEC's website at www.sec.gov. You may also obtain reports and other financial information about us by contacting your state insurance department. 8 ------------------------------------------------------------------------------- 3. GENERAL INFORMATION THE COMPANY We are a stock life insurance company engaged in the business of writing life insurance and individual and group annuities. Hartford Life Insurance Company is authorized to do business in all states of the United States, Puerto Rico and the District of Columbia. Hartford Life and Annuity Insurance Company is authorized to do business in all states of the United States except New York, Puerto Rico and the District of Columbia. Hartford Life and Annuity Insurance Company was originally incorporated under the laws of Wisconsin on January 9, 1956, and subsequently redomiciled to Connecticut. Hartford Life Insurance Company was originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our offices are located in Simsbury, Connecticut. Not all Contracts are available from each issuing company. Neither company cross guarantees the obligations of the other. We are ultimately controlled by The Hartford Financial Services Group, Inc., one of the largest financial service providers in the United States. THE GENERAL ACCOUNT The Fixed Accumulation Feature (including amounts invested in the DCA Plus program) are part of our General Account. Any amounts that we are obligated to pay under the Fixed Accumulation Feature and any other payment obligation we undertake under the Contract are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. We invest the assets of the General Account according to the laws governing the investments of insurance company general accounts. The General Account is not a bank account and is not insured by the FDIC or any other government agency. We receive a benefit from all amounts held in our General Account. Amounts in our General Account are available to our general creditors. We issue other types of insurance policies and financial products and pay our obligations under these products from our assets in the General Account. THE SEPARATE ACCOUNT We set aside and invest the assets of some of our annuity contracts, including this Contract, in a Separate Account. These Separate Accounts are registered as unit investment trusts under the 1940 Act. This registration does not involve supervision by the SEC of the management or the investment practices of a Separate Account or us. Separate Accounts meet the definition of "Separate Account" under federal securities law. The Separate Accounts referenced in this prospectus hold only assets for variable annuity contracts. These Separate Accounts: - Hold assets for your benefit and the benefit of other Contract Owners, and the persons entitled to the payouts described in the Contract. - Are not subject to the liabilities arising out of any other business we may conduct. The General Account is subject to the Company's claims-paying ability. Investors must look to the strength of the insurance company with regard to insurance company guarantees. Our ability to honor all guarantees under the Contract is subject to our claims-paying capabilities and/or financial strength. - Are not affected by the rate of return of our General Account or by the investment performance of any of our other Separate Accounts. - May be subject to liabilities from a Sub-Account of a Separate Account that holds assets of other variable annuity contracts offered by a Separate Account, which are not described in this prospectus. - Are credited with income and gains, and takes losses, whether or not realized, from the assets they hold without regard to our other income, gains or loss. We do not guarantee the investment results of any Separate Account. There is no assurance that the value of your Contract will equal the total of the payments you make to us. THE FUNDS The Funds available for investment are described in Appendix C. These are not the same mutual funds that you can buy through your stockbroker even though they may have similar investment strategies and the same portfolio managers. Each Fund has varying degrees of investment risk. Funds are also subject to separate fees and expenses such as management fees, distribution fees and operating expenses. "Master-feeder" or "fund of funds" ("feeder funds") invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return. PLEASE CONTACT US TO OBTAIN A COPY OF THE PROSPECTUSES FOR EACH FUND (OR FOR ANY FEEDER FUNDS). READ THESE PROSPECTUSES CAREFULLY BEFORE INVESTING. We do not guarantee the investment results of any Fund. Certain Funds may not be available in all states and in all variations of this Contract. MIXED AND SHARED FUNDING - Fund shares may be sold to our other separate accounts, our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, 9 ------------------------------------------------------------------------------- pursuant to a practice known as "mixed and shared funding." As a result, there is a possibility that a material conflict may arise between the interests of Contract Owners, and other contract owners investing these Funds. If a material conflict arose, we will consider what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another underlying fund. VOTING RIGHTS - We are the legal owners of all Fund shares held in the Separate Account and we have the right to vote at the Funds' shareholder meetings. To the extent required by federal securities laws or regulations, we will: - Notify you of any Fund shareholders' meeting if the shares held for your Contract may be voted. - Send proxy materials and a form of instructions that you can use to tell us how to vote the Fund shares held for your Contract. - Arrange for the handling and tallying of proxies received from Contract Owners. - Vote all Fund shares attributable to your Contract according to instructions received from you, and - Vote all Fund shares for which no voting instructions are received in the same proportion as shares for which instructions have been received. If any federal securities laws or regulations, or their present interpretation, change to permit us to vote Fund shares on our own, we may decide to do so. You may attend any shareholder meeting at which shares held for your Contract may be voted. After we begin to make Annuity Payouts to you, the number of votes you have will decrease. As a result of proportional voting, a small number of Contract Owners could determine the outcome of a proposition subject to shareholder vote. SUBSTITUTIONS, ADDITIONS, OR DELETIONS OF FUNDS - Subject to any applicable law, we may make certain changes to the underlying funds offered under your Contract. We may, in our sole discretion, establish new Funds. New Funds may be made available to existing Contract Owners as we deem appropriate. We may also close one or more Funds to additional Premium Payments or transfers from existing Funds. We may liquidate one or more Sub-Accounts if the board of directors of any Fund determines that such actions are prudent. Unless otherwise directed, investment instructions will be automatically updated to reflect the Fund surviving after any merger, substitution or liquidation. We may eliminate the shares of any of the Funds from the Contract for any reason and we may substitute shares of another registered investment company for the shares of any Fund already purchased or to be purchased in the future by the Separate Account. To the extent required by the 1940 Act, substitutions of shares attributable to your interest in a Fund will not be made until we have the approval of the SEC and we have notified you of the change. In the event of any substitution or change, we may, by appropriate endorsement, make any changes in the Contract necessary or appropriate to reflect the substitution or change. If we decide that it is in the best interest of the Contract Owners, the Separate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-registered under the 1940 Act in the event such registration is no longer required, or may be combined with one or more other Separate Accounts. FEES AND PAYMENTS WE RECEIVE FROM FUNDS AND RELATED PARTIES- We receive substantial fees and payments with respect to the Funds that are offered through your Contract (sometimes referred to as "revenue sharing" payments). We consider these fees and payments, among a number of facts, when deciding to include a Fund that we offer through the Contract. All of the Funds on the overall menu make payments to Hartford or an affiliate. We receive these payments and fees under agreements between us and a Fund's principal underwriter, transfer agent, investment adviser and/or other entities related to the Funds in amounts up to 0.55% of assets invested in a Fund. These fees and payments may include asset-based sales compensation and service fees under distribution and/or servicing plans adopted by Funds pursuant to Rule 12b-1 under the Investment Company Act of 1940. These fees and payments may also include administrative service fees and additional payments, expense reimbursements and other compensation. Hartford expects to make a profit on the amount of the fees and payments that exceed Hartford's own expenses, including our expenses of payment compensation to broker-dealers, financial institutions and other persons for selling the Contracts. The availability of these types of arrangements creates an incentive for us to seek and offer Funds (and classes of shares of such Funds) that pay us revenue sharing. Other funds (or available classes of shares) may have lower fees and better overall investment performance. As of December 31, 2012, we have entered into arrangements to receive administrative service payments and/or Rule 12b-1 fees from each of the following Fund complexes (or affiliated entities): AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investments, American Variable Insurance Series & Capital Research and Management Company, American Century Investment Services Inc., BlackRock Advisors, LLC, BlackRock Investment, LLC, Columbia Management Distributors, Inc., Fidelity Distributors Corporation, Fidelity Investments Institutional Operations Company, Franklin Templeton Services, LLC, HL Investment Advisors, LLC, The Huntington Funds, Invesco Advisors Inc., Invesco Distributors Inc., Lord Abbett Series Fund & Lord Abbett Distributor, LLC, MFS Fund Distributors, Inc. & Massachusetts Financial Services Company, Morgan Stanley Distribution, Inc. & Morgan Stanley Investment Management & The Universal Institutional Funds, 10 ------------------------------------------------------------------------------- JPMorgan Investment Advisors, Inc., Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Pacific Investment Management Company, LLC, Pioneer Variable Contracts Trust & Pioneer Investment Management, Inc. & Pioneer Funds Distributor, Inc., Prudential Investment Management Services, LLC, Putnam Retail Management Limited Partnership, Sterling Capital Variable Insurance Funds, The Victory Variable Insurance Funds & Victory Capital Management, Inc. & Victory Capital Advisers, Inc. and Wells Fargo Variable Trust & Wells Fargo Fund Management, LLC. We are affiliated with Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (collectively, the HLS Funds) based on our affiliation with their investment advisers HL Investment Advisors, LLC and Hartford Investment Management Company. In addition to investment advisory fees, we, or our other insurance company affiliates, receive fees to provide, among other things, administrative, processing, accounting and shareholder services for the HLS Funds. Not all Fund complexes pay the same amount of fees and compensation to us and not all Funds pay according to the same formula. Because of this, the amount of fees and payments received by Hartford varies by Fund and Hartford may receive greater or less fees and payments depending on the Funds you select. Revenue sharing payments and Rule 12b-1 fees did not exceed 0.40% and 0.35%, respectively, in 2012, and are not expected to exceed 0.40% and 0.35%, respectively, of the annual percentage of the average daily net assets (for instance, assuming that you invested in a Fund that paid us the maximum fees and you maintained a hypothetical average balance of $10,000, we would collect a total of $75 from that Fund). For the fiscal year ended December 31, 2012, revenue sharing payments and Rule 12b-1 fees did not collectively exceed approximately $106.8 million. These fees do not take into consideration indirect benefits received by offering HLS Funds as investment options. FIXED ACCUMULATION FEATURE Effective October 4, 2013, we will no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature. The following information applies only for Contract Value allocated to or in the Fixed Accumulation Feature prior to October 4, 2013. THIS PORTION OF THE PROSPECTUS RELATING TO THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED UNDER THE 1933 ACT AND THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED AS AN INVESTMENT COMPANY UNDER THE 1940 ACT. THE FIXED ACCUMULATION FEATURE OR ANY OF ITS INTERESTS ARE NOT SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 1940 ACT, AND THE STAFF OF THE SEC HAS NOT REVIEWED THE DISCLOSURE REGARDING THE FIXED ACCUMULATION FEATURE. THE FOLLOWING DISCLOSURE ABOUT THE FIXED ACCUMULATION FEATURE MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF DISCLOSURES. THE FIXED ACCUMULATION FEATURE IS NOT OFFERED IN ALL CONTRACTS AND IS NOT AVAILABLE IN ALL STATES. Premium Payments (and any applicable Payment Enhancements) and Contract Values allocated to the Fixed Accumulation Feature become a part of our General Account assets. We invest the assets of the General Account according to the laws governing the investments of insurance company General Accounts. The General Account is not a bank account and is not insured by the FDIC or any other government agency. We receive a benefit from all amounts held in the General Account. Premium Payments (and any applicable Payment Enhancements) and Contract Values allocated to the Fixed Accumulation Feature are available to our general creditors. We guarantee that we will credit interest to amounts you allocate to the Fixed Accumulation Feature at a minimum rate that meets your State's minimum non-forfeiture requirements. Non-forfeiture rates vary from state-to-state. We reserve the right to prospectively declare different rates of excess interest depending on when amounts are allocated or transferred to the Fixed Accumulation Feature. This means that amounts at any designated time may be credited with a different rate of excess interest than the rate previously credited to such amounts and to amounts allocated or transferred at any other designated time. We will periodically publish the Fixed Accumulation Feature interest rates currently in effect. There is no specific formula for determining interest rates and no assurances are offered as to future rates. Some of the factors that we may consider in determining whether to credit excess interest are: general economic trends, rates of return currently available for the types of investments and durations that match our liabilities and anticipated yields on our investments regulatory and tax requirements and competitive factors. We will account for any deductions, Surrenders or transfers from the Fixed Accumulation Feature on a "first-in, first-out" basis. The Fixed Accumulation Feature interest rates may vary by State. ANY INTEREST CREDITED TO AMOUNTS YOU ALLOCATE TO THE FIXED ACCUMULATION FEATURE IN EXCESS OF THE MINIMUM GUARANTEED INTEREST RATE WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK THAT INTEREST CREDITED TO THE FIXED ACCUMULATION FEATURE MAY NOT EXCEED THE MINIMUM GUARANTEED INTEREST RATE FOR ANY GIVEN YEAR. WHILE WE DO NOT CHARGE A SEPARATE RIDER FEE FOR INVESTING IN THE FIXED ACCUMULATION FEATURE, OUR EXPENSES ASSOCIATED WITH OFFERING THIS FEATURE ARE FACTORED INTO THE FIXED ACCUMULATION FEATURE. As stated above, effective [October 4, 2013], we will no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature. 11 ------------------------------------------------------------------------------- 4. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of either the Separate Account's inception or the Sub-Account's inception, whichever is later, for one year, five years, and ten years or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. Total return calculations reflect a deduction for Total Annual Fund Operating Expenses, any CDSC, and Separate Account Annual Expenses without any optional charge deductions, and the Annual Maintenance Fee. The Separate Account may also advertise non-standardized total returns that pre-date the inception of the Separate Account. These non-standardized total returns are calculated by assuming that the Sub-Accounts have been in existence for the same periods as the Funds and by taking deductions for charges equal to those currently assessed against the Sub-Accounts. Non-standardized total return calculations reflect a deduction for Total Annual Fund Operating Expenses and Separate Account Annual Expenses without any optional charge deductions, and do not include deduction for any applicable CDSC or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than the standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized returns. If applicable, the Sub-Accounts may advertise yield in addition to total return. This yield is based on the 30-day SEC yield of the Fund less the recurring charges at the Separate Account level. A money market Sub-Account may advertise yield and effective yield. The yield of a Sub-Account is based upon the income earned by the Sub-Account over a seven-day period and then annualized, i.e. the income earned in the period is assumed to be earned every seven days over a 52-week period and stated as a percentage of the investment. Effective yield is calculated similarly but when annualized, the income earned by the investment is compounded in the course of a 52-week period. Yield and effective yield include the recurring charges at the Separate Account level. We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as systematic investing, Dollar Cost Averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contract and the characteristics of and market for such alternatives. 5. THE CONTRACT A. PURCHASES AND CONTRACT VALUE WHO CAN BUY THIS CONTRACT? The Contract is an individual or group tax-deferred variable annuity Contract. It is designed for retirement planning purposes and may be purchased by any individual, group or trust, including: - Any trustee or custodian for a retirement plan qualified under Section 401(a) of the Code; - Individual Retirement Annuities adopted according to Section 408 of the Code; - Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state or a political subdivision of a state; and - Certain eligible deferred compensation plans as defined in Section 457 of the Code. The examples above represent qualified Contracts, as defined by the Code. In addition, individuals and trusts can also purchase Contracts that are not part of a tax qualified retirement plan. These are known as non-qualified Contracts. If you are purchasing the Contract for use in an IRA or other qualified retirement plan, you should consider other features of the Contract besides tax deferral, since any investment vehicle used within an IRA or other qualified plan receives tax-deferred treatment under the Code. We no longer accept any incoming 403(b) exchanges, transfers or applications for 403(b) individual annuity contracts or additional Premium Payments into any individual annuity contract funded through a 403(b) plan. Not all forms of contracts may be available through your Registered Representative or from each issuing company. 12 ------------------------------------------------------------------------------- HOW DO YOU PURCHASE A CONTRACT? You may only purchase a Contract through a Financial Intermediary. A Registered Representative will work with you to complete and submit an application or an order request form. Part of this process will include an assessment whether this variable annuity may be suitable for you. Prior to recommending the purchase or exchange of a deferred variable annuity, your Registered Representative shall make reasonable efforts to obtain certain information about you and your investment needs. This recommendation will be independently reviewed by a principal within your Financial Intermediary before an application or order will be sent to us. Your Premium Payment will not be invested in any Fund during this period. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, your Financial Intermediary will ask for your name, address, date of birth and other information that will allow us to identify you. They may also ask to see your driver's license or other identifying documents. Non-Resident Alien ("NRA") application submissions require our prior approval. The minimum initial Premium Payment required to buy this Contract varies based on the type of purchaser, variable annuity variation chosen and whether you enroll in a systematic investment program such as the InvestEase(R) Program. See the Highlights section for more information. Financial Intermediaries may impose other requirements regarding the form of payment they will accept. Premium Payments not actually received by us within the time period provided below will result in the rejection of your application or order request. Premium Payments sent to us must be made in U.S. dollars and checks must be drawn on U.S. banks. We do not accept cash; third party checks or double endorsed checks. We reserve the right to limit the number of checks processed at one time. If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees incurred. A check must clear our account through our Administrative Office to be considered to be in good order. We will not accept Premium Payments of $1 million or more unless we provide prior approval. We reserve the right to impose special conditions on anyone who seeks our prior approval to purchase a Contract with Premium Payments of $1 million or more. In order to request prior approval, you must submit a completed enhanced due diligence form prior to the submission of your application: - if you are seeking to purchase a Contract with an initial Premium Payment of $1 million or more; - if total Premium Payments aggregated by social security number or taxpayer identification number equal $1 million or more; and - for all applications where the Owner or joint Owner are non-resident aliens. You and your Annuitant must not be older than age 85 on the date that your Contract is issued. You must be of minimum legal age in the state where the Contract is being purchased or a guardian must act on your behalf. Optional riders are subject to additional maximum issue age restrictions. It is important that you notify us if you change your address. If your mail is returned to us, we are likely to suspend future mailings until an updated address is obtained. In addition, we may rely on a third party, including the US Postal Service, to update your current address. Failure to give us a current address may result in payments due and payable on your annuity contract being considered abandoned property under state law, and remitted to the applicable state. CAN YOU CANCEL YOUR CONTRACT AFTER YOU PURCHASE IT? Yes. If for any reason you are not satisfied with your Contract, simply return it within ten days after you receive it with a written request for cancellation that indicates your tax-withholding instructions. In some states, you may be allowed more time to cancel your Contract. We may require additional information, including a signature guarantee, before we can cancel your Contract. Unless otherwise required by state law, we will pay you your Contract Value as of the Valuation Day we receive your request to cancel and will refund any sales or Contract charges incurred during the period you owned the Contract. The Contract Value may be more or less than your Premium Payments depending upon the investment performance of your Account. This means that you bear the risk of any decline in your Contract Value until we receive your notice of cancellation. In certain states, however, we are required to return your Premium Payment without deduction for any fees or charges. If you cancel a Plus Contract, we will recapture any Payment Enhancements we previously credited to your Contract, and you will assume the risk of any investment loss on those Payment Enhancements. HOW ARE PREMIUM PAYMENTS APPLIED TO YOUR CONTRACT? Your initial Premium Payment will usually be invested within two Valuation Days of our actual receipt at our Administrative Office of both a properly completed application or order request and the Premium Payment, both being in good order. If we receive your subsequent Premium Payment before the end of a Valuation Day, it will be invested on the same Valuation Day. If we receive your 13 ------------------------------------------------------------------------------- subsequent Premium Payment after the end of a Valuation Day, it will be invested on the next Valuation Day. If we receive your subsequent Premium Payment on a non-Valuation Day, the amount will be invested on the next Valuation Day. Unless we receive new instructions, we will invest all Premium Payments based on your last instructions on record. We will send you a confirmation when we invest your Premium Payments If the request or other information accompanying the initial Premium Payment is incomplete or not in good order when received, we will hold the money in a non-interest bearing account for up to five Valuation Days (from the Valuation Day that we actually receive your initial Premium Payment at our Administrative Office) while we try to obtain complete information. If we cannot obtain the information within five Valuation Days, we will either return the Premium Payment and explain why the Premium Payment could not be processed or keep the Premium Payment if you authorize us to keep it until you provide the necessary information. Generally, we will receive your application or order request (whether for an initial purchase or a subsequent investment) after your Financial Intermediary has completed a suitability review. We will then consider if your investment is in good order. While the suitability good order process is underway, Premium Payments will not be applied to your Contract. You will not earn any interest on Premium Payments even if your Premium Payments have been sent to us or deposited into our bank account. We are not responsible for market losses, gains or lost investment opportunities incurred during this review period or if your Financial Intermediary asks us to unwind a transaction based on their review of your Registered Representative's recommendations. Your Financial Institution, and we, may directly or indirectly earn income on your Premium Payments. These circumstances represent a conflict of interest. For more information, contact your Registered Representative. For Plus contracts only, we add an additional sum to your Account Value equal to 4% of the Premium Payment if cumulative Premium Payments are less than $50,000 or 5% of the Premium Payment if cumulative Premium Payments are $50,000 or more. If a subsequent Premium Payment increases cumulative Premium Payments to $50,000 or more, we will credit an additional Payment Enhancement to your Contract Value equal to 1% of your Premium Payments. Payment Enhancements will be allocated to the same Accounts and in the same proportion as your Premium Payment. The cost of providing Payment Enhancements is included in the higher Mortality and Expense Risk charges and a larger CDSC extending over a longer period of time. We expect to make a profit from bonus charges. Payment Enhancements will be recaptured if you: - Cancel your Contract during any "Right to Examine" period. - Annuitize your Contract, you will forfeit Payment Enhancements credited in the 24 months prior to the Annuity Commencement Date. - Request a full or partial Surrender under the CDSC exemption applicable when you are a patient in a certified long-term care facility or other eligible facility. There could be circumstances where you may be worse off purchasing a Plus Contract than other Contract variations. For example, if the Contract is cancelled during the free look period, we recapture any Payment Enhancement(s) that have been credited to your Contract. If state law provides that Contract Value is returned on a free look, and if the performance of the applicable Sub-Accounts has been negative during that period, we will return the Contract Value less the Payment Enhancement(s). The negative performance associated with the Payment Enhancement(s) will reduce the Contract Value more than if the Payment Enhancement(s) had not been applied. HOW IS THE VALUE OF YOUR CONTRACT CALCULATED BEFORE THE ANNUITY COMMENCEMENT DATE? The Contract Value is the sum of the value of the Fixed Accumulation Feature, if applicable, and all Funds. There are two things that affect your Contract Value: (1) the number of Accumulation Units, and (2) the Accumulation Unit Value. Contract Value is determined by multiplying the number of Accumulation Units by the Accumulation Unit Value. On any Valuation Day the investment performance of the Sub-Accounts will fluctuate with the performance of the Funds. When Premium Payments are credited to your Account, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. The more Premium Payments you make to your Contract, the more Accumulation Units you will own. You decrease the number of Accumulation Units you have by requesting partial or full Surrenders, settling a Death Benefit claim or by annuitizing your Contract. To determine the current Accumulation Unit Value, we take the prior Valuation Day's Accumulation Unit Value and multiply it by the Net Investment Factor for the current Valuation Day. The Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. The Net Investment Factor for each Sub-Account equals: - The net asset value per share plus applicable distributions per share of each Fund at the end of the current Valuation Day; reduced by - The net asset value per share of each Fund at the end of the prior Valuation Day; reduced by 14 ------------------------------------------------------------------------------- - Contract charges including the deductions for the mortality and expense risk charge and any other periodic expenses, including charges for optional benefits, divided by the number of days in the year multiplied by the number of days in the Valuation period. We will send you a statement at least annually. WHAT OTHER WAYS CAN YOU INVEST? You may enroll in the following features (sometimes called a "Program") for no additional fee. Not all Programs are available with all Contract variations. - INVESTEASE This electronic funds transfer feature allows you to have money automatically transferred from your checking or savings account and deposited into your Contract on a monthly or quarterly basis. It can be changed or discontinued at any time. The minimum amount for each transfer is $50. You can elect to have transfers made into any available Fund. You can not use this Program to invest in the DCA Plus Programs. - STATIC ASSET ALLOCATION MODELS This feature allows you to select an asset allocation model of Funds based on several potential factors including your risk tolerance, time horizon, investment objectives, or your preference to invest in certain funds or fund families. Based on these factors, you can select one of several asset allocation models, with each specifying percentage allocations among various Funds available under your Contract. Some asset allocation models are based on generally accepted investment theories that take into account the historic returns of different asset classes (e.g., equities, bonds or cash) over different time periods. Other asset allocation models focus on certain potential investment strategies that could possibly be achieved by investing in particular funds or fund families and are not based on such investment theories. If you choose to participate in one of these asset allocation models, you must invest all of your Premium Payment into one model. You may invest in an asset allocation model through the Dollar Cost Averaging Program where the Fixed Accumulation Feature or a Dollar Cost Averaging Plus Program is the source of the assets to be invested in the asset allocation model you have chosen. You can also participate in these asset allocation models while enrolled in the Automatic Income Program. You may participate in only one asset allocation model at a time. Asset allocation models cannot be combined with other asset allocation models or with individual sub-account elections. You can switch asset allocation models up to twelve times per year. Your ability to elect or switch into and between asset allocation models may be restricted based on fund abusive trading restrictions. You may be required to invest in an acceptable asset allocation model as a condition for electing and maintaining certain guaranteed minimum withdrawal benefits. Your investments in an asset allocation model will be rebalanced quarterly to reflect the model's original percentages and you may cancel your model at any time subject to investment restrictions for maintaining certain guaranteed minimum withdrawal benefits. We have no discretionary authority or control over your investment decisions. These asset allocation models are based on then available Funds and do not include the Fixed Accumulation Feature. We make available educational information and materials (e.g., risk tolerance questionnaire, pie charts, graphs, or case studies) that can help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice as to what asset allocation model may be appropriate for you. While we will not alter allocation percentages used in any asset allocation model, allocation weightings could be affected by mergers, liquidations, fund substitutions or closures. Individual availability of these models is subject to fund company restrictions. Please refer to WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? for more information. You will not be provided with information regarding periodic updates to the Funds and allocation percentages in the asset allocation models, and we will not reallocate your Account Value based on those updates. Information on updated asset allocation models may be obtained by contacting your Registered Representative. If you wish to update your asset allocation model, you may do so by terminating your existing model and re-enrolling into a new one. Investment alternatives other than these asset allocation models are available that may enable you to invest your Contract Value with similar risk and return characteristics. When considering an asset allocation model for your individual situation, you should consider your other assets, income and investments in addition to this annuity. - ASSET REBALANCING In asset rebalancing, you select a portfolio of Funds, and we will rebalance your assets at the specified frequency to reflect the original allocation percentages you selected. You can choose how much of your Contract Value you want to invest in this program. You can also combine this program with others such as the Automatic Income Program and Dollar Cost Averaging Program (subject to restrictions). You may designate only one set of asset allocation instructions at a time. 15 ------------------------------------------------------------------------------- - DOLLAR COST AVERAGING We offer three dollar cost averaging programs: - DCA Plus - Fixed Amount DCA - Earnings/Interest DCA DCA Plus - Effective October 4, 2013, the DCA Plus program will no longer be available and we will no longer accept initial or subsequent Premium Payments into the program. Contract Owners who have commenced either a 12-month or 6-month Transfer Program prior to October 4, 2013 will be allowed to complete their current program, but will not be allowed to elect a new program. These programs allow you to earn a fixed rate of interest on investments. These programs are different from the Fixed Accumulation Feature. We determine, in our sole discretion, the interest rates to be credited. These interest rates may vary depending on the Contract you purchased and the date the request for the program is received. Please consult your Registered Representative to determine the interest rate for your Program. You may elect either the "12-Month Transfer Program" or the "6-Month Transfer Program". - Under the 12-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 12 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 12 month period. You must make at least 7 but no more than 12 transfers to fully deplete sums invested in this Program. Transfers out will occur monthly. - Under the 6-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 6 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 6 month period. You must make at least 3 but no more than 6 transfers to fully deplete sums invested in this Program. Transfers out will occur monthly. - Each time you make a subsequent Premium Payment, you can invest in a different rate lock program. Any subsequent investments made in a month (or other interest rate effective period) other than your last program investment are considered a separate rate lock program investment. You can invest in up to 5 different rate lock programs at one time. - You must invest at least $5,000 in each rate lock program ($2,000 for qualified plan transfers or rollovers, including IRAs). We may pre-authorize transfers from our Fixed Accumulation Feature subject to restrictions. This minimum amount applies to the initial and all subsequent Premium Payments in a given rate lock program. - Pre-authorized transfers will begin within 15 days of receipt of the Program payment provided we receive complete enrollment instructions in good order. - If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is active on the contract, we will set up the new Program to mirror the existing one. If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is not active on the contract, but is the future investment allocation and a Static Model Portfolio Plan is active on the contract, we will set up the new Program to move funds to the Static Model Portfolio Plan. Otherwise, we will contact your investment professional to obtain complete instructions. If we do not receive in good order enrollment instructions within the 15 day timeframe noted above, we will refund the Program payment for further instruction. - If your Program payment is less than the required minimum amount, we will invest into the destination funds indicated on the Program instructions accompanying the payment. If Program instructions were not provided and a DCA Plus Program is active on the contract, we will apply the payment to the destination funds of the current DCA Plus program. Otherwise, we will contact your investment professional to obtain further investment instructions. - The credited interest rate used under the DCA Plus Programs is not earned on the full amount of your Premium Payment for the entire length of the Program because Program transfers to Funds decrease the amount of your Premium Payment remaining in the Program. - You may elect to terminate your involvement in this Program at any time. Upon cancellation, all the amounts remaining in the Program will be immediately transferred to the Funds you designated. Fixed Amount DCA - This feature allows you to regularly transfer (monthly or quarterly) a fixed amount from the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into a different Fund. This program begins approximately 15 days following the next monthly Contract Anniversary from the day the enrollment requested is established unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. 16 ------------------------------------------------------------------------------- Earnings/Interest DCA - This feature allows you to regularly transfer (monthly or quarterly) the interest earned from your investment in the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into another Fund. This program begins two business days plus the frequency selected unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. - AUTOMATIC INCOME PROGRAM This systematic withdrawal feature allows you to make partial Surrenders up to 10% of your total Premium Payments or, if an optional withdrawal benefit is elected, up to the allowable limit under the rider, each Contract Year without a CDSC, if applicable. You can designate the Funds to be surrendered from and also choose the frequency of partial Surrenders (monthly, quarterly, semiannual, or annually). The minimum amount of each Surrender is $100. Amounts taken under this program will count towards the AWA and rider limit, and if received prior to age 59 1/2, may have adverse tax consequences, including a 10% federal income tax penalty on the taxable portion of the Surrender payment. You may satisfy Code Section 72(t)/(q) requirements by enrolling in this program. Please see sections 8 and 9 for more information about the tax consequences associated with your Contract. Your level of participation in this program may result in your exceeding permissible withdrawal limits under certain optional withdrawal riders. - OTHER PROGRAM CONSIDERATIONS - You may terminate your enrollment in any Program at any time. - We may discontinue, modify or amend any of these Programs at any time. We will automatically and unilaterally amend your enrollment instructions if: - any Fund is merged or substituted into another Fund - then your allocations will be directed to the surviving Fund; or - any Fund is liquidated - then your allocations to that Fund will be directed to any available money market Fund. You may always provide us with updated instructions following any of these events. - Continuous or periodic investment neither insures a profit nor protects against a loss in declining markets. Because these Programs involve continuous investing regardless of fluctuating price levels, you should carefully consider your ability to continue investing through periods of fluctuating prices. - If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait six months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. - We make available educational information and materials (e.g., pie charts, graphs, or case studies) that can help you select a model portfolio, but we do not recommend models or otherwise provide advice as to what model portfolio may be appropriate for you. - Asset allocation does not guarantee that your Contract Value will increase nor will it protect against a decline if market prices fall. If you choose to participate in an asset allocation program, you are responsible for determining which model portfolio is best for you. Tools used to assess your risk tolerance may not be accurate and could be useless if your circumstances change over time. Although each model portfolio is intended to maximize returns given various levels of risk tolerance, a model portfolio may not perform as intended. Market, asset class or allocation option class performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause a model portfolio to be ineffective or less effective in reducing volatility. A model portfolio may perform better or worse than any single Fund, allocation option or any other combination of Funds or allocation options. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of model portfolios can cause their component Funds to incur transactional expenses to raise cash for money flowing out of Funds or to buy securities with money flowing into the Funds. Moreover, large outflows of money from the Funds may increase the expenses attributable to the assets remaining in the Funds. These expenses can adversely affect the performance of the relevant Funds and of the model portfolios. In addition, these inflows and outflows may cause a Fund to hold a large portion of its assets in cash, which could detract from the achievement of the Fund's investment objective, particularly in periods of rising market prices. For additional information regarding the risks of investing in a particular Fund, see that Fund's prospectus. - Additional considerations apply for qualified Contracts with respect to Static Asset Allocation Model programs. Neither we, nor any third party service provider, nor any of their respective affiliates, is acting as a fiduciary under The Employee Retirement Income Security Act of 1974, as amended (ERISA) or the Code, in providing any information or other communication contemplated by any Program, including, without limitation, any model portfolios. That information and communications are not intended, and may not serve as a primary basis for your investment decisions with respect to your participation in a Program. Before choosing to participate in a Program, you must determine that you are capable of exercising control and management of the assets of the plan and of making an independent and informed decision concerning your participation in the Program. Also, you are solely responsible for determining whether and to what extent the Program is appropriate for you and the assets contained in the qualified Contract. 17 ------------------------------------------------------------------------------- Qualified Contracts are subject to additional rules regarding participation in these Programs. It is your responsibility to ensure compliance of any recommendation in connection with any model portfolio with governing plan documents. - These Programs may be modified, terminated or adversely impacted by the imposition of Fund trading policies. CAN YOU TRANSFER FROM ONE FUND TO ANOTHER? Yes. During those phases of your Contract when transfers are permissible, you may make transfers between Funds according to the following policies and procedures, as they may be amended from time to time. - WHAT IS A SUB-ACCOUNT TRANSFER? A Sub-Account transfer is a transaction requested by you that involves reallocating part or all of your Contract Value among the Funds available in your Contract. Your transfer request will be processed as of the end of the Valuation Day that it is received in good order. Otherwise, your request will be processed on the following Valuation Day. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly advising us of any errors within 30 days of receiving the confirmation. - WHAT HAPPENS WHEN YOU REQUEST A SUB-ACCOUNT TRANSFER? Many Contract Owners request Sub-Account transfers. Some request transfers into (purchases) a particular Sub-Account, and others request transfers out of (redemptions) a particular Sub-Account. In addition, some Contract Owners allocate new Premium Payments to Sub-Accounts, and others request Surrenders. We combine all the daily requests to transfer out of a Sub-Account along with all Surrenders from that Sub-Account and determine how many shares of that Fund we would need to sell to satisfy all Contract Owners' "transfer-out" requests. At the same time, we also combine all the daily requests to transfer into a particular Sub-Account or new Premium Payments allocated to that Sub-Account and determine how many shares of that Fund we would need to buy to satisfy all Contract Owners' "transfer-in" requests. In addition, many of the Funds that are available as investment options in our variable annuity products are also available as investment options in variable life insurance policies, retirement plans, funding agreements and other products offered by us or our affiliates. Each day, investors and participants in these other products engage in similar transfer transactions. We take advantage of our size and available technology to combine sales of a particular Fund for many of the variable annuities, variable life insurance policies, retirement plans, funding agreements or other products offered by us or our affiliates. We also combine many of the purchases of that particular Fund for many of the products we offer. We then "net" these trades by offsetting purchases against redemptions. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. This means that we sometimes reallocate shares of a Fund rather than buy new shares or sell shares of the Fund. For example, if we combine all transfer-out (redemption) requests and Surrenders of a stock Fund Sub-Account with all other sales of that Fund from all our other products, we may have to sell $1 million dollars of that Fund on any particular day. However, if other Contract Owners and the owners of other products offered by us, want to transfer-in (purchase) an amount equal to $300,000 of that same Fund, then we would send a sell order to the Fund for $700,000 (a $1 million sell order minus the purchase order of $300,000) rather than making two or more transactions. - WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? FIRST, YOU MAY MAKE ONLY ONE SUB-ACCOUNT TRANSFER REQUEST EACH DAY. We limit each Contract Owner to one Sub-Account transfer request each Valuation Day. We count all Sub-Account transfer activity that occurs on any one Valuation Day as one "Sub-Account transfer", however, you cannot transfer the same Contract Value more than once a Valuation Day. EXAMPLES
TRANSFER REQUEST PER VALUATION DAY PERMISSIBLE? -------------------------------------------------------------------------------- Transfer $10,000 from a money market Sub-Account to a growth Yes Sub-Account Transfer $10,000 from a money market Sub-Account to any number Yes of other Sub-Accounts (dividing the $10,000 among the other Sub-Accounts however you chose) Transfer $10,000 from any number of different Sub-Accounts to Yes any number of other Sub-Accounts Transfer $10,000 from a money market Sub-Account to a growth No Sub-Account and then, before the end of that same Valuation Day, transfer the same $10,000 from the growth Sub-Account to an international Sub-Account
SECOND, YOU ARE ALLOWED TO SUBMIT A TOTAL OF 20 SUB-ACCOUNT TRANSFERS EACH CONTRACT YEAR (the "Transfer Rule") by U.S. Mail, Voice Response Unit, Internet or telephone. Once you have reached the maximum number of Sub-Account transfers, you may only submit any additional Sub-Account transfer requests and any trade cancellation requests in writing through U.S. Mail or overnight delivery 18 ------------------------------------------------------------------------------- service. In other words, Voice Response Unit, Internet or telephone transfer requests will not be honored. We may, but are not obligated to, notify you when you are in jeopardy of approaching these limits. For example, we will send you a letter after your 10th Sub-Account transfer to remind you about the Transfer Rule. After your 20th transfer request, our computer system will not allow you to do another Sub-Account transfer by telephone, Voice Response Unit or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service. We reserve the right to aggregate your Contracts (whether currently existing or those recently surrendered) for the purposes of enforcing these restrictions. The Transfer Rule does not apply to Sub-Account transfers that occur automatically as part of a Company-sponsored asset allocation or Dollar Cost Averaging program. Reallocations made based on a Fund merger or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law. We make no assurances that the Transfer Rule is or will be effective in detecting or preventing market timing. THIRD, POLICIES HAVE BEEN DESIGNED TO RESTRICT EXCESSIVE SUB-ACCOUNT TRANSFERS. You should not purchase this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don't purchase this Contract if you plan to engage in "market timing," which includes frequent transfer activity into and out of the same Fund, or frequent Sub-Account transfers in order to exploit any inefficiencies in the pricing of a Fund. Even if you do not engage in market timing, certain restrictions may be imposed. Generally, you are subject to Fund trading policies, if any. We are obligated to provide, at the Fund's request, tax identification numbers and other shareholder identifying information contained in our records to assist Funds in identifying any pattern or frequency of Sub-Account transfers that may violate their trading policy. In certain instances, we have agreed to serve as a Fund's agent to help monitor compliance with that Fund's trading policy. We are obligated to follow each Fund's instructions regarding enforcement of their trading policy. Penalties for violating these policies may include, among other things, temporarily or permanently limiting or banning you from making Sub-Account transfers into a Fund or other funds within that fund complex. We are not authorized to grant an exception to a Fund's trading policy. Please refer to each Fund's prospectus for more information. Transactions that cannot be processed because of Fund trading policies will be considered not in good order. In certain circumstances, Fund trading policies do not apply or may be limited. For instance: - Certain types of financial intermediaries may not be required to provide us with shareholder information. - "Excepted funds" such money market funds and any Fund that affirmatively permits short-term trading of its securities may opt not to adopt this type of policy. This type of policy may not apply to any financial intermediary that a Fund treats as a single investor. - A Fund can decide to exempt categories of contract holders whose contracts are subject to inconsistent trading restrictions or none at all. - Non-shareholder initiated purchases or redemptions may not always be monitored. These include Sub-Account transfers that are executed: (i) automatically pursuant to a company-sponsored contractual or systematic program such as transfers of assets as a result of "dollar cost averaging" programs, asset allocation programs, automatic rebalancing programs, annuity payouts, loans, or systematic withdrawal programs; (ii) as a result of the payment of a Death Benefit; (iii) as a step-up in Contract Value pursuant to a Contract Death Benefit or guaranteed minimum withdrawal benefit; (iv) as a result of any deduction of charges or fees under a Contract; or (v) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan salary reduction contributions, or planned premium payments. POSSIBILITY OF UNDETECTED ABUSIVE TRADING OR MARKET TIMING. We may not be able to detect or prevent all abusive trading or market timing activities. For instance, - Since we net all the purchases and redemptions for a particular Fund for this and many of our other products, transfers by any specific market timer could be inadvertently overlooked. - Certain forms of variable annuities and types of Funds may be attractive to market timers. We can not provide assurances that we will be capable of addressing possible abuses in a timely manner. - These policies apply only to individuals and entities that own this Contract or have the right to make transfers (regardless of whether requests are made by you or anyone else acting on your behalf). However, the Funds that make up the Sub-Accounts of this Contract are also available for use with many different variable life insurance policies, variable annuity products and funding agreements, and are offered directly to certain qualified retirement plans. Some of these products and plans may have less restrictive transfer rules or no transfer restrictions at all. 19 ------------------------------------------------------------------------------- - In some cases, we are unable to count the number of Sub-Account transfers requested by group annuity participants co-investing in the same Funds ("Participants") or enforce the Transfer Rule because we do not keep Participants' account records for a Contract. In those cases, the Participant account records and Participant Sub-Account transfer information are kept by such owners or its third party service provider. These owners and third party service providers may provide us with limited information or no information at all regarding Participant Sub-Account transfers. How ARE YOU AFFECTED BY FREQUENT SUB-ACCOUNT TRANSFERS? We are not responsible for losses or lost investment opportunities associated with the effectuation of these policies. Frequent Sub-Account transfers may result in the dilution of the value of the outstanding securities issued by a Fund as a result of increased transaction costs and lost investment opportunities typically associated with maintaining greater cash positions. This can adversely impact Fund performance and, as a result, the performance of your Contract. This may also lower the Death Benefit paid to your Beneficiary or lower Annuity Payouts for your Payee as well as reduce value of other optional benefits available under your Contract. Separate Account investors could be prevented from purchasing Fund shares if we reach an impasse on the execution of a Fund's trading instructions. In other words, a Fund complex could refuse to allow new purchases of shares by all our variable product investors if the Fund and we can not reach a mutually acceptable agreement on how to treat an investor who, in a Fund's opinion, has violated the Fund's trading policy. In some cases, we do not have the tax identification number or other identifying information requested by a Fund in our records. In those cases, we rely on the Contract Owner to provide the information. If the Contract Owner does not provide the information, we may be directed by the Fund to restrict the Contract Owner from further purchases of Fund shares. In those cases, all participants under a plan funded by the Contract will also be precluded from further purchases of Fund shares. FIXED ACCUMULATION FEATURE TRANSFERS Except as otherwise provided, during each Contract Year, you may make transfers out of the Fixed Accumulation Feature to Sub-Accounts, subject to the transfer restrictions discussed below. All transfer allocations must be in whole numbers (e.g., 1%). Each Contract Year you may transfer the greater of: - 30% of the Contract Value in the Fixed Accumulation Feature as of the last Contract Anniversary or Contract issue date or the largest sum of your prior transfers. When we calculate the 30%, we add Premium Payments made after that date but before the next Contract Anniversary. These restrictions also apply to systematic transfers except for certain programs specified by us. The 30% does not include Contract Value in any DCA Plus Program; or - An amount equal to your largest previous transfer from the Fixed Accumulation Feature in any one Contract Year. We apply these restrictions to all transfers from the Fixed Accumulation Feature, including all systematic transfers and Dollar Cost Averaging Programs, except for transfers under our DCA Plus Program. If your interest rate renews at a rate at least 1% lower than your prior interest rate, you may transfer any amount to 100% of the amount to be invested at the renewal rate. You must make this transfer request within 60 days of being notified of the renewal rate. We may defer transfers and Surrenders from the Fixed Accumulation Feature for up to 6 months from the date of your request. You must wait 6 months after your most recent transfer from the Fixed Accumulation Feature before moving Sub-Account Values back to the Fixed Accumulation Feature. If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. As a result of these limitations, it may take a significant amount of time (i.e., several years) to move Contract Values in the Fixed Accumulation Feature to Sub-Accounts and therefore this may not provide an effective short term defensive strategy. TELEPHONE AND INTERNET TRANSFERS Transfer instructions received by telephone before the end of any Valuation Day will be carried out at the end of that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgement we return to you. If the time and date indicated on the acknowledgement is before the end of any Valuation Day, the instructions will be carried out at the end of that Valuation Day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgement, you should contact us as soon as possible. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly reporting any inaccuracy or discrepancy to us and your Registered Representative. Any oral communication should be re-confirmed in writing. Telephone or Internet transfer requests may currently only be cancelled by calling us before the end of the Valuation Day you made the transfer request. 20 ------------------------------------------------------------------------------- We, our agents or our affiliates are NOT responsible for losses resulting from telephone or electronic requests that we believe are genuine. We will use reasonable procedures to confirm that instructions received by telephone or through our website are genuine, including a requirement that Contract Owners provide certain identification information, including a personal identification number. We record all telephone transfer instructions. We may suspend, modify, or terminate telephone or electronic transfer privileges at any time. POWER OF ATTORNEY You may authorize another person to conduct financial and other transactions on your behalf by submitting a completed power of attorney form that meets the power of attorney requirements of your resident state law. Once we have the completed form on file, we will accept transaction requests, including transfer instructions, subject to our transfer restrictions, from your designated third party until we receive new instructions in writing from you. B. CHARGES AND FEES MORTALITY AND EXPENSE RISK CHARGE We deduct a daily charge for assuming mortality and expense risks under the Contract. This charge is deducted from your Sub-Account Value. The mortality and expense risk charge is broken into charges for mortality risks and for an expense risk: - Mortality Risk - There are two types of mortality risks that we assume, those made while your Premium Payments are accumulating and those made once Annuity Payouts have begun. During the accumulation phase of your Contract, we are required to cover any difference between the Death Benefit paid and the Surrender Value. These differences may occur in periods of declining value or in periods where the CDSCs would have been applicable. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates. Once Annuity Payouts have begun, we may be required to make Annuity Payouts as long as the Annuitant is living, regardless of how long the Annuitant lives. The risk that we bear during this period is that the actual mortality rates, in aggregate, may be lower than the expected mortality rates. - Expense Risk - We also bear an expense risk that the CDSCs, if applicable, and the Annual Maintenance Fee collected before the Annuity Commencement Date may not be enough to cover the actual cost of selling, distributing and administering the Contract. Although variable Annuity Payouts will fluctuate with the performance of the Fund selected, your Annuity Payouts will not be affected by (a) the actual mortality experience of our Annuitants, or (b) our actual expenses if they are greater than the deductions stated in the Contract. Because we cannot be certain how long our Annuitants will live, we charge this percentage fee based on the mortality tables currently in use. The mortality and expense risk charge enables us to keep our commitments and to pay you as planned. If the mortality and expense risk charge under a Contract is insufficient to cover our actual costs, we will bear the loss. If the mortality and expense risk charge exceeds these costs, we keep the excess as profit. We may use these profits, as well as revenue sharing and Rule 12b-1 fees received from certain Funds, for any proper corporate purpose including, among other things, payment of sales expenses, including the fees paid to distributors. We expect to make a profit from the mortality and expense risk charge. The following table describes Mortality & Expense Risk charges: Access 1.50% Core 1.05% Plus 1.45% Outlook 1.45%
ANNUAL MAINTENANCE FEE The Annual Maintenance Fee is a flat $30 fee that is deducted from your Contract Value to reimburse us for expenses relating to the administrative maintenance of the Contract and your Account. The annual charge is deducted on a Contract Anniversary or when the Contract is fully Surrendered if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested. We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. In addition, we will waive one Annual Maintenance Fee for Contract Owners who own more than one Contract with a combined Contract Value between $50,000 and $100,000. If you have multiple Contracts with a combined Contract Value of $100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts. However, we may limit the number of waivers to a total of six Contracts. We also may waive the Annual Maintenance Fee under certain other conditions. We do not include 21 ------------------------------------------------------------------------------- Contracts from our Putnam Hartford line of variable annuity Contracts with the Contracts when we combine Contract Value for purposes of this waiver. ADMINISTRATIVE CHARGE We apply a daily administration charge of 0.20% against all Contract Values held in the Separate Account during both the accumulation and annuity phases of the Contract. There is not necessarily a relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributable to that Contract; expenses may be more or less than the charge. This charge compensates us for administrative expenses that exceed revenues from the Annual Maintenance Fee described above. PREMIUM TAXES We deduct premium taxes imposed on us by a state or other government agency. Some states collect these taxes when Premium Payments are made; others collect at Annuitization. Since we pay premium taxes when they are required by applicable law, we may deduct them from your Contract when we pay the taxes, upon Surrender, or on the Annuity Commencement Date. The premium tax rate varies by state or municipality and currently ranges from 0 - 3.5%. SALES CHARGES This charge is designed to recover the expense of distributing the Contracts that are surrendered before distribution expenses have been recouped from revenue generated by these Contracts. Core, Outlook and Plus Contracts are each subject to a CDSC schedule. Each Premium Payment has its own CDSC schedule. Only amounts invested for less than the requisite holding period are subject to a CDSC. When a CDSC is applicable, only Surrenders in excess of the Annual Withdrawal Amount (AWA) will be subject to a CDSC. A CDSC will not exceed your total Premium Payments. After the AWA deduction, surrenders will then be taken: 1st - from earnings, 2nd - from Premium Payments not subject to a CDSC, 3rd - from Premium Payments subject to a CDSC on a first-in-first-out basis, and, 4th - from Payment Enhancements (Plus Contracts only). THE FOLLOWING SURRENDERS ARE NOT SUBJECT TO A CDSC: - Annual Withdrawal Amount (AWA) - During the Contract Years when a CDSC applies, you may take partial Surrenders up to 10% of the total Premium Payments otherwise subject to a CDSC. The AWA is calculated by multiplying total Premium Payments by 10%. If you do not take 10% one year, you may not take more than 10% the next year. These amounts are different for Contracts issued to a Charitable Remainder Trust. - Benefit Payments or Lifetime Benefit Payments that may exceed the AWA under any optional benefit rider. - If you are a patient in a certified long-term care facility or other eligible facility - We will waive any CDSC for a partial or full Surrender if you, the joint Contract Owner or the Annuitant, are confined for at least 180 calendar days to a: X facility recognized as a general hospital by the proper authority of the state in which it is located or the Joint Commission on the Accreditation of Hospitals; X facility certified as a hospital or long-term care facility; or X nursing home licensed by the state in which it is located and offers the services of a registered nurse 24 hours a day. For this waiver to apply, you must: - have owned the Contract continuously since it was issued, - provide written proof of your eligibility satisfactory to us, and - request the Surrender within 90 calendar days after the last day that you are an eligible patient in a recognized facility or nursing home. This waiver is not available if you, the joint Contract Owner or the Annuitant is in a facility or nursing home when you purchase the Contract. We will not waive any CDSC applicable to any Premium Payments made while you are in an eligible facility or nursing home. This waiver may not be available in all states. - Upon death of the Annuitant or any Contract Owner(s) - No CDSC will be deducted if the Annuitant or any Contract Owner(s) dies. - Upon Annuitization - The CDSC is not deducted when you annuitize the Contract. However, we will charge a CDSC if the Contract is Surrendered during the CDSC period under an Annuity Payout Option which allows Surrenders. 22 ------------------------------------------------------------------------------- - For Required Minimum Distributions (RMDs) - This allows Annuitants who are age 70 1/2 or older, with a Contract held under an IRA, to Surrender an amount equal to the RMD for the Contract without a CDSC for one year's RMD for that Contract Year. All requests for RMDs must be in writing. - For substantially equal periodic payments - We will waive the CDSC if you take partial Surrenders under the Automatic Income Program where you receive a scheduled series of substantially equal periodic payments for the greater of five years or to age 59 1/2. - Upon cancellation during the Right to Cancel Period - No CDSC will be deducted if you cancel your Contract during the Right to Cancel Period. - Exchanges - As an accommodation, we may, in our sole discretion, credit the time that you held an annuity previously issued by us against otherwise applicable CDSCs. - Settlements - We may, in our sole discretion, waive or time-credit CDSCs in connection with the settlement of disputes or if required by regulatory authorities. CHARGES AGAINST THE FUNDS Annual Fund Operating Expenses - The Separate Account purchases shares of the Funds at net asset value. The net asset value of the Fund reflects investment advisory fees, distribution fees, operating expenses and administrative expenses already deducted from the assets of the Funds. These charges are described in the Funds' prospectuses and the Synopsis. REDUCED FEES AND CHARGES We may offer, in our discretion, reduced fees and charges including, but not limited to, CDSCs, the Mortality and Expense Risk Charge, the Annual Maintenance Fee, and charges for optional benefits, for certain Contracts (including employer sponsored savings plans) which may result in decreased costs and expenses. Reductions in these fees and charges will not be unfairly discriminatory against any Contract Owner. C. SURRENDERS WHAT KINDS OF SURRENDERS ARE AVAILABLE? BEFORE THE ANNUITY COMMENCEMENT DATE: Full Surrenders - When you Surrender your Contract before the Annuity Commencement Date, the Surrender Value of the Contract will be made in a lump sum payment. The Surrender Value is the Contract Value minus any applicable Premium Taxes, CDSCs, a pro-rated portion of optional benefit charges, if applicable and the Annual Maintenance Fee. The Surrender Value may be more or less than the amount of the Premium Payments made to a Contract. Partial Surrenders - You may request a partial Surrender of Contract Values at any time before the Annuity Commencement Date. We will deduct any applicable CDSC. You can ask us to deduct the CDSC from the amount you are Surrendering or from your remaining Contract Value. If we deduct the CDSC from your remaining Contract Value, that amount will also be subject to CDSC. This is our default option. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 7(b) (State Variations) for additional details. There are several restrictions on partial Surrenders before the Annuity Commencement Date: - The partial Surrender amount must be at least equal to $100, our current minimum for partial Surrenders, and - After a Surrender, your Contract Value must be equal to or greater than our then current minimum Contract Value that we establish according to our current policies and procedures. We may change the minimum Contract Value in our sole discretion, with notice to you. We will close your Contract and pay the full Surrender Value if the Contract Value is under the minimum after a Surrender. Under certain circumstances Hartford had permitted certain Contract Owners to reinstate their Contracts (and certain riders) when a Contract Owner had requested a Surrender (either full or Partial) and returned the forms in good order to Hartford. Effective October 4, 2013, we will no longer allow Contract Owners to reinstate their Contracts (or riders) when a Contract Owner requests a Surrender (either full or Partial). See section 6 and Appendices D - G for information regarding the impact of Surrenders to Death Benefits and optional benefits. AFTER THE ANNUITY COMMENCEMENT DATE: Full Surrenders - You may Surrender your Contract on or after the Annuity Commencement Date only if you selected the Payment for a Period Certain Annuity Payout Option. Under this option, we pay you the Commuted Value of your Contract minus any applicable CDSCs. The Commuted Value is determined on the day we receive your written request for Surrender. 23 ------------------------------------------------------------------------------- Partial Surrenders - Partial Surrenders are permitted after the Annuity Commencement Date if you select the Life Annuity With Payments for a Period Certain, Joint and Last Survivor Life Annuity With Payments for a Period Certain or the Payment for a Period Certain Annuity Payout Options. You may take partial Surrenders of amounts equal to the Commuted Value of the payments that we would have made during the "Period Certain" for the number of years you select under the Annuity Payout Option that we guarantee to make Annuity Payouts. To qualify for partial Surrenders under these Annuity Payout Options you must make the Surrender request during the Period Certain. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 7(b) (State Variations) for additional details. We will deduct any applicable CDSCs. If you elect to take the entire Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will not make any Annuity Payouts during the remaining Period Certain. If you elect to take only some of the Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will reduce the remaining Annuity Payouts during the remaining Period Certain. Annuity Payouts that are to be made after the Period Certain is over will not change. These options may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. Please check with your qualified tax adviser because there could be adverse tax consequences for partial Surrenders after the Annuity Commencement Date. HOW DO YOU REQUEST A SURRENDER? Requests for full Surrenders must be in writing. Requests for partial Surrenders can be made in writing or by telephone or on the Internet. We will send your money within seven days of receiving complete instructions. However, we may postpone payment of Surrenders whenever: (a) the New York Stock Exchange is closed, (b) trading on the New York Stock Exchange is restricted by the SEC, (c) the SEC permits and orders postponement or (d) the SEC determines that an emergency exists to restrict valuation. Written Requests - To request a full or partial Surrender, complete a Surrender Form or send us a letter, signed by you, stating: - the dollar amount that you want to receive, either before or after we withhold taxes and deduct for any applicable charges, - your tax withholding amount or percentage, if any, and - your mailing address. You may submit this form via facsimile. If there are joint Contract Owners, both must authorize all Surrenders. For a partial Surrender, specify the Sub-Accounts that you want your Surrender to come from; otherwise, the Surrender will be taken in proportion to the value in each Sub-Account. Telephone Requests - To request a partial Surrender by telephone, we must have received your completed Telephone Redemption Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept telephone instructions for partial Surrenders from either Contract Owner. Telephone authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on telephone Surrenders. Internet Requests - To request a partial Surrender by internet; we must have received your completed Internet Partial Withdrawal Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept internet instructions for partial Surrenders from either Owner. Internet authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on Internet Surrenders. We may record telephone calls and use other procedures to verify information and confirm that instructions are genuine. We will not be liable for losses or expenses arising from telephone instructions reasonably believed to be genuine. WE MAY MODIFY THE REQUIREMENTS FOR TELEPHONE REDEMPTIONS AT ANY TIME. Telephone and Internet Surrender instructions received before the end of a Valuation Day will be processed at the end of that Valuation Day. Otherwise, your request will be processed at the end of the next Valuation Day. Completing a Power of Attorney form for another person to act on your behalf may prevent you from making Surrenders via telephone and Internet. 24 ------------------------------------------------------------------------------- WHAT SHOULD BE CONSIDERED ABOUT TAXES? There are certain tax consequences associated with Surrenders. If you make a Surrender prior to age 59 1/2, there may be adverse tax consequences including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Surrendering before age 59 1/2 may also affect the continuing tax-qualified status of some Contracts. WE DO NOT MONITOR SURRENDER REQUESTS. CONSULT YOUR PERSONAL TAX ADVISER TO DETERMINE WHETHER A SURRENDER IS PERMISSIBLE, WITH OR WITHOUT FEDERAL INCOME TAX PENALTY. More than one Contract issued in the same calendar year - If you own more than one Contract issued by us or our affiliates in the same calendar year, then these Contracts may be treated as one Contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. D. ANNUITY PAYOUTS When you "annuitize" your Contract, you begin the process of converting Accumulation Units in what is known as the "payout phase." The payout phase starts with your Annuity Commencement Date and ends when we make the last payment required under your Contract. You should answer the following questions: - When do you want Annuity Payouts to begin? - Which Annuity Payout Option do you want to use? - How often do you want the Payee to receive Annuity Payouts? - Do you want Annuity Payouts to be fixed dollar amount or variable dollar amount? Please check with your Registered Representative to select the Annuity Payout Option that best meets your income needs. WHEN DO YOUR ANNUITY PAYOUTS BEGIN? Your Annuity Commencement Date cannot be earlier than: X 2nd Contract Anniversary - if choosing a fixed dollar amount Annuity Payout X Immediately - if choosing a variable dollar amount Annuity Payout or be later than: X Annuitant's 90th birthday (or if the Contract Owner is a Charitable Remainder Trust, the Annuitant's 100th birthday) X 10th Contract Year (subject to state variation) X The Annuity Commencement Date stated in an extension request (subject to your Financial Intermediary's rules for granting extension requests) received by us not less than 30 days prior to a scheduled Annuity Commencement Date Effective October 4, 2013 we will no longer allow Contract Owners to extend their Annuity Commencement Date even though we may have granted extensions in the past to you or other similarly situated investors. The Annuity Calculation Date is when the amount of your Annuity Payout is determined. This occurs within five Valuation Days before your selected Annuity Commencement Date. All Annuity Payouts, regardless of frequency, will occur on the same day of the month as the Annuity Commencement Date. After the initial payout, if an Annuity Payout date falls on a non-Valuation Day, the Annuity Payout is computed on the prior Valuation Day. If the Annuity Payout date does not occur in a given month due to a leap year or months with only 28 days (i.e. the 31st), the Annuity Payout will be computed on the last Valuation Day of the month. WHICH ANNUITY PAYOUT OPTION DO YOU WANT TO USE? Your Contract contains the Annuity Payout Options described below. We may at times offer other Annuity Payout Options. Once we begin to make Annuity Payouts, the Annuity Payout Option cannot be changed. - LIFE ANNUITY We make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would receive only one Annuity Payout if the Annuitant dies after the first payout, two Annuity Payouts if the Annuitant dies after the second payout, and so forth. 25 ------------------------------------------------------------------------------- - LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as the Annuitant is living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus the Annuitant's age. If the Annuitant dies before the guaranteed number of years have passed, then the Beneficiary may elect to continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. - LIFE ANNUITY WITH A CASH REFUND We will make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, if the Annuity Payouts already made are less than the Contract Value on the Annuity Commencement Date minus any Premium Tax, the remaining value will be paid to the Beneficiary. The remaining value is equal to the Contract Value minus any Premium Tax minus all Annuity Payouts already made. This option is only available for fixed dollar amount Annuity Payouts. - JOINT AND LAST SURVIVOR LIFE ANNUITY We will make Annuity Payouts as long as the Annuitant and Joint Annuitant are living. When one Annuitant dies, we continue to make Annuity Payouts until that second Annuitant dies. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable Annuity Payouts, these percentages represent Annuity Units; for fixed Annuity Payouts, they represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. - JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as either the Annuitant or Joint Annuitant are living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus your younger Annuitant's age. If the Annuitant and the Joint Annuitant both die before the guaranteed number of years have passed, then the Beneficiary may continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable dollar amount Annuity Payouts, these percentages represent Annuity Units. For fixed dollar amount Annuity Payouts, these percentages represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. PAYMENTS FOR A PERIOD CERTAIN We agree to make payments for a specified time. The minimum period that you can select is 10 years during the first two Contract Years and 5 years after the second Contract Anniversary. The maximum period that you can select is 100 years minus your Annuitant's age. If, at the death of the Annuitant, Annuity Payouts have been made for less than the time period selected, then the Beneficiary may elect to continue the remaining Annuity Payouts or receive the Commuted Value in one sum. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. YOU CANNOT SURRENDER YOUR CONTRACT ONCE ANNUITY PAYOUTS BEGIN, UNLESS YOU HAVE SELECTED LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, OR PAYMENTS FOR A PERIOD CERTAIN ANNUITY PAYOUT OPTION. A CDSC, IF APPLICABLE, MAY BE DEDUCTED. For qualified Contracts, if you elect an Annuity Payout Option with a Period Certain, the guaranteed number of years must be less than the life expectancy of the Annuitant at the time the Annuity Payouts begin. We compute life expectancy using the IRS mortality tables. 26 ------------------------------------------------------------------------------- AUTOMATIC ANNUITY PAYOUTS If you do not elect an Annuity Payout Option, monthly Annuity Payouts will automatically begin on the Annuity Commencement Date under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten-year period certain. Automatic Annuity Payouts will be fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Account in effect on the Annuity Commencement Date. Automatic variable Annuity Payouts will be based on an Assumed Investment Return equal to 5%. HOW OFTEN DO YOU WANT THE PAYEE TO RECEIVE ANNUITY PAYOUTS? In addition to selecting an Annuity Commencement Date and an Annuity Payout Option, you must also decide how often you want the Payee to receive Annuity Payouts. You may choose to receive Annuity Payouts: - monthly, - quarterly, - semi-annually, or - annually. Once you select a frequency, it cannot be changed. If you do not make a selection, the Payee will receive monthly Annuity Payouts. You must select a frequency that results in an Annuity Payout of at least $50. If the amount falls below $50, we have the right to change the frequency to bring the Annuity Payout up to at least $50. DO YOU WANT ANNUITY PAYOUTS TO BE FIXED DOLLAR AMOUNT OR VARIABLE DOLLAR AMOUNT? You may choose an Annuity Payout Option with fixed dollar amounts or variable dollar amounts, depending on your income needs. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. - FIXED DOLLAR AMOUNT ANNUITY PAYOUTS Once a fixed dollar amount Annuity Payout begins, you cannot change your selection to receive variable dollar amount Annuity Payouts. You will receive equal fixed dollar amount Annuity Payouts throughout the Annuity Payout period. Fixed dollar amount Annuity Payout amounts are determined by multiplying the Contract Value, minus any applicable Premium Taxes, by an annuity rate set by us. - VARIABLE DOLLAR AMOUNT ANNUITY PAYOUTS Once a variable dollar amount Annuity Payout begins, you cannot change your selection to receive a fixed dollar amount Annuity Payout. A variable dollar amount Annuity Payout is based on the investment performance of the Sub-Accounts. The variable dollar amount Annuity Payouts may fluctuate with the performance of the Funds. To begin making variable dollar amount Annuity Payouts, we convert the first Annuity Payout amount to a set number of Annuity Units and then price those units to determine the Annuity Payout amount. The number of Annuity Units that determines the Annuity Payout amount remains fixed unless you transfer units between Sub-Accounts. The dollar amount of the first variable Annuity Payout depends on: - the Annuity Payout Option chosen, - the Annuitant's attained age and gender (if applicable), - the applicable annuity purchase rates based on the 1983a Individual Annuity Mortality table adjusted for projections based on accepted actuarial principles, and - the Assumed Investment Return ("AIR"). The total amount of the first variable dollar amount Annuity Payout is determined by dividing the Contract Value minus any applicable Premium Taxes, by $1,000 and multiplying the result by the payment factor defined in the Contract for the selected Annuity Payout Option. The dollar amount of each subsequent variable dollar amount Annuity Payout is equal to the total of Annuity Units for each Sub-Account multiplied by the Annuity Unit Value of each Sub-Account. The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to the Accumulation Unit Value Net Investment Factor for the current Valuation Period multiplied by the Annuity Unit Factor, multiplied by the Annuity Unit Value for the preceding Valuation Period. The Annuity Unit Factor offsets the AIR used to calculate your first variable dollar amount Annuity Payout. The first Annuity Payout will be based upon the AIR. The remaining Annuity Payouts will fluctuate based on the performance of the Funds in relation to the AIR. The degree of the fluctuation will depend on the AIR you select. 27 ------------------------------------------------------------------------------- You can select one of the following AIRs offered, subject to state variations:
ANNUITY ANNUITY ANNUITY AIR UNIT FACTOR AIR UNIT FACTOR AIR UNIT FACTOR ------------------------------------------------------------------------ 3% 0.999919% 5% 0.999866% 6% 0.999840%
The greater the AIR, the greater the initial Annuity Payout. But a higher AIR may result in a smaller potential growth in future Annuity Payouts when the Sub-Accounts earn more than the AIR. On the other hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity Payouts have the potential to be greater when the Sub-Accounts earn more than the AIR. For example, if the Sub-Accounts earned exactly the same as the AIR, then the second monthly Annuity Payout is the same as the first. If the Sub-Accounts earned more than the AIR, then the second monthly Annuity Payout is higher than the first. If the Sub-Accounts earned less than the AIR, then the second monthly Annuity Payout is lower than the first. Level variable dollar amount Annuity Payouts would be produced if the investment returns remained constant and equal to the AIR. In fact, Annuity Payouts will vary up or down as the investment rate varies up or down from the AIR. The degree of variation depends on the AIR you select. After the Annuity Calculation Date, you may transfer dollar amounts of Annuity Units from one Sub-Account to another. On the day you make a transfer, the dollar amounts are equal for both Sub-Accounts and the number of Annuity Units will be different. We will transfer the dollar amount of your Annuity Units the day we receive your written request if received before the close of the New York Stock Exchange. Otherwise, the transfer will be made on the next Valuation Day. All Sub-Account transfers must comply with applicable transfer restriction policies. - COMBINATION ANNUITY PAYOUT You may choose to receive a combination of fixed dollar amount and variable dollar amount Annuity Payouts as long as they total 100% of your Annuity Payout. For example, you may choose to use 40% fixed dollar amount and 60% variable dollar amount to meet your income needs. Combination Annuity Payouts are not available during the first two Contract Years. E. STANDARD DEATH BENEFITS WHAT IS THE DEATH BENEFIT AND HOW IS IT CALCULATED? The Death Benefit is the amount we will pay if the Owner, joint Owner, or the Annuitant dies before we begin to make Annuity Payouts. This Death Benefit is the higher of Contract Value (including any Payment Enhancements, if applicable) or total Premium Payments adjusted for partial Surrenders. We calculate the Death Benefit when, and as of the date that, we receive a certified death certificate or other legal document acceptable to us. The standard Death Benefit is issued at no additional cost. The standard Death Benefit is replaced in certain optional benefits. Terms and titles used in riders to your Contract may differ from those used in this prospectus. The calculated Death Benefit will remain invested according to the Owner's last instructions until we receive complete written settlement instructions from the Beneficiary. This means the Death Benefit amount will fluctuate with the performance of the Account. When there is more than one Beneficiary, we will calculate the Accumulation Units for each Sub-Account and the dollar amount for the Fixed Accumulation Feature for each Beneficiary's portion of the proceeds. ADJUSTMENTS FOR SURRENDERS We calculate the adjustment to your aggregate Premium Payments for any Surrenders by reducing your aggregate Premium Payments on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. For any partial Surrender that causes cumulative partial Surrenders during the Contract Year to exceed 10% of Premium Payments, the adjustment is the dollar amount of the partial Surrender that does not exceed 10% of Premium Payments, and the adjustment for the remaining portion of the partial Surrender is a factor applied to the portion of Premium Payments that exceed 10% of Premium Payments, as follows: 1 - (A/(B-C)) where: A = partial Surrenders during the Contract Year in excess of 10% of Premium Payments. B = Contract Value immediately prior to the partial Surrender. C = 10% of Premium Payments less any partial Surrenders during the Contract Year. If C results in a negative number, C becomes zero. 28 ------------------------------------------------------------------------------- For partial Surrenders during each Contract Year that are entirely in excess of 10% of Premium Payments, the adjustment is a factor applied to adjusted Premium Payments immediately before the Surrender as follows: 1 - (A/B) where: A = partial Surrenders during the Contract Year in excess of 10% of Premium Payments. B = Contract Value immediately prior to the partial Surrender. A partial Surrender that exceeds 10% will cause a proportionate reduction in your Death Benefit. See Examples 1 and 2 under Standard Death Benefit in Appendix A. ADDITIONAL INFORMATION ABOUT DEATH BENEFITS We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed: a. the aggregate Premium Payments, modified by adjustments for partial Surrenders under applicable contracts and riders; or b. the aggregate Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. HOW IS THE DEATH BENEFIT PAID? The Death Benefit may be taken in one lump sum or under any of the Annuity Payout Options then being offered by us, unless the Owner has designated the manner in which the Beneficiary will receive the Death Benefit. We will calculate the Death Benefit as of the date we receive a certified death certificate or other legal documents acceptable by us. The Death Benefit amount remains invested and is subject to market fluctuation until complete settlement instructions are received from each Beneficiary. On the date we receive complete instructions from the Beneficiary, we will compute the Death Benefit amount to be paid out or applied to a selected Annuity Payout Option. When there is more than one Beneficiary, we will calculate the Death Benefit amount for each Beneficiary's portion of the proceeds and then pay it out or apply it to a selected Annuity Payout Option according to each Beneficiary's instructions. If we receive the complete instructions on a non-Valuation Day, computations will take place on the next Valuation Day. If the Death Benefit payment is $5,000 or more, the Beneficiary may elect to have their Death Benefit paid through our "Safe Haven Program." Under this program, the proceeds remain in our General Account and the Beneficiary will receive a draft book. The Beneficiary can write one draft for total payment of the Death Benefit, or keep the money in the General Account and write drafts as needed. We will credit interest at a rate determined periodically in our sole discretion. For federal income tax purposes, the Beneficiary will be deemed to have received the lump sum payment on transfer of the Death Benefit amount to the General Account. The interest will be taxable to the Beneficiary in the tax year that it is credited. We may not offer the Safe Haven Program in all states and we reserve the right to discontinue offering it at any time. Although there are no direct charges for this program, we earn investment income from the proceeds. The investment income we earn is likely more than the amount of interest we credit; therefore, we make a profit from the difference. The Beneficiary may elect under the Annuity Proceeds Settlement Option "Death Benefit Remaining with the Company" to leave proceeds from the Death Benefit invested with us for up to five years from the date of death if death occurred before the Annuity Commencement Date. Once we receive a certified death certificate or other legal documents acceptable to us, the Beneficiary can: (a) make Sub-Account transfers (subject to applicable restrictions) and (b) take Surrenders without paying CDSCs, if any. We reserve the right to inform the IRS in the event that we believe that any Beneficiary has intentionally delayed delivering proper proof of death in order to circumvent applicable Code proceeds payment duties. We shall endeavor to fully discharge the last instructions from the Owner wherever possible or practical. The Beneficiary of a non-qualified Contract or IRA (prior to the required distribution date) may also elect the Single Life Expectancy Only option. This option allows the Beneficiary to take the Death Benefit in a series of payments spread over a period equal to the Beneficiary's remaining life expectancy. Distributions are calculated based on IRS life expectancy tables. This option is subject to different limitations and conditions depending on whether the Contract is non-qualified or an IRA. If the Owner dies before the Annuity Commencement Date, the Death Benefit must be distributed within five years after death or be distributed under a distribution option or Annuity Payout Option that satisfies the Alternatives to the Required Distributions described below. If the Owner dies on or after the Annuity Commencement Date under an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value, any remaining value must be distributed at least as rapidly as under the payment method being used as of the Owner's death. 29 ------------------------------------------------------------------------------- If the Owner is not an individual (e.g. a trust), then the original Annuitant will be treated as the Owner in the situations described above and any change in the original Annuitant will be treated as the death of the Owner. WHAT SHOULD THE BENEFICIARY CONSIDER? Alternatives to the Required Distributions - The selection of an Annuity Payout Option and the timing of the selection will have an impact on the tax treatment of the Death Benefit. To receive favorable tax treatment, the Annuity Payout Option selected: (a) cannot extend beyond the Beneficiary's life or life expectancy, and (b) must begin within one year of the date of death. If these conditions are not met, the Death Benefit will be treated as a lump sum payment for tax purposes. This sum will be taxable in the year in which it is considered received. Spousal Contract Continuation - If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the Contract may continue with the Spouse as Owner through a Spousal Contract continuation election, unless the Spouse elects to receive the Death Benefit as a lump sum payment or as an Annuity Payment Option. If the Contract continues with the Spouse as Owner, we will adjust the Contract Value to the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the Death Benefit as a lump sum payment. Spousal Contract continuation will only apply one time for each Contract. If you do not name another Beneficiary at the time of continuation, the Beneficiary will default to your estate. WHO WILL RECEIVE THE DEATH BENEFIT? The distribution of the Death Benefit applies only when death is before the Annuity Commencement Date. If death occurs on or after the Annuity Commencement Date, there may be no payout at death unless the Owner has elected an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value. IF DEATH OCCURS BEFORE THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving joint The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Designated Beneficiary receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Contract Owner's estate Contract Owner and the deceased receives the Death Benefit. Beneficiary predeceases the Contract Owner Annuitant The Contract Owner is living There is no named Contingent The Contract Owner becomes the Annuitant Contingent Annuitant and the Contract continues. The Contract Owner may waive this presumption and receive the Death Benefit. Annuitant The Contract Owner is living The Contingent Annuitant is Contingent Annuitant becomes living the Annuitant, and the Contract continues.
IF DEATH OCCURS ON OR AFTER THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . THEN THE . . . Contract Owner The Annuitant is living Designated Beneficiary becomes the Contract Owner. Annuitant The Contract Owner is living Contract Owner receives the payout at death, if any. Annuitant The Annuitant is also the Owner Designated Beneficiary receives the payout at death, if any.
THESE ARE THE MOST COMMON SCENARIOS. SOME OF THE ANNUITY PAYOUT OPTIONS MAY NOT RESULT IN A PAYOUT AT DEATH. 30 ------------------------------------------------------------------------------- 6. OPTIONAL DEATH BENEFITS A. MAV PLUS OBJECTIVE Refund net Premium Payments as well as some percentage of any Contract Value gains. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? The Death Benefit will be the greater of the standard Death Benefit and MAV Plus Death Benefit. If you also elect any optional benefit rider, the Death Benefit will be the greater of such optional rider and this rider. See Examples 1 and 2 under MAV Plus in Appendix A. The MAV Plus Death Benefit is the greatest of A, B, C or D, WHERE: A = Contract Value (including any Payment Enhancements, if applicable) on the date we receive due proof of death. B = Total Premium Payments adjusted for any partial Surrenders (see clause D below for a description of this adjustment). C = Maximum Anniversary Value - The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased's 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: (a) Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and (b) Anniversary Value is adjusted for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. We calculate the adjustment to your Maximum Anniversary Value for any Surrenders by reducing your Maximum Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Maximum Anniversary Value proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. Please refer to the examples in Appendix A for illustrations of this adjustment. For any partial Surrender that causes cumulative partial Surrenders during the Contract Year to exceed 10% of Premium Payments, the adjustment is first made on a dollar-for-dollar basis up to 10% of Premium Payments and then the adjustment with respect to the amounts over 10% of Premium Payments is based on the following formulas: 1 - (A/(B-C)) where: A = partial Surrenders during the Contract Year in excess of 10% of Premium Payments. B = Contract Value immediately prior to the partial Surrender. C = 10% of Premium Payments less any partial Surrenders during the Contract Year. If C results in a negative number, C becomes zero. For partial Surrenders during each Contract Year that are entirely in excess of 10% of Premium Payments, the adjustment is a factor applied to adjusted Premium Payments immediately before the Surrender as follows: 1 - (A/B) where: A = partial Surrenders during the Contract Year in excess of 10% of Premium Payments. B = Contract Value immediately prior to the partial Surrender. Please refer to the examples in Appendix A for illustrations of this adjustment. D = Earnings Protection Benefit - The Earnings Protection Benefit depends on the age of you and/or your Annuitant on the date this rider is added to your Contract. - If each is aged 69 or younger, the Death Benefit is the Contract Value on the date we receive due proof of death plus 40% of the lesser of Contract gain on that date and the cap. - If you and/or your Annuitant are age 70 or older on the date this rider is added to your Contract, the benefit is the Contract Value on the date we receive due proof of death plus 25% of the lesser of Contract gain on that date and the cap. We determine Contract gain by subtracting your Contract Value on the date you added this rider from the Contract Value on the date we receive due proof of death. We then deduct any Premium Payments and add adjustments for any partial Surrender made during that time. We make an adjustment for partial Surrenders if the amount of Surrender is greater than the Contract gain immediately prior to the Surrender. The adjustment is the difference between the two, but not less than zero. The Contract gain that is used to determine your Death Benefit has a limit or cap. The cap is 200% of the following: - the Contract Value on the date this rider was added to your Contract; plus
31 ------------------------------------------------------------------------------- - Premium Payments made after this rider was added to your Contract, excluding any Premium Payments made within 12 months of the date we receive due proof of death; minus - any adjustments for partial Surrenders. If you elect MAV Plus, the Death Benefit will be the greater of the standard Death Benefit and the MAV Plus Death Benefit.
WHEN CAN YOU BUY THIS RIDER? The MAV Plus rider is closed to new investors. You may elect this rider only at the time of issue and once you do so, your choice is irrevocable. You may not choose this optional Death Benefit if the Owner(s) and/or Annuitant are age 76 or older on the Contract issue date. In states where the MAV Plus Death Benefit is not available, we offer the "Maximum Anniversary Value (MAV) Death Benefit" for the same additional fee. The MAV Death Benefit is the same as the MAV Plus Death Benefit but excludes the Earnings Protection Benefit. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? No. HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Contract Value and is deducted daily. The charge for this rider continues to be deducted until we begin to make Annuity Payouts. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? No. This rider is not affected by the Benefit Amount or Payment Base. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Surrenders will reduce the MAV Plus Death Benefit and will be subject to CDSCs, if any. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? We reserve the right to approve all ownership changes, including any assignment of your Contract to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes. CAN YOUR SPOUSE CONTINUE YOUR CONTRACT RIGHTS? Yes. If your Spouse continues the Contract as Owner, we will use the date the Contract is continued with your Spouse as Owner as the effective date this rider was added to the Contract. This means we will use the date the Contract is continued with your Spouse as Owner as the effective date for calculating this Death Benefit going forward. The percentage used for this Death Benefit will be determined by the oldest age of any remaining joint Owner or Annuitant at the time the Contract is continued. Spousal Contract continuation can apply once during the term of this Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? This rider will be terminated and the fee will no longer be assessed. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No. 32 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? Yes. We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed: a. the aggregate Premium Payments, modified by adjustments for partial Surrenders under applicable contracts and riders; or b. the aggregate Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - This rider is not available in all states or is named differently in those states. - If your Contract has no gain, your Beneficiary will receive no additional benefit. - A Death Benefit is paid to Beneficiaries upon the death of the Annuitant or any Owner, whichever occurs first. - This rider may be used to supplement Death Benefits in other optional riders. In certain instances, however, this additional Death Benefit coverage could be superfluous. - Annuitizing your Contract will cause this rider to terminate. 7. MISCELLANEOUS A. GLOSSARY Except as provided elsewhere in this prospectus, the following capitalized terms shall have the meaning ascribed below: ACCOUNT: Any of the Sub-Accounts or the Fixed Accumulation Feature. ACCUMULATION UNITS: If you allocate your Premium Payment to any of the Sub-Accounts, we will convert those Payments into Accumulation Units in the selected Sub-Accounts. Accumulation Units are valued at the end of each Valuation Day and are used to calculate the value of your Contract prior to Annuitization. ACCUMULATION UNIT VALUE: The daily price of Accumulation Units on any Valuation Day. ADMINISTRATIVE OFFICE: Our overnight mailing address is: HARTFORD LIFE INSURANCE COMPANY/HARTFORD LIFE AND ANNUITY INSURANCE COMPANY, 745 WEST NEW CIRCLE ROAD BUILDING 200, 1ST FLOOR, LEXINGTON, KY 40511. OUR STANDARD MAILING ADDRESS WILL BE: HARTFORD LIFE INSURANCE COMPANY/HARTFORD LIFE AND ANNUITY INSURANCE COMPANY, PO BOX 14293, LEXINGTON, KY 40512-4293 ANNIVERSARY VALUE: The value equal to the Contract Value as of a Contract Anniversary, as adjusted for subsequent Premium Payments and partial Surrenders. ANNUAL MAINTENANCE FEE: An annual charge deducted on a Contract Anniversary or upon full Surrender. The charge is deducted proportionately from each Sub-Account in which you are invested. ANNUAL WITHDRAWAL AMOUNT: This is the amount you can Surrender per Contract Year without paying a CDSC. This amount is non-cumulative, meaning that it cannot be carried over from one year to the next. ANNUITANT: The person on whose life the Contract is issued. Except as otherwise provided, the Annuitant may not be changed after your Contract is issued. ANNUITY CALCULATION DATE: The date we calculate the first Annuity Payout. ANNUITY COMMENCEMENT DATE: The later of the 10th Contract Anniversary or the date the Annuitant reaches age 90, unless we, in our sole discretion, agree to postpone to another date following our receipt of an extension request. ANNUITY PAYOUT: The money we pay out after the Annuity Commencement Date for the duration and frequency you select. ANNUITY PAYOUT OPTION: Any of the options available for payout after the Annuity Commencement Date or death of the Contract Owner or Annuitant. ANNUITY UNIT: The unit of measure we use to calculate the value of your Annuity Payouts under a variable dollar amount Annuity Payout Option. 33 ------------------------------------------------------------------------------- ANNUITY UNIT VALUE: The daily price of Annuity Units on any Valuation Day. BENEFICIARY: The person(s) entitled to receive benefits pursuant to the terms of the Contract upon the death of any Contract Owner and Annuitant as the case may be. BENEFIT AMOUNT: The basis used to determine the maximum payout guaranteed under The Hartford's Principal First. BENEFIT PAYMENT: The maximum guaranteed amount that may be withdrawn each Contract Year under The Hartford's Principal First. A Benefit Payment constitutes a partial Surrender. CHARITABLE REMAINDER TRUST: An irrevocable trust, where an individual donor makes a gift to the trust, and in return receives an income tax deduction. In addition, the individual donor has the right to receive a percentage of the trust earnings for a specified period of time. CODE: The Internal Revenue Code of 1986, as amended. COMMUTED VALUE: The present value of any remaining guaranteed Annuity Payouts. This amount is calculated using the Assumed Investment Return for variable dollar amount Annuity Payouts and a rate of return determined by us for fixed dollar amount Annuity Payouts. CONTINGENT ANNUITANT: The person you may designate to become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant before the original Annuitant's death. CONTINGENT DEFERRED SALES CHARGE: The deferred sales charge, if applicable, that may apply when you make a full or partial Surrender. CONTRACT: The individual Annuity Contract and any endorsements or riders. Group participants and some individuals may receive a certificate rather than a Contract. CONTRACT ANNIVERSARY: The anniversary of the date we issued your Contract. If the Contract Anniversary falls on a Non-Valuation Day, then the Contract Anniversary will be the next Valuation Day. CONTRACT OWNER, OWNER OR YOU: The owner or holder of the Contract described in this prospectus including any joint Owner(s). We do not capitalize "you" in the prospectus. CONTRACT VALUE: The total value of the Accounts on any Valuation Day. CONTRACT YEAR: Any 12 month period between Contract Anniversaries, beginning with the date the Contract was issued. COVERED LIFE: The governing life or lives used for determining the Lifetime Withdrawal Feature under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. DEATH BENEFIT: The amount payable if the Contract Owner, joint Contract Owner or the Annuitant dies before the Annuity Commencement Date. DOLLAR COST AVERAGING: A program that allows you to systematically make transfers between Accounts available in your Contract. ELIGIBLE WITHDRAWAL YEAR: As used in The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II, any Contract Year following the Relevant Covered Life's 60th birthday. FIXED ACCUMULATION FEATURE: Part of our General Account, where you may allocate all or a portion of your Contract Value. In your Contract, the Fixed Accumulation Feature may be called the Fixed Account. Not all forms of Contracts we offer contain a Fixed Accumulation Feature. FUND: A registered investment company or a series thereof in which assets of a Sub-Account may be invested. We sometimes call the Funds you select a "Sub-Account". GENERAL ACCOUNT: The General Account includes our company assets, including any money you may have invested in the Fixed Accumulation Feature, if available. JOINT ANNUITANT: The person on whose life Annuity Payouts are based if the Annuitant dies after Annuitization. You may name a Joint Annuitant only if your Annuity Payout Option provides for a survivor. The Joint Annuitant may not be changed. 34 ------------------------------------------------------------------------------- LIFETIME BENEFIT PAYMENT: The maximum guaranteed amount that can be withdrawn each year pursuant to The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. A Lifetime Benefit Payment constitutes a partial Surrender. Withdrawals taken prior to an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios) are excluded from this definition. For the purposes of The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder and The Hartford's Lifetime Income Builder Selects a Lifetime Benefit Payment is the greater of (a) your Withdrawal Percent multiplied by your Payment Base (sometimes referred to as "Guaranteed Withdrawal") or (b) your Withdrawal Percent multiplied by your Contract Value as of the relevant measuring point (sometimes referred to as "Withdrawal Available"). LIFETIME INCOME ELIGIBILITY DATE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the date the relevant Covered Life attains age 59 1/2, at which point Lifetime Benefit Payments can begin. LIFETIME WITHDRAWAL FEATURE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, a series of Lifetime Benefit Payments in each Contract Year following the Lifetime Income Eligibility Date. MAXIMUM ANNIVERSARY VALUE: This is the highest Anniversary Value, adjusted for subsequent Premium Payments and partial Withdrawals, prior to the deceased's 81st birthday or the date of death, if earlier. MAXIMUM CONTRACT VALUE: The greatest of: (i) the Contract Value on the rider issue date, plus Premium Payments received after such date or (ii) the Contract Value on each subsequent Contract Anniversary, excluding the current Contract Anniversary, plus Premium Payments received after such Contract Anniversary date. MINIMUM CONTRACT VALUE: Subject to state variations, the Minimum Contract Value we establish from time to time. NET INVESTMENT FACTOR: This is used to measure the investment performance of a Sub-Account from one Valuation Day to the next, and is also used to calculate your Annuity Payout amount. 1933 ACT: The Securities Act of 1933, as amended. 1934 ACT: The Securities Exchange Act of 1934, as amended. 1940 ACT: The Investment Company Act of 1940, as amended. NON-VALUATION DAY: Any day the New York Stock Exchange is not open for trading. PAYEE: The person or party you designate to receive Annuity Payouts. PAYMENT BASE: The amount used to determine the Lifetime Benefit Payments for The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. The Payment Base may be subject to automatic annual Payment Base increases when The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios has been elected. In The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, Payment Base includes Payment Enhancements (Plus Contracts only) but excludes any Employee Gross-Up. Your initial Payment Base equals your initial Premium Payment except in regard to a company-sponsored exchange program. For Plus contracts, your initial Payment Base includes any Payment Enhancement, if applicable; provided, however, Payment Enhancements are not taken into consideration as such for the purposes of The Hartford's Lifetime Income Foundation or The Hartford's Lifetime Income Builder II. PAYMENT ENHANCEMENT: An amount we credit to your Contract Value at the time a Premium Payment is made for "Plus" Contracts only. The amount of a Payment Enhancement is based on the cumulative Premium Payments you make to your Contract. PREMIUM PAYMENT: Money sent to us to be invested in your Contract (not taking into consideration any applicable front-end sales charges or Payment Enhancements, etc.). PREMIUM TAX: A tax charged by a state or municipality on Premium Payments. RELEVANT COVERED LIFE: When the Single Life option is chosen, the Relevant Covered Life will be based on the attained age of the oldest Contract Owner(s) if the Contract Owner is a natural person or the Annuitant(s) if the Contract Owner is not a natural person. When the Joint/Spousal Option is chosen, however, the Relevant Covered Life will be based on the attained age of the youngest Contract Owner and his or her Spouse if the Contract Owner is a natural person or the Annuitant if the Contract Owner is not a natural person. As used herein, "attained age" means the chronological age of the Relevant Covered Life as of the applicable measuring point. 35 ------------------------------------------------------------------------------- REQUIRED MINIMUM DISTRIBUTION: A federal requirement that individuals age 70 1/2 and older must take a distribution from their tax-qualified retirement account by December 31, each year. For employer sponsored qualified Contracts, the individual must begin taking distributions at the age of 70 1/2 or upon retirement, whichever comes later. SPOUSE: A person related to a Contract Owner by marriage pursuant to the Code. This definition does not currently take into consideration domestic partners pursuant to state civil union laws. SUB-ACCOUNT: A division of the Separate Account containing shares of a Fund. There is a Sub-Account for each Fund. We sometimes call the Funds you select your "Sub-Account". SUB-ACCOUNT VALUE: The value on or before the Annuity Calculation Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for each Sub-Account. SURRENDER: A complete or partial withdrawal from your Contract. SURRENDER VALUE: The amount we pay you if you terminate your Contract before the Annuity Commencement Date. The Surrender Value is equal to the Contract Value minus any applicable charges (subject to rounding). THRESHOLD: For the purposes of The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the amount used to determine the change in the Payment Base following a partial Surrender in any Contract Year that is not an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or any Contract Year that is prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios). For the purposes of these optional riders, this percentage used to determine your Threshold amount is 5% (Single Life Election) or 4 1/2% (Joint/Spousal Election) of the Payment Base. VALUATION DAY: Every day the New York Stock Exchange is open for trading. Values of the Separate Account are determined as of the close of the New York Stock Exchange. The Exchange generally closes at 4:00 p.m. Eastern Time but may close earlier on certain days and as conditions warrant. VALUATION PERIOD: The time span between the close of trading on the New York Stock Exchange from one Valuation Day to the next. WE, US OR OUR: Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company, as the case may be. WITHDRAWAL PERCENT: The multiplier used in calculating Lifetime Benefit Payments under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. YOU: The Owner including any joint Owner(s). We do not capitalize "you" or "your" in this prospectus. B. STATE VARIATIONS The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of Contracts we issue. References to certain state's variations do not imply that we actually offer Contracts in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. ALABAMA - The Fixed Accumulation Feature is not available. The DCA Plus Fixed Accumulation Feature is available. CALIFORNIA - If you are 60 years old or older you must either elect the Senior Protection Program, or elect to immediately allocate the initial Premium Payments to the other investment options. Under the Senior Protection Program, we will allocate your initial Premium Payment to a money market Fund for the first 35 days your initial Premium Payment is invested. After the 35th day we will automatically allocate your Contract Value according to your most current investment instructions. If you elect the Senior Protection Program you will not be able to participate in any InvestEase (if otherwise available) or Dollar Cost Averaging Program until after the Program has terminated. The Dollar Cost Averaging Plus, the Static Asset Allocation Models and certain Automatic Income Programs are not available if you elect the Senior Protection Program. Under the Senior Protection Program any subsequent Premium Payment received during the 35 days after the initial Premium Payment is invested will also be invested in a money market Fund unless you direct otherwise. You may voluntarily terminate your participation in the Senior Protection Program by contacting us in writing or by telephone. You will automatically terminate your participation in the Senior Protection Program if you allocate a subsequent Premium Payment to any other investment option or transfer Contract Value from a money market Fund to another investment option. When you terminate your participation in the Senior Protection Program you may reallocate your Contract Value in the Program to other investment options; or we will automatically reallocate your Contract Value in the Program according to your original instructions 35 days after your initial Premium Payment was invested. 36 ------------------------------------------------------------------------------- CONNECTICUT - The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, contract aggregation provisions do not apply. For Plus Contracts - The CDSC is 8%, 8%, 8%, 7%, 6%, 5%, 4%, 3%, 0% for years 1-9. A state recognized civil union partner who is the designated beneficiary may exercise contract continuation privileges if and when the Code is amended to recognize such "spouses" as meeting federal tax distribution requirements (under current tax law, a "spouse" is limited to married people of the opposite sex). FLORIDA - The limit on Death Benefits imposed when aggregate Premium Payments total $5 million or more does not apply. The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, contract aggregation provisions do not apply. GEORGIA - The Hartford's Lifetime Income Builder Selects is referred to as the Guaranteed Withdrawal and Death Benefit Rider (Limited Automatic Increase Feature) in your Contract. The Hartford's Lifetime Income Builder Portfolios is referred to as Guaranteed Withdrawal and Death Benefit Rider (Unlimited Automatic Increase Feature). ILLINOIS - The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, contract aggregation provisions do not apply. The rider charge for The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, are only deducted from the Sub-Accounts. The Fixed Accumulation Feature is not available if you elect The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios. MASSACHUSETTS - We will accept subsequent Premium Payments only until the Annuitant's 63rd birthday or the third Contract Anniversary, whichever is later (Core Contracts); or until the Annuitant's 66th birthday or the sixth Contract Anniversary, whichever is later (Outlook Contracts). The Nursing Home Waiver is not available. MINNESOTA - MAV Plus is not available. The Maximum Anniversary Value (MAV) Death Benefit is offered instead. NEW HAMPSHIRE - A state recognized civil union partner who is the designated beneficiary may exercise contract continuation privileges if and when the Code is amended to recognize such "spouses" as meeting federal tax distribution requirements (under current tax law, a "spouse" is limited to married people of the opposite sex). NEW JERSEY - The Fixed Accumulation Feature is not available. The only AIRs available are 3% and 5%. The investment restrictions and the contract aggregation provisions of The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are not applicable. The Nursing Home Waiver is not available. A state recognized civil union partner who is the designated beneficiary may exercise contract continuation privileges if and when the Code is amended to recognize such "spouses" as meeting federal tax distribution requirements (under current tax law, a "spouse" is limited to married people of the opposite sex). NEW YORK - A Contract issued by Hartford Life and Annuity Insurance Company is not available in New York. The rider charge for The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are only deducted from the Sub-Accounts. The Fixed Accumulation Feature is not available if you elect The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios. The Minimum Contract Value is $1,000 after any Surrender. The minimum monthly Annuity Payout is $20. MAV Plus is not available. The Maximum Anniversary Value (MAV) Death Benefit is offered instead. The only AIRs available are 3% and 5%. The Nursing Home Waiver is not available. OHIO - The Fixed Accumulation Feature is not available. OKLAHOMA - The only AIRs available are 3% and 5%. OREGON - We will accept subsequent Premium Payments during the first three Contract Years (Core and Plus Contracts) or six years (Outlook Contracts). Owners may only sign up for DCA Plus Programs that are 6 months or longer (Core, Outlook, Plus Contracts). You may not choose a fixed dollar amount Annuity Payout. The Life Annuity with a Cash Refund Annuity Payout Option is not available. The only AIRs available are 3% and 5%. PENNSYLVANIA - The Nursing Home Waiver minimum confinement period is changed from 180 days to 90 days. You may not choose a fixed dollar amount Annuity Payout. The Life Annuity with a Cash Refund Annuity Payout Option is not available. For Plus Contracts - The CDSC is 8%, 8%, 8%, 7%, 6%, 5%, 4%, 3%, 0% for years 1-9. WASHINGTON - MAV Plus is not available. Maximum Anniversary Value (MAV) Death Benefit is offered instead. In any year when no Premium Payment is paid into the Fixed Accumulation Feature, any pro-rata portion of the fee taken from the Fixed Accumulation Feature will be limited to interest earned in excess of the 3% for that year (Core, Outlook and Plus Contracts). The rider charge for The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation is only deducted from the Sub-Accounts. The Fixed Accumulation is not available if you elect The Hartford's Lifetime Income Builder Selects, The Hartford's Lifetime Income Builder Portfolios, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation (Core, Outlook, and Plus Contracts). 37 ------------------------------------------------------------------------------- C. MORE INFORMATION OWNERSHIP CHANGES - We reserve the right to approve all ownership changes, including any assignment of your Contract (or any benefits) to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the applicable Death Benefit. We will adjust the Contract Value in these circumstances to equal the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the applicable Death Benefit as a lump sum payment. This privilege will only apply once for each Contract. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. ASSIGNMENT - A non-qualified Contract may be assigned. We must be properly notified in writing of an assignment. Any Annuity Payouts or Surrenders requested or scheduled before we record an assignment will be made according to the instructions we have on record. We are not responsible for determining the validity of an assignment. Assigning a non-qualified Contract may require the payment of income taxes and certain penalty taxes. A qualified Contract may not be transferred or otherwise assigned (whether directly or used as collateral for a loan), unless allowed by applicable law and approved by us in writing. We can withhold our consent for any reason. We are not obligated to process any request for approval within any particular time frame. Please consult a qualified tax adviser before assigning your Contract. SPECULATIVE INVESTING - Do not purchase this Contract if you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme. By purchasing this Contract you represent and warrant that you are not using this Contract, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme. CONTRACT MODIFICATION - We may modify the Contract, but no modification will affect the amount or term of any Contract unless a modification is required to conform the Contract to applicable federal or state law. No modification will affect the method by which Contract Values are determined. Any modifications to the Contract will be filed with each state in which the Contract is for sale. Contract changes will be communicated to Contract Owners through regular mail as an endorsement to their Contract. MEDICAID BENEFITS - Medicaid is a program that covers most medical costs, including nursing home and home care for the elderly and certain persons with disabilities. To qualify, individuals must meet both income and resource tests. Subject to state law, income tests measure whether earned and unearned income such as benefit payments exceeds predetermined monthly caps. Resource tests look to the value of countable assets such as this Contract. Medicaid also allows the costs of benefits such as nursing home care, home and community based services, and related hospital prescription drug services to be recaptured from a recipient's estate after their death (or if the recipient has a surviving Spouse, the recapture is suspended until after the death of the recipient's surviving Spouse). Medicaid estate planning may be important to people who are concerned about long term care costs or the adequacy of their private LTC insurance. Benefits associated with this variable annuity may have an impact on your Medicaid eligibility and the assets considered for Medicaid benefits. Certain asset and/or trust transfers (or a "spend down" of assets) made to become eligible for Medicaid may trigger periods of potentially unlimited ineligibility and can be considered fraud. Each state examines the financial history of a person to determine whether he or she transferred funds at below market value in order to qualify for Medicaid. These look-back periods are currently 36-months for asset transfers and 60-months for Medicaid exempt trust transfers. Ownership interests or beneficiary status under this variable annuity can render you or your loved ones ineligible for Medicaid. This may be particularly troubling if your Spouse or Beneficiary is already receiving Medicaid benefits at the time of transfer or receipt of Death Benefits. As certain ownership changes are either impermissible or are subject to benefit resetting rules, you may want to carefully consider how you structure the ownership and beneficiary status of your Contract. This discussion is intended to provide a very general overview and does not constitute legal advice or in any way suggest that you circumvent these rules. You should seek advice from a competent elder law attorney to make informed decisions about how this variable annuity may affect your plans. 38 ------------------------------------------------------------------------------- D. LEGAL PROCEEDINGS There continues to be significant federal and state regulatory activity relating to financial services companies. Like other insurance companies, we are involved in lawsuits, arbitrations, and regulatory/legal proceedings. Certain of the lawsuits and legal actions the Company is involved in assert claims for substantial amounts. While it is not possible to predict with certainty the ultimate outcome of any pending or future case, legal proceeding or regulatory action, we do not expect the ultimate result of any of these actions to result in a material adverse effect on the Company or its Separate Accounts. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods. E. HOW CONTRACTS ARE SOLD We have entered into a distribution agreement with our affiliate Hartford Securities Distribution Company, Inc. ("HSD") under which HSD serves as the principal underwriter for the Contracts, which are offered on a continuous basis. HSD is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The principal business address of HSD is the same as ours. Hartford Life Distributors, LLC LLC, a subsidiary of Hartford Life Insurance Company, provides marketing support for us. Woodbury Financial Services, Inc. is another affiliated broker-dealer that sells this Contract. HSD has entered into selling agreements with affiliated and unaffiliated broker-dealers, and financial institutions ("Financial Intermediaries") for the sale of the Contracts. We pay compensation to HSD for sales of the Contracts by Financial Intermediaries. HSD, in its role as principle underwriter, did not retain any underwriting commissions for the fiscal year ended December 31, 2012. Contracts will be sold by individuals who have been appointed by us as insurance agents and who are registered representatives of Financial Intermediaries ("Registered Representatives"). Core Contracts may be sold directly to the following individuals free of any commission ("Employee Gross-Up"): 1) current or retired officers, directors, trustees and employees (and their families) of our ultimate corporate parent and affiliates; and 2) employees and Registered Representatives (and their families) of Financial Intermediaries. If applicable, we will credit the Core Contract with a credit of 5.0% of the initial Premium Payment and each subsequent Premium Payment, if any. This additional percentage of Premium Payment in no way affects current or future charges, rights, benefits or account values of other Contract Owners. We list below types of arrangements that help to incentivize sales people to sell our suite of variable annuities. Not all arrangements necessarily affect each variable annuity. These types of arrangements could be viewed as creating conflicts of interest. Financial Intermediaries receive commissions (described below under "Commissions"). Certain selected Financial Intermediaries also receive additional compensation (described below under "Additional Payments"). All or a portion of the payments we make to Financial Intermediaries may be passed on to Registered Representatives according to a Financial Intermediaries' internal compensation practices. Affiliated broker-dealers also employ individuals called "wholesalers" in the sales process. Wholesalers typically receive commissions based on the type of Contract or optional benefits sold. Commissions are based on a specified amount of Premium Payments or Contract Value. - COMMISSIONS Up front commissions paid to Financial Intermediaries generally range from 1% to up to 7% of each Premium Payment you pay for your Contract. Trail commissions (fees paid for customers that maintain their Contracts generally for more than 1 year) range up to 1.20% of your Contract Value. We pay different commissions based on the Contract variation that you buy. We may pay a lower commission for sales to people over age 80. Commission arrangements vary from one Financial Intermediary to another. We are not involved in determining your Registered Representative's compensation. Under certain circumstances, your Registered Representative may be required to return all or a portion of the commissions paid. Check with your Registered Representative to verify whether your account is a brokerage or an advisory account. Your interests may differ from ours and your Registered Representative (or the Financial Intermediary with which they are associated). Please ask questions to make sure you understand your rights and any potential conflicts of interest. If you are an advisory client, your Registered Representative (or the Financial Intermediary with which they are associated) can be paid both by you and by us based on what you buy. Therefore, profits, and your Registered Representative's (or their Financial Intermediary's) compensation, may vary by product and over time. Contact an appropriate person at your Financial Intermediary with whom you can discuss these differences. 39 ------------------------------------------------------------------------------- - ADDITIONAL PAYMENTS Subject to FINRA and Financial Intermediary rules, we (or our affiliates) also pay the following types of fees to among other things encourage the sale of this Contract. These additional payments could create an incentive for your Registered Representative, and the Financial Intermediary with which they are associated, to recommend products that pay them more than others, which may not necessarily be to your benefit.
ADDITIONAL PAYMENT TYPE WHAT IT'S USED FOR --------------------------------------------------------------------------------------------------------------------------------- Access Access to Registered Representatives and/or Financial Intermediaries such as one-on-one wholesaler visits or attendance at national sales meetings or similar events. Gifts & Entertainment Occasional meals and entertainment, tickets to sporting events and other gifts. Marketing Joint marketing campaigns and/or Financial Intermediary event advertising/participation; sponsorship of Financial Intermediary sales contests and/or promotions in which participants (including Registered Representatives) receive prizes such as travel awards, merchandise and recognition; client generation expenses. Marketing Expense Allowances Pay Fund related parties for wholesaler support, training and marketing activities for certain Funds. Support Sales support through such things as providing hardware and software, operational and systems integration, links to our website from a Financial Intermediary's websites; shareholder services (including sub-accounting sponsorship of Financial Intermediary due diligence meetings; and/or expense allowances and reimbursements. Training Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training, and/or client or prospect seminar sponsorships. Visibility Inclusion of our products on a Financial Intermediary's "preferred list"; participation in, or visibility at, national and regional conferences; and/or articles in Financial Intermediary publications highlighting our products and services. Volume Pay for the overall volume of their sales or the amount of money investing in our products.
As of December 31, 2012, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities: AIG Advisors Group, Inc., (FSC Securities Corporation, Royal Alliance Assoc., Inc., Sagepoint Financial), Allen & Company of Florida, Inc., Bancwest Investment Services, Inc., BBVA Compass Inv. Solutions, Inc., Cadaret, Grant & Co., Inc., Cambridge Investment Research Inc., Capital Analyst Inc., Centaurus Financial, Inc., Cetera Financial Group (Cetera Financial Specialists, LLC, Cetera Investment Services, LLC, Cetera Advisors, LLC, Cetera Advisor Networks, LLC, CCO Investment Services Corp., Citigroup Global Markets, Inc., Comerica Securities, Inc., Commonwealth Financial Network, Crown Capital Securities, LLP, Cuna Brokerage Services, Inc., Cuso Financial Services, LLP, Edward D. Jones & Co., LLP, Fifth Third Securities, Inc., First Allied Securities, Inc., First Citizens Investor Services, Inc., First Tennessee Brokerage Inc., Frost Brokerage Services, Inc., H. Beck, Inc., H.D. Vest Investment Services, Harbour Investments, Inc., Heim, Young & Associates, Inc., Huntington Investment Company, Infinex Investment, Inc., ING Financial Partners, Multi-Financial Securities Corp., Primevest Financial Services, Inc.,), Investacorp, Inc., Investment Professionals, Inc., Investors Capital Corp., J.J.B. Hilliard, W.L. Lyons LLC, Janney Montgomery Scott, Inc., Key Investment Services, Lincoln Financial Advisors Corp., Lincoln Financial Securities Corp., Lincoln Investment Planning, LPL Financial Corporation, M&T Securities, Inc., Merrill Lynch Pierce Fenner & Smith, MML Investor Services Inc., Morgan Keegan & Company, Inc., Morgan Stanley Smith Barney, LLC, (various divisions and affiliates), Newbridge Securities Corp., NEXT Financial Group, Inc., NFP Securities, Inc., Prime Capital Services, Inc., Prospera Financial Services, Inc., Raymond James & Associates, Inc., Raymond James Financial Services, RBC Capital Markets., Robert W. Baird & Co. Inc., Rogan & Associates, Securities America, Inc., Sigma Financial Corporation, Sorrento Pacific Financial LLC, Summit Brokerage Services Inc., Sun Trust Investment Services, TFS Securities, Inc., The Investment Center, Inc., Thurston, Springer, Miller, Herd & Titak, Inc., Transamerica Financial Advisors, Triad Advisors, Inc., U.S. Bancorp Investments, Inc., Unionbanc Investment Services, UBS Financial Services, Inc., Vanderbilt Securities, LLC, Wells Fargo Advisors LLC (various divisions), Woodbury Financial Services, Inc. (an affiliate of ours). Inclusion on this list does not imply that these sums necessarily constitute "special cash compensation" as defined by FINRA Conduct Rule 2830(l)(4). We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify any investor whether their investment professional is or should be included in any such listing. As of December 31, 2012, we have entered into arrangements to pay Marketing Expense Allowances to the following Fund Companies (or affiliated parties) for our entire suite of variable annuities: American Variable Insurance Series & Capital Research and Management Company & Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc. Marketing Expense Allowances may vary based on the form of Contract sold and the age of the purchaser. We will endeavor to update this listing annually and 40 ------------------------------------------------------------------------------- interim arrangements may not be reflected. We assume no duty to notify you whether any Financial Intermediary is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares. For the fiscal year ended December 31, 2012, Additional Payments did not in the aggregate exceed approximately $29 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.05% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $0.2 million or approximately 0.15% of the Premium Payments invested in a particular Fund during this period. Financial Intermediaries that received Additional Payments in 2012, but do not have an ongoing contractual relationship, are listed in the Statement of Additional Information. 8. FEDERAL TAX CONSIDERATIONS A. INTRODUCTION The following summary of tax rules does not provide or constitute any tax advice. It provides only a general discussion of certain of the expected federal income tax consequences with respect to amounts contributed to, invested in or received from a Contract, based on our understanding of the existing provisions of the Internal Revenue Code ("Code"), Treasury Regulations thereunder, and public interpretations thereof by the IRS (e.g., Revenue Rulings, Revenue Procedures or Notices) or by published court decisions. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss state, local or foreign tax consequences. The term United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships, trust or estates that are subject to United States federal income tax, regardless of the source of their income. See "Annuity Purchases by Nonresident Aliens and Foreign Corporations," regarding annuity purchases by non-U.S. Persons or residents. This summary has been prepared by us after consultation with tax counsel, but no opinion of tax counsel has been obtained. We do not make any guarantee or representation regarding any tax status (e.g., federal, state, local or foreign) of any Contract or any transaction involving a Contract. In addition, there is always a possibility that the tax treatment of an annuity contract could change by legislation or other means (such as regulations, rulings or judicial decisions). Moreover, it is always possible that any such change in tax treatment could be made retroactive (that is, made effective prior to the date of the change). Accordingly, you should consult a qualified tax adviser for complete information and advice before purchasing a Contract. In addition, although this discussion addresses certain tax consequences if you use the Contract in various arrangements, including Charitable Remainder Trusts, tax-qualified retirement arrangements, deferred compensation plans, split-dollar insurance arrangements, or other employee benefit arrangements, this discussion is not exhaustive. The tax consequences of any such arrangement may vary depending on the particular facts and circumstances of each individual arrangement and whether the arrangement satisfies certain tax qualification or classification requirements. In addition, the tax rules affecting such an arrangement may have changed recently, e.g., by legislation or regulations that affect compensatory or employee benefit arrangements. Therefore, if you are contemplating the use of a Contract in any arrangement the value of which to you depends in part on its tax consequences, you should consult a qualified tax adviser regarding the tax treatment of the proposed arrangement and of any Contract used in it. Pursuant to Section 3 of the federal Defense of Marriage Act ("DOMA"), same-sex marriages currently are not recognized for purposes of federal law. Therefore, the favorable income-deferral options afforded by federal tax law to an opposite-sex spouse under Internal Revenue Code sections 72(s) and 401(a)(9) are currently NOT available to a same-sex spouse. Same-sex spouses who own or are considering the purchase of annuity products that provide benefits based upon status as a spouse should consult a tax advisor. To the extent that an annuity contract or certificate accords to spouses other rights or benefits that are not affected by DOMA, same-sex spouses remain entitled to such rights or benefits to the same extent as any annuity holder's spouse. The federal, as well as state and local, tax laws and regulations require the Company to report certain transactions with respect to Your contract (such as an exchange of or a distribution from the contract) to the Internal Revenue Service and state and local tax authorities, and generally to provide You with a copy of what was reported. This copy is not intended to supplant Your own records. It is Your responsibility to ensure that what You report to the Internal Revenue Service and other relevant taxing authorities on your income tax returns is accurate based on Your books and records. You should review whatever is reported to the taxing authorities by the Company against your own records, and in consultation with your own tax advisor, and should notify the Company if You find any discrepancies in case corrections have to be made. THE DISCUSSION SET FORTH BELOW IS INCLUDED FOR GENERAL PURPOSES ONLY. SPECIAL TAX RULES MAY APPLY WITH RESPECT TO CERTAIN SITUATIONS THAT ARE NOT DISCUSSED HEREIN. EACH POTENTIAL PURCHASER OF A CONTRACT IS ADVISED TO CONSULT WITH A QUALIFIED TAX ADVISER AS TO THE CONSEQUENCES OF ANY AMOUNTS INVESTED IN A CONTRACT UNDER APPLICABLE FEDERAL, STATE, LOCAL OR FOREIGN TAX LAW. 41 ------------------------------------------------------------------------------- B. TAXATION OF THE COMPANY AND THE SEPARATE ACCOUNT The Separate Account is taxed as part of the Company which is taxed as a life insurance company under Subchapter L of Chapter 1 of the Code. Accordingly, the Separate Account will not be taxed as a "regulated investment company" under Subchapter M of Chapter 1 of the Code. Investment income and any realized capital gains on assets of the Separate Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the Contract. Currently, no taxes are due on interest, dividends and short-term or long-term capital gain earned by the Separate Account with respect to the Contracts. The Company is entitled to certain tax benefits related to the investment of company assets, including assets of the Separate Account. These tax benefits, which may include the foreign tax credit and the corporate dividends received deduction, are not passed back to you since the Company is the owner of the assets from which the tax benefits are derived. C. TAXATION OF ANNUITIES - GENERAL PROVISIONS AFFECTING CONTRACTS NOT HELD IN TAX-QUALIFIED RETIREMENT PLANS Section 72 of the Code governs the taxation of annuities in general. 1. NON-NATURAL PERSONS AS OWNERS Pursuant to Code Section 72(u), an annuity contract held by a taxpayer other than a natural person generally is not treated as an annuity contract under the Code. Instead, such a non-natural Contract Owner generally could be required to include in gross income currently for each taxable year the excess of (a) the sum of the Contract Value as of the close of the taxable year and all previous distributions under the Contract over (b) the sum of net premiums paid for the taxable year and any prior taxable year and the amount includable in gross income for any prior taxable year with respect to the Contract under Section 72(u). However, Section 72(u) does not apply to: - A contract the nominal owner of which is a non-natural person but the beneficial owner of which is a natural person (e.g., where the non-natural owner holds the contract as an agent for the natural person), - A contract acquired by the estate of a decedent by reason of such decedent's death, - Certain contracts acquired with respect to tax-qualified retirement arrangements, - Certain contracts held in structured settlement arrangements that may qualify under Code Section 130, or - A single premium immediate annuity contract under Code Section 72(u)(4), which provides for substantially equal periodic payments and an annuity starting date that is no later than 1 year from the date of the contract's purchase. A non-natural Contract Owner that is a tax-exempt entity for federal tax purposes (e.g., a tax-qualified retirement trust or a Charitable Remainder Trust) generally would not be subject to federal income tax as a result of such current gross income under Code Section 72(u). However, such a tax-exempt entity, or any annuity contract that it holds, may need to satisfy certain tax requirements in order to maintain its qualification for such favorable tax treatment. See, e.g., IRS Tech. Adv. Memo. 9825001 for certain Charitable Remainder Trusts. Pursuant to Code Section 72(s), if the Contract Owner is a non-natural person, the primary annuitant is treated as the "holder" in applying the required distribution rules described below. These rules require that certain distributions be made upon the death of a "holder." In addition, for a non-natural owner, a change in the primary annuitant is treated as the death of the "holder." However, the provisions of Code Section 72(s) do not apply to certain contracts held in tax-qualified retirement arrangements or structured settlement arrangements. For tax years beginning after December 31, 2012, estates and trusts with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the estate's or trust's adjusted gross income for the taxable year. 2. OTHER CONTRACT OWNERS (NATURAL PERSONS). A Contract Owner is not taxed on increases in the value of the Contract until an amount is received or deemed received, e.g., in the form of a lump sum payment (full or partial value of a Contract) or as Annuity payments under the settlement option elected. The provisions of Section 72 of the Code concerning distributions are summarized briefly below. Also summarized are special rules affecting distributions from Contracts obtained in a tax-free exchange for other annuity contracts or life insurance contracts which were purchased prior to August 14, 1982. For tax years beginning after December 31, 2012, individuals with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the individual's modified adjusted gross income for the taxable year. 42 ------------------------------------------------------------------------------- a. DISTRIBUTIONS PRIOR TO THE ANNUITY COMMENCEMENT DATE. Total premium payments less amounts received which were not includable in gross income equal the "investment in the contract" under Section 72 of the Code. ii. To the extent that the value of the Contract (ignoring any surrender charges except on a full surrender) exceeds the "investment in the contract," such excess constitutes the "income on the contract." It is unclear what value should be used in determining the "income on the contract." We believe that the current Contract Value (determined without regard to surrender charges) generally is an appropriate measure. However, in some instances the IRS could take the position that the value should be the current Contract Value (determined without regard to surrender charges) increased by some measure of the value of certain future cash-value type benefits. iii. Any amount received or deemed received prior to the Annuity Commencement Date (e.g., upon a withdrawal or partial surrender) is deemed to come first from any such "income on the contract" and then from "investment in the contract," and for these purposes such "income on the contract" shall be computed by reference to any aggregation rule in subparagraph 2.c. below. As a result, any such amount received or deemed received (1) shall be includable in gross income to the extent that such amount does not exceed any such "income on the contract," and (2) shall not be includable in gross income to the extent that such amount does exceed any such "income on the contract." If at the time that any amount is received or deemed received there is no "income on the contract" (e.g., because the gross value of the Contract does not exceed the "investment in the contract" and no aggregation rule applies), then such amount received or deemed received will not be includable in gross income, and will simply reduce the "investment in the contract." iv. The receipt of any amount as a loan under the Contract or the assignment or pledge of any portion of the value of the Contract shall be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. v. In general, the transfer of the Contract, without full and adequate consideration, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. This transfer rule does not apply, however, to certain transfers of property between Spouses or incident to divorce. vi. In general, any amount actually received under the Contract as a Death Benefit, including an optional Death Benefit, if any, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. b. DISTRIBUTIONS AFTER ANNUITY COMMENCEMENT DATE. Annuity payments made periodically after the Annuity Commencement Date are includable in gross income to the extent the payments exceed the amount determined by the application of the ratio of the "investment in the contract" to the total amount of the payments to be made after the Annuity Commencement Date (the "exclusion ratio"). i. When the total of amounts excluded from income by application of the exclusion ratio is equal to the investment in the contract as of the Annuity Commencement Date, any additional payments (including surrenders) will be entirely includable in gross income. ii. If the annuity payments cease by reason of the death of the Annuitant and, as of the date of death, the amount of annuity payments excluded from gross income by the exclusion ratio does not exceed the investment in the contract as of the Annuity Commencement Date, then the remaining portion of unrecovered investment shall be allowed as a deduction for the last taxable year of the Annuitant. iii. Generally, non-periodic amounts received or deemed received after the Annuity Commencement Date are not entitled to any exclusion ratio and shall be fully includable in gross income. However, upon a full surrender after such date, only the excess of the amount received (after any surrender charge) over the remaining "investment in the contract" shall be includable in gross income (except to the extent that the aggregation rule referred to in the next subparagraph c. may apply). c. AGGREGATION OF TWO OR MORE ANNUITY CONTRACTS. Contracts issued after October 21, 1988 by the same insurer (or affiliated insurer) to the same owner within the same calendar year (other than certain contracts held in connection with tax-qualified retirement arrangements) will be aggregated and treated as one annuity contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. An annuity contract received in a tax-free exchange for another annuity contract or life insurance contract may be treated as a new contract for this purpose. We believe that for any Contracts subject to such aggregation, the values under the Contracts and the investment in the contracts will be added together to determine the taxation under subparagraph 2.a., above, of amounts received or deemed received prior to the Annuity Commencement Date. Withdrawals will be treated first as withdrawals of income until all of the income from all such Contracts is withdrawn. In addition, the Treasury Department has specific authority under the aggregation rules in Code Section 72(e)(12) to issue regulations to prevent the avoidance of the income-out-first rules for non-periodic distributions through the serial purchase of annuity contracts or otherwise. As of the date of this prospectus, there are no regulations interpreting these aggregation provisions. 43 ------------------------------------------------------------------------------- d. 10% PENALTY TAX - APPLICABLE TO CERTAIN WITHDRAWALS AND ANNUITY PAYMENTS. i. If any amount is received or deemed received on the Contract (before or after the Annuity Commencement Date), the Code applies a penalty tax equal to ten percent of the portion of the amount includable in gross income, unless an exception applies. ii. The 10% penalty tax will not apply to the following distributions: 1. Distributions made on or after the date the recipient has attained the age of 59 1/2. 2. Distributions made on or after the death of the holder or where the holder is not an individual, the death of the primary annuitant. 3. Distributions attributable to a recipient's becoming disabled. 4. A distribution that is part of a scheduled series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the recipient (or the joint lives or life expectancies of the recipient and the recipient's designated Beneficiary). 5. Distributions made under certain annuities issued in connection with structured settlement agreements. 6. Distributions of amounts which are allocable to the "investment in the contract" prior to August 14, 1982 (see next subparagraph e.). 7. Distributions purchased by an employer upon termination of certain qualified plans and held by the employer until the employee separates from service. If the taxpayer avoids this 10% penalty tax by qualifying for the substantially equal periodic payments exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the taxpayer has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. e. SPECIAL PROVISIONS AFFECTING CONTRACTS OBTAINED THROUGH A TAX-FREE EXCHANGE OF OTHER ANNUITY OR LIFE INSURANCE CONTRACTS PURCHASED PRIOR TO AUGUST 14, 1982. If the Contract was obtained by a tax-free exchange of a life insurance or annuity Contract purchased prior to August 14, 1982, then any amount received or deemed received prior to the Annuity Commencement Date shall be deemed to come (1) first from the amount of the "investment in the contract" prior to August 14, 1982 ("pre-8/14/82 investment") carried over from the prior Contract, (2) then from the portion of the "income on the contract" (carried over to, as well as accumulating in, the successor Contract) that is attributable to such pre-8/14/82 investment, (3) then from the remaining "income on the contract" and (4) last from the remaining "investment in the contract." As a result, to the extent that such amount received or deemed received does not exceed such pre-8/14/82 investment, such amount is not includable in gross income. In addition, to the extent that such amount received or deemed received does not exceed the sum of (a) such pre-8/14/82 investment and (b) the "income on the contract" attributable thereto, such amount is not subject to the 10% penalty tax. In all other respects, amounts received or deemed received from such post-exchange Contracts are generally subject to the rules described in this subparagraph e. f. REQUIRED DISTRIBUTIONS i. Death of Contract Owner or Primary Annuitant Subject to the alternative election or Spouse beneficiary provisions in ii or iii below: 1. If any Contract Owner dies on or after the Annuity Commencement Date and before the entire interest in the Contract has been distributed, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used as of the date of such death; 2. If any Contract Owner dies before the Annuity Commencement Date, the entire interest in the Contract shall be distributed within 5 years after such death; and 3. If the Contract Owner is not an individual, then for purposes of 1. or 2. above, the primary annuitant under the Contract shall be treated as the Contract Owner, and any change in the primary annuitant shall be treated as the death of the Contract Owner. The primary annuitant is the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the Contract. ii. Alternative Election to Satisfy Distribution Requirements If any portion of the interest of a Contract Owner described in i. above is payable to or for the benefit of a designated beneficiary, such beneficiary may elect to have the portion distributed over a period that does not extend beyond the life or life expectancy of the beneficiary. Such distributions must begin within a year of the Contract Owner's death. 44 ------------------------------------------------------------------------------- iii. Spouse Beneficiary If any portion of the interest of a Contract Owner is payable to or for the benefit of his or her Spouse, and the Annuitant or Contingent Annuitant is living, such Spouse shall be treated as the Contract Owner of such portion for purposes of section i. above. This spousal contract continuation shall apply only once for this Contract. iv. Civil Union or Domestic Partner Upon the death of the Contract Owner prior to the Annuity Commencement Date, if the designated beneficiary is the surviving civil union or domestic partner of the Contract Owner pursuant to a civil union or domestic partnership recognized under state law, then such designated beneficiary's right to continue the Contract as the succeeding Contract Owner will be contingent, among other things, upon the treatment of such designated beneficiary as the spouse of the Contract Owner under Code Section 72(s) (or any successor provision). Currently, Federal tax law only recognizes spouses if they are married individuals of the opposite sex. Consequently, such designated beneficiary who is not recognized as a "spouse" under Federal tax law will not be able to continue the Contract and the entire interest in the Contract must be distributed within five years of the Contract Owner's death or under the Alternative Election. g. ADDITION OF RIDER OR MATERIAL CHANGE. The addition of a rider to the Contract, or a material change in the Contract's provisions, could cause it to be considered newly issued or entered into for tax purposes, and thus could cause the Contract to lose certain grandfathered tax status. Please contact your tax adviser for more information. h. PARTIAL EXCHANGES. The IRS, in Rev. Rul. 2003-76, confirmed that the owner of an annuity contract can direct its insurer to transfer a portion of the contract's cash value directly to another annuity contract (issued by the same insurer or by a different insurer), and such a direct transfer can qualify for tax-free exchange treatment under Code Section 1035 (a "partial exchange"). The IRS issued additional guidance, Rev. Proc. 2011-38, that addresses partial exchanges. Rev. Proc. 2011-38 modifies and supersedes Rev. Proc. 2008-24 and applies to the direct transfer of a portion of the cash surrender value of an existing annuity contract for a second annuity contract, regardless of whether the two annuity contracts are issued by the same or different companies and is effective for transfers that are completed on or after October 24, 2011. The Rev. Proc. does not apply to transactions to which the rules for partial annuitization under Code Section 72(a)(2) apply. Under Rev. Proc. 2011-38, a transfer within the scope of the Rev. Proc. will be treated as a tax-free exchange under Section 1035 if no amount, other than an amount received as an annuity for a period of 10 years or more or during one or more lives, is received under either the original contract or the new contract during the 180 days beginning on the date of the transfer (in the case of a new contract, the date the contract is placed in-force). A subsequent direct transfer of all or a portion of either contract is not taken into account for purposes of this characterization if the subsequent transfer qualifies (or is intended to qualify) as a tax-free exchange under Code Section 1035. If a transfer falls within the scope of the Rev. Proc. but is not described above (for example-if a distribution is made from either contract within the 180 day period), the transfer will be characterized in a manner consistent with its substance, based on general tax principles and all the facts and circumstances. The IRS will not require aggregation (under Code Section 72(e)(12)) of an original, pre-existing contract with a second contract that is the subject of a tax-free exchange, even if both contracts are issued by the same insurance company, but will instead treat the contracts as separate annuity contracts. The applicability of the IRS's partial exchange guidance to the splitting of an annuity contract is not clear. You should consult with a qualified tax adviser as to potential tax consequences before attempting any partial exchange or split of annuity contracts. 3. DIVERSIFICATION REQUIREMENTS. The Code requires that investments supporting your Contract be adequately diversified. Code Section 817(h) provides that a variable annuity contract will not be treated as an annuity contract for any period during which the investments made by the separate account or Fund are not adequately diversified. If a contract is not treated as an annuity contract, the contract owner will be subject to income tax on annual increases in cash value. The Treasury Department's diversification regulations under Code Section 817(h) require, among other things, that: - no more than 55% of the value of the total assets of the segregated asset account underlying a variable contract is represented by any one investment, - no more than 70% is represented by any two investments, - no more than 80% is represented by any three investments and - no more than 90% is represented by any four investments. 45 ------------------------------------------------------------------------------- In determining whether the diversification standards are met, all securities of the same issuer, all interests in the same real property project, and all interests in the same commodity are each treated as a single investment. In the case of government securities, each government agency or instrumentality is treated as a separate issuer. A separate account must be in compliance with the diversification standards on the last day of each calendar quarter or within 30 days after the quarter ends. If an insurance company inadvertently fails to meet the diversification requirements, the company may still comply within a reasonable period and avoid the taxation of contract income on an ongoing basis. However, either the insurer or the contract owner must agree to make adjustments or pay such amounts as may be required by the IRS for the period during which the diversification requirements were not met. Fund shares may also be sold to tax-qualified plans pursuant to an exemptive order and applicable tax laws. If Fund shares are sold to non-qualified plans, or to tax-qualified plans that later lose their tax-qualified status, the affected Funds may fail the diversification requirements of Code Section 817(h), which could have adverse tax consequences for Contract Owners with premiums allocated to affected Funds. In order to prevent a Fund diversification failure from such an occurrence, the Company obtained a private letter ruling ("PLR") from the IRS. As long as the Funds comply with certain terms and conditions contained in the PLR, Fund diversification will not be prevented if purported tax-qualified plans invest in the Funds. The Company and the Funds will monitor the Funds' compliance with the terms and conditions contained in the PLR. 4. TAX OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT. In order for a variable annuity contract to qualify for tax income deferral, assets in the separate account supporting the contract must be considered to be owned by the insurance company, and not by the contract owner, for tax purposes. The IRS has stated in published rulings that a variable contract owner will be considered the "owner" of separate account assets for income tax purposes if the contract owner possesses sufficient incidents of ownership in those assets, such as the ability to exercise investment control over the assets. In circumstances where the variable contract owner is treated as the "tax owner" of certain separate account assets, income and gain from such assets would be includable in the variable contract owner's gross income. The Treasury Department indicated in 1986 that it would provide guidance on the extent to which contract owners may direct their investments to particular Sub-Accounts without being treated as tax owners of the underlying shares. Although no such regulations have been issued to date, the IRS has issued a number of rulings that indicate that this issue remains subject to a facts and circumstances test for both variable annuity and life insurance contracts. Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, indicates that, where interests in a partnership offered in an insurer's separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such interests can be purchased directly by the general public or others without going through such a variable contract), such "public availability" means that such interests should be treated as owned directly by the contract owner (and not by the insurer) for tax purposes, as if such contract owner had chosen instead to purchase such interests directly (without going through the variable contract). None of the shares or other interests in the fund choices offered in our Separate Account for your Contract are available for purchase except through an insurer's variable contracts or by other permitted entities. Rev. Rul. 2003-91 indicates that an insurer could provide as many as 20 fund choices for its variable contract owners (each with a general investment strategy, e.g., a small company stock fund or a special industry fund) under certain circumstances, without causing such a contract owner to be treated as the tax owner of any of the Fund assets. The ruling does not specify the number of fund options, if any, that might prevent a variable contract owner from receiving favorable tax treatment. As a result, although the owner of a Contract has more than 20 fund choices, we believe that any owner of a Contract also should receive the same favorable tax treatment. However, there is necessarily some uncertainty here as long as the IRS continues to use a facts and circumstances test for investor control and other tax ownership issues. Therefore, we reserve the right to modify the Contract as necessary to prevent you from being treated as the tax owner of any underlying assets. D. FEDERAL INCOME TAX WITHHOLDING The portion of an amount received under a Contract that is taxable gross income to the Payee is also subject to federal income tax withholding, pursuant to Code Section 3405, which requires the following: 1. Non-Periodic Distributions. The portion of a non-periodic distribution that is includable in gross income is subject to federal income tax withholding unless an individual elects not to have such tax withheld ("election out"). We will provide such an "election out" form at the time such a distribution is requested. If the necessary "election out" form is not submitted to us in a timely manner, generally we are required to withhold 10 percent of the includable amount of distribution and remit it to the IRS. 2. Periodic Distributions (payable over a period greater than one year). The portion of a periodic distribution that is includable in gross income is generally subject to federal income tax withholding as if the Payee were a married individual claiming 3 exemptions, unless the individual elects otherwise. An individual generally may elect out of such withholding, or elect to have income tax withheld at a different rate, by providing a completed election form. We will provide such an election form at the 46 ------------------------------------------------------------------------------- time such a distribution is requested. If the necessary "election out" forms are not submitted to us in a timely manner, we are required to withhold tax as if the recipient were married claiming 3 exemptions, and remit this amount to the IRS. Generally no "election out" is permitted if the distribution is delivered outside the United States and any possession of the United States. Regardless of any "election out" (or any amount of tax actually withheld) on an amount received from a Contract, the Payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A Payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the Payee's total tax liability. E. GENERAL PROVISIONS AFFECTING QUALIFIED RETIREMENT PLANS The Contract may be used for a number of qualified retirement plans. If the Contract is being purchased with respect to some form of qualified retirement plan, please refer to the section entitled "Information Regarding Tax-Qualified Retirement Plans" for information relative to the types of plans for which it may be used and the general explanation of the tax features of such plans. F. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal income tax and mandatory withholding on U.S. source taxable annuity distributions at a 30% rate, unless a lower treaty rate applies and any required tax forms are submitted to us. If withholding applies, we are required to withhold tax at the 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. In addition, purchasers may be subject to state premium tax, other state and/or municipal taxes, and taxes that may be imposed by the purchaser's country of citizenship or residence. G. ESTATE, GIFT AND GENERATION-SKIPPING TAX AND RELATED TAX CONSIDERATIONS Any amount payable upon a Contract Owner's death, whether before or after the Annuity Commencement Date, is generally includable in the Contract Owner's estate for federal estate tax purposes. Similarly, prior to the Contract Owner's death, the payment of any amount from the Contract, or the transfer of any interest in the Contract, to a beneficiary or other person for less than adequate consideration may have federal gift tax consequences. In addition, any transfer to, or designation of, a non-Spouse beneficiary who either is (1) 37 1/2 or more years younger than a Contract Owner or (2) a grandchild (or more remote further descendent) of a Contract Owner may have federal generation-skipping-transfer ("GST") tax consequences under Code Section 2601. Regulations under Code Section 2662 may require us to deduct any such GST tax from your Contract, or from any applicable payment, and pay it directly to the IRS. However, any federal estate, gift or GST tax payment with respect to a Contract could produce an offsetting income tax deduction for a beneficiary or transferee under Code Section 691(c) (partially offsetting such federal estate or GST tax) or a basis increase for a beneficiary or transferee under Code Section 691(c) or Section 1015(d). In addition, as indicated above in "Distributions Prior to the Annuity Commencement Date," the transfer of a Contract for less than adequate consideration during the Contract Owner's lifetime generally is treated as producing an amount received by such Contract Owner that is subject to both income tax and the 10% penalty tax. To the extent that such an amount deemed received causes an amount to be includable currently in such Contract Owner's gross income, this same income amount could produce a corresponding increase in such Contract Owner's tax basis for such Contract that is carried over to the transferee's tax basis for such Contract under Code Section 72(e)(4)(C)(iii) and Section 1015. H. TAX DISCLOSURE OBLIGATIONS In some instances certain transactions must be disclosed to the IRS or penalties could apply. See, for example, IRS Notice 2004-67. The Code also requires certain "material advisers" to maintain a list of persons participating in such "reportable transactions," which list must be furnished to the IRS upon request. It is possible that such disclosures could be required by The Company, the Owner(s) or other persons involved in transactions involving annuity contracts. It is the responsibility of each party, in consultation with their tax and legal advisers, to determine whether the particular facts and circumstances warrant such disclosures. 9. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS This summary does not attempt to provide more than general information about the federal income tax rules associated with use of a Contract by a tax-qualified retirement plan. State income tax rules applicable to tax-qualified retirement plans often differ from federal income tax rules, and this summary does not describe any of these differences. Because of the complexity of the tax rules, owners, participants and beneficiaries are encouraged to consult their own tax advisors as to specific tax consequences. The Contracts are available to a variety of tax-qualified retirement plans and arrangements (a "Qualified Plan" or "Plan"). Tax restrictions and consequences for Contracts or accounts under each type of Qualified Plan differ from each other and from those for Non-Qualified Contracts. In addition, individual Qualified Plans may have terms and conditions that impose additional rules. Therefore, no attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified 47 ------------------------------------------------------------------------------- Plans. Participants under such Qualified Plans, as well as Contract Owners, annuitants and beneficiaries, are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to terms and conditions of the Plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. Qualified Plans generally provide for the tax deferral of income regardless of whether the Qualified Plan invests in an annuity or other investment. You should consider if the Contract is a suitable investment if you are investing through a Qualified Plan. THE FOLLOWING IS ONLY A GENERAL DISCUSSION ABOUT TYPES OF QUALIFIED PLANS FOR WHICH THE CONTRACTS MAY BE AVAILABLE. WE ARE NOT THE PLAN ADMINISTRATOR FOR ANY QUALIFIED PLAN. THE PLAN ADMINISTRATOR OR CUSTODIAN, WHICHEVER IS APPLICABLE, (BUT NOT US) IS RESPONSIBLE FOR ALL PLAN ADMINISTRATIVE DUTIES INCLUDING, BUT NOT LIMITED TO, NOTIFICATION OF DISTRIBUTION OPTIONS, DISBURSEMENT OF PLAN BENEFITS, HANDLING ANY PROCESSING AND ADMINISTRATION OF QUALIFIED PLAN LOANS, COMPLIANCE WITH REGULATORY REQUIREMENTS AND FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS FROM THE PLAN TO PLAN PARTICIPANTS AND, IF APPLICABLE, BENEFICIARIES OF PLAN PARTICIPANTS AND IRA CONTRIBUTIONS FROM PLAN PARTICIPANTS. OUR ADMINISTRATIVE DUTIES ARE LIMITED TO ADMINISTRATION OF THE CONTRACT AND ANY DISBURSEMENTS OF ANY CONTRACT BENEFITS TO THE OWNER, ANNUITANT OR BENEFICIARY OF THE CONTRACT, AS APPLICABLE. OUR TAX REPORTING RESPONSIBILITY IS LIMITED TO FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS TO THE APPLICABLE PAYEE AND IRA CONTRIBUTIONS FROM THE OWNER OF A CONTRACT, AS RECORDED ON OUR BOOKS AND RECORDS. IF YOU ARE PURCHASING A CONTRACT THROUGH A QUALIFIED PLAN, YOU SHOULD CONSULT WITH YOUR PLAN ADMINISTRATOR AND/OR A QUALIFIED TAX ADVISER. YOU ALSO SHOULD CONSULT WITH A QUALIFIED TAX ADVISER AND/OR PLAN ADMINISTRATOR BEFORE YOU WITHDRAW ANY PORTION OF YOUR CONTRACT VALUE. The tax rules applicable to Qualified Contracts and Qualified Plans, including restrictions on contributions and distributions, taxation of distributions and tax penalties, vary according to the type of Qualified Plan, as well as the terms and conditions of the Plan itself. Various tax penalties may apply to contributions in excess of specified limits, plan distributions (including loans) that do not comply with specified limits, and certain other transactions relating to such Plans. Accordingly, this summary provides only general information about the tax rules associated with use of a Qualified Contract in such a Qualified Plan. In addition, some Qualified Plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions and other transactions comply with applicable tax (and non-tax) law and any applicable Qualified Plan terms. Because of the complexity of these rules, Owners, participants and beneficiaries are advised to consult with a qualified tax adviser as to specific tax consequences. We do not currently offer the Contracts in connection with all of the types of Qualified Plans discussed below, and may not offer the Contracts for all types of Qualified Plans in the future. 1. INDIVIDUAL RETIREMENT ANNUITIES ("IRAS"). In addition to "traditional" IRAs governed by Code Sections 408(a) and (b) ("Traditional IRAs"), there are Roth IRAs governed by Code Section 408A, SEP IRAs governed by Code Section 408(k), and SIMPLE IRAs governed by Code Section 408(p). Also, Qualified Plans under Code Section 401, 403(b) or 457(b) that include after-tax employee contributions may be treated as deemed IRAs subject to the same rules and limitations as Traditional IRAs. Contributions to each of these types of IRAs are subject to differing limitations. The following is a very general description of each type of IRA for which a Contract is available. a. TRADITIONAL IRAS Traditional IRAs are subject to limits on the amounts that may be contributed each year, the persons who may be eligible, and the time when minimum distributions must begin. Depending upon the circumstances of the individual, contributions to a Traditional IRA may be made on a deductible or non-deductible basis. Failure to make required minimum distributions ("RMDs") when the Owner reaches age 70 1/2 or dies, as described below, may result in imposition of a 50% penalty tax on any excess of the RMD amount over the amount actually distributed. In addition, any amount received before the Owner reaches age 59 1/2 or dies is subject to a 10% penalty tax on premature distributions, unless a special exception applies, as described below. Under Code Section 408(e), an IRA may not be used for borrowing (or as security for any loan) or in certain prohibited transactions, and such a transaction could lead to the complete tax disqualification of an IRA. You (or your surviving spouse if you die) may rollover funds tax-free from certain existing Qualified Plans (such as proceeds from existing insurance contracts, annuity contracts or securities) into a Traditional IRA under certain circumstances, as indicated below. However, mandatory tax withholding of 20% may apply to any eligible rollover distribution from certain types of Qualified Plans if the distribution is not transferred directly to the Traditional IRA. In addition, under Code Section 402(c)(11) a non-spouse "designated beneficiary" of a deceased Plan participant may make a tax-free "direct rollover" (in the form of a direct transfer between Plan fiduciaries, as described below in "Rollover Distributions") from certain Qualified Plans to a Traditional IRA for such beneficiary, but such Traditional IRA must be designated and treated as an "inherited IRA" that remains subject to applicable RMD rules (as if such IRA had been inherited from the deceased Plan participant). IRAs generally may not invest in life insurance contracts. However, an annuity contract that is used as an IRA may provide a death benefit that equals the greater of the premiums paid or the contract's cash value. The Contract offers an enhanced death benefit that may exceed the greater of the Contract Value or total premium payments. The tax rules are unclear as to what extent an IRA can provide a death benefit that exceeds the greater of the IRA's cash value or the sum of the premiums paid and other contributions into 48 ------------------------------------------------------------------------------- the IRA. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. b. SEP IRAS Code Section 408(k) provides for a Traditional IRA in the form of an employer-sponsored defined contribution plan known as a Simplified Employee Pension ("SEP") or a SEP IRA. A SEP IRA can have employer contributions, and in limited circumstances employee and salary reduction contributions, as well as higher overall contribution limits than a Traditional IRA, but a SEP is also subject to special tax-qualification requirements (e.g., on participation, nondiscrimination and withdrawals) and sanctions. Otherwise, a SEP IRA is generally subject to the same tax rules as for a Traditional IRA, which are described above. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. c. SIMPLE IRAS The Savings Incentive Match Plan for Employees of small employers ("SIMPLE Plan") is a form of an employer-sponsored Qualified Plan that provides IRA benefits for the participating employees ("SIMPLE IRAs"). Depending upon the SIMPLE Plan, employers may make plan contributions into a SIMPLE IRA established by each eligible participant. Like a Traditional IRA, a SIMPLE IRA is subject to the 50% penalty tax for failure to make a full RMD, and to the 10% penalty tax on premature distributions, as described below. In addition, the 10% penalty tax is increased to 25% for amounts received during the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement pursuant to a SIMPLE Plan maintained by your employer under Code Section 408(p)(2). Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions, and these are subject to different tax limits from those for a Traditional IRA. Please note that the SIMPLE IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an SIMPLE IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. A SIMPLE Plan may designate a single financial institution (a Designated Financial Institution) as the initial trustee, custodian or issuer (in the case of an annuity contract) of the SIMPLE IRA set up for each eligible participant. However, any such Plan also must allow each eligible participant to have the balance in his SIMPLE IRA held by the Designated Financial Institution transferred without cost or penalty to a SIMPLE IRA maintained by a different financial institution. Absent a Designated Financial Institution, each eligible participant must select the financial institution to hold his SIMPLE IRA, and notify his employer of this selection. If we do not serve as the Designated Financial Institution for your employer's SIMPLE Plan, for you to use one of our Contracts as a SIMPLE IRA, you need to provide your employer with appropriate notification of such a selection under the SIMPLE Plan. If you choose, you may arrange for a qualifying transfer of any amounts currently held in another SIMPLE IRA for your benefit to your SIMPLE IRA with us. d. ROTH IRAS Code Section 408A permits eligible individuals to establish a Roth IRA. Contributions to a Roth IRA are not deductible, but withdrawals of amounts contributed and the earnings thereon that meet certain requirements are not subject to federal income tax. In general, Roth IRAs are subject to limitations on the amounts that may be contributed by the persons who may be eligible to contribute, certain Traditional IRA restrictions, and certain RMD rules on the death of the Contract Owner. Unlike a Traditional IRA, Roth IRAs are not subject to RMD rules during the Contract Owner's lifetime. Generally, however, upon the Owner's death the amount remaining in a Roth IRA must be distributed by the end of the fifth year after such death or distributed over the life expectancy of a designated beneficiary. The Owner of a Traditional IRA or other qualified plan assets may convert a Traditional IRA into a Roth IRA under certain circumstances. The conversion of a Traditional IRA or other qualified plan assets to a Roth IRA will subject the fair market value of the converted Traditional IRA to federal income tax in the year of conversion (special rules apply to 2010 conversions). In addition to the amount held in the converted Traditional IRA, the fair market value may include the value of additional benefits provided by the annuity contract on the date of conversion, based on reasonable actuarial assumptions. Tax-free rollovers from a Roth IRA can be made only to another Roth IRA under limited circumstances, as indicated below. Distributions from eligible Qualified Plans can be "rolled over" directly (subject to tax) into a Roth IRA under certain circumstances. Anyone considering the purchase of a Qualified Contract as a Roth IRA or a "conversion" Roth IRA should consult with a qualified tax adviser. Please note that the Roth IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a Roth IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. 49 ------------------------------------------------------------------------------- 2. QUALIFIED PENSION OR PROFIT-SHARING PLAN OR SECTION 401(k) PLAN Provisions of the Code permit eligible employers to establish a tax-qualified pension or profit sharing plan (described in Section 401(a), and Section 401(k) if applicable, and exempt from taxation under Section 501(a)). Such a Plan is subject to limitations on the amounts that may be contributed, the persons who may be eligible to participate, the amounts of "incidental" death benefits, and the time when RMDs must commence. In addition, a Plan's provision of incidental benefits may result in currently taxable income to the participant for some or all of such benefits. Amounts may be rolled over tax-free from a Qualified Plan to another Qualified Plan under certain circumstances, as described below. Anyone considering the use of a Qualified Contract in connection with such a Qualified Plan should seek competent tax and other legal advice. In particular, please note that these tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. 3. TAX SHELTERED ANNUITY UNDER SECTION 403(b) ("TSA") Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations described in Code Section 501(c)(3) to purchase a "tax-sheltered annuity" ("TSA") contract and, subject to certain limitations, exclude employer contributions to a TSA from such an employee's gross income. Generally, total contributions may not exceed the lesser of an annual dollar limit or 100% of the employee's "includable compensation" for the most recent full year of service, subject to other adjustments. There are also legal limits on annual elective deferrals that a participant may be permitted to make under a TSA. In certain cases, such as when the participant is age 50 or older, those limits may be increased. A TSA participant should contact his plan administrator to determine applicable elective contribution limits. Special provisions may allow certain employees different overall limitations. A TSA is subject to a prohibition against distributions from the TSA attributable to contributions made pursuant to a salary reduction agreement, unless such distribution is made: a. after the employee reaches age 59 1/2; b. upon the employee's separation from service; c. upon the employee's death or disability; d. in the case of hardship (as defined in applicable law and in the case of hardship, any income attributable to such contributions may not be distributed); or e. as a qualified reservist distribution upon certain calls to active duty. An employer sponsoring a TSA may impose additional restrictions on your TSA through its plan document. Please note that the TSA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a TSA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. In particular, please note that tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. In addition, a life insurance contract issued after September 23, 2007 is generally ineligible to qualify as a TSA under Reg. Section 1.403(b)-8(c)(2). Amounts may be rolled over tax-free from a TSA to another TSA or Qualified Plan (or from a Qualified Plan to a TSA) under certain circumstances, as described below. However, effective for TSA contract exchanges after September 24, 2007, Reg. Section 1.403(b)-10(b) allows a TSA contract of a participant or beneficiary under a TSA Plan to be exchanged tax-free for another eligible TSA contract under that same TSA Plan, but only if all of the following conditions are satisfied: (1) such TSA Plan allows such an exchange, (2) the participant or beneficiary has an accumulated benefit after such exchange that is no less than such participant's or beneficiary's accumulated benefit immediately before such exchange (taking into account such participant's or beneficiary's accumulated benefit under both TSA contracts immediately before such exchange), (3) the second TSA contract is subject to distribution restrictions with respect to the participant that are no less stringent than those imposed on the TSA contract being exchanged, and (4) the employer for such TSA Plan enters into an agreement with the issuer of the second TSA contract under which such issuer and employer will provide each other from time to time with certain information necessary for such second TSA contract (or any other 50 ------------------------------------------------------------------------------- TSA contract that has contributions from such employer) to satisfy the TSA requirements under Code Section 403(b) and other federal tax requirements (e.g., plan loan conditions under Code Section 72(p) to avoid deemed distributions). Such necessary information could include information about the participant's employment, information about other Qualified Plans of such employer, and whether a severance has occurred, or hardship rules are satisfied, for purposes of the TSA distribution restrictions. Consequently, you are advised to consult with a qualified tax advisor before attempting any such TSA exchange, particularly because it requires an agreement between the employer and issuer to provide each other with certain information. We are no longer accepting any incoming exchange request, or new contract application, for any individual TSA contract. 4. DEFERRED COMPENSATION PLANS UNDER SECTION 457 ("SECTION 457 PLANS") Certain governmental employers, or tax-exempt employers other than a governmental entity, can establish a Deferred Compensation Plan under Code Section 457. For these purposes, a "governmental employer" is a State, a political subdivision of a State, or an agency or an instrumentality of a State or political subdivision of a State. A Deferred Compensation Plan that meets the requirements of Code Section 457(b) is called an "Eligible Deferred Compensation Plan" or "Section 457(b) Plan." Code Section 457(b) limits the amount of contributions that can be made to an Eligible Deferred Compensation Plan on behalf of a participant. Generally, the limitation on contributions is the lesser of (1) 100% of a participant's includible compensation or (2) the applicable dollar amount ($17,500 for 2013). The Plan may provide for additional "catch-up" contributions. In addition, under Code Section 457(d) a Section 457(b) Plan may not make amounts available for distribution to participants or beneficiaries before (1) the calendar year in which the participant attains age 70 1/2, (2) the participant has a severance from employment (including death), or (3) the participant is faced with an unforeseeable emergency (as determined in accordance with regulations). Under Code Section 457(g) all of the assets and income of an Eligible Deferred Compensation Plan for a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, annuity contracts and custodial accounts described in Code Section 401(f) are treated as trusts. This trust requirement does not apply to amounts under an Eligible Deferred Compensation Plan of a tax-exempt (non-governmental) employer. In addition, this trust requirement does not apply to amounts held under a Deferred Compensation Plan of a governmental employer that is not a Section 457(b) Plan. Where the trust requirement does not apply, amounts held under a Section 457 Plan must remain subject to the claims of the employer's general creditors under Code Section 457(b)(6). 5. TAXATION OF AMOUNTS RECEIVED FROM QUALIFIED PLANS Except under certain circumstances in the case of Roth IRAs or Roth accounts in Qualified plans, amounts received from Qualified Contracts or Plans generally are taxed as ordinary income under Code Section 72, to the extent that they are not treated as a tax-free recovery of after-tax contributions or other "investment in the contract." For annuity payments and other amounts received after the Annuity Commencement Date from a Qualified Contract or Plan, the tax rules for determining what portion of each amount received represents a tax-free recovery of "investment in the contract" are generally the same as for Non-Qualified Contracts, as described above. For non-periodic amounts from certain Qualified Contracts or Plans, Code Section 72(e)(8) provides special rules that generally treat a portion of each amount received as a tax-free recovery of the "investment in the contract," based on the ratio of the "investment in the contract" over the Contract Value at the time of distribution. However, in determining such a ratio, certain aggregation rules may apply and may vary, depending on the type of Qualified Contract or Plan. For instance, all Traditional IRAs owned by the same individual are generally aggregated for these purposes, but such an aggregation does not include any IRA inherited by such individual or any Roth IRA owned by such individual. In addition, penalty taxes, mandatory tax withholding or rollover rules may apply to amounts received from a Qualified Contract or Plan, as indicated below, and certain exclusions may apply to certain distributions (e.g., distributions from an eligible Government Plan to pay qualified health insurance premiums of an eligible retired public safety officer). Accordingly, you are advised to consult with a qualified tax adviser before taking or receiving any amount (including a loan) from a Qualified Contract or Plan. 6. PENALTY TAXES FOR QUALIFIED PLANS Unlike Non-Qualified Contracts, Qualified Contracts are subject to federal penalty taxes not just on premature distributions, but also on excess contributions and failures to make required minimum distributions ("RMDs"). Penalty taxes on excess contributions can vary by type of Qualified Plan and which person made the excess contribution (e.g., employer or an employee). The penalty taxes on premature distributions and failures to make timely RMDs are more uniform, and are described in more detail below. a. PENALTY TAXES ON PREMATURE DISTRIBUTIONS Code Section 72(t) imposes a penalty income tax equal to 10% of the taxable portion of a distribution from certain types of Qualified Plans that is made before the employee reaches age 59 1/2. However, this 10% penalty tax does not apply to a distribution that is either: (i) made to a beneficiary (or to the employee's estate) on or after the employee's death; 51 ------------------------------------------------------------------------------- (ii) attributable to the employee's becoming disabled under Code Section 72(m)(7); (iii) part of a series of substantially equal periodic payments (not less frequently than annually - "SEPPs") made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and a designated beneficiary ("SEPP Exception"), and for certain Qualified Plans (other than IRAs) such a series must begin after the employee separates from service; (iv) (except for IRAs) made to an employee after separation from service after reaching age 55 (or made after age 50 in the case of a qualified public safety employee separated from certain government plans); (v) (except for IRAs) made to an alternate payee pursuant to a qualified domestic relations order under Code Section 414(p) (a similar exception for IRAs in Code Section 408(d)(6) covers certain transfers for the benefit of a spouse or ex-spouse); (vi) not greater than the amount allowable as a deduction to the employee for eligible medical expenses during the taxable year; or (vii) certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty. In addition, the 10% penalty tax does not apply to a distribution from an IRA that is either: (viii) made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions are met; (ix) not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or (x) for a qualified first-time home buyer and meets the requirements of Code Section 72(t)(8). If the taxpayer avoids this 10% penalty tax by qualifying for the SEPP Exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the employee has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. For any premature distribution from a SIMPLE IRA during the first 2 years that an individual participates in a salary reduction arrangement maintained by that individual's employer under a SIMPLE Plan, the 10% penalty tax rate is increased to 25%. b. RMDS AND 50% PENALTY TAX If the amount distributed from a Qualified Contract or Plan is less than the amount of the required minimum distribution ("RMD") for the year, the participant is subject to a 50% penalty tax on the amount that has not been timely distributed. An individual's interest in a Qualified Plan generally must be distributed, or begin to be distributed, not later than the Required Beginning Date. Generally, the Required Beginning Date is April 1 of the calendar year following the later of - (i) the calendar year in which the individual attains age 70 1/2, or (ii) (except in the case of an IRA or a 5% owner, as defined in the Code) the calendar year in which a participant retires from service with the employer sponsoring a Qualified Plan that allows such a later Required Beginning Date. The entire interest of the individual must be distributed beginning no later than the Required Beginning Date over - (a) the life of the individual or the lives of the individual and a designated beneficiary (as specified in the Code), or (b) over a period not extending beyond the life expectancy of the individual or the joint life expectancy of the individual and a designated beneficiary. If an individual dies before reaching the Required Beginning Date, the individual's entire interest generally must be distributed within 5 years after the individual's death. However, this RMD rule will be deemed satisfied if distributions begin before the close of the calendar year following the individual's death to a designated beneficiary and distribution is over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). If such beneficiary is the individual's surviving spouse, distributions may be delayed until the deceased individual would have attained age 70 1/2. If an individual dies after RMDs have begun for such individual, any remainder of the individual's interest generally must be distributed at least as rapidly as under the method of distribution in effect at the time of the individual's death. The RMD rules that apply while the Contract Owner is alive do not apply with respect to Roth IRAs. The RMD rules applicable after the death of the Owner apply to all Qualified Plans, including Roth IRAs. In addition, if the Owner of a Traditional or Roth IRA dies and the Owner's surviving spouse is the sole designated beneficiary, this surviving spouse may elect to treat the Traditional or Roth IRA as his or her own. 52 ------------------------------------------------------------------------------- The RMD amount for each year is determined generally by dividing the account balance by the applicable life expectancy. This account balance is generally based upon the account value as of the close of business on the last day of the previous calendar year. RMD incidental benefit rules also may require a larger annual RMD amount, particularly when distributions are made over the joint lives of the Owner and an individual other than his or her spouse. RMDs also can be made in the form of annuity payments that satisfy the rules set forth in Regulations under the Code relating to RMDs. In addition, in computing any RMD amount based on a contract's account value, such account value must include the actuarial value of certain additional benefits provided by the contract. As a result, electing an optional benefit under a Qualified Contract may require the RMD amount for such Qualified Contract to be increased each year, and expose such additional RMD amount to the 50% penalty tax for RMDs if such additional RMD amount is not timely distributed. 7. TAX WITHHOLDING FOR QUALIFIED PLANS Distributions from a Qualified Contract or Qualified Plan generally are subject to federal income tax withholding requirements. These federal income tax withholding requirements, including any "elections out" and the rate at which withholding applies, generally are the same as for periodic and non-periodic distributions from a Non-Qualified Contract, as described above, except where the distribution is an "eligible rollover distribution" from a Qualified Plan (described below in "ROLLOVER DISTRIBUTIONS"). In the latter case, tax withholding is mandatory at a rate of 20% of the taxable portion of the "eligible rollover distribution," to the extent it is not directly rolled over to an IRA or other Eligible Retirement Plan (described below in "ROLLOVER DISTRIBUTIONS"). Payees cannot elect out of this mandatory 20% withholding in the case of such an "eligible rollover distribution." Also, special withholding rules apply with respect to distributions from non-governmental Section 457(b) Plans, and to distributions made to individuals who are neither citizens nor resident aliens of the United States. Regardless of any "election out" (or any actual amount of tax actually withheld) on an amount received from a Qualified Contract or Plan, the payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the payee's total tax liability. 8. ROLLOVER DISTRIBUTIONS The current tax rules and limits for tax-free rollovers and transfers between Qualified Plans vary according to (1) the type of transferor Plan and transferee Plan, (2) whether the amount involved is transferred directly between Plan (a "direct transfer" or a "direct rollover") or is distributed first to a participant or beneficiary who then transfers that amount back into another eligible Plan within 60 days (a "60-day rollover"), and (3) whether the distribution is made to a participant, spouse or other beneficiary. Accordingly, we advise you to consult with a qualified tax adviser before receiving any amount from a Qualified Contract or Plan or attempting some form of rollover or transfer with a Qualified Contract or Plan. For instance, generally any amount can be transferred directly from one type of Qualified Plan to the same type of Plan for the benefit of the same individual, without limit (or federal income tax), if the transferee Plan is subject to the same kinds of restrictions as the transfer or Plan and certain other conditions to maintain the applicable tax qualification are satisfied. Such a "direct transfer" between the same kinds of Plan is generally not treated as any form of "distribution" out of such a Plan for federal income tax purposes. By contrast, an amount distributed from one type of Plan into a different type of Plan generally is treated as a "distribution" out of the first Plan for federal income tax purposes, and therefore to avoid being subject to such tax, such a distribution must qualify either as a "direct rollover" (made directly to another Plan) or as a "60-day rollover." The tax restrictions and other rules for a "direct rollover" and a "60-day rollover" are similar in many ways, but if any "eligible rollover distribution" made from certain types of Qualified Plan is not transferred directly to another Plan by a "direct rollover," then it is subject to mandatory 20% withholding, even if it is later contributed to that same Plan in a "60-day rollover" by the recipient. If any amount less than 100% of such a distribution (e.g., the net amount after the 20% withholding) is transferred to another Plan in a "60-day rollover", the missing amount that is not rolled over remains subject to normal income tax plus any applicable penalty tax. Under Code Sections 402(f)(2)(A) and 3405(c)(3) an "eligible rollover distribution" (which is both eligible for rollover treatment and subject to 20% mandatory withholding absent a "direct rollover") is generally any distribution to an employee of any portion (or all) of the balance to the employee's credit in any of the following types of "Eligible Retirement Plan": (1) a Qualified Plan under Code Section 401(a) ("Qualified 401(a) Plan"), (2) a qualified annuity plan under Code Section 403(a) ("Qualified Annuity Plan"), (3) a TSA under Code Section 403(b), or (4) a governmental Section 457(b) Plan. However, an "eligible rollover distribution" does not include any distribution that is either - a. an RMD amount; b. one of a series of substantially equal periodic payments (not less frequently than annually) made either (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary, or (ii) for a specified period of 10 years or more; or 53 ------------------------------------------------------------------------------- c. any distribution made upon hardship of the employee. Before making an "eligible rollover distribution," a Plan administrator generally is required under Code Section 402(f) to provide the recipient with advance written notice of the "direct rollover" and "60-day rollover" rules and the distribution's exposure to the 20% mandatory withholding if it is not made by "direct rollover." Generally, under Code Sections 402(c), 403(b)(8) and 457 (e)(16), a "direct rollover" or a "60-day rollover" of an "eligible rollover distribution" can be made to a Traditional IRA or to another Eligible Retirement Plan that agrees to accept such a rollover. However, the maximum amount of an "eligible rollover distribution" that can qualify for a tax-free "60-day rollover" is limited to the amount that otherwise would be includable in gross income. By contrast, a "direct rollover" of an "eligible rollover distribution" can include after-tax contributions as well, if the direct rollover is made either to a Traditional IRA or to another form of Eligible Retirement Plan that agrees to account separately for such a rollover, including accounting for such after-tax amounts separately from the otherwise taxable portion of this rollover. Separate accounting also is required for all amounts (taxable or not) that are rolled into a governmental Section 457(b) Plan from either a Qualified Section 401(a) Plan, Qualified Annuity Plan, TSA or IRA. These amounts, when later distributed from the governmental Section 457(b) Plan, are subject to any premature distribution penalty tax applicable to distributions from such a "predecessor" Qualified Plan. Rollover rules for distributions from IRAs under Code Sections 408(d)(3) and 408A(d)(3) also vary according to the type of transferor IRA and type of transferee IRA or other Plan. For instance, generally no tax-free "direct rollover" or "60-day rollover" can be made between a "NonRoth IRA" (Traditional, SEP or SIMPLE IRA) and a Roth IRA, and a transfer from NonRoth IRA to a Roth IRA, or a "conversion" of a NonRoth IRA to a Roth IRA, is subject to special rules. In addition, generally no tax-free "direct rollover" or "60-day rollover" can be made between an "inherited IRA" (NonRoth or Roth) for a beneficiary and an IRA set up by that same individual as the original owner. Generally, any amount other than an RMD distributed from a Traditional or SEP IRA is eligible for a "direct rollover" or a "60-day rollover" to another Traditional IRA for the same individual. Similarly, any amount other than an RMD distributed from a Roth IRA is generally eligible for a "direct rollover" or a "60-day rollover" to another Roth IRA for the same individual. However, in either case such a tax-free 60-day rollover is limited to 1 per year (365-day period); whereas no 1-year limit applies to any such "direct rollover." Similar rules apply to a "direct rollover" or a "60-day rollover" of a distribution from a SIMPLE IRA to another SIMPLE IRA or a Traditional IRA, except that any distribution of employer contributions from a SIMPLE IRA during the initial 2-year period in which the individual participates in the employer's SIMPLE Plan is generally disqualified (and subject to the 25% penalty tax on premature distributions) if it is not rolled into another SIMPLE IRA for that individual. Amounts other than RMDs distributed from a Traditional or SEP IRA (or SIMPLE IRA after the initial 2-year period) also are eligible for a "direct rollover" or a "60-day rollover" to an Eligible Retirement Plan (e.g., a TSA) that accepts such a rollover, but any such rollover is limited to the amount of the distribution that otherwise would be includable in gross income (i.e., after-tax contributions are not eligible). Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a nonspouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be recontributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a non-spouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be re-contributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. Other rules and exceptions may apply, so please consult with a qualified tax adviser. 54 ------------------------------------------------------------------------------- TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION GENERAL INFORMATION Safekeeping of Assets Experts Non-Participating Misstatement of Age or Sex Principal Underwriter Additional Payments PERFORMANCE RELATED INFORMATION Total Return for all Sub-Accounts Yield for Sub-Accounts Money Market Sub-Accounts Additional Materials Performance Comparisons ACCUMULATION UNIT VALUES FINANCIAL STATEMENTS
APP A-1 ------------------------------------------------------------------------------- APPENDIX A - EXAMPLES TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- STANDARD DEATH BENEFIT APP A-2 THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S APP A-2 LIFETIME INCOME BUILDER PORTFOLIOS THE HARTFORD'S PRINCIPAL FIRST APP A-16 THE HARTFORD'S LIFETIME INCOME FOUNDATION APP A-17 THE HARTFORD'S LIFETIME INCOME BUILDER II APP A-21 MAV PLUS APP A-26
APP A-2 ------------------------------------------------------------------------------- STANDARD DEATH BENEFIT EXAMPLE 1 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $8,000, - Your Contract Value in the fourth year immediately before your Surrender was $109,273, - On the day we calculate the Death Benefit, your Contract Value was $117,403. The adjustment to your total Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. The partial Surrender of $8,000 is less than 10% of Premium Payments. Your adjusted total Premium Payments is $92,000. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $117,403. EXAMPLE 2 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we calculate the Death Benefit, your Contract Value was $120,000. The adjustments to your Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for dollar adjustment to get $140,000. The proportional factor is 1 - ($50,000/$140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $120,000. THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
APP A-3 ------------------------------------------------------------------------------- EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 5% 5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3 (SINGLE LIFE), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $105,500. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 LIFETIME BENEFIT PAYMENT $6,330 $6,300 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $330 $300 - Remaining for Contract Year - Remaining for Contract Year CONTRACT VALUE AFTER THE WITHDRAWAL $99,000 $99,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
APP A-4 ------------------------------------------------------------------------------- EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 4.5% 4.5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5 (JOINT/SPOUSAL), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE CONTRACT YEAR IS $110,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $111,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 LIFETIME BENEFIT PAYMENT $6,105 $6,050 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $105 $50 - Remaining for Contract Year - Remaining for Contract Year CONTRACT VALUE AFTER THE WITHDRAWAL $105,000 $105,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
(1) The Withdrawal Percentage will remain for the duration of your Contract unless an automatic Payment Base increase occurs on a future anniversary and a new Withdrawal Percent age band is applicable; if no automatic Payment Base increase occurs on a future anniversary where a new Withdrawal Percent age band is applicable, your Withdrawal Percent will remain as is. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
APP A-5 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,950 $4,950 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $841.50 $1,138.50 - Rider charge of 0.85% multiplied by - Rider charge of 1.15% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $105,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
APP A-6 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($105,000) divided by your current the rider charge being taken, or Payment Base ($99,000), less 1 - Your current Payment Base - Resulting in 0.06%, subject to minimum of 0% and maximum of 10% THRESHOLD $5,250 $5,250 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $892.50 $1,207.50 - Rider charge of 0.85% multiplied by - Rider charge of 1.15% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $4,500 $4,500 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
APP A-7 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 4.5%(1) 4.5%(1) THRESHOLD $3,500 $3,500 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,455 $4,455 - 4.5% of your Payment Base - 4.5% of your Payment Base RIDER CHARGE $841.50 $1,138.50 - Rider charge of 0.85% multiplied by - Rider charge of 1.15% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $121,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,950 $4,950 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
APP A-8 ------------------------------------------------------------------------------- VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $6,050 $5,950 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
EXAMPLE 11: ASSUME THE SAME FACTS AS EXAMPLE 9 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $125,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,455 $4,455 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $5,625 $5,355 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
APP A-9 ------------------------------------------------------------------------------- EXAMPLE 12: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
EXAMPLE 13: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $2,750 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
APP A-10 ------------------------------------------------------------------------------- EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $49,323 $49,038 - Proportional reduction: - Proportional reduction: 1-($700/($52,000-$300) 1-($1000/$52,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $46,068 $46,096 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
APP A-11 ------------------------------------------------------------------------------- EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 13 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 WITHDRAWAL PERCENT 5.5% 5.5% LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $48,230 $47,959 - Proportional reduction: - Proportional reduction: 1-($1,725/($49,000-$275) 1-($2,000/$49,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $45,312 $45,321 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
APP A-12 ------------------------------------------------------------------------------- VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $5,500 $5,750 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 17: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
VALUES AFTER THE CONTRACT ANNIVERSARY: PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $4,950 $5,175 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
APP A-13 ------------------------------------------------------------------------------- EXAMPLE 18: SPOUSAL CONTRACT CONTINUATION (SINGLE LIFE) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTRACT CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Equal to the Contract Value on date of - Equal to Contract Value on date of continuation continuation WITHDRAWAL PERCENTAGE 6% 6% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $9,000 $9,000 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by the Payment Base on date of continuation Payment Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
EXAMPLE 19: SPOUSAL CONTRACT CONTINUATION (JOINT/SPOUSAL) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTRACT CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Greater of Contract Value or Payment - Greater of Contract Value or Payment Base on date of continuation Base on date of continuation WITHDRAWAL PERCENTAGE 5.5% 5.5% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $8,250 $8,250 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by greater of the Contract Value or Payment Payment Base on date of continuation Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
APP A-14 ------------------------------------------------------------------------------- EXAMPLE 20: WITHDRAWAL PERCENT INCREASE; ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 4 (SINGLE LIFE). YOUR WITHDRAWAL PERCENT IS 6%, WHICH WAS BASED ON YOUR AGE (70) AT THE TIME OF FIRST WITHDRAWAL. YOUR LIFETIME BENEFIT PAYMENT PRIOR TO THE CONTRACT ANNIVERSARY IS $6,300. YOU ARE NOW AGE 75 AND YOUR ANNIVERSARY IS BEING PROCESSED. YOUR CONTRACT VALUE ON ANNIVERSARY IS $117,000. VALUES PRIOR TO THE ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $6,300 $6,300 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $115,500 $117,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($117,000) divided by your current the rider charge being taken, or Payment Base ($105,000), less 1 - Your current Payment Base - Resulting in 0.11%, capped at 10%. Subject to minimum of 0% and maximum of 10% WITHDRAWAL PERCENT 6.5% 6.5% - Due to the automatic increase and - Due to the automatic increase and client reaching a new age band, the client reaching a new age band, the Withdrawal Percent has increased Withdrawal Percent has increased LIFETIME BENEFIT PAYMENT $7,507.50 $7,605 RIDER CHARGE $977.50 $1,345.50 - Rider charge of 0.85% multiplied by - Rider charge of 1.15% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 21 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,000 (within rider limit) New Contract Value = $2,000 - Minimum Amount Rule is reached as remaining Contract Value is reduced below one Lifetime Benefit Payment and the Partial Surrender was within the rider limit - Contract Value is transferred to approved investment program - We will no longer accept subsequent Premium Payments - We will begin to automatically pay the annual Lifetime Benefit Payment via the Automatic Income Program. The Lifetime Benefit Payment will be paid out of our General Account - The payout of the Lifetime Benefit Payment will no longer reduce the Contract Value, however, the Death Benefit will continue to be reduced - We will waive the Annual Maintenance Fee and rider fee - Benefit Increases will no longer be applied NOTE: If the Contract Value is reduced below one Lifetime Benefit Payment on any Contract Anniversary due to performance the above scenario would occur. APP A-15 ------------------------------------------------------------------------------- EXAMPLE 22 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,800 (exceeds rider limit) New Contract Value = $2,000 - Minimum Account Rule is reached as remaining Contract Value is reduced below the Minimum Account Rule under the contract, $500 (varies by state) and the partial Surrender exceeded the rider limit - Contract is fully liquidated EXAMPLE 23: AUTOMATIC PAYMENT BASE INCREASE TO RELEVANT COVERED LIFE ATTAINED AGE 90. ASSUME THAT YOU SELECT A SINGLE LIFE OPTION. YOUR WITHDRAWAL PERCENTAGE IS 7.5%, WHICH IS BASED ON YOUR AGE (85) AT THE TIME OF YOUR FIRST WITHDRAWAL. YOUR LIFETIME BENEFIT PAYMENT PRIOR TO CONTRACT ANNIVERSARY IS $7,500. YOU ARE NOW AGE 90 AND YOUR ANNIVERSARY IS BEING PROCESSED. YOUR CONTRACT VALUE ON YOUR ANNIVERSARY IS $120,000. VALUES PRIOR TO ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 WITHDRAWAL PERCENTAGE 7.5% 7.5% LIFETIME BENEFIT PAYMENT $7,500 $7,500 GUARANTEED MINIMUM DEATH BENEFIT $92,500 $92,500
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $120,000 The ratio is the Contract Value Greater of the Contract Value prior to ($120,000) divided by current Payment the rider charge being taken, or Your Base ($100,00), less 1 results in .20%, Payment Base capped at 10% WITHDRAWAL PERCENTAGE 8% 8% Due to the automatic increase and client Due to the automatic increase and client reaching a new age band, the Withdrawal reaching a new age band, the Withdrawal Percentage has increased Percentage has increased LIFETIME BENEFIT PAYMENT $8,800 $9,600 RIDER CHARGE $935 $1,380 Rider charge of 0.85% multiplied by your Rider charge of 1.15% multiplied by your current Payment Base current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $92,500 $92,500 No change due to anniversary processing No change due to anniversary processing
APP A-16 ------------------------------------------------------------------------------- EXAMPLE 24: DEFERRAL ILLUSTRATION. ASSUME THAT ON YOUR BIRTHDAY IN SEPTEMBER 2008 YOU ARE 60. YOU PURCHASE THE CONTRACT IN NOVEMBER 2008 AND SELECT THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS WITH THE SINGLE LIFE OPTION. ASSUME NO GROWTH IN CONTRACT VALUE.
NO PARTIAL SURRENDERS IN PARTIAL SURRENDER IN FEATURE FIRST 5 YEARS OF THE RIDER SECOND YEAR OF THE RIDER ------------------------------------------------------------------------------------------------------------------------------- WITHDRAWAL PERCENTAGE AT ISSUE 5% 5% PAYMENT BASE AT ISSUE $100,000 $100,000 LIFETIME BENEFIT PAYMENT AT ISSUE $5,000 $5,000 WITHDRAWAL PERCENTAGE ON BIRTHDAY IN Increased to 5.5% Remains at 5% SEPTEMBER 2013 WHEN RELEVANT COVERED LIFE IS AGE 65 PAYMENT BASE ON BIRTHDAY $100,000 $100,000 No change due to birthday No change due to birthday LIFETIME BENEFIT PAYMENT ON BIRTHDAY Increased to $5,500 Remains at $5,000 ANNIVERSARY IN NOVEMBER 2013 - CONTRACT $100,000 $100,000 VALUE IS LESS THAN CURRENT PAYMENT BASE, SO THERE IS NO CHANGE TO THE PAYMENT BASE WITHDRAWAL PERCENTAGE 5.5% 5% LIFETIME BENEFIT PAYMENT $5,500 $5,000
THE HARTFORD'S PRINCIPAL FIRST EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S PRINCIPAL FIRST WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $7,000, which is 7% of your Benefit Amount. EXAMPLE 2: IF YOU MAKE AN ADDITIONAL PREMIUM PAYMENT OF $50,000, THEN - Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000). - Your Benefit Payment is $10,500, which is your prior Benefit Payment ($7,000) plus 7% of your additional Premium Payment ($3,500). EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU TAKE THE MAXIMUM BENEFIT PAYMENT BEFORE THE END OF THE FIRST CONTRACT YEAR, THEN - Your Benefit Amount becomes $93,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($7,000). - Your Benefit Payment for the next year remains $7,000, because you did not take more than your maximum Benefit Payment ($7,000). EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $7,000. APP A-17 ------------------------------------------------------------------------------- EXAMPLE 5: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $80,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your "New Benefit Amount" becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the "old" Benefit Payment ($7,000) to 7% of the New Benefit Amount ($2,100). Your Benefit Payment becomes the lower of those two values, or $2,100. EXAMPLE 6: IF YOU ELECT TO "STEP UP" THE HARTFORD'S PRINCIPAL FIRST AFTER THE 5TH YEAR, ASSUMING YOU HAVE MADE NO WITHDRAWALS, AND YOUR CONTRACT VALUE AT THE TIME OF STEP UP IS $200,000, THEN - We recalculate your Benefit Amount to equal your Contract Value, which is $200,000. - Your new Benefit Payment is equal to 7% of your new Benefit Amount, or $14,000. THE HARTFORD'S LIFETIME INCOME FOUNDATION This Optional Withdrawal Benefit is closed to new investors if The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios is approved in your state. EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. APP A-18 ------------------------------------------------------------------------------- - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.75% of the Payment Base. - $99,000 x 0.75% = $742.50, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. APP A-19 ------------------------------------------------------------------------------- AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.75% of the Payment Base. - $99,000 x 0.75% = $742.50, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP A-20 ------------------------------------------------------------------------------- EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/ Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP A-21 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER II EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. APP A-22 ------------------------------------------------------------------------------- EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = - .05 subject to the minimum of 0%. - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.75% of the Payment Base after the automatic increase calculation. - $99,000 x 0.75% = $742.50, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = - .05 subject to the minimum of 0%. APP A-23 ------------------------------------------------------------------------------- - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.75% of the Payment Base after the automatic increase calculation. - $99,000 x 0.75% = $742.50, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. APP A-24 ------------------------------------------------------------------------------- - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/ Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP A-25 ------------------------------------------------------------------------------- EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $110,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($110,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($110,000/$100,000) - 1 = .10 subject to the maximum of 10%. - Your Payment Base is $110,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $5,500, which is your new Payment Base multiplied by 5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $105,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($105,000/$100,000) - 1 = .05 subject to the maximum of 10%. - Your Payment Base is $105,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $4,725, which is your new Payment Base multiplied by 4.5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. EXAMPLE 17: SPOUSAL CONTRACT CONTINUATION On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. The values for the rider are impacted as follows: Payment Base = $150,000 (greater of Contract Value or Payment Base on date of continuation) Withdrawal Percent = existing Withdrawal Percent if partial Surrender have been taken, or else it is set using the remaining Spouse's attained age on the Contract Anniversary prior to the first partial Surrender (for this example we will say it is 6%). Lifetime Benefit Payment = $9,000 (Withdrawal Percent x greater of Payment Base or Contract Value on date of continuation) Death Benefit = $150,000 (Contract Value on date of continuation) Maximum Contract Value (LIB II Only) = $150,000 (greater of Contract Value or Payment Base on date of continuation) APP A-26 ------------------------------------------------------------------------------- MAV PLUS EXAMPLE 1 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the standard Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $8,000, - Your Contract Value in your fourth Contract Year immediately before your partial Surrender was $109,273, To determine the Death Benefit to be paid we compare the following values, the greatest resulting values is the Death Benefit: - CONTRACT VALUE on the date we receive due proof of death - Assume on the day we receive proof of Death, your Contract Value was $117,403, - TOTAL PREMIUM PAYMENTS adjusted for partial Surrenders (See Example 1 under the standard Death Benefit for details of calculation.) - Your total Premium Payment was $100,000, since the partial Surrender was less than 10% of premiums the Premium Payment is reduced dollar for dollar. - The Premium Payment is $92,000 - THE MAXIMUM ANNIVERSARY VALUE adjusted for any partial Surrenders - Assume your Maximum Anniversary Value (MAV) was $114,000, since the partial Surrender was less than 10% of premiums the MAV is reduced dollar for dollar. - The MAV is $106,000 - THE EARNINGS PROTECTION BENEFIT ADJUSTED FOR ANY PARTIAL SURRENDERS ADJUSTMENT FOR PARTIAL SURRENDERS FOR EARNINGS PROTECTION BENEFIT To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the partial Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$109,273 - $100,000 - $0 + $0 = $9,273] Since the Contract gain at the time of partial Surrender [$9,273] exceeds the partial Surrender [$8,000], there is no adjustment for the partial Surrender in this case. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$117,403], - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$0], So the Contract gain equals $17,403. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($0), which equals $100,000. The cap is 200% of $100,000, which is $200,000. APP A-27 ------------------------------------------------------------------------------- MAV PLUS DEATH BENEFIT In this situation the cap does not apply, so we take the Contract Value on the date we receive proof of death and add 40% of gain [$117,403 + 40% (17,403)] which totals $124,364. This is the greatest of the four values compared, and so is the Death Benefit. EXAMPLE 2 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the standard Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your partial Surrender was $150,000, To determine the Death Benefit to be paid we compare the following values, the greatest resulting values is the Death Benefit: - CONTRACT VALUE on the date we receive due proof of death - Assume on the day we receive proof of Death, your Contract Value was $120,000, - TOTAL PREMIUM PAYMENTS adjusted for partial Surrenders (See Example 1 under the standard Death Benefit for details of calculation.) - Total Premium Payments was $100,000 - ADJUSTMENT FOR PARTIAL SURRENDERS FOR PREMIUM PAYMENTS The adjustment to your Premium Payments for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. The Premium Payment is adjusted for dollar for dollar Surrenders is $100,000 - $10,000 = $90,000. Remaining Surrenders equal $50,000. This amount will reduce Premium Payments proportionally. Contract Value immediately before Surrender is $150,000 minus $10,000 = $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted Premium Payment of $57,857. - The Premium Payment is $57,857 - THE MAXIMUM ANNIVERSARY VALUE adjusted for any partial Surrenders - Assume the Maximum Anniversary Value was $140,000 - ADJUSTMENT FOR PARTIAL SURRENDERS FOR MAXIMUM ANNIVERSARY VALUE The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Maximum Anniversary Value adjusted for dollar for dollar Surrenders is $140,000 - $10,000 = $130,000. Remaining Surrenders equal $50,000. This amount will reduce the Maximum Anniversary Value proportionally. Contract Value immediately before Surrender is $150,000 minus $10,000 = $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. - The MAV is $83,571 ADJUSTMENT FOR PARTIAL SURRENDERS FOR EARNINGS PROTECTION BENEFIT To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a partial Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$150,000 - $100,000 - $0 + $0 = $50,000] Since the partial Surrender [$60,000] exceeds the Contract gain at the time of partial Surrender [$50,000], the adjustment for the partial Surrender is the difference, or $10,000. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$120,000], APP A-28 ------------------------------------------------------------------------------- - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$10,000], So the Contract gain equals $30,000. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($10,000), which equals $90,000. The cap is 200% of $90,000, which is $180,000. MAV PLUS DEATH BENEFIT In this situation the cap does not apply, so we take the Contract Value on the date we receive proof of death and add 40% of gain [$120,000 + 40% ($12,000)] which totals $132,000. This is the greatest of the four values compared, and so is the Death Benefit. APP B-1 ------------------------------------------------------------------------------- APPENDIX B - ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in the Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The tables below show only the highest and lowest possible Accumulation Unit Value, assuming you select no optional benefits or assuming you select all optional benefits. A table showing all classes of Accumulation Unit Values corresponding to all combinations of optional benefits is shown in the Statement of Additional Information, which you may obtain free of charge by contacting us. HARTFORD LIFE INSURANCE COMPANY CORE
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.435 $9.855 $9.048 $7.361 $10.403 Accumulation Unit Value at end of period $10.565 $9.435 $9.855 $9.048 $7.361 Number of Accumulation Units outstanding at end of period (in thousands) 120 132 145 80 28 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.047 $13.772 $12.777 $10.505 - Accumulation Unit Value at end of period $14.456 $13.047 $13.772 $12.777 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.916 $8.341 $7.500 $5.454 $10.464 Accumulation Unit Value at end of period $7.870 $6.916 $8.341 $7.500 $5.454 Number of Accumulation Units outstanding at end of period (in thousands) 45 50 52 50 41 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.184 $16.069 $14.602 $10.731 - Accumulation Unit Value at end of period $14.848 $13.184 $16.069 $14.602 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $5.592 $7.028 $6.823 $5.142 $10.788 Accumulation Unit Value at end of period $6.306 $5.592 $7.028 $6.823 $5.142 Number of Accumulation Units outstanding at end of period (in thousands) 492 483 447 423 245 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.179 $14.199 $13.931 $10.610 - Accumulation Unit Value at end of period $12.476 $11.179 $14.199 $13.931 - Number of Accumulation Units outstanding at end of period (in thousands) 2 1 1 1 - ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.645 $11.796 $9.436 $6.697 $10.797 Accumulation Unit Value at end of period $12.455 $10.645 $11.796 $9.436 $6.697 Number of Accumulation Units outstanding at end of period (in thousands) 46 47 41 33 22 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.818 $18.833 $15.223 $10.919 - Accumulation Unit Value at end of period $19.471 $16.818 $18.833 $15.223 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-2 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.017 $8.437 $7.667 $6.414 $10.567 Accumulation Unit Value at end of period $9.148 $8.017 $8.437 $7.667 $6.414 Number of Accumulation Units outstanding at end of period (in thousands) 9 9 9 7 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.618 $13.418 $12.323 $10.418 - Accumulation Unit Value at end of period $14.247 $12.618 $13.418 $12.323 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS ASSET ALLOCATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.777 $9.801 $8.850 $7.251 $10.073 Accumulation Unit Value at end of period $11.182 $9.777 $9.801 $8.850 $7.251 Number of Accumulation Units outstanding at end of period (in thousands) 362 404 397 374 210 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.436 $13.610 $12.420 $10.283 - Accumulation Unit Value at end of period $15.205 $13.436 $13.610 $12.420 - Number of Accumulation Units outstanding at end of period (in thousands) 110 66 50 42 - AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.074 $9.298 $8.408 $6.680 $10.221 Accumulation Unit Value at end of period $10.174 $9.074 $9.298 $8.408 $6.680 Number of Accumulation Units outstanding at end of period (in thousands) 135 151 154 148 55 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.640 $14.126 $12.908 $10.363 - Accumulation Unit Value at end of period $15.134 $13.640 $14.126 $12.908 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.815 $10.346 $9.869 $8.904 $10.017 Accumulation Unit Value at end of period $11.216 $10.815 $10.346 $9.869 $8.904 Number of Accumulation Units outstanding at end of period (in thousands) 1,212 1,179 1,261 1,154 616 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.180 $11.775 $11.351 $10.349 - Accumulation Unit Value at end of period $12.500 $12.180 $11.775 $11.351 - Number of Accumulation Units outstanding at end of period (in thousands) 8 11 8 7 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS ASSET ALLOCATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-3 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.256 $10.930 $10.556 $9.767 $9.982 Accumulation Unit Value at end of period $11.765 $11.256 $10.930 $10.556 $9.767 Number of Accumulation Units outstanding at end of period (in thousands) 118 120 130 119 87 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.921 $11.698 $11.417 $10.676 - Accumulation Unit Value at end of period $12.330 $11.921 $11.698 $11.417 - Number of Accumulation Units outstanding at end of period (in thousands) - 1 - - - AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.517 $9.096 $8.268 $6.007 $10.078 Accumulation Unit Value at end of period $9.866 $8.517 $9.096 $8.268 $6.007 Number of Accumulation Units outstanding at end of period (in thousands) 371 407 460 454 313 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.492 $15.641 $14.366 $10.548 - Accumulation Unit Value at end of period $16.612 $14.492 $15.641 $14.366 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.775 $9.784 $8.893 $6.351 $10.058 Accumulation Unit Value at end of period $10.589 $8.775 $9.784 $8.893 $6.351 Number of Accumulation Units outstanding at end of period (in thousands) 92 106 113 100 58 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.221 $16.024 $14.718 $10.622 - Accumulation Unit Value at end of period $16.983 $14.221 $16.024 $14.718 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.699 $9.673 $8.024 $5.054 $10.088 Accumulation Unit Value at end of period $8.960 $7.699 $9.673 $8.024 $5.054 Number of Accumulation Units outstanding at end of period (in thousands) 310 318 293 252 127 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.641 $19.859 $16.647 $10.596 - Accumulation Unit Value at end of period $18.014 $15.641 $19.859 $16.647 - Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-4 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.821 $9.360 $8.007 $5.832 $10.075 Accumulation Unit Value at end of period $10.241 $8.821 $9.360 $8.007 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 1,824 1,953 1,984 1,818 1,172 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.138 $16.233 $14.033 $10.329 - Accumulation Unit Value at end of period $17.392 $15.138 $16.233 $14.033 - Number of Accumulation Units outstanding at end of period (in thousands) 9 11 8 7 - AMERICAN FUNDS GROWTH-INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.838 $9.143 $8.332 $6.447 $10.187 Accumulation Unit Value at end of period $10.226 $8.838 $9.143 $8.332 $6.447 Number of Accumulation Units outstanding at end of period (in thousands) 956 1,023 1,064 995 594 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.648 $14.268 $13.140 $10.275 - Accumulation Unit Value at end of period $15.627 $13.648 $14.268 $13.140 - Number of Accumulation Units outstanding at end of period (in thousands) 6 8 6 5 - AMERICAN FUNDS INTERNATIONAL HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.615 $8.990 $8.514 $6.039 $10.059 Accumulation Unit Value at end of period $8.842 $7.615 $8.990 $8.514 $6.039 Number of Accumulation Units outstanding at end of period (in thousands) 1,795 1,832 1,560 1,301 765 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.142 $15.679 $15.005 $10.756 - Accumulation Unit Value at end of period $15.100 $13.142 $15.679 $15.005 - Number of Accumulation Units outstanding at end of period (in thousands) 8 9 6 4 - AMERICAN FUNDS NEW WORLD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.622 $10.179 $8.769 $5.953 $10.052 Accumulation Unit Value at end of period $10.002 $8.622 $10.179 $8.769 $5.953 Number of Accumulation Units outstanding at end of period (in thousands) 163 195 208 196 138 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.717 $17.559 $15.286 $10.487 - Accumulation Unit Value at end of period $16.896 $14.717 $17.559 $15.286 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - FIDELITY VIP CONTRAFUND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.429 $9.821 $8.505 $6.357 $10.615 Accumulation Unit Value at end of period $10.815 $9.429 $9.821 $8.505 $6.357 Number of Accumulation Units outstanding at end of period (in thousands) 459 542 569 566 378 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.682 $15.454 $13.524 $10.215 - Accumulation Unit Value at end of period $16.664 $14.682 $15.454 $13.524 - Number of Accumulation Units outstanding at end of period (in thousands) 9 9 8 - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- AMERICAN FUNDS GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GROWTH-INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS INTERNATIONAL HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS NEW WORLD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP CONTRAFUND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-5 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.609 $10.007 $8.588 $6.404 $10.300 Accumulation Unit Value at end of period $11.601 $9.609 $10.007 $8.588 $6.404 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 4 5 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.344 $16.148 $14.005 $10.554 - Accumulation Unit Value at end of period $18.332 $15.344 $16.148 $14.005 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.946 $9.061 $7.407 $5.861 $10.336 Accumulation Unit Value at end of period $10.107 $8.946 $9.061 $7.407 $5.861 Number of Accumulation Units outstanding at end of period (in thousands) 23 24 22 31 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.900 $15.252 $12.600 $10.075 - Accumulation Unit Value at end of period $16.658 $14.900 $15.252 $12.600 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - FIDELITY VIP MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.935 $11.285 $8.887 $6.439 $10.258 Accumulation Unit Value at end of period $11.240 $9.935 $11.285 $8.887 $6.439 Number of Accumulation Units outstanding at end of period (in thousands) 430 456 439 419 247 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.694 $18.015 $14.337 $10.498 - Accumulation Unit Value at end of period $17.571 $15.694 $18.015 $14.337 - Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 1 - FIDELITY VIP VALUE STRATEGIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.306 $10.360 $8.303 $5.350 $10.464 Accumulation Unit Value at end of period $11.678 $9.306 $10.360 $8.303 $5.350 Number of Accumulation Units outstanding at end of period (in thousands) 20 21 20 15 9 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.107 $20.370 $16.498 $10.743 - Accumulation Unit Value at end of period $22.485 $18.107 $20.370 $16.498 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP VALUE STRATEGIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-6 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.237 $10.901 $9.508 $7.256 $10.895 Accumulation Unit Value at end of period $11.044 $10.237 $10.901 $9.508 $7.256 Number of Accumulation Units outstanding at end of period (in thousands) 24 29 30 21 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.724 $14.769 $13.018 $10.039 - Accumulation Unit Value at end of period $14.652 $13.724 $14.769 $13.018 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.901 $10.792 $9.710 $7.263 $10.510 Accumulation Unit Value at end of period $12.118 $10.901 $10.792 $9.710 $7.263 Number of Accumulation Units outstanding at end of period (in thousands) 1,439 1,521 1,493 1,451 853 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.550 $15.557 $14.144 $10.691 - Accumulation Unit Value at end of period $17.106 $15.550 $15.557 $14.144 - Number of Accumulation Units outstanding at end of period (in thousands) 20 22 23 7 - FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.736 $11.309 $8.936 $7.012 $10.781 Accumulation Unit Value at end of period $12.539 $10.736 $11.309 $8.936 $7.012 Number of Accumulation Units outstanding at end of period (in thousands) 100 108 107 98 66 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.760 $16.777 $13.397 $10.623 - Accumulation Unit Value at end of period $18.215 $15.760 $16.777 $13.397 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.810 $11.518 $9.147 $6.458 $10.710 Accumulation Unit Value at end of period $11.828 $10.810 $11.518 $9.147 $6.458 Number of Accumulation Units outstanding at end of period (in thousands) 36 42 44 48 14 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.307 $17.558 $14.091 $10.053 - Accumulation Unit Value at end of period $17.655 $16.307 $17.558 $14.091 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.004 $11.863 $10.834 $8.740 $10.189 Accumulation Unit Value at end of period $13.357 $12.004 $11.863 $10.834 $8.740 Number of Accumulation Units outstanding at end of period (in thousands) 827 846 903 844 464 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.969 $13.951 $12.875 $10.495 - Accumulation Unit Value at end of period $15.381 $13.969 $13.951 $12.875 - Number of Accumulation Units outstanding at end of period (in thousands) 12 12 11 3 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-7 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- HARTFORD BALANCED HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.353 $10.292 $9.293 $7.223 $10.420 Accumulation Unit Value at end of period $11.453 $10.353 $10.292 $9.293 $7.223 Number of Accumulation Units outstanding at end of period (in thousands) 130 103 97 79 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.388 $14.454 $13.190 $10.359 - Accumulation Unit Value at end of period $15.751 $14.388 $14.454 $13.190 - Number of Accumulation Units outstanding at end of period (in thousands) - - - 2 - HARTFORD CAPITAL APPRECIATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.460 $9.670 $8.405 $5.842 $10.587 Accumulation Unit Value at end of period $9.888 $8.460 $9.670 $8.405 $5.842 Number of Accumulation Units outstanding at end of period (in thousands) 5,204 5,702 5,431 4,937 2,797 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.653 $16.925 $14.865 $10.442 - Accumulation Unit Value at end of period $16.946 $14.653 $16.925 $14.865 - Number of Accumulation Units outstanding at end of period (in thousands) 44 51 55 37 - HARTFORD DISCIPLINED EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.546 $9.556 $8.485 $6.838 $10.256 Accumulation Unit Value at end of period $11.089 $9.546 $9.556 $8.485 $6.838 Number of Accumulation Units outstanding at end of period (in thousands) 478 534 508 445 262 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.104 $14.268 $12.802 $10.426 - Accumulation Unit Value at end of period $16.212 $14.104 $14.268 $12.802 - Number of Accumulation Units outstanding at end of period (in thousands) 4 4 3 3 - HARTFORD DIVIDEND AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.862 $9.857 $8.816 $7.160 $10.490 Accumulation Unit Value at end of period $11.064 $9.862 $9.857 $8.816 $7.160 Number of Accumulation Units outstanding at end of period (in thousands) 3,396 3,897 3,929 3,461 1,739 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.803 $13.940 $12.600 $10.342 - Accumulation Unit Value at end of period $15.323 $13.803 $13.940 $12.600 - Number of Accumulation Units outstanding at end of period (in thousands) 44 40 41 36 - HARTFORD GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.928 $8.146 $7.220 $5.389 $10.515 Accumulation Unit Value at end of period $8.443 $6.928 $8.146 $7.220 $5.389 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 5 5 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.125 $15.596 $13.968 $10.538 - Accumulation Unit Value at end of period $15.829 $13.125 $15.596 $13.968 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- HARTFORD BALANCED HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD CAPITAL APPRECIATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD DISCIPLINED EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD DIVIDEND AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-8 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- HARTFORD GLOBAL RESEARCH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.887 $9.920 $8.658 $6.168 $10.484 Accumulation Unit Value at end of period $10.391 $8.887 $9.920 $8.658 $6.168 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.629 $16.502 $14.555 $10.479 - Accumulation Unit Value at end of period $16.926 $14.629 $16.502 $14.555 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.255 $10.293 $8.731 $6.586 $10.650 Accumulation Unit Value at end of period $10.823 $9.255 $10.293 $8.731 $6.586 Number of Accumulation Units outstanding at end of period (in thousands) 21 21 27 16 22 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.167 $15.922 $13.648 $10.403 - Accumulation Unit Value at end of period $16.394 $14.167 $15.922 $13.648 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.098 $8.998 $7.750 $6.055 $10.186 Accumulation Unit Value at end of period $10.145 $8.098 $8.998 $7.750 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 1,216 1,368 1,320 1,147 585 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.665 $15.345 $13.355 $10.544 - Accumulation Unit Value at end of period $16.941 $13.665 $15.345 $13.355 - Number of Accumulation Units outstanding at end of period (in thousands) 5 6 4 2 - HARTFORD HIGH YIELD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.485 $13.042 $11.370 $7.652 $10.359 Accumulation Unit Value at end of period $15.223 $13.485 $13.042 $11.370 $7.652 Number of Accumulation Units outstanding at end of period (in thousands) 202 193 156 91 20 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $17.737 $17.336 $15.272 $10.386 - Accumulation Unit Value at end of period $19.814 $17.737 $17.336 $15.272 - Number of Accumulation Units outstanding at end of period (in thousands) 2 1 1 - - HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.914 $9.315 $8.239 $6.251 $10.415 Accumulation Unit Value at end of period $9.394 $7.914 $9.315 $8.239 $6.251 Number of Accumulation Units outstanding at end of period (in thousands) 176 188 171 147 97 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.124 $15.610 $13.952 $10.698 - Accumulation Unit Value at end of period $15.415 $13.124 $15.610 $13.952 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- HARTFORD GLOBAL RESEARCH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD HIGH YIELD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-9 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.682 $9.804 $9.927 $10.045 $10.019 Accumulation Unit Value at end of period $9.562 $9.682 $9.804 $9.927 $10.045 Number of Accumulation Units outstanding at end of period (in thousands) 734 708 582 688 602 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.323 $9.540 $9.762 $9.983 - Accumulation Unit Value at end of period $9.111 $9.323 $9.540 $9.762 - Number of Accumulation Units outstanding at end of period (in thousands) 19 7 - - - HARTFORD SMALL COMPANY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.955 $10.431 $8.509 $6.664 $10.468 Accumulation Unit Value at end of period $11.369 $9.955 $10.431 $8.509 $6.664 Number of Accumulation Units outstanding at end of period (in thousands) 28 35 29 32 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.136 $16.027 $13.212 $10.457 - Accumulation Unit Value at end of period $17.106 $15.136 $16.027 $13.212 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL/MID CAP EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.191 $10.437 $8.399 $5.751 $10.251 Accumulation Unit Value at end of period $11.662 $10.191 $10.437 $8.399 $5.751 Number of Accumulation Units outstanding at end of period (in thousands) 39 50 40 46 31 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $17.703 $18.323 $14.900 $10.311 - Accumulation Unit Value at end of period $20.046 $17.703 $18.323 $14.900 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALLCAP GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.490 $12.470 $9.247 $6.915 $10.638 Accumulation Unit Value at end of period $14.481 $12.490 $12.470 $9.247 $6.915 Number of Accumulation Units outstanding at end of period (in thousands) 9 38 18 15 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.633 $18.799 $14.087 $10.647 - Accumulation Unit Value at end of period $21.377 $18.633 $18.799 $14.087 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - HARTFORD STOCK HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.695 $9.926 $8.755 $6.263 $10.640 Accumulation Unit Value at end of period $10.952 $9.695 $9.926 $8.755 $6.263 Number of Accumulation Units outstanding at end of period (in thousands) 37 47 54 48 33 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.497 $16.034 $14.291 $10.332 - Accumulation Unit Value at end of period $17.324 $15.497 $16.034 $14.291 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL COMPANY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL/MID CAP EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALLCAP GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD STOCK HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-10 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- HARTFORD TOTAL RETURN BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.507 $10.890 $10.256 $9.030 $9.948 Accumulation Unit Value at end of period $12.220 $11.507 $10.890 $10.256 $9.030 Number of Accumulation Units outstanding at end of period (in thousands) 4,648 4,748 4,731 4,084 1,833 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.665 $12.113 $11.529 $10.257 - Accumulation Unit Value at end of period $13.311 $12.665 $12.113 $11.529 - Number of Accumulation Units outstanding at end of period (in thousands) 54 54 47 37 - HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.432 $10.072 $9.826 $9.625 $9.805 Accumulation Unit Value at end of period $10.683 $10.432 $10.072 $9.826 $9.625 Number of Accumulation Units outstanding at end of period (in thousands) 147 134 149 179 120 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.532 $10.276 $10.131 $10.027 - Accumulation Unit Value at end of period $10.673 $10.532 $10.276 $10.131 - Number of Accumulation Units outstanding at end of period (in thousands) 6 6 5 - - HARTFORD VALUE HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.560 $9.874 $8.719 $7.098 $10.645 Accumulation Unit Value at end of period $11.045 $9.560 $9.874 $8.719 $7.098 Number of Accumulation Units outstanding at end of period (in thousands) 46 49 51 27 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.453 $14.041 $12.530 $10.309 - Accumulation Unit Value at end of period $15.381 $13.453 $14.041 $12.530 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. BALANCED RISK ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.961 $10.350 - - - Accumulation Unit Value at end of period $11.976 $10.961 - - - Number of Accumulation Units outstanding at end of period (in thousands) 37 32 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.870 $10.336 - - - Accumulation Unit Value at end of period $11.753 $10.870 - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- HARTFORD TOTAL RETURN BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD VALUE HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. BALANCED RISK ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-11 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- INVESCO V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.771 $9.923 $9.197 $7.276 $10.392 Accumulation Unit Value at end of period $10.963 $9.771 $9.923 $9.197 $7.276 Number of Accumulation Units outstanding at end of period (in thousands) 11 10 11 15 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.243 $13.591 $12.730 $10.178 - Accumulation Unit Value at end of period $14.704 $13.243 $13.591 $12.730 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.727 $9.501 $8.544 $6.412 $10.310 Accumulation Unit Value at end of period $9.934 $8.727 $9.501 $8.544 $6.412 Number of Accumulation Units outstanding at end of period (in thousands) 452 472 435 388 220 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.035 $15.441 $14.032 $10.642 - Accumulation Unit Value at end of period $15.809 $14.035 $15.441 $14.032 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 1 1 - INVESCO V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.160 $11.413 $9.014 $7.549 $10.737 Accumulation Unit Value at end of period $12.527 $11.160 $11.413 $9.014 $7.549 Number of Accumulation Units outstanding at end of period (in thousands) 92 103 70 27 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.987 $15.488 $12.361 $10.462 - Accumulation Unit Value at end of period $16.646 $14.987 $15.488 $12.361 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.141 - - - - Accumulation Unit Value at end of period $9.854 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 2 - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.124 - - - - Accumulation Unit Value at end of period $9.768 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- ------------------------------------------------------------------------- INVESCO V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-12 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.433 $10.478 $8.684 $6.319 $10.482 Accumulation Unit Value at end of period $12.063 $10.433 $10.478 $8.684 $6.319 Number of Accumulation Units outstanding at end of period (in thousands) 22 13 25 26 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.896 $17.147 $14.361 $10.559 - Accumulation Unit Value at end of period $19.331 $16.896 $17.147 $14.361 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.567 $9.911 $8.945 $7.298 $10.483 Accumulation Unit Value at end of period $10.803 $9.567 $9.911 $8.945 $7.298 Number of Accumulation Units outstanding at end of period (in thousands) 15 20 27 22 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.155 $13.772 $12.561 $10.356 - Accumulation Unit Value at end of period $14.700 $13.155 $13.772 $12.561 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.022 - - - - Accumulation Unit Value at end of period $9.891 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 4 - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.004 - - - - Accumulation Unit Value at end of period $9.804 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT BOND-DEBENTURE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.658 $12.279 $11.070 $8.346 $10.292 Accumulation Unit Value at end of period $14.067 $12.658 $12.279 $11.070 $8.346 Number of Accumulation Units outstanding at end of period (in thousands) 352 370 386 400 234 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.439 $15.135 $13.789 $10.505 - Accumulation Unit Value at end of period $16.979 $15.439 $15.135 $13.789 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- ------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT BOND-DEBENTURE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-13 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- LORD ABBETT CALIBRATED DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.771 $10.885 $9.604 $7.880 $10.373 Accumulation Unit Value at end of period $11.962 $10.771 $10.885 $9.604 $7.880 Number of Accumulation Units outstanding at end of period (in thousands) 55 59 57 44 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.794 $14.087 $12.560 $10.414 - Accumulation Unit Value at end of period $15.159 $13.794 $14.087 $12.560 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.735 $9.418 $8.122 $6.917 $10.534 Accumulation Unit Value at end of period $9.669 $8.735 $9.418 $8.122 $6.917 Number of Accumulation Units outstanding at end of period (in thousands) 76 101 103 107 87 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.657 $13.790 $12.018 $10.343 - Accumulation Unit Value at end of period $13.865 $12.657 $13.790 $12.018 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.274 $10.462 $9.210 $6.791 $10.626 Accumulation Unit Value at end of period $11.879 $10.274 $10.462 $9.210 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 6 5 5 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.812 $15.241 $13.559 $10.103 - Accumulation Unit Value at end of period $16.946 $14.812 $15.241 $13.559 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 - - - MFS INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.408 $9.763 $8.916 $7.133 $10.607 Accumulation Unit Value at end of period $11.041 $9.408 $9.763 $8.916 $7.133 Number of Accumulation Units outstanding at end of period (in thousands) 8 12 14 15 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.057 $13.692 $12.636 $10.217 - Accumulation Unit Value at end of period $15.163 $13.057 $13.692 $12.636 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- LORD ABBETT CALIBRATED DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-14 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- MFS RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.194 $11.597 $10.953 $9.569 $10.047 Accumulation Unit Value at end of period $12.893 $12.194 $11.597 $10.953 $9.569 Number of Accumulation Units outstanding at end of period (in thousands) 405 383 263 70 12 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.694 $12.199 $11.644 $10.280 - Accumulation Unit Value at end of period $13.281 $12.694 $12.199 $11.644 - Number of Accumulation Units outstanding at end of period (in thousands) 3 4 1 - - MFS TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.153 $10.121 $9.348 $8.040 $10.262 Accumulation Unit Value at end of period $11.124 $10.153 $10.121 $9.348 $8.040 Number of Accumulation Units outstanding at end of period (in thousands) 356 349 313 244 163 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.598 $12.691 $11.845 $10.295 - Accumulation Unit Value at end of period $13.658 $12.598 $12.691 $11.845 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.501 $9.666 $8.800 $7.277 $10.533 Accumulation Unit Value at end of period $10.873 $9.501 $9.666 $8.800 $7.277 Number of Accumulation Units outstanding at end of period (in thousands) 712 802 755 634 308 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.140 $13.509 $12.429 $10.386 - Accumulation Unit Value at end of period $14.881 $13.140 $13.509 $12.429 - Number of Accumulation Units outstanding at end of period (in thousands) 4 4 3 2 - MUTUAL GLOBAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.742 $10.178 $9.212 $7.572 $10.232 Accumulation Unit Value at end of period $10.898 $9.742 $10.178 $9.212 $7.572 Number of Accumulation Units outstanding at end of period (in thousands) 166 203 211 200 85 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.653 $13.358 $12.218 $10.149 - Accumulation Unit Value at end of period $14.006 $12.653 $13.358 $12.218 - Number of Accumulation Units outstanding at end of period (in thousands) - - - 1 - MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.949 $9.164 $8.355 $6.718 $10.237 Accumulation Unit Value at end of period $10.092 $8.949 $9.164 $8.355 $6.718 Number of Accumulation Units outstanding at end of period (in thousands) 988 1,060 1,004 873 479 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.317 $13.781 $12.698 $10.317 - Accumulation Unit Value at end of period $14.862 $13.317 $13.781 $12.698 - Number of Accumulation Units outstanding at end of period (in thousands) 8 9 8 5 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- MFS RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MUTUAL GLOBAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-15 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.036 $9.277 $8.607 $6.046 $10.881 Accumulation Unit Value at end of period $10.156 $9.036 $9.277 $8.607 $6.046 Number of Accumulation Units outstanding at end of period (in thousands) 33 31 34 39 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.867 $15.425 $14.462 $10.265 - Accumulation Unit Value at end of period $16.535 $14.867 $15.425 $14.462 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER GLOBAL SECURITIES FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.299 $10.294 $9.009 $6.546 $10.594 Accumulation Unit Value at end of period $11.108 $9.299 $10.294 $9.009 $6.546 Number of Accumulation Units outstanding at end of period (in thousands) 153 174 180 187 142 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.659 $16.398 $14.503 $10.649 - Accumulation Unit Value at end of period $17.327 $14.659 $16.398 $14.503 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - OPPENHEIMER MAIN STREET FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.616 $9.768 $8.539 $6.755 $10.558 Accumulation Unit Value at end of period $11.074 $9.616 $9.768 $8.539 $6.755 Number of Accumulation Units outstanding at end of period (in thousands) 36 42 44 43 23 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.351 $14.731 $13.015 $10.404 - Accumulation Unit Value at end of period $16.354 $14.351 $14.731 $13.015 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET SMALL- & MID- CAP FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.716 $11.116 $9.147 $6.766 $10.525 Accumulation Unit Value at end of period $12.453 $10.716 $11.116 $9.147 $6.766 Number of Accumulation Units outstanding at end of period (in thousands) 169 194 211 224 127 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.573 $17.372 $14.446 $10.798 - Accumulation Unit Value at end of period $19.058 $16.573 $17.372 $14.446 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER GLOBAL SECURITIES FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET SMALL- & MID- CAP FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-16 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.977 $9.517 $8.394 $6.411 $10.781 Accumulation Unit Value at end of period $10.026 $8.977 $9.517 $8.394 $6.411 Number of Accumulation Units outstanding at end of period (in thousands) 10 12 11 6 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.822 $14.808 $13.199 $10.187 - Accumulation Unit Value at end of period $15.276 $13.822 $14.808 $13.199 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT DIVERSIFIED INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.618 $12.149 $10.919 $7.116 $10.246 Accumulation Unit Value at end of period $12.796 $11.618 $12.149 $10.919 $7.116 Number of Accumulation Units outstanding at end of period (in thousands) 629 607 649 690 400 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.512 $17.449 $15.847 $10.437 - Accumulation Unit Value at end of period $17.997 $16.512 $17.449 $15.847 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 - PUTNAM VT GLOBAL ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.480 $9.253 $6.930 $10.302 Accumulation Unit Value at end of period $11.624 $10.307 $10.480 $9.253 $6.930 Number of Accumulation Units outstanding at end of period (in thousands) 20 20 14 2 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.058 $15.473 $13.805 $10.448 - Accumulation Unit Value at end of period $16.805 $15.058 $15.473 $13.805 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.673 $8.135 $7.486 $6.082 $10.507 Accumulation Unit Value at end of period $8.035 $6.673 $8.135 $7.486 $6.082 Number of Accumulation Units outstanding at end of period (in thousands) 5 4 3 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.362 $13.997 $13.017 $10.687 - Accumulation Unit Value at end of period $13.537 $11.362 $13.997 $13.017 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.610 $7.763 $7.338 $5.888 $10.587 Accumulation Unit Value at end of period $7.945 $6.610 $7.763 $7.338 $5.888 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.689 $13.873 $13.251 $10.746 - Accumulation Unit Value at end of period $13.902 $11.689 $13.873 $13.251 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT DIVERSIFIED INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT GLOBAL ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-17 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- PUTNAM VT SMALL CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.035 $10.665 $8.572 $6.599 $10.321 Accumulation Unit Value at end of period $11.643 $10.035 $10.665 $8.572 $6.599 Number of Accumulation Units outstanding at end of period (in thousands) 15 4 3 2 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.775 $16.943 $13.761 $10.706 - Accumulation Unit Value at end of period $18.112 $15.775 $16.943 $13.761 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.334 $10.032 $8.652 $5.080 $9.912 Accumulation Unit Value at end of period $9.305 $8.334 $10.032 $8.652 $5.080 Number of Accumulation Units outstanding at end of period (in thousands) 83 80 76 72 30 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.539 $20.121 $17.536 $10.405 - Accumulation Unit Value at end of period $18.274 $16.539 $20.121 $17.536 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.183 $9.283 $8.673 $6.417 $10.354 Accumulation Unit Value at end of period $9.546 $8.183 $9.283 $8.673 $6.417 Number of Accumulation Units outstanding at end of period (in thousands) 168 165 115 47 31 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.225 $15.162 $14.315 $10.704 - Accumulation Unit Value at end of period $15.268 $13.225 $15.162 $14.315 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 1 - - TEMPLETON GLOBAL BOND SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.828 $13.115 $11.620 $9.922 $9.912 Accumulation Unit Value at end of period $14.565 $12.828 $13.115 $11.620 $9.922 Number of Accumulation Units outstanding at end of period (in thousands) 527 527 480 414 211 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.346 $13.788 $12.345 $10.653 - Accumulation Unit Value at end of period $14.994 $13.346 $13.788 $12.345 - Number of Accumulation Units outstanding at end of period (in thousands) 4 3 2 - - TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.988 $8.711 $8.220 $6.354 $10.347 Accumulation Unit Value at end of period $9.548 $7.988 $8.711 $8.220 $6.354 Number of Accumulation Units outstanding at end of period (in thousands) 328 319 317 282 183 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.949 $14.270 $13.607 $10.630 - Accumulation Unit Value at end of period $15.315 $12.949 $14.270 $13.607 - Number of Accumulation Units outstanding at end of period (in thousands) 4 5 4 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- PUTNAM VT SMALL CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON GLOBAL BOND SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
APP B-18 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- UIF MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.884 $11.873 $9.089 $5.848 $10.721 Accumulation Unit Value at end of period $11.662 $10.884 $11.873 $9.089 $5.848 Number of Accumulation Units outstanding at end of period (in thousands) 35 43 43 47 30 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.542 $20.440 $15.813 $10.282 - Accumulation Unit Value at end of period $19.659 $18.542 $20.440 $15.813 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- UIF MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
(a) Inception date April 30, 2012. APP C-1 -------------------------------------------------------------------------------- APPENDIX C - COMPARISON AND FUND DATA Presented below are some, but certainly not all, of the differentiating features between the individual deferred variable annuities described in this prospectus. We also offer other individual deferred variable annuities that have different sales charges arrangements, charges (i.e., mortality and expense risk charges and annual fund operating expenses), commission structures and investment options. For instance, The Director and Hartford Leaders Foundation variable annuities have different charges and investment options than the comparable Core version of this variable annuity. We also offer another contract variation called "Edge" that includes a front end sales load and different charges. We have not included information regarding our Edge contract because it is offered through a very limited number of Financial Intermediaries. Your Registered Representative can help you decide which contract variation may be appropriate for you based on your individual circumstances, time horizon, policy feature preferences and risk tolerance. You should consider these differences and discuss them with your Registered Representative to choose a variable annuity. Not all contract variations are offered by all Financial Intermediaries. This Appendix does not constitute, and may not be used for the purposes of making, any offer or solicitation by anyone of any form of variable annuity other than as specifically provided in this prospectus. The form of Contract you select will be identified on your application and the contract issued to you. Consider the investment objectives, risks, charges and expenses of an investment carefully before investing. Both the variable annuity product and underlying Fund prospectuses contain other information about variable annuities and investment options. Your Registered Representative can provide you with prospectuses or you can contact us to receive one. This and any of the other variable annuities referenced in this Appendix are underwritten and distributed by Hartford Securities Distribution Company, Inc. Member SIPC. Please read the prospectus carefully before investing. I. COMPARISON TABLE
MINIMUM INITIAL PREMIUM QUALIFIED QUALIFIED CONTRACT CONTRACT CONTRACT SALES CHARGE ----------------------------------------------------------------------------------------------------------- ACCESS $2,000 $10,000 None CORE $1,000 $1,000 Year 1 2 3 4 CDSC 7% 7% 7% 6% OUTLOOK $2,000 $10,000 Year 1 2 3 4 CDSC 7% 6% 5% 4% PLUS $2,000 $10,000 Year 1 2 3 4 CDSC 8% 8% 8% 8% MORTALITY & MAXIMUM EXPENSE RISK UP-FRONT CONTRACT SALES CHARGE CHARGE(1) COMMISSION ----------- -------------------------------------------------------------------------------- ACCESS 1.50% 2% CORE 5 6 7 8+ 5% 4% 3% 0% 1.05% 7% OUTLOOK 5+ 0% 1.45% 5.75% PLUS 5 6 7 8 9+ 7% 6% 5% 4% 0% 1.45% 6.5%
(1) Excluded fees include administrative charges (up to 0.20%), annual maintenance fees (applies to contracts with anniversary/surrender contract values less than $50,000), premium taxes (0 - 3.5%) and optional benefit fees. APP C-2 ------------------------------------------------------------------------------- II. INVESTMENT OPTIONS (STANDARD)
FUNDING OPTION INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER -------------------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS Invesco V.I. American Value Fund - Above-average total return over a market cycle Invesco Advisers, Inc. Series II (1) of three to five years by investing in common stocks and other equity securities Invesco V.I. Balanced Risk Allocation Total return with a low to moderate Invesco Advisers, Inc. Fund - Series II correlation to traditional financial market indices Invesco V.I. Core Equity Fund - Seeks long-term growth of capital Invesco Advisers, Inc. Series II Invesco V.I. Growth and Income Fund - Seeks to provide long-term growth of capital Invesco Advisers, Inc. Series II (2) and income primarily through investments in common stocks Invesco V.I. International Growth Seeks long-term growth of capital Invesco Advisers, Inc. Fund - Series II Invesco V.I. Money Market Fund - Seeks to provide current income consistent Invesco Advisers, Inc. Series I*(3) with preservation of capital and liquidity Invesco V.I. Small Cap Equity Fund - Seeks long-term growth of capital Invesco Advisers, Inc. Series II ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. AllianceBernstein VPS Balanced Wealth Maximize total return consistent with AllianceBernstein, L.P. Strategy Portfolio - Class B Adviser's determination of reasonable risk AllianceBernstein VPS International Seeks long-term growth of capital AllianceBernstein, L.P. Growth Portfolio - Class B AllianceBernstein VPS International Seeks long-term growth of capital AllianceBernstein, L.P. Value Portfolio - Class B AllianceBernstein VPS Small/Mid Cap Seeks long-term growth of capital AllianceBernstein, L.P. Value Portfolio - Class B AllianceBernstein VPS Value Portfolio Seeks long-term growth of capital AllianceBernstein, L.P. - Class B FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS Fidelity(R) VIP Contrafund(R) Seeks long-term capital appreciation Fidelity Management & Research Company Portfolio - Service Class 2 Sub-advised by FMR Co., Inc. and other Fidelity affiliates Fidelity(R) VIP Dynamic Capital Seeks capital appreciation Fidelity Management & Research Company Appreciation Portfolio - Service Sub-advised by FMR Co., Inc. and other Class 2 Fidelity affiliates Fidelity(R) VIP Growth Portfolio - Seeks to achieve capital appreciation Fidelity Management & Research Company Service Class 2 Sub-advised by FMR Co., Inc. and other Fidelity affiliates Fidelity(R) VIP Mid Cap Portfolio - Seeks long-term growth of capital Fidelity Management & Research Company Service Class 2 Sub-advised by FMR Co., Inc. and other Fidelity affiliates
APP C-3 -------------------------------------------------------------------------------
FUNDING OPTION INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER -------------------------------------------------------------------------------------------------------------------------------- Fidelity(R) VIP Value Strategies Seeks capital appreciation Fidelity Management & Research Company Portfolio - Service Class 2 Sub-advised by FMR Co., Inc. and other Fidelity affiliates FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Flex Cap Growth Securities Seeks capital appreciation Franklin Advisers, Inc. Fund - Class 4 Franklin Income Securities Fund - Seeks to maximize income while maintaining Franklin Advisers, Inc. Class 4 prospects for capital appreciation Sub-advised by Templeton Investment Counsel, LLC Franklin Small Cap Value Securities Seeks long-term total return Franklin Advisory Services, LLC Fund - Class 4 Franklin Small-Mid Cap Growth Seeks long-term capital growth Franklin Advisers, Inc. Securities Fund - Class 4 Franklin Strategic Income Securities Seeks a high level of current income, with Franklin Advisers, Inc. Fund - Class 4 capital appreciation over the long term as a secondary goal Mutual Global Discovery Securities Seeks capital appreciation Franklin Mutual Advisers, LLC Fund - Class 4 Sub-advised by Franklin Templeton Investment Management Limited Mutual Shares Securities Fund - Class Capital appreciation, with income as a Franklin Mutual Advisers, LLC 4 secondary goal Templeton Developing Markets Seeks long-term capital appreciation Templeton Asset Management Ltd. Securities Fund - Class 4 Templeton Foreign Securities Fund - Seeks long-term capital growth Templeton Investment Counsel, LLC Class 4 Templeton Global Bond Securities Fund Seeks high current income, consistent with Franklin Advisers, Inc. - Class 4 preservation of capital, with capital appreciation as a secondary consideration Templeton Growth Securities Fund - Seeks long-term capital growth Templeton Global Advisors Limited Class 4 HARTFORD HLS SERIES FUND II, INC. Hartford Growth Opportunities HLS Seeks capital appreciation Hartford Funds Management Company, LLC Fund - Class IA Sub-advised by Wellington Management Company, LLP Hartford Small/Mid Cap Equity HLS Seeks long-term growth of capital Hartford Funds Management Company, LLC Fund - Class IA Sub-advised by Wellington Management Company, LLP Hartford SmallCap Growth HLS Fund - Seeks long-term capital appreciation Hartford Funds Management Company, LLC Class IA Sub-advised by Wellington Management Company, LLP Hartford U.S. Government Securities Seeks to maximize total return while providing Hartford Funds Management Company, LLC HLS Fund - Class IA shareholders with a high level of current Sub-advised by Wellington Management income consistent with prudent investment risk Company, LLP
APP C-4 -------------------------------------------------------------------------------
FUNDING OPTION INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER -------------------------------------------------------------------------------------------------------------------------------- HARTFORD SERIES FUND, INC. American Funds Asset Allocation HLS Seeks high total return (including income and Hartford Funds Management Company, LLC Fund - Class IB capital gains) consistent with preservation of capital over the long term. American Funds Blue Chip Income and Seeks to produce income exceeding the average Hartford Funds Management Company, LLC Growth HLS Fund - Class IB yield on U.S. stocks generally (as represented by the average yield on the S&P 500 Index) and to provide an opportunity for growth of principal consistent with sound common stock investing. American Funds Bond HLS Fund - Class Seeks to maximize current income and Hartford Funds Management Company, LLC IB preservation of capital. American Funds Global Bond HLS Fund - Seeks a high level of total return over the Hartford Funds Management Company, LLC Class IB long term American Funds Global Growth and Seeks growth of capital over time and current Hartford Funds Management Company, LLC Income HLS Fund - Class IB income American Funds Global Growth HLS Fund Seeks long-term growth of capital Hartford Funds Management Company, LLC - Class IB American Funds Global Small Seeks growth of capital over time Hartford Funds Management Company, LLC Capitalization HLS Fund - Class IB American Funds Growth HLS Fund - Seeks growth of capital Hartford Funds Management Company, LLC Class IB American Funds Growth-Income HLS Fund Seeks long-term growth of capital and income Hartford Funds Management Company, LLC - Class IB over time American Funds International HLS Fund Seeks long-term growth of capital over time Hartford Funds Management Company, LLC - Class IB American Funds New World HLS Fund - Seeks long-term capital appreciation Hartford Funds Management Company, LLC Class IB Hartford Balanced HLS Fund - Class IA Seeks long-term total return Hartford Funds Management Company, LLC (4) Sub-advised by Wellington Management Company, LLP Hartford Capital Appreciation HLS Seeks growth of capital Hartford Funds Management Company, LLC Fund - Class IA Sub-advised by Wellington Management Company, LLP Hartford Disciplined Equity HLS Fund Seeks growth of capital Hartford Funds Management Company, LLC - Class IA Sub-advised by Wellington Management Company, LLP Hartford Dividend and Growth HLS Fund Seeks a high level of current income Hartford Funds Management Company, LLC - Class IA consistent with growth of capital Sub-advised by Wellington Management Company, LLP Hartford Global Growth HLS Fund - Seeks growth of capital Hartford Funds Management Company, LLC Class IA Sub-advised by Wellington Management Company, LLP
APP C-5 -------------------------------------------------------------------------------
FUNDING OPTION INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER -------------------------------------------------------------------------------------------------------------------------------- Hartford Global Research HLS Fund - Seeks long-term capital appreciation Hartford Funds Management Company, LLC Class IA Sub-advised by Wellington Management Company, LLP Hartford Growth HLS Fund - Class IA Seeks long-term capital appreciation Hartford Funds Management Company, LLC Sub-advised by Wellington Management Company, LLP Hartford High Yield HLS Fund - Class Seeks to provide high current income, and Hartford Funds Management Company, LLC IA long-term total return Sub-advised by Wellington Management Company, LLP Hartford International Opportunities Seeks long-term growth of capital Hartford Funds Management Company, LLC HLS Fund - Class IA Sub-advised by Wellington Management Company, LLP Hartford Money Market HLS Fund - Seeks maximum current income consistent with Hartford Funds Management Company, LLC Class IA* liquidity and preservation of capital Sub-advised by Hartford Investment Management Company Hartford Small Company HLS Fund - Seeks growth of capital Hartford Funds Management Company, LLC Class IA Sub-advised by Wellington Management Company, LLP Hartford Stock HLS Fund - Class IA Seeks long-term growth of capital Hartford Funds Management Company, LLC Sub-advised by Wellington Management Company, LLP Hartford Total Return Bond HLS Fund - Seeks a competitive total return, with income Hartford Funds Management Company, LLC Class IA as a secondary objective Sub-advised by Wellington Management Company, LLP Hartford Value HLS Fund - Class IA Seeks long-term total return Hartford Funds Management Company, LLC Sub-advised by Wellington Management Company, LLP LORD ABBETT SERIES FUND, INC. Lord Abbett Bond-Debenture Portfolio Seeks high current income and the opportunity Lord, Abbett & Co. LLC - Class VC for capital appreciation to produce a high total return Lord Abbett Calibrated Dividend Seeks current income and capital appreciation Lord, Abbett & Co. LLC Growth Portfolio - Class VC (5) Lord Abbett Growth and Income Seeks long-term growth of capital and income Lord, Abbett & Co. LLC Portfolio - Class VC without excessive fluctuations in market value MFS(R) VARIABLE INSURANCE TRUST MFS(R) Growth Series - Service Class Seeks capital appreciation MFS MFS(R) Investors Trust Series - Seeks capital appreciation MFS Service Class MFS(R) Research Bond Series - Service Seeks total return with an emphasis on current MFS Class income, but also considering capital appreciation
APP C-6 -------------------------------------------------------------------------------
FUNDING OPTION INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER -------------------------------------------------------------------------------------------------------------------------------- MFS(R) Total Return Series - Service Seeks total return MFS Class MFS(R) Value Series - Service Class Seeks capital appreciation MFS OPPENHEIMER VARIABLE ACCOUNT FUNDS Oppenheimer Capital Appreciation Seeks capital appreciation OFI Global Asset Management, Inc. Fund/VA - Service Shares Sub-advised by OppenheimerFunds, Inc. Oppenheimer Equity Income Fund/VA (6) Seeks total return OFI Global Asset Management, Inc. Sub-advised by OppenheimerFunds, Inc. Oppenheimer Global Fund/VA - Service Seeks capital appreciation OFI Global Asset Management, Inc. Shares (7) Sub-advised by OppenheimerFunds, Inc. Oppenheimer Main Street Fund(R)/VA - Seeks capital appreciation OFI Global Asset Management, Inc. Service Shares Sub-advised by OppenheimerFunds, Inc. Oppenheimer Main Street Small Cap Seeks capital appreciation OFI Global Asset Management, Inc. Fund/VA (8) Sub-advised by OppenheimerFunds, Inc. PUTNAM VARIABLE TRUST Putnam VT Diversified Income Fund - As high a level of current income as Putnam Putnam Investment Management, LLC Class IB Management believes is consistent with preservation of capital Putnam VT Global Asset Allocation Long-term return consistent with preservation Putnam Investment Management, LLC Fund - Class IB of capital Sub-advised by Putnam Advisory Company, LLC Putnam VT International Equity Fund - Capital appreciation Putnam Investment Management, LLC Class IB Sub-advised by Putnam Advisory Company, LLC Putnam VT International Value Fund - Capital growth. Current income is a secondary Putnam Investment Management, LLC Class IB objective Sub-advised by Putnam Advisory Company, LLC Putnam VT Small Cap Value Fund - Capital appreciation Putnam Investment Management, LLC Class IB THE UNIVERSAL INSTITUTIONAL FUNDS, INC. UIF Mid Cap Growth Portfolio - Class Seeks long-term capital growth by investing Morgan Stanley Investment Management II primarily in common stocks and other equity Inc. securities Fixed Accumulation Feature** Preservation of capital General Account
* In a low interest rate environment, yields for money market funds, after deduction of Contract charges may be negative even though the fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Sub-Account or participate in an Asset Allocation Program where Contract Value is allocated to a money market Sub-Account, that portion of your Contract Value may decrease in value. ** The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature. The Fixed Accumulation Feature is currently not available to Plus and Outlook products. NOTES (1) Formerly Invesco Van Kampen V.I. American Value Fund - Series II (2) Formerly Invesco Van Kampen V.I. Growth and Income Fund - Series II (3) The Fund will be available as an investment option on or about July 15, 2013. (4) Formerly Hartford Advisers HLS Fund - Class IA (5) Formerly Lord Abbett Capital Structure Portfolio - Class VC APP C-7 ------------------------------------------------------------------------------- (6) Formerly Oppenheimer Value Fund/VA - Service Shares (7) Formerly Oppenheimer Global Securities Fund/VA - Service Shares (8) Formerly Oppenheimer Main Street Small- & Mid- Cap Fund(R)/VA - Service Shares APP D-1 ------------------------------------------------------------------------------- APPENDIX D - THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS OBJECTIVE The objective of these two different riders is to (i) protect your investment from poor market performance; (ii) provide longevity protection through Lifetime Benefit Payments; and (iii) provide Death Benefit protection. HOW DO THE RIDERS HELP ACHIEVE THIS GOAL? - LIFETIME WITHDRAWAL FEATURE. Provided you follow the rules below, the riders provide a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's Lifetime Income Eligibility Date until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are based on whether either the rider chosen: Lifetime Income = Payment Base or Contract x Withdrawal Percent Builder Selects Value, whichever is higher - or - Lifetime Income = Payment Base x Withdrawal Percent Builder Portfolios
- GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments (adjusted for partial Surrenders) or Contract Value as of the date due proof of death is received by us for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. WHEN CAN YOU BUY THE RIDERS? The Hartford's Lifetime Income Builders Selects is closed to new investors. These riders may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw either or both riders and any options at any time. When you buy either rider, you must provide us with the names and date of birth of the Owner, any joint Owner, Annuitant and Beneficiary. We then determine who the "Relevant Covered Life" and other "Covered Lives" will be when establishing the Withdrawal Percent. - A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. - For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/ Spousal Option, the Covered Life is most often the Contract Owner, and his or her Spouse as the joint Owner or Beneficiary. - The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing either rider is 80. These age restrictions also apply to the Beneficiary when the Joint/Spousal Option is chosen. DOES ELECTING EITHER RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect either rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR EITHER RIDER CALCULATED? The fee for the riders is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary after your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for the riders will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. APP D-2 ------------------------------------------------------------------------------- We reserve the right to increase the charge for either or both riders (and any option) up to the maximum fees described in the Synopsis at any time 12 months after either rider's effective date. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected such rider. Fee increases will not apply if (a) the age of the Relevant Covered Life is 81 or older; (b) you notify us of your election to permanently waive automatic Payment Base increases as described below; or (c) we convert your benefits based on our Minimum Amount rules defined in your Contract. This fee may not be the same as the fee that we charge new purchasers. Subject to the foregoing limitation, we also reserve the right to charge a different fee for either rider (or options) to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. You will receive advanced notice of any fee increase. You may decline the fee increase and permanently waive automatic Payment Base increases by: - Notifying us in writing, verbally or electronically, if available. - Written notifications must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of declining the fee increase. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election. - We will accept your notification up to 60 days prior to the Contract Anniversary on which the fee increase is scheduled to become effective. - We will only honor notifications from the Owner or joint Owner and not through your broker. - Your decision to decline the fee increase and waive automatic Payment Base increases is irrevocable. You will not be able to accept the fee increase and resume automatic Payment Base increases in the future. - If you decline the fee increase, your Lifetime Benefit Payment will continue to be reset on each Contract Anniversary according to the rider's rules. - If you decline the fee increase, and defer withdrawals for at least five years, the Withdrawal Percentage will continue to be reset when a new age band is reached according to the rider's rules. DOES THE PAYMENT BASE CHANGE UNDER EITHER RIDER? Yes, your initial Payment Base is equal to your initial Premium Payment (including any Payment Enhancements, if applicable). It will fluctuate based on: - automatic Payment Base increases; and - subsequent Premium Payments; and - partial Surrenders (including partial Surrenders taken prior to the Lifetime Income Eligibility Date or if the amount of the partial Surrender exceeds either your Threshold or Lifetime Benefit Payment amount). - Automatic Payment Base Increase: Your automatic annual Payment Base increase varies depending on whether you choose The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. The following table describes how these options operate:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS LIFETIME INCOME BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------------ New Payment Base [(current Anniversary Value (prior to the rider charge The higher of current Contract Value or Payment Base being taken) divided by your prior Payment Base)] multiplied by your prior Payment Base Annual Payment Base 0% - 10% Unlimited increase limits
We will determine if you are eligible for annual automatic Payment Base increases on each Contract Anniversary. Automatic Payment Base increases will cease upon the earliest of: - your Annuity Commencement Date; - the Contract Anniversary immediately following the Relevant Covered Life's attained age of 90; or - You waive your right to receive automatic Payment Base increases. APP D-3 ------------------------------------------------------------------------------- Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under either rider. See Examples 16 and 17 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix A. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. See Examples 10 and 11 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix A. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior to the Lifetime Income Eligibility Date, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable limits as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to the Lifetime Income Eligibility Date, are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders taken after the Lifetime Income Eligibility Date are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. See Examples 3-9 and 12-15 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix A. - Covered Life Changes may also trigger a recalculation of your Payment Base, Lifetime Benefit Payment, Guaranteed Minimum Death Benefit and rider fees. See "WHAT HAPPENS IF YOU CHANGE OWNERSHIP?" below. - Option Conversion. We reserve the right to offer a one-time only conversion from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, on or after the first Contract Anniversary after the rider has been in effect and prior to the Relevant Covered Life's reaching attained age 81. Your then current Payment Base will be your new Payment Base for the purposes of the converted rider. This conversion will go into effect on the next following Contract Anniversary. A conversion notice must be received by us in good order between 30 days prior to, or within 15 days after, a Contract Anniversary. This privilege may be withdrawn at our sole discretion at any time without prior notice. The rider fee and any associated restrictions will be based on the rider then in effect. You may rescind your election within 15 days after making your election. Upon rescission; however, your Payment Base will be reset at the LOWER of the then applicable Payment Base or the Contract Value at the time of rescission. RESCISSION OF A CONVERSION OPTION MAY THEREFORE RESULT IN A PERMANENT REDUCTION OF BENEFITS. Once rescinded, this privilege will be terminated. - Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. IS EITHER RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, withdrawals taken prior to the Lifetime Income Eligibility Date are not guaranteed to be available throughout your lifetime. Such withdrawals will reduce (and may even eliminate) the Payment Base otherwise available to establish Lifetime Benefit Payments and Guaranteed Minimum Death Benefits. As shown in the following table, the Withdrawal Percent for all partial Surrenders taken BEFORE the Lifetime Income Eligibility Date will be 5% (Single Life Option) or 4.5% (Joint/Spousal Option). In contrast, the Withdrawal Percent for partial Surrenders taken AFTER the Lifetime Income Eligibility Date will be based on the chronological age of the Relevant Covered Life at the time of the first withdrawal as shown below:
WITHDRAWAL PERCENT SINGLE LIFE JOINT/SPOUSAL RELEVANT COVEREDLIFE ATTAINED AGE OPTION OPTION --------------------------------------------------------------------------------- [LESS THAN]59 1/2 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80 - 84 7.0% 6.5% 85 - 90 7.5% 7.0% 90+ 8.0% 7.5%
APP D-4 ------------------------------------------------------------------------------- Except as provided below, the Withdrawal Percent will be based on the chronological age of the Relevant Covered Life at the time of the first Surrender. 1. If a partial Surrender HAS NOT been taken, your new Withdrawal Percent will be effective on the next birthday that brought the Relevant Covered Life into a new Withdrawal Percent age band; or 2. If you have deferred taking partial Surrenders for five years from the date you purchased this rider, your new Withdrawal Percent will be effective on the next birthday that brings the Relevant covered Life into a new Withdrawal Percent age band. Your new Withdrawal Percent will thereafter continue to change based on the age of the Relevant Covered Life as shown on the table above regardless of whether partial Surrenders are taken after such five year period or; 3. If the preceding requirements in (1) or (2) have not been met, your new Withdrawal Percent will be effective as of the Contract Anniversary when the next automatic Payment Base increase occurs due to market performance after the birthday that brings the Relevant Covered Life into a new Withdrawal Percent age band. If you meet the deferral requirements above, you will not forfeit your right to automatic Withdrawal Percent increases even if you decline future fee increases. Please refer to Example 24 in The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios Examples Appendix for more information. IS EITHER RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments adjusted for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of either rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. For Joint/Spousal election of either rider, no Death Benefit will be available when a Relevant Covered Life is the Beneficiary and the Beneficiary dies. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders after the Lifetime Income Eligibility Date are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL FEATURE" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES EITHER RIDER REPLACE THE STANDARD DEATH BENEFIT? YES, IT PERMANENTLY REPLACES THE STANDARD DEATH BENEFIT. The Guaranteed Minimum Death Benefit differs from the standard Death Benefit in terms of how it is reduced by excess withdrawals. The standard Death Benefit is depleted proportionately for partial Surrenders in excess of the Annual Withdrawal Amount whereas the Guaranteed Minimum Death Benefit is depleted proportionately for partial Surrenders in excess of Lifetime Benefit Payments or the Threshold. The Guaranteed Minimum Death Benefit will be reset to equal Contract Value when there is a Covered Life change that exceeds the permissible age limitation under either rider. This may also occur for the Single Life Option when the Spouse elects Spousal Contract continuation and the new Covered Life exceeds the age limit. CAN YOU REVOKE EITHER RIDER? No. However, a Company-sponsored exchange of either rider will not be considered to be a revocation by you of either rider. APP D-5 ------------------------------------------------------------------------------- WHAT EFFECT DOES PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER EITHER RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER EITHER RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under either rider. If your Contract Value on any Contract Anniversary is ever reduced below the minimum amount (as defined in your Contract - generally, the greater of $500 or one Lifetime Benefit Payment) as a result of investment performance or if on any Valuation Day a partial Surrender is taken that reduces your Contract Value below the minimum amount, then the following will occur: - We will no longer accept subsequent Premium Payments; and - You will be required to either make a full Surrender or promptly transfer your remaining Contract Value to an approved Sub-Account(s) and/or Programs (failure to do so after a reasonable amount of time being deemed as acquiescence to our reallocation of these sum to the Money Market Sub-Account); and - Lifetime Benefit Payments will continue and Withdrawal Percent increases will continue if the Contract qualifies for the 5-year deferred provision; and - Your Guaranteed Minimum Death Benefit will continue to be reduced by Lifetime Benefit Payments until reduced to zero at which time your Death Benefit shall be equal to your Contract Value; and - All other privileges under this rider will terminate and you will no longer be charged a rider fee or Annual Maintenance Fee and - If any amount greater than a Lifetime Benefit Payment is requested, the Contract will be liquidated, the rider will terminate and the Guaranteed Minimum Death Benefit will be lost. See Examples 21 and 22 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix A. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as either rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a recalculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the applicable rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. The charge for this rider will remain the same. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. The charge for this rider will remain the same. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Lifetime Withdrawal Feature of either rider and continue the Guaranteed Minimum Death Benefit only. The charge for the rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of either rider at the time of the change, or we no longer offer either rider, then either rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. APP D-6 ------------------------------------------------------------------------------- If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer such rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Lifetime Withdrawal Feature will terminate. The charge for either rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer such rider, then we will use the attained age of the older Covered Life as of the date of the Covered Life change to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer such rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If such rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
APP D-7 ------------------------------------------------------------------------------- JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes. CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the sole Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and such rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and such rider (or a similar rider, as we determine) is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering such rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Feature, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: Either rider is designed to facilitate the continuation of your rights under the rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue either rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Spousal Contract continuation date; and - The Lifetime Benefit Payment will be recalculated. The remaining Covered Life can not name a new owner on the Contract. Any new Beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. Either rider will terminate upon the death of the remaining Covered Life. See Examples 18 and 19 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix A. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity APP D-8 ------------------------------------------------------------------------------- Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our Minimum Amount rule then in effect. If your Contract Value is reduced below our Minimum Amount rule (as defined in your Contract), then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 1/2 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 1/2 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. APP D-9 ------------------------------------------------------------------------------- These options may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes, as described in the following table: Lifetime Income Builder We reserve the right to prohibit investment in certain Funds or require you to allocate your Contract Selects Value only to certain Funds or in accordance with one of a number of model portfolios or Programs. We also reserve the right to limit the Funds into which you may allocate your Contract Value. Lifetime Income Builder Your Contract Value must be invested in one or more Programs and in an approved model portfolio, Portfolios Funds or other investment vehicles established from time to time. Permissible portfolios, Funds, Programs or other investment vehicles are described in your application and other communications. Not all model portfolios or Programs are available through all Financial Intermediaries. We may, in our sole discretion, add, replace or alter Funds, Programs and model portfolios from time to time. You will be provided with advance notification of any investment restriction changes. Changes may be made on a prospective basis with respect to any additional Premium Payments received. While you may switch from model portfolio to model portfolio, you can not pick and choose Funds within any model portfolios nor may you specify which Funds should be redeemed to satisfy the Lifetime Withdrawal Feature. You may provide written investment instructions to invest Contract Value in a manner that violates these investment restrictions. Any such action will; however, result in the termination of your rights under either rider.
Investments within model portfolios will fluctuate in value and may be worth more or less than your original investment. We are not responsible for lost investment opportunities associated with the implementation of these investment restrictions. Please refer to each Fund's investment objectives, policies and restrictions and the risks of investing in each Fund as described in this prospectus and the prospectus for each Fund. If your Lifetime Withdrawal Feature is revoked due to failure to comply with the investment restrictions, You will have a one time opportunity to reinstate the Lifetime Withdrawal Feature on your rider. There is a 15 calendar day reinstatement period that will begin from the date Your Lifetime Withdrawal Feature is revoked. During the reinstatement period if you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change your opportunity to reinstate will be terminated. Upon reinstatement of your Lifetime Withdrawal Feature under either rider, Your Payment Base will be reset at the lower of the Payment Base prior to the revocation and Contract Value as of the date of the reinstatement. Your Withdrawal Percentage will be set equal to the Withdrawal Percentage prior to the Lifetime Withdrawal Feature revocation; unless, if within the reinstatement period You reach a new age band and no partial Surrenders have been taken, then the Withdrawal Percentage will be set equal to the appropriate percentage based on the attained age of the Relevant Covered Life. Your Lifetime Benefit Payment will be recalculated based on the Lifetime Withdrawal Feature values as of the date of the reinstatement. We will deduct a prorated rider charge on your Contract Anniversary following the reinstatement for the time period between the reinstatement date and your first Contract Anniversary following the reinstatement. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We may not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. The restrictions are not currently enforced. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. APP D-10 ------------------------------------------------------------------------------- OTHER INFORMATION The riders may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under either rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate the rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the then current maximum Lifetime Benefit Payment or Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, the Death Benefit will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize, you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - If you had elected the conversion option from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, and subsequently rescinded that election, your Payment Base will be set to the lower of the Payment Base or the Contract Value on the date of the rescission and therefore your old Payment Base will not be restored. The Death Benefit will also be set to the lower of the Guaranteed Minimum Death Benefit and the Contract Value on the date of the rescission. - Even though either rider is designed to provide living benefits, you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of either rider. - While there is no minimum age for electing either rider, withdrawals taken prior to the Lifetime Income Eligibility Date will reduce, or can even eliminate guaranteed Lifetime Benefit Payments. PAYMENTS TAKEN PRIOR TO THE LIFETIME INCOME ELIGIBILITY DATE ARE NOT GUARANTEED TO LAST FOR A LIFETIME. Either rider may not be suitable if a Covered Life is under attained age 59 1/2. - The determination of the Relevant Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate either or both riders post-election based on your violation of benefit rules and may otherwise withdraw such rider (or any option) for new sales at any time. In the event that either rider (or any option) is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated and the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Unless otherwise provided, you may select either rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect either rider you will not be eligible to elect optional riders other than MAV or MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of either rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in either optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under either rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The fee for either rider may increase any time after 12 months from either rider's effective date. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - We do not automatically increase payments under the Automatic Income Program If your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment APP D-11 ------------------------------------------------------------------------------- increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege. - The 2009 change to the Internal Revenue Code pertaining to Required Minimum Distributions do not change the calculation of your eligible withdrawal amount under the rider if you are enrolled in the Automatic Income Program. APP E-1 ------------------------------------------------------------------------------- APPENDIX E - THE HARTFORD'S PRINCIPAL FIRST OBJECTIVE Protect your investment from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider protects your investment by guaranteeing Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. You may also elect "step-ups" that reset your Benefit Amount to the then prevailing Contract Value. You or your Spouse (if Spousal Contract continuation has been chosen) may elect to step-up your Benefit Amount following the 5th Contract Year that you added this rider to your Contract and again on each fifth anniversary from the last time you elected to step-up your Benefit Amount (or upon Spousal Contract continuation, whichever is earlier)(these dates are called "election dates" in this section). Your Benefit Amount will then become the Contract Value as of the close of business on the Valuation Date that you properly made this election. Each time that you exercise step-up rights, your Benefit Payment will be reset to 7% of the new Benefit Amount, but will never be less than your then existing Benefit Payment. You must follow certain requirements to make this election: - We will accept requests for a step-up in writing, verbally or electronically, if available. - Written elections must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of making this election. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election. - We will not accept any election request prior to an election date. You may not post-date your election. - If an election form is received in good order on or after an election date, the step-up will occur as of the close of business on the Valuation Day that the request is received by us at our Administrative Office. We reserve the right to require you to elect step-ups only on Contract Anniversaries. - We will not honor any election request if your Contract Value is less than your Benefit Amount effective as of the step-up effective date. - Your election is irrevocable. This means that if your Contract Value increases after your step-up, you can not ask us to reset your Benefit Amount again until your next election date. The fee for this rider may also change when you make this election and will remain in effect until your next election, if any. WHEN CAN YOU BUY THIS RIDER? The Hartford's Principal First rider is closed to new investors and Post issue election. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any riders other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Sub-Account Value and is deducted daily. The charge continues to be deducted until we begin to make Annuity Payouts. We will recalculate the charge each time that you step-up your Benefit Amount. The fee at the time of step-up will be the charge that we are then currently charging other customers who have previously elected this rider and have elected to step-up. This fee may not be the same as, but will not be more than, the fee that we charge new purchasers or the fee we set before we cease offering this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Before you decide to exercise your step-up privileges, you should request a current prospectus which will describe the then current charge effective upon exercising step-up rights. We also reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. The fee increase will only apply if you elect to step-up your Benefit Amount. Subject to limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of ownership of this Contract. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. If elected at the time of Contract issuance, your initial Benefit Amount is your initial Premium Payment. If elected after the Contract has been issued, your initial Benefit Amount will be the based on your Contract Value at the time the rider is elected. Any time after the 5th Contract Year that this rider has been in effect and thereafter on each fifth anniversary of the last step-up (or sooner APP E-2 ------------------------------------------------------------------------------- upon Spousal Contract continuation); you (or your Spouse if Spousal Contract continuation rights have been elected) may elect to step-up the Benefit Amount to the Contract Value. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. (Partial Surrenders in excess of your Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments.) Your Benefit Amount can never be more than $5 million. You cannot elect the step-up privilege if your then current Benefit Amount is higher than your Contract Value on step-up dates. See Example 1 under The Hartford's Principal First in Appendix A. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate the Benefit Payment. The maximum Benefit Payment is 7% of your Benefit Amount on rider effective date, or if more recently, the last date on which a step up was elected, or the Benefit Amount was reduced due to a partial Surrender exceeding the Benefit Payment. Benefit Payments can begin at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current year. For example, if you do not take 7% one year, you may not take more than 7% the next year. If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date we added this rider to your Contract and your next Contract Anniversary, which could be less than a year. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment. When you make a subsequent Premium Payment, your Benefit Payments will increase by 7% of the amount of the subsequent Premium Payment. See Examples 2 and 3 under The Hartford's Principal First in Appendix A. Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. IF, IN ONE YEAR, YOUR SURRENDERS TOTAL MORE THAN YOUR BENEFIT PAYMENT, WE WILL RE-CALCULATE YOUR BENEFIT AMOUNT AND YOUR BENEFIT PAYMENT COULD BE SIGNIFICANTLY LOWER IN THE FUTURE. Any time we recalculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows: A. If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding establishments for subsequent Premium Payments), are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. B. If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows: (i) The Contract Value immediately following the partial Surrender; or (ii) The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. See Examples 2 and 6 under The Hartford's Principal First in Appendix A. Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70 1/2. These withdrawals are called Required Minimum Distributions. A Required Minimum Distribution may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? No. However, partial Surrenders will reduce the standard Death Benefit. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. APP E-3 ------------------------------------------------------------------------------- WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable CDSC. If, in one year, your Surrenders total more than your Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. If your Contract Value is reduced to zero due to receiving Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of: - The Benefit Amount immediately prior to the ownership change or assignment; or - The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 7% of the new Benefit Amount. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the Beneficiary is the deceased Owner's Spouse at the time of death, the Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the "PF Annuity Payout Option"), we will pay a fixed dollar amount for a specific number of years ("Payout Period"). If you, the joint Owner or the Annuitant should die before the PF Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PF Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PF Annuity Payout Option or any of the Death Benefit options offered in your Contract. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed dollar amount Annuity Payout option until your Benefit Amount is depleted. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. APP E-4 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? We reserve the right to treat all Contracts issued to you by us or one of our affiliates as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect any optional withdrawal benefit rider on both Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used to set Benefit Payments is based on the investment performance of your Sub-Accounts. - Benefit Payments cannot be carried forward from one year to the next. You will not be warned if you take less than the maximum withdrawals available without triggering recalculation of your Benefit Payments. - Annual Surrenders exceeding 7% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years. - Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount. - Voluntary or involuntary annuitization will terminate Benefit Payments. Annuity Payout options available subsequent to the Annuity Commencement Date may be less than Benefit Payments. - There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable. - The fee for this rider may increase if and when a step-up is elected. There are no assurances as to the fee we will be charging at the time of each step-up. This is subject to the maximum fee disclosed in the Synopsis and this section. - When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments. - Withdrawals can deplete and even eliminate death benefits. - We do not automatically increase payments under the Automatic Income Program If your Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Benefit Payments and your eligible Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege. - The 2009 change to the Internal Revenue Code pertaining to Required Minimum Distributions do not change the calculation of your eligible withdrawal amount under the rider if you are enrolled in the Automatic Income Program. APP F-1 ------------------------------------------------------------------------------- APPENDIX F - THE HARTFORD'S LIFETIME INCOME FOUNDATION OBJECTIVE Protect principal from poor market performance, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary multiplied by the applicable Withdrawal Percent. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Examples 1-14 under The Hartford's Lifetime Income Foundation in Appendix A. WHEN CAN YOU BUY THIS RIDER? The Hartford's Lifetime Income Foundation is closed to new investors. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 80. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 81. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would APP F-2 ------------------------------------------------------------------------------- otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on: - Subsequent Premium Payments. Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders. Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the aggregate amount of the partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. See Examples 1-14 under The Hartford's Lifetime Income Foundation in Appendix A. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percent, and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance, - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issue date to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year; you will not be able to carry remaining amounts forward to future Contract Years. IS THIS RIDER DESIGNED TO PAY YOU A DEATH BENEFIT? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar APP F-3 ------------------------------------------------------------------------------- basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? Yes. Anytime following the earlier of Spousal Contract continuation or the 5th Contract Year, the Contract Owner may also elect to revoke the Lifetime Withdrawal Benefits whereupon we will deduct one last pro-rated fee for this rider and only the Guaranteed Minimum Death Benefit shall continue to apply. Certain changes in the Covered Life will also constitute a revocation of the Withdrawal Benefits. A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. In the event that this rider is terminated, whether as a result of your actions or ours, your Lifetime Benefit Payments will cease; your Payment Base will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. WHAT EFFECT DOES PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to the discussion under "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. See Examples 4, 6-8 and 11-14 under The Hartford's Lifetime Income Foundation in Appendix A. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new Relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. APP F-4 ------------------------------------------------------------------------------- You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then we will: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. APP F-5 ------------------------------------------------------------------------------- The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues Annuitant Contract Owner is any There is no Contingent Contract Owner receives Death non-natural entity Annuitant Benefit and this rider terminates
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes. APP F-6 ------------------------------------------------------------------------------- CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales of this rider at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender; and - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new Owner of the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will then terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the age of the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. By annuitizing your Contract and choosing an income option, you will be exchanging your accumulated savings and Death Benefits for a guaranteed income stream. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. APP F-7 ------------------------------------------------------------------------------- If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant is alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Section 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value. Effective October 4, 2013, we are exercising this contractual right for the products described in Appendix D to require that you allocate your Contract Value and future Premium Payments in accordance with the investment restrictions described in Appendix D. Your selected allocations will be automatically re-balanced quarterly. If your allocations do not currently comply with the investment restrictions described in Appendix D, we must receive allocation instructions from you prior to October 4, 2013 that comply with the investment restrictions described in Appendix D. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider. We may modify, add, delete, or substitute (to the extent permitted by applicable law), the asset allocation models, investment pro-grams, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while the rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to "Other Program APP F-8 ------------------------------------------------------------------------------- considerations" under the section entitled "What other ways can you invest?" in Section 4.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model. EXCEPT AS PROVIDED BELOW, FAILURE TO COMPLY WITH THE INVESTMENT RESTRICTIONS WILL RESULT IN TERMINATION OF THE RIDER. IF THE RIDER IS TERMINATED BY US FOR VIOLATION OF APPLICABLE INVESTMENT RESTRICTIONS, WE WILL ASSESS A PRO-RATED SHARE OF THE RIDER CHARGE AND WILL NO LONGER ASSESS A RIDER CHARGE THEREAFTER. TERMINATION OF THE RIDER WILL NOT TERMINATE ANY CONCURRENT GUARANTEED MINIMUM DEATH BENEFIT RIDER. If the rider is terminated by us due to a failure to comply with these investment restrictions, you will have one opportunity to rein-state the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a fifteen business day reinstatement period to do this. The reinstatement period will begin upon termination of the rider. Your right to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the termination or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to termination unless during the reinstatement period the relevant Covered Life qualifies for a new age band. Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. The Return of Premium II rider is closed to new investors. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payment may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. APP F-9 ------------------------------------------------------------------------------- - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or be able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, your Spouse may find continuation of this rider to be unavailable or unattractive after the death of the Covered Life. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. - We do not automatically increase payments under the Automatic Income Program If your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege. - The 2009 change to the Internal Revenue Code pertaining to Required Minimum Distributions do not change the calculation of your eligible withdrawal amount under the rider if you are enrolled in the Automatic Income Program. APP G-1 ------------------------------------------------------------------------------- APPENDIX G - THE HARTFORD'S LIFETIME INCOME BUILDER II OBJECTIVE Protect your investment from poor market performance through potential annual automatic Payment Base increases, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary, as adjusted by annual Payment Base increases, multiplied by the applicable Withdrawal Percent. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for Partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Examples 1-16 under The Hartford's Lifetime Income Builder II in Appendix A. WHEN CAN YOU BUY THIS RIDER? The Hartford's Lifetime Income Builder II is closed to new investors. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 75. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 76. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. We reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. Fee increases will APP G-2 ------------------------------------------------------------------------------- not apply if (a) the age of the Relevant Covered Life is 80 or older; or (b) you notify us of your election to permanently waive automatic Payment Base increases. This fee may not be the same as the fee that we charge new purchasers. Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. We may offer a lower fee to customers who agree to participate in any asset allocation models, investment programs, or fund-of-funds we may designate from time to time. You will receive advanced notice of any fee increase. You may decline the fee increase and permanently waive automatic Payment Base increases by: - Notifying us in writing, verbally or electronically, if available. - Written notifications must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of declining the fee increase. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election. - We will accept your notification up to 60 days prior to the Contract Anniversary on which the fee increase is scheduled to become effective. - We will only honor notifications from the Owner or joint Owner and not through your broker. - Your decision to decline the fee increase and waive automatic Payment Base increases is irrevocable. You will not be able to accept the fee increase and resume automatic Payment Base increases in the future. - If you decline the fee increase, your Lifetime Benefit Payment will continue to be reset on each Contract Anniversary according to the rider's rules. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders as well as automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on certain changes in Covered Lives. See Examples 15 and 16 under The Hartford's Lifetime Income Builder II in Appendix A. - Automatic Payment Base increases. Your Payment Base may fluctuate based on annual "automatic Payment Base increases." You will be qualified for annual automatic Payment Base increases commencing on your first Contract Anniversary. Automatic Payment Base increases will cease upon the earlier of the Annuity Commencement Date or the Contract Anniversary immediately following the Relevant Covered Life's attained age of 80. Automatic Payment Base increases are based on your then current Anniversary Value (prior to the rider charge being taken) divided by your Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10% provided; however, there is no cap on Automatic Payment Base increases if you allocate your Contract Value in one of a number of asset allocation models, investment programs or fund of funds Sub-Accounts designated by us. Automatic Payment Base increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. See Examples 9 and 10 under The Hartford's Lifetime Income Builder II in Appendix A. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. APP G-3 ------------------------------------------------------------------------------- B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that first causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. See Examples 4, 6-8 and 11-14 under The Hartford's Lifetime Income Builder II in Appendix A. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percentage and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance: - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issuance to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year; you will not be able to carry remaining amounts forward to future Contract Years. See Examples 1-6 and 11-14 under The Hartford's Lifetime Income Builder II. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. APP G-4 ------------------------------------------------------------------------------- Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. See Examples 9 and 10 under The Hartford's Lifetime Income Builder II. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DOES PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. See Examples 7, 8 and 10 - 14 under The Hartford's Lifetime Income Builder II. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then we will: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed APP G-5 ------------------------------------------------------------------------------- Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The Maximum Contract Value will be recalculated to equal the Contract Value on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
APP G-6 ------------------------------------------------------------------------------- JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new owner on the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the Covered Life is greater than the age limitation of the rider at the APP G-7 ------------------------------------------------------------------------------- time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. See Example 17 under The Hartford's Lifetime Income Builder II in Appendix A. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those APP G-8 ------------------------------------------------------------------------------- offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value. Effective October 4, 2013, we are exercising this contractual right for the products described in Appendix D to require that you allocate your Contract Value and future Premium Payments in accordance with the investment restrictions described in Appendix D. Your selected allocations will be automatically re-balanced quarterly. If your allocations do not currently comply with the investment restrictions described in Appendix D, we must receive allocation instructions from you prior to October 4, 2013 that comply with the investment restrictions described in Appendix D. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider. We may modify, add, delete, or substitute (to the extent permitted by applicable law), the asset allocation models, investment pro-grams, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while the rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to "Other Program considerations" under the section entitled "What other ways can you invest?" in Section 4.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model. EXCEPT AS PROVIDED BELOW, FAILURE TO COMPLY WITH THE INVESTMENT RESTRICTIONS WILL RESULT IN TERMINATION OF THE RIDER. IF THE RIDER IS TERMINATED BY US FOR VIOLATION OF APPLICABLE INVESTMENT RESTRICTIONS, WE WILL ASSESS A PRO-RATED SHARE OF THE RIDER CHARGE AND WILL NO LONGER ASSESS A RIDER CHARGE THEREAFTER. TERMINATION OF THE RIDER WILL NOT TERMINATE ANY CONCURRENT GUARANTEED MINIMUM DEATH BENEFIT RIDER. If the rider is terminated by us due to a failure to comply with these investment restrictions, you will have one opportunity to rein-state the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a fifteen business day reinstatement period to do this. The reinstatement period will begin upon termination of the rider. Your right to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the termination or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to termination unless during the reinstatement period the relevant Covered Life qualifies for a new age band. Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. See Examples 9 and 10 under The Hartford Lifetime Income Builder II in Appendix A. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. APP G-9 ------------------------------------------------------------------------------- OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. In the event that this rider is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the Standard Death Benefits or able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of this rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. - We do not automatically increase payments under the Automatic Income Program If your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege. - The 2009 change to the Internal Revenue Code pertaining to Required Minimum Distributions do not change the calculation of your eligible withdrawal amount under the rider if you are enrolled in the Automatic Income Program. APP H-1 ------------------------------------------------------------------------------- APPENDIX H - OPTIONAL RIDER INVESTMENT RESTRICTIONS (Applicable to the following products: Hartford Leaders IV, Hartford Leaders Plus IV, Hartford Leaders Access IV, Hartford Leaders Edge IV, and Hartford Leaders Outlook IV) You must allocate your Account Value in accordance with the following investment restrictions prior to October 4, 2013: (1) SELF SELECT (SELECTED LIB RIDERS EFFECTIVE 5/01/13) CATEGORY 1: FIXED INCOME RULE: MINIMUM 40% OF ALLOCATION CATEGORY 2: ACCEPTABLE INVESTMENT OPTIONS (EQUITY OR MULTI-ASSET) RULE: MAXIMUM 60% OF ALLOCATION, MAXIMUM 20% IN ANY ONE FUND CATEGORY 3: LIMITED INVESTMENT OPTIONS (EQUITY, MULTI-ASSET, OR BOND) RULE: MAXIMUM 20% OF ALLOCATION, MAXIMUM OF 10% IN ANY ONE FUND
CATEGORY 1: FIXED INCOME RULE: MINIMUM 40% OF ALLOCATION American Funds Bond HLS Fund Hartford Money Market HLS Fund Hartford Total Return Bond HLS Fund Hartford U.S. Government Securities HLS Fund Invesco V.I. Money Market Fund* (available on or about July 15, 2013) MFS Research Bond Series CATEGORY 2: ACCEPTABLE INVESTMENT OPTIONS (EQUITY OR MULTI-ASSET) RULE: MAXIMUM 60% OF ALLOCATION, MAXIMUM 20% IN ANY ONE FUND AllianceBernstein VPS Balanced Wealth Strategy Portfolio AllianceBernstein VPS International Growth Portfolio AllianceBernstein VPS International Value Portfolio AllianceBernstein VPS Value Portfolio American Funds Asset Allocation HLS Fund American Funds Blue Chip Income and Growth HLS Fund American Funds Global Growth and Income HLS Fund American Funds Global Growth HLS Fund American Funds Growth HLS Funds American Funds Growth-Income HLS Funds Fidelity VIP Contrafund Portfolio Fidelity VIP Dynamic Capital Appreciation Portfolio Fidelity VIP Growth Portfolio Franklin Flex Cap Growth Securities Fund Franklin Income Securities Fund Hartford Balanced HLS Fund Hartford Capital Appreciation HLS Fund Hartford Disciplined Equity HLS Fund Hartford Dividend and Growth HLS Fund Hartford Global Growth HLS Fund Hartford Global Research HLS Fund Hartford Growth HLS Fund Hartford Growth Opportunities HLS Fund Hartford Stock HLS Fund Hartford Value HLS Fund Invesco V.I. Balanced Risk Allocation Fund Invesco V.I. Core Equity Fund Invesco V.I. International Growth Fund Invesco Van Kampen V.I. Growth and Income Fund Lord Abbett Calibrated Dividend Growth Portfolio Lord Abbett Growth and Income Portfolio MFS Growth Series MFS Investors Trust Series APP H-2 ------------------------------------------------------------------------------- MFS Total Return Series MFS Value Series Mutual Global Discovery Securities Fund Mutual Shares Securities Fund Oppenheimer Capital Appreciation Fund/VA Oppenheimer Global Securities Fund/VA Oppenheimer Main Street Fund/VA Oppenheimer Value Fund/VA Putnam VT Global Asset Allocation Fund Putnam VT International Equity Fund Putnam VT International Value Fund Templeton Foreign Securities Fund CATEGORY 3: LIMITED INVESTMENT OPTIONS (EQUITY, MULTI-ASSET, OR BOND) RULE: MAXIMUM 20% OF ALLOCATION, MAXIMUM OF 10% IN ANY ONE FUND AllianceBernstein VPS Small/Mid Cap Value Portfolio American Funds Global Bond HLS Fund American Funds Global Small Capitalization HLS Fund American Funds International HLS Fund American Funds New World HLS Fund Fidelity VIP Mid Cap Portfolio Fidelity VIP Value Strategies Portfolio Franklin Small Cap Value Securities Fund Franklin Small-Mid Cap Growth Securities Fund Franklin Strategic Income Securities Fund Hartford High Yield HLS Fund Hartford International Opportunities HLS Fund Hartford Small Company HLS Fund Hartford Small/Mid Cap Equity HLS Fund Hartford SmallCap Growth HLS Fund Invesco V.I. Small Cap Equity Fund Invesco Van Kampen V.I. American Value Fund Lord Abbett Bond-Debenture Portfolio Oppenheimer Main Street Small- & Mid- Cap Fund/VA Putnam VT Diversified Income Fund Putnam VT Small Cap Value Fund Templeton Developing Markets Securities Fund Templeton Global Bond Securities Fund Templeton Growth Securities Fund UIF Mid Cap Growth Portfolio APP H-3 ------------------------------------------------------------------------------- (2) ASSET ALLOCATIONS MODELS (EFFECTIVE 5/1/13)
HARTFORD LIB & LIF RIDERS FUND CONSERVATIVE 2 BALANCED 2 MODERATE GROWTH 2 --------------------------------------------------------------------------------------------------------------------- Invesco V.I. International Growth Fund 2% 0% 0% Invesco V.I. Small Cap Equity Fund 2% 3% 2% American Funds Growth HLS Fund 4% 6% 7% American Funds International HLS Fund 3% 4% 5% Fidelity VIP Mid Cap Portfolio 2% 3% 3% Franklin Small Cap Value Securities Fund 0% 0% 2% Franklin Strategic Income Securities Fund 3% 2% 0% Hartford Capital Appreciation HLS Fund 4% 5% 6% Hartford Disciplined Equity HLS Fund 6% 7% 8% Hartford Growth Opportunities HLS Fund 4% 5% 6% Hartford High Yield HLS Fund 4% 2% 0% Hartford International Opportunities HLS Fund 2% 3% 4% Hartford Total Return Bond HLS Fund 25% 22% 20% MFS Research Bond Series 24% 22% 20% MFS Value Series 5% 6% 7% Mutual Shares Securities Fund 4% 5% 6% Templeton Foreign Securities Fund 2% 3% 4% Templeton Global Bond Securities Fund 4% 2% 0% TOTAL 100% 100% 100%
APP H-4 ------------------------------------------------------------------------------- (3) INVESTMENT MODELS (LIB RIDERS EFFECTIVE 5/1/13) INVESTMENT MODEL OPTION A: HARTFORD Hartford Total Return Bond HLS Fund 40% Hartford Capital Appreciation HLs Fund 20% Hartford Dividend and Growth HLS Fund 20% Hartford Small Company HLS Fund 10% Hartford International Opportunities HLS Fund 10% TOTAL 100%
INVESTMENT MODEL OPTION B: FRANKLIN MFS Research Bond Series 40% Franklin Small-Mid Cap Growth Securities Fund 10% Templeton Growth Securities Fund 10% Mutual Shares Securities Fund 20% Mutual Global Discovery Securities Fund 20% TOTAL 100%
INVESTMENT MODEL OPTION C: AMERICAN American Funds Bond HLS Fund 40% American Funds Global Small Capitalization HLS Fund 10% American Funds Growth HLS Fund 20% American Funds Growth-Income HLSFund 20% American Funds International HLS Fund 10% TOTAL 100%
INVESTMENT MODEL OPTION D: DIVERSIFIVE MFS Research Bond Series 40% Hartford Dividend & Growth HLS Fund 20% MFS Growth Series 20% Templeton Foreign Securities Fund 10% Invesco V.I. International Growth Fund 10% TOTAL 100%
To obtain a Statement of Additional Information, please complete the form below and mail to: Hartford Life Insurance Company/Hartford Life and Annuity Insurance Company PO Box 14293 Lexington, KY 40512-4293 Please send a Statement of Additional Information to me at the following address: ---------------------------------------------------------------- Name ---------------------------------------------------------------- Address ---------------------------------------------------------------- City/State Zip Code Contract Name Issue Date PART B STATEMENT OF ADDITIONAL INFORMATION HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN HARTFORD LEADERS ULTRA This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the prospectus. To obtain a prospectus, send a written request to Hartford Life Insurance Company, P. O. Box 14293, Lexington, KY 40512-4293 Date of Prospectus: May 1, 2013 Date of Statement of Additional Information: May 1, 2013 TABLE OF CONTENTS GENERAL INFORMATION 2 Safekeeping of Assets 2 Experts 2 Non-Participating 2 Misstatement of Age or Sex 2 Principal Underwriter 2 Additional Payments 2 PERFORMANCE RELATED INFORMATION 3 Total Return for all Sub-Accounts 3 Yield for Sub-Accounts 4 Money Market Sub-Accounts 4 Additional Materials 5 Performance Comparisons 5 ACCUMULATION UNIT VALUES 6 FINANCIAL STATEMENTS SA-1
2 ------------------------------------------------------------------------------- GENERAL INFORMATION SAFEKEEPING OF ASSETS We hold title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from our general corporate assets. Records are maintained of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts. EXPERTS The consolidated financial statements of Hartford Life Insurance Company as of December 31, 2012 and 2011, and for each of the three years in the period ended December 31, 2012 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated March 13, 2013, and the statements of assets and liabilities of Hartford Life Insurance Company Separate Account Seven as of December 31, 2012, and the related statements of operations for each of the periods presented in the year then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated March 28, 2013, which reports are both included in the Statement of Additional Information which is part of the Registration Statement. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is City Place, 32nd Floor, 185 Asylum Street, Hartford, Connecticut 06103-3402. NON-PARTICIPATING The Contract is non-participating and we pay no dividends. MISSTATEMENT OF AGE OR SEX If an Annuitant's age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest. PRINCIPAL UNDERWRITER The Contracts, which are offered continuously, are distributed by Hartford Securities Distribution Company, Inc. ("HSD"). HSD serves as Principal Underwriter for the securities issued with respect to the Separate Account. HSD is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of the National Association of Securities Dealers, Inc. HSD is an affiliate of ours. Both HSD and Hartford are ultimately controlled by The Hartford Financial Services Group, Inc. The principal business address of HSD is the same as ours. We currently pay HSD underwriting commissions for its role as Principal Underwriter of all variable annuities associated with this Separate Account. For the past three years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as Principal Underwriter has been: 2012: $11,308,260; 2011: $12,620,888; and 2010: $16,548,405. ADDITIONAL PAYMENTS TO FINANCIAL INTERMEDIARIES As stated in the prospectus, we (or our affiliates) pay Additional Payments to Financial Intermediaries. In addition to the Financial Intermediaries listed in the prospectus with whom we have an ongoing contractual arrangement to make Additional Payments, listed below are all Financial Intermediaries that received Additional Payments of at least $100 in 2012 of items such as sponsorship of meetings, education seminars, and travel and entertainment, whether or not an ongoing contractual relationship exists. Acument Securities, Inc., Aegis Investments, Inc., Allen & Company of Florida, Inc., Alliance Bank, Allied Beacon Partners, American Century Brokerage, American Funds & Trust, Inc., American Independent Securities Group, American Portfolios Financial Services, Ameriprise Financial Services, Inc., Ameritas Investment Corp., Arvest Asset Management, Ausdal Financial Partners Inc., AXA Advisors, LLC, B.C. Ziegler and Company, BancWest Investment Services, Inc., Bank of the West, Bank Securities Association, Bankers & Investors Co., BB&T Investment Services, Inc., BBVA Compass Investment Solutions, BCG Securities, Inc., Beaconsfield Financial Services, Inc., Benchmark Investments, Inc., Benjamin F. Edwards, Berthel, Fisher & Co. Financial Services, Boenning & Scattergood, Inc., Broker Dealer Financial Svcs Corp., Brown, Lisle & Cummings, Inc., Bruce A. Lefavi Securities, Inc., Cadaret, Grant & Co., Inc., Cambridge Investment Research, Inc., Cantella & Co., Inc., Capital Analysts, Inc., Capital Financial Services Inc., Capital Guardian, LLC, Capital Investment Group, Inc., Capitol Securities Management, Inc., Cary Street Partners, LLC, CCF Investments, Inc., CCO Investment Services Corp., Centaurus Financial, Inc., Center Street Securities, Inc., CFD Investments, Inc., Charles Schwab & Company, Inc, Citadel Federal Credit Union, Citigroup Global Markets, Inc., Citizens Bank, Comerica Securities, 3 ------------------------------------------------------------------------------- Commerce Bank, N.A., Commonwealth Financial Network, Consolidated Federal C.U., Coordinated Capital Securities, Inc., CorePlus Federal Credit Union, Crown Capital Securities, LLP, Cuna Brokerage Services, Inc., Cuso Financial Services, LLP., Cutter & Company, Inc., D.A. Davidson & Company, David A. Noyes & Company, Deutsche Bank Securities, Inc., Dominion Investor Services, Inc., Eagle One Investments, LLC, Edward Jones, Emerson Equity, LLC, Equity Services, Inc., ESB Financial, Essex Financial Services, Inc., Essex National Securities, Inc., FCG Advisors, Feltl & Company, Fifth Third Bank, Fifth Third Securities, Financial Network Investment Corp., Financial Telesis, Inc., First Allied Securities, First Citizens Bank, First Citizens Bank & Trust Co., First Citizens Investor Services, First Heartland Capital, Inc., First Interstate Bank, First Midwest Securities, First Tennessee Bank, First Tennessee Brokerage, Inc., First Western Advisors, FNIC F.I.D. Div., Folger Nolan Fleming Douglas, Foresters Equity Services, Inc., Frost Brokerage Services Inc., Frost National Bank, FSC Securities Corporation, FSIC, Fulcrum Securities, Inc., Geneos Wealth Management, Inc., Genworth Financial Securities Corp., Gilford Securities, Inc., Girard Securities, Inc., Greycourt & Company, GWN Securities, Inc., H. Beck, Inc., H. D. Vest Investment Services, Harbour Financial Services, Harbour Investments, Inc., Harris Investor Services, Inc., Harris Investors, Harvest Capital LLC, HBW Securities, LLC, Hefren - Tillotson Masterplan, Heim Young & Associates, Inc., Hightower Securities LLC, Hornor, Townsend & Kent, Inc., HSBC Bank USA, National Association, HSBC Securities (USA) Inc., Huntington Valley Bank, Huntleigh Securities Corp., Independent Financial Group, LLC, Infinex Investment, Inc., ING Financial Advisors, LLC, ING Financial Partners, Invesco, INVEST Financial Corporation, Investacorp, Inc., Investment Centers of America, Investment Professionals, Inc., Investors Capital Corp., J.J.B. Hilliard, W.L. Lyons LLC, J. P. Turner & Company, LLC, J.W. Cole Financial, Inc., Janney Montgomery Scott, Inc., JHS Capital Advisors, Inc., Kern Schools Federal Credit Union, KeyBank, NA, Key Investment Services, LLC., KMS Financial Services, Inc., Kovack Securities, Inc., L.O. Thomas & Company, Lara, Shull & May, LTD, Larimer Capital Corporation, LaSalle Street Securities, Inc., Legacy Asset Securities, Inc., Legend Equities Corporation, Leigh Baldwin & Co., LLC, Liberty Group, LLC, Lincoln Financial Advisors Corp., Lincoln Financial Dist., Inc., Lincoln Financial Securities, Lincoln Investment Planning, Inc., Linsco / Private Ledger / Bank Div., LPL Financial Corporation, LPL Financial Services, M & T Bank, M & T Securities, Inc., Merrill Lynch, Inc., MetLife Securities, Inc., MidAmerica Financial Services, Inc., MidWest One Bank, Money Concepts Capital Corp., Morgan Keegan & Co., Inc., Morgan Keegan FID Division, Morgan Stanley Smith Barney, Multi-Financial Securities Corp., National Planning Corporation, National Securities Corp., Navy Federal Brokerage Services, Navy Federal Credit Union, Neidiger, Tucker, Bruner, Inc., New England Securities Corp., Newbridge Securities Corp., Next Financial Group, Inc., NFP Securities, Inc., Northern Trust, N.A., Northwestern Mutual Inv. Services, O.N. Equity Sales Co., OFG Financial Services, Inc., OneAmerica Securities, Inc., Oppenheimer & Co., Inc., Packerland Brokerage Services, Inc., Park Avenue Securities, LLC, Patelco Credit Union, Paulson Investment Company Inc., Penrod Financial Group, Peoples Securities, Inc., Peoples United Bank, Pershing, PlanMember Securities Corp., Prime Capital Services, Inc., PrimeVest Financial Services Inc., Princor Financial Service Corp., ProEquities, Inc., Prospera Financial Services, Pruco Securities Corp., Purshe Kaplan Sterling Investment, Putnam Investments, QA3 Financial Corp., Quest Capital Strategies, Inc., Questar Capital Corp., Raymond James Financial Services, Inc., Raymond James & Associates Inc., Raymond James FID Division, RBC Bank, RBC Capital Markets Corp., RBS Citizens, NA, Resource Horizons Group, LLC, Ridgeway & Conger, Inc., RiverStone Wealth Management, Inc., Robert W. Baird & Co., Inc., Royal Alliance Associates, Inc., Sagepoint Financial, Inc., Sammons Securities Company LLC, Sanders Morris Harris, Inc., Scott & Stringfellow, Inc., Securian Financial Services, Securities America, Inc., Securities Service Network, Inc., Sigma Financial Corporation, Signator Investors Inc., Signature Securities Group, SII Investments, Sloan Securities Corp., Sorrento Pacific Financial LLC, Southwest Securities, Inc., Sovereign Bank, Stephens, Inc., Sterne Agee & Leach, Inc., Stifel, Nicolaus & Co., Inc., Stockcross Financial Services, Inc., Summit Bank, Summit Brokerage Services Inc., Sunset Financial Services, Inc., SunTrust Investment Services, Inc., Symetra Investment Services, Inc., Synovus Securities, TD Ameritrade, Inc., TFS Securities, Inc., The Capital Group Securities, Inc., The Huntington Investment Co., The Leaders Group, Inc., Tower Square Securities, Inc., Transamerica Financial Advisor, Triad Advisors, Inc., TrustCore Investments, Inc., Trustmont Financial Group, Inc., UBS Financial Services, Inc., UCB Investment Services, Inc., Union Bank & Trust, Union Bank of California, NA, UnionBanc Investment Services, United Brokerage Services, Inc., United Community Bank, United Planners Financial Services of America, US Bancorp FID, US Bancorp Investments, US Bank, NA, VALIC Financial Advisors, Inc., Valmark Securities, VanDerbilt Securities, LLC, VSR Financial Services, Inc., Waddell & Reed, Inc., Walnut Street Securities, Inc., Wayne Hummer Investments, LLC, Webster Bank, N.A., Wedbush Morgan Securities, Inc., Wells Fargo Adv. Financial Network LLC, Wells Fargo Advisors, LLC, Wells Fargo Advisors, LLC ISG, Wells Fargo Ins. Services Inv. Adv., WesBanco Securities, Inc., WFG Investments, Inc., William C. Burnside & Company, Woodbury Financial Services, Inc., World Equity Group, Inc. and WRP Investments, Inc. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. TOTAL RETURN FOR ALL SUB-ACCOUNTS When a Sub-Account advertises its standardized total return, it will usually be calculated from the later of the date of the inception of the Sub-Account or Separate Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not 4 ------------------------------------------------------------------------------- been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, we use a hypothetical initial premium payment of $1,000.00 and deduct for the Total Annual Fund Operating Expenses, any Sales Charge, Separate Account Annual Expenses without any optional charge deductions and the Annual Maintenance Fee. The formula we use to calculate standardized total return is P(1+T)n = ERV. In this calculation, "P" represents a hypothetical initial premium payment of $1,000.00, "T" represents the average annual total return, "n" represents the number of years and "ERV" represents the redeemable value at the end of the period. In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the later of the date of inception of the underlying fund or Separate Account for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that non-standardized total return includes the impact of a minimum 1% sales charge, if applicable, and the Annual Maintenance Fee is not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. A Sub-Account may advertise non-standardized total returns for periods predating its inception as an investment option in this variable annuity. Such non-standardized total returns reflect the adjusted historical returns of the underlying Fund in which the Sub-Account invests, as adjusted for certain Separate Account annual expenses (Mortality and Expense Risk charges and Administrative Fees), but excludes adjustments for optional riders or deductions for Annual Maintenance Fees, sales charges, premium taxes and federal/state taxes (including possible penalties). To the extent that a Sub-Account invests in a Feeder Fund (a Feeder Fund is a fund that invests all of its assets into a corresponding Master Fund), the Feeder Fund's performance for periods pre-dating the inception of the Feeder Fund and/or its inclusion within a Separate Account may include the performance of the Master Fund since the inception of the Master Fund, as adjusted for the Feeder Fund's operating expenses. In such case, the performance of a Feeder Fund will be lower than the corresponding Master Fund because of Feeder Fund operating expenses. Performance may include the effect of waivers and reimbursements, in the absence of which performance may have been lower. YIELD FOR SUB-ACCOUNTS If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance. The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period. The formula we use to calculate yield is: YIELD = 2[(a - b/cd +1) TO THE POWER OF 6 - 1]. In this calculation, "a" represents the net investment income earned during the period by the underlying fund, "b" represents the expenses accrued for the period, "c" represents the average daily number of Accumulation Units outstanding during the period and "d" represents the maximum offering price per Accumulation Unit on the last day of the period. MONEY MARKET SUB-ACCOUNTS At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance. Current yield of a money market fund Sub-Account is calculated for a seven-day period or the "base period" without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. We take a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. We then subtract an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or "BPR." Once the base period return is calculated, we then multiply it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent. The formula for this calculation is YIELD = BPR x (365/7), where BPR = (A - B)/C. "A" is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. "B" is equal to the amount that Hartford deducts for mortality and expense risk charge, any applicable administrative charge and the Annual Maintenance Fee. "C" represents the value of the Sub-Account at the beginning of the base period. Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation we use is: EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1) TO THE POWER OF 365/7] - 1. 5 ------------------------------------------------------------------------------- ADDITIONAL MATERIALS We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives. PERFORMANCE COMPARISONS Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract's sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services. 6 ------------------------------------------------------------------------------- ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in this Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The tables below show all possible Accumulation Unit Values corresponding to all combinations of optional benefits. Tables showing only the highest and lowest possible Accumulation Unit Values are shown in the prospectus, which assumes you select either no optional benefits or all optional benefits. HARTFORD LIFE INSURANCE COMPANY CORE
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.435 $9.855 $9.048 $7.361 $10.403 Accumulation Unit Value at end of period $10.565 $9.435 $9.855 $9.048 $7.361 Number of Accumulation Units outstanding at end of period (in thousands) 120 132 145 80 28 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.328 $9.772 $8.998 $7.343 $10.398 Accumulation Unit Value at end of period $10.413 $9.328 $9.772 $8.998 $7.343 Number of Accumulation Units outstanding at end of period (in thousands) 82 85 68 43 13 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.256 $9.717 $8.965 $7.331 $10.395 Accumulation Unit Value at end of period $10.313 $9.256 $9.717 $8.965 $7.331 Number of Accumulation Units outstanding at end of period (in thousands) 6 9 10 10 8 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.168 $9.648 $8.924 $7.316 - Accumulation Unit Value at end of period $10.189 $9.168 $9.648 $8.924 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 - 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.151 $9.635 $8.916 $7.313 $10.390 Accumulation Unit Value at end of period $10.164 $9.151 $9.635 $8.916 $7.313 Number of Accumulation Units outstanding at end of period (in thousands) 4 7 7 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.047 $13.772 $12.777 $10.505 - Accumulation Unit Value at end of period $14.456 $13.047 $13.772 $12.777 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.916 $8.341 $7.500 $5.454 $10.464 Accumulation Unit Value at end of period $7.870 $6.916 $8.341 $7.500 $5.454 Number of Accumulation Units outstanding at end of period (in thousands) 45 50 52 50 41 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $6.837 $8.270 $7.459 $5.441 $10.459 Accumulation Unit Value at end of period $7.757 $6.837 $8.270 $7.459 $5.441 Number of Accumulation Units outstanding at end of period (in thousands) 9 10 11 11 5 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
7 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.784 $8.224 $7.432 $5.432 $10.455 Accumulation Unit Value at end of period $7.682 $6.784 $8.224 $7.432 $5.432 Number of Accumulation Units outstanding at end of period (in thousands) 11 15 10 11 15 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $6.720 $8.166 $7.398 $5.420 - Accumulation Unit Value at end of period $7.590 $6.720 $8.166 $7.398 - Number of Accumulation Units outstanding at end of period (in thousands) 16 14 14 9 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.707 $8.154 $7.391 $5.418 $10.450 Accumulation Unit Value at end of period $7.572 $6.707 $8.154 $7.391 $5.418 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.184 $16.069 $14.602 $10.731 - Accumulation Unit Value at end of period $14.848 $13.184 $16.069 $14.602 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $5.592 $7.028 $6.823 $5.142 $10.788 Accumulation Unit Value at end of period $6.306 $5.592 $7.028 $6.823 $5.142 Number of Accumulation Units outstanding at end of period (in thousands) 492 483 447 423 245 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.528 $6.969 $6.786 $5.129 $10.783 Accumulation Unit Value at end of period $6.215 $5.528 $6.969 $6.786 $5.129 Number of Accumulation Units outstanding at end of period (in thousands) 97 99 92 84 34 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.486 $6.929 $6.761 $5.121 $10.779 Accumulation Unit Value at end of period $6.156 $5.486 $6.929 $6.761 $5.121 Number of Accumulation Units outstanding at end of period (in thousands) 70 68 69 68 47 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $5.433 $6.880 $6.730 $5.110 - Accumulation Unit Value at end of period $6.082 $5.433 $6.880 $6.730 - Number of Accumulation Units outstanding at end of period (in thousands) 28 26 27 26 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.423 $6.871 $6.724 $5.108 $10.774 Accumulation Unit Value at end of period $6.067 $5.423 $6.871 $6.724 $5.108 Number of Accumulation Units outstanding at end of period (in thousands) 10 10 10 9 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.179 $14.199 $13.931 $10.610 - Accumulation Unit Value at end of period $12.476 $11.179 $14.199 $13.931 - Number of Accumulation Units outstanding at end of period (in thousands) 2 1 1 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
8 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.645 $11.796 $9.436 $6.697 $10.797 Accumulation Unit Value at end of period $12.455 $10.645 $11.796 $9.436 $6.697 Number of Accumulation Units outstanding at end of period (in thousands) 46 47 41 33 22 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.523 $11.696 $9.384 $6.680 $10.792 Accumulation Unit Value at end of period $12.275 $10.523 $11.696 $9.384 $6.680 Number of Accumulation Units outstanding at end of period (in thousands) 9 9 13 5 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.443 $11.630 $9.350 $6.669 $10.788 Accumulation Unit Value at end of period $12.157 $10.443 $11.630 $9.350 $6.669 Number of Accumulation Units outstanding at end of period (in thousands) 25 25 31 23 22 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.344 $11.548 $9.307 $6.656 - Accumulation Unit Value at end of period $12.011 $10.344 $11.548 $9.307 - Number of Accumulation Units outstanding at end of period (in thousands) 8 7 8 3 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.324 $11.532 $9.298 $6.653 $10.783 Accumulation Unit Value at end of period $11.983 $10.324 $11.532 $9.298 $6.653 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.818 $18.833 $15.223 $10.919 - Accumulation Unit Value at end of period $19.471 $16.818 $18.833 $15.223 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.017 $8.437 $7.667 $6.414 $10.567 Accumulation Unit Value at end of period $9.148 $8.017 $8.437 $7.667 $6.414 Number of Accumulation Units outstanding at end of period (in thousands) 9 9 9 7 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.926 $8.366 $7.625 $6.398 $10.562 Accumulation Unit Value at end of period $9.017 $7.926 $8.366 $7.625 $6.398 Number of Accumulation Units outstanding at end of period (in thousands) 1 8 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.865 $8.318 $7.598 $6.388 $10.559 Accumulation Unit Value at end of period $8.930 $7.865 $8.318 $7.598 $6.388 Number of Accumulation Units outstanding at end of period (in thousands) - - 1 1 3 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.790 $8.260 $7.563 $6.375 - Accumulation Unit Value at end of period $8.823 $7.790 $8.260 $7.563 - Number of Accumulation Units outstanding at end of period (in thousands) - - - 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
9 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.775 $8.248 $7.556 $6.372 $10.553 Accumulation Unit Value at end of period $8.802 $7.775 $8.248 $7.556 $6.372 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.618 $13.418 $12.323 $10.418 - Accumulation Unit Value at end of period $14.247 $12.618 $13.418 $12.323 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS ASSET ALLOCATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.777 $9.801 $8.850 $7.251 $10.073 Accumulation Unit Value at end of period $11.182 $9.777 $9.801 $8.850 $7.251 Number of Accumulation Units outstanding at end of period (in thousands) 362 404 397 374 210 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.670 $9.723 $8.806 $7.236 $10.072 Accumulation Unit Value at end of period $11.027 $9.670 $9.723 $8.806 $7.236 Number of Accumulation Units outstanding at end of period (in thousands) 104 109 114 36 26 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.600 $9.671 $8.777 $7.227 $10.072 Accumulation Unit Value at end of period $10.924 $9.600 $9.671 $8.777 $7.227 Number of Accumulation Units outstanding at end of period (in thousands) 85 49 33 36 33 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.512 $9.607 $8.740 $7.215 - Accumulation Unit Value at end of period $10.797 $9.512 $9.607 $8.740 - Number of Accumulation Units outstanding at end of period (in thousands) 74 78 73 40 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.495 $9.594 $8.733 $7.212 $10.072 Accumulation Unit Value at end of period $10.772 $9.495 $9.594 $8.733 $7.212 Number of Accumulation Units outstanding at end of period (in thousands) 4 8 9 11 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.436 $13.610 $12.420 $10.283 - Accumulation Unit Value at end of period $15.205 $13.436 $13.610 $12.420 - Number of Accumulation Units outstanding at end of period (in thousands) 110 66 50 42 - AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.074 $9.298 $8.408 $6.680 $10.221 Accumulation Unit Value at end of period $10.174 $9.074 $9.298 $8.408 $6.680 Number of Accumulation Units outstanding at end of period (in thousands) 135 151 154 148 55 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.974 $9.224 $8.366 $6.666 $10.221 Accumulation Unit Value at end of period $10.032 $8.974 $9.224 $8.366 $6.666 Number of Accumulation Units outstanding at end of period (in thousands) 55 56 59 51 21 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS ASSET ALLOCATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
10 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.909 $9.175 $8.338 $6.657 $10.220 Accumulation Unit Value at end of period $9.939 $8.909 $9.175 $8.338 $6.657 Number of Accumulation Units outstanding at end of period (in thousands) 36 42 47 46 37 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.827 $9.114 $8.303 $6.646 - Accumulation Unit Value at end of period $9.824 $8.827 $9.114 $8.303 - Number of Accumulation Units outstanding at end of period (in thousands) 27 29 28 22 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.811 $9.102 $8.296 $6.644 $10.220 Accumulation Unit Value at end of period $9.801 $8.811 $9.102 $8.296 $6.644 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.640 $14.126 $12.908 $10.363 - Accumulation Unit Value at end of period $15.134 $13.640 $14.126 $12.908 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.815 $10.346 $9.869 $8.904 $10.017 Accumulation Unit Value at end of period $11.216 $10.815 $10.346 $9.869 $8.904 Number of Accumulation Units outstanding at end of period (in thousands) 1,212 1,179 1,261 1,154 616 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.696 $10.264 $9.820 $8.886 $10.017 Accumulation Unit Value at end of period $11.060 $10.696 $10.264 $9.820 $8.886 Number of Accumulation Units outstanding at end of period (in thousands) 313 307 314 216 101 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.618 $10.209 $9.787 $8.874 $10.017 Accumulation Unit Value at end of period $10.957 $10.618 $10.209 $9.787 $8.874 Number of Accumulation Units outstanding at end of period (in thousands) 144 146 167 178 101 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.521 $10.141 $9.747 $8.860 - Accumulation Unit Value at end of period $10.830 $10.521 $10.141 $9.747 - Number of Accumulation Units outstanding at end of period (in thousands) 72 70 82 62 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.502 $10.128 $9.738 $8.857 $10.017 Accumulation Unit Value at end of period $10.805 $10.502 $10.128 $9.738 $8.857 Number of Accumulation Units outstanding at end of period (in thousands) 27 27 29 30 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.180 $11.775 $11.351 $10.349 - Accumulation Unit Value at end of period $12.500 $12.180 $11.775 $11.351 - Number of Accumulation Units outstanding at end of period (in thousands) 8 11 8 7 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
11 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.256 $10.930 $10.556 $9.767 $9.982 Accumulation Unit Value at end of period $11.765 $11.256 $10.930 $10.556 $9.767 Number of Accumulation Units outstanding at end of period (in thousands) 118 120 130 119 87 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.133 $10.843 $10.503 $9.748 $9.982 Accumulation Unit Value at end of period $11.601 $11.133 $10.843 $10.503 $9.748 Number of Accumulation Units outstanding at end of period (in thousands) 17 22 23 26 13 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.051 $10.785 $10.468 $9.735 $9.982 Accumulation Unit Value at end of period $11.493 $11.051 $10.785 $10.468 $9.735 Number of Accumulation Units outstanding at end of period (in thousands) 27 31 29 36 25 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.950 $10.713 $10.424 $9.718 - Accumulation Unit Value at end of period $11.360 $10.950 $10.713 $10.424 - Number of Accumulation Units outstanding at end of period (in thousands) 12 9 8 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.930 $10.699 $10.416 $9.715 $9.982 Accumulation Unit Value at end of period $11.333 $10.930 $10.699 $10.416 $9.715 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.921 $11.698 $11.417 $10.676 - Accumulation Unit Value at end of period $12.330 $11.921 $11.698 $11.417 - Number of Accumulation Units outstanding at end of period (in thousands) - 1 - - - AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.517 $9.096 $8.268 $6.007 $10.078 Accumulation Unit Value at end of period $9.866 $8.517 $9.096 $8.268 $6.007 Number of Accumulation Units outstanding at end of period (in thousands) 371 407 460 454 313 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $9.024 $8.226 $5.994 $10.078 Accumulation Unit Value at end of period $9.728 $8.423 $9.024 $8.226 $5.994 Number of Accumulation Units outstanding at end of period (in thousands) 174 186 190 195 143 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.362 $8.976 $8.199 $5.986 $10.078 Accumulation Unit Value at end of period $9.638 $8.362 $8.976 $8.199 $5.986 Number of Accumulation Units outstanding at end of period (in thousands) 52 87 125 125 70 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.285 $8.916 $8.165 $5.976 - Accumulation Unit Value at end of period $9.526 $8.285 $8.916 $8.165 - Number of Accumulation Units outstanding at end of period (in thousands) 49 51 40 29 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
12 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.270 $8.904 $8.158 $5.974 $10.078 Accumulation Unit Value at end of period $9.504 $8.270 $8.904 $8.158 $5.974 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 6 10 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.492 $15.641 $14.366 $10.548 - Accumulation Unit Value at end of period $16.612 $14.492 $15.641 $14.366 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.775 $9.784 $8.893 $6.351 $10.058 Accumulation Unit Value at end of period $10.589 $8.775 $9.784 $8.893 $6.351 Number of Accumulation Units outstanding at end of period (in thousands) 92 106 113 100 58 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.679 $9.706 $8.848 $6.338 $10.058 Accumulation Unit Value at end of period $10.442 $8.679 $9.706 $8.848 $6.338 Number of Accumulation Units outstanding at end of period (in thousands) 29 35 37 38 25 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.615 $9.654 $8.819 $6.330 $10.057 Accumulation Unit Value at end of period $10.345 $8.615 $9.654 $8.819 $6.330 Number of Accumulation Units outstanding at end of period (in thousands) 31 33 54 28 17 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.537 $9.590 $8.782 $6.319 - Accumulation Unit Value at end of period $10.225 $8.537 $9.590 $8.782 - Number of Accumulation Units outstanding at end of period (in thousands) 26 24 23 22 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.521 $9.577 $8.774 $6.317 $10.057 Accumulation Unit Value at end of period $10.201 $8.521 $9.577 $8.774 $6.317 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 3 3 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.221 $16.024 $14.718 $10.622 - Accumulation Unit Value at end of period $16.983 $14.221 $16.024 $14.718 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.699 $9.673 $8.024 $5.054 $10.088 Accumulation Unit Value at end of period $8.960 $7.699 $9.673 $8.024 $5.054 Number of Accumulation Units outstanding at end of period (in thousands) 310 318 293 252 127 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.615 $9.596 $7.984 $5.043 $10.088 Accumulation Unit Value at end of period $8.836 $7.615 $9.596 $7.984 $5.043 Number of Accumulation Units outstanding at end of period (in thousands) 167 183 136 66 37 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
13 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.559 $9.544 $7.957 $5.037 $10.088 Accumulation Unit Value at end of period $8.754 $7.559 $9.544 $7.957 $5.037 Number of Accumulation Units outstanding at end of period (in thousands) 35 27 77 34 33 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.490 $9.481 $7.924 $5.028 - Accumulation Unit Value at end of period $8.652 $7.490 $9.481 $7.924 - Number of Accumulation Units outstanding at end of period (in thousands) 69 69 75 23 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.476 $9.468 $7.917 $5.027 $10.088 Accumulation Unit Value at end of period $8.632 $7.476 $9.468 $7.917 $5.027 Number of Accumulation Units outstanding at end of period (in thousands) 14 16 16 17 18 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.641 $19.859 $16.647 $10.596 - Accumulation Unit Value at end of period $18.014 $15.641 $19.859 $16.647 - Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 1 - AMERICAN FUNDS GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.821 $9.360 $8.007 $5.832 $10.075 Accumulation Unit Value at end of period $10.241 $8.821 $9.360 $8.007 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 1,824 1,953 1,984 1,818 1,172 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.724 $9.285 $7.967 $5.821 $10.075 Accumulation Unit Value at end of period $10.099 $8.724 $9.285 $7.967 $5.821 Number of Accumulation Units outstanding at end of period (in thousands) 654 705 660 453 250 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.661 $9.236 $7.941 $5.813 $10.075 Accumulation Unit Value at end of period $10.005 $8.661 $9.236 $7.941 $5.813 Number of Accumulation Units outstanding at end of period (in thousands) 279 316 353 409 282 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.581 $9.174 $7.907 $5.803 - Accumulation Unit Value at end of period $9.889 $8.581 $9.174 $7.907 - Number of Accumulation Units outstanding at end of period (in thousands) 225 236 243 213 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.566 $9.162 $7.901 $5.801 $10.074 Accumulation Unit Value at end of period $9.866 $8.566 $9.162 $7.901 $5.801 Number of Accumulation Units outstanding at end of period (in thousands) 44 48 48 52 28 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.138 $16.233 $14.033 $10.329 - Accumulation Unit Value at end of period $17.392 $15.138 $16.233 $14.033 - Number of Accumulation Units outstanding at end of period (in thousands) 9 11 8 7 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
14 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GROWTH-INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.838 $9.143 $8.332 $6.447 $10.187 Accumulation Unit Value at end of period $10.226 $8.838 $9.143 $8.332 $6.447 Number of Accumulation Units outstanding at end of period (in thousands) 956 1,023 1,064 995 594 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.741 $9.070 $8.290 $6.434 $10.187 Accumulation Unit Value at end of period $10.084 $8.741 $9.070 $8.290 $6.434 Number of Accumulation Units outstanding at end of period (in thousands) 292 319 314 225 160 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.677 $9.021 $8.263 $6.426 $10.187 Accumulation Unit Value at end of period $9.990 $8.677 $9.021 $8.263 $6.426 Number of Accumulation Units outstanding at end of period (in thousands) 210 367 397 435 365 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.598 $8.961 $8.228 $6.415 - Accumulation Unit Value at end of period $9.874 $8.598 $8.961 $8.228 - Number of Accumulation Units outstanding at end of period (in thousands) 212 221 226 193 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.582 $8.949 $8.221 $6.413 $10.187 Accumulation Unit Value at end of period $9.851 $8.582 $8.949 $8.221 $6.413 Number of Accumulation Units outstanding at end of period (in thousands) 23 25 26 24 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.648 $14.268 $13.140 $10.275 - Accumulation Unit Value at end of period $15.627 $13.648 $14.268 $13.140 - Number of Accumulation Units outstanding at end of period (in thousands) 6 8 6 5 - AMERICAN FUNDS INTERNATIONAL HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.615 $8.990 $8.514 $6.039 $10.059 Accumulation Unit Value at end of period $8.842 $7.615 $8.990 $8.514 $6.039 Number of Accumulation Units outstanding at end of period (in thousands) 1,795 1,832 1,560 1,301 765 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.531 $8.918 $8.471 $6.027 $10.059 Accumulation Unit Value at end of period $8.719 $7.531 $8.918 $8.471 $6.027 Number of Accumulation Units outstanding at end of period (in thousands) 419 441 390 266 149 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.476 $8.871 $8.443 $6.019 $10.059 Accumulation Unit Value at end of period $8.638 $7.476 $8.871 $8.443 $6.019 Number of Accumulation Units outstanding at end of period (in thousands) 207 219 224 248 155 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.408 $8.812 $8.408 $6.009 - Accumulation Unit Value at end of period $8.538 $7.408 $8.812 $8.408 - Number of Accumulation Units outstanding at end of period (in thousands) 132 130 123 86 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.394 $8.800 $8.401 $6.007 $10.059 Accumulation Unit Value at end of period $8.518 $7.394 $8.800 $8.401 $6.007 Number of Accumulation Units outstanding at end of period (in thousands) 27 28 25 26 22 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- AMERICAN FUNDS GROWTH-INCOME HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS INTERNATIONAL HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
15 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.142 $15.679 $15.005 $10.756 - Accumulation Unit Value at end of period $15.100 $13.142 $15.679 $15.005 - Number of Accumulation Units outstanding at end of period (in thousands) 8 9 6 4 - AMERICAN FUNDS NEW WORLD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.622 $10.179 $8.769 $5.953 $10.052 Accumulation Unit Value at end of period $10.002 $8.622 $10.179 $8.769 $5.953 Number of Accumulation Units outstanding at end of period (in thousands) 163 195 208 196 138 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.527 $10.098 $8.725 $5.941 $10.052 Accumulation Unit Value at end of period $9.863 $8.527 $10.098 $8.725 $5.941 Number of Accumulation Units outstanding at end of period (in thousands) 45 47 49 43 32 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.465 $10.044 $8.696 $5.933 $10.052 Accumulation Unit Value at end of period $9.771 $8.465 $10.044 $8.696 $5.933 Number of Accumulation Units outstanding at end of period (in thousands) 51 69 112 73 54 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.387 $9.977 $8.659 $5.923 - Accumulation Unit Value at end of period $9.658 $8.387 $9.977 $8.659 - Number of Accumulation Units outstanding at end of period (in thousands) 84 85 91 25 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.372 $9.964 $8.652 $5.921 $10.052 Accumulation Unit Value at end of period $9.635 $8.372 $9.964 $8.652 $5.921 Number of Accumulation Units outstanding at end of period (in thousands) 5 5 6 8 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.717 $17.559 $15.286 $10.487 - Accumulation Unit Value at end of period $16.896 $14.717 $17.559 $15.286 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - FIDELITY VIP CONTRAFUND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.429 $9.821 $8.505 $6.357 $10.615 Accumulation Unit Value at end of period $10.815 $9.429 $9.821 $8.505 $6.357 Number of Accumulation Units outstanding at end of period (in thousands) 459 542 569 566 378 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.321 $9.738 $8.458 $6.341 $10.610 Accumulation Unit Value at end of period $10.659 $9.321 $9.738 $8.458 $6.341 Number of Accumulation Units outstanding at end of period (in thousands) 163 174 139 112 75 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.250 $9.683 $8.427 $6.331 $10.606 Accumulation Unit Value at end of period $10.557 $9.250 $9.683 $8.427 $6.331 Number of Accumulation Units outstanding at end of period (in thousands) 184 186 197 222 171 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.162 $9.615 $8.389 $6.318 - Accumulation Unit Value at end of period $10.430 $9.162 $9.615 $8.389 - Number of Accumulation Units outstanding at end of period (in thousands) 69 69 71 49 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AMERICAN FUNDS NEW WORLD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP CONTRAFUND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
16 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.144 $9.601 $8.381 $6.315 $10.601 Accumulation Unit Value at end of period $10.405 $9.144 $9.601 $8.381 $6.315 Number of Accumulation Units outstanding at end of period (in thousands) 19 25 28 33 25 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.682 $15.454 $13.524 $10.215 - Accumulation Unit Value at end of period $16.664 $14.682 $15.454 $13.524 - Number of Accumulation Units outstanding at end of period (in thousands) 9 9 8 - - FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.609 $10.007 $8.588 $6.404 $10.300 Accumulation Unit Value at end of period $11.601 $9.609 $10.007 $8.588 $6.404 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 4 5 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.499 $9.922 $8.541 $6.388 $10.294 Accumulation Unit Value at end of period $11.434 $9.499 $9.922 $8.541 $6.388 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.426 $9.866 $8.510 $6.377 $10.291 Accumulation Unit Value at end of period $11.324 $9.426 $9.866 $8.510 $6.377 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.336 $9.796 $8.471 $6.364 - Accumulation Unit Value at end of period $11.188 $9.336 $9.796 $8.471 - Number of Accumulation Units outstanding at end of period (in thousands) 6 2 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.319 $9.782 $8.463 $6.361 $10.286 Accumulation Unit Value at end of period $11.161 $9.319 $9.782 $8.463 $6.361 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.344 $16.148 $14.005 $10.554 - Accumulation Unit Value at end of period $18.332 $15.344 $16.148 $14.005 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.946 $9.061 $7.407 $5.861 $10.336 Accumulation Unit Value at end of period $10.107 $8.946 $9.061 $7.407 $5.861 Number of Accumulation Units outstanding at end of period (in thousands) 23 24 22 31 10 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.843 $8.984 $7.367 $5.847 $10.330 Accumulation Unit Value at end of period $9.961 $8.843 $8.984 $7.367 $5.847 Number of Accumulation Units outstanding at end of period (in thousands) 5 6 2 2 1 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
17 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.776 $8.933 $7.340 $5.837 $10.327 Accumulation Unit Value at end of period $9.865 $8.776 $8.933 $7.340 $5.837 Number of Accumulation Units outstanding at end of period (in thousands) 1 3 4 5 8 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.692 $8.870 $7.306 $5.825 - Accumulation Unit Value at end of period $9.747 $8.692 $8.870 $7.306 - Number of Accumulation Units outstanding at end of period (in thousands) 3 4 - 2 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.675 $8.858 $7.299 $5.822 $10.322 Accumulation Unit Value at end of period $9.723 $8.675 $8.858 $7.299 $5.822 Number of Accumulation Units outstanding at end of period (in thousands) 2 3 5 10 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.900 $15.252 $12.600 $10.075 - Accumulation Unit Value at end of period $16.658 $14.900 $15.252 $12.600 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - FIDELITY VIP MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.935 $11.285 $8.887 $6.439 $10.258 Accumulation Unit Value at end of period $11.240 $9.935 $11.285 $8.887 $6.439 Number of Accumulation Units outstanding at end of period (in thousands) 430 456 439 419 247 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.821 $11.189 $8.838 $6.423 $10.253 Accumulation Unit Value at end of period $11.078 $9.821 $11.189 $8.838 $6.423 Number of Accumulation Units outstanding at end of period (in thousands) 146 154 149 121 52 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.746 $11.126 $8.806 $6.412 $10.249 Accumulation Unit Value at end of period $10.972 $9.746 $11.126 $8.806 $6.412 Number of Accumulation Units outstanding at end of period (in thousands) 122 137 145 125 105 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.653 $11.047 $8.766 $6.399 - Accumulation Unit Value at end of period $10.840 $9.653 $11.047 $8.766 - Number of Accumulation Units outstanding at end of period (in thousands) 98 98 96 49 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.635 $11.032 $8.758 $6.396 $10.244 Accumulation Unit Value at end of period $10.814 $9.635 $11.032 $8.758 $6.396 Number of Accumulation Units outstanding at end of period (in thousands) 6 7 7 8 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.694 $18.015 $14.337 $10.498 - Accumulation Unit Value at end of period $17.571 $15.694 $18.015 $14.337 - Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FIDELITY VIP MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
18 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- FIDELITY VIP VALUE STRATEGIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.306 $10.360 $8.303 $5.350 $10.464 Accumulation Unit Value at end of period $11.678 $9.306 $10.360 $8.303 $5.350 Number of Accumulation Units outstanding at end of period (in thousands) 20 21 20 15 9 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.200 $10.272 $8.257 $5.337 $10.458 Accumulation Unit Value at end of period $11.510 $9.200 $10.272 $8.257 $5.337 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 5 6 3 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.129 $10.214 $8.227 $5.328 $10.455 Accumulation Unit Value at end of period $11.399 $9.129 $10.214 $8.227 $5.328 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 6 3 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.042 $10.142 $8.189 $5.316 - Accumulation Unit Value at end of period $11.262 $9.042 $10.142 $8.189 - Number of Accumulation Units outstanding at end of period (in thousands) 2 1 2 2 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.025 $10.127 $8.182 $5.314 $10.450 Accumulation Unit Value at end of period $11.235 $9.025 $10.127 $8.182 $5.314 Number of Accumulation Units outstanding at end of period (in thousands) 1 - 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.107 $20.370 $16.498 $10.743 - Accumulation Unit Value at end of period $22.485 $18.107 $20.370 $16.498 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.237 $10.901 $9.508 $7.256 $10.895 Accumulation Unit Value at end of period $11.044 $10.237 $10.901 $9.508 $7.256 Number of Accumulation Units outstanding at end of period (in thousands) 24 29 30 21 10 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.120 $10.808 $9.456 $7.238 $10.889 Accumulation Unit Value at end of period $10.885 $10.120 $10.808 $9.456 $7.238 Number of Accumulation Units outstanding at end of period (in thousands) 1 2 4 4 3 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.042 $10.747 $9.421 $7.226 $10.886 Accumulation Unit Value at end of period $10.780 $10.042 $10.747 $9.421 $7.226 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 3 4 1 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.946 $10.671 $9.378 $7.210 - Accumulation Unit Value at end of period $10.650 $9.946 $10.671 $9.378 - Number of Accumulation Units outstanding at end of period (in thousands) 40 41 42 44 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.927 $10.656 $9.370 $7.207 $10.880 Accumulation Unit Value at end of period $10.625 $9.927 $10.656 $9.370 $7.207 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- FIDELITY VIP VALUE STRATEGIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
19 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.724 $14.769 $13.018 $10.039 - Accumulation Unit Value at end of period $14.652 $13.724 $14.769 $13.018 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.901 $10.792 $9.710 $7.263 $10.510 Accumulation Unit Value at end of period $12.118 $10.901 $10.792 $9.710 $7.263 Number of Accumulation Units outstanding at end of period (in thousands) 1,439 1,521 1,493 1,451 853 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.777 $10.700 $9.656 $7.245 $10.505 Accumulation Unit Value at end of period $11.944 $10.777 $10.700 $9.656 $7.245 Number of Accumulation Units outstanding at end of period (in thousands) 363 394 400 330 156 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.694 $10.640 $9.621 $7.232 $10.501 Accumulation Unit Value at end of period $11.829 $10.694 $10.640 $9.621 $7.232 Number of Accumulation Units outstanding at end of period (in thousands) 245 273 280 289 178 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.592 $10.565 $9.577 $7.217 - Accumulation Unit Value at end of period $11.687 $10.592 $10.565 $9.577 - Number of Accumulation Units outstanding at end of period (in thousands) 336 348 347 268 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.572 $10.550 $9.568 $7.214 $10.496 Accumulation Unit Value at end of period $11.658 $10.572 $10.550 $9.568 $7.214 Number of Accumulation Units outstanding at end of period (in thousands) 38 40 44 44 36 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.550 $15.557 $14.144 $10.691 - Accumulation Unit Value at end of period $17.106 $15.550 $15.557 $14.144 - Number of Accumulation Units outstanding at end of period (in thousands) 20 22 23 7 - FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.736 $11.309 $8.936 $7.012 $10.781 Accumulation Unit Value at end of period $12.539 $10.736 $11.309 $8.936 $7.012 Number of Accumulation Units outstanding at end of period (in thousands) 100 108 107 98 66 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.613 $11.213 $8.887 $6.994 $10.776 Accumulation Unit Value at end of period $12.359 $10.613 $11.213 $8.887 $6.994 Number of Accumulation Units outstanding at end of period (in thousands) 36 40 41 34 15 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.532 $11.149 $8.854 $6.983 $10.772 Accumulation Unit Value at end of period $12.240 $10.532 $11.149 $8.854 $6.983 Number of Accumulation Units outstanding at end of period (in thousands) 21 29 33 36 20 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.431 $11.071 $8.814 $6.968 - Accumulation Unit Value at end of period $12.092 $10.431 $11.071 $8.814 - Number of Accumulation Units outstanding at end of period (in thousands) 6 8 8 5 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
20 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.411 $11.055 $8.806 $6.965 $10.766 Accumulation Unit Value at end of period $12.063 $10.411 $11.055 $8.806 $6.965 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 4 4 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.760 $16.777 $13.397 $10.623 - Accumulation Unit Value at end of period $18.215 $15.760 $16.777 $13.397 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.810 $11.518 $9.147 $6.458 $10.710 Accumulation Unit Value at end of period $11.828 $10.810 $11.518 $9.147 $6.458 Number of Accumulation Units outstanding at end of period (in thousands) 36 42 44 48 14 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.687 $11.420 $9.097 $6.442 $10.705 Accumulation Unit Value at end of period $11.657 $10.687 $11.420 $9.097 $6.442 Number of Accumulation Units outstanding at end of period (in thousands) 25 27 18 6 2 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.605 $11.356 $9.064 $6.431 $10.701 Accumulation Unit Value at end of period $11.545 $10.605 $11.356 $9.064 $6.431 Number of Accumulation Units outstanding at end of period (in thousands) 29 30 33 12 9 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.504 $11.275 $9.022 $6.417 - Accumulation Unit Value at end of period $11.406 $10.504 $11.275 $9.022 - Number of Accumulation Units outstanding at end of period (in thousands) 48 44 43 14 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.484 $11.259 $9.014 $6.415 $10.696 Accumulation Unit Value at end of period $11.379 $10.484 $11.259 $9.014 $6.415 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.307 $17.558 $14.091 $10.053 - Accumulation Unit Value at end of period $17.655 $16.307 $17.558 $14.091 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.004 $11.863 $10.834 $8.740 $10.189 Accumulation Unit Value at end of period $13.357 $12.004 $11.863 $10.834 $8.740 Number of Accumulation Units outstanding at end of period (in thousands) 827 846 903 844 464 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.867 $11.763 $10.774 $8.718 $10.184 Accumulation Unit Value at end of period $13.164 $11.867 $11.763 $10.774 $8.718 Number of Accumulation Units outstanding at end of period (in thousands) 157 164 167 154 64 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
21 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.776 $11.696 $10.735 $8.703 $10.180 Accumulation Unit Value at end of period $13.038 $11.776 $11.696 $10.735 $8.703 Number of Accumulation Units outstanding at end of period (in thousands) 120 96 105 111 70 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.664 $11.613 $10.686 $8.685 - Accumulation Unit Value at end of period $12.881 $11.664 $11.613 $10.686 - Number of Accumulation Units outstanding at end of period (in thousands) 108 109 107 101 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.641 $11.597 $10.676 $8.681 $10.175 Accumulation Unit Value at end of period $12.850 $11.641 $11.597 $10.676 $8.681 Number of Accumulation Units outstanding at end of period (in thousands) 15 15 17 18 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.969 $13.951 $12.875 $10.495 - Accumulation Unit Value at end of period $15.381 $13.969 $13.951 $12.875 - Number of Accumulation Units outstanding at end of period (in thousands) 12 12 11 3 - HARTFORD BALANCED HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.353 $10.292 $9.293 $7.223 $10.420 Accumulation Unit Value at end of period $11.453 $10.353 $10.292 $9.293 $7.223 Number of Accumulation Units outstanding at end of period (in thousands) 130 103 97 79 27 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.234 $10.205 $9.242 $7.205 $10.415 Accumulation Unit Value at end of period $11.288 $10.234 $10.205 $9.242 $7.205 Number of Accumulation Units outstanding at end of period (in thousands) 53 57 54 38 17 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.156 $10.147 $9.208 $7.192 $10.411 Accumulation Unit Value at end of period $11.179 $10.156 $10.147 $9.208 $7.192 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 3 19 12 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.059 $10.075 $9.166 $7.177 - Accumulation Unit Value at end of period $11.045 $10.059 $10.075 $9.166 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.040 $10.061 $9.158 $7.174 $10.406 Accumulation Unit Value at end of period $11.018 $10.040 $10.061 $9.158 $7.174 Number of Accumulation Units outstanding at end of period (in thousands) 5 5 6 9 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.388 $14.454 $13.190 $10.359 - Accumulation Unit Value at end of period $15.751 $14.388 $14.454 $13.190 - Number of Accumulation Units outstanding at end of period (in thousands) - - - 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD BALANCED HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
22 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.460 $9.670 $8.405 $5.842 $10.587 Accumulation Unit Value at end of period $9.888 $8.460 $9.670 $8.405 $5.842 Number of Accumulation Units outstanding at end of period (in thousands) 5,204 5,702 5,431 4,937 2,797 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.364 $9.588 $8.358 $5.828 $10.582 Accumulation Unit Value at end of period $9.745 $8.364 $9.588 $8.358 $5.828 Number of Accumulation Units outstanding at end of period (in thousands) 1,216 1,372 1,155 1,022 492 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.300 $9.534 $8.328 $5.818 $10.578 Accumulation Unit Value at end of period $9.651 $8.300 $9.534 $8.328 $5.818 Number of Accumulation Units outstanding at end of period (in thousands) 492 566 630 733 444 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.220 $9.466 $8.289 $5.806 - Accumulation Unit Value at end of period $9.535 $8.220 $9.466 $8.289 - Number of Accumulation Units outstanding at end of period (in thousands) 350 369 352 215 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.204 $9.453 $8.282 $5.803 $10.573 Accumulation Unit Value at end of period $9.512 $8.204 $9.453 $8.282 $5.803 Number of Accumulation Units outstanding at end of period (in thousands) 33 39 39 43 30 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.653 $16.925 $14.865 $10.442 - Accumulation Unit Value at end of period $16.946 $14.653 $16.925 $14.865 - Number of Accumulation Units outstanding at end of period (in thousands) 44 51 55 37 - HARTFORD DISCIPLINED EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.546 $9.556 $8.485 $6.838 $10.256 Accumulation Unit Value at end of period $11.089 $9.546 $9.556 $8.485 $6.838 Number of Accumulation Units outstanding at end of period (in thousands) 478 534 508 445 262 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.437 $9.475 $8.438 $6.821 $10.250 Accumulation Unit Value at end of period $10.929 $9.437 $9.475 $8.438 $6.821 Number of Accumulation Units outstanding at end of period (in thousands) 117 133 132 93 41 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.365 $9.422 $8.407 $6.809 $10.247 Accumulation Unit Value at end of period $10.824 $9.365 $9.422 $8.407 $6.809 Number of Accumulation Units outstanding at end of period (in thousands) 71 77 93 97 57 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.276 $9.355 $8.369 $6.795 - Accumulation Unit Value at end of period $10.694 $9.276 $9.355 $8.369 - Number of Accumulation Units outstanding at end of period (in thousands) 35 37 37 26 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.258 $9.342 $8.361 $6.792 $10.242 Accumulation Unit Value at end of period $10.668 $9.258 $9.342 $8.361 $6.792 Number of Accumulation Units outstanding at end of period (in thousands) 18 17 17 17 13 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD DISCIPLINED EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
23 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.104 $14.268 $12.802 $10.426 - Accumulation Unit Value at end of period $16.212 $14.104 $14.268 $12.802 - Number of Accumulation Units outstanding at end of period (in thousands) 4 4 3 3 - HARTFORD DIVIDEND AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.862 $9.857 $8.816 $7.160 $10.490 Accumulation Unit Value at end of period $11.064 $9.862 $9.857 $8.816 $7.160 Number of Accumulation Units outstanding at end of period (in thousands) 3,396 3,897 3,929 3,461 1,739 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.749 $9.773 $8.768 $7.142 $10.485 Accumulation Unit Value at end of period $10.904 $9.749 $9.773 $8.768 $7.142 Number of Accumulation Units outstanding at end of period (in thousands) 728 860 722 647 259 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.675 $9.718 $8.736 $7.130 $10.481 Accumulation Unit Value at end of period $10.799 $9.675 $9.718 $8.736 $7.130 Number of Accumulation Units outstanding at end of period (in thousands) 293 305 334 363 229 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.582 $9.649 $8.695 $7.115 - Accumulation Unit Value at end of period $10.670 $9.582 $9.649 $8.695 - Number of Accumulation Units outstanding at end of period (in thousands) 189 206 197 99 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.564 $9.635 $8.687 $7.112 $10.476 Accumulation Unit Value at end of period $10.644 $9.564 $9.635 $8.687 $7.112 Number of Accumulation Units outstanding at end of period (in thousands) 12 13 13 14 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.803 $13.940 $12.600 $10.342 - Accumulation Unit Value at end of period $15.323 $13.803 $13.940 $12.600 - Number of Accumulation Units outstanding at end of period (in thousands) 44 40 41 36 - HARTFORD GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.928 $8.146 $7.220 $5.389 $10.515 Accumulation Unit Value at end of period $8.443 $6.928 $8.146 $7.220 $5.389 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 5 5 - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $6.848 $8.077 $7.180 $5.376 $10.510 Accumulation Unit Value at end of period $8.321 $6.848 $8.077 $7.180 $5.376 Number of Accumulation Units outstanding at end of period (in thousands) - - - 1 - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.796 $8.031 $7.153 $5.367 $10.506 Accumulation Unit Value at end of period $8.241 $6.796 $8.031 $7.153 $5.367 Number of Accumulation Units outstanding at end of period (in thousands) 6 1 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $6.731 $7.974 $7.121 $5.356 - Accumulation Unit Value at end of period $8.142 $6.731 $7.974 $7.121 - Number of Accumulation Units outstanding at end of period (in thousands) 2 - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD DIVIDEND AND GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GLOBAL GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
24 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.718 $7.963 $7.114 $5.353 $10.501 Accumulation Unit Value at end of period $8.122 $6.718 $7.963 $7.114 $5.353 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.125 $15.596 $13.968 $10.538 - Accumulation Unit Value at end of period $15.829 $13.125 $15.596 $13.968 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GLOBAL RESEARCH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.887 $9.920 $8.658 $6.168 $10.484 Accumulation Unit Value at end of period $10.391 $8.887 $9.920 $8.658 $6.168 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.785 $9.835 $8.610 $6.153 $10.479 Accumulation Unit Value at end of period $10.241 $8.785 $9.835 $8.610 $6.153 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.718 $9.780 $8.579 $6.143 $10.475 Accumulation Unit Value at end of period $10.142 $8.718 $9.780 $8.579 $6.143 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.635 $9.711 $8.539 $6.130 - Accumulation Unit Value at end of period $10.020 $8.635 $9.711 $8.539 - Number of Accumulation Units outstanding at end of period (in thousands) - 1 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.618 $9.697 $8.531 $6.127 $10.470 Accumulation Unit Value at end of period $9.996 $8.618 $9.697 $8.531 $6.127 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.629 $16.502 $14.555 $10.479 - Accumulation Unit Value at end of period $16.926 $14.629 $16.502 $14.555 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.255 $10.293 $8.731 $6.586 $10.650 Accumulation Unit Value at end of period $10.823 $9.255 $10.293 $8.731 $6.586 Number of Accumulation Units outstanding at end of period (in thousands) 21 21 27 16 22 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.149 $10.206 $8.683 $6.569 $10.645 Accumulation Unit Value at end of period $10.668 $9.149 $10.206 $8.683 $6.569 Number of Accumulation Units outstanding at end of period (in thousands) 24 27 22 4 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GLOBAL RESEARCH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
25 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.079 $10.148 $8.651 $6.558 $10.641 Accumulation Unit Value at end of period $10.565 $9.079 $10.148 $8.651 $6.558 Number of Accumulation Units outstanding at end of period (in thousands) 3 1 1 1 6 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.992 $10.076 $8.611 $6.544 - Accumulation Unit Value at end of period $10.438 $8.992 $10.076 $8.611 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.975 $10.062 $8.604 $6.542 $10.636 Accumulation Unit Value at end of period $10.413 $8.975 $10.062 $8.604 $6.542 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 2 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.167 $15.922 $13.648 $10.403 - Accumulation Unit Value at end of period $16.394 $14.167 $15.922 $13.648 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.098 $8.998 $7.750 $6.055 $10.186 Accumulation Unit Value at end of period $10.145 $8.098 $8.998 $7.750 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 1,216 1,368 1,320 1,147 585 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.005 $8.922 $7.707 $6.040 $10.180 Accumulation Unit Value at end of period $9.999 $8.005 $8.922 $7.707 $6.040 Number of Accumulation Units outstanding at end of period (in thousands) 271 309 310 246 110 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.944 $8.871 $7.679 $6.029 $10.177 Accumulation Unit Value at end of period $9.903 $7.944 $8.871 $7.679 $6.029 Number of Accumulation Units outstanding at end of period (in thousands) 185 199 224 232 101 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.868 $8.809 $7.644 $6.017 - Accumulation Unit Value at end of period $9.784 $7.868 $8.809 $7.644 - Number of Accumulation Units outstanding at end of period (in thousands) 101 105 111 81 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.853 $8.796 $7.637 $6.014 $10.172 Accumulation Unit Value at end of period $9.760 $7.853 $8.796 $7.637 $6.014 Number of Accumulation Units outstanding at end of period (in thousands) 22 24 25 27 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.665 $15.345 $13.355 $10.544 - Accumulation Unit Value at end of period $16.941 $13.665 $15.345 $13.355 - Number of Accumulation Units outstanding at end of period (in thousands) 5 6 4 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD GROWTH OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
26 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.485 $13.042 $11.370 $7.652 $10.359 Accumulation Unit Value at end of period $15.223 $13.485 $13.042 $11.370 $7.652 Number of Accumulation Units outstanding at end of period (in thousands) 202 193 156 91 20 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.331 $12.932 $11.308 $7.633 $10.354 Accumulation Unit Value at end of period $15.004 $13.331 $12.932 $11.308 $7.633 Number of Accumulation Units outstanding at end of period (in thousands) 83 83 54 16 3 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.229 $12.859 $11.266 $7.620 $10.350 Accumulation Unit Value at end of period $14.860 $13.229 $12.859 $11.266 $7.620 Number of Accumulation Units outstanding at end of period (in thousands) 14 9 28 5 19 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.103 $12.768 $11.215 $7.604 - Accumulation Unit Value at end of period $14.681 $13.103 $12.768 $11.215 - Number of Accumulation Units outstanding at end of period (in thousands) 20 15 13 6 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.078 $12.750 $11.204 $7.601 $10.345 Accumulation Unit Value at end of period $14.646 $13.078 $12.750 $11.204 $7.601 Number of Accumulation Units outstanding at end of period (in thousands) 13 10 5 2 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $17.737 $17.336 $15.272 $10.386 - Accumulation Unit Value at end of period $19.814 $17.737 $17.336 $15.272 - Number of Accumulation Units outstanding at end of period (in thousands) 2 1 1 - - HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.914 $9.315 $8.239 $6.251 $10.415 Accumulation Unit Value at end of period $9.394 $7.914 $9.315 $8.239 $6.251 Number of Accumulation Units outstanding at end of period (in thousands) 176 188 171 147 97 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.823 $9.236 $8.193 $6.235 $10.410 Accumulation Unit Value at end of period $9.259 $7.823 $9.236 $8.193 $6.235 Number of Accumulation Units outstanding at end of period (in thousands) 66 69 68 49 28 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.764 $9.184 $8.163 $6.225 $10.406 Accumulation Unit Value at end of period $9.170 $7.764 $9.184 $8.163 $6.225 Number of Accumulation Units outstanding at end of period (in thousands) 46 46 62 64 61 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.689 $9.119 $8.126 $6.212 - Accumulation Unit Value at end of period $9.059 $7.689 $9.119 $8.126 - Number of Accumulation Units outstanding at end of period (in thousands) 20 20 22 13 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.675 $9.106 $8.118 $6.209 $10.401 Accumulation Unit Value at end of period $9.037 $7.675 $9.106 $8.118 $6.209 Number of Accumulation Units outstanding at end of period (in thousands) 15 12 11 10 7 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
27 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.124 $15.610 $13.952 $10.698 - Accumulation Unit Value at end of period $15.415 $13.124 $15.610 $13.952 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.682 $9.804 $9.927 $10.045 $10.019 Accumulation Unit Value at end of period $9.562 $9.682 $9.804 $9.927 $10.045 Number of Accumulation Units outstanding at end of period (in thousands) 734 708 582 688 602 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.571 $9.721 $9.873 $10.020 $10.014 Accumulation Unit Value at end of period $9.424 $9.571 $9.721 $9.873 $10.020 Number of Accumulation Units outstanding at end of period (in thousands) 495 326 311 158 175 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.498 $9.666 $9.837 $10.004 $10.011 Accumulation Unit Value at end of period $9.334 $9.498 $9.666 $9.837 $10.004 Number of Accumulation Units outstanding at end of period (in thousands) 26 34 36 243 78 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.408 $9.598 $9.792 $9.983 - Accumulation Unit Value at end of period $9.222 $9.408 $9.598 $9.792 - Number of Accumulation Units outstanding at end of period (in thousands) 15 9 22 40 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.390 $9.584 $9.783 $9.979 $10.006 Accumulation Unit Value at end of period $9.199 $9.390 $9.584 $9.783 $9.979 Number of Accumulation Units outstanding at end of period (in thousands) 13 8 12 10 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.323 $9.540 $9.762 $9.983 - Accumulation Unit Value at end of period $9.111 $9.323 $9.540 $9.762 - Number of Accumulation Units outstanding at end of period (in thousands) 19 7 - - - HARTFORD SMALL COMPANY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.955 $10.431 $8.509 $6.664 $10.468 Accumulation Unit Value at end of period $11.369 $9.955 $10.431 $8.509 $6.664 Number of Accumulation Units outstanding at end of period (in thousands) 28 35 29 32 27 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.841 $10.343 $8.462 $6.647 $10.463 Accumulation Unit Value at end of period $11.205 $9.841 $10.343 $8.462 $6.647 Number of Accumulation Units outstanding at end of period (in thousands) 2 4 5 4 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.766 $10.284 $8.431 $6.636 $10.459 Accumulation Unit Value at end of period $11.097 $9.766 $10.284 $8.431 $6.636 Number of Accumulation Units outstanding at end of period (in thousands) 44 42 48 51 40 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.673 $10.211 $8.392 $6.622 - Accumulation Unit Value at end of period $10.964 $9.673 $10.211 $8.392 - Number of Accumulation Units outstanding at end of period (in thousands) 17 16 14 10 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL COMPANY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
28 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.654 $10.197 $8.385 $6.619 $10.454 Accumulation Unit Value at end of period $10.937 $9.654 $10.197 $8.385 $6.619 Number of Accumulation Units outstanding at end of period (in thousands) 2 - 2 4 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.136 $16.027 $13.212 $10.457 - Accumulation Unit Value at end of period $17.106 $15.136 $16.027 $13.212 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL/MID CAP EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.191 $10.437 $8.399 $5.751 $10.251 Accumulation Unit Value at end of period $11.662 $10.191 $10.437 $8.399 $5.751 Number of Accumulation Units outstanding at end of period (in thousands) 39 50 40 46 31 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.074 $10.349 $8.353 $5.737 $10.246 Accumulation Unit Value at end of period $11.493 $10.074 $10.349 $8.353 $5.737 Number of Accumulation Units outstanding at end of period (in thousands) 25 28 26 17 6 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.997 $10.290 $8.322 $5.727 $10.243 Accumulation Unit Value at end of period $11.383 $9.997 $10.290 $8.322 $5.727 Number of Accumulation Units outstanding at end of period (in thousands) 3 7 9 10 7 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.901 $10.218 $8.284 $5.715 - Accumulation Unit Value at end of period $11.246 $9.901 $10.218 $8.284 - Number of Accumulation Units outstanding at end of period (in thousands) 11 11 11 4 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.882 $10.203 $8.276 $5.713 $10.237 Accumulation Unit Value at end of period $11.219 $9.882 $10.203 $8.276 $5.713 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 1 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $17.703 $18.323 $14.900 $10.311 - Accumulation Unit Value at end of period $20.046 $17.703 $18.323 $14.900 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALLCAP GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.490 $12.470 $9.247 $6.915 $10.638 Accumulation Unit Value at end of period $14.481 $12.490 $12.470 $9.247 $6.915 Number of Accumulation Units outstanding at end of period (in thousands) 9 38 18 15 7 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.347 $12.364 $9.196 $6.898 $10.633 Accumulation Unit Value at end of period $14.272 $12.347 $12.364 $9.196 $6.898 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALL/MID CAP EQUITY HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD SMALLCAP GROWTH HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
29 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.253 $12.294 $9.162 $6.886 $10.629 Accumulation Unit Value at end of period $14.135 $12.253 $12.294 $9.162 $6.886 Number of Accumulation Units outstanding at end of period (in thousands) 9 9 11 4 11 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.136 $12.208 $9.120 $6.872 - Accumulation Unit Value at end of period $13.965 $12.136 $12.208 $9.120 - Number of Accumulation Units outstanding at end of period (in thousands) 8 8 3 - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.113 $12.190 $9.112 $6.869 $10.624 Accumulation Unit Value at end of period $13.931 $12.113 $12.190 $9.112 $6.869 Number of Accumulation Units outstanding at end of period (in thousands) 1 2 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.633 $18.799 $14.087 $10.647 - Accumulation Unit Value at end of period $21.377 $18.633 $18.799 $14.087 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - HARTFORD STOCK HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.695 $9.926 $8.755 $6.263 $10.640 Accumulation Unit Value at end of period $10.952 $9.695 $9.926 $8.755 $6.263 Number of Accumulation Units outstanding at end of period (in thousands) 37 47 54 48 33 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.584 $9.842 $8.707 $6.248 $10.635 Accumulation Unit Value at end of period $10.794 $9.584 $9.842 $8.707 $6.248 Number of Accumulation Units outstanding at end of period (in thousands) 16 17 13 13 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.511 $9.786 $8.675 $6.237 $10.631 Accumulation Unit Value at end of period $10.690 $9.511 $9.786 $8.675 $6.237 Number of Accumulation Units outstanding at end of period (in thousands) 3 6 6 7 4 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.420 $9.717 $8.635 $6.224 - Accumulation Unit Value at end of period $10.562 $9.420 $9.717 $8.635 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.402 $9.703 $8.627 $6.221 $10.626 Accumulation Unit Value at end of period $10.536 $9.402 $9.703 $8.627 $6.221 Number of Accumulation Units outstanding at end of period (in thousands) 1 3 1 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.497 $16.034 $14.291 $10.332 - Accumulation Unit Value at end of period $17.324 $15.497 $16.034 $14.291 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD STOCK HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
30 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- HARTFORD TOTAL RETURN BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.507 $10.890 $10.256 $9.030 $9.948 Accumulation Unit Value at end of period $12.220 $11.507 $10.890 $10.256 $9.030 Number of Accumulation Units outstanding at end of period (in thousands) 4,648 4,748 4,731 4,084 1,833 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.375 $10.798 $10.200 $9.007 $9.943 Accumulation Unit Value at end of period $12.044 $11.375 $10.798 $10.200 $9.007 Number of Accumulation Units outstanding at end of period (in thousands) 981 1,027 932 776 245 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.288 $10.737 $10.163 $8.992 $9.940 Accumulation Unit Value at end of period $11.928 $11.288 $10.737 $10.163 $8.992 Number of Accumulation Units outstanding at end of period (in thousands) 357 357 394 436 191 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.180 $10.661 $10.116 $8.973 - Accumulation Unit Value at end of period $11.785 $11.180 $10.661 $10.116 - Number of Accumulation Units outstanding at end of period (in thousands) 300 304 284 150 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.159 $10.646 $10.107 $8.970 $9.935 Accumulation Unit Value at end of period $11.757 $11.159 $10.646 $10.107 $8.970 Number of Accumulation Units outstanding at end of period (in thousands) 27 33 35 30 17 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.665 $12.113 $11.529 $10.257 - Accumulation Unit Value at end of period $13.311 $12.665 $12.113 $11.529 - Number of Accumulation Units outstanding at end of period (in thousands) 54 54 47 37 - HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.432 $10.072 $9.826 $9.625 $9.805 Accumulation Unit Value at end of period $10.683 $10.432 $10.072 $9.826 $9.625 Number of Accumulation Units outstanding at end of period (in thousands) 147 134 149 179 120 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.313 $9.987 $9.772 $9.601 $9.800 Accumulation Unit Value at end of period $10.530 $10.313 $9.987 $9.772 $9.601 Number of Accumulation Units outstanding at end of period (in thousands) 49 43 23 24 3 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.234 $9.931 $9.737 $9.584 $9.796 Accumulation Unit Value at end of period $10.428 $10.234 $9.931 $9.737 $9.584 Number of Accumulation Units outstanding at end of period (in thousands) 30 38 33 31 7 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.136 $9.860 $9.692 $9.564 - Accumulation Unit Value at end of period $10.303 $10.136 $9.860 $9.692 - Number of Accumulation Units outstanding at end of period (in thousands) 7 15 37 8 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.117 $9.846 $9.683 $9.560 $9.791 Accumulation Unit Value at end of period $10.278 $10.117 $9.846 $9.683 $9.560 Number of Accumulation Units outstanding at end of period (in thousands) 12 15 13 13 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- HARTFORD TOTAL RETURN BOND HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
31 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.532 $10.276 $10.131 $10.027 - Accumulation Unit Value at end of period $10.673 $10.532 $10.276 $10.131 - Number of Accumulation Units outstanding at end of period (in thousands) 6 6 5 - - HARTFORD VALUE HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.560 $9.874 $8.719 $7.098 $10.645 Accumulation Unit Value at end of period $11.045 $9.560 $9.874 $8.719 $7.098 Number of Accumulation Units outstanding at end of period (in thousands) 46 49 51 27 13 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.451 $9.790 $8.671 $7.081 $10.639 Accumulation Unit Value at end of period $10.886 $9.451 $9.790 $8.671 $7.081 Number of Accumulation Units outstanding at end of period (in thousands) 7 10 10 5 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.378 $9.735 $8.639 $7.069 $10.636 Accumulation Unit Value at end of period $10.781 $9.378 $9.735 $8.639 $7.069 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 6 3 3 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.289 $9.666 $8.599 $7.054 - Accumulation Unit Value at end of period $10.652 $9.289 $9.666 $8.599 - Number of Accumulation Units outstanding at end of period (in thousands) 1 2 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.271 $9.652 $8.591 $7.051 $10.630 Accumulation Unit Value at end of period $10.626 $9.271 $9.652 $8.591 $7.051 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 2 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.453 $14.041 $12.530 $10.309 - Accumulation Unit Value at end of period $15.381 $13.453 $14.041 $12.530 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. BALANCED RISK ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.961 $10.350 - - - Accumulation Unit Value at end of period $11.976 $10.961 - - - Number of Accumulation Units outstanding at end of period (in thousands) 37 32 - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.935 $10.346 - - - Accumulation Unit Value at end of period $11.912 $10.935 - - - Number of Accumulation Units outstanding at end of period (in thousands) 45 41 - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.917 $10.344 - - - Accumulation Unit Value at end of period $11.870 $10.917 - - - Number of Accumulation Units outstanding at end of period (in thousands) 63 3 - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.896 $10.340 - - - Accumulation Unit Value at end of period $11.817 $10.896 - - - Number of Accumulation Units outstanding at end of period (in thousands) - 3 - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - HARTFORD VALUE HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. BALANCED RISK ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
32 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.892 $10.340 - - - Accumulation Unit Value at end of period $11.806 $10.892 - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.870 $10.336 - - - Accumulation Unit Value at end of period $11.753 $10.870 - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.771 $9.923 $9.197 $7.276 $10.392 Accumulation Unit Value at end of period $10.963 $9.771 $9.923 $9.197 $7.276 Number of Accumulation Units outstanding at end of period (in thousands) 11 10 11 15 10 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.659 $9.839 $9.147 $7.258 $10.386 Accumulation Unit Value at end of period $10.805 $9.659 $9.839 $9.147 $7.258 Number of Accumulation Units outstanding at end of period (in thousands) 5 5 1 4 2 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.585 $9.783 $9.113 $7.246 $10.383 Accumulation Unit Value at end of period $10.701 $9.585 $9.783 $9.113 $7.246 Number of Accumulation Units outstanding at end of period (in thousands) 12 16 12 12 12 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.494 $9.714 $9.072 $7.231 - Accumulation Unit Value at end of period $10.573 $9.494 $9.714 $9.072 - Number of Accumulation Units outstanding at end of period (in thousands) - 1 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.476 $9.701 $9.063 $7.228 $10.378 Accumulation Unit Value at end of period $10.547 $9.476 $9.701 $9.063 $7.228 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.243 $13.591 $12.730 $10.178 - Accumulation Unit Value at end of period $14.704 $13.243 $13.591 $12.730 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.727 $9.501 $8.544 $6.412 $10.310 Accumulation Unit Value at end of period $9.934 $8.727 $9.501 $8.544 $6.412 Number of Accumulation Units outstanding at end of period (in thousands) 452 472 435 388 220 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.628 $9.421 $8.497 $6.396 $10.305 Accumulation Unit Value at end of period $9.791 $8.628 $9.421 $8.497 $6.396 Number of Accumulation Units outstanding at end of period (in thousands) 125 135 129 96 31 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
33 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.562 $9.368 $8.466 $6.386 $10.302 Accumulation Unit Value at end of period $9.697 $8.562 $9.368 $8.466 $6.386 Number of Accumulation Units outstanding at end of period (in thousands) 45 46 50 54 38 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.480 $9.302 $8.427 $6.373 - Accumulation Unit Value at end of period $9.580 $8.480 $9.302 $8.427 - Number of Accumulation Units outstanding at end of period (in thousands) 30 30 28 22 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.464 $9.289 $8.420 $6.370 $10.297 Accumulation Unit Value at end of period $9.557 $8.464 $9.289 $8.420 $6.370 Number of Accumulation Units outstanding at end of period (in thousands) 9 8 7 8 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.035 $15.441 $14.032 $10.642 - Accumulation Unit Value at end of period $15.809 $14.035 $15.441 $14.032 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 1 1 - INVESCO V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.160 $11.413 $9.014 $7.549 $10.737 Accumulation Unit Value at end of period $12.527 $11.160 $11.413 $9.014 $7.549 Number of Accumulation Units outstanding at end of period (in thousands) 92 103 70 27 13 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.033 $11.317 $8.964 $7.531 $10.731 Accumulation Unit Value at end of period $12.347 $11.033 $11.317 $8.964 $7.531 Number of Accumulation Units outstanding at end of period (in thousands) 25 25 19 4 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.949 $11.253 $8.932 $7.518 $10.728 Accumulation Unit Value at end of period $12.228 $10.949 $11.253 $8.932 $7.518 Number of Accumulation Units outstanding at end of period (in thousands) 4 3 2 15 2 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.844 $11.173 $8.891 $7.503 - Accumulation Unit Value at end of period $12.081 $10.844 $11.173 $8.891 - Number of Accumulation Units outstanding at end of period (in thousands) 41 42 41 - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.824 $11.158 $8.883 $7.499 $10.723 Accumulation Unit Value at end of period $12.052 $10.824 $11.158 $8.883 $7.499 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 1 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.987 $15.488 $12.361 $10.462 - Accumulation Unit Value at end of period $16.646 $14.987 $15.488 $12.361 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
34 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.141 - - - - Accumulation Unit Value at end of period $9.854 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 2 - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.136 - - - - Accumulation Unit Value at end of period $9.830 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 11 - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.133 - - - - Accumulation Unit Value at end of period $9.813 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.129 - - - - Accumulation Unit Value at end of period $9.793 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.128 - - - - Accumulation Unit Value at end of period $9.789 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 2 - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.124 - - - - Accumulation Unit Value at end of period $9.768 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.433 $10.478 $8.684 $6.319 $10.482 Accumulation Unit Value at end of period $12.063 $10.433 $10.478 $8.684 $6.319 Number of Accumulation Units outstanding at end of period (in thousands) 22 13 25 26 19 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.314 $10.389 $8.636 $6.303 $10.477 Accumulation Unit Value at end of period $11.890 $10.314 $10.389 $8.636 $6.303 Number of Accumulation Units outstanding at end of period (in thousands) 6 7 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.236 $10.331 $8.605 $6.292 $10.474 Accumulation Unit Value at end of period $11.776 $10.236 $10.331 $8.605 $6.292 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 9 8 8 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.138 $10.258 $8.565 $6.279 - Accumulation Unit Value at end of period $11.634 $10.138 $10.258 $8.565 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- ------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
35 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.119 $10.243 $8.557 $6.277 $10.469 Accumulation Unit Value at end of period $11.606 $10.119 $10.243 $8.557 $6.277 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.896 $17.147 $14.361 $10.559 - Accumulation Unit Value at end of period $19.331 $16.896 $17.147 $14.361 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.567 $9.911 $8.945 $7.298 $10.483 Accumulation Unit Value at end of period $10.803 $9.567 $9.911 $8.945 $7.298 Number of Accumulation Units outstanding at end of period (in thousands) 15 20 27 22 13 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.457 $9.827 $8.896 $7.280 $10.478 Accumulation Unit Value at end of period $10.648 $9.457 $9.827 $8.896 $7.280 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 7 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.385 $9.772 $8.864 $7.268 $10.475 Accumulation Unit Value at end of period $10.545 $9.385 $9.772 $8.864 $7.268 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 4 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.296 $9.703 $8.823 $7.253 - Accumulation Unit Value at end of period $10.419 $9.296 $9.703 $8.823 - Number of Accumulation Units outstanding at end of period (in thousands) 8 10 5 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.278 $9.689 $8.815 $7.250 $10.470 Accumulation Unit Value at end of period $10.394 $9.278 $9.689 $8.815 $7.250 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.155 $13.772 $12.561 $10.356 - Accumulation Unit Value at end of period $14.700 $13.155 $13.772 $12.561 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.022 - - - - Accumulation Unit Value at end of period $9.891 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 4 - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.017 - - - - Accumulation Unit Value at end of period $9.866 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- ------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
36 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.014 - - - - Accumulation Unit Value at end of period $9.850 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 5 - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.009 - - - - Accumulation Unit Value at end of period $9.829 - - - - Number of Accumulation Units outstanding at end of period (in thousands) 2 - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.009 - - - - Accumulation Unit Value at end of period $9.825 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.004 - - - - Accumulation Unit Value at end of period $9.804 - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT BOND-DEBENTURE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.658 $12.279 $11.070 $8.346 $10.292 Accumulation Unit Value at end of period $14.067 $12.658 $12.279 $11.070 $8.346 Number of Accumulation Units outstanding at end of period (in thousands) 352 370 386 400 234 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.513 $12.175 $11.009 $8.325 $10.287 Accumulation Unit Value at end of period $13.865 $12.513 $12.175 $11.009 $8.325 Number of Accumulation Units outstanding at end of period (in thousands) 70 75 82 83 37 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.418 $12.106 $10.969 $8.311 $10.283 Accumulation Unit Value at end of period $13.732 $12.418 $12.106 $10.969 $8.311 Number of Accumulation Units outstanding at end of period (in thousands) 60 46 49 53 51 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.299 $12.021 $10.919 $8.294 - Accumulation Unit Value at end of period $13.567 $12.299 $12.021 $10.919 - Number of Accumulation Units outstanding at end of period (in thousands) 20 22 25 23 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.276 $12.004 $10.909 $8.290 $10.278 Accumulation Unit Value at end of period $13.534 $12.276 $12.004 $10.909 $8.290 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 8 9 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.439 $15.135 $13.789 $10.505 - Accumulation Unit Value at end of period $16.979 $15.439 $15.135 $13.789 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- ------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - -(a) Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT BOND-DEBENTURE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
37 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- LORD ABBETT CALIBRATED DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.771 $10.885 $9.604 $7.880 $10.373 Accumulation Unit Value at end of period $11.962 $10.771 $10.885 $9.604 $7.880 Number of Accumulation Units outstanding at end of period (in thousands) 55 59 57 44 27 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.648 $10.793 $9.551 $7.860 $10.368 Accumulation Unit Value at end of period $11.790 $10.648 $10.793 $9.551 $7.860 Number of Accumulation Units outstanding at end of period (in thousands) 38 40 31 27 9 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.567 $10.732 $9.517 $7.847 $10.364 Accumulation Unit Value at end of period $11.677 $10.567 $10.732 $9.517 $7.847 Number of Accumulation Units outstanding at end of period (in thousands) - 3 3 3 3 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.466 $10.657 $9.473 $7.831 - Accumulation Unit Value at end of period $11.537 $10.466 $10.657 $9.473 - Number of Accumulation Units outstanding at end of period (in thousands) - - 2 - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.446 $10.642 $9.464 $7.828 $10.359 Accumulation Unit Value at end of period $11.509 $10.446 $10.642 $9.464 $7.828 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.794 $14.087 $12.560 $10.414 - Accumulation Unit Value at end of period $15.159 $13.794 $14.087 $12.560 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.735 $9.418 $8.122 $6.917 $10.534 Accumulation Unit Value at end of period $9.669 $8.735 $9.418 $8.122 $6.917 Number of Accumulation Units outstanding at end of period (in thousands) 76 101 103 107 87 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.635 $9.338 $8.077 $6.900 $10.529 Accumulation Unit Value at end of period $9.530 $8.635 $9.338 $8.077 $6.900 Number of Accumulation Units outstanding at end of period (in thousands) 10 9 9 8 8 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.569 $9.285 $8.048 $6.888 $10.525 Accumulation Unit Value at end of period $9.439 $8.569 $9.285 $8.048 $6.888 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 9 10 12 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.488 $9.220 $8.011 $6.874 - Accumulation Unit Value at end of period $9.325 $8.488 $9.220 $8.011 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- LORD ABBETT CALIBRATED DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - LORD ABBETT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
38 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.471 $9.207 $8.004 $6.871 $10.520 Accumulation Unit Value at end of period $9.303 $8.471 $9.207 $8.004 $6.871 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.657 $13.790 $12.018 $10.343 - Accumulation Unit Value at end of period $13.865 $12.657 $13.790 $12.018 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.274 $10.462 $9.210 $6.791 $10.626 Accumulation Unit Value at end of period $11.879 $10.274 $10.462 $9.210 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 6 5 5 1 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.157 $10.373 $9.159 $6.774 $10.620 Accumulation Unit Value at end of period $11.708 $10.157 $10.373 $9.159 $6.774 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 1 2 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.079 $10.315 $9.126 $6.762 $10.617 Accumulation Unit Value at end of period $11.595 $10.079 $10.315 $9.126 $6.762 Number of Accumulation Units outstanding at end of period (in thousands) 3 4 7 7 8 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.983 $10.242 $9.084 $6.748 - Accumulation Unit Value at end of period $11.456 $9.983 $10.242 $9.084 - Number of Accumulation Units outstanding at end of period (in thousands) 7 4 1 2 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.964 $10.227 $9.076 $6.745 $10.612 Accumulation Unit Value at end of period $11.429 $9.964 $10.227 $9.076 $6.745 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.812 $15.241 $13.559 $10.103 - Accumulation Unit Value at end of period $16.946 $14.812 $15.241 $13.559 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 - - - MFS INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.408 $9.763 $8.916 $7.133 $10.607 Accumulation Unit Value at end of period $11.041 $9.408 $9.763 $8.916 $7.133 Number of Accumulation Units outstanding at end of period (in thousands) 8 12 14 15 4 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.301 $9.680 $8.867 $7.115 $10.602 Accumulation Unit Value at end of period $10.882 $9.301 $9.680 $8.867 $7.115 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
39 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ---------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.230 $9.626 $8.834 $7.104 $10.598 Accumulation Unit Value at end of period $10.778 $9.230 $9.626 $8.834 $7.104 Number of Accumulation Units outstanding at end of period (in thousands) 1 - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.142 $9.558 $8.794 $7.089 - Accumulation Unit Value at end of period $10.648 $9.142 $9.558 $8.794 - Number of Accumulation Units outstanding at end of period (in thousands) 4 3 1 - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.124 $9.544 $8.786 $7.086 $10.593 Accumulation Unit Value at end of period $10.623 $9.124 $9.544 $8.786 $7.086 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.057 $13.692 $12.636 $10.217 - Accumulation Unit Value at end of period $15.163 $13.057 $13.692 $12.636 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.194 $11.597 $10.953 $9.569 $10.047 Accumulation Unit Value at end of period $12.893 $12.194 $11.597 $10.953 $9.569 Number of Accumulation Units outstanding at end of period (in thousands) 405 383 263 70 12 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.055 $11.499 $10.893 $9.545 $10.042 Accumulation Unit Value at end of period $12.707 $12.055 $11.499 $10.893 $9.545 Number of Accumulation Units outstanding at end of period (in thousands) 115 106 80 9 - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.963 $11.434 $10.854 $9.529 $10.039 Accumulation Unit Value at end of period $12.585 $11.963 $11.434 $10.854 $9.529 Number of Accumulation Units outstanding at end of period (in thousands) 19 13 14 4 - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.849 $11.353 $10.804 $9.509 - Accumulation Unit Value at end of period $12.434 $11.849 $11.353 $10.804 - Number of Accumulation Units outstanding at end of period (in thousands) 37 35 27 5 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.827 $11.337 $10.794 $9.505 $10.034 Accumulation Unit Value at end of period $12.404 $11.827 $11.337 $10.794 $9.505 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.694 $12.199 $11.644 $10.280 - Accumulation Unit Value at end of period $13.281 $12.694 $12.199 $11.644 - Number of Accumulation Units outstanding at end of period (in thousands) 3 4 1 - - MFS TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.153 $10.121 $9.348 $8.040 $10.262 Accumulation Unit Value at end of period $11.124 $10.153 $10.121 $9.348 $8.040 Number of Accumulation Units outstanding at end of period (in thousands) 356 349 313 244 163 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
40 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.037 $10.035 $9.296 $8.020 $10.257 Accumulation Unit Value at end of period $10.964 $10.037 $10.035 $9.296 $8.020 Number of Accumulation Units outstanding at end of period (in thousands) 114 116 91 57 21 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.961 $9.979 $9.262 $8.007 $10.254 Accumulation Unit Value at end of period $10.858 $9.961 $9.979 $9.262 $8.007 Number of Accumulation Units outstanding at end of period (in thousands) 259 265 107 77 74 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.866 $9.908 $9.220 $7.990 - Accumulation Unit Value at end of period $10.728 $9.866 $9.908 $9.220 - Number of Accumulation Units outstanding at end of period (in thousands) 57 61 54 49 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.847 $9.894 $9.212 $7.987 $10.249 Accumulation Unit Value at end of period $10.702 $9.847 $9.894 $9.212 $7.987 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 7 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.598 $12.691 $11.845 $10.295 - Accumulation Unit Value at end of period $13.658 $12.598 $12.691 $11.845 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.501 $9.666 $8.800 $7.277 $10.533 Accumulation Unit Value at end of period $10.873 $9.501 $9.666 $8.800 $7.277 Number of Accumulation Units outstanding at end of period (in thousands) 712 802 755 634 308 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.392 $9.584 $8.752 $7.259 $10.528 Accumulation Unit Value at end of period $10.717 $9.392 $9.584 $8.752 $7.259 Number of Accumulation Units outstanding at end of period (in thousands) 152 171 167 124 44 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.321 $9.530 $8.720 $7.247 $10.524 Accumulation Unit Value at end of period $10.614 $9.321 $9.530 $8.720 $7.247 Number of Accumulation Units outstanding at end of period (in thousands) 79 84 87 87 58 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.232 $9.463 $8.680 $7.232 - Accumulation Unit Value at end of period $10.486 $9.232 $9.463 $8.680 - Number of Accumulation Units outstanding at end of period (in thousands) 47 51 53 39 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.214 $9.449 $8.672 $7.229 $10.519 Accumulation Unit Value at end of period $10.461 $9.214 $9.449 $8.672 $7.229 Number of Accumulation Units outstanding at end of period (in thousands) 15 16 15 17 12 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.140 $13.509 $12.429 $10.386 - Accumulation Unit Value at end of period $14.881 $13.140 $13.509 $12.429 - Number of Accumulation Units outstanding at end of period (in thousands) 4 4 3 2 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MFS VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
41 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- MUTUAL GLOBAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.742 $10.178 $9.212 $7.572 $10.232 Accumulation Unit Value at end of period $10.898 $9.742 $10.178 $9.212 $7.572 Number of Accumulation Units outstanding at end of period (in thousands) 166 203 211 200 85 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.631 $10.092 $9.162 $7.553 $10.226 Accumulation Unit Value at end of period $10.741 $9.631 $10.092 $9.162 $7.553 Number of Accumulation Units outstanding at end of period (in thousands) 48 52 52 46 28 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.557 $10.035 $9.128 $7.540 $10.223 Accumulation Unit Value at end of period $10.638 $9.557 $10.035 $9.128 $7.540 Number of Accumulation Units outstanding at end of period (in thousands) 24 23 29 41 23 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.466 $9.964 $9.086 $7.525 - Accumulation Unit Value at end of period $10.510 $9.466 $9.964 $9.086 - Number of Accumulation Units outstanding at end of period (in thousands) 14 11 8 4 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.448 $9.950 $9.078 $7.521 $10.218 Accumulation Unit Value at end of period $10.484 $9.448 $9.950 $9.078 $7.521 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 3 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.653 $13.358 $12.218 $10.149 - Accumulation Unit Value at end of period $14.006 $12.653 $13.358 $12.218 - Number of Accumulation Units outstanding at end of period (in thousands) - - - 1 - MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.949 $9.164 $8.355 $6.718 $10.237 Accumulation Unit Value at end of period $10.092 $8.949 $9.164 $8.355 $6.718 Number of Accumulation Units outstanding at end of period (in thousands) 988 1,060 1,004 873 479 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.846 $9.086 $8.309 $6.701 $10.232 Accumulation Unit Value at end of period $9.947 $8.846 $9.086 $8.309 $6.701 Number of Accumulation Units outstanding at end of period (in thousands) 274 313 308 227 77 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.778 $9.035 $8.279 $6.689 $10.229 Accumulation Unit Value at end of period $9.851 $8.778 $9.035 $8.279 $6.689 Number of Accumulation Units outstanding at end of period (in thousands) 108 137 148 177 123 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.695 $8.971 $8.241 $6.675 - Accumulation Unit Value at end of period $9.733 $8.695 $8.971 $8.241 - Number of Accumulation Units outstanding at end of period (in thousands) 110 119 119 106 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.678 $8.958 $8.233 $6.673 $10.224 Accumulation Unit Value at end of period $9.709 $8.678 $8.958 $8.233 $6.673 Number of Accumulation Units outstanding at end of period (in thousands) 27 28 28 29 22 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- MUTUAL GLOBAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
42 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.317 $13.781 $12.698 $10.317 - Accumulation Unit Value at end of period $14.862 $13.317 $13.781 $12.698 - Number of Accumulation Units outstanding at end of period (in thousands) 8 9 8 5 - OPPENHEIMER CAPITAL APPRECIATION FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.036 $9.277 $8.607 $6.046 $10.881 Accumulation Unit Value at end of period $10.156 $9.036 $9.277 $8.607 $6.046 Number of Accumulation Units outstanding at end of period (in thousands) 33 31 34 39 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.933 $9.199 $8.560 $6.031 $10.876 Accumulation Unit Value at end of period $10.010 $8.933 $9.199 $8.560 $6.031 Number of Accumulation Units outstanding at end of period (in thousands) 5 5 6 2 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.865 $9.147 $8.529 $6.021 $10.872 Accumulation Unit Value at end of period $9.914 $8.865 $9.147 $8.529 $6.021 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 6 6 6 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.780 $9.082 $8.490 $6.008 - Accumulation Unit Value at end of period $9.795 $8.780 $9.082 $8.490 - Number of Accumulation Units outstanding at end of period (in thousands) 2 3 - 3 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.763 $9.070 $8.482 $6.006 $10.867 Accumulation Unit Value at end of period $9.771 $8.763 $9.070 $8.482 $6.006 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.867 $15.425 $14.462 $10.265 - Accumulation Unit Value at end of period $16.535 $14.867 $15.425 $14.462 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER GLOBAL SECURITIES FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.299 $10.294 $9.009 $6.546 $10.594 Accumulation Unit Value at end of period $11.108 $9.299 $10.294 $9.009 $6.546 Number of Accumulation Units outstanding at end of period (in thousands) 153 174 180 187 142 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.193 $10.207 $8.960 $6.530 $10.588 Accumulation Unit Value at end of period $10.948 $9.193 $10.207 $8.960 $6.530 Number of Accumulation Units outstanding at end of period (in thousands) 77 78 78 81 50 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.123 $10.149 $8.927 $6.519 $10.585 Accumulation Unit Value at end of period $10.843 $9.123 $10.149 $8.927 $6.519 Number of Accumulation Units outstanding at end of period (in thousands) 79 99 108 135 81 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.036 $10.078 $8.886 $6.505 - Accumulation Unit Value at end of period $10.713 $9.036 $10.078 $8.886 - Number of Accumulation Units outstanding at end of period (in thousands) 27 29 33 25 - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER CAPITAL APPRECIATION FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER GLOBAL SECURITIES FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
43 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.019 $10.064 $8.878 $6.503 $10.580 Accumulation Unit Value at end of period $10.687 $9.019 $10.064 $8.878 $6.503 Number of Accumulation Units outstanding at end of period (in thousands) - 4 4 4 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.659 $16.398 $14.503 $10.649 - Accumulation Unit Value at end of period $17.327 $14.659 $16.398 $14.503 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - OPPENHEIMER MAIN STREET FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.616 $9.768 $8.539 $6.755 $10.558 Accumulation Unit Value at end of period $11.074 $9.616 $9.768 $8.539 $6.755 Number of Accumulation Units outstanding at end of period (in thousands) 36 42 44 43 23 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.506 $9.685 $8.493 $6.739 $10.553 Accumulation Unit Value at end of period $10.915 $9.506 $9.685 $8.493 $6.739 Number of Accumulation Units outstanding at end of period (in thousands) 22 23 19 9 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.434 $9.631 $8.462 $6.727 $10.550 Accumulation Unit Value at end of period $10.810 $9.434 $9.631 $8.462 $6.727 Number of Accumulation Units outstanding at end of period (in thousands) 5 2 3 4 5 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.344 $9.563 $8.423 $6.713 - Accumulation Unit Value at end of period $10.680 $9.344 $9.563 $8.423 - Number of Accumulation Units outstanding at end of period (in thousands) 3 1 1 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.326 $9.549 $8.415 $6.711 $10.544 Accumulation Unit Value at end of period $10.654 $9.326 $9.549 $8.415 $6.711 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $14.351 $14.731 $13.015 $10.404 - Accumulation Unit Value at end of period $16.354 $14.351 $14.731 $13.015 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET SMALL- & MID- CAP FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.716 $11.116 $9.147 $6.766 $10.525 Accumulation Unit Value at end of period $12.453 $10.716 $11.116 $9.147 $6.766 Number of Accumulation Units outstanding at end of period (in thousands) 169 194 211 224 127 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.594 $11.022 $9.097 $6.749 $10.520 Accumulation Unit Value at end of period $12.274 $10.594 $11.022 $9.097 $6.749 Number of Accumulation Units outstanding at end of period (in thousands) 38 43 46 47 20 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER MAIN STREET SMALL- & MID- CAP FUND /VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
44 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.513 $10.960 $9.063 $6.738 $10.517 Accumulation Unit Value at end of period $12.156 $10.513 $10.960 $9.063 $6.738 Number of Accumulation Units outstanding at end of period (in thousands) 25 27 30 33 21 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.413 $10.882 $9.022 $6.724 - Accumulation Unit Value at end of period $12.010 $10.413 $10.882 $9.022 - Number of Accumulation Units outstanding at end of period (in thousands) 16 17 20 18 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.393 $10.867 $9.014 $6.721 $10.512 Accumulation Unit Value at end of period $11.981 $10.393 $10.867 $9.014 $6.721 Number of Accumulation Units outstanding at end of period (in thousands) 4 4 5 6 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.573 $17.372 $14.446 $10.798 - Accumulation Unit Value at end of period $19.058 $16.573 $17.372 $14.446 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 - OPPENHEIMER VALUE FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.977 $9.517 $8.394 $6.411 $10.781 Accumulation Unit Value at end of period $10.026 $8.977 $9.517 $8.394 $6.411 Number of Accumulation Units outstanding at end of period (in thousands) 10 12 11 6 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.875 $9.436 $8.348 $6.395 $10.775 Accumulation Unit Value at end of period $9.882 $8.875 $9.436 $8.348 $6.395 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 2 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.807 $9.383 $8.317 $6.385 $10.772 Accumulation Unit Value at end of period $9.787 $8.807 $9.383 $8.317 $6.385 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.723 $9.317 $8.279 $6.371 - Accumulation Unit Value at end of period $9.669 $8.723 $9.317 $8.279 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.706 $9.304 $8.272 $6.369 $10.766 Accumulation Unit Value at end of period $9.646 $8.706 $9.304 $8.272 $6.369 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.822 $14.808 $13.199 $10.187 - Accumulation Unit Value at end of period $15.276 $13.822 $14.808 $13.199 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - OPPENHEIMER VALUE FUND/VA WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
45 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- PUTNAM VT DIVERSIFIED INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.618 $12.149 $10.919 $7.116 $10.246 Accumulation Unit Value at end of period $12.796 $11.618 $12.149 $10.919 $7.116 Number of Accumulation Units outstanding at end of period (in thousands) 629 607 649 690 400 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.485 $12.046 $10.859 $7.099 $10.241 Accumulation Unit Value at end of period $12.612 $11.485 $12.046 $10.859 $7.099 Number of Accumulation Units outstanding at end of period (in thousands) 143 145 156 149 54 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.398 $11.978 $10.819 $7.087 $10.237 Accumulation Unit Value at end of period $12.491 $11.398 $11.978 $10.819 $7.087 Number of Accumulation Units outstanding at end of period (in thousands) 75 95 102 92 61 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.289 $11.894 $10.769 $7.072 - Accumulation Unit Value at end of period $12.341 $11.289 $11.894 $10.769 - Number of Accumulation Units outstanding at end of period (in thousands) 42 42 49 41 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.267 $11.877 $10.759 $7.069 $10.232 Accumulation Unit Value at end of period $12.311 $11.267 $11.877 $10.759 $7.069 Number of Accumulation Units outstanding at end of period (in thousands) 12 11 13 15 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.512 $17.449 $15.847 $10.437 - Accumulation Unit Value at end of period $17.997 $16.512 $17.449 $15.847 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 - PUTNAM VT GLOBAL ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.480 $9.253 $6.930 $10.302 Accumulation Unit Value at end of period $11.624 $10.307 $10.480 $9.253 $6.930 Number of Accumulation Units outstanding at end of period (in thousands) 20 20 14 2 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.189 $10.392 $9.202 $6.912 $10.297 Accumulation Unit Value at end of period $11.457 $10.189 $10.392 $9.202 $6.912 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.111 $10.333 $9.168 $6.901 $10.294 Accumulation Unit Value at end of period $11.346 $10.111 $10.333 $9.168 $6.901 Number of Accumulation Units outstanding at end of period (in thousands) 24 24 24 24 10 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.015 $10.260 $9.126 $6.886 - Accumulation Unit Value at end of period $11.210 $10.015 $10.260 $9.126 - Number of Accumulation Units outstanding at end of period (in thousands) 3 3 3 3 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.995 $10.245 $9.118 $6.883 $10.288 Accumulation Unit Value at end of period $11.183 $9.995 $10.245 $9.118 $6.883 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- PUTNAM VT DIVERSIFIED INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT GLOBAL ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
46 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.058 $15.473 $13.805 $10.448 - Accumulation Unit Value at end of period $16.805 $15.058 $15.473 $13.805 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.673 $8.135 $7.486 $6.082 $10.507 Accumulation Unit Value at end of period $8.035 $6.673 $8.135 $7.486 $6.082 Number of Accumulation Units outstanding at end of period (in thousands) 5 4 3 1 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $6.597 $8.066 $7.445 $6.067 $10.502 Accumulation Unit Value at end of period $7.919 $6.597 $8.066 $7.445 $6.067 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 2 2 - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.546 $8.020 $7.418 $6.057 $10.498 Accumulation Unit Value at end of period $7.842 $6.546 $8.020 $7.418 $6.057 Number of Accumulation Units outstanding at end of period (in thousands) 3 5 2 4 5 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $6.484 $7.963 $7.384 $6.044 - Accumulation Unit Value at end of period $7.748 $6.484 $7.963 $7.384 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.471 $7.952 $7.377 $6.042 $10.493 Accumulation Unit Value at end of period $7.729 $6.471 $7.952 $7.377 $6.042 Number of Accumulation Units outstanding at end of period (in thousands) - - - 1 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.362 $13.997 $13.017 $10.687 - Accumulation Unit Value at end of period $13.537 $11.362 $13.997 $13.017 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.610 $7.763 $7.338 $5.888 $10.587 Accumulation Unit Value at end of period $7.945 $6.610 $7.763 $7.338 $5.888 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 3 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $6.534 $7.698 $7.298 $5.874 $10.581 Accumulation Unit Value at end of period $7.830 $6.534 $7.698 $7.298 $5.874 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.484 $7.654 $7.271 $5.864 $10.578 Accumulation Unit Value at end of period $7.755 $6.484 $7.654 $7.271 $5.864 Number of Accumulation Units outstanding at end of period (in thousands) - 1 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $6.423 $7.600 $7.238 $5.851 - Accumulation Unit Value at end of period $7.662 $6.423 $7.600 $7.238 - Number of Accumulation Units outstanding at end of period (in thousands) - 1 - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT INTERNATIONAL VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
47 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.410 $7.589 $7.231 $5.849 $10.572 Accumulation Unit Value at end of period $7.643 $6.410 $7.589 $7.231 $5.849 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $11.689 $13.873 $13.251 $10.746 - Accumulation Unit Value at end of period $13.902 $11.689 $13.873 $13.251 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT SMALL CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.035 $10.665 $8.572 $6.599 $10.321 Accumulation Unit Value at end of period $11.643 $10.035 $10.665 $8.572 $6.599 Number of Accumulation Units outstanding at end of period (in thousands) 15 4 3 2 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.920 $10.575 $8.525 $6.582 $10.316 Accumulation Unit Value at end of period $11.475 $9.920 $10.575 $8.525 $6.582 Number of Accumulation Units outstanding at end of period (in thousands) - - 4 - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.844 $10.515 $8.493 $6.571 $10.312 Accumulation Unit Value at end of period $11.365 $9.844 $10.515 $8.493 $6.571 Number of Accumulation Units outstanding at end of period (in thousands) - - 1 2 4 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $9.750 $10.441 $8.455 $6.558 - Accumulation Unit Value at end of period $11.228 $9.750 $10.441 $8.455 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.731 $10.426 $8.447 $6.555 $10.307 Accumulation Unit Value at end of period $11.201 $9.731 $10.426 $8.447 $6.555 Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $15.775 $16.943 $13.761 $10.706 - Accumulation Unit Value at end of period $18.112 $15.775 $16.943 $13.761 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 - - - TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.334 $10.032 $8.652 $5.080 $9.912 Accumulation Unit Value at end of period $9.305 $8.334 $10.032 $8.652 $5.080 Number of Accumulation Units outstanding at end of period (in thousands) 83 80 76 72 30 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.238 $9.947 $8.605 $5.068 $9.907 Accumulation Unit Value at end of period $9.171 $8.238 $9.947 $8.605 $5.068 Number of Accumulation Units outstanding at end of period (in thousands) 17 19 24 19 7 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - PUTNAM VT SMALL CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
48 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.175 $9.891 $8.573 $5.059 $9.903 Accumulation Unit Value at end of period $9.082 $8.175 $9.891 $8.573 $5.059 Number of Accumulation Units outstanding at end of period (in thousands) 20 21 65 16 23 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $8.097 $9.821 $8.534 $5.048 - Accumulation Unit Value at end of period $8.973 $8.097 $9.821 $8.534 - Number of Accumulation Units outstanding at end of period (in thousands) 74 79 69 14 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.082 $9.807 $8.526 $5.046 $9.898 Accumulation Unit Value at end of period $8.952 $8.082 $9.807 $8.526 $5.046 Number of Accumulation Units outstanding at end of period (in thousands) 13 18 19 20 17 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $16.539 $20.121 $17.536 $10.405 - Accumulation Unit Value at end of period $18.274 $16.539 $20.121 $17.536 - Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 - - TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.183 $9.283 $8.673 $6.417 $10.354 Accumulation Unit Value at end of period $9.546 $8.183 $9.283 $8.673 $6.417 Number of Accumulation Units outstanding at end of period (in thousands) 168 165 115 47 31 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.089 $9.204 $8.625 $6.401 $10.348 Accumulation Unit Value at end of period $9.409 $8.089 $9.204 $8.625 $6.401 Number of Accumulation Units outstanding at end of period (in thousands) 55 53 36 6 2 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.027 $9.152 $8.593 $6.390 $10.345 Accumulation Unit Value at end of period $9.318 $8.027 $9.152 $8.593 $6.390 Number of Accumulation Units outstanding at end of period (in thousands) 5 3 4 3 3 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.950 $9.087 $8.554 $6.377 - Accumulation Unit Value at end of period $9.206 $7.950 $9.087 $8.554 - Number of Accumulation Units outstanding at end of period (in thousands) 15 13 9 2 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.935 $9.074 $8.546 $6.374 $10.340 Accumulation Unit Value at end of period $9.184 $7.935 $9.074 $8.546 $6.374 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 1 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.225 $15.162 $14.315 $10.704 - Accumulation Unit Value at end of period $15.268 $13.225 $15.162 $14.315 - Number of Accumulation Units outstanding at end of period (in thousands) 2 2 1 - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
49 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.828 $13.115 $11.620 $9.922 $9.912 Accumulation Unit Value at end of period $14.565 $12.828 $13.115 $11.620 $9.922 Number of Accumulation Units outstanding at end of period (in thousands) 527 527 480 414 211 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.681 $13.004 $11.556 $9.897 $9.907 Accumulation Unit Value at end of period $14.355 $12.681 $13.004 $11.556 $9.897 Number of Accumulation Units outstanding at end of period (in thousands) 127 127 108 63 23 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.584 $12.930 $11.514 $9.881 $9.904 Accumulation Unit Value at end of period $14.217 $12.584 $12.930 $11.514 $9.881 Number of Accumulation Units outstanding at end of period (in thousands) 50 41 49 56 39 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.464 $12.839 $11.461 $9.860 - Accumulation Unit Value at end of period $14.046 $12.464 $12.839 $11.461 - Number of Accumulation Units outstanding at end of period (in thousands) 56 58 54 28 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.440 $12.821 $11.450 $9.856 $9.899 Accumulation Unit Value at end of period $14.012 $12.440 $12.821 $11.450 $9.856 Number of Accumulation Units outstanding at end of period (in thousands) 2 4 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $13.346 $13.788 $12.345 $10.653 - Accumulation Unit Value at end of period $14.994 $13.346 $13.788 $12.345 - Number of Accumulation Units outstanding at end of period (in thousands) 4 3 2 - - TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.988 $8.711 $8.220 $6.354 $10.347 Accumulation Unit Value at end of period $9.548 $7.988 $8.711 $8.220 $6.354 Number of Accumulation Units outstanding at end of period (in thousands) 328 319 317 282 183 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.897 $8.637 $8.174 $6.338 $10.342 Accumulation Unit Value at end of period $9.410 $7.897 $8.637 $8.174 $6.338 Number of Accumulation Units outstanding at end of period (in thousands) 115 132 133 90 34 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.836 $8.589 $8.144 $6.328 $10.339 Accumulation Unit Value at end of period $9.319 $7.836 $8.589 $8.144 $6.328 Number of Accumulation Units outstanding at end of period (in thousands) 23 22 25 27 25 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $7.762 $8.528 $8.107 $6.315 - Accumulation Unit Value at end of period $9.207 $7.762 $8.528 $8.107 - Number of Accumulation Units outstanding at end of period (in thousands) 62 70 73 77 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.747 $8.516 $8.100 $6.312 $10.333 Accumulation Unit Value at end of period $9.185 $7.747 $8.516 $8.100 $6.312 Number of Accumulation Units outstanding at end of period (in thousands) 15 16 16 16 13 AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
50 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2012 2011 2010 2009 2008 ----------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $12.949 $14.270 $13.607 $10.630 - Accumulation Unit Value at end of period $15.315 $12.949 $14.270 $13.607 - Number of Accumulation Units outstanding at end of period (in thousands) 4 5 4 2 - UIF MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.884 $11.873 $9.089 $5.848 $10.721 Accumulation Unit Value at end of period $11.662 $10.884 $11.873 $9.089 $5.848 Number of Accumulation Units outstanding at end of period (in thousands) 35 43 43 47 30 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.760 $11.772 $9.039 $5.834 $10.716 Accumulation Unit Value at end of period $11.494 $10.760 $11.772 $9.039 $5.834 Number of Accumulation Units outstanding at end of period (in thousands) 9 9 9 10 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.678 $11.706 $9.006 $5.824 $10.713 Accumulation Unit Value at end of period $11.383 $10.678 $11.706 $9.006 $5.824 Number of Accumulation Units outstanding at end of period (in thousands) 2 5 6 4 4 WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $10.576 $11.624 $8.965 $5.812 - Accumulation Unit Value at end of period $11.247 $10.576 $11.624 $8.965 - Number of Accumulation Units outstanding at end of period (in thousands) 9 10 10 7 - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.556 $11.607 $8.957 $5.810 $10.707 Accumulation Unit Value at end of period $11.220 $10.556 $11.607 $8.957 $5.810 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 3 5 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period $18.542 $20.440 $15.813 $10.282 - Accumulation Unit Value at end of period $19.659 $18.542 $20.440 $15.813 - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 -------------------------------------- -------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - UIF MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - - WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (75 BPS) Accumulation Unit Value at beginning of period - - - - - Accumulation Unit Value at end of period - - - - - Number of Accumulation Units outstanding at end of period (in thousands) - - - - -
(a) Inception date April 30, 2012. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE CONTRACT OWNERS OF HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN AND THE BOARD OF DIRECTORS OF HARTFORD LIFE INSURANCE COMPANY ------------------------------------------------------------------------------- We have audited the accompanying statements of assets and liabilities of each of the individual Sub-Accounts disclosed in Note 1 which comprise the Hartford Life Insurance Company Separate Account Seven (the "Account") as of December 31, 2012, and the related statements of operations for each of the periods presented in the year then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended. These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2012, by correspondence with the fund managers; where replies were not received from the fund managers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the individual Sub-Accounts disclosed in Note 1 constituting the Hartford Life Insurance Company Separate Account Seven as of December 31, 2012, the results of their operations for each of the periods presented in the year then ended, the changes in their net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Hartford, Connecticut March 28, 2013 SA-1 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN CENTURY VP AMERICAN CENTURY VP VALUE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (1) ------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 353,994 3,259 ============ ============ Cost $2,176,747 $33,810 ============ ============ Market value $2,311,580 $33,604 Due from Sponsor Company -- -- Receivable from fund shares sold 173 1 Other assets -- -- ------------ ------------ Total assets 2,311,753 33,605 ------------ ------------ LIABILITIES: Due to Sponsor Company 173 1 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------ Total liabilities 173 1 ------------ ------------ NET ASSETS: For contract liabilities $2,311,580 $33,604 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 202,920 3,296 Minimum unit fair value #* $11.108599 $10.128418 Maximum unit fair value #* $11.989495 $10.272868 Contract liability $2,311,580 $33,604 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. (1) Funded as of April 9, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-2 -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN VPS BALANCED WEALTH VPS INTERNATIONAL VPS SMALL/MID-CAP ALLIANCEBERNSTEIN STRATEGY PORTFOLIO VALUE PORTFOLIO VALUE PORTFOLIO VPS VALUE PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 384,034 611,143 102,872 13,363 ============ ============ ============ =========== Cost $3,957,752 $7,991,482 $1,422,484 $130,084 ============ ============ ============ =========== Market value $4,612,246 $7,847,078 $1,808,493 $140,851 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 6,543 7,683 667 6 Other assets -- -- 1 -- ------------ ------------ ------------ ----------- Total assets 4,618,789 7,854,761 1,809,161 140,857 ------------ ------------ ------------ ----------- LIABILITIES: Due to Sponsor Company 6,543 7,683 667 6 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- 1 ------------ ------------ ------------ ----------- Total liabilities 6,543 7,683 667 7 ------------ ------------ ------------ ----------- NET ASSETS: For contract liabilities $4,612,246 $7,847,078 $1,808,494 $140,850 ============ ============ ============ =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 427,286 1,249,244 141,654 15,551 Minimum unit fair value #* $9.945658 $5.936420 $11.724910 $8.759176 Maximum unit fair value #* $14.456375 $12.475871 $19.471369 $9.148443 Contract liability $4,612,246 $7,847,078 $1,808,494 $140,850 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- -- Minimum unit fair value #* -- -- -- -- Maximum unit fair value #* -- -- -- -- Contract liability -- -- -- -- INVESCO ALLIANCEBERNSTEIN VAN KAMPEN V.I. INVESCO V.I. VPS INTERNATIONAL VALUE CORE GROWTH PORTFOLIO OPPORTUNITIES FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT (2) SUB-ACCOUNT ------------------------------- ------------------------------------------------------------- ASSETS: Investments: Number of shares 67,510 3,769,847 1,870,235 ============ ============= ============= Cost $1,106,279 $35,066,969 $47,634,058 ============ ============= ============= Market value $1,144,972 $26,765,919 $56,353,730 Due from Sponsor Company -- -- -- Receivable from fund shares sold 96 7,064 21,330 Other assets -- 1 -- ------------ ------------- ------------- Total assets 1,145,068 26,772,984 56,375,060 ------------ ------------- ------------- LIABILITIES: Due to Sponsor Company 96 7,064 21,330 Payable for fund shares purchased -- -- -- Other liabilities -- -- 9 ------------ ------------- ------------- Total liabilities 96 7,064 21,339 ------------ ------------- ------------- NET ASSETS: For contract liabilities $1,144,972 $26,765,920 $56,353,721 ============ ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 145,200 22,826,709 4,914,912 Minimum unit fair value #* $7.409056 $1.089896 $0.920380 Maximum unit fair value #* $14.847679 $16.753050 $14.758383 Contract liability $1,144,972 $26,708,064 $56,333,689 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 47,398 1,539 Minimum unit fair value #* -- $1.198617 $12.860346 Maximum unit fair value #* -- $1.232874 $13.217990 Contract liability -- $57,856 $20,032
(2) Formerly Invesco V.I. Basic Value Fund. Change effective April 30, 2012. SA-3 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. GOVERNMENT HIGH SECURITIES FUND YIELD FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------ ASSETS: Investments: Number of shares 19,482,879 246,825 ============== ============ Cost $237,945,746 $1,350,744 ============== ============ Market value $241,587,704 $1,384,690 Due from Sponsor Company 82,128 -- Receivable from fund shares sold -- 83 Other assets 12 -- -------------- ------------ Total assets 241,669,844 1,384,773 -------------- ------------ LIABILITIES: Due to Sponsor Company -- 83 Payable for fund shares purchased 82,128 -- Other liabilities -- -- -------------- ------------ Total liabilities 82,128 83 -------------- ------------ NET ASSETS: For contract liabilities $241,587,716 $1,384,690 ============== ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 175,706,103 708,040 Minimum unit fair value #* $1.261345 $1.689227 Maximum unit fair value #* $10.826573 $19.654347 Contract liability $241,351,710 $1,384,690 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 165,871 -- Minimum unit fair value #* $1.379402 -- Maximum unit fair value #* $1.436106 -- Contract liability $236,006 --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-4 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. BALANCED RISK INTERNATIONAL MID CAP CORE SMALL CAP ALLOCATION GROWTH FUND EQUITY FUND EQUITY FUND FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 2,092,600 4,250,221 2,044,833 637,968 ============= ============= ============= ============ Cost $53,853,123 $50,276,406 $29,523,554 $7,619,221 ============= ============= ============= ============ Market value $62,682,248 $54,019,722 $38,131,989 $8,019,261 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 155,453 56,255 49,883 88,394 Other assets -- 4 2 -- ------------- ------------- ------------- ------------ Total assets 62,837,701 54,075,981 38,181,874 8,107,655 ------------- ------------- ------------- ------------ LIABILITIES: Due to Sponsor Company 155,453 56,255 49,883 88,394 Payable for fund shares purchased -- -- -- -- Other liabilities 7 -- -- -- ------------- ------------- ------------- ------------ Total liabilities 155,460 56,255 49,883 88,394 ------------- ------------- ------------- ------------ NET ASSETS: For contract liabilities $62,682,241 $54,019,726 $38,131,991 $8,019,261 ============= ============= ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 24,772,637 30,665,817 2,408,250 674,601 Minimum unit fair value #* $1.915511 $1.628022 $11.821691 $11.669377 Maximum unit fair value #* $16.334670 $14.253692 $17.581713 $12.138297 Contract liability $62,680,987 $53,959,474 $38,116,127 $8,019,261 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 599 33,039 959 -- Minimum unit fair value #* $2.094700 $1.780345 $16.369943 -- Maximum unit fair value #* $2.094700 $1.841555 $16.906052 -- Contract liability $1,254 $60,252 $15,864 -- INVESCO V.I. AMERICAN CENTURY VP AMERICAN FUNDS DIVERSIFIED MID CAP GLOBAL DIVIDEND FUND VALUE FUND BOND FUND SUB-ACCOUNT (3) SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------------- ASSETS: Investments: Number of shares 382 4,470 5,958,092 ============ ============ ============= Cost $5,810 $61,925 $66,855,668 ============ ============ ============= Market value $6,221 $65,223 $73,105,785 Due from Sponsor Company -- -- -- Receivable from fund shares sold 1 1 57,230 Other assets -- -- 2 ------------ ------------ ------------- Total assets 6,222 65,224 73,163,017 ------------ ------------ ------------- LIABILITIES: Due to Sponsor Company 1 1 57,230 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------ ------------ ------------- Total liabilities 1 1 57,230 ------------ ------------ ------------- NET ASSETS: For contract liabilities $6,221 $65,223 $73,105,787 ============ ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 553 5,767 5,500,306 Minimum unit fair value #* $11.244674 $11.076042 $12.261101 Maximum unit fair value #* $11.244674 $11.967240 $14.065520 Contract liability $6,221 $65,223 $73,089,781 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 1,174 Minimum unit fair value #* -- -- $13.590974 Maximum unit fair value #* -- -- $13.633472 Contract liability -- -- $16,006
(3) Formerly Invesco V.I. Dividend Growth Fund. Change effective April 30, 2012. SA-5 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH AND ASSET INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 7,825,623 13,233,731 ============= ============== Cost $84,923,313 $193,653,484 ============= ============== Market value $82,482,066 $242,309,623 Due from Sponsor Company -- -- Receivable from fund shares sold 28,130 395,917 Other assets -- -- ------------- -------------- Total assets 82,510,196 242,705,540 ------------- -------------- LIABILITIES: Due to Sponsor Company 28,130 395,917 Payable for fund shares purchased -- -- Other liabilities -- 6 ------------- -------------- Total liabilities 28,130 395,923 ------------- -------------- NET ASSETS: For contract liabilities $82,482,066 $242,309,617 ============= ============== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 7,226,707 16,275,250 Minimum unit fair value #* $10.755915 $13.607969 Maximum unit fair value #* $16.616463 $17.436772 Contract liability $82,444,939 $242,073,396 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 3,231 15,481 Minimum unit fair value #* $11.390260 $14.744102 Maximum unit fair value #* $11.662166 $16.611294 Contract liability $37,127 $236,221
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-6 -------------------------------------------------------------------------------
AMERICAN FUNDS BLUE CHIP AMERICAN FUNDS INCOME AND AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH FUND BOND FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 10,443,811 21,515,728 3,298,838 10,068,671 ============== ============== ============= ============== Cost $93,777,816 $236,169,785 $58,240,726 $523,368,198 ============== ============== ============= ============== Market value $104,124,801 $240,330,687 $77,324,764 $608,651,147 Due from Sponsor Company -- -- 26,503 -- Receivable from fund shares sold 23,077 201,877 -- 973,877 Other assets -- -- -- 1 -------------- -------------- ------------- -------------- Total assets 104,147,878 240,532,564 77,351,267 609,625,025 -------------- -------------- ------------- -------------- LIABILITIES: Due to Sponsor Company 23,077 201,877 -- 973,877 Payable for fund shares purchased -- -- 26,503 -- Other liabilities 3 3 2 -- -------------- -------------- ------------- -------------- Total liabilities 23,080 201,880 26,505 973,877 -------------- -------------- ------------- -------------- NET ASSETS: For contract liabilities $104,124,798 $240,330,684 $77,324,762 $608,651,148 ============== ============== ============= ============== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 92,192,122 15,650,901 4,864,258 47,062,616 Minimum unit fair value #* $1.038581 $12.424779 $11.509509 $9.602048 Maximum unit fair value #* $15.144108 $17.352941 $19.114856 $17.374393 Contract liability $103,963,739 $240,169,956 $77,266,884 $608,232,287 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 139,125 9,977 3,649 31,399 Minimum unit fair value #* $1.136620 $15.043527 $13.758655 $10.490008 Maximum unit fair value #* $1.184356 $16.531596 $18.346505 $16.209184 Contract liability $161,059 $160,728 $57,878 $418,861 AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- --------------------------------------------------------------------------- ASSETS: Investments: Number of shares 14,375,069 9,024,788 3,104,597 ============== ============== ============= Cost $495,622,567 $152,381,598 $50,172,898 ============== ============== ============= Market value $549,702,679 $159,016,775 $70,629,588 Due from Sponsor Company -- -- -- Receivable from fund shares sold 876,119 295,114 74,712 Other assets 2 4 3 -------------- -------------- ------------- Total assets 550,578,800 159,311,893 70,704,303 -------------- -------------- ------------- LIABILITIES: Due to Sponsor Company 876,115 295,114 74,712 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- -------------- -------------- ------------- Total liabilities 876,115 295,114 74,712 -------------- -------------- ------------- NET ASSETS: For contract liabilities $549,702,685 $159,016,779 $70,629,591 ============== ============== ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 39,323,664 11,480,225 2,721,722 Minimum unit fair value #* $12.655716 $10.034969 $16.796944 Maximum unit fair value #* $16.725635 $16.655505 $30.753042 Contract liability $549,289,096 $158,935,247 $70,603,722 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 28,634 5,573 963 Minimum unit fair value #* $13.712504 $12.036953 $26.738472 Maximum unit fair value #* $15.933712 $16.343025 $29.297281 Contract liability $413,589 $81,532 $25,869
SA-7 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS STERLING GLOBAL SMALL CAPITAL STRATEGIC CAPITALIZATION FUND ALLOCATION EQUITY VIF SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 2,840,445 583 ============= =========== Cost $48,022,740 $2,939 ============= =========== Market value $56,411,254 $4,024 Due from Sponsor Company -- -- Receivable from fund shares sold 89,902 -- Other assets 1 -- ------------- ----------- Total assets 56,501,157 4,024 ------------- ----------- LIABILITIES: Due to Sponsor Company 89,902 -- Payable for fund shares purchased -- -- Other liabilities -- 1 ------------- ----------- Total liabilities 89,902 1 ------------- ----------- NET ASSETS: For contract liabilities $56,411,255 $4,023 ============= =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 3,239,170 431 Minimum unit fair value #* $13.351073 $9.322593 Maximum unit fair value #* $21.189790 $9.458683 Contract liability $56,299,584 $4,023 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 5,863 -- Minimum unit fair value #* $14.832357 -- Maximum unit fair value #* $20.792156 -- Contract liability $111,671 --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-8 -------------------------------------------------------------------------------
COLUMBIA VARIABLE STERLING STERLING STERLING PORTFOLIO -- CAPITAL SELECT CAPITAL SPECIAL CAPITAL TOTAL SMALL COMPANY EQUITY VIF OPPORTUNITIES VIF RETURN BOND VIF GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 3,341 126,707 89,769 444,317 =========== ============ ============ ============ Cost $29,770 $1,771,627 $906,677 $5,837,282 =========== ============ ============ ============ Market value $30,165 $2,126,146 $953,347 $5,762,793 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 1 255 40 4,338 Other assets 1 -- -- 1 ----------- ------------ ------------ ------------ Total assets 30,167 2,126,401 953,387 5,767,132 ----------- ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 1 255 40 4,338 Payable for fund shares purchased -- -- -- -- Other liabilities -- 1 -- -- ----------- ------------ ------------ ------------ Total liabilities 1 256 40 4,338 ----------- ------------ ------------ ------------ NET ASSETS: For contract liabilities $30,166 $2,126,145 $953,347 $5,762,794 =========== ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 3,260 180,209 76,368 4,105,894 Minimum unit fair value #* $9.247316 $11.261350 $12.046529 $1.147582 Maximum unit fair value #* $9.382311 $18.114222 $12.581729 $16.293683 Contract liability $30,166 $2,126,145 $953,347 $5,761,681 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- 885 Minimum unit fair value #* -- -- -- $1.256731 Maximum unit fair value #* -- -- -- $1.256731 Contract liability -- -- -- $1,113 WELLS FARGO ADVANTAGE VT FIDELITY VIP FIDELITY VIP OMEGA GROWTH CONTRAFUND(R) GROWTH FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- --------------------------------------------------- ASSETS: Investments: Number of shares 44,973 19,742 872,643 ============ ============ ============= Cost $1,026,797 $669,258 $17,633,266 ============ ============ ============= Market value $1,149,389 $822,044 $22,688,722 Due from Sponsor Company -- 8,887 -- Receivable from fund shares sold 51 -- 4,681 Other assets -- -- -- ------------ ------------ ------------- Total assets 1,149,440 830,931 22,693,403 ------------ ------------ ------------- LIABILITIES: Due to Sponsor Company 51 -- 4,681 Payable for fund shares purchased -- 8,887 -- Other liabilities 2 -- -- ------------ ------------ ------------- Total liabilities 53 8,887 4,681 ------------ ------------ ------------- NET ASSETS: For contract liabilities $1,149,387 $822,044 $22,688,722 ============ ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,049,531 80,115 1,940,544 Minimum unit fair value #* $0.872357 $9.676263 $10.180621 Maximum unit fair value #* $18.771297 $16.658417 $17.218699 Contract liability $1,149,387 $822,044 $22,615,054 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 6,945 Minimum unit fair value #* -- -- $10.608037 Maximum unit fair value #* -- -- $10.608037 Contract liability -- -- $73,668
SA-9 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
FIDELITY VIP FIDELITY VIP MID CAP VALUE STRATEGIES PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------- ASSETS: Investments: Number of shares 538,561 98,670 ============= ============ Cost $12,704,020 $803,414 ============= ============ Market value $16,146,042 $1,103,134 Due from Sponsor Company 13,601 2,551 Receivable from fund shares sold -- -- Other assets -- -- ------------- ------------ Total assets 16,159,643 1,105,685 ------------- ------------ LIABILITIES: Due to Sponsor Company -- -- Payable for fund shares purchased 13,601 2,551 Other liabilities 2 -- ------------- ------------ Total liabilities 13,603 2,551 ------------- ------------ NET ASSETS: For contract liabilities $16,146,040 $1,103,134 ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,418,813 89,631 Minimum unit fair value #* $10.606438 $10.992717 Maximum unit fair value #* $18.156329 $22.485313 Contract liability $16,124,693 $1,070,583 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 1,929 2,842 Minimum unit fair value #* $11.025021 $11.454430 Maximum unit fair value #* $11.240452 $11.454430 Contract liability $21,347 $32,551
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-10 -------------------------------------------------------------------------------
FIDELITY VIP FRANKLIN DYNAMIC CAPITAL FIDELITY VIP RISING FRANKLIN APPRECIATION STRATEGIC INCOME DIVIDENDS INCOME PORTFOLIO PORTFOLIO SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 30,390 6,511 12,257,913 51,927,381 =========== =========== ============ ============ Cost $261,793 $75,571 $218,507,687 $776,105,068 =========== =========== ============ ============ Market value $298,735 $76,249 $265,268,303 $783,413,678 Due from Sponsor Company 4,306 -- -- -- Receivable from fund shares sold -- 4 602,178 683,544 Other assets -- -- -- 9 ----------- ----------- ------------ ------------ Total assets 303,041 76,253 265,870,481 784,097,231 ----------- ----------- ------------ ------------ LIABILITIES: Due to Sponsor Company -- 4 602,178 683,544 Payable for fund shares purchased 4,306 -- -- -- Other liabilities -- -- -- -- ----------- ----------- ------------ ------------ Total liabilities 4,306 4 602,178 683,544 ----------- ----------- ------------ ------------ NET ASSETS: For contract liabilities $298,735 $76,249 $265,268,303 $783,413,687 =========== =========== ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 26,235 5,488 16,016,128 44,964,005 Minimum unit fair value #* $10.946791 $13.868175 $11.773511 $11.407465 Maximum unit fair value #* $18.331674 $13.941239 $17.864083 $19.536091 Contract liability $298,735 $76,249 $265,145,624 $783,159,397 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 7,159 14,100 Minimum unit fair value #* -- -- $16.605648 $11.886173 Maximum unit fair value #* -- -- $17.177421 $18.729297 Contract liability -- -- $122,679 $254,290 FRANKLIN FRANKLIN FRANKLIN LARGE CAP GLOBAL SMALL-MID CAP GROWTH REAL ESTATE GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of shares 2,323,588 84,820 3,347,908 ============ ========== =========== Cost $32,956,929 $1,361,339 $63,230,069 ============ ========== =========== Market value $37,642,120 $1,210,390 $70,495,270 Due from Sponsor Company 80,782 -- -- Receivable from fund shares sold -- 148 50,220 Other assets 3 -- -- ------------ ---------- ----------- Total assets 37,722,905 1,210,538 70,545,490 ------------ ---------- ----------- LIABILITIES: Due to Sponsor Company -- 148 50,220 Payable for fund shares purchased 80,782 -- -- Other liabilities -- 1 2 ------------ ---------- ----------- Total liabilities 80,782 149 50,222 ------------ ---------- ----------- NET ASSETS: For contract liabilities $37,642,123 $1,210,389 $70,495,268 ============ ========== =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 3,189,014 58,268 6,215,238 Minimum unit fair value #* $10.941011 $16.807849 $7.823932 Maximum unit fair value #* $14.655314 $20.641837 $17.655035 Contract liability $37,637,405 $1,175,862 $70,435,282 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 384 1,728 6,321 Minimum unit fair value #* $11.939571 $19.956570 $8.618275 Maximum unit fair value #* $12.400192 $20.641837 $15.413306 Contract liability $4,718 $34,527 $59,986
SA-11 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL CAP STRATEGIC VALUE INCOME SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 862,955 19,065,047 ============= ============== Cost $12,117,888 $231,526,642 ============= ============== Market value $15,778,587 $250,767,429 Due from Sponsor Company 14,463 -- Receivable from fund shares sold -- 268,537 Other assets -- 2 ------------- -------------- Total assets 15,793,050 251,035,968 ------------- -------------- LIABILITIES: Due to Sponsor Company -- 268,537 Payable for fund shares purchased 14,463 -- Other liabilities 3 -- ------------- -------------- Total liabilities 14,466 268,537 ------------- -------------- NET ASSETS: For contract liabilities $15,778,584 $250,767,431 ============= ============== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,408,831 12,924,784 Minimum unit fair value #* $10.287202 $11.304926 Maximum unit fair value #* $18.215456 $23.805375 Contract liability $15,774,388 $250,316,655 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 335 22,828 Minimum unit fair value #* $12.539294 $13.100929 Maximum unit fair value #* $12.539294 $22.678720 Contract liability $4,196 $450,776
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-12 -------------------------------------------------------------------------------
TEMPLETON DEVELOPING TEMPLETON TEMPLETON MUTUAL SHARES MARKETS FOREIGN GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 20,624,390 4,645,007 9,181,066 18,911,147 ============= ============= ============= ============= Cost $321,574,728 $45,937,812 $124,933,436 $225,635,520 ============= ============= ============= ============= Market value $355,309,142 $49,109,466 $131,974,526 $226,483,342 Due from Sponsor Company -- -- 118,701 -- Receivable from fund shares sold 270,428 4,841 -- 243,152 Other assets -- -- -- 3 ------------- ------------- ------------- ------------- Total assets 355,579,570 49,114,307 132,093,227 226,726,497 ------------- ------------- ------------- ------------- LIABILITIES: Due to Sponsor Company 270,428 4,841 -- 243,152 Payable for fund shares purchased -- -- 118,701 -- Other liabilities 3 -- -- -- ------------- ------------- ------------- ------------- Total liabilities 270,431 4,841 118,701 243,152 ------------- ------------- ------------- ------------- NET ASSETS: For contract liabilities $355,309,139 $49,109,466 $131,974,526 $226,483,345 ============= ============= ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 23,149,248 2,332,910 10,212,348 17,326,875 Minimum unit fair value #* $9.499909 $8.779978 $9.007965 $8.987151 Maximum unit fair value #* $19.449688 $27.446940 $15.777064 $15.464908 Contract liability $355,056,956 $49,057,763 $131,883,195 $226,249,968 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 15,161 2,824 6,801 17,052 Minimum unit fair value #* $15.360439 $9.126494 $12.763519 $13.089711 Maximum unit fair value #* $18.528860 $26.239600 $14.450830 $14.732652 Contract liability $252,183 $51,703 $91,331 $233,377 FRANKLIN FRANKLIN MUTUAL FLEX CAP LARGE CAP GLOBAL DISCOVERY GROWTH VALUE SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ---------------------------------------------------------------- ASSETS: Investments: Number of shares 5,601,259 1,334,273 686,861 ============= ============ =========== Cost $103,320,570 $14,786,713 $7,143,586 ============= ============ =========== Market value $113,098,590 $17,617,665 $7,603,555 Due from Sponsor Company -- -- -- Receivable from fund shares sold 248,945 119,658 13,480 Other assets -- 1 -- ------------- ------------ ----------- Total assets 113,347,535 17,737,324 7,617,035 ------------- ------------ ----------- LIABILITIES: Due to Sponsor Company 248,945 119,658 13,480 Payable for fund shares purchased -- -- -- Other liabilities 3 -- 3 ------------- ------------ ----------- Total liabilities 248,948 119,658 13,483 ------------- ------------ ----------- NET ASSETS: For contract liabilities $113,098,587 $17,617,666 $7,603,552 ============= ============ =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 5,517,722 1,530,740 705,497 Minimum unit fair value #* $10.258585 $10.573457 $10.117209 Maximum unit fair value #* $23.469095 $14.651700 $14.472108 Contract liability $112,904,765 $17,607,390 $7,603,552 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 12,129 886 -- Minimum unit fair value #* $10.689142 $11.599133 -- Maximum unit fair value #* $22.567072 $11.599133 -- Contract liability $193,822 $10,276 --
SA-13 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
TEMPLETON HARTFORD GLOBAL BOND BALANCED SECURITIES FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (4) -------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,127,577 764,004 ============= ============= Cost $20,138,108 $16,421,136 ============= ============= Market value $22,345,329 $16,214,419 Due from Sponsor Company -- -- Receivable from fund shares sold 13,715 19,037 Other assets 1 2 ------------- ------------- Total assets 22,359,045 16,233,458 ------------- ------------- LIABILITIES: Due to Sponsor Company 13,715 19,037 Payable for fund shares purchased -- -- Other liabilities -- -- ------------- ------------- Total liabilities 13,715 19,037 ------------- ------------- NET ASSETS: For contract liabilities $22,345,330 $16,214,421 ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,553,839 9,201,344 Minimum unit fair value #* $11.116423 $1.076636 Maximum unit fair value #* $15.493668 $15.686783 Contract liability $22,297,942 $16,083,528 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 3,283 98,048 Minimum unit fair value #* $14.285792 $1.173733 Maximum unit fair value #* $14.564771 $1.412800 Contract liability $47,388 $130,893
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. (4) Formerly Hartford Advisers HLS Fund. Change effective June 29, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-14 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD TOTAL CAPITAL DIVIDEND HARTFORD RETURN BOND APPRECIATION AND GROWTH GLOBAL RESEARCH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 13,749,971 3,289,527 4,692,825 32,332 ============== ============== ============== ============ Cost $149,809,420 $113,824,534 $79,335,002 $294,342 ============== ============== ============== ============ Market value $164,645,071 $142,494,692 $100,678,896 $340,243 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 83,231 89,071 60,345 52 Other assets 4 2 1 1 -------------- -------------- -------------- ------------ Total assets 164,728,306 142,583,765 100,739,242 340,296 -------------- -------------- -------------- ------------ LIABILITIES: Due to Sponsor Company 83,231 89,071 60,345 52 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- -------------- -------------- -------------- ------------ Total liabilities 83,231 89,071 60,345 52 -------------- -------------- -------------- ------------ NET ASSETS: For contract liabilities $164,645,075 $142,494,694 $100,678,897 $340,244 ============== ============== ============== ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 33,018,666 25,402,701 18,789,864 33,347 Minimum unit fair value #* $1.412253 $1.349318 $1.291440 $9.664197 Maximum unit fair value #* $13.530264 $17.226128 $15.575605 $16.926066 Contract liability $164,504,061 $142,293,074 $100,622,290 $340,244 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 78,337 75,892 38,051 -- Minimum unit fair value #* $1.539495 $1.477620 $1.414217 -- Maximum unit fair value #* $12.220173 $9.698099 $1.698622 -- Contract liability $141,014 $201,620 $56,607 -- HARTFORD HARTFORD HARTFORD DISCIPLINED HEALTHCARE GLOBAL GROWTH EQUITY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of shares 9,939 41,979 908,890 =========== ============ ============= Cost $131,956 $732,222 $9,374,833 =========== ============ ============= Market value $176,031 $689,813 $12,398,837 Due from Sponsor Company -- 8,777 -- Receivable from fund shares sold 20 -- 2,211 Other assets -- 1 -- ----------- ------------ ------------- Total assets 176,051 698,591 12,401,048 ----------- ------------ ------------- LIABILITIES: Due to Sponsor Company 20 -- 2,211 Payable for fund shares purchased -- 8,777 -- Other liabilities -- -- 1 ----------- ------------ ------------- Total liabilities 20 8,777 2,212 ----------- ------------ ------------- NET ASSETS: For contract liabilities $176,031 $689,814 $12,398,836 =========== ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 68,159 255,098 1,276,813 Minimum unit fair value #* $2.478414 $1.719632 $1.428693 Maximum unit fair value #* $2.586919 $15.828805 $16.212429 Contract liability $176,031 $686,996 $12,395,173 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 1,545 2,514 Minimum unit fair value #* -- $1.824202 $1.456919 Maximum unit fair value #* -- $1.824202 $1.456919 Contract liability -- $2,818 $3,663
SA-15 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------- ASSETS: Investments: Number of shares 92,082 1,030,474 ============ ============= Cost $969,169 $21,486,361 ============ ============= Market value $1,187,943 $30,798,247 Due from Sponsor Company -- 113,739 Receivable from fund shares sold 177 -- Other assets -- -- ------------ ------------- Total assets 1,188,120 30,911,986 ------------ ------------- LIABILITIES: Due to Sponsor Company 177 -- Payable for fund shares purchased -- 113,739 Other liabilities -- 2 ------------ ------------- Total liabilities 177 113,741 ------------ ------------- NET ASSETS: For contract liabilities $1,187,943 $30,798,245 ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 135,049 3,054,682 Minimum unit fair value #* $1.394765 $1.653911 Maximum unit fair value #* $16.665249 $16.941089 Contract liability $1,187,943 $30,798,245 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-16 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL SMALL/MID CAP HIGH YIELD INDEX OPPORTUNITIES EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,103,408 205,106 714,528 241,278 ============= ============ ============ ============ Cost $9,344,278 $6,036,470 $7,946,893 $1,878,901 ============= ============ ============ ============ Market value $10,017,305 $6,062,982 $9,070,974 $2,146,371 Due from Sponsor Company 40,874 83,054 -- -- Receivable from fund shares sold -- -- 7,235 118 Other assets -- 1 3 -- ------------- ------------ ------------ ------------ Total assets 10,058,179 6,146,037 9,078,212 2,146,489 ------------- ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company -- -- 7,235 118 Payable for fund shares purchased 40,874 83,054 -- -- Other liabilities -- -- -- 3 ------------- ------------ ------------ ------------ Total liabilities 40,874 83,054 7,235 121 ------------- ------------ ------------ ------------ NET ASSETS: For contract liabilities $10,017,305 $6,062,983 $9,070,977 $2,146,368 ============= ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 762,984 479,373 2,660,735 179,534 Minimum unit fair value #* $1.977863 $5.263116 $1.359405 $11.003602 Maximum unit fair value #* $19.814350 $16.107393 $15.415411 $19.964205 Contract liability $10,017,305 $6,062,983 $9,040,368 $2,146,368 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 12,484 -- Minimum unit fair value #* -- -- $1.488683 -- Maximum unit fair value #* -- -- $9.214170 -- Contract liability -- -- $30,609 -- HARTFORD HARTFORD HARTFORD MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------------------------------------- ASSETS: Investments: Number of shares 41,774 28,619 195,450,134 ============ ============ ============== Cost $954,487 $282,049 $195,450,134 ============ ============ ============== Market value $1,167,562 $331,642 $195,450,134 Due from Sponsor Company -- -- -- Receivable from fund shares sold 103 54 1,142,582 Other assets -- -- -- ------------ ------------ -------------- Total assets 1,167,665 331,696 196,592,716 ------------ ------------ -------------- LIABILITIES: Due to Sponsor Company 103 54 1,142,582 Payable for fund shares purchased -- -- -- Other liabilities 1 -- 14 ------------ ------------ -------------- Total liabilities 104 54 1,142,596 ------------ ------------ -------------- NET ASSETS: For contract liabilities $1,167,561 $331,642 $195,450,120 ============ ============ ============== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 238,679 106,437 169,514,457 Minimum unit fair value #* $4.684135 $1.773993 $0.898119 Maximum unit fair value #* $4.776588 $13.470653 $9.942655 Contract liability $1,138,050 $331,642 $195,241,901 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 6,178 -- 192,618 Minimum unit fair value #* $4.776588 -- $0.979023 Maximum unit fair value #* $4.776588 -- $1.114977 Contract liability $29,511 -- $208,219
SA-17 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 215,680 48,096 ============ ============ Cost $3,189,208 $953,703 ============ ============ Market value $4,180,771 $1,223,154 Due from Sponsor Company -- -- Receivable from fund shares sold 103,152 119,685 Other assets 1 -- ------------ ------------ Total assets 4,283,924 1,342,839 ------------ ------------ LIABILITIES: Due to Sponsor Company 103,152 119,685 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------ Total liabilities 103,152 119,685 ------------ ------------ NET ASSETS: For contract liabilities $4,180,772 $1,223,154 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,528,353 106,353 Minimum unit fair value #* $1.422858 $1.722674 Maximum unit fair value #* $17.105530 $21.377204 Contract liability $4,162,240 $1,206,948 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 10,449 1,141 Minimum unit fair value #* $1.558169 $14.203494 Maximum unit fair value #* $1.962034 $14.203494 Contract liability $18,532 $16,206
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-18 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD AMERICAN FUNDS STOCK SECURITIES VALUE ASSET ALLOCATION HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 195,657 771,893 133,030 1,287,100 ============ ============ ============ ============= Cost $9,143,420 $8,169,992 $1,291,708 $11,387,022 ============ ============ ============ ============= Market value $8,747,784 $8,295,668 $1,577,097 $14,210,818 Due from Sponsor Company -- -- 47,675 2,310 Receivable from fund shares sold 1,072 12,530 -- -- Other assets -- -- -- 1 ------------ ------------ ------------ ------------- Total assets 8,748,856 8,308,198 1,624,772 14,213,129 ------------ ------------ ------------ ------------- LIABILITIES: Due to Sponsor Company 1,072 12,530 -- -- Payable for fund shares purchased -- -- 47,675 2,310 Other liabilities 2 2 -- -- ------------ ------------ ------------ ------------- Total liabilities 1,074 12,532 47,675 2,310 ------------ ------------ ------------ ------------- NET ASSETS: For contract liabilities $8,747,782 $8,295,666 $1,577,097 $14,210,819 ============ ============ ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 7,349,215 970,213 192,223 1,225,460 Minimum unit fair value #* $0.920603 $1.164575 $1.342484 $10.572757 Maximum unit fair value #* $17.323637 $11.394012 $15.653317 $15.205400 Contract liability $8,703,941 $8,295,666 $1,572,808 $14,210,819 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 35,654 -- 396 -- Minimum unit fair value #* $1.229622 -- $10.833557 -- Maximum unit fair value #* $1.229622 -- $10.833557 -- Contract liability $43,841 -- $4,289 -- AMERICAN FUNDS BLUE CHIP INCOME AND AMERICAN FUNDS AMERICAN FUNDS GROWTH BOND GLOBAL BOND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ----------------------------------------------------------------------- ASSETS: Investments: Number of shares 583,182 3,140,966 387,486 ============ ============= ============ Cost $4,594,930 $30,168,950 $3,881,447 ============ ============= ============ Market value $5,895,607 $33,037,180 $4,302,648 Due from Sponsor Company -- -- -- Receivable from fund shares sold 5,378 11,062 500 Other assets 1 -- -- ------------ ------------- ------------ Total assets 5,900,986 33,048,242 4,303,148 ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 5,378 11,062 500 Payable for fund shares purchased -- -- -- Other liabilities -- -- 3 ------------ ------------- ------------ Total liabilities 5,378 11,062 503 ------------ ------------- ------------ NET ASSETS: For contract liabilities $5,895,608 $33,037,180 $4,302,645 ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 579,345 2,970,955 370,709 Minimum unit fair value #* $9.619146 $10.599319 $10.669706 Maximum unit fair value #* $15.323942 $12.500323 $12.329999 Contract liability $5,895,608 $33,000,461 $4,302,645 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 3,336 -- Minimum unit fair value #* -- $11.008625 -- Maximum unit fair value #* -- $11.008625 -- Contract liability -- $36,719 --
SA-19 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL GROWTH AMERICAN FUNDS AND INCOME GLOBAL GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,245,863 329,686 ============= ============ Cost $9,276,651 $2,713,515 ============= ============ Market value $11,932,793 $3,446,586 Due from Sponsor Company 5,336 -- Receivable from fund shares sold -- 8,054 Other assets -- 2 ------------- ------------ Total assets 11,938,129 3,454,642 ------------- ------------ LIABILITIES: Due to Sponsor Company -- 8,054 Payable for fund shares purchased 5,336 -- Other liabilities 2 -- ------------- ------------ Total liabilities 5,338 8,054 ------------- ------------ NET ASSETS: For contract liabilities $11,932,791 $3,446,588 ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,207,407 323,206 Minimum unit fair value #* $9.327855 $10.012084 Maximum unit fair value #* $16.611730 $16.982842 Contract liability $11,932,791 $3,414,548 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 3,083 Minimum unit fair value #* -- $10.393325 Maximum unit fair value #* -- $10.393325 Contract liability -- $32,040
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-20 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS CAPITALIZATION GROWTH GROWTH-INCOME INTERNATIONAL HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,078,463 5,403,582 3,033,594 4,393,979 ============ ============= ============= ============= Cost $7,925,734 $40,527,266 $24,070,223 $33,129,450 ============ ============= ============= ============= Market value $8,935,634 $56,492,568 $30,944,587 $38,366,054 Due from Sponsor Company -- -- 41,375 -- Receivable from fund shares sold 5,501 22,308 -- 2,834 Other assets -- 3 -- -- ------------ ------------- ------------- ------------- Total assets 8,941,135 56,514,879 30,985,962 38,368,888 ------------ ------------- ------------- ------------- LIABILITIES: Due to Sponsor Company 5,501 22,308 -- 2,834 Payable for fund shares purchased -- -- 41,375 -- Other liabilities -- -- 1 -- ------------ ------------- ------------- ------------- Total liabilities 5,501 22,308 41,376 2,834 ------------ ------------- ------------- ------------- NET ASSETS: For contract liabilities $8,935,634 $56,492,571 $30,944,586 $38,366,054 ============ ============= ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 982,180 5,405,877 2,972,901 4,289,915 Minimum unit fair value #* $8.471939 $9.660438 $9.668837 $8.360003 Maximum unit fair value #* $18.014002 $17.971540 $16.147805 $15.602963 Contract liability $8,904,993 $56,415,511 $30,919,444 $38,342,223 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 3,484 7,666 2,505 2,746 Minimum unit fair value #* $8.794597 $10.051768 $10.037003 $8.678384 Maximum unit fair value #* $8.794597 $10.051768 $10.037003 $8.678384 Contract liability $30,641 $77,060 $25,142 $23,831 HARTFORD AMERICAN FUNDS PORTFOLIO HUNTINGTON VA NEW WORLD DIVERSIFIER INCOME HLS FUND HLS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- --------------------------------------------------------- ASSETS: Investments: Number of shares 771,630 4,673,782 426,059 ============ ============= ============ Cost $6,288,464 $45,509,963 $4,150,242 ============ ============= ============ Market value $7,300,894 $43,839,878 $4,090,166 Due from Sponsor Company -- 102,474 -- Receivable from fund shares sold 2,232 -- 4,184 Other assets 3 1 2 ------------ ------------- ------------ Total assets 7,303,129 43,942,353 4,094,352 ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 2,232 -- 4,184 Payable for fund shares purchased -- 102,474 -- Other liabilities -- -- -- ------------ ------------- ------------ Total liabilities 2,232 102,474 4,184 ------------ ------------- ------------ NET ASSETS: For contract liabilities $7,300,897 $43,839,879 $4,090,168 ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 696,793 4,718,791 1,011,689 Minimum unit fair value #* $9.457173 $8.956530 $1.265071 Maximum unit fair value #* $16.895634 $9.417426 $16.386427 Contract liability $7,300,897 $43,839,879 $4,090,168 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
SA-21 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
HUNTINGTON VA DIVIDEND HUNTINGTON VA CAPTURE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 623,848 289,578 ============ ============ Cost $7,458,274 $2,460,532 ============ ============ Market value $6,725,084 $2,409,286 Due from Sponsor Company -- -- Receivable from fund shares sold 14,296 4,199 Other assets -- -- ------------ ------------ Total assets 6,739,380 2,413,485 ------------ ------------ LIABILITIES: Due to Sponsor Company 14,296 4,199 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------ Total liabilities 14,296 4,199 ------------ ------------ NET ASSETS: For contract liabilities $6,725,084 $2,409,286 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,976,529 1,358,845 Minimum unit fair value #* $1.593481 $0.798347 Maximum unit fair value #* $17.608797 $13.470859 Contract liability $6,725,084 $2,409,286 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-22 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA MID CORP ROTATING INTERNATIONAL HUNTINGTON VA AMERICA FUND MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT (5) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 384,216 104,893 366,816 287,579 ============ ============ ============ ============ Cost $6,729,580 $1,282,357 $5,283,388 $2,785,307 ============ ============ ============ ============ Market value $7,107,998 $1,303,827 $5,219,797 $2,795,266 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 31,397 2,900 3,674 2,247 Other assets 1 1 -- -- ------------ ------------ ------------ ------------ Total assets 7,139,396 1,306,728 5,223,471 2,797,513 ------------ ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 31,397 2,900 3,674 2,247 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ------------ ------------ ------------ ------------ Total liabilities 31,397 2,900 3,674 2,247 ------------ ------------ ------------ ------------ NET ASSETS: For contract liabilities $7,107,999 $1,303,828 $5,219,797 $2,795,266 ============ ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,704,345 312,582 1,179,556 972,947 Minimum unit fair value #* $1.827363 $1.417233 $1.319495 $0.966856 Maximum unit fair value #* $19.139019 $16.438776 $14.418280 $15.076180 Contract liability $7,107,999 $1,303,828 $5,219,797 $2,795,266 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- -- Minimum unit fair value #* -- -- -- -- Maximum unit fair value #* -- -- -- -- Contract liability -- -- -- -- HUNTINGTON VA LORD ABBETT MORTGAGE HUNTINGTON VA FUNDAMENTAL SECURITIES FUND SITUS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of shares 269,000 317,570 98,323 ============ ============ ============ Cost $3,025,883 $4,455,811 $1,653,796 ============ ============ ============ Market value $3,217,238 $5,782,958 $1,731,468 Due from Sponsor Company -- -- -- Receivable from fund shares sold 1,996 32,577 1,494 Other assets -- -- -- ------------ ------------ ------------ Total assets 3,219,234 5,815,535 1,732,962 ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 1,996 32,577 1,494 Payable for fund shares purchased -- -- -- Other liabilities -- 1 -- ------------ ------------ ------------ Total liabilities 1,996 32,578 1,494 ------------ ------------ ------------ NET ASSETS: For contract liabilities $3,217,238 $5,782,957 $1,731,468 ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 740,411 2,906,501 136,090 Minimum unit fair value #* $1.162720 $1.546104 $11.067283 Maximum unit fair value #* $12.321661 $20.424090 $13.468330 Contract liability $3,217,238 $5,782,957 $1,731,468 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
(5) Effective April 27, 2012 Huntington VA New Economy Fund merged with Huntington VA Mid Corp America. SA-23 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
LORD ABBETT CALIBRATED LORD ABBETT DIVIDEND BOND GROWTH FUND DEBENTURE FUND SUB-ACCOUNT (6) SUB-ACCOUNT ------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 186,104 1,160,738 ============ ============= Cost $2,283,007 $12,447,212 ============ ============= Market value $2,646,395 $14,184,225 Due from Sponsor Company -- -- Receivable from fund shares sold 1,114 17,203 Other assets 1 1 ------------ ------------- Total assets 2,647,510 14,201,429 ------------ ------------- LIABILITIES: Due to Sponsor Company 1,114 17,203 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------- Total liabilities 1,114 17,203 ------------ ------------- NET ASSETS: For contract liabilities $2,646,396 $14,184,226 ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 223,826 1,019,096 Minimum unit fair value #* $11.453398 $13.275221 Maximum unit fair value #* $15.097163 $16.978901 Contract liability $2,646,396 $14,163,681 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 1,460 Minimum unit fair value #* -- $14.067263 Maximum unit fair value #* -- $14.067263 Contract liability -- $20,545
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. (6) Formerly Lord Abbett Capital Structure Fund. Change effective September 27, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-24 -------------------------------------------------------------------------------
LORD ABBETT GROWTH AND MFS(R) CORE MFS(R) GROWTH MFS(R) GLOBAL INCOME FUND EQUITY SERIES SERIES EQUITY SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 90,905 321,179 710,285 481,426 ============ ============ ============= ============ Cost $1,800,252 $5,184,675 $16,349,979 $5,951,230 ============ ============ ============= ============ Market value $2,235,361 $5,678,458 $20,452,998 $7,288,789 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 134 26,937 89,183 1,343 Other assets -- 1 -- -- ------------ ------------ ------------- ------------ Total assets 2,235,495 5,705,396 20,542,181 7,290,132 ------------ ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 134 26,937 89,183 1,343 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- 1 3 ------------ ------------ ------------- ------------ Total liabilities 134 26,937 89,184 1,346 ------------ ------------ ------------- ------------ NET ASSETS: For contract liabilities $2,235,361 $5,678,459 $20,452,997 $7,288,786 ============ ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 235,029 595,703 2,194,173 435,402 Minimum unit fair value #* $9.124707 $7.035600 $6.569011 $14.612304 Maximum unit fair value #* $9.669329 $16.613037 $16.946476 $19.929000 Contract liability $2,235,361 $5,601,368 $20,358,757 $7,255,342 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 7,849 9,608 2,097 Minimum unit fair value #* -- $7.713386 $7.138561 $15.951482 Maximum unit fair value #* -- $10.569931 $11.117367 $15.951482 Contract liability -- $77,091 $94,240 $33,444 MFS(R) INVESTORS MFS(R) HIGH GROWTH MFS(R) INVESTORS INCOME SERIES STOCK SERIES TRUST SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------------------- ASSETS: Investments: Number of shares 8,327,318 842,429 4,150,587 ============= ============= ============= Cost $75,193,736 $8,637,069 $75,755,923 ============= ============= ============= Market value $73,113,854 $10,286,064 $95,170,368 Due from Sponsor Company -- -- -- Receivable from fund shares sold 80,388 3,473 63,942 Other assets 1 -- -- ------------- ------------- ------------- Total assets 73,194,243 10,289,537 95,234,310 ------------- ------------- ------------- LIABILITIES: Due to Sponsor Company 80,388 3,473 63,942 Payable for fund shares purchased -- -- -- Other liabilities -- -- 5 ------------- ------------- ------------- Total liabilities 80,388 3,473 63,947 ------------- ------------- ------------- NET ASSETS: For contract liabilities $73,113,855 $10,286,064 $95,170,363 ============= ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 4,404,314 1,151,227 8,814,635 Minimum unit fair value #* $15.319801 $7.079226 $9.713409 Maximum unit fair value #* $19.155468 $16.838482 $15.101493 Contract liability $73,061,968 $10,204,245 $95,097,228 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 3,101 8,481 6,615 Minimum unit fair value #* $16.674415 $7.658907 $10.508703 Maximum unit fair value #* $17.246743 $10.619163 $12.449433 Contract liability $51,887 $81,819 $73,135
SA-25 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
MFS(R) MID CAP MFS(R) NEW GROWTH SERIES DISCOVERY SERIES SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 2,967,395 3,986,596 ============= ============= Cost $19,037,173 $57,884,046 ============= ============= Market value $19,466,113 $62,669,056 Due from Sponsor Company -- -- Receivable from fund shares sold 87,180 57,067 Other assets 1 -- ------------- ------------- Total assets 19,553,294 62,726,123 ------------- ------------- LIABILITIES: Due to Sponsor Company 87,180 57,067 Payable for fund shares purchased -- -- Other liabilities -- 2 ------------- ------------- Total liabilities 87,180 57,069 ------------- ------------- NET ASSETS: For contract liabilities $19,466,114 $62,669,054 ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 3,311,292 3,985,918 Minimum unit fair value #* $5.376609 $10.544547 Maximum unit fair value #* $18.493798 $23.903936 Contract liability $19,457,854 $62,519,917 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 1,365 8,527 Minimum unit fair value #* $6.050138 $12.387699 Maximum unit fair value #* $6.050138 $21.145397 Contract liability $8,260 $149,137
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-26 -------------------------------------------------------------------------------
MFS(R) TOTAL MFS(R) VALUE MFS(R) RESEARCH MFS(R) RESEARCH RETURN SERIES SERIES BOND SERIES INTERNATIONAL SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 15,739,119 5,998,107 6,383,079 1,649,433 ============== ============= ============= ============= Cost $310,069,838 $76,172,715 $77,276,316 $23,127,908 ============== ============= ============= ============= Market value $315,385,217 $86,066,143 $85,900,777 $20,403,491 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 215,738 135,206 4,219 32,237 Other assets -- -- 1 2 -------------- ------------- ------------- ------------- Total assets 315,600,955 86,201,349 85,904,997 20,435,730 -------------- ------------- ------------- ------------- LIABILITIES: Due to Sponsor Company 215,738 135,206 4,219 32,237 Payable for fund shares purchased -- -- -- -- Other liabilities 6 1 -- -- -------------- ------------- ------------- ------------- Total liabilities 215,744 135,207 4,219 32,237 -------------- ------------- ------------- ------------- NET ASSETS: For contract liabilities $315,385,211 $86,066,142 $85,900,778 $20,403,493 ============== ============= ============= ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 21,217,829 5,634,513 6,465,008 1,561,913 Minimum unit fair value #* $10.497182 $10.260802 $10.936840 $12.238894 Maximum unit fair value #* $17.914077 $19.317629 $14.384205 $14.584528 Contract liability $315,258,286 $86,064,958 $85,881,676 $20,396,439 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 7,966 66 1,416 540 Minimum unit fair value #* $14.456951 $17.956875 $13.460119 $13.064091 Maximum unit fair value #* $17.066066 $17.956875 $13.779293 $13.064091 Contract liability $126,925 $1,184 $19,102 $7,054 BLACKROCK BLACKROCK MFS(R) RESEARCH GLOBAL GLOBAL SERIES ALLOCATION V.I. FUND OPPORTUNITIES V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------------------------------------------------- ASSETS: Investments: Number of shares 228,008 6,752 1,517 ============ ============ ============ Cost $4,173,417 $94,694 $20,001 ============ ============ ============ Market value $4,981,966 $96,822 $21,086 Due from Sponsor Company -- -- -- Receivable from fund shares sold 46,610 5 4 Other assets -- -- -- ------------ ------------ ------------ Total assets 5,028,576 96,827 21,090 ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 46,610 5 4 Payable for fund shares purchased -- -- -- Other liabilities 1 -- -- ------------ ------------ ------------ Total liabilities 46,611 5 4 ------------ ------------ ------------ NET ASSETS: For contract liabilities $4,981,965 $96,822 $21,086 ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 379,049 9,304 1,462 Minimum unit fair value #* $12.462085 $10.372214 $14.419749 Maximum unit fair value #* $14.183107 $10.488588 $14.419749 Contract liability $4,981,965 $96,822 $21,086 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
SA-27 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
BLACKROCK BLACKROCK LARGE CAP EQUITY GROWTH V.I. FUND DIVIDEND V.I. FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 35,922 114,977 ============ ============ Cost $347,872 $994,751 ============ ============ Market value $414,538 $1,029,040 Due from Sponsor Company -- -- Receivable from fund shares sold 70 62 Other assets -- -- ------------ ------------ Total assets 414,608 1,029,102 ------------ ------------ LIABILITIES: Due to Sponsor Company 70 62 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------ Total liabilities 70 62 ------------ ------------ NET ASSETS: For contract liabilities $414,538 $1,029,040 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 35,872 89,954 Minimum unit fair value #* $9.805179 $11.271579 Maximum unit fair value #* $11.776568 $11.598160 Contract liability $414,538 $1,029,040 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-28 -------------------------------------------------------------------------------
INVESCO MORGAN STANLEY UIF MID CAP VAN KAMPEN V.I. MORGAN STANLEY -- MULTI CAP GROWTH AMERICAN FOCUS GROWTH GROWTH PORTFOLIO VALUE FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT (7) SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 197,929 56,494 214 11,726 ============ ============ =========== =========== Cost $1,806,353 $664,395 $5,228 $163,612 ============ ============ =========== =========== Market value $2,105,964 $836,670 $4,896 $180,121 Due from Sponsor Company -- 102,077 -- -- Receivable from fund shares sold 10,565 -- 1 73 Other assets -- -- 1 -- ------------ ------------ ----------- ----------- Total assets 2,116,529 938,747 4,898 180,194 ------------ ------------ ----------- ----------- LIABILITIES: Due to Sponsor Company 10,565 -- 1 73 Payable for fund shares purchased -- 102,077 -- -- Other liabilities -- -- -- -- ------------ ------------ ----------- ----------- Total liabilities 10,565 102,077 1 73 ------------ ------------ ----------- ----------- NET ASSETS: For contract liabilities $2,105,964 $836,670 $4,897 $180,121 ============ ============ =========== =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 179,713 69,297 589 33,561 Minimum unit fair value #* $11.004969 $11.550241 $8.314405 $5.104420 Maximum unit fair value #* $19.983285 $19.331118 $8.314405 $5.653693 Contract liability $2,081,401 $836,670 $4,897 $180,121 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 2,147 -- -- -- Minimum unit fair value #* $11.438423 -- -- -- Maximum unit fair value #* $11.438423 -- -- -- Contract liability $24,563 -- -- -- MORGAN STANLEY -- MID CAP MORGAN STANLEY -- BLACKROCK GROWTH FLEXIBLE INCOME CAPITAL PORTFOLIO PORTFOLIO APPRECIATION V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of shares 5,358 13,211 114,739 ============ ============ ============ Cost $193,733 $86,554 $958,777 ============ ============ ============ Market value $171,993 $84,156 $972,985 Due from Sponsor Company -- -- -- Receivable from fund shares sold 44 12 58 Other assets -- -- -- ------------ ------------ ------------ Total assets 172,037 84,168 973,043 ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 44 12 58 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------ ------------ ------------ Total liabilities 44 12 58 ------------ ------------ ------------ NET ASSETS: For contract liabilities $171,993 $84,156 $972,985 ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 15,178 6,472 95,996 Minimum unit fair value #* $10.870781 $12.970010 $9.927679 Maximum unit fair value #* $11.821534 $13.037470 $11.074227 Contract liability $171,993 $84,156 $972,985 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
(7) Formerly Invesco Van Kampen V.I. Mid Cap Value Fund. Change effective July 15, 2012. SA-29 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
COLUMBIA VARIABLE PORTFOLIO -- COLUMBIA VARIABLE MARSICO INTERNATIONAL PORTFOLIO -- OPPORTUNITIES FUND HIGH INCOME FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 583,759 975,966 ============ ============= Cost $7,116,922 $9,262,357 ============ ============= Market value $9,036,590 $10,423,316 Due from Sponsor Company -- -- Receivable from fund shares sold 3,358 5,056 Other assets -- -- ------------ ------------- Total assets 9,039,948 10,428,372 ------------ ------------- LIABILITIES: Due to Sponsor Company 3,358 5,056 Payable for fund shares purchased -- -- Other liabilities -- 1 ------------ ------------- Total liabilities 3,358 5,057 ------------ ------------- NET ASSETS: For contract liabilities $9,036,590 $10,423,315 ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 5,430,398 4,607,244 Minimum unit fair value #* $1.420056 $1.975793 Maximum unit fair value #* $15.293945 $18.515385 Contract liability $9,024,565 $10,422,147 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 7,768 542 Minimum unit fair value #* $1.548002 $2.153769 Maximum unit fair value #* $1.548002 $2.153769 Contract liability $12,025 $1,168
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-30 -------------------------------------------------------------------------------
COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- MARSICO FOCUSED ASSET ALLOCATION MARSICO MARSICO 21ST EQUITIES FUND FUND GROWTH FUND CENTURY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 472,118 305,414 302,386 158,143 ============ ============ ============ ============ Cost $6,581,247 $4,681,717 $4,439,129 $1,205,809 ============ ============ ============ ============ Market value $7,799,398 $3,985,656 $6,709,941 $1,872,418 Due from Sponsor Company 336 -- -- -- Receivable from fund shares sold -- 992 9,630 5,450 Other assets -- 1 1 2 ------------ ------------ ------------ ------------ Total assets 7,799,734 3,986,649 6,719,572 1,877,870 ------------ ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company -- 992 9,630 5,450 Payable for fund shares purchased 336 -- -- -- Other liabilities 2 -- -- -- ------------ ------------ ------------ ------------ Total liabilities 338 992 9,630 5,450 ------------ ------------ ------------ ------------ NET ASSETS: For contract liabilities $7,799,396 $3,985,657 $6,709,942 $1,872,420 ============ ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 5,949,085 3,277,466 4,879,141 1,142,435 Minimum unit fair value #* $1.149085 $1.123871 $1.147550 $1.414410 Maximum unit fair value #* $15.407448 $14.748823 $15.436848 $13.748175 Contract liability $7,799,396 $3,971,159 $6,686,104 $1,869,633 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 11,833 19,055 1,807 Minimum unit fair value #* -- $1.225172 $1.251027 $1.541885 Maximum unit fair value #* -- $1.225172 $1.251027 $1.541885 Contract liability -- $14,498 $23,838 $2,787 COLUMBIA VARIABLE COLUMBIA VARIABLE OPPENHEIMER PORTFOLIO -- PORTFOLIO -- CAPITAL MID CAP DIVIDEND APPRECIATION GROWTH FUND OPPORTUNITY FUND FUND/VA SUB-ACCOUNT SUB-ACCOUNT (8) SUB-ACCOUNT ------------------------------- ---------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,174,160 691,442 10,814 ============ ============ ============ Cost $8,023,215 $9,921,303 $376,006 ============ ============ ============ Market value $9,616,372 $9,901,447 $482,975 Due from Sponsor Company -- -- -- Receivable from fund shares sold 2,297 11,297 18 Other assets -- 1 -- ------------ ------------ ------------ Total assets 9,618,669 9,912,745 482,993 ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 2,297 11,297 18 Payable for fund shares purchased -- -- -- Other liabilities -- -- 1 ------------ ------------ ------------ Total liabilities 2,297 11,297 19 ------------ ------------ ------------ NET ASSETS: For contract liabilities $9,616,372 $9,901,448 $482,974 ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 7,972,016 1,030,576 47,922 Minimum unit fair value #* $0.993174 $9.497019 $9.584110 Maximum unit fair value #* $18.436924 $9.672993 $16.467674 Contract liability $9,616,372 $9,900,304 $482,974 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- 118 -- Minimum unit fair value #* -- $9.672993 -- Maximum unit fair value #* -- $9.672993 -- Contract liability -- $1,144 --
(8) Formerly Columbia Variable Portfolio -- Diversified Equity Income Fund. Change effective June 29, 2012. SA-31 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
OPPENHEIMER OPPENHEIMER GLOBAL SECURITIES MAIN STREET FUND/VA FUND(R)/VA SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 211,053 46,690 ============ ============ Cost $4,960,534 $814,547 ============ ============ Market value $6,806,455 $1,110,300 Due from Sponsor Company -- -- Receivable from fund shares sold 944 308 Other assets -- -- ------------ ------------ Total assets 6,807,399 1,110,608 ------------ ------------ LIABILITIES: Due to Sponsor Company 944 308 Payable for fund shares purchased -- -- Other liabilities 1 1 ------------ ------------ Total liabilities 945 309 ------------ ------------ NET ASSETS: For contract liabilities $6,806,454 $1,110,299 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 619,524 100,874 Minimum unit fair value #* $10.482323 $10.602933 Maximum unit fair value #* $17.327392 $16.287648 Contract liability $6,806,454 $1,110,299 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-32 -------------------------------------------------------------------------------
OPPENHEIMER MAIN STREET OPPENHEIMER PUTNAM VT PUTNAM VT SMALL- & MID-CAP VALUE DIVERSIFIED GLOBAL ASSET FUND/VA FUND/VA INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 297,146 17,002 3,180,488 152,387 ============ ============ ============= ============ Cost $3,768,255 $146,793 $21,768,674 $2,201,459 ============ ============ ============= ============ Market value $5,931,035 $184,136 $23,058,537 $2,453,433 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 104,911 7 12,548 436 Other assets -- -- -- 1 ------------ ------------ ------------- ------------ Total assets 6,035,946 184,143 23,071,085 2,453,870 ------------ ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 104,911 7 12,548 436 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- 1 -- ------------ ------------ ------------- ------------ Total liabilities 104,911 7 12,549 436 ------------ ------------ ------------- ------------ NET ASSETS: For contract liabilities $5,931,035 $184,136 $23,058,536 $2,453,434 ============ ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 480,151 18,599 1,730,044 163,959 Minimum unit fair value #* $11.752013 $9.461400 $12.075071 $10.968758 Maximum unit fair value #* $19.057753 $10.026112 $17.996572 $16.804647 Contract liability $5,931,035 $184,136 $23,058,536 $2,453,434 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- -- Minimum unit fair value #* -- -- -- -- Maximum unit fair value #* -- -- -- -- Contract liability -- -- -- -- PUTNAM VT PUTNAM VT PUTNAM VT INTERNATIONAL INTERNATIONAL SMALL CAP VALUE FUND EQUITY FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------------------------- ASSETS: Investments: Number of shares 22,522 31,058 133,249 ============ =========== ============ Cost $202,911 $297,979 $1,746,967 ============ =========== ============ Market value $209,457 $351,891 $2,037,386 Due from Sponsor Company 52,383 -- 128,103 Receivable from fund shares sold -- 51 -- Other assets -- -- -- ------------ ----------- ------------ Total assets 261,840 351,942 2,165,489 ------------ ----------- ------------ LIABILITIES: Due to Sponsor Company -- 51 -- Payable for fund shares purchased 52,383 -- 128,103 Other liabilities -- -- 1 ------------ ----------- ------------ Total liabilities 52,383 51 128,104 ------------ ----------- ------------ NET ASSETS: For contract liabilities $209,457 $351,891 $2,037,385 ============ =========== ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 26,718 44,962 124,851 Minimum unit fair value #* $7.606317 $7.562887 $11.147043 Maximum unit fair value #* $13.902110 $8.034559 $18.112429 Contract liability $209,457 $351,891 $2,037,385 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
SA-33 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
JPMORGAN INSURANCE TRUST PUTNAM VT CORE BOND VOYAGER FUND PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 65,046 6,961,476 ============ ============= Cost $2,307,827 $76,516,895 ============ ============= Market value $2,352,711 $82,006,190 Due from Sponsor Company -- -- Receivable from fund shares sold 175 49,669 Other assets 1 -- ------------ ------------- Total assets 2,352,887 82,055,859 ------------ ------------- LIABILITIES: Due to Sponsor Company 175 49,669 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------- Total liabilities 175 49,669 ------------ ------------- NET ASSETS: For contract liabilities $2,352,712 $82,006,190 ============ ============= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 177,838 5,902,959 Minimum unit fair value #* $10.136459 $12.079745 Maximum unit fair value #* $14.310109 $20.804323 Contract liability $2,352,712 $82,006,190 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-34 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST U.S. EQUITY INTREPID MID CAP EQUITY INDEX INTREPID GROWTH PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 411,603 488,960 2,342,275 199,633 ============ ============ ============= ============ Cost $6,287,281 $8,885,667 $25,858,242 $3,073,065 ============ ============ ============= ============ Market value $7,260,683 $8,595,926 $29,044,210 $3,513,547 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 9,490 1,164 38,166 719 Other assets -- 1 -- 1 ------------ ------------ ------------- ------------ Total assets 7,270,173 8,597,091 29,082,376 3,514,267 ------------ ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 9,490 1,164 38,166 719 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ------------ ------------ ------------- ------------ Total liabilities 9,490 1,164 38,166 719 ------------ ------------ ------------- ------------ NET ASSETS: For contract liabilities $7,260,683 $8,595,927 $29,044,210 $3,513,548 ============ ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 502,862 550,950 2,252,854 264,863 Minimum unit fair value #* $13.350534 $11.384495 $12.172518 $12.218584 Maximum unit fair value #* $22.311620 $34.277260 $15.925283 $19.146686 Contract liability $7,260,683 $8,595,927 $29,044,210 $3,513,548 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- -- Minimum unit fair value #* -- -- -- -- Maximum unit fair value #* -- -- -- -- Contract liability -- -- -- -- JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST PUTNAM VT MID CAP GROWTH MID CAP VALUE EQUITY PORTFOLIO -- 1 PORTFOLIO -- 1 INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of shares 459,062 747,208 1,737 ============ ============ ============ Cost $8,415,222 $9,455,812 $23,495 ============ ============ ============ Market value $8,359,517 $6,104,689 $27,304 Due from Sponsor Company -- -- -- Receivable from fund shares sold 7,202 15,129 1 Other assets 1 2 -- ------------ ------------ ------------ Total assets 8,366,720 6,119,820 27,305 ------------ ------------ ------------ LIABILITIES: Due to Sponsor Company 7,202 15,129 1 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------ ------------ ------------ Total liabilities 7,202 15,129 1 ------------ ------------ ------------ NET ASSETS: For contract liabilities $8,359,518 $6,104,691 $27,304 ============ ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 558,702 380,569 1,759 Minimum unit fair value #* $11.499953 $12.785886 $12.488476 Maximum unit fair value #* $18.643766 $25.522488 $16.119278 Contract liability $8,359,518 $6,104,691 $27,304 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
SA-35 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
PIMCO PIMCO ALL ASSET EQS PATHFINDER PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------- ASSETS: Investments: Number of shares 14,678 78,953 ============ ============ Cost $161,549 $820,204 ============ ============ Market value $168,501 $844,011 Due from Sponsor Company -- -- Receivable from fund shares sold 3 17 Other assets -- -- ------------ ------------ Total assets 168,504 844,028 ------------ ------------ LIABILITIES: Due to Sponsor Company 3 17 Payable for fund shares purchased -- -- Other liabilities -- -- ------------ ------------ Total liabilities 3 17 ------------ ------------ NET ASSETS: For contract liabilities $168,501 $844,011 ============ ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 14,671 81,722 Minimum unit fair value #* $11.320194 $10.162951 Maximum unit fair value #* $11.527936 $10.633531 Contract liability $168,501 $844,011 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-36 -------------------------------------------------------------------------------
PIMCO GLOBAL JENNISON 20/20 PRUDENTIAL MULTI-ASSET FOCUS JENNISON VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT (9) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 965 8,467 6,773 4,667 ============ ============ =========== =========== Cost $12,111 $101,289 $183,000 $85,523 ============ ============ =========== =========== Market value $12,313 $131,830 $179,422 $84,945 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold -- 6 74 220 Other assets -- -- -- -- ------------ ------------ ----------- ----------- Total assets 12,313 131,836 179,496 85,165 ------------ ------------ ----------- ----------- LIABILITIES: Due to Sponsor Company -- 6 74 220 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- 1 -- ------------ ------------ ----------- ----------- Total liabilities -- 6 75 220 ------------ ------------ ----------- ----------- NET ASSETS: For contract liabilities $12,313 $131,830 $179,421 $84,945 ============ ============ =========== =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 1,186 44,545 80,069 66,136 Minimum unit fair value #* $10.381024 $1.470740 $0.995530 $1.211291 Maximum unit fair value #* $10.381024 $15.458007 $7.762953 $1.308669 Contract liability $12,313 $131,830 $145,042 $84,945 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 4,429 -- Minimum unit fair value #* -- -- $7.762953 -- Maximum unit fair value #* -- -- $7.762953 -- Contract liability -- -- $34,379 -- PRUDENTIAL LEGG MASON LEGG MASON SERIES CLEARBRIDGE CLEARBRIDGE VARIABLE INTERNATIONAL VARIABLE EQUITY FUNDAMENTAL GROWTH INCOME BUILDER ALL CAP VALUE PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ---------------------------------------------------------------------- ASSETS: Investments: Number of shares 834 4,907 31,575 =========== ============ =========== Cost $6,221 $69,933 $753,678 =========== ============ =========== Market value $4,371 $56,878 $649,498 Due from Sponsor Company -- 21 7 Receivable from fund shares sold -- -- -- Other assets -- -- -- ----------- ------------ ----------- Total assets 4,371 56,899 649,505 ----------- ------------ ----------- LIABILITIES: Due to Sponsor Company -- -- -- Payable for fund shares purchased -- 21 7 Other liabilities -- -- -- ----------- ------------ ----------- Total liabilities -- 21 7 ----------- ------------ ----------- NET ASSETS: For contract liabilities $4,371 $56,878 $649,498 =========== ============ =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 4,448 5,511 64,277 Minimum unit fair value #* $0.982742 $10.320951 $9.383529 Maximum unit fair value #* $0.982742 $10.320951 $9.491930 Contract liability $4,371 $56,878 $609,816 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 4,181 Minimum unit fair value #* -- -- $9.491930 Maximum unit fair value #* -- -- $9.491930 Contract liability -- -- $39,682
(9) Funded as of February 28, 2012. SA-37 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
WESTERN ASSET LEGG MASON VARIABLE GLOBAL CLEARBRIDGE VARIABLE HIGH YIELD BOND LARGE CAP VALUE PORTFOLIO PORTFOLIO SUB-ACCOUNT (10) SUB-ACCOUNT ------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 7,052 16,175 =========== =========== Cost $61,147 $208,715 =========== =========== Market value $57,261 $249,253 Due from Sponsor Company 37 15 Receivable from fund shares sold -- -- Other assets -- -- ----------- ----------- Total assets 57,298 249,268 ----------- ----------- LIABILITIES: Due to Sponsor Company -- -- Payable for fund shares purchased 37 15 Other liabilities -- -- ----------- ----------- Total liabilities 37 15 ----------- ----------- NET ASSETS: For contract liabilities $57,261 $249,253 =========== =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 25,904 167,940 Minimum unit fair value #* $2.134001 $1.456722 Maximum unit fair value #* $2.228629 $1.485506 Contract liability $57,261 $249,253 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. (10) Formerly Legg Mason Western Asset Variable Global High Yield Bond Portfolio. Change effective November 1, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-38 -------------------------------------------------------------------------------
INVESCO INVESCO VAN KAMPEN V.I. INVESCO VAN KAMPEN V.I. GROWTH AND VAN KAMPEN V.I. AMERICAN INCOME FUND COMSTOCK FUND FRANCHISE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (11)(12) ------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of shares 77,567 27,189 651,292 ========== ========== =========== Cost $1,255,309 $387,312 $24,018,555 ========== ========== =========== Market value $1,553,673 $359,435 $23,600,565 Due from Sponsor Company 139 -- -- Receivable from fund shares sold -- 19 109,166 Other assets -- -- -- ---------- ---------- ----------- Total assets 1,553,812 359,454 23,709,731 ---------- ---------- ----------- LIABILITIES: Due to Sponsor Company -- 19 109,166 Payable for fund shares purchased 139 -- -- Other liabilities 1 -- 2 ---------- ---------- ----------- Total liabilities 140 19 109,168 ---------- ---------- ----------- NET ASSETS: For contract liabilities $1,553,672 $359,435 $23,600,563 ========== ========== =========== DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 136,154 22,275 2,302,553 Minimum unit fair value #* $10.343643 $15.421242 $9.756071 Maximum unit fair value #* $16.989759 $16.984478 $10.441741 Contract liability $1,553,672 $359,435 $23,538,754 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- 5,992 Minimum unit fair value #* -- -- $10.283931 Maximum unit fair value #* -- -- $10.339350 Contract liability -- -- $61,809 INVESCO WELLS FARGO WELLS FARGO VAN KAMPEN V.I. ADVANTAGE VT ADVANTAGE VT MID CAP INDEX ASSET TOTAL RETURN GROWTH FUND ALLOCATION FUND BOND FUND SUB-ACCOUNT (13)(14) SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of shares 710,536 1,501 1,625 ========== ========== ========= Cost $2,821,837 $19,883 $16,669 ========== ========== ========= Market value $2,783,539 $20,222 $17,578 Due from Sponsor Company -- -- -- Receivable from fund shares sold 804 1 1 Other assets -- -- -- ---------- ---------- --------- Total assets 2,784,343 20,223 17,579 ---------- ---------- --------- LIABILITIES: Due to Sponsor Company 804 1 1 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- ---------- --------- Total liabilities 804 1 1 ---------- ---------- --------- NET ASSETS: For contract liabilities $2,783,539 $20,222 $17,578 ========== ========== ========= DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 282,900 5,180 10,722 Minimum unit fair value #* $9.767694 $1.461617 $1.639407 Maximum unit fair value #* $9.924071 $15.095876 $1.639407 Contract liability $2,783,539 $20,222 $17,578 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- -- Minimum unit fair value #* -- -- -- Maximum unit fair value #* -- -- -- Contract liability -- -- --
(11) Effective April 27, 2012 Invesco V.I. Capital Appreciation Fund merged with Invesco Van Kampen V.I. Capital Growth Fund. (12) Formerly Invesco Van Kampen V.I. Capital Growth Fund. Change effective April 30, 2012. (13) Funded as of April 27, 2012. (14) Effective April 27, 2012 Invesco V.I. Capital Development Fund merged with Invesco Van Kampen V.I. Mid Cap Growth Fund. SA-39 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED) DECEMBER 31, 2012 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT INTRINSIC INTERNATIONAL VALUE FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------- ASSETS: Investments: Number of shares 1,937 279,107 =========== ============ Cost $26,785 $1,388,746 =========== ============ Market value $28,343 $1,378,828 Due from Sponsor Company -- -- Receivable from fund shares sold 1 372 Other assets -- 1 ----------- ------------ Total assets 28,344 1,379,201 ----------- ------------ LIABILITIES: Due to Sponsor Company 1 372 Payable for fund shares purchased -- -- Other liabilities -- -- ----------- ------------ Total liabilities 1 372 ----------- ------------ NET ASSETS: For contract liabilities $28,343 $1,378,829 =========== ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 22,196 1,186,484 Minimum unit fair value #* $1.246468 $0.918360 Maximum unit fair value #* $1.315436 $13.316669 Contract liability $28,343 $1,378,829 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # -- -- Minimum unit fair value #* -- -- Maximum unit fair value #* -- -- Contract liability -- --
# Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-40 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT WELLS FARGO ADVANTAGE VT WELLS FARGO SMALL CAP ADVANTAGE VT SMALL CAP ADVANTAGE VT GROWTH FUND DISCOVERY FUND VALUE FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of shares 201,637 206 1,298,667 465,314 ============ ============ ============= ============ Cost $1,344,686 $3,903 $9,714,453 $7,759,940 ============ ============ ============= ============ Market value $1,598,916 $5,194 $12,220,443 $9,315,735 Due from Sponsor Company -- -- -- -- Receivable from fund shares sold 157 -- 2,622 2,659 Other assets -- -- 1 -- ------------ ------------ ------------- ------------ Total assets 1,599,073 5,194 12,223,066 9,318,394 ------------ ------------ ------------- ------------ LIABILITIES: Due to Sponsor Company 157 -- 2,622 2,659 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ------------ ------------ ------------- ------------ Total liabilities 157 -- 2,622 2,659 ------------ ------------ ------------- ------------ NET ASSETS: For contract liabilities $1,598,916 $5,194 $12,220,444 $9,315,735 ============ ============ ============= ============ DEFERRED CONTRACTS IN THE ACCUMULATION PERIOD: Units owned by participants # 131,053 290 977,545 780,248 Minimum unit fair value #* $1.632425 $17.968169 $11.165283 $11.483444 Maximum unit fair value #* $12.903704 $17.968169 $12.892309 $12.114819 Contract liability $1,597,577 $5,194 $12,219,266 $9,315,735 CONTRACTS IN PAYOUT (ANNUITIZATION) PERIOD: Units owned by participants # 104 -- 93 -- Minimum unit fair value #* $12.872077 -- $12.626244 -- Maximum unit fair value #* $12.872077 -- $12.626244 -- Contract liability $1,339 -- $1,178 --
SA-41 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN CENTURY VP AMERICAN CENTURY VP VALUE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (1) ---------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $29,845 $128 -------- ----- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (10,870) (157) -------- ----- Total expenses (10,870) (157) -------- ----- Net investment income (loss) 18,975 (29) -------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 8,245 3 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 119,346 (206) -------- ----- Net gain (loss) on investments 127,591 (203) -------- ----- Net increase (decrease) in net assets resulting from operations $146,566 $(232) ======== =====
(1) Funded as of April 9, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-42 -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN VPS BALANCED WEALTH VPS INTERNATIONAL VPS SMALL/MID-CAP ALLIANCEBERNSTEIN STRATEGY PORTFOLIO VALUE PORTFOLIO VALUE PORTFOLIO VPS VALUE PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $101,547 $105,412 $4,982 $3,661 -------- -------- -------- ------- EXPENSES: Administrative charges -- -- -- -- Mortality and expense risk charges (75,196) (119,285) (27,194) (3,475) -------- -------- -------- ------- Total expenses (75,196) (119,285) (27,194) (3,475) -------- -------- -------- ------- Net investment income (loss) 26,351 (13,873) (22,212) 186 -------- -------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 239,452 (116,449) 46,929 10,917 Net realized gain on distributions -- -- 55,106 -- Net unrealized appreciation (depreciation) of investments during the year 310,242 1,040,038 172,264 12,770 -------- -------- -------- ------- Net gain (loss) on investments 549,694 923,589 274,299 23,687 -------- -------- -------- ------- Net increase (decrease) in net assets resulting from operations $576,045 $909,716 $252,087 $23,873 ======== ======== ======== ======= INVESCO ALLIANCEBERNSTEIN VAN KAMPEN V.I. INVESCO V.I. VPS INTERNATIONAL VALUE CORE GROWTH PORTFOLIO OPPORTUNITIES FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT (2) SUB-ACCOUNT ------------------------------- ----------------------------------------------------------- INVESTMENT INCOME: Dividends $16,506 $399,838 $574,288 -------- ---------- ---------- EXPENSES: Administrative charges -- (40,748) (101,778) Mortality and expense risk charges (20,323) (479,395) (1,040,416) -------- ---------- ---------- Total expenses (20,323) (520,143) (1,142,194) -------- ---------- ---------- Net investment income (loss) (3,817) (120,305) (567,906) -------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (16,251) (3,075,871) 2,610,784 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 163,292 7,242,980 4,976,542 -------- ---------- ---------- Net gain (loss) on investments 147,041 4,167,109 7,587,326 -------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $143,224 $4,046,804 $7,019,420 ======== ========== ==========
(2) Formerly Invesco V.I. Basic Value Fund. Change effective April 30, 2012. SA-43 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. GOVERNMENT HIGH SECURITIES FUND YIELD FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $7,662,847 $66,784 ------------- ---------- EXPENSES: Administrative charges (373,224) (2,148) Mortality and expense risk charges (4,243,260) (22,899) ------------- ---------- Total expenses (4,616,484) (25,047) ------------- ---------- Net investment income (loss) 3,046,363 41,737 ------------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,250,658 (6,718) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (3,373,645) 134,856 ------------- ---------- Net gain (loss) on investments (1,122,987) 128,138 ------------- ---------- Net increase (decrease) in net assets resulting from operations $1,923,376 $169,875 ============= ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-44 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. BALANCED RISK INTERNATIONAL MID CAP CORE SMALL CAP ALLOCATION GROWTH FUND EQUITY FUND EQUITY FUND FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $895,467 $36,054 $ -- $35,711 ------------- ------------- ------------ ---------- EXPENSES: Administrative charges (74,756) (84,930) (30) -- Mortality and expense risk charges (980,527) (1,016,037) (725,442) (68,523) ------------- ------------- ------------ ---------- Total expenses (1,055,283) (1,100,967) (725,472) (68,523) ------------- ------------- ------------ ---------- Net investment income (loss) (159,816) (1,064,913) (725,472) (32,812) ------------- ------------- ------------ ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,894,411 933,787 2,669,084 79,926 Net realized gain on distributions -- 469,223 -- 16,359 Net unrealized appreciation (depreciation) of investments during the year 6,380,521 4,763,384 2,599,023 268,671 ------------- ------------- ------------ ---------- Net gain (loss) on investments 8,274,932 6,166,394 5,268,107 364,956 ------------- ------------- ------------ ---------- Net increase (decrease) in net assets resulting from operations $8,115,116 $5,101,481 $4,542,635 $332,144 ============= ============= ============ ========== INVESCO V.I. AMERICAN CENTURY VP AMERICAN FUNDS DIVERSIFIED MID CAP GLOBAL DIVIDEND FUND VALUE FUND BOND FUND SUB-ACCOUNT (3) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------- INVESTMENT INCOME: Dividends $108 $801 $1,600,320 ------ ------- ------------- EXPENSES: Administrative charges -- -- -- Mortality and expense risk charges (100) (279) (1,399,138) ------ ------- ------------- Total expenses (100) (279) (1,399,138) ------ ------- ------------- Net investment income (loss) 8 522 201,182 ------ ------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (21) 36 2,382,750 Net realized gain on distributions -- 1,545 706,736 Net unrealized appreciation (depreciation) of investments during the year 894 2,712 155,059 ------ ------- ------------- Net gain (loss) on investments 873 4,293 3,244,545 ------ ------- ------------- Net increase (decrease) in net assets resulting from operations $881 $4,815 $3,445,727 ====== ======= =============
(3) Formerly Invesco V.I. Dividend Growth Fund. Change effective April 30, 2012. SA-45 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH AND ASSET INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $2,051,204 $4,664,227 ------------- ------------- EXPENSES: Administrative charges -- (428,042) Mortality and expense risk charges (1,453,496) (4,162,264) ------------- ------------- Total expenses (1,453,496) (4,590,306) ------------- ------------- Net investment income (loss) 597,708 73,921 ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (2,369,527) 12,205,573 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 14,251,805 22,039,542 ------------- ------------- Net gain (loss) on investments 11,882,278 34,245,115 ------------- ------------- Net increase (decrease) in net assets resulting from operations $12,479,986 $34,319,036 ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-46 -------------------------------------------------------------------------------
AMERICAN FUNDS BLUE CHIP AMERICAN FUNDS INCOME AND AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH FUND BOND FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $2,109,363 $6,062,431 $666,563 $4,885,965 ------------- ------------- ------------- -------------- EXPENSES: Administrative charges (161,587) (425,681) (129,319) (1,079,486) Mortality and expense risk charges (1,874,371) (4,059,595) (1,234,078) (10,401,405) ------------- ------------- ------------- -------------- Total expenses (2,035,958) (4,485,276) (1,363,397) (11,480,891) ------------- ------------- ------------- -------------- Net investment income (loss) 73,405 1,577,155 (696,834) (6,594,926) ------------- ------------- ------------- -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,865,360 1,592,620 4,143,577 21,829,110 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 9,888,233 5,929,036 11,161,905 81,683,032 ------------- ------------- ------------- -------------- Net gain (loss) on investments 12,753,593 7,521,656 15,305,482 103,512,142 ------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations $12,826,998 $9,098,811 $14,608,648 $96,917,216 ============= ============= ============= ============== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $8,885,925 $2,282,402 $701,791 -------------- ------------- ------------- EXPENSES: Administrative charges (975,863) (271,909) (123,994) Mortality and expense risk charges (9,353,731) (2,624,559) (1,215,969) -------------- ------------- ------------- Total expenses (10,329,594) (2,896,468) (1,339,963) -------------- ------------- ------------- Net investment income (loss) (1,443,669) (614,066) (638,172) -------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 10,638,574 (227,891) 6,178,377 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 75,672,724 25,213,893 5,278,407 -------------- ------------- ------------- Net gain (loss) on investments 86,311,298 24,986,002 11,456,784 -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $84,867,629 $24,371,936 $10,818,612 ============== ============= =============
SA-47 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS STERLING GLOBAL SMALL CAPITAL STRATEGIC CAPITALIZATION FUND ALLOCATION EQUITY VIF SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $789,834 $36 ------------- ----- EXPENSES: Administrative charges (98,569) -- Mortality and expense risk charges (973,316) (74) ------------- ----- Total expenses (1,071,885) (74) ------------- ----- Net investment income (loss) (282,051) (38) ------------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,111,380 64 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 7,095,781 396 ------------- ----- Net gain (loss) on investments 9,207,161 460 ------------- ----- Net increase (decrease) in net assets resulting from operations $8,925,110 $422 ============= =====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-48 -------------------------------------------------------------------------------
COLUMBIA VARIABLE STERLING STERLING STERLING PORTFOLIO -- CAPITAL SELECT CAPITAL SPECIAL CAPITAL TOTAL SMALL COMPANY EQUITY VIF OPPORTUNITIES VIF RETURN BOND VIF GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $182 $5,882 $28,120 $ -- ------ ---------- --------- ----------- EXPENSES: Administrative charges -- -- -- -- Mortality and expense risk charges (185) (33,643) (15,621) (130,313) ------ ---------- --------- ----------- Total expenses (185) (33,643) (15,621) (130,313) ------ ---------- --------- ----------- Net investment income (loss) (3) (27,761) 12,499 (130,313) ------ ---------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 9 40,861 14,465 (71,607) Net realized gain on distributions -- 91,027 28,212 -- Net unrealized appreciation (depreciation) of investments during the year 187 147,428 (11,696) 788,349 ------ ---------- --------- ----------- Net gain (loss) on investments 196 279,316 30,981 716,742 ------ ---------- --------- ----------- Net increase (decrease) in net assets resulting from operations $193 $251,555 $43,480 $586,429 ====== ========== ========= =========== WELLS FARGO ADVANTAGE VT FIDELITY VIP FIDELITY VIP OMEGA GROWTH CONTRAFUND(R) GROWTH FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ INVESTMENT INCOME: Dividends $ -- $2,956 $255,021 ---------- ---------- ------------ EXPENSES: Administrative charges (1,807) -- -- Mortality and expense risk charges (14,430) (15,617) (397,408) ---------- ---------- ------------ Total expenses (16,237) (15,617) (397,408) ---------- ---------- ------------ Net investment income (loss) (16,237) (12,661) (142,387) ---------- ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 27,668 85,556 1,337,222 Net realized gain on distributions 69,767 -- -- Net unrealized appreciation (depreciation) of investments during the year 28,728 49,045 1,830,194 ---------- ---------- ------------ Net gain (loss) on investments 126,163 134,601 3,167,416 ---------- ---------- ------------ Net increase (decrease) in net assets resulting from operations $109,926 $121,940 $3,025,029 ========== ========== ============
SA-49 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
FIDELITY VIP FIDELITY VIP MID CAP VALUE STRATEGIES PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $62,469 $4,289 ---------- -------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (271,824) (21,881) ---------- -------- Total expenses (271,824) (21,881) ---------- -------- Net investment income (loss) (209,355) (17,592) ---------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 758,090 105,178 Net realized gain on distributions 1,287,640 -- Net unrealized appreciation (depreciation) of investments during the year 116,903 202,138 ---------- -------- Net gain (loss) on investments 2,162,633 307,316 ---------- -------- Net increase (decrease) in net assets resulting from operations $1,953,278 $289,724 ========== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-50 -------------------------------------------------------------------------------
FIDELITY VIP FRANKLIN DYNAMIC CAPITAL FIDELITY VIP RISING FRANKLIN APPRECIATION STRATEGIC INCOME DIVIDENDS INCOME PORTFOLIO PORTFOLIO SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,402 $2,524 $4,545,741 $53,344,270 ------- ------ ----------- ----------- EXPENSES: Administrative charges -- -- (409,718) (1,195,332) Mortality and expense risk charges (4,986) (334) (4,383,203) (12,955,779) ------- ------ ----------- ----------- Total expenses (4,986) (334) (4,792,921) (14,151,111) ------- ------ ----------- ----------- Net investment income (loss) (3,584) 2,190 (247,180) 39,193,159 ------- ------ ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 15,247 62 10,657,103 (2,341,435) Net realized gain on distributions -- 746 -- -- Net unrealized appreciation (depreciation) of investments during the year 31,217 1,991 16,350,457 47,750,039 ------- ------ ----------- ----------- Net gain (loss) on investments 46,464 2,799 27,007,560 45,408,604 ------- ------ ----------- ----------- Net increase (decrease) in net assets resulting from operations $42,880 $4,989 $26,760,380 $84,601,763 ======= ====== =========== =========== FRANKLIN FRANKLIN FRANKLIN LARGE CAP GLOBAL SMALL-MID CAP GROWTH REAL ESTATE GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------------------------------------- INVESTMENT INCOME: Dividends $337,598 $ -- $ -- ---------- -------- ---------- EXPENSES: Administrative charges (63,630) (1,783) (123,533) Mortality and expense risk charges (690,660) (16,061) (1,288,040) ---------- -------- ---------- Total expenses (754,290) (17,844) (1,411,573) ---------- -------- ---------- Net investment income (loss) (416,692) (17,844) (1,411,573) ---------- -------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,668,322 (104,154) 3,297,577 Net realized gain on distributions -- -- 5,650,576 Net unrealized appreciation (depreciation) of investments during the year 3,050,455 386,761 (699,159) ---------- -------- ---------- Net gain (loss) on investments 4,718,777 282,607 8,248,994 ---------- -------- ---------- Net increase (decrease) in net assets resulting from operations $4,302,085 $264,763 $6,837,421 ========== ======== ==========
SA-51 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL CAP STRATEGIC VALUE INCOME SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $117,880 $17,935,922 ------------ ------------- EXPENSES: Administrative charges -- (377,276) Mortality and expense risk charges (279,716) (4,182,684) ------------ ------------- Total expenses (279,716) (4,559,960) ------------ ------------- Net investment income (loss) (161,836) 13,375,962 ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,149,380 3,903,318 Net realized gain on distributions -- 294,265 Net unrealized appreciation (depreciation) of investments during the year 1,318,312 9,396,034 ------------ ------------- Net gain (loss) on investments 2,467,692 13,593,617 ------------ ------------- Net increase (decrease) in net assets resulting from operations $2,305,856 $26,969,579 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-52 -------------------------------------------------------------------------------
TEMPLETON DEVELOPING TEMPLETON TEMPLETON MUTUAL SHARES MARKETS FOREIGN GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $7,518,350 $853,062 $4,039,833 $4,801,438 ------------- ------------ ------------- ------------- EXPENSES: Administrative charges (594,340) (78,844) (217,575) (371,379) Mortality and expense risk charges (5,933,567) (888,881) (2,189,156) (3,657,719) ------------- ------------ ------------- ------------- Total expenses (6,527,907) (967,725) (2,406,731) (4,029,098) ------------- ------------ ------------- ------------- Net investment income (loss) 990,443 (114,663) 1,633,102 772,340 ------------- ------------ ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 6,243,309 459,466 (923,977) (6,114,559) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 37,361,515 5,257,466 19,512,817 45,812,352 ------------- ------------ ------------- ------------- Net gain (loss) on investments 43,604,824 5,716,932 18,588,840 39,697,793 ------------- ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $44,595,267 $5,602,269 $20,221,942 $40,470,133 ============= ============ ============= ============= FRANKLIN FRANKLIN MUTUAL FLEX CAP LARGE CAP GLOBAL DISCOVERY GROWTH VALUE SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------------- INVESTMENT INCOME: Dividends $3,032,260 $ -- $113,796 ------------- ------------ ----------- EXPENSES: Administrative charges (166,492) (31,142) (12,705) Mortality and expense risk charges (1,950,198) (324,149) (116,146) ------------- ------------ ----------- Total expenses (2,116,690) (355,291) (128,851) ------------- ------------ ----------- Net investment income (loss) 915,570 (355,291) (15,055) ------------- ------------ ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 4,083,773 1,148,305 54,767 Net realized gain on distributions 6,115,193 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,964,871 617,235 884,528 ------------- ------------ ----------- Net gain (loss) on investments 12,163,837 1,765,540 939,295 ------------- ------------ ----------- Net increase (decrease) in net assets resulting from operations $13,079,407 $1,410,249 $924,240 ============= ============ ===========
SA-53 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
TEMPLETON HARTFORD GLOBAL BOND BALANCED SECURITIES FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (4) ------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $1,358,888 $439,773 ------------ ------------ EXPENSES: Administrative charges -- (20,470) Mortality and expense risk charges (348,090) (278,110) ------------ ------------ Total expenses (348,090) (298,580) ------------ ------------ Net investment income (loss) 1,010,798 141,193 ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 292,171 (196,157) Net realized gain on distributions 34,949 -- Net unrealized appreciation (depreciation) of investments during the year 1,360,208 1,532,574 ------------ ------------ Net gain (loss) on investments 1,687,328 1,336,417 ------------ ------------ Net increase (decrease) in net assets resulting from operations $2,698,126 $1,477,610 ============ ============
(4) Formerly Hartford Advisers HLS Fund. Change effective June 29, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-54 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD TOTAL CAPITAL DIVIDEND HARTFORD RETURN BOND APPRECIATION AND GROWTH GLOBAL RESEARCH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $6,863,162 $2,007,043 $2,260,740 $3,109 ------------- ------------- ------------- --------- EXPENSES: Administrative charges (67,971) (39,447) (32,212) -- Mortality and expense risk charges (2,700,518) (2,279,291) (1,657,619) (7,092) ------------- ------------- ------------- --------- Total expenses (2,768,489) (2,318,738) (1,689,831) (7,092) ------------- ------------- ------------- --------- Net investment income (loss) 4,094,673 (311,695) 570,909 (3,983) ------------- ------------- ------------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,598,757 5,011,980 4,796,178 1,053 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 2,833,107 17,426,422 6,546,097 48,459 ------------- ------------- ------------- --------- Net gain (loss) on investments 5,431,864 22,438,402 11,342,275 49,512 ------------- ------------- ------------- --------- Net increase (decrease) in net assets resulting from operations $9,526,537 $22,126,707 $11,913,184 $45,529 ============= ============= ============= ========= HARTFORD HARTFORD HARTFORD DISCIPLINED HEALTHCARE GLOBAL GROWTH EQUITY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $223 $2,298 $193,130 --------- ---------- ------------ EXPENSES: Administrative charges (340) (594) (443) Mortality and expense risk charges (2,854) (8,932) (194,614) --------- ---------- ------------ Total expenses (3,194) (9,526) (195,057) --------- ---------- ------------ Net investment income (loss) (2,971) (7,228) (1,927) --------- ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 25,800 (21,650) 584,332 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 18,773 146,342 1,290,242 --------- ---------- ------------ Net gain (loss) on investments 44,573 124,692 1,874,574 --------- ---------- ------------ Net increase (decrease) in net assets resulting from operations $41,602 $117,464 $1,872,647 ========= ========== ============
SA-55 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- -------- ---------- EXPENSES: Administrative charges (59) (31) Mortality and expense risk charges (16,094) (480,149) -------- ---------- Total expenses (16,153) (480,180) -------- ---------- Net investment income (loss) (16,153) (480,180) -------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 45,966 1,794,293 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 146,296 5,609,690 -------- ---------- Net gain (loss) on investments 192,262 7,403,983 -------- ---------- Net increase (decrease) in net assets resulting from operations $176,109 $6,923,803 ======== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-56 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL SMALL/MID CAP HIGH YIELD INDEX OPPORTUNITIES EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $855,247 $103,897 $155,882 $12,847 ---------- -------- ---------- -------- EXPENSES: Administrative charges (324) (476) (5,802) -- Mortality and expense risk charges (147,362) (34,659) (134,257) (39,851) ---------- -------- ---------- -------- Total expenses (147,686) (35,135) (140,059) (39,851) ---------- -------- ---------- -------- Net investment income (loss) 707,561 68,762 15,823 (27,004) ---------- -------- ---------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 143,267 6,879 127,105 95,330 Net realized gain on distributions -- -- -- 307,036 Net unrealized appreciation (depreciation) of investments during the year 268,000 181,766 1,280,822 (86,910) ---------- -------- ---------- -------- Net gain (loss) on investments 411,267 188,645 1,407,927 315,456 ---------- -------- ---------- -------- Net increase (decrease) in net assets resulting from operations $1,118,828 $257,407 $1,423,750 $288,452 ========== ======== ========== ======== HARTFORD HARTFORD HARTFORD MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------------------------------------- INVESTMENT INCOME: Dividends $6,594 $2,953 $ -- -------- --------- ----------- EXPENSES: Administrative charges (1,847) -- (319,053) Mortality and expense risk charges (15,565) (6,062) (3,475,090) -------- --------- ----------- Total expenses (17,412) (6,062) (3,794,143) -------- --------- ----------- Net investment income (loss) (10,818) (3,109) (3,794,143) -------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 34,211 12,403 2 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 171,789 51,664 -- -------- --------- ----------- Net gain (loss) on investments 206,000 64,067 2 -------- --------- ----------- Net increase (decrease) in net assets resulting from operations $195,182 $60,958 $(3,794,141) ======== ========= ===========
SA-57 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- ---------- ---------- EXPENSES: Administrative charges (4,396) (69) Mortality and expense risk charges (80,952) (30,082) ---------- ---------- Total expenses (85,348) (30,151) ---------- ---------- Net investment income (loss) (85,348) (30,151) ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 266,974 200,484 Net realized gain on distributions 284 -- Net unrealized appreciation (depreciation) of investments during the year 376,714 104,851 ---------- ---------- Net gain (loss) on investments 643,972 305,335 ---------- ---------- Net increase (decrease) in net assets resulting from operations $558,624 $275,184 ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-58 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD AMERICAN FUNDS STOCK SECURITIES VALUE ASSET ALLOCATION HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $163,875 $228,455 $33,709 $216,421 ------------ ----------- ---------- ------------ EXPENSES: Administrative charges (14,420) (623) -- -- Mortality and expense risk charges (167,792) (139,274) (21,368) (234,124) ------------ ----------- ---------- ------------ Total expenses (182,212) (139,897) (21,368) (234,124) ------------ ----------- ---------- ------------ Net investment income (loss) (18,337) 88,558 12,341 (17,703) ------------ ----------- ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (100,798) 66,438 49,538 700,039 Net realized gain on distributions -- -- -- 29,622 Net unrealized appreciation (depreciation) of investments during the year 1,248,553 12,351 144,763 1,107,901 ------------ ----------- ---------- ------------ Net gain (loss) on investments 1,147,755 78,789 194,301 1,837,562 ------------ ----------- ---------- ------------ Net increase (decrease) in net assets resulting from operations $1,129,418 $167,347 $206,642 $1,819,859 ============ =========== ========== ============ AMERICAN FUNDS BLUE CHIP INCOME AND AMERICAN FUNDS AMERICAN FUNDS GROWTH BOND GLOBAL BOND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $73,352 $874,860 $118,516 ----------- ------------ ---------- EXPENSES: Administrative charges -- -- -- Mortality and expense risk charges (103,755) (514,869) (73,471) ----------- ------------ ---------- Total expenses (103,755) (514,869) (73,471) ----------- ------------ ---------- Net investment income (loss) (30,403) 359,991 45,045 ----------- ------------ ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 264,458 572,224 126,406 Net realized gain on distributions 41,879 718,141 89,662 Net unrealized appreciation (depreciation) of investments during the year 390,761 (521,158) (73,589) ----------- ------------ ---------- Net gain (loss) on investments 697,098 769,207 142,479 ----------- ------------ ---------- Net increase (decrease) in net assets resulting from operations $666,695 $1,129,198 $187,524 =========== ============ ==========
SA-59 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL GROWTH AMERICAN FUNDS AND INCOME GLOBAL GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $315,084 $37,023 ------------ ---------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (202,785) (60,308) ------------ ---------- Total expenses (202,785) (60,308) ------------ ---------- Net investment income (loss) 112,299 (23,285) ------------ ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 477,227 192,633 Net realized gain on distributions 511 38,320 Net unrealized appreciation (depreciation) of investments during the year 1,184,845 474,146 ------------ ---------- Net gain (loss) on investments 1,662,583 705,099 ------------ ---------- Net increase (decrease) in net assets resulting from operations $1,774,882 $681,814 ============ ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-60 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS CAPITALIZATION GROWTH GROWTH-INCOME INTERNATIONAL HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $103,736 $189,667 $375,108 $597,985 ------------ ------------ ------------ ------------ EXPENSES: Administrative charges -- -- -- -- Mortality and expense risk charges (145,374) (887,973) (483,792) (570,387) ------------ ------------ ------------ ------------ Total expenses (145,374) (887,973) (483,792) (570,387) ------------ ------------ ------------ ------------ Net investment income (loss) (41,638) (698,306) (108,684) 27,598 ------------ ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 216,464 2,734,056 1,045,143 487,103 Net realized gain on distributions 793,413 165,415 -- -- Net unrealized appreciation (depreciation) of investments during the year 337,635 5,977,775 3,341,091 4,980,248 ------------ ------------ ------------ ------------ Net gain (loss) on investments 1,347,512 8,877,246 4,386,234 5,467,351 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $1,305,874 $8,178,940 $4,277,550 $5,494,949 ============ ============ ============ ============ HARTFORD AMERICAN FUNDS PORTFOLIO HUNTINGTON VA NEW WORLD DIVERSIFIER INCOME HLS FUND HLS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- INVESTMENT INCOME: Dividends $121,035 $153,171 $156,864 ------------ ------------- ---------- EXPENSES: Administrative charges -- -- (3,620) Mortality and expense risk charges (137,732) (229,841) (42,520) ------------ ------------- ---------- Total expenses (137,732) (229,841) (46,140) ------------ ------------- ---------- Net investment income (loss) (16,697) (76,670) 110,724 ------------ ------------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 260,153 (40,247) (3,218) Net realized gain on distributions 405,198 -- -- Net unrealized appreciation (depreciation) of investments during the year 457,982 (1,529,472) 165,467 ------------ ------------- ---------- Net gain (loss) on investments 1,123,333 (1,569,719) 162,249 ------------ ------------- ---------- Net increase (decrease) in net assets resulting from operations $1,106,636 $(1,646,389) $272,973 ============ ============= ==========
SA-61 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HUNTINGTON VA DIVIDEND HUNTINGTON VA CAPTURE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $258,397 $8,522 ----------- ---------- EXPENSES: Administrative charges (12,007) (3,537) Mortality and expense risk charges (103,204) (33,598) ----------- ---------- Total expenses (115,211) (37,135) ----------- ---------- Net investment income (loss) 143,186 (28,613) ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (191,373) (12,466) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 662,224 246,996 ----------- ---------- Net gain (loss) on investments 470,851 234,530 ----------- ---------- Net increase (decrease) in net assets resulting from operations $614,037 $205,917 =========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-62 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA MID CORP ROTATING INTERNATIONAL HUNTINGTON VA AMERICA FUND MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT (5) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $18,001 $21,284 $62,049 $16,396 ------------ --------- ---------- ---------- EXPENSES: Administrative charges (12,139) (2,699) -- (1,160) Mortality and expense risk charges (108,472) (22,547) (68,568) (23,433) ------------ --------- ---------- ---------- Total expenses (120,611) (25,246) (68,568) (24,593) ------------ --------- ---------- ---------- Net investment income (loss) (102,610) (3,962) (6,519) (8,197) ------------ --------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (367,267) (4,628) (88,010) (11,633) Net realized gain on distributions 367,377 -- -- -- Net unrealized appreciation (depreciation) of investments during the year 1,170,496 78,585 642,671 173,221 ------------ --------- ---------- ---------- Net gain (loss) on investments 1,170,606 73,957 554,661 161,588 ------------ --------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $1,067,996 $69,995 $548,142 $153,391 ============ ========= ========== ========== HUNTINGTON VA LORD ABBETT MORTGAGE HUNTINGTON VA FUNDAMENTAL SECURITIES FUND SITUS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $78,083 $ -- $9,651 --------- ------------ ---------- EXPENSES: Administrative charges -- (3,800) -- Mortality and expense risk charges (46,198) (90,128) (11,291) --------- ------------ ---------- Total expenses (46,198) (93,928) (11,291) --------- ------------ ---------- Net investment income (loss) 31,885 (93,928) (1,640) --------- ------------ ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 39,059 225,436 7,955 Net realized gain on distributions -- -- 27,348 Net unrealized appreciation (depreciation) of investments during the year (11,724) 925,870 66,356 --------- ------------ ---------- Net gain (loss) on investments 27,335 1,151,306 101,659 --------- ------------ ---------- Net increase (decrease) in net assets resulting from operations $59,220 $1,057,378 $100,019 ========= ============ ==========
(5) Effective April 27, 2012 Huntington VA New Economy Fund merged with Huntington VA Mid Corp America. SA-63 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
LORD ABBETT CALIBRATED LORD ABBETT DIVIDEND BOND GROWTH FUND DEBENTURE FUND SUB-ACCOUNT (6) SUB-ACCOUNT ---------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $79,321 $779,653 -------- ---------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (40,406) (229,642) -------- ---------- Total expenses (40,406) (229,642) -------- ---------- Net investment income (loss) 38,915 550,011 -------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 47,254 420,808 Net realized gain on distributions -- 175,992 Net unrealized appreciation (depreciation) of investments during the year 169,864 305,970 -------- ---------- Net gain (loss) on investments 217,118 902,770 -------- ---------- Net increase (decrease) in net assets resulting from operations $256,033 $1,452,781 ======== ==========
(6) Formerly Lord Abbett Capital Structure Fund. Change effective September 27, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-64 -------------------------------------------------------------------------------
LORD ABBETT GROWTH AND MFS(R) CORE MFS(R) GROWTH MFS(R) GLOBAL INCOME FUND EQUITY SERIES SERIES EQUITY SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $21,707 $46,225 $ -- $75,107 -------- -------- ---------- ---------- EXPENSES: Administrative charges -- (9,560) (31,398) (10,968) Mortality and expense risk charges (40,907) (100,956) (325,744) (111,585) -------- -------- ---------- ---------- Total expenses (40,907) (110,516) (357,142) (122,553) -------- -------- ---------- ---------- Net investment income (loss) (19,200) (64,291) (357,142) (47,446) -------- -------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 152,570 192,282 1,812,981 336,041 Net realized gain on distributions -- -- -- 154,132 Net unrealized appreciation (depreciation) of investments during the year 128,190 687,220 1,378,434 850,715 -------- -------- ---------- ---------- Net gain (loss) on investments 280,760 879,502 3,191,415 1,340,888 -------- -------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $261,560 $815,211 $2,834,273 $1,293,442 ======== ======== ========== ========== MFS(R) INVESTORS MFS(R) HIGH GROWTH MFS(R) INVESTORS INCOME SERIES STOCK SERIES TRUST SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $5,585,779 $50,825 $892,823 ---------- ---------- ----------- EXPENSES: Administrative charges (121,248) (18,694) (170,515) Mortality and expense risk charges (1,194,733) (184,593) (1,643,109) ---------- ---------- ----------- Total expenses (1,315,981) (203,287) (1,813,624) ---------- ---------- ----------- Net investment income (loss) 4,269,798 (152,462) (920,801) ---------- ---------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,131,906) 677,821 5,886,937 Net realized gain on distributions -- 529,931 -- Net unrealized appreciation (depreciation) of investments during the year 5,494,179 482,686 11,594,270 ---------- ---------- ----------- Net gain (loss) on investments 4,362,273 1,690,438 17,481,207 ---------- ---------- ----------- Net increase (decrease) in net assets resulting from operations $8,632,071 $1,537,976 $16,560,406 ========== ========== ===========
SA-65 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
MFS(R) MID CAP MFS(R) NEW GROWTH SERIES DISCOVERY SERIES SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- ------------ ------------- EXPENSES: Administrative charges (34,257) (112,590) Mortality and expense risk charges (346,258) (1,095,798) ------------ ------------- Total expenses (380,515) (1,208,388) ------------ ------------- Net investment income (loss) (380,515) (1,208,388) ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (169,933) 2,100,445 Net realized gain on distributions -- 6,116,617 Net unrealized appreciation (depreciation) of investments during the year 3,320,387 4,903,589 ------------ ------------- Net gain (loss) on investments 3,150,454 13,120,651 ------------ ------------- Net increase (decrease) in net assets resulting from operations $2,769,939 $11,912,263 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-66 -------------------------------------------------------------------------------
MFS(R) TOTAL MFS(R) VALUE MFS(R) RESEARCH MFS(R) RESEARCH RETURN SERIES SERIES BOND SERIES INTERNATIONAL SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $9,006,821 $1,364,712 $2,350,855 $490,385 ------------- ------------- ------------- ------------- EXPENSES: Administrative charges (539,244) (94,530) (121,813) (34,200) Mortality and expense risk charges (5,311,934) (1,401,926) (1,367,278) (317,712) ------------- ------------- ------------- ------------- Total expenses (5,851,178) (1,496,456) (1,489,091) (351,912) ------------- ------------- ------------- ------------- Net investment income (loss) 3,155,643 (131,744) 861,764 138,473 ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (48,109) 2,071,587 2,883,500 (1,104,710) Net realized gain on distributions -- 656,284 567,286 -- Net unrealized appreciation (depreciation) of investments during the year 27,034,404 9,157,442 313,936 3,802,267 ------------- ------------- ------------- ------------- Net gain (loss) on investments 26,986,295 11,885,313 3,764,722 2,697,557 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $30,141,938 $11,753,569 $4,626,486 $2,836,030 ============= ============= ============= ============= BLACKROCK BLACKROCK MFS(R) RESEARCH GLOBAL GLOBAL SERIES ALLOCATION V.I. FUND OPPORTUNITIES V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $37,953 $1,415 $223 ---------- ------- --------- EXPENSES: Administrative charges (8,261) -- (26) Mortality and expense risk charges (79,355) (473) (410) ---------- ------- --------- Total expenses (87,616) (473) (436) ---------- ------- --------- Net investment income (loss) (49,663) 942 (213) ---------- ------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 407,501 247 10,025 Net realized gain on distributions -- 318 -- Net unrealized appreciation (depreciation) of investments during the year 305,285 2,729 (7,529) ---------- ------- --------- Net gain (loss) on investments 712,786 3,294 2,496 ---------- ------- --------- Net increase (decrease) in net assets resulting from operations $663,123 $4,236 $2,283 ========== ======= =========
SA-67 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
BLACKROCK BLACKROCK LARGE CAP EQUITY GROWTH V.I. FUND DIVIDEND V.I. FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $5,851 $16,275 --------- --------- EXPENSES: Administrative charges (667) -- Mortality and expense risk charges (8,119) (4,806) --------- --------- Total expenses (8,786) (4,806) --------- --------- Net investment income (loss) (2,935) 11,469 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 27,627 2,938 Net realized gain on distributions 30,285 845 Net unrealized appreciation (depreciation) of investments during the year (1,052) 31,879 --------- --------- Net gain (loss) on investments 56,860 35,662 --------- --------- Net increase (decrease) in net assets resulting from operations $53,925 $47,131 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-68 -------------------------------------------------------------------------------
INVESCO MORGAN STANLEY UIF MID CAP VAN KAMPEN V.I. MORGAN STANLEY -- MULTI CAP GROWTH AMERICAN FOCUS GROWTH GROWTH PORTFOLIO VALUE FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT (7) SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $4,726 $ -- $ -- ----------- ---------- ------ --------- EXPENSES: Administrative charges -- -- (7) (342) Mortality and expense risk charges (39,060) (12,296) (65) (2,972) ----------- ---------- ------ --------- Total expenses (39,060) (12,296) (72) (3,314) ----------- ---------- ------ --------- Net investment income (loss) (39,060) (7,570) (72) (3,314) ----------- ---------- ------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 181,806 74,580 (6) 3,726 Net realized gain on distributions 284,136 -- 162 11,121 Net unrealized appreciation (depreciation) of investments during the year (249,050) 51,384 (334) 3,659 ----------- ---------- ------ --------- Net gain (loss) on investments 216,892 125,964 (178) 18,506 ----------- ---------- ------ --------- Net increase (decrease) in net assets resulting from operations $177,832 $118,394 $(250) $15,192 =========== ========== ====== ========= MORGAN STANLEY -- MID CAP MORGAN STANLEY -- WILMINGTON MANAGED GROWTH FLEXIBLE INCOME ALLOCATION FUND -- PORTFOLIO PORTFOLIO MODERATE GROWTH II SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (8)(9) ----------------------------- --------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $5,032 $130 --------- -------- ------ EXPENSES: Administrative charges (321) (161) -- Mortality and expense risk charges (2,594) (1,190) (152) --------- -------- ------ Total expenses (2,915) (1,351) (152) --------- -------- ------ Net investment income (loss) (2,915) 3,681 (22) --------- -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,480) (73) 440 Net realized gain on distributions 11,795 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,565 4,672 (270) --------- -------- ------ Net gain (loss) on investments 11,880 4,599 170 --------- -------- ------ Net increase (decrease) in net assets resulting from operations $8,965 $8,280 $148 ========= ======== ======
(7) Formerly Invesco Van Kampen V.I. Mid Cap Value Fund. Change effective July 15, 2012. (8) Formerly MTB Managed Allocation Fund -- Moderate Growth II. Change effective March 9, 2012. (9) Effective September 28, 2012 Wilmington Managed Allocation Fund -- Moderate Growth II was liquidated. SA-69 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
COLUMBIA VARIABLE BLACKROCK PORTFOLIO -- CAPITAL MARSICO INTERNATIONAL APPRECIATION V.I. FUND OPPORTUNITIES FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $6,032 $86,740 --------- ------------ EXPENSES: Administrative charges -- (15,941) Mortality and expense risk charges (4,536) (179,651) --------- ------------ Total expenses (4,536) (195,592) --------- ------------ Net investment income (loss) 1,496 (108,852) --------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 3,482 415,761 Net realized gain on distributions 11,916 -- Net unrealized appreciation (depreciation) of investments during the year 17,964 1,008,704 --------- ------------ Net gain (loss) on investments 33,362 1,424,465 --------- ------------ Net increase (decrease) in net assets resulting from operations $34,858 $1,315,613 ========= ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-70 -------------------------------------------------------------------------------
COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- MARSICO FOCUSED ASSET ALLOCATION MARSICO HIGH INCOME FUND EQUITIES FUND FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $719,763 $31,735 $89,574 $50,121 ------------ ----------- ----------- ----------- EXPENSES: Administrative charges (19,362) (15,745) -- (12,740) Mortality and expense risk charges (201,110) (160,819) (81,679) (144,337) ------------ ----------- ----------- ----------- Total expenses (220,472) (176,564) (81,679) (157,077) ------------ ----------- ----------- ----------- Net investment income (loss) 499,291 (144,829) 7,895 (106,956) ------------ ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 237,235 436,633 (258,776) 837,927 Net realized gain on distributions -- 854,795 -- -- Net unrealized appreciation (depreciation) of investments during the year 554,081 (317,875) 679,226 16,344 ------------ ----------- ----------- ----------- Net gain (loss) on investments 791,316 973,553 420,450 854,271 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $1,290,607 $828,724 $428,345 $747,315 ============ =========== =========== =========== COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- MARSICO 21ST MID CAP DIVIDEND CENTURY FUND GROWTH FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (10) -------------------------- ---------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $ -- ---------- ------------ ------------ EXPENSES: Administrative charges (3,657) (17,577) -- Mortality and expense risk charges (39,465) (204,176) (216,825) ---------- ------------ ------------ Total expenses (43,122) (221,753) (216,825) ---------- ------------ ------------ Net investment income (loss) (43,122) (221,753) (216,825) ---------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 209,171 527,373 (98,113) Net realized gain on distributions -- 194,605 -- Net unrealized appreciation (depreciation) of investments during the year 34,292 480,344 1,473,207 ---------- ------------ ------------ Net gain (loss) on investments 243,463 1,202,322 1,375,094 ---------- ------------ ------------ Net increase (decrease) in net assets resulting from operations $200,341 $980,569 $1,158,269 ========== ============ ============
(10) Formerly Columbia Variable Portfolio -- Diversified Equity Income Fund. Change effective June 29, 2012. SA-71 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
OPPENHEIMER CAPITAL OPPENHEIMER APPRECIATION GLOBAL SECURITIES FUND/VA FUND/VA SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,944 $134,228 ------- ---------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (6,946) (112,229) ------- ---------- Total expenses (6,946) (112,229) ------- ---------- Net investment income (loss) (5,002) 21,999 ------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 20,450 365,467 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 36,370 791,922 ------- ---------- Net gain (loss) on investments 56,820 1,157,389 ------- ---------- Net increase (decrease) in net assets resulting from operations $51,818 $1,179,388 ======= ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-72 -------------------------------------------------------------------------------
OPPENHEIMER OPPENHEIMER MAIN STREET OPPENHEIMER PUTNAM VT MAIN STREET SMALL- & MID-CAP VALUE DIVERSIFIED FUND(R)/VA FUND/VA FUND/VA INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $7,111 $19,498 $2,243 $1,193,282 -------- -------- ------- ---------- EXPENSES: Administrative charges -- -- -- -- Mortality and expense risk charges (17,420) (96,983) (2,835) (367,938) -------- -------- ------- ---------- Total expenses (17,420) (96,983) (2,835) (367,938) -------- -------- ------- ---------- Net investment income (loss) (10,309) (77,485) (592) 825,344 -------- -------- ------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 44,166 442,826 6,830 54,876 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 113,600 505,886 14,050 1,156,159 -------- -------- ------- ---------- Net gain (loss) on investments 157,766 948,712 20,880 1,211,035 -------- -------- ------- ---------- Net increase (decrease) in net assets resulting from operations $147,457 $871,227 $20,288 $2,036,379 ======== ======== ======= ========== PUTNAM VT PUTNAM VT PUTNAM VT GLOBAL ASSET INTERNATIONAL INTERNATIONAL ALLOCATION FUND VALUE FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------- -------------------------------------------------------- INVESTMENT INCOME: Dividends $5,501 $7,215 $7,252 -------- ------- ------- EXPENSES: Administrative charges -- -- -- Mortality and expense risk charges (33,000) (2,853) (5,893) -------- ------- ------- Total expenses (33,000) (2,853) (5,893) -------- ------- ------- Net investment income (loss) (27,499) 4,362 1,359 -------- ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 9,498 (9,168) (793) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 203,564 37,610 57,469 -------- ------- ------- Net gain (loss) on investments 213,062 28,442 56,676 -------- ------- ------- Net increase (decrease) in net assets resulting from operations $185,563 $32,804 $58,035 ======== ======= =======
SA-73 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
PUTNAM VT PUTNAM VT SMALL CAP INVESTORS FUND VALUE FUND SUB-ACCOUNT (9) SUB-ACCOUNT ------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $14,227 --------- ---------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (121) (54,811) --------- ---------- Total expenses (121) (54,811) --------- ---------- Net investment income (loss) (121) (40,584) --------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 18,374 44,990 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (5,082) 219,017 --------- ---------- Net gain (loss) on investments 13,292 264,007 --------- ---------- Net increase (decrease) in net assets resulting from operations $13,171 $223,423 ========= ==========
(9) Not funded as of December 31, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-74 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST PUTNAM VT CORE BOND U.S. EQUITY INTREPID MID CAP VOYAGER FUND PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $2,757 $4,019,628 $121,406 $73,001 --------- ------------- ------------ ------------ EXPENSES: Administrative charges -- -- -- -- Mortality and expense risk charges (11,181) (1,357,738) (126,437) (143,434) --------- ------------- ------------ ------------ Total expenses (11,181) (1,357,738) (126,437) (143,434) --------- ------------- ------------ ------------ Net investment income (loss) (8,424) 2,661,890 (5,031) (70,433) --------- ------------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 25,542 1,171,465 305,082 (217,514) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 55,246 (651,218) 914,905 1,490,815 --------- ------------- ------------ ------------ Net gain (loss) on investments 80,788 520,247 1,219,987 1,273,301 --------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations $72,364 $3,182,137 $1,214,956 $1,202,868 ========= ============= ============ ============ JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST EQUITY INDEX INTREPID GROWTH MID CAP GROWTH PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- -------------------------------------------------------------------- INVESTMENT INCOME: Dividends $617,740 $26,195 $ -- ------------ ---------- ------------ EXPENSES: Administrative charges -- -- -- Mortality and expense risk charges (511,763) (58,024) (156,385) ------------ ---------- ------------ Total expenses (511,763) (58,024) (156,385) ------------ ---------- ------------ Net investment income (loss) 105,977 (31,829) (156,385) ------------ ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 957,453 111,432 (133,420) Net realized gain on distributions -- -- 119,991 Net unrealized appreciation (depreciation) of investments during the year 3,329,586 424,573 1,523,815 ------------ ---------- ------------ Net gain (loss) on investments 4,287,039 536,005 1,510,386 ------------ ---------- ------------ Net increase (decrease) in net assets resulting from operations $4,393,016 $504,176 $1,354,001 ============ ========== ============
SA-75 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
JPMORGAN INSURANCE TRUST PUTNAM VT MID CAP VALUE EQUITY PORTFOLIO -- 1 INCOME FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $74,916 $492 ------------- --------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (109,111) (245) ------------- --------- Total expenses (109,111) (245) ------------- --------- Net investment income (loss) (34,195) 247 ------------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,865,901) 24,046 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 3,060,260 (5,485) ------------- --------- Net gain (loss) on investments 1,194,359 18,561 ------------- --------- Net increase (decrease) in net assets resulting from operations $1,160,164 $18,808 ============= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-76 -------------------------------------------------------------------------------
PIMCO PIMCO PIMCO GLOBAL JENNISON 20/20 ALL ASSET EQS PATHFINDER MULTI-ASSET FOCUS PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (11) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $7,385 $6,940 $430 $ -- --------- --------- ------ --------- EXPENSES: Administrative charges -- -- -- (203) Mortality and expense risk charges (974) (3,931) (128) (2,062) --------- --------- ------ --------- Total expenses (974) (3,931) (128) (2,265) --------- --------- ------ --------- Net investment income (loss) 6,411 3,009 302 (2,265) --------- --------- ------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 66 1,246 (219) 8,870 Net realized gain on distributions -- -- 88 4,747 Net unrealized appreciation (depreciation) of investments during the year 12,008 23,897 202 2,161 --------- --------- ------ --------- Net gain (loss) on investments 12,074 25,143 71 15,778 --------- --------- ------ --------- Net increase (decrease) in net assets resulting from operations $18,485 $28,152 $373 $13,513 ========= ========= ====== ========= PRUDENTIAL SERIES PRUDENTIAL INTERNATIONAL JENNISON VALUE GROWTH PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $447 $ -- --------- --------- ----- EXPENSES: Administrative charges (305) -- -- Mortality and expense risk charges (3,107) (1,319) (77) --------- --------- ----- Total expenses (3,412) (1,319) (77) --------- --------- ----- Net investment income (loss) (3,412) (872) (77) --------- --------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 10,285 (34) (43) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 20,755 10,336 836 --------- --------- ----- Net gain (loss) on investments 31,040 10,302 793 --------- --------- ----- Net increase (decrease) in net assets resulting from operations $27,628 $9,430 $716 ========= ========= =====
(11) Funded as of February 28, 2012. SA-77 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
LEGG MASON LEGG MASON CLEARBRIDGE CLEARBRIDGE VARIABLE VARIABLE EQUITY FUNDAMENTAL INCOME BUILDER ALL CAP VALUE PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,688 $10,871 --------- ---------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (850) (9,676) --------- ---------- Total expenses (850) (9,676) --------- ---------- Net investment income (loss) 838 1,195 --------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (4,820) (39,616) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 11,242 121,857 --------- ---------- Net gain (loss) on investments 6,422 82,241 --------- ---------- Net increase (decrease) in net assets resulting from operations $7,260 $83,436 ========= ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-78 -------------------------------------------------------------------------------
WESTERN ASSET LEGG MASON INVESCO VARIABLE GLOBAL CLEARBRIDGE VARIABLE VAN KAMPEN V.I. INVESCO HIGH YIELD BOND LARGE CAP VALUE GROWTH AND VAN KAMPEN V.I. PORTFOLIO PORTFOLIO INCOME FUND COMSTOCK FUND SUB-ACCOUNT (12) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $3,910 $5,794 $20,738 $5,201 -------- --------- ---------- --------- EXPENSES: Administrative charges (89) (424) (509) (723) Mortality and expense risk charges (776) (3,547) (22,716) (6,301) -------- --------- ---------- --------- Total expenses (865) (3,971) (23,225) (7,024) -------- --------- ---------- --------- Net investment income (loss) 3,045 1,823 (2,487) (1,823) -------- --------- ---------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,535) 12,856 35,686 (9,737) Net realized gain on distributions -- 241 -- -- Net unrealized appreciation (depreciation) of investments during the year 7,576 23,104 153,023 69,305 -------- --------- ---------- --------- Net gain (loss) on investments 6,041 36,201 188,709 59,568 -------- --------- ---------- --------- Net increase (decrease) in net assets resulting from operations $9,086 $38,024 $186,222 $57,745 ======== ========= ========== ========= INVESCO INVESCO WELLS FARGO VAN KAMPEN V.I. VAN KAMPEN V.I. ADVANTAGE VT AMERICAN MID CAP INDEX ASSET FRANCHISE FUND GROWTH FUND ALLOCATION FUND SUB-ACCOUNT (13)(14) SUB-ACCOUNT (15)(16) SUB-ACCOUNT -------------------------- ----------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $246 ------------ ---------- ------- EXPENSES: Administrative charges (7,242) -- -- Mortality and expense risk charges (495,726) (65,165) (298) ------------ ---------- ------- Total expenses (502,968) (65,165) (298) ------------ ---------- ------- Net investment income (loss) (502,968) (65,165) (52) ------------ ---------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,231,449 344,494 1,119 Net realized gain on distributions -- 892 -- Net unrealized appreciation (depreciation) of investments during the year 1,048,203 56,298 318 ------------ ---------- ------- Net gain (loss) on investments 3,279,652 401,684 1,437 ------------ ---------- ------- Net increase (decrease) in net assets resulting from operations $2,776,684 $336,519 $1,385 ============ ========== =======
(12) Formerly Legg Mason Western Asset Variable Global High Yield Bond Portfolio. Change effective November 1, 2012. (13) Effective April 27, 2012 Invesco V.I. Capital Appreciation Fund merged with Invesco Van Kampen V.I. Capital Growth Fund. (14) Formerly Invesco Van Kampen V.I. Capital Growth Fund. Change effective April 30, 2012. (15) Funded as of April 27, 2012. (16) Effective April 27, 2012 Invesco V.I. Capital Development Fund merged with Invesco Van Kampen V.I. Mid Cap Growth Fund. SA-79 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT TOTAL RETURN INTRINSIC BOND FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------- INVESTMENT INCOME: Dividends $188 $362 ------ ------- EXPENSES: Administrative charges -- -- Mortality and expense risk charges (180) (440) ------ ------- Total expenses (180) (440) ------ ------- Net investment income (loss) 8 (78) ------ ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 10 (193) Net realized gain on distributions 205 -- Net unrealized appreciation (depreciation) of investments during the year 353 4,592 ------ ------- Net gain (loss) on investments 568 4,399 ------ ------- Net increase (decrease) in net assets resulting from operations $576 $4,321 ====== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-80 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT WELLS FARGO INTERNATIONAL SMALL CAP ADVANTAGE VT EQUITY FUND GROWTH FUND DISCOVERY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $25,192 $ -- $ -- ---------- ---------- ----- EXPENSES: Administrative charges -- -- -- Mortality and expense risk charges (26,225) (29,776) (70) ---------- ---------- ----- Total expenses (26,225) (29,776) (70) ---------- ---------- ----- Net investment income (loss) (1,033) (29,776) (70) ---------- ---------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (29,907) 74,935 169 Net realized gain on distributions 102,201 80,279 -- Net unrealized appreciation (depreciation) of investments during the year 83,053 (16,369) 545 ---------- ---------- ----- Net gain (loss) on investments 155,347 138,845 714 ---------- ---------- ----- Net increase (decrease) in net assets resulting from operations $154,314 $109,069 $644 ========== ========== ===== WELLS FARGO ADVANTAGE VT WELLS FARGO SMALL CAP ADVANTAGE VT VALUE FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------- INVESTMENT INCOME: Dividends $150,733 $54,773 ------------ ------------ EXPENSES: Administrative charges -- -- Mortality and expense risk charges (231,145) (147,904) ------------ ------------ Total expenses (231,145) (147,904) ------------ ------------ Net investment income (loss) (80,412) (93,131) ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 656,492 237,951 Net realized gain on distributions -- 3,365 Net unrealized appreciation (depreciation) of investments during the year 992,515 1,091,432 ------------ ------------ Net gain (loss) on investments 1,649,007 1,332,748 ------------ ------------ Net increase (decrease) in net assets resulting from operations $1,568,595 $1,239,617 ============ ============
SA-81 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN CENTURY VP AMERICAN CENTURY VP VALUE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (1) ----------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $18,975 $(29) Net realized gain (loss) on security transactions 8,245 3 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 119,346 (206) ------------ --------- Net increase (decrease) in net assets resulting from operations 146,566 (232) ------------ --------- UNIT TRANSACTIONS: Purchases 1,791,683 15,000 Net transfers 112,266 18,836 Surrenders for benefit payments and fees (29,902) -- Other transactions (48) -- Death benefits (13,400) -- Net annuity transactions -- -- ------------ --------- Net increase (decrease) in net assets resulting from unit transactions 1,860,599 33,836 ------------ --------- Net increase (decrease) in net assets 2,007,165 33,604 NET ASSETS: Beginning of year 304,415 -- ------------ --------- End of year $2,311,580 $33,604 ============ =========
(1) Funded as of April 9, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-82 -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN VPS BALANCED WEALTH VPS INTERNATIONAL VPS SMALL/MID-CAP ALLIANCEBERNSTEIN STRATEGY PORTFOLIO VALUE PORTFOLIO VALUE PORTFOLIO VPS VALUE PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $26,351 $(13,873) $(22,212) $186 Net realized gain (loss) on security transactions 239,452 (116,449) 46,929 10,917 Net realized gain on distributions -- -- 55,106 -- Net unrealized appreciation (depreciation) of investments during the year 310,242 1,040,038 172,264 12,770 ------------- ------------ ------------ ---------- Net increase (decrease) in net assets resulting from operations 576,045 909,716 252,087 23,873 ------------- ------------ ------------ ---------- UNIT TRANSACTIONS: Purchases 28,096 31,375 68,075 -- Net transfers 521,254 447,044 55,459 (81,652) Surrenders for benefit payments and fees (1,204,963) (587,552) (55,084) (5,957) Other transactions (1,140) 44 -- 213 Death benefits (275,584) (75,905) (54,012) -- Net annuity transactions -- -- -- -- ------------- ------------ ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions (932,337) (184,994) 14,438 (87,396) ------------- ------------ ------------ ---------- Net increase (decrease) in net assets (356,292) 724,722 266,525 (63,523) NET ASSETS: Beginning of year 4,968,538 7,122,356 1,541,969 204,373 ------------- ------------ ------------ ---------- End of year $4,612,246 $7,847,078 $1,808,494 $140,850 ============= ============ ============ ========== INVESCO ALLIANCEBERNSTEIN VAN KAMPEN V.I. INVESCO V.I. VPS INTERNATIONAL VALUE CORE GROWTH PORTFOLIO OPPORTUNITIES FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT (2) SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(3,817) $(120,305) $(567,906) Net realized gain (loss) on security transactions (16,251) (3,075,871) 2,610,784 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 163,292 7,242,980 4,976,542 ------------ ------------- -------------- Net increase (decrease) in net assets resulting from operations 143,224 4,046,804 7,019,420 ------------ ------------- -------------- UNIT TRANSACTIONS: Purchases 31,333 177,436 446,352 Net transfers (6,664) (645,199) (1,809,623) Surrenders for benefit payments and fees (126,134) (4,892,255) (12,971,833) Other transactions -- 1,107 (765) Death benefits (5,443) (223,711) (854,173) Net annuity transactions -- 47,321 (4,431) ------------ ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (106,908) (5,535,301) (15,194,473) ------------ ------------- -------------- Net increase (decrease) in net assets 36,316 (1,488,497) (8,175,053) NET ASSETS: Beginning of year 1,108,656 28,254,417 64,528,774 ------------ ------------- -------------- End of year $1,144,972 $26,765,920 $56,353,721 ============ ============= ==============
(2) Formerly Invesco V.I. Basic Value Fund. Change effective April 30, 2012. SA-83 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. GOVERNMENT HIGH SECURITIES FUND YIELD FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $3,046,363 $41,737 Net realized gain (loss) on security transactions 2,250,658 (6,718) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (3,373,645) 134,856 -------------- ------------ Net increase (decrease) in net assets resulting from operations 1,923,376 169,875 -------------- ------------ UNIT TRANSACTIONS: Purchases 1,359,288 -- Net transfers 22,671,229 291,229 Surrenders for benefit payments and fees (46,970,289) (246,354) Other transactions 1,384 (3) Death benefits (5,009,483) -- Net annuity transactions 115,007 -- -------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (27,832,864) 44,872 -------------- ------------ Net increase (decrease) in net assets (25,909,488) 214,747 NET ASSETS: Beginning of year 267,497,204 1,169,943 -------------- ------------ End of year $241,587,716 $1,384,690 ============== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-84 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. BALANCED RISK INTERNATIONAL MID CAP CORE SMALL CAP ALLOCATION GROWTH FUND EQUITY FUND EQUITY FUND FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(159,816) $(1,064,913) $(725,472) $(32,812) Net realized gain (loss) on security transactions 1,894,411 933,787 2,669,084 79,926 Net realized gain on distributions -- 469,223 -- 16,359 Net unrealized appreciation (depreciation) of investments during the year 6,380,521 4,763,384 2,599,023 268,671 ------------- -------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 8,115,116 5,101,481 4,542,635 332,144 ------------- -------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 1,406,711 329,950 301,543 262,280 Net transfers (1,102,380) (1,357,245) (2,837,198) 5,056,064 Surrenders for benefit payments and fees (8,707,851) (10,957,423) (6,672,173) (448,228) Other transactions (300) 2,021 1,899 131 Death benefits (983,591) (579,261) (582,793) (106) Net annuity transactions 134 27,077 231 -- ------------- -------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (9,387,277) (12,534,881) (9,788,491) 4,870,141 ------------- -------------- ------------- ------------ Net increase (decrease) in net assets (1,272,161) (7,433,400) (5,245,856) 5,202,285 NET ASSETS: Beginning of year 63,954,402 61,453,126 43,377,847 2,816,976 ------------- -------------- ------------- ------------ End of year $62,682,241 $54,019,726 $38,131,991 $8,019,261 ============= ============== ============= ============ INVESCO V.I. AMERICAN CENTURY VP AMERICAN FUNDS DIVERSIFIED MID CAP GLOBAL DIVIDEND FUND VALUE FUND BOND FUND SUB-ACCOUNT (3) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $8 $522 $201,182 Net realized gain (loss) on security transactions (21) 36 2,382,750 Net realized gain on distributions -- 1,545 706,736 Net unrealized appreciation (depreciation) of investments during the year 894 2,712 155,059 ------- --------- -------------- Net increase (decrease) in net assets resulting from operations 881 4,815 3,445,727 ------- --------- -------------- UNIT TRANSACTIONS: Purchases -- 32,879 482,613 Net transfers -- 8,473 (1,039,270) Surrenders for benefit payments and fees (339) (467) (14,085,160) Other transactions -- (1) (312) Death benefits -- -- (1,639,016) Net annuity transactions -- -- (3,594) ------- --------- -------------- Net increase (decrease) in net assets resulting from unit transactions (339) 40,884 (16,284,739) ------- --------- -------------- Net increase (decrease) in net assets 542 45,699 (12,839,012) NET ASSETS: Beginning of year 5,679 19,524 85,944,799 ------- --------- -------------- End of year $6,221 $65,223 $73,105,787 ======= ========= ==============
(3) Formerly Invesco V.I. Dividend Growth Fund. Change effective April 30, 2012. SA-85 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH AND ASSET INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $597,708 $73,921 Net realized gain (loss) on security transactions (2,369,527) 12,205,573 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 14,251,805 22,039,542 -------------- -------------- Net increase (decrease) in net assets resulting from operations 12,479,986 34,319,036 -------------- -------------- UNIT TRANSACTIONS: Purchases 380,636 910,140 Net transfers (5,650,733) (2,642,524) Surrenders for benefit payments and fees (12,735,514) (45,018,792) Other transactions 3,590 (1,728) Death benefits (1,480,008) (5,274,416) Net annuity transactions (7,149) (41,228) -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (19,489,178) (52,068,548) -------------- -------------- Net increase (decrease) in net assets (7,009,192) (17,749,512) NET ASSETS: Beginning of year 89,491,258 260,059,129 -------------- -------------- End of year $82,482,066 $242,309,617 ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-86 -------------------------------------------------------------------------------
AMERICAN FUNDS BLUE CHIP AMERICAN FUNDS INCOME AND AMERICAN FUNDS GLOBAL AMERICAN FUNDS GROWTH FUND BOND FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $73,405 $1,577,155 $(696,834) $(6,594,926) Net realized gain (loss) on security transactions 2,865,360 1,592,620 4,143,577 21,829,110 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 9,888,233 5,929,036 11,161,905 81,683,032 -------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 12,826,998 9,098,811 14,608,648 96,917,216 -------------- -------------- -------------- --------------- UNIT TRANSACTIONS: Purchases 513,111 1,600,953 548,539 3,101,583 Net transfers (1,856,970) 14,455,998 (2,482,535) (32,173,281) Surrenders for benefit payments and fees (18,823,864) (51,827,748) (10,772,967) (104,304,919) Other transactions 1,726 324 (1,012) (978) Death benefits (1,838,477) (4,754,552) (1,447,966) (9,976,185) Net annuity transactions 28,679 57,013 10,756 (186) -------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from unit transactions (21,975,795) (40,468,012) (14,145,185) (143,353,966) -------------- -------------- -------------- --------------- Net increase (decrease) in net assets (9,148,797) (31,369,201) 463,463 (46,436,750) NET ASSETS: Beginning of year 113,273,595 271,699,885 76,861,299 655,087,898 -------------- -------------- -------------- --------------- End of year $104,124,798 $240,330,684 $77,324,762 $608,651,148 ============== ============== ============== =============== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,443,669) $(614,066) $(638,172) Net realized gain (loss) on security transactions 10,638,574 (227,891) 6,178,377 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 75,672,724 25,213,893 5,278,407 --------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 84,867,629 24,371,936 10,818,612 --------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 2,598,546 607,806 404,117 Net transfers (31,208,793) (7,395,664) (3,340,758) Surrenders for benefit payments and fees (94,675,024) (25,414,435) (12,460,928) Other transactions 5,061 1,220 (474) Death benefits (10,796,821) (2,486,378) (1,170,430) Net annuity transactions (35,585) (42,674) 3,695 --------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (134,112,616) (34,730,125) (16,564,778) --------------- -------------- -------------- Net increase (decrease) in net assets (49,244,987) (10,358,189) (5,746,166) NET ASSETS: Beginning of year 598,947,672 169,374,968 76,375,757 --------------- -------------- -------------- End of year $549,702,685 $159,016,779 $70,629,591 =============== ============== ==============
SA-87 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS STERLING GLOBAL SMALL CAPITAL STRATEGIC CAPITALIZATION FUND ALLOCATION EQUITY VIF SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(282,051) $(38) Net realized gain (loss) on security transactions 2,111,380 64 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 7,095,781 396 -------------- ------- Net increase (decrease) in net assets resulting from operations 8,925,110 422 -------------- ------- UNIT TRANSACTIONS: Purchases 392,805 -- Net transfers (3,853,789) (13) Surrenders for benefit payments and fees (8,814,510) (4) Other transactions 482 -- Death benefits (844,473) -- Net annuity transactions 40,644 -- -------------- ------- Net increase (decrease) in net assets resulting from unit transactions (13,078,841) (17) -------------- ------- Net increase (decrease) in net assets (4,153,731) 405 NET ASSETS: Beginning of year 60,564,986 3,618 -------------- ------- End of year $56,411,255 $4,023 ============== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-88 -------------------------------------------------------------------------------
COLUMBIA VARIABLE STERLING STERLING STERLING PORTFOLIO -- CAPITAL SELECT CAPITAL SPECIAL CAPITAL TOTAL SMALL COMPANY EQUITY VIF OPPORTUNITIES VIF RETURN BOND VIF GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(3) $(27,761) $12,499 $(130,313) Net realized gain (loss) on security transactions 9 40,861 14,465 (71,607) Net realized gain on distributions -- 91,027 28,212 -- Net unrealized appreciation (depreciation) of investments during the year 187 147,428 (11,696) 788,349 --------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 193 251,555 43,480 586,429 --------- ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases -- 63,437 -- 11,424 Net transfers 27,791 (100,154) (1,521) (98,183) Surrenders for benefit payments and fees (19) (163,191) (104,575) (786,214) Other transactions 1 (213) 142 57 Death benefits -- -- -- (120,580) Net annuity transactions -- -- -- 1,107 --------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 27,773 (200,121) (105,954) (992,389) --------- ------------ ------------ ------------ Net increase (decrease) in net assets 27,966 51,434 (62,474) (405,960) NET ASSETS: Beginning of year 2,200 2,074,711 1,015,821 6,168,754 --------- ------------ ------------ ------------ End of year $30,166 $2,126,145 $953,347 $5,762,794 ========= ============ ============ ============ WELLS FARGO ADVANTAGE VT FIDELITY VIP FIDELITY VIP OMEGA GROWTH CONTRAFUND(R) GROWTH FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(16,237) $(12,661) $(142,387) Net realized gain (loss) on security transactions 27,668 85,556 1,337,222 Net realized gain on distributions 69,767 -- -- Net unrealized appreciation (depreciation) of investments during the year 28,728 49,045 1,830,194 ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations 109,926 121,940 3,025,029 ------------ ------------ ------------- UNIT TRANSACTIONS: Purchases 11,970 350 1,579,411 Net transfers 505,395 (85,808) (729,035) Surrenders for benefit payments and fees (69,348) (226,097) (2,344,064) Other transactions 4 1 (207) Death benefits -- (7,308) (294,722) Net annuity transactions -- -- (14,149) ------------ ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions 448,021 (318,862) (1,802,766) ------------ ------------ ------------- Net increase (decrease) in net assets 557,947 (196,922) 1,222,263 NET ASSETS: Beginning of year 591,440 1,018,966 21,466,459 ------------ ------------ ------------- End of year $1,149,387 $822,044 $22,688,722 ============ ============ =============
SA-89 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
FIDELITY VIP FIDELITY VIP MID CAP VALUE STRATEGIES PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(209,355) $(17,592) Net realized gain (loss) on security transactions 758,090 105,178 Net realized gain on distributions 1,287,640 -- Net unrealized appreciation (depreciation) of investments during the year 116,903 202,138 ------------- ------------ Net increase (decrease) in net assets resulting from operations 1,953,278 289,724 ------------- ------------ UNIT TRANSACTIONS: Purchases 151,805 15,129 Net transfers (314,583) (356,504) Surrenders for benefit payments and fees (1,079,134) (83,277) Other transactions (65) -- Death benefits (149,254) (8,783) Net annuity transactions (5,406) 682 ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (1,396,637) (432,753) ------------- ------------ Net increase (decrease) in net assets 556,641 (143,029) NET ASSETS: Beginning of year 15,589,399 1,246,163 ------------- ------------ End of year $16,146,040 $1,103,134 ============= ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-90 -------------------------------------------------------------------------------
FIDELITY VIP FRANKLIN DYNAMIC CAPITAL FIDELITY VIP RISING FRANKLIN APPRECIATION STRATEGIC INCOME DIVIDENDS INCOME PORTFOLIO PORTFOLIO SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(3,584) $2,190 $(247,180) $39,193,159 Net realized gain (loss) on security transactions 15,247 62 10,657,103 (2,341,435) Net realized gain on distributions -- 746 -- -- Net unrealized appreciation (depreciation) of investments during the year 31,217 1,991 16,350,457 47,750,039 ---------- --------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 42,880 4,989 26,760,380 84,601,763 ---------- --------- -------------- --------------- UNIT TRANSACTIONS: Purchases 361 30,000 1,624,429 3,636,525 Net transfers 90,557 15,095 (1,354,796) (19,372,257) Surrenders for benefit payments and fees (6,562) (220) (44,671,484) (134,631,406) Other transactions 152 -- 1,840 (4,368) Death benefits -- -- (4,901,383) (17,329,889) Net annuity transactions -- -- (304) 39,711 ---------- --------- -------------- --------------- Net increase (decrease) in net assets resulting from unit transactions 84,508 44,875 (49,301,698) (167,661,684) ---------- --------- -------------- --------------- Net increase (decrease) in net assets 127,388 49,864 (22,541,318) (83,059,921) NET ASSETS: Beginning of year 171,347 26,385 287,809,621 866,473,608 ---------- --------- -------------- --------------- End of year $298,735 $76,249 $265,268,303 $783,413,687 ========== ========= ============== =============== FRANKLIN FRANKLIN FRANKLIN LARGE CAP GLOBAL SMALL-MID CAP GROWTH REAL ESTATE GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(416,692) $(17,844) $(1,411,573) Net realized gain (loss) on security transactions 1,668,322 (104,154) 3,297,577 Net realized gain on distributions -- -- 5,650,576 Net unrealized appreciation (depreciation) of investments during the year 3,050,455 386,761 (699,159) -------------- ------------ -------------- Net increase (decrease) in net assets resulting from operations 4,302,085 264,763 6,837,421 -------------- ------------ -------------- UNIT TRANSACTIONS: Purchases 383,510 229 425,948 Net transfers (1,891,932) (65,589) (3,094,263) Surrenders for benefit payments and fees (8,363,298) (171,638) (12,268,898) Other transactions 787 (1) 792 Death benefits (540,114) (19,423) (1,093,523) Net annuity transactions (1,399) 30,376 (10,701) -------------- ------------ -------------- Net increase (decrease) in net assets resulting from unit transactions (10,412,446) (226,046) (16,040,645) -------------- ------------ -------------- Net increase (decrease) in net assets (6,110,361) 38,717 (9,203,224) NET ASSETS: Beginning of year 43,752,484 1,171,672 79,698,492 -------------- ------------ -------------- End of year $37,642,123 $1,210,389 $70,495,268 ============== ============ ==============
SA-91 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL CAP STRATEGIC VALUE INCOME SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(161,836) $13,375,962 Net realized gain (loss) on security transactions 1,149,380 3,903,318 Net realized gain on distributions -- 294,265 Net unrealized appreciation (depreciation) of investments during the year 1,318,312 9,396,034 ------------- -------------- Net increase (decrease) in net assets resulting from operations 2,305,856 26,969,579 ------------- -------------- UNIT TRANSACTIONS: Purchases 143,698 2,209,896 Net transfers (270,643) 13,440,001 Surrenders for benefit payments and fees (2,445,737) (44,712,425) Other transactions (499) 3,070 Death benefits (206,895) (4,411,680) Net annuity transactions (159) 89,740 ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (2,780,235) (33,381,398) ------------- -------------- Net increase (decrease) in net assets (474,379) (6,411,819) NET ASSETS: Beginning of year 16,252,963 257,179,250 ------------- -------------- End of year $15,778,584 $250,767,431 ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-92 -------------------------------------------------------------------------------
TEMPLETON DEVELOPING TEMPLETON TEMPLETON MUTUAL SHARES MARKETS FOREIGN GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $990,443 $(114,663) $1,633,102 $772,340 Net realized gain (loss) on security transactions 6,243,309 459,466 (923,977) (6,114,559) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 37,361,515 5,257,466 19,512,817 45,812,352 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 44,595,267 5,602,269 20,221,942 40,470,133 -------------- -------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 2,551,284 271,339 1,426,950 1,711,566 Net transfers (19,605,562) (2,438,211) (1,251,309) (12,255,366) Surrenders for benefit payments and fees (62,381,475) (9,982,193) (25,573,441) (40,071,214) Other transactions (10,184) (522) 3,365 (2,686) Death benefits (7,700,860) (586,034) (2,112,168) (4,638,190) Net annuity transactions 58,860 23,524 31,066 24,406 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (87,087,937) (12,712,097) (27,475,537) (55,231,484) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets (42,492,670) (7,109,828) (7,253,595) (14,761,351) NET ASSETS: Beginning of year 397,801,809 56,219,294 139,228,121 241,244,696 -------------- -------------- -------------- -------------- End of year $355,309,139 $49,109,466 $131,974,526 $226,483,345 ============== ============== ============== ============== FRANKLIN FRANKLIN MUTUAL FLEX CAP LARGE CAP GLOBAL DISCOVERY GROWTH VALUE SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $915,570 $(355,291) $(15,055) Net realized gain (loss) on security transactions 4,083,773 1,148,305 54,767 Net realized gain on distributions 6,115,193 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,964,871 617,235 884,528 -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 13,079,407 1,410,249 924,240 -------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 492,549 207,795 18,831 Net transfers (6,393,554) (57,414) (24,083) Surrenders for benefit payments and fees (18,210,439) (3,305,756) (1,015,496) Other transactions (897) 1,750 (56) Death benefits (1,843,290) (235,955) (101,167) Net annuity transactions (70,017) 2,983 -- -------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (26,025,648) (3,386,597) (1,121,971) -------------- ------------- ------------- Net increase (decrease) in net assets (12,946,241) (1,976,348) (197,731) NET ASSETS: Beginning of year 126,044,828 19,594,014 7,801,283 -------------- ------------- ------------- End of year $113,098,587 $17,617,666 $7,603,552 ============== ============= =============
SA-93 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
TEMPLETON HARTFORD GLOBAL BOND BALANCED SECURITIES FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (4) -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,010,798 $141,193 Net realized gain (loss) on security transactions 292,171 (196,157) Net realized gain on distributions 34,949 -- Net unrealized appreciation (depreciation) of investments during the year 1,360,208 1,532,574 ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,698,126 1,477,610 ------------- ------------- UNIT TRANSACTIONS: Purchases 366,975 39,679 Net transfers 1,298,342 1,269,295 Surrenders for benefit payments and fees (1,809,832) (2,171,549) Other transactions 106 337 Death benefits (552,354) (205,278) Net annuity transactions 21,110 11,437 ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (675,653) (1,056,079) ------------- ------------- Net increase (decrease) in net assets 2,022,473 421,531 NET ASSETS: Beginning of year 20,322,857 15,792,890 ------------- ------------- End of year $22,345,330 $16,214,421 ============= =============
(4) Formerly Hartford Advisers HLS Fund. Change effective June 29, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-94 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD TOTAL CAPITAL DIVIDEND HARTFORD RETURN BOND APPRECIATION AND GROWTH GLOBAL RESEARCH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $4,094,673 $(311,695) $570,909 $(3,983) Net realized gain (loss) on security transactions 2,598,757 5,011,980 4,796,178 1,053 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 2,833,107 17,426,422 6,546,097 48,459 -------------- -------------- -------------- ---------- Net increase (decrease) in net assets resulting from operations 9,526,537 22,126,707 11,913,184 45,529 -------------- -------------- -------------- ---------- UNIT TRANSACTIONS: Purchases 1,566,023 1,638,693 1,402,280 -- Net transfers 5,197,603 (6,937,917) (6,786,441) 29,725 Surrenders for benefit payments and fees (15,863,350) (12,800,489) (10,004,911) (88,482) Other transactions (956) (568) 125 1 Death benefits (2,204,561) (1,451,410) (1,354,877) (5,014) Net annuity transactions (4,267) 30,263 35,268 -- -------------- -------------- -------------- ---------- Net increase (decrease) in net assets resulting from unit transactions (11,309,508) (19,521,428) (16,708,556) (63,770) -------------- -------------- -------------- ---------- Net increase (decrease) in net assets (1,782,971) 2,605,279 (4,795,372) (18,241) NET ASSETS: Beginning of year 166,428,046 139,889,415 105,474,269 358,485 -------------- -------------- -------------- ---------- End of year $164,645,075 $142,494,694 $100,678,897 $340,244 ============== ============== ============== ========== HARTFORD HARTFORD HARTFORD DISCIPLINED HEALTHCARE GLOBAL GROWTH EQUITY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,971) $(7,228) $(1,927) Net realized gain (loss) on security transactions 25,800 (21,650) 584,332 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 18,773 146,342 1,290,242 ----------- ---------- ------------- Net increase (decrease) in net assets resulting from operations 41,602 117,464 1,872,647 ----------- ---------- ------------- UNIT TRANSACTIONS: Purchases -- 500 105,160 Net transfers 478 60,635 (941,763) Surrenders for benefit payments and fees (122,355) (50,314) (862,033) Other transactions 1 -- 47 Death benefits (2,487) (747) (131,544) Net annuity transactions -- 2,501 (487) ----------- ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions (124,363) 12,575 (1,830,620) ----------- ---------- ------------- Net increase (decrease) in net assets (82,761) 130,039 42,027 NET ASSETS: Beginning of year 258,792 559,775 12,356,809 ----------- ---------- ------------- End of year $176,031 $689,814 $12,398,836 =========== ========== =============
SA-95 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(16,153) $(480,180) Net realized gain (loss) on security transactions 45,966 1,794,293 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 146,296 5,609,690 ------------ ------------- Net increase (decrease) in net assets resulting from operations 176,109 6,923,803 ------------ ------------- UNIT TRANSACTIONS: Purchases 86,573 466,443 Net transfers 127,333 (2,303,345) Surrenders for benefit payments and fees (263,761) (2,290,301) Other transactions 136 (477) Death benefits -- (351,645) Net annuity transactions -- -- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (49,719) (4,479,325) ------------ ------------- Net increase (decrease) in net assets 126,390 2,444,478 NET ASSETS: Beginning of year 1,061,553 28,353,767 ------------ ------------- End of year $1,187,943 $30,798,245 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-96 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL SMALL/MID CAP HIGH YIELD INDEX OPPORTUNITIES EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $707,561 $68,762 $15,823 $(27,004) Net realized gain (loss) on security transactions 143,267 6,879 127,105 95,330 Net realized gain on distributions -- -- -- 307,036 Net unrealized appreciation (depreciation) of investments during the year 268,000 181,766 1,280,822 (86,910) ------------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,118,828 257,407 1,423,750 288,452 ------------- ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 265,032 2,008,630 496,671 45,657 Net transfers 1,096,776 3,335,670 363,325 (247,773) Surrenders for benefit payments and fees (710,541) (21,585) (964,434) (239,977) Other transactions 16 188 (1,066) (5) Death benefits (109,309) (2,591) (127,759) (48,276) Net annuity transactions -- -- 10,952 -- ------------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 541,974 5,320,312 (222,311) (490,374) ------------- ------------ ------------ ------------ Net increase (decrease) in net assets 1,660,802 5,577,719 1,201,439 (201,922) NET ASSETS: Beginning of year 8,356,503 485,264 7,869,538 2,348,290 ------------- ------------ ------------ ------------ End of year $10,017,305 $6,062,983 $9,070,977 $2,146,368 ============= ============ ============ ============ HARTFORD HARTFORD HARTFORD MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(10,818) $(3,109) $(3,794,143) Net realized gain (loss) on security transactions 34,211 12,403 2 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 171,789 51,664 -- ------------ ---------- --------------- Net increase (decrease) in net assets resulting from operations 195,182 60,958 (3,794,141) ------------ ---------- --------------- UNIT TRANSACTIONS: Purchases -- 4,859 4,396,032 Net transfers (54,686) 16,857 90,860,657 Surrenders for benefit payments and fees (229,256) (9,266) (140,241,269) Other transactions 1 -- 3,797 Death benefits (2,929) -- (7,517,061) Net annuity transactions 7,000 -- (26,068) ------------ ---------- --------------- Net increase (decrease) in net assets resulting from unit transactions (279,870) 12,450 (52,523,912) ------------ ---------- --------------- Net increase (decrease) in net assets (84,688) 73,408 (56,318,053) NET ASSETS: Beginning of year 1,252,249 258,234 251,768,173 ------------ ---------- --------------- End of year $1,167,561 $331,642 $195,450,120 ============ ========== ===============
SA-97 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HARTFORD HARTFORD SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(85,348) $(30,151) Net realized gain (loss) on security transactions 266,974 200,484 Net realized gain on distributions 284 -- Net unrealized appreciation (depreciation) of investments during the year 376,714 104,851 ------------ ------------- Net increase (decrease) in net assets resulting from operations 558,624 275,184 ------------ ------------- UNIT TRANSACTIONS: Purchases 3,785 13,793 Net transfers (122,194) (1,063,549) Surrenders for benefit payments and fees (511,202) (122,558) Other transactions (914) 1 Death benefits (75,109) (7,413) Net annuity transactions 5,703 5,239 ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (699,931) (1,174,487) ------------ ------------- Net increase (decrease) in net assets (141,307) (899,303) NET ASSETS: Beginning of year 4,322,079 2,122,457 ------------ ------------- End of year $4,180,772 $1,223,154 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-98 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD AMERICAN FUNDS STOCK SECURITIES VALUE ASSET ALLOCATION HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(18,337) $88,558 $12,341 $(17,703) Net realized gain (loss) on security transactions (100,798) 66,438 49,538 700,039 Net realized gain on distributions -- -- -- 29,622 Net unrealized appreciation (depreciation) of investments during the year 1,248,553 12,351 144,763 1,107,901 ------------- ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 1,129,418 167,347 206,642 1,819,859 ------------- ------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 12,932 223,626 113,717 671,408 Net transfers (1,124,963) 411,200 6,085 494,078 Surrenders for benefit payments and fees (1,343,585) (1,258,434) (87,697) (1,984,041) Other transactions (851) 177 2 (235) Death benefits (176,113) (47,188) (931) (190,119) Net annuity transactions 9,750 -- (705) -- ------------- ------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (2,622,830) (670,619) 30,471 (1,008,909) ------------- ------------- ------------ ------------- Net increase (decrease) in net assets (1,493,412) (503,272) 237,113 810,950 NET ASSETS: Beginning of year 10,241,194 8,798,938 1,339,984 13,399,869 ------------- ------------- ------------ ------------- End of year $8,747,782 $8,295,666 $1,577,097 $14,210,819 ============= ============= ============ ============= AMERICAN FUNDS BLUE CHIP INCOME AND AMERICAN FUNDS AMERICAN FUNDS GROWTH BOND GLOBAL BOND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ----------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(30,403) $359,991 $45,045 Net realized gain (loss) on security transactions 264,458 572,224 126,406 Net realized gain on distributions 41,879 718,141 89,662 Net unrealized appreciation (depreciation) of investments during the year 390,761 (521,158) (73,589) ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations 666,695 1,129,198 187,524 ------------ ------------- ------------ UNIT TRANSACTIONS: Purchases 162,943 393,619 103,282 Net transfers 75,249 2,431,206 (129,944) Surrenders for benefit payments and fees (722,109) (2,872,682) (509,707) Other transactions (279) (1,325) (217) Death benefits (68,216) (501,152) (48,896) Net annuity transactions -- (3,446) -- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (552,412) (553,780) (585,482) ------------ ------------- ------------ Net increase (decrease) in net assets 114,283 575,418 (397,958) NET ASSETS: Beginning of year 5,781,325 32,461,762 4,700,603 ------------ ------------- ------------ End of year $5,895,608 $33,037,180 $4,302,645 ============ ============= ============
SA-99 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL GROWTH AMERICAN FUNDS AND INCOME GLOBAL GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $112,299 $(23,285) Net realized gain (loss) on security transactions 477,227 192,633 Net realized gain on distributions 511 38,320 Net unrealized appreciation (depreciation) of investments during the year 1,184,845 474,146 ------------- ------------ Net increase (decrease) in net assets resulting from operations 1,774,882 681,814 ------------- ------------ UNIT TRANSACTIONS: Purchases 46,271 24,455 Net transfers (999,428) (531,526) Surrenders for benefit payments and fees (1,234,195) (425,976) Other transactions (801) (173) Death benefits (83,351) (21,710) Net annuity transactions -- (2,568) ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (2,271,504) (957,498) ------------- ------------ Net increase (decrease) in net assets (496,622) (275,684) NET ASSETS: Beginning of year 12,429,413 3,722,272 ------------- ------------ End of year $11,932,791 $3,446,588 ============= ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-100 -------------------------------------------------------------------------------
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS CAPITALIZATION GROWTH GROWTH-INCOME INTERNATIONAL HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(41,638) $(698,306) $(108,684) $27,598 Net realized gain (loss) on security transactions 216,464 2,734,056 1,045,143 487,103 Net realized gain on distributions 793,413 165,415 -- -- Net unrealized appreciation (depreciation) of investments during the year 337,635 5,977,775 3,341,091 4,980,248 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,305,874 8,178,940 4,277,550 5,494,949 ------------ ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 84,903 2,171,075 1,672,653 962,190 Net transfers (24,717) (1,661,821) (1,046,188) 474,272 Surrenders for benefit payments and fees (697,571) (4,238,426) (2,333,296) (2,764,280) Other transactions (621) (2,541) (1,220) (1,213) Death benefits (52,609) (648,431) (350,688) (357,039) Net annuity transactions (6,509) (10,598) (2,266) (2,708) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (697,124) (4,390,742) (2,061,005) (1,688,778) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets 608,750 3,788,198 2,216,545 3,806,171 NET ASSETS: Beginning of year 8,326,884 52,704,373 28,728,041 34,559,883 ------------ ------------- ------------- ------------- End of year $8,935,634 $56,492,571 $30,944,586 $38,366,054 ============ ============= ============= ============= HARTFORD AMERICAN FUNDS PORTFOLIO HUNTINGTON VA NEW WORLD DIVERSIFIER INCOME HLS FUND HLS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(16,697) $(76,670) $110,724 Net realized gain (loss) on security transactions 260,153 (40,247) (3,218) Net realized gain on distributions 405,198 -- -- Net unrealized appreciation (depreciation) of investments during the year 457,982 (1,529,472) 165,467 ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 1,106,636 (1,646,389) 272,973 ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 18,302 22,615,429 1,050,490 Net transfers (822,741) 15,973,116 468,570 Surrenders for benefit payments and fees (780,005) (449,879) (267,352) Other transactions (405) 2,117 (368) Death benefits (94,663) (77,356) (42,986) Net annuity transactions -- -- -- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (1,679,512) 38,063,427 1,208,354 ------------- ------------- ------------ Net increase (decrease) in net assets (572,876) 36,417,038 1,481,327 NET ASSETS: Beginning of year 7,873,773 7,422,841 2,608,841 ------------- ------------- ------------ End of year $7,300,897 $43,839,879 $4,090,168 ============= ============= ============
SA-101 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
HUNTINGTON VA DIVIDEND HUNTINGTON VA CAPTURE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $143,186 $(28,613) Net realized gain (loss) on security transactions (191,373) (12,466) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 662,224 246,996 ------------ ------------ Net increase (decrease) in net assets resulting from operations 614,037 205,917 ------------ ------------ UNIT TRANSACTIONS: Purchases 145,555 124,565 Net transfers 199,777 (58,652) Surrenders for benefit payments and fees (769,508) (203,917) Other transactions (293) (3) Death benefits (108,417) (42,016) Net annuity transactions -- -- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (532,886) (180,023) ------------ ------------ Net increase (decrease) in net assets 81,151 25,894 NET ASSETS: Beginning of year 6,643,933 2,383,392 ------------ ------------ End of year $6,725,084 $2,409,286 ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-102 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA MID CORP ROTATING INTERNATIONAL HUNTINGTON VA AMERICA FUND MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT (5) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(102,610) $(3,962) $(6,519) $(8,197) Net realized gain (loss) on security transactions (367,267) (4,628) (88,010) (11,633) Net realized gain on distributions 367,377 -- -- -- Net unrealized appreciation (depreciation) of investments during the year 1,170,496 78,585 642,671 173,221 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,067,996 69,995 548,142 153,391 ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 153,310 12,466 726,195 1,034,648 Net transfers (204,593) (42,631) 261,962 450,186 Surrenders for benefit payments and fees (810,770) (120,950) (445,023) (121,040) Other transactions 237 1 (1,144) (403) Death benefits (80,264) (10,187) (47,572) (28,326) Net annuity transactions -- -- -- -- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (942,080) (161,301) 494,418 1,335,065 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 125,916 (91,306) 1,042,560 1,488,456 NET ASSETS: Beginning of year 6,982,083 1,395,134 4,177,237 1,306,810 ------------ ------------ ------------ ------------ End of year $7,107,999 $1,303,828 $5,219,797 $2,795,266 ============ ============ ============ ============ HUNTINGTON VA LORD ABBETT MORTGAGE HUNTINGTON VA FUNDAMENTAL SECURITIES FUND SITUS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $31,885 $(93,928) $(1,640) Net realized gain (loss) on security transactions 39,059 225,436 7,955 Net realized gain on distributions -- -- 27,348 Net unrealized appreciation (depreciation) of investments during the year (11,724) 925,870 66,356 ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 59,220 1,057,378 100,019 ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 113,446 148,566 664,449 Net transfers 265,864 (132,668) 140,686 Surrenders for benefit payments and fees (280,430) (665,915) (21,483) Other transactions -- (222) (46) Death benefits (73,153) (49,494) -- Net annuity transactions -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 25,727 (699,733) 783,606 ------------ ------------ ------------ Net increase (decrease) in net assets 84,947 357,645 883,625 NET ASSETS: Beginning of year 3,132,291 5,425,312 847,843 ------------ ------------ ------------ End of year $3,217,238 $5,782,957 $1,731,468 ============ ============ ============
(5) Effective April 27, 2012 Huntington VA New Economy Fund merged with Huntington VA Mid Corp America. SA-103 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
LORD ABBETT CALIBRATED LORD ABBETT DIVIDEND BOND GROWTH FUND DEBENTURE FUND SUB-ACCOUNT (6) SUB-ACCOUNT ----------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $38,915 $550,011 Net realized gain (loss) on security transactions 47,254 420,808 Net realized gain on distributions -- 175,992 Net unrealized appreciation (depreciation) of investments during the year 169,864 305,970 ------------ ------------- Net increase (decrease) in net assets resulting from operations 256,033 1,452,781 ------------ ------------- UNIT TRANSACTIONS: Purchases 22,498 128,960 Net transfers 58,053 779,327 Surrenders for benefit payments and fees (152,401) (1,519,121) Other transactions 31 9 Death benefits -- (113,082) Net annuity transactions -- 18,883 ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (71,819) (705,024) ------------ ------------- Net increase (decrease) in net assets 184,214 747,757 NET ASSETS: Beginning of year 2,462,182 13,436,469 ------------ ------------- End of year $2,646,396 $14,184,226 ============ =============
(6) Formerly Lord Abbett Capital Structure Fund. Change effective September 27, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-104 -------------------------------------------------------------------------------
LORD ABBETT GROWTH AND MFS(R) CORE MFS(R) GROWTH MFS(R) GLOBAL INCOME FUND EQUITY SERIES SERIES EQUITY SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(19,200) $(64,291) $(357,142) $(47,446) Net realized gain (loss) on security transactions 152,570 192,282 1,812,981 336,041 Net realized gain on distributions -- -- -- 154,132 Net unrealized appreciation (depreciation) of investments during the year 128,190 687,220 1,378,434 850,715 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 261,560 815,211 2,834,273 1,293,442 ------------ ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 31,370 12,646 289,636 68,036 Net transfers (110,075) 321,445 2,322,825 989,041 Surrenders for benefit payments and fees (539,797) (1,224,286) (3,724,748) (1,398,689) Other transactions (73) 480 (8,745) 689 Death benefits (73,993) (143,493) (348,150) (109,683) Net annuity transactions -- (10,534) 11,416 19,654 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (692,568) (1,043,742) (1,457,766) (430,952) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets (431,008) (228,531) 1,376,507 862,490 NET ASSETS: Beginning of year 2,666,369 5,906,990 19,076,490 6,426,296 ------------ ------------- ------------- ------------- End of year $2,235,361 $5,678,459 $20,452,997 $7,288,786 ============ ============= ============= ============= MFS(R) INVESTORS MFS(R) HIGH GROWTH MFS(R) INVESTORS INCOME SERIES STOCK SERIES TRUST SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $4,269,798 $(152,462) $(920,801) Net realized gain (loss) on security transactions (1,131,906) 677,821 5,886,937 Net realized gain on distributions -- 529,931 -- Net unrealized appreciation (depreciation) of investments during the year 5,494,179 482,686 11,594,270 -------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 8,632,071 1,537,976 16,560,406 -------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 325,601 32,117 258,885 Net transfers 8,694,413 (301,582) (8,588,849) Surrenders for benefit payments and fees (13,594,952) (2,130,751) (17,425,610) Other transactions 182 103 682 Death benefits (1,899,203) (151,991) (1,729,290) Net annuity transactions 3,138 419 (9,866) -------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (6,470,821) (2,551,685) (27,494,048) -------------- ------------- -------------- Net increase (decrease) in net assets 2,161,250 (1,013,709) (10,933,642) NET ASSETS: Beginning of year 70,952,605 11,299,773 106,104,005 -------------- ------------- -------------- End of year $73,113,855 $10,286,064 $95,170,363 ============== ============= ==============
SA-105 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
MFS(R) MID CAP MFS(R) NEW GROWTH SERIES DISCOVERY SERIES SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(380,515) $(1,208,388) Net realized gain (loss) on security transactions (169,933) 2,100,445 Net realized gain on distributions -- 6,116,617 Net unrealized appreciation (depreciation) of investments during the year 3,320,387 4,903,589 ------------- -------------- Net increase (decrease) in net assets resulting from operations 2,769,939 11,912,263 ------------- -------------- UNIT TRANSACTIONS: Purchases 152,680 190,075 Net transfers 361,250 (4,741,762) Surrenders for benefit payments and fees (3,993,755) (11,815,388) Other transactions 3,523 1,081 Death benefits (372,510) (830,569) Net annuity transactions 7,034 (20,510) ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (3,841,778) (17,217,073) ------------- -------------- Net increase (decrease) in net assets (1,071,839) (5,304,810) NET ASSETS: Beginning of year 20,537,953 67,973,864 ------------- -------------- End of year $19,466,114 $62,669,054 ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-106 -------------------------------------------------------------------------------
MFS(R) TOTAL MFS(R) VALUE MFS(R) RESEARCH MFS(R) RESEARCH RETURN SERIES SERIES BOND SERIES INTERNATIONAL SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $3,155,643 $(131,744) $861,764 $138,473 Net realized gain (loss) on security transactions (48,109) 2,071,587 2,883,500 (1,104,710) Net realized gain on distributions -- 656,284 567,286 -- Net unrealized appreciation (depreciation) of investments during the year 27,034,404 9,157,442 313,936 3,802,267 -------------- -------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 30,141,938 11,753,569 4,626,486 2,836,030 -------------- -------------- -------------- ------------- UNIT TRANSACTIONS: Purchases 1,505,576 1,834,921 949,196 75,418 Net transfers (3,471,283) (1,588,073) 10,870,611 58,424 Surrenders for benefit payments and fees (52,018,930) (11,101,344) (14,987,442) (2,481,880) Other transactions 3,272 474 (623) 586 Death benefits (6,630,302) (1,108,842) (1,293,352) (381,547) Net annuity transactions (8,376) (1,790) (1,414) 1 -------------- -------------- -------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (60,620,043) (11,964,654) (4,463,024) (2,728,998) -------------- -------------- -------------- ------------- Net increase (decrease) in net assets (30,478,105) (211,085) 163,462 107,032 NET ASSETS: Beginning of year 345,863,316 86,277,227 85,737,316 20,296,461 -------------- -------------- -------------- ------------- End of year $315,385,211 $86,066,142 $85,900,778 $20,403,493 ============== ============== ============== ============= BLACKROCK BLACKROCK MFS(R) RESEARCH GLOBAL GLOBAL SERIES ALLOCATION V.I. FUND OPPORTUNITIES V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(49,663) $942 $(213) Net realized gain (loss) on security transactions 407,501 247 10,025 Net realized gain on distributions -- 318 -- Net unrealized appreciation (depreciation) of investments during the year 305,285 2,729 (7,529) ------------- --------- --------- Net increase (decrease) in net assets resulting from operations 663,123 4,236 2,283 ------------- --------- --------- UNIT TRANSACTIONS: Purchases 25,139 39,500 -- Net transfers 879,622 34,902 -- Surrenders for benefit payments and fees (1,354,649) (214) -- Other transactions (465) 23 -- Death benefits (20,954) -- -- Net annuity transactions -- -- -- ------------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions (471,307) 74,211 -- ------------- --------- --------- Net increase (decrease) in net assets 191,816 78,447 2,283 NET ASSETS: Beginning of year 4,790,149 18,375 18,803 ------------- --------- --------- End of year $4,981,965 $96,822 $21,086 ============= ========= =========
SA-107 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
BLACKROCK BLACKROCK LARGE CAP EQUITY GROWTH V.I. FUND DIVIDEND V.I. FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,935) $11,469 Net realized gain (loss) on security transactions 27,627 2,938 Net realized gain on distributions 30,285 845 Net unrealized appreciation (depreciation) of investments during the year (1,052) 31,879 ---------- ------------ Net increase (decrease) in net assets resulting from operations 53,925 47,131 ---------- ------------ UNIT TRANSACTIONS: Purchases -- 779,772 Net transfers (1,963) 91,724 Surrenders for benefit payments and fees (55,746) (4,693) Other transactions -- 89 Death benefits -- -- Net annuity transactions -- -- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions (57,709) 866,892 ---------- ------------ Net increase (decrease) in net assets (3,784) 914,023 NET ASSETS: Beginning of year 418,322 115,017 ---------- ------------ End of year $414,538 $1,029,040 ========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-108 -------------------------------------------------------------------------------
INVESCO MORGAN STANLEY UIF MID CAP VAN KAMPEN V.I. MORGAN STANLEY -- MULTI CAP GROWTH AMERICAN FOCUS GROWTH GROWTH PORTFOLIO VALUE FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT (7) SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(39,060) $(7,570) $(72) $(3,314) Net realized gain (loss) on security transactions 181,806 74,580 (6) 3,726 Net realized gain on distributions 284,136 -- 162 11,121 Net unrealized appreciation (depreciation) of investments during the year (249,050) 51,384 (334) 3,659 ------------ ---------- ------- ---------- Net increase (decrease) in net assets resulting from operations 177,832 118,394 (250) 15,192 ------------ ---------- ------- ---------- UNIT TRANSACTIONS: Purchases 21,567 1,428 -- 10,500 Net transfers (490,492) 47,322 5,146 (4,284) Surrenders for benefit payments and fees (245,924) (74,111) -- (3,572) Other transactions 19 -- 1 -- Death benefits (17,802) -- -- -- Net annuity transactions (2,203) -- -- -- ------------ ---------- ------- ---------- Net increase (decrease) in net assets resulting from unit transactions (734,835) (25,361) 5,147 2,644 ------------ ---------- ------- ---------- Net increase (decrease) in net assets (557,003) 93,033 4,897 17,836 NET ASSETS: Beginning of year 2,662,967 743,637 -- 162,285 ------------ ---------- ------- ---------- End of year $2,105,964 $836,670 $4,897 $180,121 ============ ========== ======= ========== MORGAN STANLEY -- MID CAP MORGAN STANLEY -- WILMINGTON MANAGED GROWTH FLEXIBLE INCOME ALLOCATION FUND -- PORTFOLIO PORTFOLIO MODERATE GROWTH II SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (8)(9) ----------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,915) $3,681 $(22) Net realized gain (loss) on security transactions (1,480) (73) 440 Net realized gain on distributions 11,795 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,565 4,672 (270) ---------- --------- --------- Net increase (decrease) in net assets resulting from operations 8,965 8,280 148 ---------- --------- --------- UNIT TRANSACTIONS: Purchases 21,000 -- -- Net transfers 8,980 -- (15,887) Surrenders for benefit payments and fees (11,143) (680) -- Other transactions 1 -- -- Death benefits -- -- -- Net annuity transactions -- -- -- ---------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 18,838 (680) (15,887) ---------- --------- --------- Net increase (decrease) in net assets 27,803 7,600 (15,739) NET ASSETS: Beginning of year 144,190 76,556 15,739 ---------- --------- --------- End of year $171,993 $84,156 $ -- ========== ========= =========
(7) Formerly Invesco Van Kampen V.I. Mid Cap Value Fund. Change effective July 15, 2012. (8) Formerly MTB Managed Allocation Fund -- Moderate Growth II. Change effective March 9, 2012. (9) Effective September 28, 2012 Wilmington Managed Allocation Fund -- Moderate Growth II was liquidated. SA-109 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
COLUMBIA VARIABLE BLACKROCK PORTFOLIO -- CAPITAL MARSICO INTERNATIONAL APPRECIATION V.I. FUND OPPORTUNITIES FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,496 $(108,852) Net realized gain (loss) on security transactions 3,482 415,761 Net realized gain on distributions 11,916 -- Net unrealized appreciation (depreciation) of investments during the year 17,964 1,008,704 ---------- ------------- Net increase (decrease) in net assets resulting from operations 34,858 1,315,613 ---------- ------------- UNIT TRANSACTIONS: Purchases 739,452 14,731 Net transfers 94,778 (58,985) Surrenders for benefit payments and fees (4,438) (1,268,671) Other transactions -- (216) Death benefits -- (123,572) Net annuity transactions -- 11,205 ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions 829,792 (1,425,508) ---------- ------------- Net increase (decrease) in net assets 864,650 (109,895) NET ASSETS: Beginning of year 108,335 9,146,485 ---------- ------------- End of year $972,985 $9,036,590 ========== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-110 -------------------------------------------------------------------------------
COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- MARSICO FOCUSED ASSET ALLOCATION MARSICO HIGH INCOME FUND EQUITIES FUND FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $499,291 $(144,829) $7,895 $(106,956) Net realized gain (loss) on security transactions 237,235 436,633 (258,776) 837,927 Net realized gain on distributions -- 854,795 -- -- Net unrealized appreciation (depreciation) of investments during the year 554,081 (317,875) 679,226 16,344 ------------- ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 1,290,607 828,724 428,345 747,315 ------------- ------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 11,777 2,738 -- 14,128 Net transfers (246,642) (363,745) (177,610) (185,067) Surrenders for benefit payments and fees (1,472,373) (1,035,402) (566,632) (1,194,519) Other transactions (73) 351 27 (134) Death benefits (150,784) (87,778) (12,072) (188,692) Net annuity transactions 1,093 (8,140) 14,042 22,899 ------------- ------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (1,857,002) (1,491,976) (742,245) (1,531,385) ------------- ------------- ------------ ------------- Net increase (decrease) in net assets (566,395) (663,252) (313,900) (784,070) NET ASSETS: Beginning of year 10,989,710 8,462,648 4,299,557 7,494,012 ------------- ------------- ------------ ------------- End of year $10,423,315 $7,799,396 $3,985,657 $6,709,942 ============= ============= ============ ============= COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- MARSICO 21ST MID CAP DIVIDEND CENTURY FUND GROWTH FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (10) ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(43,122) $(221,753) $(216,825) Net realized gain (loss) on security transactions 209,171 527,373 (98,113) Net realized gain on distributions -- 194,605 -- Net unrealized appreciation (depreciation) of investments during the year 34,292 480,344 1,473,207 ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations 200,341 980,569 1,158,269 ------------ ------------- ------------- UNIT TRANSACTIONS: Purchases 160 22,989 13,862 Net transfers (145,254) (391,103) (174,824) Surrenders for benefit payments and fees (350,243) (1,367,035) (1,218,972) Other transactions (214) (297) (34) Death benefits (22,890) (199,417) (124,453) Net annuity transactions 2,757 -- 1,098 ------------ ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (515,684) (1,934,863) (1,503,323) ------------ ------------- ------------- Net increase (decrease) in net assets (315,343) (954,294) (345,054) NET ASSETS: Beginning of year 2,187,763 10,570,666 10,246,502 ------------ ------------- ------------- End of year $1,872,420 $9,616,372 $9,901,448 ============ ============= =============
(10) Formerly Columbia Variable Portfolio -- Diversified Equity Income Fund. Change effective June 29, 2012. SA-111 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
OPPENHEIMER CAPITAL OPPENHEIMER APPRECIATION GLOBAL SECURITIES FUND/VA FUND/VA SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(5,002) $21,999 Net realized gain (loss) on security transactions 20,450 365,467 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 36,370 791,922 ---------- ------------- Net increase (decrease) in net assets resulting from operations 51,818 1,179,388 ---------- ------------- UNIT TRANSACTIONS: Purchases 140 50,778 Net transfers 7,396 (29,458) Surrenders for benefit payments and fees (9,132) (925,690) Other transactions (6) (117) Death benefits -- (133,129) Net annuity transactions -- -- ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions (1,602) (1,037,616) ---------- ------------- Net increase (decrease) in net assets 50,216 141,772 NET ASSETS: Beginning of year 432,758 6,664,682 ---------- ------------- End of year $482,974 $6,806,454 ========== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-112 -------------------------------------------------------------------------------
OPPENHEIMER OPPENHEIMER MAIN STREET OPPENHEIMER PUTNAM VT MAIN STREET SMALL- & MID-CAP VALUE DIVERSIFIED FUND(R)/VA FUND/VA FUND/VA INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(10,309) $(77,485) $(592) $825,344 Net realized gain (loss) on security transactions 44,166 442,826 6,830 54,876 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 113,600 505,886 14,050 1,156,159 ------------ ------------ ---------- ------------- Net increase (decrease) in net assets resulting from operations 147,457 871,227 20,288 2,036,379 ------------ ------------ ---------- ------------- UNIT TRANSACTIONS: Purchases 16,609 28,824 651 83,808 Net transfers (2,824) (359,886) (22,003) 2,559,210 Surrenders for benefit payments and fees (69,023) (543,474) (4,949) (1,756,847) Other transactions (1) 125 -- (8) Death benefits (2,984) (65,174) -- (208,543) Net annuity transactions -- -- -- -- ------------ ------------ ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions (58,223) (939,585) (26,301) 677,620 ------------ ------------ ---------- ------------- Net increase (decrease) in net assets 89,234 (68,358) (6,013) 2,713,999 NET ASSETS: Beginning of year 1,021,065 5,999,393 190,149 20,344,537 ------------ ------------ ---------- ------------- End of year $1,110,299 $5,931,035 $184,136 $23,058,536 ============ ============ ========== ============= PUTNAM VT PUTNAM VT PUTNAM VT GLOBAL ASSET INTERNATIONAL INTERNATIONAL ALLOCATION FUND VALUE FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(27,499) $4,362 $1,359 Net realized gain (loss) on security transactions 9,498 (9,168) (793) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 203,564 37,610 57,469 ------------ ----------- ---------- Net increase (decrease) in net assets resulting from operations 185,563 32,804 58,035 ------------ ----------- ---------- UNIT TRANSACTIONS: Purchases 1,800 -- 20 Net transfers 1,638,184 52,002 12,953 Surrenders for benefit payments and fees (74,482) (103,347) (14,191) Other transactions 1 -- -- Death benefits -- -- -- Net annuity transactions -- -- -- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from unit transactions 1,565,503 (51,345) (1,218) ------------ ----------- ---------- Net increase (decrease) in net assets 1,751,066 (18,541) 56,817 NET ASSETS: Beginning of year 702,368 227,998 295,074 ------------ ----------- ---------- End of year $2,453,434 $209,457 $351,891 ============ =========== ==========
SA-113 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
PUTNAM VT PUTNAM VT SMALL CAP INVESTORS FUND VALUE FUND SUB-ACCOUNT (9) SUB-ACCOUNT ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(121) $(40,584) Net realized gain (loss) on security transactions 18,374 44,990 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (5,082) 219,017 ----------- ------------ Net increase (decrease) in net assets resulting from operations 13,171 223,423 ----------- ------------ UNIT TRANSACTIONS: Purchases -- 8,561 Net transfers (404,518) (101,370) Surrenders for benefit payments and fees -- (316,454) Other transactions -- (1) Death benefits -- -- Net annuity transactions -- -- ----------- ------------ Net increase (decrease) in net assets resulting from unit transactions (404,518) (409,264) ----------- ------------ Net increase (decrease) in net assets (391,347) (185,841) NET ASSETS: Beginning of year 391,347 2,223,226 ----------- ------------ End of year $ -- $2,037,385 =========== ============
(9) Not funded as of December 31, 2012. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-114 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST PUTNAM VT CORE BOND U.S. EQUITY INTREPID MID CAP VOYAGER FUND PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(8,424) $2,661,890 $(5,031) $(70,433) Net realized gain (loss) on security transactions 25,542 1,171,465 305,082 (217,514) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 55,246 (651,218) 914,905 1,490,815 ------------ -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 72,364 3,182,137 1,214,956 1,202,868 ------------ -------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 1,846,551 219,858 19,194 22,577 Net transfers (213,655) 7,046,336 (379,176) (638,554) Surrenders for benefit payments and fees (30,016) (14,587,223) (1,867,646) (902,928) Other transactions (130) 236 (191) 1,296 Death benefits (12,925) (1,787,522) (163,537) (129,072) Net annuity transactions -- -- -- -- ------------ -------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 1,589,825 (9,108,315) (2,391,356) (1,646,681) ------------ -------------- ------------- ------------- Net increase (decrease) in net assets 1,662,189 (5,926,178) (1,176,400) (443,813) NET ASSETS: Beginning of year 690,523 87,932,368 8,437,083 9,039,740 ------------ -------------- ------------- ------------- End of year $2,352,712 $82,006,190 $7,260,683 $8,595,927 ============ ============== ============= ============= JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST EQUITY INDEX INTREPID GROWTH MID CAP GROWTH PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $105,977 $(31,829) $(156,385) Net realized gain (loss) on security transactions 957,453 111,432 (133,420) Net realized gain on distributions -- -- 119,991 Net unrealized appreciation (depreciation) of investments during the year 3,329,586 424,573 1,523,815 -------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 4,393,016 504,176 1,354,001 -------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 99,802 11,675 21,621 Net transfers (3,792,030) (113,995) (777,470) Surrenders for benefit payments and fees (6,185,312) (450,725) (2,056,240) Other transactions (126) 264 (5) Death benefits (821,115) (70,856) (163,281) Net annuity transactions -- -- -- -------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (10,698,781) (623,637) (2,975,375) -------------- ------------ ------------- Net increase (decrease) in net assets (6,305,765) (119,461) (1,621,374) NET ASSETS: Beginning of year 35,349,975 3,633,009 9,980,892 -------------- ------------ ------------- End of year $29,044,210 $3,513,548 $8,359,518 ============== ============ =============
SA-115 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
JPMORGAN INSURANCE TRUST PUTNAM VT MID CAP VALUE EQUITY PORTFOLIO -- 1 INCOME FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(34,195) $247 Net realized gain (loss) on security transactions (1,865,901) 24,046 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 3,060,260 (5,485) ------------- ----------- Net increase (decrease) in net assets resulting from operations 1,160,164 18,808 ------------- ----------- UNIT TRANSACTIONS: Purchases 17,796 -- Net transfers (451,368) (417,964) Surrenders for benefit payments and fees (1,731,505) (198) Other transactions (111) 28 Death benefits (116,949) -- Net annuity transactions -- -- ------------- ----------- Net increase (decrease) in net assets resulting from unit transactions (2,282,137) (418,134) ------------- ----------- Net increase (decrease) in net assets (1,121,973) (399,326) NET ASSETS: Beginning of year 7,226,664 426,630 ------------- ----------- End of year $6,104,691 $27,304 ============= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-116 -------------------------------------------------------------------------------
PIMCO PIMCO PIMCO GLOBAL JENNISON 20/20 ALL ASSET EQS PATHFINDER MULTI-ASSET FOCUS PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (11) SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $6,411 $3,009 $302 $(2,265) Net realized gain (loss) on security transactions 66 1,246 (219) 8,870 Net realized gain on distributions -- -- 88 4,747 Net unrealized appreciation (depreciation) of investments during the year 12,008 23,897 202 2,161 ---------- ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 18,485 28,152 373 13,513 ---------- ---------- --------- ---------- UNIT TRANSACTIONS: Purchases 6,000 649,810 10,849 -- Net transfers 31,608 73,823 1,093 -- Surrenders for benefit payments and fees (1,284) (3,908) -- (31,883) Other transactions -- -- (2) (1) Death benefits -- -- -- -- Net annuity transactions -- -- -- -- ---------- ---------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 36,324 719,725 11,940 (31,884) ---------- ---------- --------- ---------- Net increase (decrease) in net assets 54,809 747,877 12,313 (18,371) NET ASSETS: Beginning of year 113,692 96,134 -- 150,201 ---------- ---------- --------- ---------- End of year $168,501 $844,011 $12,313 $131,830 ========== ========== ========= ========== PRUDENTIAL SERIES PRUDENTIAL INTERNATIONAL JENNISON VALUE GROWTH PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(3,412) $(872) $(77) Net realized gain (loss) on security transactions 10,285 (34) (43) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 20,755 10,336 836 ---------- --------- ------- Net increase (decrease) in net assets resulting from operations 27,628 9,430 716 ---------- --------- ------- UNIT TRANSACTIONS: Purchases -- -- -- Net transfers (7,282) 1,517 -- Surrenders for benefit payments and fees (31,021) (2,223) (3) Other transactions (1) -- -- Death benefits -- -- -- Net annuity transactions (6,099) -- -- ---------- --------- ------- Net increase (decrease) in net assets resulting from unit transactions (44,403) (706) (3) ---------- --------- ------- Net increase (decrease) in net assets (16,775) 8,724 713 NET ASSETS: Beginning of year 196,196 76,221 3,658 ---------- --------- ------- End of year $179,421 $84,945 $4,371 ========== ========= =======
(11) Funded as of February 28, 2012. SA-117 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
LEGG MASON LEGG MASON CLEARBRIDGE CLEARBRIDGE VARIABLE VARIABLE EQUITY FUNDAMENTAL INCOME BUILDER ALL CAP VALUE PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $838 $1,195 Net realized gain (loss) on security transactions (4,820) (39,616) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 11,242 121,857 --------- ----------- Net increase (decrease) in net assets resulting from operations 7,260 83,436 --------- ----------- UNIT TRANSACTIONS: Purchases -- -- Net transfers 1,684 2,663 Surrenders for benefit payments and fees (11,737) (185,052) Other transactions 142 (4) Death benefits -- (2,552) Net annuity transactions (44) 38,100 --------- ----------- Net increase (decrease) in net assets resulting from unit transactions (9,955) (146,845) --------- ----------- Net increase (decrease) in net assets (2,695) (63,409) NET ASSETS: Beginning of year 59,573 712,907 --------- ----------- End of year $56,878 $649,498 ========= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-118 -------------------------------------------------------------------------------
WESTERN ASSET LEGG MASON INVESCO VARIABLE GLOBAL CLEARBRIDGE VARIABLE VAN KAMPEN V.I. INVESCO HIGH YIELD BOND LARGE CAP VALUE GROWTH AND VAN KAMPEN V.I. PORTFOLIO PORTFOLIO INCOME FUND COMSTOCK FUND SUB-ACCOUNT (12) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $3,045 $1,823 $(2,487) $(1,823) Net realized gain (loss) on security transactions (1,535) 12,856 35,686 (9,737) Net realized gain on distributions -- 241 -- -- Net unrealized appreciation (depreciation) of investments during the year 7,576 23,104 153,023 69,305 --------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 9,086 38,024 186,222 57,745 --------- ---------- ------------ ---------- UNIT TRANSACTIONS: Purchases 2,466 -- 14,459 -- Net transfers (5,438) (1,870) (41,232) (355) Surrenders for benefit payments and fees (6,384) (87,973) (83,283) (64,739) Other transactions 142 167 147 -- Death benefits -- -- (27,547) -- Net annuity transactions (169) (78) -- -- --------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions (9,383) (89,754) (137,456) (65,094) --------- ---------- ------------ ---------- Net increase (decrease) in net assets (297) (51,730) 48,766 (7,349) NET ASSETS: Beginning of year 57,558 300,983 1,504,906 366,784 --------- ---------- ------------ ---------- End of year $57,261 $249,253 $1,553,672 $359,435 ========= ========== ============ ========== INVESCO INVESCO WELLS FARGO VAN KAMPEN V.I. VAN KAMPEN V.I. ADVANTAGE VT AMERICAN MID CAP INDEX ASSET FRANCHISE FUND GROWTH FUND ALLOCATION FUND SUB-ACCOUNT (13)(14) SUB-ACCOUNT (15)(16) SUB-ACCOUNT -------------------------- ----------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(502,968) $(65,165) $(52) Net realized gain (loss) on security transactions 2,231,449 344,494 1,119 Net realized gain on distributions -- 892 -- Net unrealized appreciation (depreciation) of investments during the year 1,048,203 56,298 318 ------------- ------------- --------- Net increase (decrease) in net assets resulting from operations 2,776,684 336,519 1,385 ------------- ------------- --------- UNIT TRANSACTIONS: Purchases 245,261 18,989 40 Net transfers 406,815 (873,124) 6,170 Surrenders for benefit payments and fees (5,911,851) (689,600) (11) Other transactions 362 (150) -- Death benefits (443,313) (14,933) -- Net annuity transactions 50,746 -- -- ------------- ------------- --------- Net increase (decrease) in net assets resulting from unit transactions (5,651,980) (1,558,818) 6,199 ------------- ------------- --------- Net increase (decrease) in net assets (2,875,296) (1,222,299) 7,584 NET ASSETS: Beginning of year 26,475,859 4,005,838 12,638 ------------- ------------- --------- End of year $23,600,563 $2,783,539 $20,222 ============= ============= =========
(12) Formerly Legg Mason Western Asset Variable Global High Yield Bond Portfolio. Change effective November 1, 2012. (13) Effective April 27, 2012 Invesco V.I. Capital Appreciation Fund merged with Invesco Van Kampen V.I. Capital Growth Fund. (14) Formerly Invesco Van Kampen V.I. Capital Growth Fund. Change effective April 30, 2012. (15) Funded as of April 27, 2012. (16) Effective April 27, 2012 Invesco V.I. Capital Development Fund merged with Invesco Van Kampen V.I. Mid Cap Growth Fund. SA-119 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT TOTAL RETURN INTRINSIC BOND FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $8 $(78) Net realized gain (loss) on security transactions 10 (193) Net realized gain on distributions 205 -- Net unrealized appreciation (depreciation) of investments during the year 353 4,592 --------- --------- Net increase (decrease) in net assets resulting from operations 576 4,321 --------- --------- UNIT TRANSACTIONS: Purchases 40 -- Net transfers 6,170 (663) Surrenders for benefit payments and fees (11) (1,180) Other transactions 1 -- Death benefits -- -- Net annuity transactions -- -- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 6,200 (1,843) --------- --------- Net increase (decrease) in net assets 6,776 2,478 NET ASSETS: Beginning of year 10,802 25,865 --------- --------- End of year $17,578 $28,343 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-120 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT WELLS FARGO INTERNATIONAL SMALL CAP ADVANTAGE VT EQUITY FUND GROWTH FUND DISCOVERY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,033) $(29,776) $(70) Net realized gain (loss) on security transactions (29,907) 74,935 169 Net realized gain on distributions 102,201 80,279 -- Net unrealized appreciation (depreciation) of investments during the year 83,053 (16,369) 545 ------------ ------------ ------- Net increase (decrease) in net assets resulting from operations 154,314 109,069 644 ------------ ------------ ------- UNIT TRANSACTIONS: Purchases 2,021 798 1,265 Net transfers (144,054) 16,999 (694) Surrenders for benefit payments and fees (157,111) (193,014) (21) Other transactions 3 2 1 Death benefits (12,779) (20,666) -- Net annuity transactions -- (472) -- ------------ ------------ ------- Net increase (decrease) in net assets resulting from unit transactions (311,920) (196,353) 551 ------------ ------------ ------- Net increase (decrease) in net assets (157,606) (87,284) 1,195 NET ASSETS: Beginning of year 1,536,435 1,686,200 3,999 ------------ ------------ ------- End of year $1,378,829 $1,598,916 $5,194 ============ ============ ======= WELLS FARGO ADVANTAGE VT WELLS FARGO SMALL CAP ADVANTAGE VT VALUE FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------ OPERATIONS: Net investment income (loss) $(80,412) $(93,131) Net realized gain (loss) on security transactions 656,492 237,951 Net realized gain on distributions -- 3,365 Net unrealized appreciation (depreciation) of investments during the year 992,515 1,091,432 ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,568,595 1,239,617 ------------- ------------- UNIT TRANSACTIONS: Purchases 28,555 113,605 Net transfers (1,090,727) (155,299) Surrenders for benefit payments and fees (1,687,915) (846,454) Other transactions (62) (18) Death benefits (165,417) (194,045) Net annuity transactions (414) -- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (2,915,980) (1,082,211) ------------- ------------- Net increase (decrease) in net assets (1,347,385) 157,406 NET ASSETS: Beginning of year 13,567,829 9,158,329 ------------- ------------- End of year $12,220,444 $9,315,735 ============= =============
SA-121 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN AMERICAN CENTURY VP VPS BALANCED WEALTH VALUE FUND STRATEGY PORTFOLIO SUB-ACCOUNT (1) SUB-ACCOUNT -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,015 $31,610 Net realized gain (loss) on security transactions 589 8,022 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 15,487 (296,235) -------- ---------- Net increase (decrease) in net assets resulting from operations 17,091 (256,603) -------- ---------- UNIT TRANSACTIONS: Purchases 192,258 791,199 Net transfers 95,226 270,467 Surrenders for benefit payments and fees (160) (600,727) Other transactions -- -- Death benefits -- (101,644) Net annuity transactions -- -- -------- ---------- Net increase (decrease) in net assets resulting from unit transactions 287,324 359,295 -------- ---------- Net increase (decrease) in net assets 304,415 102,692 NET ASSETS: Beginning of year -- 4,865,846 -------- ---------- End of year $304,415 $4,968,538 ======== ==========
(1) Funded as of June 28, 2011. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-122 -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN VPS INTERNATIONAL VPS SMALL/MID-CAP ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO VALUE PORTFOLIO VPS VALUE PORTFOLIO GROWTH PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $193,829 $(22,424) $(744) $12,702 Net realized gain (loss) on security transactions 11,349 31,331 (167) 8,124 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (1,925,960) (184,393) (11,488) (261,363) ----------- ---------- -------- ---------- Net increase (decrease) in net assets resulting from operations (1,720,782) (175,486) (12,399) (240,537) ----------- ---------- -------- ---------- UNIT TRANSACTIONS: Purchases 41,229 143,259 -- 16,811 Net transfers 822,516 (152,258) 52,634 (4,462) Surrenders for benefit payments and fees (458,394) (44,071) (10,176) (31,524) Other transactions (38) 17 -- -- Death benefits (93,559) (34,073) -- (19,593) Net annuity transactions -- -- -- -- ----------- ---------- -------- ---------- Net increase (decrease) in net assets resulting from unit transactions 311,754 (87,126) 42,458 (38,768) ----------- ---------- -------- ---------- Net increase (decrease) in net assets (1,409,028) (262,612) 30,059 (279,305) NET ASSETS: Beginning of year 8,531,384 1,804,581 174,314 1,387,961 ----------- ---------- -------- ---------- End of year $7,122,356 $1,541,969 $204,373 $1,108,656 =========== ========== ======== ========== INVESCO V.I. INVESCO V.I. INVESCO V.I. BASIC VALUE CAPITAL CORE FUND APPRECIATION FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------- OPERATIONS: Net investment income (loss) $(339,991) $(340,188) $(691,133) Net realized gain (loss) on security transactions (1,761,838) 16,052 1,861,999 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 578,939 (1,417,082) (2,050,781) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (1,522,890) (1,741,218) (879,915) ----------- ----------- ----------- UNIT TRANSACTIONS: Purchases 174,606 733,366 461,427 Net transfers (2,142,574) (1,312,823) (2,499,461) Surrenders for benefit payments and fees (6,162,200) (2,985,502) (11,215,272) Other transactions (432) (25) (1,130) Death benefits (685,984) (428,559) (1,435,186) Net annuity transactions 1,033 -- 5,606 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions (8,815,551) (3,993,543) (14,684,016) ----------- ----------- ----------- Net increase (decrease) in net assets (10,338,441) (5,734,761) (15,563,931) NET ASSETS: Beginning of year 38,592,858 21,106,111 80,092,705 ----------- ----------- ----------- End of year $28,254,417 $15,371,350 $64,528,774 =========== =========== ===========
SA-123 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. GOVERNMENT HIGH SECURITIES FUND YIELD FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $5,341,135 $74,933 Net realized gain (loss) on security transactions (220,866) (9,775) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 11,610,910 (69,894) -------------- ------------ Net increase (decrease) in net assets resulting from operations 16,731,179 (4,736) -------------- ------------ UNIT TRANSACTIONS: Purchases 1,674,995 -- Net transfers (17,003,005) (107,462) Surrenders for benefit payments and fees (38,434,446) (248,468) Other transactions (796) (1) Death benefits (4,832,226) (10,111) Net annuity transactions 3,706 -- -------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (58,591,772) (366,042) -------------- ------------ Net increase (decrease) in net assets (41,860,593) (370,778) NET ASSETS: Beginning of year 309,357,797 1,540,721 -------------- ------------ End of year $267,497,204 $1,169,943 ============== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-124 -------------------------------------------------------------------------------
INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. INTERNATIONAL MID CAP CORE SMALL CAP CAPITAL GROWTH FUND EQUITY FUND EQUITY FUND DEVELOPMENT FUND SUB-ACCOUNT (2) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(131,525) $(1,182,783) $(828,829) $(88,367) Net realized gain (loss) on security transactions (998,585) 1,102,423 846,582 (153,181) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (4,563,081) (5,344,293) (1,049,193) (433,902) -------------- -------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations (5,693,191) (5,424,653) (1,031,440) (675,450) -------------- -------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 1,383,687 351,389 750,697 69,607 Net transfers 388,523 (3,679,969) 2,580,208 2,326,958 Surrenders for benefit payments and fees (7,323,586) (13,812,835) (6,008,544) (396,195) Other transactions (1,539) (1,432) (1,935) (1) Death benefits (921,652) (1,141,586) (597,607) (1,002) Net annuity transactions (63) (15,934) (1,250) -- -------------- -------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (6,474,630) (18,300,367) (3,278,431) 1,999,367 -------------- -------------- ------------- ------------ Net increase (decrease) in net assets (12,167,821) (23,725,020) (4,309,871) 1,323,917 NET ASSETS: Beginning of year 76,122,223 85,178,146 47,687,718 2,681,921 -------------- -------------- ------------- ------------ End of year $63,954,402 $61,453,126 $43,377,847 $4,005,838 ============== ============== ============= ============ INVESCO V.I. BALANCED RISK INVESCO V.I. AMERICAN CENTURY VP ALLOCATION DIVIDEND MID CAP FUND GROWTH FUND VALUE FUND SUB-ACCOUNT (3)(4) SUB-ACCOUNT (3)(5) SUB-ACCOUNT (6) -------------------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $18,508 $13 $65 Net realized gain (loss) on security transactions (84,718) (708) (5) Net realized gain on distributions 187,141 -- -- Net unrealized appreciation (depreciation) of investments during the year (7,916) 596 586 ------------ ------- --------- Net increase (decrease) in net assets resulting from operations 113,015 (99) 646 ------------ ------- --------- UNIT TRANSACTIONS: Purchases 136,886 -- 11,037 Net transfers 1,375,161 -- 7,842 Surrenders for benefit payments and fees (96,931) (324) -- Other transactions -- -- (1) Death benefits (362) -- -- Net annuity transactions -- -- -- ------------ ------- --------- Net increase (decrease) in net assets resulting from unit transactions 1,414,754 (324) 18,878 ------------ ------- --------- Net increase (decrease) in net assets 1,527,769 (423) 19,524 NET ASSETS: Beginning of year 1,289,207 6,102 -- ------------ ------- --------- End of year $2,816,976 $5,679 $19,524 ============ ======= =========
(2) Effective April 29, 2011 Invesco Van Kampen V.I. International Growth Equity Fund merged with Invesco V.I. International Growth Fund. (3) Funded as of April 29, 2011. (4) Effective April 29, 2011 Invesco V.I. Global Multi-Asset Fund merged with Invesco V.I. Balanced Risk Allocation Fund. (5) Effective April 29, 2011 Invesco V.I. Select Dimensions Dividend Growth Portfolio merged with Invesco V.I. Dividend Growth Fund. (6) Funded as of July 22, 2011. SA-125 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS GLOBAL GLOBAL GROWTH AND BOND FUND INCOME FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $829,857 $820,764 Net realized gain (loss) on security transactions 464,358 (3,103,267) Net realized gain on distributions 464,806 -- Net unrealized appreciation (depreciation) of investments during the year 435,991 (4,397,884) -------------- -------------- Net increase (decrease) in net assets resulting from operations 2,195,012 (6,680,387) -------------- -------------- UNIT TRANSACTIONS: Purchases 710,626 525,235 Net transfers 8,236,418 (7,213,977) Surrenders for benefit payments and fees (12,878,722) (10,830,671) Other transactions 314 (709) Death benefits (1,226,373) (1,140,896) Net annuity transactions 18,446 19,034 -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (5,139,291) (18,641,984) -------------- -------------- Net increase (decrease) in net assets (2,944,279) (25,322,371) NET ASSETS: Beginning of year 88,889,078 114,813,629 -------------- -------------- End of year $85,944,799 $89,491,258 ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-126 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS BLUE CHIP AMERICAN FUNDS ASSET INCOME AND AMERICAN FUNDS GLOBAL ALLOCATION FUND GROWTH FUND BOND FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(76,277) $(217,570) $3,146,910 $(488,377) Net realized gain (loss) on security transactions 3,955,062 (637,077) (1,209,467) 1,867,745 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (4,878,924) (2,385,353) 10,061,982 (10,730,586) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations (1,000,139) (3,240,000) 11,999,425 (9,351,218) ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 1,617,507 679,092 1,696,936 376,732 Net transfers (1,729,838) (2,141,536) (4,546,571) (4,508,058) Surrenders for benefit payments and fees (45,803,030) (19,030,212) (50,450,342) (13,372,100) Other transactions 7,725 (1,616) (758) (2,551) Death benefits (6,478,307) (2,311,940) (4,477,468) (1,527,161) Net annuity transactions (52,240) 12,605 30,378 (7,210) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (52,438,183) (22,793,607) (57,747,825) (19,040,348) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (53,438,322) (26,033,607) (45,748,400) (28,391,566) NET ASSETS: Beginning of year 313,497,451 139,307,202 317,448,285 105,252,865 ------------ ------------ ------------ ------------ End of year $260,059,129 $113,273,595 $271,699,885 $76,861,299 ============ ============ ============ ============ AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH FUND GROWTH-INCOME FUND INTERNATIONAL FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(9,207,519) $(2,087,420) $(209,219) Net realized gain (loss) on security transactions (999,646) (7,332,087) (1,879,646) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (30,497,439) (13,047,311) (29,374,026) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (40,704,604) (22,466,818) (31,462,891) ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 3,482,704 2,798,968 971,889 Net transfers (38,084,913) (23,089,069) (5,093,693) Surrenders for benefit payments and fees (112,437,193) (92,344,666) (27,153,072) Other transactions (13,904) (2,499) (9,981) Death benefits (11,507,422) (11,827,225) (3,449,145) Net annuity transactions (95,865) 10,590 23,441 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (158,656,593) (124,453,901) (34,710,561) ------------- ------------- ------------- Net increase (decrease) in net assets (199,361,197) (146,920,719) (66,173,452) NET ASSETS: Beginning of year 854,449,095 745,868,391 235,548,420 ------------- ------------- ------------- End of year $655,087,898 $598,947,672 $169,374,968 ============= ============= =============
SA-127 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL NEW WORLD FUND CAPITALIZATION FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(224,231) $(373,718) Net realized gain (loss) on security transactions 973,623 (705,306) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (16,353,594) (15,960,813) -------------- -------------- Net increase (decrease) in net assets resulting from operations (15,604,202) (17,039,837) -------------- -------------- UNIT TRANSACTIONS: Purchases 676,308 396,153 Net transfers (9,353,290) (7,874,383) Surrenders for benefit payments and fees (14,817,526) (11,694,223) Other transactions 6,754 1,003 Death benefits (1,368,981) (1,101,463) Net annuity transactions 12,402 15,312 -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (24,844,333) (20,257,601) -------------- -------------- Net increase (decrease) in net assets (40,448,535) (37,297,438) NET ASSETS: Beginning of year 116,824,292 97,862,424 -------------- -------------- End of year $76,375,757 $60,564,986 ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-128 -------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING CAPITAL STRATEGIC CAPITAL SELECT CAPITAL SPECIAL CAPITAL TOTAL ALLOCATION EQUITY VIF EQUITY VIF OPPORTUNITIES VIF RETURN BOND VIF SUB-ACCOUNT (7) SUB-ACCOUNT (8) SUB-ACCOUNT (9) SUB-ACCOUNT (10) --------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(42) $(8) $(35,275) $20,292 Net realized gain (loss) on security transactions 80 51 25,041 (217) Net realized gain on distributions -- -- 81,911 35,711 Net unrealized appreciation (depreciation) of investments during the year (351) (153) (185,422) (11,864) ------- ------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (313) (110) (113,745) 43,922 ------- ------- ------------ ------------ UNIT TRANSACTIONS: Purchases -- -- 3,159 104 Net transfers 188 -- (64,798) 19,752 Surrenders for benefit payments and fees (450) (11) (49,358) (31,761) Other transactions -- 1 (1) 101 Death benefits -- (244) (184) (4,419) Net annuity transactions -- -- -- -- ------- ------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (262) (254) (111,182) (16,223) ------- ------- ------------ ------------ Net increase (decrease) in net assets (575) (364) (224,927) 27,699 NET ASSETS: Beginning of year 4,193 2,564 2,299,638 988,122 ------- ------- ------------ ------------ End of year $3,618 $2,200 $2,074,711 $1,015,821 ======= ======= ============ ============ COLUMBIA VARIABLE WELLS FARGO PORTFOLIO -- ADVANTAGE VT FIDELITY VIP SMALL COMPANY OMEGA GROWTH GROWTH FUND GROWTH FUND PORTFOLIO SUB-ACCOUNT (11) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(157,869) $(10,863) $(14,704) Net realized gain (loss) on security transactions (155,359) (2,587) 7,747 Net realized gain on distributions -- 5,631 3,044 Net unrealized appreciation (depreciation) of investments during the year (166,610) (53,252) (36,532) ------------- ---------- ------------ Net increase (decrease) in net assets resulting from operations (479,838) (61,071) (40,445) ------------- ---------- ------------ UNIT TRANSACTIONS: Purchases 6,068 -- 65,986 Net transfers (741,107) 100,512 364,318 Surrenders for benefit payments and fees (1,172,757) (6,188) (54,021) Other transactions 116 (1) 1 Death benefits (98,730) (18,799) (5,560) Net annuity transactions -- -- -- ------------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions (2,006,410) 75,524 370,724 ------------- ---------- ------------ Net increase (decrease) in net assets (2,486,248) 14,453 330,279 NET ASSETS: Beginning of year 8,655,002 576,987 688,687 ------------- ---------- ------------ End of year $6,168,754 $591,440 $1,018,966 ============= ========== ============
(7) Formerly BB&T Capital Manager Equity VIF. Change effective February 1, 2011. (8) Formerly BB&T Select Equity VIF. Change effective February 1, 2011. (9) Formerly BB&T Special Opportunities Equity VIF. Change effective February 1, 2011. (10) Formerly BB&T Total Return Bond VIF. Change effective February 1, 2011. (11) Formerly Columbia Small Company Growth VS Fund. Change effective May 2, 2011. SA-129 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
FIDELITY VIP FIDELITY VIP CONTRAFUND(R) MID CAP PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(207,284) $(279,663) Net realized gain (loss) on security transactions 124,029 253,646 Net realized gain on distributions -- 30,004 Net unrealized appreciation (depreciation) of investments during the year (967,339) (2,163,136) ----------- ----------- Net increase (decrease) in net assets resulting from operations (1,050,594) (2,159,149) ----------- ----------- UNIT TRANSACTIONS: Purchases 1,393,528 564,960 Net transfers 1,018,672 21,629 Surrenders for benefit payments and fees (988,545) (742,326) Other transactions (231) (9) Death benefits (132,758) (127,808) Net annuity transactions 83,560 21,727 ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions 1,374,226 (261,827) ----------- ----------- Net increase (decrease) in net assets 323,632 (2,420,976) NET ASSETS: Beginning of year 21,142,827 18,010,375 ----------- ----------- End of year $21,466,459 $15,589,399 =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-130 -------------------------------------------------------------------------------
FIDELITY VIP FRANKLIN FIDELITY VIP DYNAMIC CAPITAL FIDELITY VIP RISING VALUE STRATEGIES APPRECIATION STRATEGIC INCOME DIVIDENDS PORTFOLIO PORTFOLIO PORTFOLIO SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(9,888) $(3,636) $974 $(622,921) Net realized gain (loss) on security transactions 2,063 12,724 5 7,164 Net realized gain on distributions -- -- 497 -- Net unrealized appreciation (depreciation) of investments during the year (149,608) (24,061) (861) 12,966,134 ---------- -------- ------- ------------ Net increase (decrease) in net assets resulting from operations (157,433) (14,973) 615 12,350,377 ---------- -------- ------- ------------ UNIT TRANSACTIONS: Purchases 29,147 3,157 8,556 1,287,995 Net transfers 225,190 (1,793) 4,093 (1,600,690) Surrenders for benefit payments and fees (98,848) (11,417) (95) (34,016,469) Other transactions (102) -- -- (1,458) Death benefits -- -- -- (4,619,025) Net annuity transactions 27,501 -- -- (6,564) ---------- -------- ------- ------------ Net increase (decrease) in net assets resulting from unit transactions 182,888 (10,053) 12,554 (38,956,211) ---------- -------- ------- ------------ Net increase (decrease) in net assets 25,455 (25,026) 13,169 (26,605,834) NET ASSETS: Beginning of year 1,220,708 196,373 13,216 314,415,455 ---------- -------- ------- ------------ End of year $1,246,163 $171,347 $26,385 $287,809,621 ========== ======== ======= ============ FRANKLIN FRANKLIN FRANKLIN LARGE CAP GLOBAL INCOME GROWTH REAL ESTATE SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $38,569,431 $(575,970) $80,566 Net realized gain (loss) on security transactions (12,111,090) 2,401 (51,508) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (19,047,999) (1,059,162) (118,027) ------------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 7,410,342 (1,632,731) (88,969) ------------- ----------- ---------- UNIT TRANSACTIONS: Purchases 4,734,936 231,201 293 Net transfers (18,707,066) (909,086) (80,655) Surrenders for benefit payments and fees (120,447,779) (8,049,367) (137,129) Other transactions 7,809 927 (1) Death benefits (18,636,351) (918,366) (14,759) Net annuity transactions (50,285) (1,356) (495) ------------- ----------- ---------- Net increase (decrease) in net assets resulting from unit transactions (153,098,736) (9,646,047) (232,746) ------------- ----------- ---------- Net increase (decrease) in net assets (145,688,394) (11,278,778) (321,715) NET ASSETS: Beginning of year 1,012,162,002 55,031,262 1,493,387 ------------- ----------- ---------- End of year $866,473,608 $43,752,484 $1,171,672 ============= =========== ==========
SA-131 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL-MID CAP SMALL CAP GROWTH VALUE SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,709,155) $(190,149) Net realized gain (loss) on security transactions 2,238,172 303,628 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (6,349,570) (1,119,537) -------------- ------------- Net increase (decrease) in net assets resulting from operations (5,820,553) (1,006,058) -------------- ------------- UNIT TRANSACTIONS: Purchases 452,631 284,624 Net transfers (3,129,447) 273,795 Surrenders for benefit payments and fees (14,323,416) (1,810,060) Other transactions 896 (579) Death benefits (1,204,959) (178,464) Net annuity transactions 10,036 4,013 -------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (18,194,259) (1,426,671) -------------- ------------- Net increase (decrease) in net assets (24,014,812) (2,432,729) NET ASSETS: Beginning of year 103,713,304 18,685,692 -------------- ------------- End of year $79,698,492 $16,252,963 ============== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-132 -------------------------------------------------------------------------------
FRANKLIN TEMPLETON STRATEGIC DEVELOPING TEMPLETON INCOME MUTUAL SHARES MARKETS FOREIGN SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $12,258,298 $2,417,660 $(475,763) $(145,134) Net realized gain (loss) on security transactions 2,255,145 (8,728,325) 885,609 (982,795) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (11,659,183) (5,091,935) (13,379,910) (17,388,890) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,854,260 (11,402,600) (12,970,064) (18,516,819) ------------- ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 2,066,382 3,321,603 629,550 1,362,113 Net transfers 8,766,719 (19,057,148) (9,729,588) 1,812,161 Surrenders for benefit payments and fees (42,474,744) (59,294,178) (8,680,463) (22,760,468) Other transactions 228 1,558 615 444 Death benefits (4,926,923) (8,677,302) (694,420) (2,884,950) Net annuity transactions 157,737 68,543 (4,083) (11,879) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (36,410,601) (83,636,924) (18,478,389) (22,482,579) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets (33,556,341) (95,039,524) (31,448,453) (40,999,398) NET ASSETS: Beginning of year 290,735,591 492,841,333 87,667,747 180,227,519 ------------- ------------- ------------- ------------- End of year $257,179,250 $397,801,809 $56,219,294 $139,228,121 ============= ============= ============= ============= FRANKLIN TEMPLETON MUTUAL FLEX CAP GROWTH GLOBAL DISCOVERY GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,120,416) $605,432 $(393,686) Net realized gain (loss) on security transactions (14,790,669) (490,685) 369,724 Net realized gain on distributions -- 2,939,785 -- Net unrealized appreciation (depreciation) of investments during the year (7,063,973) (9,408,688) (1,302,302) ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations (22,975,058) (6,354,156) (1,326,264) ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 2,085,092 595,793 163,684 Net transfers (12,691,465) (5,093,854) (295,778) Surrenders for benefit payments and fees (37,814,089) (16,485,363) (2,186,470) Other transactions (196) 1,652 (489) Death benefits (5,686,304) (1,998,048) (652,974) Net annuity transactions (18,631) 183,896 (1,395) ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (54,125,593) (22,795,924) (2,973,422) ------------- ------------- ------------ Net increase (decrease) in net assets (77,100,651) (29,150,080) (4,299,686) NET ASSETS: Beginning of year 318,345,347 155,194,908 23,893,700 ------------- ------------- ------------ End of year $241,244,696 $126,044,828 $19,594,014 ============= ============= ============
SA-133 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
FRANKLIN LARGE CAP TEMPLETON VALUE GLOBAL BOND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(47,815) $783,788 Net realized gain (loss) on security transactions 88,250 (24,575) Net realized gain on distributions -- 132,044 Net unrealized appreciation (depreciation) of investments during the year (683,984) (1,532,738) ------------- ------------- Net increase (decrease) in net assets resulting from operations (643,549) (641,481) ------------- ------------- UNIT TRANSACTIONS: Purchases 17,768 1,344,908 Net transfers 394,200 1,522,310 Surrenders for benefit payments and fees (1,316,584) (1,285,791) Other transactions 411 1,319 Death benefits (119,172) (151,398) Net annuity transactions -- 6,179 ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (1,023,377) 1,437,527 ------------- ------------- Net increase (decrease) in net assets (1,666,926) 796,046 NET ASSETS: Beginning of year 9,468,209 19,526,811 ------------- ------------- End of year $7,801,283 $20,322,857 ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-134 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD TOTAL CAPITAL DIVIDEND ADVISERS RETURN BOND APPRECIATION AND GROWTH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(82,596) $(2,473,435) $(1,308,733) $436,524 Net realized gain (loss) on security transactions (353,602) 350,705 821,014 902,334 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 393,148 10,850,571 (19,706,869) (1,792,060) ------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations (43,050) 8,727,841 (20,194,588) (453,202) ------------- -------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 201,095 7,270,085 5,637,508 4,582,422 Net transfers 233,157 2,601,967 5,887,448 1,211,290 Surrenders for benefit payments and fees (2,321,444) (14,434,836) (11,997,133) (8,478,282) Other transactions 31 (607) 7,863 5,823 Death benefits (310,426) (1,700,521) (1,820,649) (1,064,322) Net annuity transactions 72,858 135,649 128,833 (2,487) ------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (2,124,729) (6,128,263) (2,156,130) (3,745,556) ------------- -------------- -------------- -------------- Net increase (decrease) in net assets (2,167,779) 2,599,578 (22,350,718) (4,198,758) NET ASSETS: Beginning of year 17,960,669 163,828,468 162,240,133 109,673,027 ------------- -------------- -------------- -------------- End of year $15,792,890 $166,428,046 $139,889,415 $105,474,269 ============= ============== ============== ============== HARTFORD HARTFORD HARTFORD GLOBAL RESEARCH HEALTHCARE GLOBAL GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (12) SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(7,344) $(4,127) $(10,758) Net realized gain (loss) on security transactions 7,341 7,563 (88,045) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (45,150) 18,808 (9,002) ----------- ---------- ----------- Net increase (decrease) in net assets resulting from operations (45,153) 22,244 (107,805) ----------- ---------- ----------- UNIT TRANSACTIONS: Purchases 2,000 -- 14,401 Net transfers (37,249) 1,282 7,461 Surrenders for benefit payments and fees (33,236) (75,733) (197,630) Other transactions -- 1 (587) Death benefits -- -- (3,995) Net annuity transactions -- -- -- ----------- ---------- ----------- Net increase (decrease) in net assets resulting from unit transactions (68,485) (74,450) (180,350) ----------- ---------- ----------- Net increase (decrease) in net assets (113,638) (52,206) (288,155) NET ASSETS: Beginning of year 472,123 310,998 847,930 ----------- ---------- ----------- End of year $358,485 $258,792 $559,775 =========== ========== ===========
(12) Formerly Hartford Global Health HLS Fund. Change effective August 5, 2011. SA-135 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
HARTFORD DISCIPLINED HARTFORD EQUITY GROWTH HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(36,533) $(14,173) Net realized gain (loss) on security transactions 122,554 22,772 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (131,272) (125,680) ----------- ---------- Net increase (decrease) in net assets resulting from operations (45,251) (117,081) ----------- ---------- UNIT TRANSACTIONS: Purchases 1,002,886 58,835 Net transfers 243,030 76,356 Surrenders for benefit payments and fees (596,710) (26,096) Other transactions 175 38 Death benefits (210,208) -- Net annuity transactions 3,656 -- ----------- ---------- Net increase (decrease) in net assets resulting from unit transactions 442,829 109,133 ----------- ---------- Net increase (decrease) in net assets 397,578 (7,948) NET ASSETS: Beginning of year 11,959,231 1,069,501 ----------- ---------- End of year $12,356,809 $1,061,553 =========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-136 -------------------------------------------------------------------------------
HARTFORD HARTFORD GROWTH HARTFORD HARTFORD INTERNATIONAL OPPORTUNITIES HIGH YIELD INDEX OPPORTUNITIES HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(464,309) $575,439 $2,384 $(149,570) Net realized gain (loss) on security transactions 571,279 38,223 (51,599) 111,256 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (3,184,910) (423,245) 67,290 (1,361,993) ----------- ---------- -------- ---------- Net increase (decrease) in net assets resulting from operations (3,077,940) 190,417 18,075 (1,400,307) ----------- ---------- -------- ---------- UNIT TRANSACTIONS: Purchases 1,920,573 996,566 188,000 517,560 Net transfers 128,179 1,341,978 (9,474) 99,594 Surrenders for benefit payments and fees (1,487,604) (373,000) (90,090) (937,409) Other transactions 3,936 8 -- 17 Death benefits (368,019) (123,556) (11,997) (163,198) Net annuity transactions -- -- -- 18,385 ----------- ---------- -------- ---------- Net increase (decrease) in net assets resulting from unit transactions 197,065 1,841,996 76,439 (465,051) ----------- ---------- -------- ---------- Net increase (decrease) in net assets (2,880,875) 2,032,413 94,514 (1,865,358) NET ASSETS: Beginning of year 31,234,642 6,324,090 390,750 9,734,896 ----------- ---------- -------- ---------- End of year $28,353,767 $8,356,503 $485,264 $7,869,538 =========== ========== ======== ========== HARTFORD SMALL/MID CAP HARTFORD HARTFORD EQUITY MIDCAP MIDCAP VALUE HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(44,206) $(19,696) $(6,351) Net realized gain (loss) on security transactions 35,873 39,081 16,346 Net realized gain on distributions 194,577 -- -- Net unrealized appreciation (depreciation) of investments during the year (284,876) (150,826) (42,073) ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations (98,632) (131,441) (32,078) ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 32,731 5,346 687 Net transfers 193,622 (62,440) 54,016 Surrenders for benefit payments and fees (145,939) (436,136) (152,545) Other transactions 157 (688) -- Death benefits (129,039) (24,324) (3,737) Net annuity transactions -- 18,285 -- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (48,468) (499,957) (101,579) ---------- ---------- --------- Net increase (decrease) in net assets (147,100) (631,398) (133,657) NET ASSETS: Beginning of year 2,495,390 1,883,647 391,891 ---------- ---------- --------- End of year $2,348,290 $1,252,249 $258,234 ========== ========== =========
SA-137 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
HARTFORD HARTFORD MONEY MARKET SMALL COMPANY HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(4,797,173) $(96,646) Net realized gain (loss) on security transactions -- 80,581 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year -- (253,973) --------------- ------------ Net increase (decrease) in net assets resulting from operations (4,797,173) (270,038) --------------- ------------ UNIT TRANSACTIONS: Purchases 9,574,912 35,421 Net transfers 138,695,881 194,977 Surrenders for benefit payments and fees (151,051,990) (846,225) Other transactions (5,352) (349) Death benefits (7,877,901) (75,330) Net annuity transactions (14,799) 10,143 --------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (10,679,249) (681,363) --------------- ------------ Net increase (decrease) in net assets (15,476,422) (951,401) NET ASSETS: Beginning of year 267,244,595 5,273,480 --------------- ------------ End of year $251,768,173 $4,322,079 =============== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-138 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD SMALLCAP GROWTH STOCK SECURITIES VALUE HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(25,172) $(104,070) $59,063 $2,953 Net realized gain (loss) on security transactions 20,323 (484,761) (98,731) 15,480 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (105,779) 250,772 260,629 (61,754) ------------ ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations (110,628) (338,059) 220,961 (43,321) ------------ ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 38,781 86,704 773,617 56,160 Net transfers 1,262,350 32,799 (1,022,303) (23,035) Surrenders for benefit payments and fees (74,756) (2,018,812) (355,386) (62,456) Other transactions (126) (1,741) 394 53 Death benefits (15,375) (260,450) (153,174) (8,814) Net annuity transactions 8,257 17,405 -- (726) ------------ ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions 1,219,131 (2,144,095) (756,852) (38,818) ------------ ------------- ------------- ------------ Net increase (decrease) in net assets 1,108,503 (2,482,154) (535,891) (82,139) NET ASSETS: Beginning of year 1,013,954 12,723,348 9,334,829 1,422,123 ------------ ------------- ------------- ------------ End of year $2,122,457 $10,241,194 $8,798,938 $1,339,984 ============ ============= ============= ============ AMERICAN FUNDS BLUE CHIP AMERICAN FUNDS INCOME AND AMERICAN FUNDS ASSET ALLOCATION GROWTH BOND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(39,789) $(100,773) $390,025 Net realized gain (loss) on security transactions 82,620 16,401 99,790 Net realized gain on distributions 995 -- 10,315 Net unrealized appreciation (depreciation) of investments during the year (140,563) (99,020) 948,528 ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations (96,737) (183,392) 1,448,658 ------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 253,530 99,178 804,116 Net transfers 1,774,298 (37,520) (1,123,524) Surrenders for benefit payments and fees (669,773) (227,006) (1,708,089) Other transactions 1 62 22 Death benefits (17,323) (20,895) (534,490) Net annuity transactions -- -- 37,023 ------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions 1,340,733 (186,181) (2,524,942) ------------- ------------ ------------- Net increase (decrease) in net assets 1,243,996 (369,573) (1,076,284) NET ASSETS: Beginning of year 12,155,873 6,150,898 33,538,046 ------------- ------------ ------------- End of year $13,399,869 $5,781,325 $32,461,762 ============= ============ =============
SA-139 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH GLOBAL BOND AND INCOME HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $22,364 $78,326 Net realized gain (loss) on security transactions 24,527 284,693 Net realized gain on distributions 32,912 -- Net unrealized appreciation (depreciation) of investments during the year 39,487 (1,320,251) ------------ ------------- Net increase (decrease) in net assets resulting from operations 119,290 (957,232) ------------ ------------- UNIT TRANSACTIONS: Purchases 41,358 110,311 Net transfers 151,805 (568,929) Surrenders for benefit payments and fees (246,013) (527,416) Other transactions (255) 28 Death benefits (61,797) (192,493) Net annuity transactions -- -- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (114,902) (1,178,499) ------------ ------------- Net increase (decrease) in net assets 4,388 (2,135,731) NET ASSETS: Beginning of year 4,696,215 14,565,144 ------------ ------------- End of year $4,700,603 $12,429,413 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-140 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH CAPITALIZATION GROWTH GROWTH-INCOME HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(22,162) $(31,369) $(888,355) $(487,869) Net realized gain (loss) on security transactions 110,022 111,971 797,104 244,017 Net realized gain on distributions -- 55,196 -- -- Net unrealized appreciation (depreciation) of investments during the year (522,744) (2,305,763) (3,191,048) (917,323) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (434,884) (2,169,965) (3,282,299) (1,161,175) ------------ ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 56,823 254,606 2,812,844 1,047,655 Net transfers 150,665 38,407 (398,321) (452,215) Surrenders for benefit payments and fees (232,704) (411,821) (2,784,888) (1,356,543) Other transactions (89) (96) (1,385) (225) Death benefits (44,974) (104,661) (537,796) (257,375) Net annuity transactions 26,646 29,703 77,720 25,766 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (43,633) (193,862) (831,826) (992,937) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets (478,517) (2,363,827) (4,114,125) (2,154,112) NET ASSETS: Beginning of year 4,200,789 10,690,711 56,818,498 30,882,153 ------------ ------------- ------------- ------------- End of year $3,722,272 $8,326,884 $52,704,373 $28,728,041 ============ ============= ============= ============= HARTFORD AMERICAN FUNDS AMERICAN FUNDS PORTFOLIO INTERNATIONAL NEW WORLD DIVERSIFIER HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (13) ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $54,414 $(43,643) $14,460 Net realized gain (loss) on security transactions 80,816 182,817 (437) Net realized gain on distributions -- -- 12,929 Net unrealized appreciation (depreciation) of investments during the year (6,056,853) (1,753,205) (140,613) ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations (5,921,623) (1,614,031) (113,661) ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 2,161,638 747,829 5,808,081 Net transfers 4,614,512 (1,002,395) 1,776,189 Surrenders for benefit payments and fees (1,791,341) (353,889) (47,150) Other transactions 1,999 388 (618) Death benefits (440,201) (96,830) -- Net annuity transactions 18,130 -- -- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions 4,564,737 (704,897) 7,536,502 ------------- ------------- ------------ Net increase (decrease) in net assets (1,356,886) (2,318,928) 7,422,841 NET ASSETS: Beginning of year 35,916,769 10,192,701 -- ------------- ------------- ------------ End of year $34,559,883 $7,873,773 $7,422,841 ============= ============= ============
(13) Funded as of June 22, 2011. SA-141 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA INCOME DIVIDEND EQUITY FUND CAPTURE FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $31,721 $126,496 Net realized gain (loss) on security transactions (623) (117,761) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 123,050 338,448 ------------ ------------ Net increase (decrease) in net assets resulting from operations 154,148 347,183 ------------ ------------ UNIT TRANSACTIONS: Purchases 127,215 66,454 Net transfers 25,082 464,089 Surrenders for benefit payments and fees (345,851) (824,992) Other transactions (35) (120) Death benefits (192,740) (222,447) Net annuity transactions -- -- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (386,329) (517,016) ------------ ------------ Net increase (decrease) in net assets (232,181) (169,833) NET ASSETS: Beginning of year 2,841,022 6,813,766 ------------ ------------ End of year $2,608,841 $6,643,933 ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-142 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA MID CORP NEW ROTATING GROWTH FUND AMERICA FUND ECONOMY FUND MARKETS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(33,653) $(55,782) $(60,337) $(21,424) Net realized gain (loss) on security transactions 7,575 80,605 (156,961) (26,813) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (80,806) (191,251) (304,154) 118,741 ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations (106,884) (166,428) (521,452) 70,504 ------------ ------------ ------------- ------------ UNIT TRANSACTIONS: Purchases 97,927 74,991 30,700 8,051 Net transfers 117,371 (176,219) (125,318) (20,685) Surrenders for benefit payments and fees (249,408) (509,944) (376,703) (125,042) Other transactions (699) (186) (45) 3 Death benefits (123,061) (67,513) (39,863) (1,463) Net annuity transactions -- -- -- -- ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (157,870) (678,871) (511,229) (139,136) ------------ ------------ ------------- ------------ Net increase (decrease) in net assets (264,754) (845,299) (1,032,681) (68,632) NET ASSETS: Beginning of year 2,648,146 4,680,851 4,179,212 1,463,766 ------------ ------------ ------------- ------------ End of year $2,383,392 $3,835,552 $3,146,531 $1,395,134 ============ ============ ============= ============ HUNTINGTON VA HUNTINGTON VA INTERNATIONAL HUNTINGTON VA MORTGAGE EQUITY FUND MACRO 100 FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(22,218) $(12,097) $13,835 Net realized gain (loss) on security transactions 2,835 (34,060) 19,517 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (595,499) 12,562 86,664 ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (614,882) (33,595) 120,016 ------------- ------------ ------------ UNIT TRANSACTIONS: Purchases 144,031 121,044 90,446 Net transfers 27,833 (1,928) 201,111 Surrenders for benefit payments and fees (448,232) (141,011) (305,016) Other transactions (52) (15) -- Death benefits (225,765) (9,916) (138,680) Net annuity transactions -- -- -- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (502,185) (31,826) (152,139) ------------- ------------ ------------ Net increase (decrease) in net assets (1,117,067) (65,421) (32,123) NET ASSETS: Beginning of year 5,294,304 1,372,231 3,164,414 ------------- ------------ ------------ End of year $4,177,237 $1,306,810 $3,132,291 ============= ============ ============
SA-143 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
LORD ABBETT HUNTINGTON VA FUNDAMENTAL SITUS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(99,476) $(114) Net realized gain (loss) on security transactions 124,392 2,678 Net realized gain on distributions -- 25,365 Net unrealized appreciation (depreciation) of investments during the year (143,908) 8,475 ------------ ---------- Net increase (decrease) in net assets resulting from operations (118,992) 36,404 ------------ ---------- UNIT TRANSACTIONS: Purchases 66,125 716,082 Net transfers (90,904) 50,477 Surrenders for benefit payments and fees (670,160) (1,944) Other transactions (67) (85) Death benefits (85,498) -- Net annuity transactions -- -- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions (780,504) 764,530 ------------ ---------- Net increase (decrease) in net assets (899,496) 800,934 NET ASSETS: Beginning of year 6,324,808 46,909 ------------ ---------- End of year $5,425,312 $847,843 ============ ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-144 -------------------------------------------------------------------------------
LORD ABBETT LORD ABBETT LORD ABBETT GROWTH AND CAPITAL STRUCTURE BOND DEBENTURE INCOME MFS(R) CORE FUND FUND FUND EQUITY SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $32,546 $549,638 $(24,074) $(58,315) Net realized gain (loss) on security transactions 1,943 51,934 42,216 (250,183) Net realized gain on distributions -- 96,935 -- -- Net unrealized appreciation (depreciation) of investments during the year (86,859) (335,431) (233,567) 126,380 ------------ ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations (52,370) 363,076 (215,425) (182,118) ------------ ------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 145,889 153,883 2,299 26,678 Net transfers 356,941 (306,546) 18,248 454,976 Surrenders for benefit payments and fees (120,347) (727,678) (142,542) (1,207,141) Other transactions 1 792 -- 711 Death benefits (17,768) (226,326) -- (284,455) Net annuity transactions -- -- -- (84,868) ------------ ------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions 364,716 (1,105,875) (121,995) (1,094,099) ------------ ------------- ------------ ------------- Net increase (decrease) in net assets 312,346 (742,799) (337,420) (1,276,217) NET ASSETS: Beginning of year 2,149,836 14,179,268 3,003,789 7,183,207 ------------ ------------- ------------ ------------- End of year $2,462,182 $13,436,469 $2,666,369 $5,906,990 ============ ============= ============ ============= MFS(R) GROWTH MFS(R) GLOBAL MFS(R) HIGH SERIES EQUITY SERIES INCOME SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(316,942) $(71,227) $5,318,926 Net realized gain (loss) on security transactions 526,888 204,301 1,789,105 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (620,338) (566,898) (5,309,560) ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations (410,392) (433,824) 1,798,471 ------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 139,844 38,885 291,063 Net transfers 1,907,036 919,506 98,458 Surrenders for benefit payments and fees (3,117,796) (1,439,601) (13,480,764) Other transactions (3,329) (2,963) (526) Death benefits (274,788) (184,590) (1,163,732) Net annuity transactions 26,835 (730) 16,739 ------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (1,322,198) (669,493) (14,238,762) ------------- ------------- -------------- Net increase (decrease) in net assets (1,732,590) (1,103,317) (12,440,291) NET ASSETS: Beginning of year 20,809,080 7,529,613 83,392,896 ------------- ------------- -------------- End of year $19,076,490 $6,426,296 $70,952,605 ============= ============= ==============
SA-145 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
MFS(R) INVESTORS GROWTH MFS(R) INVESTORS STOCK SERIES TRUST SERIES SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(153,885) $(1,036,028) Net realized gain (loss) on security transactions 81,479 1,120,160 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (24,719) (4,031,044) ----------- ------------ Net increase (decrease) in net assets resulting from operations (97,125) (3,946,912) ----------- ------------ UNIT TRANSACTIONS: Purchases 27,561 634,316 Net transfers 74,027 (3,174,143) Surrenders for benefit payments and fees (2,067,698) (15,408,386) Other transactions (681) 807 Death benefits (303,317) (2,110,791) Net annuity transactions 28,000 8,137 ----------- ------------ Net increase (decrease) in net assets resulting from unit transactions (2,242,108) (20,050,060) ----------- ------------ Net increase (decrease) in net assets (2,339,233) (23,996,972) NET ASSETS: Beginning of year 13,639,006 130,100,977 ----------- ------------ End of year $11,299,773 $106,104,005 =========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-146 -------------------------------------------------------------------------------
MFS(R) MID CAP MFS(R) NEW MFS(R) TOTAL MFS(R) VALUE GROWTH SERIES DISCOVERY SERIES RETURN SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(463,439) $(1,430,579) $3,073,081 $(291,904) Net realized gain (loss) on security transactions 380,325 3,034,372 (4,127,993) (61,366) Net realized gain on distributions -- 9,054,836 -- 356,636 Net unrealized appreciation (depreciation) of investments during the year (1,742,699) (18,563,194) 1,110,548 (1,639,593) ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations (1,825,813) (7,904,565) 55,636 (1,636,227) ------------ ------------ ------------- ------------ UNIT TRANSACTIONS: Purchases 138,174 312,553 2,313,175 1,636,417 Net transfers (2,199,212) (2,799,491) 3,554,526 2,479,869 Surrenders for benefit payments and fees (4,176,286) (10,625,916) (49,396,840) (10,673,234) Other transactions (733) (6,863) 5,449 (1,595) Death benefits (469,606) (1,497,120) (6,368,361) (1,062,493) Net annuity transactions 206 47,623 (81,106) 1,419 ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (6,707,457) (14,569,214) (49,973,157) (7,619,617) ------------ ------------ ------------- ------------ Net increase (decrease) in net assets (8,533,270) (22,473,779) (49,917,521) (9,255,844) NET ASSETS: Beginning of year 29,071,223 90,447,643 395,780,837 95,533,071 ------------ ------------ ------------- ------------ End of year $20,537,953 $67,973,864 $345,863,316 $86,277,227 ============ ============ ============= ============ MFS(R) RESEARCH MFS(R) RESEARCH MFS(R) RESEARCH BOND SERIES INTERNATIONAL SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $780,876 $46,064 $(49,790) Net realized gain (loss) on security transactions 435,886 (181,826) 173,681 Net realized gain on distributions 965,824 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,749,653 (2,641,415) (222,200) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 3,932,239 (2,777,177) (98,309) ----------- ----------- ----------- UNIT TRANSACTIONS: Purchases 2,575,667 102,726 38,882 Net transfers 11,082,290 1,173,778 412,635 Surrenders for benefit payments and fees (10,114,482) (2,246,084) (985,833) Other transactions (222) (370) (110) Death benefits (1,035,686) (296,352) (30,992) Net annuity transactions (2,946) (526) -- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions 2,504,621 (1,266,828) (565,418) ----------- ----------- ----------- Net increase (decrease) in net assets 6,436,860 (4,044,005) (663,727) NET ASSETS: Beginning of year 79,300,456 24,340,466 5,453,876 ----------- ----------- ----------- End of year $85,737,316 $20,296,461 $4,790,149 =========== =========== ===========
SA-147 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
BLACKROCK BLACKROCK GLOBAL GLOBAL ALLOCATION V.I. FUND OPPORTUNITIES V.I. FUND SUB-ACCOUNT (14) SUB-ACCOUNT -------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $378 $(363) Net realized gain (loss) on security transactions -- 1,568 Net realized gain on distributions 363 -- Net unrealized appreciation (depreciation) of investments during the year (601) (4,662) --------- --------- Net increase (decrease) in net assets resulting from operations 140 (3,457) --------- --------- UNIT TRANSACTIONS: Purchases 8,556 -- Net transfers 9,679 569 Surrenders for benefit payments and fees -- (7,696) Other transactions -- -- Death benefits -- -- Net annuity transactions -- -- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 18,235 (7,127) --------- --------- Net increase (decrease) in net assets 18,375 (10,584) NET ASSETS: Beginning of year -- 29,387 --------- --------- End of year $18,375 $18,803 ========= =========
(14) Funded as of August 5, 2011. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-148 -------------------------------------------------------------------------------
INVESCO BLACKROCK BLACKROCK UIF MID CAP VAN KAMPEN V.I. LARGE CAP EQUITY GROWTH MID CAP GROWTH V.I. FUND DIVIDEND V.I. FUND PORTFOLIO VALUE FUND SUB-ACCOUNT SUB-ACCOUNT (33) SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(5,271) $537 $(40,902) $(8,977) Net realized gain (loss) on security transactions 15,192 636 54,264 39,110 Net realized gain on distributions 983 683 1,214 -- Net unrealized appreciation (depreciation) of investments during the year (7,535) 2,410 (334,617) (44,625) ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 3,369 4,266 (320,041) (14,492) ---------- ---------- ------------ ----------- UNIT TRANSACTIONS: Purchases -- 114,734 17,754 2,118 Net transfers (4,703) 10,163 469,988 (148,946) Surrenders for benefit payments and fees (31,081) (14,144) (220,344) (29,919) Other transactions -- (2) (42) 5 Death benefits -- -- (23,606) (4,781) Net annuity transactions -- -- 28,174 -- ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from unit transactions (35,784) 110,751 271,924 (181,523) ---------- ---------- ------------ ----------- Net increase (decrease) in net assets (32,415) 115,017 (48,117) (196,015) NET ASSETS: Beginning of year 450,737 -- 2,711,084 939,652 ---------- ---------- ------------ ----------- End of year $418,322 $115,017 $2,662,967 $743,637 ========== ========== ============ =========== MORGAN STANLEY MORGAN STANLEY -- MORGAN STANLEY -- MULTI CAP MID CAP FOCUS GROWTH GROWTH GROWTH PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT (16) SUB-ACCOUNT (17) SUB-ACCOUNT ------------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(50) $(3,831) $(1,985) Net realized gain (loss) on security transactions 1,366 7,930 174 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (937) (21,896) (28,496) -------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 379 (17,797) (30,307) -------- ---------- ---------- UNIT TRANSACTIONS: Purchases -- 216 432 Net transfers -- (9,305) 163,528 Surrenders for benefit payments and fees -- (25,723) (9,114) Other transactions (55) -- (22) Death benefits (6,839) (6,863) (3,629) Net annuity transactions -- -- -- -------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions (6,894) (41,675) 151,195 -------- ---------- ---------- Net increase (decrease) in net assets (6,515) (59,472) 120,888 NET ASSETS: Beginning of year 6,515 221,757 23,302 -------- ---------- ---------- End of year $ -- $162,285 $144,190 ======== ========== ==========
(16) Not Funded as of December 31, 2011. (17) Formerly Morgan Stanley -- Capital Opportunities Portfolio. Change effective April 29, 2011. (33) Funded as of August 3, 2011. Formerly BlackRock Utilities and Telecommunications V.I. Fund. Change effective October 1, 2011. SA-149 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
MTB MANAGED MORGAN STANLEY -- ALLOCATION FLEXIBLE INCOME FUND -- MODERATE PORTFOLIO GROWTH II SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $2,007 $80 Net realized gain (loss) on security transactions 57 24 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (635) (1,230) --------- --------- Net increase (decrease) in net assets resulting from operations 1,429 (1,126) --------- --------- UNIT TRANSACTIONS: Purchases -- -- Net transfers 31,614 -- Surrenders for benefit payments and fees (370) -- Other transactions -- -- Death benefits -- -- Net annuity transactions -- -- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 31,244 -- --------- --------- Net increase (decrease) in net assets 32,673 (1,126) NET ASSETS: Beginning of year 43,883 16,865 --------- --------- End of year $76,556 $15,739 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-150 -------------------------------------------------------------------------------
COLUMBIA VARIABLE COLUMBIA VARIABLE BLACKROCK PORTFOLIO -- COLUMBIA VARIABLE PORTFOLIO -- CAPITAL MARSICO INTERNATIONAL PORTFOLIO -- MARSICO FOCUSED APPRECIATION V.I. FUND OPPORTUNITIES FUND HIGH INCOME FUND EQUITIES FUND SUB-ACCOUNT (15) SUB-ACCOUNT (18) SUB-ACCOUNT (19) SUB-ACCOUNT (20) ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $173 $(152,815) $619,045 $(161,130) Net realized gain (loss) on security transactions 391 488,710 44,629 575,073 Net realized gain on distributions 2,504 -- -- -- Net unrealized appreciation (depreciation) of investments during the year (3,757) (2,551,406) (157,468) (850,516) ---------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (689) (2,215,511) 506,206 (436,573) ---------- ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 108,360 13,265 3,452 5,730 Net transfers 13,617 (297,608) 99,881 (369,689) Surrenders for benefit payments and fees (12,944) (2,317,629) (1,771,681) (1,784,087) Other transactions (9) 20 (37) 308 Death benefits -- (106,449) (189,474) (210,224) Net annuity transactions -- -- -- 8,000 ---------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 109,024 (2,708,401) (1,857,859) (2,349,962) ---------- ------------- ------------- ------------- Net increase (decrease) in net assets 108,335 (4,923,912) (1,351,653) (2,786,535) NET ASSETS: Beginning of year -- 14,070,397 12,341,363 11,249,183 ---------- ------------- ------------- ------------- End of year $108,335 $9,146,485 $10,989,710 $8,462,648 ========== ============= ============= ============= COLUMBIA VARIABLE COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- PORTFOLIO -- ASSET ALLOCATION MARSICO MARSICO 21ST FUND GROWTH FUND CENTURY FUND SUB-ACCOUNT (21) SUB-ACCOUNT (22) SUB-ACCOUNT (23) ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $20,151 $(155,758) $(57,752) Net realized gain (loss) on security transactions (72,149) 842,220 271,119 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (50,614) (1,063,044) (599,690) ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations (102,612) (376,582) (386,323) ------------ ------------- ------------- UNIT TRANSACTIONS: Purchases -- 11,623 600 Net transfers 498,490 (371,405) (134,171) Surrenders for benefit payments and fees (294,764) (1,407,706) (524,520) Other transactions (9) (15) (16) Death benefits (9,475) (121,503) (66,722) Net annuity transactions -- -- -- ------------ ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 194,242 (1,889,006) (724,829) ------------ ------------- ------------- Net increase (decrease) in net assets 91,630 (2,265,588) (1,111,152) NET ASSETS: Beginning of year 4,207,927 9,759,600 3,298,915 ------------ ------------- ------------- End of year $4,299,557 $7,494,012 $2,187,763 ============ ============= =============
(15) Funded as of August 3, 2011. (18) Formerly Columbia Marsico International Opportunities VS Fund. Change effective May 2, 2011. (19) Formerly Columbia High Yield VS Fund. Change effective May 2, 2011. (20) Formerly Columbia Marsico Focused Equities VS Fund. Change effective May 2, 2011. (21) Formerly Columbia Asset Allocation Fund VS. Change effective May 2, 2011. (22) Formerly Columbia Marsico Growth VS Fund. Change effective May 2, 2011. (23) Formerly Columbia Marsico 21st Century VS Fund. Change effective May 2, 2011. SA-151 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
COLUMBIA VARIABLE COLUMBIA VARIABLE PORTFOLIO -- PORTFOLIO -- MID CAP DIVERSIFIED EQUITY GROWTH FUND INCOME FUND SUB-ACCOUNT (24) SUB-ACCOUNT (3)(25) -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(271,966) $(9,050) Net realized gain (loss) on security transactions 960,343 (4,810,974) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (1,423,284) 3,759,822 ------------- ------------- Net increase (decrease) in net assets resulting from operations (734,907) (1,060,202) ------------- ------------- UNIT TRANSACTIONS: Purchases 13,513 10,699 Net transfers (1,078,972) (46,187) Surrenders for benefit payments and fees (2,117,707) (1,952,667) Other transactions 399 225 Death benefits (76,591) (281,110) Net annuity transactions -- -- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (3,259,358) (2,269,040) ------------- ------------- Net increase (decrease) in net assets (3,994,265) (3,329,242) NET ASSETS: Beginning of year 14,564,931 13,575,744 ------------- ------------- End of year $10,570,666 $10,246,502 ============= =============
(3) Funded as of April 29, 2011. (24) Formerly Columbia Marsico Midcap Growth VS Fund. Change effective May 2, 2011. (25) Effective April 29, 2011 Columbia Large Cap Value VS Fund merged with Columbia Variable Portfolio -- Diversified Equity Income Fund. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-152 -------------------------------------------------------------------------------
OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER OPPENHEIMER MAIN STREET APPRECIATION GLOBAL SECURITIES MAIN STREET SMALL- & MID-CAP FUND/VA FUND/VA FUND(R)/VA FUND/VA SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (26) ----------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(6,610) $(43,327) $(11,067) $(74,519) Net realized gain (loss) on security transactions 7,954 247,204 13,151 410,263 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (18,165) (952,224) (36,055) (500,262) ----------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (16,821) (748,347) (33,971) (164,518) ----------- ------------- ------------ ------------ UNIT TRANSACTIONS: Purchases 4,233 59,161 23,600 28,877 Net transfers (63,095) (237,943) (43,617) (281,431) Surrenders for benefit payments and fees (32,507) (400,260) (69,211) (294,560) Other transactions 3 (1,046) (18) 8 Death benefits -- (3,640) (9,705) (62,004) Net annuity transactions -- -- -- -- ----------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (91,366) (583,728) (98,951) (609,110) ----------- ------------- ------------ ------------ Net increase (decrease) in net assets (108,187) (1,332,075) (132,922) (773,628) NET ASSETS: Beginning of year 540,945 7,996,757 1,153,987 6,773,021 ----------- ------------- ------------ ------------ End of year $432,758 $6,664,682 $1,021,065 $5,999,393 =========== ============= ============ ============ OPPENHEIMER PUTNAM VT PUTNAM VT VALUE DIVERSIFIED GLOBAL ASSET FUND/VA INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,264) $1,801,880 $15,244 Net realized gain (loss) on security transactions 513 (111,209) 953 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (11,056) (2,797,776) (32,212) ---------- ------------- ---------- Net increase (decrease) in net assets resulting from operations (11,807) (1,107,105) (16,015) ---------- ------------- ---------- UNIT TRANSACTIONS: Purchases 14,850 791,935 33,983 Net transfers 11,933 (26,032) 69,290 Surrenders for benefit payments and fees (12,082) (1,036,259) (11,900) Other transactions -- 391 -- Death benefits -- (237,203) -- Net annuity transactions -- -- -- ---------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 14,701 (507,168) 91,373 ---------- ------------- ---------- Net increase (decrease) in net assets 2,894 (1,614,273) 75,358 NET ASSETS: Beginning of year 187,255 21,958,810 627,010 ---------- ------------- ---------- End of year $190,149 $20,344,537 $702,368 ========== ============= ==========
(26) Formerly Oppenheimer Main Street Small Cap Fund(R)/VA. Change effective April 29, 2011. SA-153 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
PUTNAM VT PUTNAM VT INTERNATIONAL INTERNATIONAL VALUE FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(246) $3,374 Net realized gain (loss) on security transactions (419) 56 Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (35,479) (69,649) ---------- ---------- Net increase (decrease) in net assets resulting from operations (36,144) (66,219) ---------- ---------- UNIT TRANSACTIONS: Purchases 89,372 32,263 Net transfers 99,000 40,403 Surrenders for benefit payments and fees (5,581) (13,104) Other transactions 394 -- Death benefits -- -- Net annuity transactions -- -- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 183,185 59,562 ---------- ---------- Net increase (decrease) in net assets 147,041 (6,657) NET ASSETS: Beginning of year 80,957 301,731 ---------- ---------- End of year $227,998 $295,074 ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-154 -------------------------------------------------------------------------------
JPMORGAN PUTNAM VT INSURANCE TRUST PUTNAM VT SMALL CAP PUTNAM VT CORE BOND INVESTORS FUND VALUE FUND VOYAGER FUND PORTFOLIO -- 1 SUB-ACCOUNT (27) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(131) $(19,931) $(529) $3,693,211 Net realized gain (loss) on security transactions -- 7,776 56 671,164 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 5,082 (11,163) (11,612) 824,078 ---------- ------------ ---------- ------------- Net increase (decrease) in net assets resulting from operations 4,951 (23,318) (12,085) 5,188,453 ---------- ------------ ---------- ------------- UNIT TRANSACTIONS: Purchases -- 61,382 193,958 253,352 Net transfers 386,396 1,898,484 497,642 1,698,343 Surrenders for benefit payments and fees -- (19,235) (229) (7,693,247) Other transactions -- -- 1 (99) Death benefits -- (4,645) -- (2,029,776) Net annuity transactions -- -- -- -- ---------- ------------ ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions 386,396 1,935,986 691,372 (7,771,427) ---------- ------------ ---------- ------------- Net increase (decrease) in net assets 391,347 1,912,668 679,287 (2,582,974) NET ASSETS: Beginning of year -- 310,558 11,236 90,515,342 ---------- ------------ ---------- ------------- End of year $391,347 $2,223,226 $690,523 $87,932,368 ========== ============ ========== ============= JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST U.S. EQUITY INTREPID MID CAP EQUITY INDEX PORTFOLIO -- 1 PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(35,177) $(72,542) $57,309 Net realized gain (loss) on security transactions (266) (21,890) (260,654) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (236,733) (94,563) 401,797 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (272,176) (188,995) 198,452 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 43,298 52,356 149,110 Net transfers (261,583) (178,109) (1,654,491) Surrenders for benefit payments and fees (634,580) (636,349) (2,566,438) Other transactions 17 (5) 29 Death benefits (106,154) (124,693) (522,159) Net annuity transactions -- -- -- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (959,002) (886,800) (4,593,949) ------------- ------------- ------------- Net increase (decrease) in net assets (1,231,178) (1,075,795) (4,395,497) NET ASSETS: Beginning of year 9,668,261 10,115,535 39,745,472 ------------- ------------- ------------- End of year $8,437,083 $9,039,740 $35,349,975 ============= ============= =============
(27) Funded as of December 12, 2011. SA-155 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INTREPID GROWTH MID CAP GROWTH PORTFOLIO -- 1 PORTFOLIO -- 1 SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(20,081) $(181,790) Net realized gain (loss) on security transactions 44,327 (221,521) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year 7,547 (453,008) ------------ ------------- Net increase (decrease) in net assets resulting from operations 31,793 (856,319) ------------ ------------- UNIT TRANSACTIONS: Purchases 2,142 40,062 Net transfers (117,636) 55,747 Surrenders for benefit payments and fees (195,330) (931,814) Other transactions 129 (128) Death benefits (24,718) (144,183) Net annuity transactions -- -- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (335,413) (980,316) ------------ ------------- Net increase (decrease) in net assets (303,620) (1,836,635) NET ASSETS: Beginning of year 3,936,629 11,817,527 ------------ ------------- End of year $3,633,009 $9,980,892 ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-156 -------------------------------------------------------------------------------
JPMORGAN INSURANCE TRUST PUTNAM VT PIMCO PIMCO MID CAP VALUE EQUITY ALL ASSET EQS PATHFINDER PORTFOLIO -- 1 INCOME FUND PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT (28) SUB-ACCOUNT (29) SUB-ACCOUNT (15) --------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(23,810) $(166) $4,492 $(64) Net realized gain (loss) on security transactions (262,675) 1 (2) 284 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 338,562 9,294 (5,055) (90) ------------- ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 52,077 9,129 (565) 130 ------------- ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 50,387 -- 110,717 95,612 Net transfers (559,470) 417,501 3,540 11,776 Surrenders for benefit payments and fees (795,266) -- -- (11,381) Other transactions 129 -- -- (3) Death benefits (67,156) -- -- -- Net annuity transactions -- -- -- -- ------------- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (1,371,376) 417,501 114,257 96,004 ------------- ---------- ---------- --------- Net increase (decrease) in net assets (1,319,299) 426,630 113,692 96,134 NET ASSETS: Beginning of year 8,545,963 -- -- -- ------------- ---------- ---------- --------- End of year $7,226,664 $426,630 $113,692 $96,134 ============= ========== ========== ========= JENNISON 20/20 PRUDENTIAL FOCUS JENNISON VALUE PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,763) $(4,396) $(939) Net realized gain (loss) on security transactions 4,192 (4,352) (466) Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (9,572) 7,250 (4,292) ---------- ----------- --------- Net increase (decrease) in net assets resulting from operations (8,143) (1,498) (5,697) ---------- ----------- --------- UNIT TRANSACTIONS: Purchases -- -- -- Net transfers -- (9,028) 8 Surrenders for benefit payments and fees (25,598) (126,511) (7,995) Other transactions (1) -- 1 Death benefits -- -- -- Net annuity transactions -- 37,659 -- ---------- ----------- --------- Net increase (decrease) in net assets resulting from unit transactions (25,599) (97,880) (7,986) ---------- ----------- --------- Net increase (decrease) in net assets (33,742) (99,378) (13,683) NET ASSETS: Beginning of year 183,943 295,574 89,904 ---------- ----------- --------- End of year $150,201 $196,196 $76,221 ========== =========== =========
(15) Funded as of August 3, 2011. (28) Funded as of June 21, 2011. (29) Funded as of August 29, 2011. SA-157 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
PRUDENTIAL LEGG MASON SERIES CLEARBRIDGE INTERNATIONAL VARIABLE EQUITY GROWTH INCOME BUILDER PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(71) $1,055 Net realized gain (loss) on security transactions (802) (12,202) Net realized gain on distributions -- -- Net unrealized appreciation (depreciation) of investments during the year (195) 14,787 -------- --------- Net increase (decrease) in net assets resulting from operations (1,068) 3,640 -------- --------- UNIT TRANSACTIONS: Purchases -- -- Net transfers -- 2,685 Surrenders for benefit payments and fees (1,753) (9,346) Other transactions 23 -- Death benefits -- (21,170) Net annuity transactions -- -- -------- --------- Net increase (decrease) in net assets resulting from unit transactions (1,730) (27,831) -------- --------- Net increase (decrease) in net assets (2,798) (24,191) NET ASSETS: Beginning of year 6,456 83,764 -------- --------- End of year $3,658 $59,573 ======== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-158 -------------------------------------------------------------------------------
LEGG MASON LEGG MASON CLEARBRIDGE VARIABLE WESTERN ASSET LEGG MASON INVESCO FUNDAMENTAL VARIABLE GLOBAL CLEARBRIDGE VARIABLE VAN KAMPEN V.I. ALL CAP VALUE HIGH YIELD BOND LARGE CAP VALUE GROWTH AND PORTFOLIO PORTFOLIO PORTFOLIO INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,259) $3,746 $2,404 $(6,608) Net realized gain (loss) on security transactions (37,104) (1,271) (1,080) 15,484 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year (13,339) (2,649) 9,456 (59,164) ----------- --------- ---------- ------------ Net increase (decrease) in net assets resulting from operations (51,702) (174) 10,780 (50,288) ----------- --------- ---------- ------------ UNIT TRANSACTIONS: Purchases -- -- -- 8,513 Net transfers (26,994) (1,369) (2,505) (49,449) Surrenders for benefit payments and fees (163,253) (4,230) (17,218) (79,466) Other transactions (1) -- (1) 44 Death benefits (17,612) (18,787) (14,323) (10,379) Net annuity transactions -- -- -- -- ----------- --------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions (207,860) (24,386) (34,047) (130,737) ----------- --------- ---------- ------------ Net increase (decrease) in net assets (259,562) (24,560) (23,267) (181,025) NET ASSETS: Beginning of year 972,469 82,118 324,250 1,685,931 ----------- --------- ---------- ------------ End of year $712,907 $57,558 $300,983 $1,504,906 =========== ========= ========== ============ INVESCO WELLS FARGO INVESCO VAN KAMPEN V.I. ADVANTAGE VT VAN KAMPEN V.I. CAPITAL INDEX ASSET COMSTOCK FUND GROWTH FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT (3)(30) SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(2,344) $(231,250) $159 Net realized gain (loss) on security transactions (2,723) 2,758,855 7 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year (10,235) (3,513,655) 382 ---------- ------------- --------- Net increase (decrease) in net assets resulting from operations (15,302) (986,050) 548 ---------- ------------- --------- UNIT TRANSACTIONS: Purchases -- 131,693 -- Net transfers (228) 1,277,250 -- Surrenders for benefit payments and fees (9,625) (3,014,363) -- Other transactions -- (670) -- Death benefits -- (264,583) -- Net annuity transactions -- 8,430 -- ---------- ------------- --------- Net increase (decrease) in net assets resulting from unit transactions (9,853) (1,862,243) -- ---------- ------------- --------- Net increase (decrease) in net assets (25,155) (2,848,293) 548 NET ASSETS: Beginning of year 391,939 13,952,802 12,090 ---------- ------------- --------- End of year $366,784 $11,104,509 $12,638 ========== ============= =========
(3) Funded as of April 29, 2011. (30) Effective April 29, 2011 Invesco V.I. Large Cap Growth Fund merged with Invesco Van Kampen V.I. Capital Growth Fund. SA-159 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2011 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT TOTAL RETURN INTRINSIC BOND FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $137 $(310) Net realized gain (loss) on security transactions -- 441 Net realized gain on distributions 417 -- Net unrealized appreciation (depreciation) of investments during the year 139 (1,042) --------- --------- Net increase (decrease) in net assets resulting from operations 693 (911) --------- --------- UNIT TRANSACTIONS: Purchases -- -- Net transfers -- (160) Surrenders for benefit payments and fees -- (1,842) Other transactions 1 -- Death benefits -- -- Net annuity transactions -- -- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 1 (2,002) --------- --------- Net increase (decrease) in net assets 694 (2,913) NET ASSETS: Beginning of year 10,108 28,778 --------- --------- End of year $10,802 $25,865 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-160 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT ADVANTAGE VT WELLS FARGO INTERNATIONAL SMALL CAP ADVANTAGE VT EQUITY FUND GROWTH FUND DISCOVERY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(21,084) $(31,207) $(54) Net realized gain (loss) on security transactions 18,721 63,732 12 Net realized gain on distributions 78,127 -- -- Net unrealized appreciation (depreciation) of investments during the year (330,942) (133,543) (10) ------------ ------------ ------- Net increase (decrease) in net assets resulting from operations (255,178) (101,018) (52) ------------ ------------ ------- UNIT TRANSACTIONS: Purchases 2,026 3,167 600 Net transfers 75,904 122,187 -- Surrenders for benefit payments and fees (177,279) (190,186) (18) Other transactions (13) (1) -- Death benefits (5,889) (18,861) -- Net annuity transactions -- (456) -- ------------ ------------ ------- Net increase (decrease) in net assets resulting from unit transactions (105,251) (84,150) 582 ------------ ------------ ------- Net increase (decrease) in net assets (360,429) (185,168) 530 NET ASSETS: Beginning of year 1,896,864 1,871,368 3,469 ------------ ------------ ------- End of year $1,536,435 $1,686,200 $3,999 ============ ============ ======= WELLS FARGO ADVANTAGE VT WELLS FARGO SMALL CAP ADVANTAGE VT VALUE FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT (31)(32) ----------------------------- ------------------------------------------------ OPERATIONS: Net investment income (loss) $(135,882) $(44,831) Net realized gain (loss) on security transactions 461,016 (1,091,645) Net realized gain on distributions -- 2,355,869 Net unrealized appreciation (depreciation) of investments during the year (1,646,698) (1,891,248) ------------- ------------- Net increase (decrease) in net assets resulting from operations (1,321,564) (671,855) ------------- ------------- UNIT TRANSACTIONS: Purchases 73,865 300,610 Net transfers (347,149) (27,039) Surrenders for benefit payments and fees (1,658,559) (563,174) Other transactions 337 (101) Death benefits (265,428) (122,337) Net annuity transactions (381) -- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (2,197,315) (412,041) ------------- ------------- Net increase (decrease) in net assets (3,518,879) (1,083,896) NET ASSETS: Beginning of year 17,086,708 10,242,225 ------------- ------------- End of year $13,567,829 $9,158,329 ============= =============
(31) Funded as of January 21, 2011. (32) Effective August 26, 2011 Wells Fargo Advantage VT Core Equity Fund merged with Wells Fargo Advantage VT Opportunity Fund. SA-161 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS ------------------------------------------------------------------------------- 1. ORGANIZATION: Separate Account Seven (the "Account") is a separate investment account established by Hartford Life Insurance Company (the "Sponsor Company") and is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company Act of 1940, as amended. Both the Sponsor Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The contract owners of the Sponsor Company direct their deposits into various investment options (the "Sub-Accounts") within the Account. The Account is comprised of the following Sub-Accounts: the American Century VP Value Fund, American Century VP Growth Fund, AllianceBernstein VPS Balanced Wealth Strategy Portfolio, AllianceBernstein VPS International Value Portfolio, AllianceBernstein VPS Small/Mid-Cap Value Portfolio, AllianceBernstein VPS Value Portfolio, AllianceBernstein VPS International Growth Portfolio, Invesco Van Kampen V.I. Value Opportunities Fund (formerly Invesco V.I. Basic Value Fund), Invesco V.I. Core Equity Fund, Invesco V.I. Government Securities Fund, Invesco V.I. High Yield Fund, Invesco V.I. International Growth Fund, Invesco V.I. Mid Cap Core Equity Fund, Invesco V.I. Small Cap Equity Fund, Invesco V.I. Balanced Risk Allocation Fund, Invesco V.I. Diversified Dividend Fund (formerly Invesco V.I. Dividend Growth Fund), American Century VP Mid Cap Value Fund, American Funds Global Bond Fund, American Funds Global Growth and Income Fund, American Funds Asset Allocation Fund, American Funds Blue Chip Income and Growth Fund, American Funds Bond Fund, American Funds Global Growth Fund, American Funds Growth Fund, American Funds Growth-Income Fund, American Funds International Fund, American Funds New World Fund, American Funds Global Small Capitalization Fund, Sterling Capital Strategic Allocation Equity VIF, Sterling Capital Select Equity VIF, Sterling Capital Special Opportunities VIF, Sterling Capital Total Return Bond VIF, Columbia Variable Portfolio -- Small Company Growth Fund, Wells Fargo Advantage VT Omega Growth Fund, Fidelity VIP Growth Portfolio, Fidelity VIP Contrafund(R) Portfolio, Fidelity VIP Mid Cap Portfolio, Fidelity VIP Value Strategies Portfolio, Fidelity VIP Dynamic Capital Appreciation Portfolio, Fidelity VIP Strategic Income Portfolio, Franklin Rising Dividends Securities Fund, Franklin Income Securities Fund, Franklin Large Cap Growth Securities Fund, Franklin Global Real Estate Securities Fund, Franklin Small-Mid Cap Growth Securities Fund, Franklin Small Cap Value Securities Fund, Franklin Strategic Income Securities Fund, Mutual Shares Securities Fund, Templeton Developing Markets Securities Fund, Templeton Foreign Securities Fund, Templeton Growth Securities Fund, Mutual Global Discovery Securities Fund, Franklin Flex Cap Growth Securities Fund, Franklin Large Cap Value Securities Fund, Templeton Global Bond Securities Fund, Hartford Balanced HLS Fund (formerly Hartford Advisers HLS Fund), Hartford Total Return Bond HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Global Research HLS Fund, Hartford Healthcare HLS Fund, Hartford Global Growth HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford High Yield HLS Fund, Hartford Index HLS Fund, Hartford International Opportunities HLS Fund, Hartford Small/Mid Cap Equity HLS Fund, Hartford MidCap HLS Fund, Hartford MidCap Value HLS Fund, Hartford Money Market HLS Fund, Hartford Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Stock HLS Fund, Hartford U.S. Government Securities HLS Fund, Hartford Value HLS Fund, American Funds Asset Allocation HLS Fund, American Funds Blue Chip Income and Growth HLS Fund, American Funds Bond HLS Fund, American Funds Global Bond HLS Fund, American Funds Global Growth and Income HLS Fund, American Funds Global Growth HLS Fund, American Funds Global Small Capitalization HLS Fund, American Funds Growth HLS Fund, American Funds Growth-Income HLS Fund, American Funds International HLS Fund, American Funds New World HLS Fund, Hartford Portfolio Diversifier HLS Fund, Huntington VA Income Equity Fund, Huntington VA Dividend Capture Fund, Huntington VA Growth Fund, Huntington VA Mid Corp America Fund (merged with Huntington VA New Economy Fund), Huntington VA Rotating Markets Fund, Huntington VA International Equity Fund, Huntington VA Macro 100 Fund, Huntington VA Mortgage Securities Fund, Huntington VA Situs Fund, Lord Abbett Fundamental Equity Fund, Lord Abbett Calibrated Dividend Growth Fund (formerly Lord Abbett Capital Structure Fund), Lord Abbett Bond Debenture Fund, Lord Abbett Growth and Income Fund, MFS(R) Core Equity Series, MFS(R) Growth Series, MFS(R) Global Equity Series, MFS(R) High Income Series, MFS(R) Investors Growth Stock Series, MFS(R) Investors Trust Series, MFS(R) Mid Cap Growth Series, MFS(R) New Discovery Series, MFS(R) Total Return Series, MFS(R) Value Series, MFS(R) Research Bond Series, MFS(R) Research International Series, MFS(R) Research Series, BlackRock Global Allocation V.I. Fund, BlackRock Global Opportunities V.I. Fund, BlackRock Large Cap Growth V.I. Fund, BlackRock Equity Dividend V.I. Fund, UIF Mid Cap Growth Portfolio, Invesco Van Kampen V.I. American SA-162 ------------------------------------------------------------------------------- Value Fund (formerly Invesco Van Kampen V.I. Mid Cap Value Fund), Morgan Stanley -- Focus Growth Portfolio, Morgan Stanley Multi Cap Growth Portfolio, Morgan Stanley -- Mid Cap Growth Portfolio, Morgan Stanley -- Flexible Income Portfolio, Wilmington Managed Allocation Fund -- Moderate Growth II++ (formerly MTB Managed Allocation Fund -- Moderate Growth II), BlackRock Capital Appreciation V.I. Fund, Columbia Variable Portfolio -- Marsico International Opportunities Fund, Columbia Variable Portfolio -- High Income Fund, Columbia Variable Portfolio -- Marsico Focused Equities Fund, Columbia Variable Portfolio - - Asset Allocation Fund, Columbia Variable Portfolio -- Marsico Growth Fund, Columbia Variable Portfolio -- Marsico 21st Century Fund, Columbia Variable Portfolio -- Mid Cap Growth Fund, Columbia Variable Portfolio -- Dividend Opportunity Fund (formerly Columbia Variable Portfolio Diversified Equity Income Fund), Oppenheimer Capital Appreciation Fund/VA, Oppenheimer Global Securities Fund/VA, Oppenheimer Main Street Fund(R)/VA, Oppenheimer Main Street Small- & Mid-Cap Fund/VA, Oppenheimer Value Fund/VA, Putnam VT Diversified Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT International Value Fund, Putnam VT International Equity Fund, Putnam VT Investors Fund*, Putnam VT Small Cap Value Fund, Putnam VT Voyager Fund, JPMorgan Insurance Trust Core Bond Portfolio -- 1, JPMorgan Insurance Trust U.S. Equity Portfolio -- 1, JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1, JPMorgan Insurance Trust Equity Index Portfolio -- 1, JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1, JPMorgan Insurance Trust Mid Cap Growth Portfolio -- 1, JPMorgan Insurance Trust Mid Cap Value Portfolio -- 1, Putnam VT Equity Income Fund, PIMCO All Asset Portfolio, PIMCO EqS Pathfinder Portfolio, PIMCO Global Multi-Asset Portfolio, Jennison 20/20 Focus Portfolio, Jennison Portfolio, Prudential Value Portfolio, Prudential Series International Growth Portfolio, Legg Mason ClearBridge Variable Equity Income Builder Portfolio, Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio, Western Asset Variable Global High Yield Bond Portfolio (formerly Legg Mason Western Asset Variable Global High Yield Bond Portfolio), Legg Mason ClearBridge Variable Large Cap Value Portfolio, Invesco Van Kampen V.I. Growth and Income Fund, Invesco Van Kampen V.I. Comstock Fund, Invesco Van Kampen V.I. American Franchise Fund (merged with Invesco V.I. Capital Appreciation Fund) (formerly Invesco Van Kampen V.I. Capital Growth Fund), Invesco Van Kampen V.I. Mid Cap Growth Fund (merged with Invesco V.I. Capital Development Fund), Wells Fargo Advantage VT Index Asset Allocation Fund, Wells Fargo Advantage VT Total Return Bond Fund, Wells Fargo Advantage VT Intrinsic Value Fund, Wells Fargo Advantage VT International Equity Fund, Wells Fargo Advantage VT Small Cap Growth Fund, Wells Fargo Advantage VT Discovery Fund, Wells Fargo Advantage VT Small Cap Value Fund, and Wells Fargo Advantage VT Opportunity Fund. * This fund was not funded as of December 31, 2012, and as a result, it is not presented in the statements of assets and liabilities. ++ During 2012, the following Sub-Account was liquidated: Wilmington Managed Allocation Fund --Moderate Growth II The Sub-Accounts are invested in mutual funds (the "Funds") of the same name. Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the Sponsor Company's other assets and liabilities and are not chargeable with liabilities arising out of any other business the Sponsor Company may conduct. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Account, which are in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP): a) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sales of securities are computed using the average cost method. Dividend income is either accrued daily or as of the ex-dividend date based upon the fund. Net realized gain on distributions income is accrued as of the ex-dividend date. Net realized gain on distributions income represents those dividends from the Funds, which are characterized as capital gains under tax regulations. b) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values calculated at the close of the business day. c) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and are taxed with, the total operations of the Sponsor Company, which is taxed as an insurance company under the Internal Revenue Code (IRC). Under the current provisions of the IRC, the Sponsor Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to the contract owners. Based on this, no charge is being made currently to the Account for SA-163 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) ------------------------------------------------------------------------------- federal income taxes. The Sponsor Company will review periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts. d) USE OF ESTIMATES -- The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. The most significant estimate contained within the financial statements are the fair value measurements. e) MORTALITY RISK -- The mortality risk associated with net assets allocated to contracts in the annuity period is determined using certain mortality tables. The mortality risk is fully borne by the Sponsor Company and may result in additional amounts being transferred into the Account by the Sponsor Company to cover greater longevity of contract owners than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Sponsor Company. f) FAIR VALUE MEASUREMENTS -- The Sub-Accounts' investments are carried at fair value in the Account's financial statements. The investments in shares of the Funds are valued at the December 31, 2012 closing net asset value as determined by the appropriate Fund manager. For financial instruments that are carried at fair value, a hierarchy is used to place the instruments into three broad levels (Levels 1, 2 and 3) by prioritizing the inputs in the valuation techniques used to measure fair value. Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Account has the ability to access at the measurement date. Level 1 investments include highly liquid open-ended management investment companies ("mutual funds"). Level 2: Observable inputs, other than unadjusted quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 2 investments include those that are model priced by vendors using observable inputs. Level 3: Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the best estimate of an amount that could be realized in a current market exchange absent actual market exchanges. In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. As of December 31, 2012, the Sub-Accounts invest in mutual funds which are carried at fair value and represent Level 1 investments under the fair value hierarchy levels. There were no Level 2 or Level 3 investments in the Sub-Accounts. The Account's policy is to recognize transfers of securities among the levels at the beginning of the reporting period. There were no transfers among the levels for the year ended December 31, 2012. g) ACCOUNTING FOR UNCERTAIN TAX POSITIONS -- Management evaluates whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required at December 31, 2012. The 2007 through 2012 tax years generally remain subject to examination by U.S. federal and most state tax authorities. 3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES: Each Sub-account is charged certain fees, according to contract terms, as follows: a) MORTALITY AND EXPENSE RISK CHARGES -- The Sponsor Company, as an issuer of variable annuity contracts, assesses mortality and expense risk charges for which it receives a maximum annual fee of 1.55% of the Sub-Account's average daily net assets. These charges are reflected in the accompanying statements of operations as a reduction in unit value. b) TAX EXPENSE CHARGES -- If applicable, the Sponsor Company will make deductions up to a maximum rate of 3.50% of the contract's average daily net assets to meet premium tax requirements. An additional tax charge based on a percentage of the Sub-Accounts average daily net assets may be assessed on partial withdrawals or surrenders. These charges are a redemption of units from applicable contract owners' accounts and are reflected in surrenders for benefit payments and fees on the accompanying statements of changes in net assets. c) ADMINISTRATIVE CHARGES -- The Sponsor Company provides administrative services to the Account and receives a maximum annual fee of 0.20% of the Sub-Account's average daily net assets for these services. SA-164 ------------------------------------------------------------------------------- These charges are reflected in the accompanying statements of operations as a reduction in unit value. d) ANNUAL MAINTENANCE FEES -- An annual maintenance fee up to a maximum of $50 may be charged. These charges are deducted through a redemption of units from applicable contract owners' accounts and are reflected in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. e) RIDER CHARGES -- The Sponsor Company will charge an expense for various rider charges, which are either included in the mortality and expense risk charges in the accompanying statements of operations or the surrenders for benefit payments and fees in the accompanying statements of changes in net assets. For further detail regarding specific product rider charges, please refer to Note 6, Financial Highlights. f) DISTRIBUTION CHARGE -- A Distribution Charge of 0.75% may be charged, by the Sponsor Company, to the contract's value each year at the contract anniversary date. This charge is based on a percentage of remaining gross premiums with each premium payment having its own Distribution Charge schedule. The Distribution Charge is reduced to zero after the completion of eight years after each respective premium payment. These charges are deducted through a redemption of units from applicable contract owners' accounts and are reflected in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. 4. PURCHASES AND SALES OF INVESTMENTS: The cost of purchases and proceeds from sales of investments for the year ended December 31, 2012 were as follows:
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES -------------------------------------------------------------------------------- American Century VP Value Fund $2,096,482 $216,908 American Century VP Growth Fund* 34,103 296 AllianceBernstein VPS Balanced Wealth Strategy Portfolio 1,111,719 2,017,705 AllianceBernstein VPS International Value Portfolio 931,122 1,129,990 AllianceBernstein VPS Small/Mid-Cap Value Portfolio 298,848 251,517 AllianceBernstein VPS Value Portfolio 84,395 171,604 AllianceBernstein VPS International Growth Portfolio 151,070 261,795 Invesco Van Kampen V.I. Value Opportunities Fund* 2,651,001 8,306,612 Invesco V.I. Core Equity Fund 5,382,935 21,145,306 Invesco V.I. Government Securities Fund 53,239,418 78,025,947 Invesco V.I. High Yield Fund 522,584 435,976 Invesco V.I. International Growth Fund 5,270,658 14,817,753 Invesco V.I. Mid Cap Core Equity Fund 5,107,159 18,237,725 Invesco V.I. Small Cap Equity Fund 3,621,711 14,135,677 Invesco V.I. Balanced Risk Allocation Fund 5,967,357 1,113,668 Invesco V.I. Diversified Dividend Fund* 108 439 American Century VP Mid Cap Value Fund 44,456 1,505 American Funds Global Bond Fund 11,779,901 27,156,724 American Funds Global Growth and Income Fund 6,980,791 25,872,260 American Funds Asset Allocation Fund 17,573,676 69,568,293 American Funds Blue Chip Income and Growth Fund 10,739,665 32,642,039 American Funds Bond Fund 31,679,404 70,570,250 American Funds Global Growth Fund 4,643,317 19,485,333 American Funds Growth Fund 21,162,024 171,110,929 American Funds Growth-Income Fund 20,804,897 156,361,190 American Funds International Fund 7,831,865 43,176,056 American Funds New World Fund 6,876,232 24,079,188 American Funds Global Small Capitalization Fund 4,177,845 17,538,740 Sterling Capital Strategic Allocation Equity VIF 181 235 Sterling Capital Select Equity VIF 27,971 201 Sterling Capital Special Opportunities VIF 192,317 329,170
SA-165 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES -------------------------------------------------------------------------------- Sterling Capital Total Return Bond VIF $156,829 $222,053 Columbia Variable Portfolio -- Small Company Growth Fund 453,469 1,576,168 Wells Fargo Advantage VT Omega Growth Fund 899,096 397,544 Fidelity VIP Growth Portfolio 150,570 482,093 Fidelity VIP Contrafund(R) Portfolio 4,129,813 6,074,968 Fidelity VIP Mid Cap Portfolio 2,392,543 2,710,895 Fidelity VIP Value Strategies Portfolio 326,945 777,289 Fidelity VIP Dynamic Capital Appreciation Portfolio 307,220 226,295 Fidelity VIP Strategic Income Portfolio 54,947 7,136 Franklin Rising Dividends Securities Fund 18,807,616 68,356,485 Franklin Income Securities Fund 73,112,499 201,581,025 Franklin Large Cap Growth Securities Fund 4,367,377 15,196,518 Franklin Global Real Estate Securities Fund 104,429 348,318 Franklin Small-Mid Cap Growth Securities Fund 12,159,163 23,960,804 Franklin Small Cap Value Securities Fund 3,784,314 6,726,382 Franklin Strategic Income Securities Fund 41,676,570 61,387,739 Mutual Shares Securities Fund 16,051,139 102,148,627 Templeton Developing Markets Securities Fund 6,289,435 19,116,197 Templeton Foreign Securities Fund 25,698,459 51,540,895 Templeton Growth Securities Fund 10,367,560 64,826,704 Mutual Global Discovery Securities Fund 16,187,566 35,182,446 Franklin Flex Cap Growth Securities Fund 3,138,935 6,880,824 Franklin Large Cap Value Securities Fund 1,764,038 2,901,062 Templeton Global Bond Securities Fund 4,679,026 4,308,929 Hartford Balanced HLS Fund* 2,976,045 3,890,934 Hartford Total Return Bond HLS Fund 25,220,114 32,434,952 Hartford Capital Appreciation HLS Fund 10,529,484 30,362,599 Hartford Dividend and Growth HLS Fund 8,097,969 24,235,620 Hartford Global Research HLS Fund 102,302 170,056 Hartford Healthcare HLS Fund 394 127,728 Hartford Global Growth HLS Fund 94,011 88,664 Hartford Disciplined Equity HLS Fund 810,031 2,642,577 Hartford Growth HLS Fund 525,045 590,917 Hartford Growth Opportunities HLS Fund 1,858,131 6,817,635 Hartford High Yield HLS Fund 3,409,672 2,160,135 Hartford Index HLS Fund 5,764,865 375,792 Hartford International Opportunities HLS Fund 1,873,168 2,079,658 Hartford Small/Mid Cap Equity HLS Fund 577,277 787,617 Hartford MidCap HLS Fund 6,594 297,281 Hartford MidCap Value HLS Fund 142,400 133,059 Hartford Money Market HLS Fund 154,426,151 210,744,205 Hartford Small Company HLS Fund 385,201 1,170,197 Hartford SmallCap Growth HLS Fund 172,707 1,377,345 Hartford Stock HLS Fund 589,936 3,231,102 Hartford U.S. Government Securities HLS Fund 2,207,588 2,789,648 Hartford Value HLS Fund 323,116 280,304 American Funds Asset Allocation HLS Fund 3,205,742 4,202,734 American Funds Blue Chip Income and Growth HLS Fund 826,021 1,366,957 American Funds Bond HLS Fund 5,772,408 5,248,057 American Funds Global Bond HLS Fund 736,852 1,187,624
SA-166 -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES -------------------------------------------------------------------------------- American Funds Global Growth and Income HLS Fund $711,623 $2,870,312 American Funds Global Growth HLS Fund 332,031 1,274,501 American Funds Global Small Capitalization HLS Fund 1,611,642 1,556,988 American Funds Growth HLS Fund 5,614,115 10,537,754 American Funds Growth-Income HLS Fund 4,043,186 6,212,874 American Funds International HLS Fund 4,309,918 5,971,099 American Funds New World HLS Fund 952,816 2,243,831 Hartford Portfolio Diversifier HLS Fund 40,181,658 2,194,902 Huntington VA Income Equity Fund 1,974,758 655,683 Huntington VA Dividend Capture Fund 1,114,646 1,504,345 Huntington VA Growth Fund 250,469 459,104 Huntington VA Mid Corp America Fund* 4,407,122 5,084,435 Huntington VA Rotating Markets Fund 71,510 236,774 Huntington VA International Equity Fund 1,350,645 862,746 Huntington VA Macro 100 Fund 1,675,081 348,212 Huntington VA Mortgage Securities Fund 546,178 488,565 Huntington VA Situs Fund 433,029 1,226,690 Lord Abbett Fundamental Equity Fund 1,018,543 209,229 Lord Abbett Calibrated Dividend Growth Fund* 340,536 373,441 Lord Abbett Bond Debenture Fund 2,913,566 2,892,588 Lord Abbett Growth and Income Fund 102,994 814,762 MFS(R) Core Equity Series 1,271,399 2,379,432 MFS(R) Growth Series 6,773,807 8,588,716 MFS(R) Global Equity Series 2,213,742 2,538,005 MFS(R) High Income Series 22,314,589 24,515,610 MFS(R) Investors Growth Stock Series 2,712,222 4,886,435 MFS(R) Investors Trust Series 5,625,796 34,040,640 MFS(R) Mid Cap Growth Series 3,736,713 7,959,007 MFS(R) New Discovery Series 11,276,902 23,585,743 MFS(R) Total Return Series 25,023,213 82,487,614 MFS(R) Value Series 12,737,675 24,177,783 MFS(R) Research Bond Series 24,319,184 27,353,159 MFS(R) Research International Series 2,354,435 4,944,963 MFS(R) Research Series 2,198,817 2,719,787 BlackRock Global Allocation V.I. Fund 82,905 7,434 BlackRock Global Opportunities V.I. Fund 20,173 20,386 BlackRock Large Cap Growth V.I. Fund 39,387 69,745 BlackRock Equity Dividend V.I. Fund 952,743 73,537 UIF Mid Cap Growth Portfolio 530,363 1,020,122 Invesco Van Kampen V.I. American Value Fund* 304,653 337,584 Morgan Stanley -- Focus Growth Portfolio 5,308 73 Morgan Stanley Multi Cap Growth Portfolio 33,512 23,061 Morgan Stanley -- Mid Cap Growth Portfolio 41,765 14,045 Morgan Stanley -- Flexible Income Portfolio 5,032 2,031 Wilmington Managed Allocation Fund -- Moderate Growth II* 130 16,039 BlackRock Capital Appreciation V.I. Fund 935,147 91,944 Columbia Variable Portfolio -- Marsico International Opportunities Fund 717,201 2,251,561 Columbia Variable Portfolio -- High Income Fund 1,336,040 2,693,749 Columbia Variable Portfolio -- Marsico Focused Equities Fund 1,223,645 2,005,648 Columbia Variable Portfolio -- Asset Allocation Fund 318,344 1,052,696
SA-167 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES -------------------------------------------------------------------------------- Columbia Variable Portfolio -- Marsico Growth Fund $709,045 $2,347,389 Columbia Variable Portfolio -- Marsico 21st Century Fund 128,307 687,115 Columbia Variable Portfolio -- Mid Cap Growth Fund 800,915 2,762,925 Columbia Variable Portfolio -- Dividend Opportunity Fund* 540,427 2,260,577 Oppenheimer Capital Appreciation Fund/VA 85,061 91,664 Oppenheimer Global Securities Fund/VA 656,595 1,672,213 Oppenheimer Main Street Fund(R)/VA 101,934 170,465 Oppenheimer Main Street Small- & Mid-Cap Fund/VA 362,573 1,379,641 Oppenheimer Value Fund/VA 7,600 34,492 Putnam VT Diversified Income Fund 4,595,180 3,092,217 Putnam VT Global Asset Allocation Fund 1,651,481 113,478 Putnam VT International Value Fund 61,359 108,342 Putnam VT International Equity Fund 30,488 30,347 Putnam VT Investors Fund* -- 404,639 Putnam VT Small Cap Value Fund 976,731 1,426,578 Putnam VT Voyager Fund 2,299,897 718,496 JPMorgan Insurance Trust Core Bond Portfolio -- 1 13,185,502 19,631,923 JPMorgan Insurance Trust U.S. Equity Portfolio -- 1 627,709 3,024,096 JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1 507,336 2,224,451 JPMorgan Insurance Trust Equity Index Portfolio -- 1 1,271,118 11,863,919 JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1 462,451 1,117,916 JPMorgan Insurance Trust Mid Cap Growth Portfolio -- 1 823,866 3,835,635 JPMorgan Insurance Trust Mid Cap Value Portfolio -- 1 338,239 2,654,572 Putnam VT Equity Income Fund 6,485 424,372 PIMCO All Asset Portfolio 45,101 2,365 PIMCO EqS Pathfinder Portfolio 775,837 53,103 PIMCO Global Multi-Asset Portfolio* 33,873 21,543 Jennison 20/20 Focus Portfolio 15,117 44,519 Jennison Portfolio 452 48,267 Prudential Value Portfolio 14,409 15,987 Prudential Series International Growth Portfolio -- 79 Legg Mason ClearBridge Variable Equity Income Builder Portfolio 10,692 19,812 Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio 16,245 161,894 Western Asset Variable Global High Yield Bond Portfolio* 12,757 19,094 Legg Mason ClearBridge Variable Large Cap Value Portfolio 12,461 100,156 Invesco Van Kampen V.I. Growth and Income Fund 140,678 280,621 Invesco Van Kampen V.I. Comstock Fund 5,210 72,127 Invesco Van Kampen V.I. American Franchise Fund* 20,527,480 26,682,419 Invesco Van Kampen V.I. Mid Cap Growth Fund* 4,744,227 6,367,318 Wells Fargo Advantage VT Index Asset Allocation Fund 20,150 14,003 Wells Fargo Advantage VT Total Return Bond Fund 6,600 187 Wells Fargo Advantage VT Intrinsic Value Fund 421 2,342 Wells Fargo Advantage VT International Equity Fund 223,775 434,528 Wells Fargo Advantage VT Small Cap Growth Fund 215,870 361,720 Wells Fargo Advantage VT Discovery Fund 1,244 763 Wells Fargo Advantage VT Small Cap Value Fund 798,924 3,795,318 Wells Fargo Advantage VT Opportunity Fund 811,380 1,983,358
* See Note 1 for additional information related to this Sub-Account. SA-168 ------------------------------------------------------------------------------- 5. CHANGES IN UNITS OUTSTANDING: The changes in units outstanding for the year ended December 31, 2012 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- American Century VP Value Fund 191,394 19,075 172,319 American Century VP Growth Fund* 3,309 13 3,296 AllianceBernstein VPS Balanced Wealth Strategy Portfolio 103,783 194,831 (91,048) AllianceBernstein VPS International Value Portfolio 149,164 176,425 (27,261) AllianceBernstein VPS Small/Mid-Cap Value Portfolio 17,917 19,236 (1,319) AllianceBernstein VPS Value Portfolio 5,672 14,841 (9,169) AllianceBernstein VPS International Growth Portfolio 18,679 33,135 (14,456) Invesco Van Kampen V.I. Value Opportunities Fund* 2,073,222 7,089,692 (5,016,470) Invesco V.I. Core Equity Fund 466,884 1,824,034 (1,357,150) Invesco V.I. Government Securities Fund 34,282,295 54,590,782 (20,308,487) Invesco V.I. High Yield Fund 208,236 246,287 (38,051) Invesco V.I. International Growth Fund 1,333,143 6,342,455 (5,009,312) Invesco V.I. Mid Cap Core Equity Fund 2,731,591 10,131,569 (7,399,978) Invesco V.I. Small Cap Equity Fund 250,274 900,251 (649,977) Invesco V.I. Balanced Risk Allocation Fund 506,958 90,259 416,699 Invesco V.I. Diversified Dividend Fund* -- 35 (35) American Century VP Mid Cap Value Fund 3,881 118 3,763 American Funds Global Bond Fund 745,766 1,999,698 (1,253,932) American Funds Global Growth and Income Fund 487,286 2,335,753 (1,848,467) American Funds Asset Allocation Fund 977,831 4,644,792 (3,666,961) American Funds Blue Chip Income and Growth Fund 8,092,382 28,151,992 (20,059,610) American Funds Bond Fund 1,767,385 4,462,267 (2,694,882) American Funds Global Growth Fund 287,311 1,257,854 (970,543) American Funds Growth Fund 1,446,855 13,385,779 (11,938,924) American Funds Growth-Income Fund 987,646 11,224,656 (10,237,010) American Funds International Fund 473,911 3,165,334 (2,691,423) American Funds New World Fund 269,108 955,516 (686,408) American Funds Global Small Capitalization Fund 223,999 1,023,914 (799,915) Sterling Capital Strategic Allocation Equity VIF 17 17 -- Sterling Capital Select Equity VIF 2,996 2 2,994 Sterling Capital Special Opportunities VIF 8,673 27,042 (18,369) Sterling Capital Total Return Bond VIF 8,201 17,164 (8,963) Columbia Variable Portfolio -- Small Company Growth Fund 159,879 1,156,546 (996,667) Wells Fargo Advantage VT Omega Growth Fund 763,960 335,255 428,705 Fidelity VIP Growth Portfolio 15,056 47,588 (32,532) Fidelity VIP Contrafund(R) Portfolio 315,207 496,142 (180,935) Fidelity VIP Mid Cap Portfolio 93,510 228,317 (134,807) Fidelity VIP Value Strategies Portfolio 30,656 71,306 (40,650) Fidelity VIP Dynamic Capital Appreciation Portfolio 28,293 20,056 8,237 Fidelity VIP Strategic Income Portfolio 3,910 499 3,411 Franklin Rising Dividends Securities Fund 986,008 4,082,309 (3,096,301) Franklin Income Securities Fund 1,363,377 11,292,557 (9,929,180) Franklin Large Cap Growth Securities Fund 356,879 1,261,400 (904,521) Franklin Global Real Estate Securities Fund 7,664 20,458 (12,794) Franklin Small-Mid Cap Growth Securities Fund 655,630 2,104,840 (1,449,210) Franklin Small Cap Value Securities Fund 367,153 656,944 (289,791)
SA-169 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Franklin Strategic Income Securities Fund 1,364,437 3,084,566 (1,720,129) Mutual Shares Securities Fund 701,722 6,504,092 (5,802,370) Templeton Developing Markets Securities Fund 281,762 897,266 (615,504) Templeton Foreign Securities Fund 1,916,772 4,193,170 (2,276,398) Templeton Growth Securities Fund 562,573 5,106,697 (4,544,124) Mutual Global Discovery Securities Fund 369,717 1,699,658 (1,329,941) Franklin Flex Cap Growth Securities Fund 270,315 567,903 (297,588) Franklin Large Cap Value Securities Fund 164,239 272,996 (108,757) Templeton Global Bond Securities Fund 255,718 300,451 (44,733) Hartford Balanced HLS Fund* 669,718 3,017,846 (2,348,128) Hartford Total Return Bond HLS Fund 2,707,608 7,485,193 (4,777,585) Hartford Capital Appreciation HLS Fund 1,309,966 5,951,760 (4,641,794) Hartford Dividend and Growth HLS Fund 770,403 5,166,075 (4,395,672) Hartford Global Research HLS Fund 10,728 18,126 (7,398) Hartford Healthcare HLS Fund 163 50,805 (50,642) Hartford Global Growth HLS Fund 13,489 41,972 (28,483) Hartford Disciplined Equity HLS Fund 60,843 287,449 (226,606) Hartford Growth HLS Fund 52,556 56,992 (4,436) Hartford Growth Opportunities HLS Fund 210,427 655,899 (445,472) Hartford High Yield HLS Fund 192,108 153,683 38,425 Hartford Index HLS Fund 431,108 27,373 403,735 Hartford International Opportunities HLS Fund 237,885 746,709 (508,824) Hartford Small/Mid Cap Equity HLS Fund 22,781 66,563 (43,782) Hartford MidCap HLS Fund 2,899 66,501 (63,602) Hartford MidCap Value HLS Fund 13,362 39,985 (26,623) Hartford Money Market HLS Fund 124,531,975 174,379,823 (49,847,848) Hartford Small Company HLS Fund 74,399 486,004 (411,605) Hartford SmallCap Growth HLS Fund 13,540 104,567 (91,027) Hartford Stock HLS Fund 140,140 2,946,933 (2,806,793) Hartford U.S. Government Securities HLS Fund 189,745 636,333 (446,588) Hartford Value HLS Fund 30,012 28,387 1,625 American Funds Asset Allocation HLS Fund 267,607 379,868 (112,261) American Funds Blue Chip Income and Growth HLS Fund 71,332 129,301 (57,969) American Funds Bond HLS Fund 389,412 438,956 (49,544) American Funds Global Bond HLS Fund 47,310 98,909 (51,599) American Funds Global Growth and Income HLS Fund 42,734 293,316 (250,582) American Funds Global Growth HLS Fund 27,882 126,682 (98,800) American Funds Global Small Capitalization HLS Fund 88,377 168,300 (79,923) American Funds Growth HLS Fund 512,716 994,604 (481,888) American Funds Growth-Income HLS Fund 340,593 598,030 (257,437) American Funds International HLS Fund 454,405 659,853 (205,448) American Funds New World HLS Fund 47,623 212,738 (165,115) Hartford Portfolio Diversifier HLS Fund 4,213,865 224,725 3,989,140 Huntington VA Income Equity Fund 188,698 183,912 4,786 Huntington VA Dividend Capture Fund 243,901 340,947 (97,046) Huntington VA Growth Fund 85,703 250,613 (164,910) Huntington VA Mid Corp America Fund* 1,019,057 1,567,213 (548,156) Huntington VA Rotating Markets Fund 11,871 70,012 (58,141) Huntington VA International Equity Fund 167,900 231,511 (63,611)
SA-170 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Huntington VA Macro 100 Fund 170,064 171,014 (950) Huntington VA Mortgage Securities Fund 166,733 97,030 69,703 Huntington VA Situs Fund 137,439 638,316 (500,877) Lord Abbett Fundamental Equity Fund 81,271 16,582 64,689 Lord Abbett Calibrated Dividend Growth Fund* 22,716 29,492 (6,776) Lord Abbett Bond Debenture Fund 151,636 202,600 (50,964) Lord Abbett Growth and Income Fund 9,204 83,056 (73,852) MFS(R) Core Equity Series 135,136 255,209 (120,073) MFS(R) Growth Series 814,989 985,426 (170,437) MFS(R) Global Equity Series 130,665 157,254 (26,589) MFS(R) High Income Series 1,107,151 1,521,390 (414,239) MFS(R) Investors Growth Stock Series 258,394 567,962 (309,568) MFS(R) Investors Trust Series 491,076 3,213,638 (2,722,562) MFS(R) Mid Cap Growth Series 673,720 1,358,438 (684,718) MFS(R) New Discovery Series 365,591 1,534,242 (1,168,651) MFS(R) Total Return Series 1,208,875 5,423,445 (4,214,570) MFS(R) Value Series 751,247 1,519,624 (768,377) MFS(R) Research Bond Series 1,688,869 2,031,220 (342,351) MFS(R) Research International Series 162,483 383,325 (220,842) MFS(R) Research Series 172,213 212,535 (40,322) BlackRock Global Allocation V.I. Fund 8,048 678 7,370 BlackRock Global Opportunities V.I. Fund 1,462 1,485 (23) BlackRock Large Cap Growth V.I. Fund 287 6,007 (5,720) BlackRock Equity Dividend V.I. Fund 85,040 6,272 78,768 UIF Mid Cap Growth Portfolio 21,927 85,392 (63,465) Invesco Van Kampen V.I. American Value Fund* 26,655 28,745 (2,090) Morgan Stanley -- Focus Growth Portfolio 589 -- 589 Morgan Stanley Multi Cap Growth Portfolio 4,145 3,588 557 Morgan Stanley -- Mid Cap Growth Portfolio 2,588 983 1,605 Morgan Stanley -- Flexible Income Portfolio -- 56 (56) Wilmington Managed Allocation Fund -- Moderate Growth II* -- 1,667 (1,667) BlackRock Capital Appreciation V.I. Fund 92,640 8,786 83,854 Columbia Variable Portfolio -- Marsico International Opportunities Fund 232,975 1,412,662 (1,179,687) Columbia Variable Portfolio -- High Income Fund 183,921 1,215,347 (1,031,426) Columbia Variable Portfolio -- Marsico Focused Equities Fund 149,302 1,487,583 (1,338,281) Columbia Variable Portfolio -- Asset Allocation Fund 103,439 823,103 (719,664) Columbia Variable Portfolio -- Marsico Growth Fund 216,745 1,653,546 (1,436,801) Columbia Variable Portfolio -- Marsico 21st Century Fund 20,443 419,566 (399,123) Columbia Variable Portfolio -- Mid Cap Growth Fund 196,562 2,295,737 (2,099,175) Columbia Variable Portfolio -- Dividend Opportunity Fund* 60,124 220,940 (160,816) Oppenheimer Capital Appreciation Fund/VA 8,299 8,561 (262) Oppenheimer Global Securities Fund/VA 52,600 157,153 (104,553) Oppenheimer Main Street Fund(R)/VA 9,096 14,605 (5,509) Oppenheimer Main Street Small- & Mid-Cap Fund/VA 29,569 112,112 (82,543) Oppenheimer Value Fund/VA 562 3,332 (2,770) Putnam VT Diversified Income Fund 244,955 218,992 25,963 Putnam VT Global Asset Allocation Fund 105,506 5,598 99,908 Putnam VT International Value Fund 6,991 15,160 (8,169) Putnam VT International Equity Fund 3,183 3,376 (193)
SA-171 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Putnam VT Investors Fund* -- 28,450 (28,450) Putnam VT Small Cap Value Fund 59,032 84,458 (25,426) Putnam VT Voyager Fund 175,858 53,667 122,191 JPMorgan Insurance Trust Core Bond Portfolio -- 1 692,996 1,350,852 (657,856) JPMorgan Insurance Trust U.S. Equity Portfolio -- 1 36,747 213,797 (177,050) JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1 27,096 143,120 (116,024) JPMorgan Insurance Trust Equity Index Portfolio -- 1 49,500 925,727 (876,227) JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1 33,493 84,174 (50,681) JPMorgan Insurance Trust Mid Cap Growth Portfolio -- 1 47,705 253,852 (206,147) JPMorgan Insurance Trust Mid Cap Value Portfolio -- 1 17,349 171,483 (154,134) Putnam VT Equity Income Fund 443 30,216 (29,773) PIMCO All Asset Portfolio 3,517 127 3,390 PIMCO EqS Pathfinder Portfolio 76,509 4,960 71,549 PIMCO Global Multi-Asset Portfolio* 3,261 2,075 1,186 Jennison 20/20 Focus Portfolio 677 11,979 (11,302) Jennison Portfolio 76 17,547 (17,471) Prudential Value Portfolio 11,074 12,078 (1,004) Prudential Series International Growth Portfolio -- 3 (3) Legg Mason ClearBridge Variable Equity Income Builder Portfolio 498 1,488 (990) Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio 5,418 22,142 (16,724) Western Asset Variable Global High Yield Bond Portfolio* 4,148 8,574 (4,426) Legg Mason ClearBridge Variable Large Cap Value Portfolio 5,555 70,528 (64,973) Invesco Van Kampen V.I. Growth and Income Fund 12,239 24,244 (12,005) Invesco Van Kampen V.I. Comstock Fund -- 4,236 (4,236) Invesco Van Kampen V.I. American Franchise Fund* 2,646,639 15,185,212 (12,538,573) Invesco Van Kampen V.I. Mid Cap Growth Fund* 475,914 683,769 (207,855) Wells Fargo Advantage VT Index Asset Allocation Fund 5,188 10,134 (4,946) Wells Fargo Advantage VT Total Return Bond Fund 3,832 7 3,825 Wells Fargo Advantage VT Intrinsic Value Fund 54 1,698 (1,644) Wells Fargo Advantage VT International Equity Fund 87,914 434,534 (346,620) Wells Fargo Advantage VT Small Cap Growth Fund 10,811 26,667 (15,856) Wells Fargo Advantage VT Discovery Fund 71 40 31 Wells Fargo Advantage VT Small Cap Value Fund 55,484 297,488 (242,004) Wells Fargo Advantage VT Opportunity Fund 68,784 162,863 (94,079)
* See Note 1 for additional information related to this Sub-Account. SA-172 ------------------------------------------------------------------------------- The changes in units outstanding for the year ended December 31, 2011 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- American Century VP Value Fund 33,010 2,409 30,601 AllianceBernstein VPS Balanced Wealth Strategy Portfolio 134,947 107,684 27,263 AllianceBernstein VPS International Value Portfolio 210,438 147,908 62,530 AllianceBernstein VPS Small/Mid-Cap Value Portfolio 42,576 52,464 (9,888) AllianceBernstein VPS Value Portfolio 7,607 2,678 4,929 AllianceBernstein VPS International Growth Portfolio 15,437 20,877 (5,440) Invesco V.I. Basic Value Fund 2,643,829 10,973,700 (8,329,871) Invesco V.I. Capital Appreciation Fund 1,238,230 5,000,870 (3,762,640) Invesco V.I. Core Equity Fund 791,490 2,098,775 (1,307,285) Invesco V.I. Government Securities Fund 37,489,127 82,616,488 (45,127,361) Invesco V.I. High Yield Fund 121,770 268,824 (147,054) Invesco V.I. International Growth Fund 2,924,699 6,655,368 (3,730,669) Invesco V.I. Mid Cap Core Equity Fund 3,652,375 14,168,261 (10,515,886) Invesco V.I. Small Cap Equity Fund 898,150 1,098,243 (200,093) Invesco V.I. Capital Development Fund 627,083 419,992 207,091 Invesco V.I. Balanced Risk Allocation Fund 305,905 138,709 167,196 Invesco V.I. Dividend Growth Fund 588 576 12 American Century VP Mid Cap Value Fund 2,098 94 2,004 American Funds Global Bond Fund 2,002,344 2,420,995 (418,651) American Funds Global Growth and Income Fund 628,768 2,454,639 (1,825,871) American Funds Asset Allocation Fund 1,805,959 5,817,570 (4,011,611) American Funds Blue Chip Income and Growth Fund 7,815,520 30,135,185 (22,319,665) American Funds Bond Fund 1,749,089 5,780,957 (4,031,868) American Funds Global Growth Fund 445,416 1,793,727 (1,348,311) American Funds Growth Fund 3,011,548 16,758,296 (13,746,748) American Funds Growth-Income Fund 2,294,624 12,380,608 (10,085,984) American Funds International Fund 1,043,865 3,557,848 (2,513,983) American Funds New World Fund 472,769 1,471,845 (999,076) American Funds Global Small Capitalization Fund 465,750 1,638,808 (1,173,058) Sterling Capital Strategic Allocation Equity VIF 32 55 (23) Sterling Capital Select Equity VIF -- 27 (27) Sterling Capital Special Opportunities VIF 4,430 13,987 (9,557) Sterling Capital Total Return Bond VIF 13,568 14,898 (1,330) Columbia Variable Portfolio -- Small Company Growth Fund 367,277 2,267,983 (1,900,706) Wells Fargo Advantage VT Omega Growth Fund 305,083 248,105 56,978 Fidelity VIP Growth Portfolio 76,321 38,806 37,515 Fidelity VIP Contrafund(R) Portfolio 337,058 256,179 80,879 Fidelity VIP Mid Cap Portfolio 171,661 196,334 (24,673) Fidelity VIP Value Strategies Portfolio 72,224 53,678 18,546 Fidelity VIP Dynamic Capital Appreciation Portfolio 6,458 8,366 (1,908) Fidelity VIP Strategic Income Portfolio 1,004 8 996 Franklin Rising Dividends Securities Fund 1,695,159 4,337,987 (2,642,828) Franklin Income Securities Fund 2,326,073 11,731,084 (9,405,011) Franklin Large Cap Growth Securities Fund 430,182 1,316,263 (886,081) Franklin Global Real Estate Securities Fund 5,353 19,013 (13,660) Franklin Small-Mid Cap Growth Securities Fund 1,278,801 3,011,053 (1,732,252) Franklin Small Cap Value Securities Fund 705,903 860,553 (154,650)
SA-173 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Franklin Strategic Income Securities Fund 2,282,012 4,236,545 (1,954,533) Mutual Shares Securities Fund 1,085,887 6,816,418 (5,730,531) Templeton Developing Markets Securities Fund 667,847 1,478,779 (810,932) Templeton Foreign Securities Fund 1,972,429 3,655,442 (1,683,013) Templeton Growth Securities Fund 708,458 5,169,957 (4,461,499) Mutual Global Discovery Securities Fund 751,867 1,884,979 (1,133,112) Franklin Flex Cap Growth Securities Fund 367,922 624,446 (256,524) Franklin Large Cap Value Securities Fund 176,114 283,486 (107,372) Templeton Global Bond Securities Fund 428,464 326,258 102,206 Hartford Advisers HLS Fund 523,620 2,692,974 (2,169,354) Hartford Total Return Bond HLS Fund 4,913,431 9,953,639 (5,040,208) Hartford Capital Appreciation HLS Fund 2,985,021 7,391,647 (4,406,626) Hartford Dividend and Growth HLS Fund 1,714,254 5,655,073 (3,940,819) Hartford Global Research HLS Fund 5,949 13,042 (7,093) Hartford Healthcare HLS Fund 440 34,215 (33,775) Hartford Global Growth HLS Fund 10,756 138,615 (127,859) Hartford Disciplined Equity HLS Fund 244,664 227,271 17,393 Hartford Growth HLS Fund 35,726 25,126 10,600 Hartford Growth Opportunities HLS Fund 607,475 612,315 (4,840) Hartford High Yield HLS Fund 329,488 157,393 172,095 Hartford Index HLS Fund 15,066 22,535 (7,469) Hartford International Opportunities HLS Fund 309,545 760,965 (451,420) Hartford Small/Mid Cap Equity HLS Fund 58,175 68,342 (10,167) Hartford MidCap HLS Fund 5,523 117,055 (111,532) Hartford MidCap Value HLS Fund 31,915 82,134 (50,219) Hartford Money Market HLS Fund 217,899,825 230,838,104 (12,938,279) Hartford Small Company HLS Fund 302,510 891,728 (589,218) Hartford SmallCap Growth HLS Fund 123,264 35,686 87,578 Hartford Stock HLS Fund 724,703 2,973,022 (2,248,319) Hartford U.S. Government Securities HLS Fund 260,546 371,245 (110,699) Hartford Value HLS Fund 18,538 21,884 (3,346) American Funds Asset Allocation HLS Fund 246,642 116,437 130,205 American Funds Blue Chip Income and Growth HLS Fund 51,090 73,950 (22,860) American Funds Bond HLS Fund 427,439 661,731 (234,292) American Funds Global Bond HLS Fund 71,273 81,741 (10,468) American Funds Global Growth and Income HLS Fund 66,031 203,150 (137,119) American Funds Global Growth HLS Fund 102,327 105,608 (3,281) American Funds Global Small Capitalization HLS Fund 195,959 215,648 (19,689) American Funds Growth HLS Fund 689,735 800,775 (111,040) American Funds Growth-Income HLS Fund 390,616 518,496 (127,880) American Funds International HLS Fund 913,818 373,514 540,304 American Funds New World HLS Fund 114,926 225,035 (110,109) Hartford Portfolio Diversifier HLS Fund 742,247 12,596 729,651 Huntington VA Income Equity Fund 113,043 372,069 (259,026) Huntington VA Dividend Capture Fund 311,390 342,182 (30,792) Huntington VA Growth Fund 154,389 304,499 (150,110) Huntington VA Mid Corp America Fund 50,452 189,967 (139,515) Huntington VA New Economy Fund 78,065 252,060 (173,995) Huntington VA Rotating Markets Fund 4,207 34,958 (30,751)
SA-174 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Huntington VA International Equity Fund 98,052 253,708 (155,656) Huntington VA Macro 100 Fund 64,840 214,438 (149,598) Huntington VA Mortgage Securities Fund 62,961 193,046 (130,085) Huntington VA Situs Fund 187,166 761,765 (574,599) Lord Abbett Fundamental Equity Fund 74,622 6,863 67,759 Lord Abbett Capital Structure Fund 70,958 38,578 32,380 Lord Abbett Bond Debenture Fund 95,681 186,183 (90,502) Lord Abbett Growth and Income Fund 8,275 21,136 (12,861) MFS(R) Core Equity Series 230,504 362,081 (131,577) MFS(R) Growth Series 635,371 829,604 (194,233) MFS(R) Global Equity Series 154,911 203,744 (48,833) MFS(R) High Income Series 1,141,174 2,121,670 (980,496) MFS(R) Investors Growth Stock Series 273,520 535,033 (261,513) MFS(R) Investors Trust Series 950,535 3,043,428 (2,092,893) MFS(R) Mid Cap Growth Series 566,541 1,790,289 (1,223,748) MFS(R) New Discovery Series 1,202,532 2,128,169 (925,637) MFS(R) Total Return Series 2,775,134 6,352,051 (3,576,917) MFS(R) Value Series 899,864 1,334,178 (434,314) MFS(R) Research Bond Series 2,300,886 2,084,517 216,369 MFS(R) Research International Series 277,944 369,431 (91,487) MFS(R) Research Series 118,855 165,910 (47,055) BlackRock Global Allocation V.I. Fund 1,934 -- 1,934 BlackRock Global Opportunities V.I. Fund 1,143 1,633 (490) BlackRock Large Cap Growth V.I. Fund 280 3,709 (3,429) BlackRock Equity Dividend V.I. Fund 13,137 1,951 11,186 UIF Mid Cap Growth Portfolio 95,371 78,651 16,720 Invesco Van Kampen V.I. Mid Cap Value Fund 26,909 45,206 (18,297) Morgan Stanley -- Focus Growth Portfolio -- 817 (817) Morgan Stanley Multi Cap Growth Portfolio 3,936 11,636 (7,700) Morgan Stanley -- Mid Cap Growth Portfolio 12,672 1,082 11,590 Morgan Stanley -- Flexible Income Portfolio 2,731 32 2,699 MTB Managed Allocation Fund -- Moderate Growth II -- -- -- BlackRock Capital Appreciation V.I. Fund 13,859 1,717 12,142 Columbia Variable Portfolio -- Marsico International Opportunities Fund 369,156 2,457,060 (2,087,904) Columbia Variable Portfolio -- High Income Fund 381,103 1,570,089 (1,188,986) Columbia Variable Portfolio -- Marsico Focused Equities Fund 163,660 2,452,218 (2,288,558) Columbia Variable Portfolio -- Asset Allocation Fund 667,386 488,161 179,225 Columbia Variable Portfolio -- Marsico Growth Fund 195,158 2,152,275 (1,957,117) Columbia Variable Portfolio -- Marsico 21st Century Fund 169,333 708,768 (539,435) Columbia Variable Portfolio -- Mid Cap Growth Fund 523,806 4,119,052 (3,595,246) Columbia Variable Portfolio -- Diversified Equity Income Fund 1,597,598 12,515,698 (10,918,100) Oppenheimer Capital Appreciation Fund/VA 3,163 13,577 (10,414) Oppenheimer Global Securities Fund/VA 40,153 99,101 (58,948) Oppenheimer Main Street Fund(R)/VA 11,663 23,391 (11,728) Oppenheimer Main Street Small- & Mid-Cap Fund/VA 56,698 104,443 (47,745) Oppenheimer Value Fund/VA 3,470 1,924 1,546 Putnam VT Diversified Income Fund 189,891 256,697 (66,806) Putnam VT Global Asset Allocation Fund 11,195 2,647 8,548 Putnam VT International Value Fund 25,158 770 24,388
SA-175 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) -------------------------------------------------------------------------------- Putnam VT International Equity Fund 9,747 2,301 7,446 Putnam VT Investors Fund 28,450 -- 28,450 Putnam VT Small Cap Value Fund 128,991 6,385 122,606 Putnam VT Voyager Fund 56,670 1,752 54,918 JPMorgan Insurance Trust Core Bond Portfolio -- 1 894,973 1,469,219 (574,246) JPMorgan Insurance Trust U.S. Equity Portfolio -- 1 64,461 140,287 (75,826) JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1 82,462 141,384 (58,922) JPMorgan Insurance Trust Equity Index Portfolio -- 1 228,011 629,985 (401,974) JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1 44,064 72,368 (28,304) JPMorgan Insurance Trust Mid Cap Growth Portfolio -- 1 136,575 212,702 (76,127) JPMorgan Insurance Trust Mid Cap Value Portfolio -- 1 44,900 147,603 (102,703) Putnam VT Equity Income Fund 31,532 -- 31,532 PIMCO All Asset Portfolio 11,281 -- 11,281 PIMCO EqS Pathfinder Portfolio 11,597 1,424 10,173 Jennison 20/20 Focus Portfolio 7,443 3,699 3,744 Jennison Portfolio 5,871 59,401 (53,530) Prudential Value Portfolio 69 6,307 (6,238) Prudential Series International Growth Portfolio 25 2,003 (1,978) Legg Mason ClearBridge Variable Equity Income Builder Portfolio 157 3,381 (3,224) Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio 729 23,018 (22,289) Legg Mason Western Asset Variable Global High Yield Bond Portfolio 1,057 14,033 (12,976) Legg Mason ClearBridge Variable Large Cap Value Portfolio 3,487 30,231 (26,744) Invesco Van Kampen V.I. Growth and Income Fund 15,333 24,826 (9,493) Invesco Van Kampen V.I. Comstock Fund 27 733 (706) Invesco Van Kampen V.I. Capital Growth Fund 1,959,963 2,005,459 (45,496) Wells Fargo Advantage VT Index Asset Allocation Fund -- -- -- Wells Fargo Advantage VT Total Return Bond Fund -- -- -- Wells Fargo Advantage VT Intrinsic Value Fund 369 2,046 (1,677) Wells Fargo Advantage VT International Equity Fund 150,579 246,123 (95,544) Wells Fargo Advantage VT Small Cap Growth Fund 42,998 49,482 (6,484) Wells Fargo Advantage VT Discovery Fund 38 1 37 Wells Fargo Advantage VT Small Cap Value Fund 91,648 274,521 (182,873) Wells Fargo Advantage VT Opportunity Fund 1,060,823 4,708,193 (3,647,370)
SA-176 ------------------------------------------------------------------------------- 6. FINANCIAL HIGHLIGHTS: The following is a summary of units, unit fair values, net assets, expense ratios, investment income ratios, and total return ratios representing the lowest and highest contract charges for each of the periods presented within each Sub-Account that had outstanding units as of and for the period ended December 31, 2012. The unit value range presented below represents the unit values of the highest and lowest contract charges, therefore a specific Sub-Account unit value may be outside of the range presented in this table. Financial highlights for net assets allocated to Sub-Accounts that have merged during the period, if applicable, have been shown for the surviving fund.
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE FUND 2012 202,920 $11.108599 to $11.299348 $2,311,580 2011 30,601 9.911162 to 10.534031 304,415 AMERICAN CENTURY VP GROWTH FUND+ 2012 3,296 10.128418 to 10.272868 33,604 ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO 2012 427,286 14.160826 to 14.221715 4,612,246 2011 518,334 12.552780 to 12.887048 4,968,538 2010 491,071 13.013398 to 13.657129 4,865,846 2009 388,226 9.047715 to 12.721089 3,492,638 2008 162,206 7.327822 to 7.429046 1,197,637 ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO 2012 1,249,244 6.429205 to 12.273260 7,847,078 2011 1,276,505 5.678097 to 11.041699 7,122,356 2010 1,213,975 7.108204 to 14.081041 8,531,384 2009 1,142,843 6.873420 to 13.870269 7,804,286 2008 671,581 5.088962 to 5.159378 3,443,863 ALLIANCEBERNSTEIN VPS SMALL/MID-CAP VALUE PORTFOLIO 2012 141,654 17.794803 to 19.155351 1,808,494 2011 142,973 15.095870 to 16.611315 1,541,969 2010 152,861 16.602960 to 18.676302 1,804,581 2009 104,673 9.222123 to 9.435503 986,265 2008 85,144 6.627915 to 6.719459 568,356 ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO 2012 15,551 8.759176 to 9.148443 140,850 2011 24,720 8.017467 to 12.578763 204,373 2010 19,791 8.436920 to 13.390012 174,314 2009 17,731 7.667474 to 12.309621 138,231 2008 13,907 6.350732 to 6.414435 88,914 ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO 2012 145,200 7.870373 to 14.606635 1,144,972 2011 159,656 6.915655 to 13.022116 1,108,656 2010 165,096 8.340904 to 15.935390 1,387,961 2009 157,200 7.500193 to 14.538460 1,187,403 2008 141,574 5.397825 to 5.454337 769,233 INVESCO VAN KAMPEN V.I. VALUE OPPORTUNITIES FUND+ 2012 22,874,107 1.290481 to 16.718816 26,765,920 2011 27,890,577 1.105738 to 14.600052 28,254,417 2010 36,220,448 1.150245 to 15.495518 38,592,858 2009 44,071,822 1.080634 to 14.829632 44,576,240 2008 48,428,747 0.665662 to 0.736367 33,715,844 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ AMERICAN CENTURY VP VALUE FUND 2012 0.50% to 1.45% 1.70% to 1.92% 12.93% to 14.01% 2011 0.50% to 1.00% 0.31% to 0.46% (0.89)% to 5.34% AMERICAN CENTURY VP GROWTH FUND+ 2012 0.65% to 1.50% 0.38% to 0.40% 11.80% to 12.75% ALLIANCEBERNSTEIN VPS BALANCED WEALTH STRATEGY PORTFOLIO 2012 0.50% to 2.70% 1.92% to 1.92% 10.36% to 12.81% 2011 0.50% to 2.70% 0.48% to 2.22% (5.64)% to (3.54)% 2010 0.50% to 2.70% 4.84% to 4.84% 7.36% to 9.75% 2009 1.25% to 2.70% 0.87% to 0.87% 21.14% to 22.91% 2008 0.85% to 2.50% 2.40% to 2.40% (29.42)% to (28.64)% ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO 2012 0.85% to 2.70% 1.16% to 1.43% 11.15% to 13.23% 2011 0.85% to 2.70% 3.99% to 4.02% (21.58)% to (20.12)% 2010 0.85% to 2.70% 2.82% to 3.44% 1.52% to 3.42% 2009 0.85% to 2.70% 1.38% to 2.23% 30.78% to 33.22% 2008 0.85% to 2.50% -- to -- (52.73)% to (52.21)% ALLIANCEBERNSTEIN VPS SMALL/MID-CAP VALUE PORTFOLIO 2012 0.50% to 2.70% 0.28% to 0.29% 15.32% to 17.88% 2011 0.50% to 2.70% 0.20% to 0.23% (11.06)% to (9.08)% 2010 0.50% to 2.70% -- to -- 23.22% to 25.96% 2009 1.25% to 2.50% 0.86% to 0.88% 39.14% to 40.89% 2008 0.85% to 2.50% -- to -- (38.49)% to (37.81)% ALLIANCEBERNSTEIN VPS VALUE PORTFOLIO 2012 1.25% to 2.15% 0.76% to 1.70% 13.08% to 14.11% 2011 1.25% to 2.40% 1.16% to 1.17% (6.06)% to (4.97)% 2010 1.25% to 2.40% 1.67% to 1.76% 8.78% to 10.04% 2009 1.25% to 2.40% 3.08% to 3.08% 18.17% to 19.54% 2008 1.25% to 2.45% -- to -- (39.78)% to (39.30)% ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO 2012 1.25% to 2.70% 1.40% to 1.46% 12.17% to 13.81% 2011 1.25% to 2.70% 2.75% to 2.77% (18.28)% to (17.09)% 2010 1.25% to 2.70% 1.55% to 1.88% 9.61% to 11.21% 2009 1.25% to 2.70% 4.61% to 4.61% 35.53% to 37.51% 2008 1.25% to 2.50% -- to -- (48.31)% to (47.88)% INVESCO VAN KAMPEN V.I. VALUE OPPORTUNITIES FUND+ 2012 0.85% to 2.75% 1.51% to 1.60% 14.51% to 16.71% 2011 0.85% to 2.75% 0.89% to 0.91% (5.68)% to (3.87)% 2010 0.85% to 2.70% 0.59% to 0.90% 4.49% to 6.44% 2009 0.85% to 2.70% 1.73% to 3.69% 44.07% to 46.75% 2008 0.85% to 2.55% 0.90% to 0.91% (52.98)% to (52.18)%
SA-177 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- INVESCO V.I. CORE EQUITY FUND 2012 4,916,451 $14.578328 to $14.694872 $56,353,721 2011 6,273,601 12.998894 to 13.157943 64,528,774 2010 7,580,886 12.285289 to 13.533453 80,092,705 2009 8,445,525 11.309508 to 12.704451 84,019,331 2008 9,308,015 8.328570 to 8.890218 70,267,207 INVESCO V.I. GOVERNMENT SECURITIES FUND 2012 175,871,974 1.493465 to 10.782357 241,587,716 2011 196,180,461 1.469836 to 10.815243 267,497,204 2010 241,307,822 1.373740 to 10.301986 309,357,797 2009 266,427,437 1.314467 to 10.052014 330,327,193 2008 326,274,700 1.198564 to 1.325847 410,643,097 INVESCO V.I. HIGH YIELD FUND 2012 708,040 1.841423 to 19.414644 1,384,690 2011 746,091 1.598468 to 17.030880 1,169,943 2010 893,145 1.610383 to 17.338981 1,540,721 2009 802,543 1.355162 to 1.442230 1,120,889 2008 793,825 0.909386 to 0.960119 741,459 INVESCO V.I. INTERNATIONAL GROWTH FUND 2012 24,773,236 14.454160 to 15.681292 62,682,241 2011 29,782,548 12.603920 to 13.951354 63,954,402 2010 33,509,828 13.619296 to 15.377007 76,089,512 2009 37,300,898 8.606602 to 14.012034 74,364,837 2008 39,248,388 1.289787 to 6.433855 56,274,290 INVESCO V.I. MID CAP CORE EQUITY FUND 2012 30,698,856 14.042863 to 14.166487 54,019,726 2011 38,098,834 12.758355 to 13.123601 61,453,126 2010 48,614,720 13.714290 to 14.408598 85,178,146 2009 54,318,440 1.668104 to 12.985726 84,843,363 2008 58,997,031 1.167979 to 1.291991 72,100,957 INVESCO V.I. SMALL CAP EQUITY FUND 2012 2,409,209 16.506273 to 16.527510 38,131,991 2011 3,059,186 14.614533 to 14.896566 43,377,847 2010 3,259,279 14.833667 to 15.423915 47,687,718 2009 3,291,508 9.079939 to 12.340587 38,521,394 2008 3,191,364 9.512314 to 10.335807 31,445,022 INVESCO V.I. BALANCED RISK ALLOCATION FUND 2012 674,601 11.669377 to 12.138297 8,019,261 2011 257,902 10.835695 to 11.025993 2,816,976 INVESCO V.I. DIVERSIFIED DIVIDEND FUND+ 2012 553 11.244674 to 11.244674 6,221 2011 588 9.662464 to 9.662464 5,679 AMERICAN CENTURY VP MID CAP VALUE FUND 2012 5,767 11.076042 to 11.279374 65,223 2011 2,004 9.668754 to 9.753198 19,524 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ INVESCO V.I. CORE EQUITY FUND 2012 0.50% to 2.75% 0.95% to 1.17% 10.79% to 13.05% 2011 0.50% to 2.75% 0.12% to 0.99% (2.77)% to (0.79)% 2010 0.85% to 2.75% 0.95% to 0.97% 6.58% to 8.63% 2009 0.85% to 2.70% 1.87% to 1.87% 24.88% to 27.21% 2008 0.85% to 2.55% 0.09% to 0.33% (31.90)% to (30.73)% INVESCO V.I. GOVERNMENT SECURITIES FUND 2012 0.85% to 2.75% 3.14% to 4.17% (0.30)% to 1.61% 2011 0.85% to 2.75% 2.92% to 3.60% 4.98% to 7.00% 2010 0.85% to 2.75% 5.13% to 5.42% 2.54% to 4.51% 2009 0.85% to 2.70% 4.07% to 16.26% (2.68)% to (0.86)% 2008 0.85% to 2.55% 4.76% to 8.58% 9.48% to 11.36% INVESCO V.I. HIGH YIELD FUND 2012 1.70% to 2.75% 4.73% to 5.18% 14.00% to 15.20% 2011 1.70% to 2.75% 6.42% to 6.96% (1.78)% to (0.74)% 2010 1.70% to 2.75% 9.91% to 10.33% 10.49% to 11.66% 2009 1.70% to 2.50% 7.77% to 8.95% 49.02% to 50.21% 2008 1.70% to 2.50% 4.89% to 7.28% (27.53)% to (26.95)% INVESCO V.I. INTERNATIONAL GROWTH FUND 2012 0.50% to 2.75% 1.35% to 1.61% 12.40% to 14.68% 2011 0.50% to 2.75% 0.88% to 1.54% (9.27)% to (7.46)% 2010 0.50% to 2.75% 0.98% to 0.98% 9.80% to 12.05% 2009 0.85% to 2.70% 0.20% to 2.78% 31.64% to 33.77% 2008 0.85% to 2.55% 0.88% to 1.32% (41.88)% to (37.64)% INVESCO V.I. MID CAP CORE EQUITY FUND 2012 0.50% to 2.75% -- to 0.07% 7.95% to 10.07% 2011 0.50% to 2.75% 0.09% to 0.32% (8.92)% to (6.97)% 2010 0.50% to 2.75% 0.15% to 0.15% 11.02% to 13.21% 2009 0.85% to 2.70% 1.41% to 5.69% 26.75% to 29.11% 2008 0.85% to 2.55% 1.15% to 1.49% (30.32)% to (29.12)% INVESCO V.I. SMALL CAP EQUITY FUND 2012 0.50% to 2.75% -- to -- 10.81% to 13.09% 2011 0.50% to 2.75% -- to -- (3.42)% to (1.48)% 2010 0.50% to 2.75% -- to -- 25.05% to 27.57% 2009 0.85% to 2.70% 0.16% to 0.79% 18.06% to 19.87% 2008 0.95% to 2.55% -- to -- (33.04)% to (31.96)% INVESCO V.I. BALANCED RISK ALLOCATION FUND 2012 0.50% to 2.70% 0.28% to 0.82% 7.69% to 10.09% 2011 0.50% to 2.70% -- to -- 8.36% to 10.26% INVESCO V.I. DIVERSIFIED DIVIDEND FUND+ 2012 1.70% to 1.70% 1.84% to 1.84% 16.37% to 16.37% 2011 1.70% to 1.70% -- to -- (3.38)% to (3.38)% AMERICAN CENTURY VP MID CAP VALUE FUND 2012 0.50% to 1.45% 1.99% to 2.03% 14.56% to 15.65% 2011 0.50% to 1.45% 0.89% to 1.01% (3.31)% to (2.47)%
SA-178 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND FUND 2012 5,501,480 $12.261101 to $14.065520 $73,105,787 2011 6,755,412 11.867867 to 13.358243 85,944,799 2010 7,174,063 11.669181 to 12.887393 88,889,078 2009 7,357,633 11.398168 to 12.351206 88,216,492 2008 7,334,791 10.931491 to 11.355894 81,616,048 AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND 2012 7,229,938 12.061955 to 16.514694 82,482,066 2011 9,078,405 10.348118 to 14.439786 89,491,258 2010 10,904,276 10.968761 to 15.616120 114,813,629 2009 11,829,859 9.896204 to 14.351903 113,334,310 2008 12,569,758 6.817920 to 7.143265 87,668,261 AMERICAN FUNDS ASSET ALLOCATION FUND 2012 16,290,731 15.080782 to 17.275233 242,309,617 2011 19,957,692 13.347677 to 14.994844 260,059,129 2010 23,969,303 13.551269 to 14.929411 313,497,451 2009 27,411,030 12.400343 to 13.383137 324,009,646 2008 30,936,194 9.236588 to 10.886366 300,456,558 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND 2012 92,331,247 1.231691 to 15.051344 104,124,798 2011 112,390,857 1.090768 to 13.584833 113,273,595 2010 134,710,522 1.110089 to 14.090962 139,307,202 2009 155,129,464 0.996705 to 12.894155 145,184,245 2008 173,662,870 0.708958 to 0.785507 129,288,586 AMERICAN FUNDS BOND FUND 2012 15,660,878 12.424779 to 17.192190 240,330,684 2011 18,355,760 12.119852 to 16.454705 271,699,885 2010 22,387,628 11.741132 to 15.640595 317,448,285 2009 24,690,784 11.337777 to 14.819093 334,815,026 2008 24,895,637 11.336185 to 13.272523 305,335,613 AMERICAN FUNDS GLOBAL GROWTH FUND 2012 4,867,907 16.875417 to 18.937743 77,324,762 2011 5,838,450 14.152477 to 15.583345 76,861,299 2010 7,186,761 15.966312 to 17.249203 105,252,865 2009 8,574,573 14.686092 to 15.567817 113,978,572 2008 9,078,816 7.177236 to 11.033186 86,924,710 AMERICAN FUNDS GROWTH FUND 2012 47,094,015 16.857195 to 17.268006 608,651,148 2011 59,032,939 14.420984 to 15.055605 655,087,898 2010 72,779,687 15.194005 to 16.167182 854,449,095 2009 84,074,761 12.911636 to 14.001885 846,624,915 2008 91,418,142 5.694785 to 9.340560 673,837,383 AMERICAN FUNDS GROWTH-INCOME FUND 2012 39,352,298 15.513115 to 16.570647 549,702,685 2011 49,589,308 13.572639 to 14.225175 598,947,672 2010 59,675,292 14.211420 to 14.614120 745,868,391 2009 68,951,723 13.109413 to 13.227376 785,763,429 2008 76,824,174 8.412561 to 10.164721 678,624,435 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ AMERICAN FUNDS GLOBAL BOND FUND 2012 0.85% to 2.75% 1.74% to 2.10% 3.31% to 5.29% 2011 0.85% to 2.75% 2.70% to 4.07% 1.70% to 3.65% 2010 0.85% to 2.75% 2.72% to 6.54% 2.38% to 4.34% 2009 0.85% to 2.75% 1.06% to 1.66% 7.08% to 8.77% 2008 0.85% to 2.55% 5.30% to 7.67% 0.88% to 2.61% AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND 2012 0.85% to 2.75% 2.38% to 3.29% 14.37% to 16.56% 2011 0.85% to 2.75% 2.19% to 2.54% (7.44)% to (5.66)% 2010 0.85% to 2.70% 2.60% to 2.73% 8.81% to 10.84% 2009 0.85% to 2.70% 1.71% to 2.45% 36.00% to 38.54% 2008 0.85% to 2.55% 0.78% to 2.42% (42.65)% to (41.67)% AMERICAN FUNDS ASSET ALLOCATION FUND 2012 0.85% to 2.80% 1.87% to 1.95% 12.98% to 15.21% 2011 0.85% to 2.80% 1.55% to 1.89% (1.50)% to 0.44% 2010 0.85% to 2.80% 1.55% to 1.89% 9.40% to 11.55% 2009 0.85% to 2.70% 2.22% to 7.97% 20.68% to 22.94% 2008 0.85% to 2.55% 2.40% to 3.06% (31.29)% to (30.11)% AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND 2012 0.85% to 2.75% 1.91% to 2.19% 10.80% to 12.92% 2011 0.85% to 2.75% 1.78% to 1.91% (3.59)% to (1.74)% 2010 0.85% to 2.75% 1.72% to 1.89% 9.28% to 11.38% 2009 0.85% to 2.75% 1.39% to 2.09% 24.50% to 26.89% 2008 0.85% to 2.55% 1.88% to 2.56% (38.11)% to (37.04)% AMERICAN FUNDS BOND FUND 2012 0.85% to 2.75% 2.43% to 2.58% 2.52% to 4.48% 2011 0.85% to 2.75% 2.84% to 3.35% 3.23% to 5.21% 2010 0.85% to 2.75% 3.07% to 16.30% 3.56% to 5.54% 2009 0.85% to 2.75% 3.37% to 6.56% 9.55% to 11.65% 2008 0.85% to 2.55% 5.01% to 7.74% (11.63)% to (10.12)% AMERICAN FUNDS GLOBAL GROWTH FUND 2012 0.85% to 2.75% 0.90% to 0.92% 19.24% to 21.53% 2011 0.85% to 2.75% 1.08% to 1.49% (11.36)% to (9.66)% 2010 0.85% to 2.75% 1.50% to 2.38% 8.72% to 10.80% 2009 0.85% to 2.75% 1.48% to 1.79% 35.98% to 41.10% 2008 0.85% to 2.55% 1.80% to 1.90% (39.94)% to (38.91)% AMERICAN FUNDS GROWTH FUND 2012 0.85% to 2.75% 0.75% to 0.86% 14.69% to 16.89% 2011 0.85% to 2.75% 0.60% to 0.68% (6.88)% to (5.09)% 2010 0.85% to 2.75% 0.72% to 1.39% 15.46% to 17.68% 2009 0.85% to 2.75% 0.67% to 1.42% 32.14% to 38.23% 2008 0.85% to 2.55% 0.79% to 0.91% (45.39)% to (44.45)% AMERICAN FUNDS GROWTH-INCOME FUND 2012 0.85% to 2.75% 1.53% to 1.76% 14.30% to 16.49% 2011 0.85% to 2.75% 1.37% to 2.06% (4.49)% to (2.66)% 2010 0.85% to 2.75% 1.48% to 2.40% 8.41% to 10.48% 2009 0.85% to 2.75% 1.63% to 2.97% 24.96% to 30.13% 2008 0.85% to 2.55% 1.64% to 1.98% (39.42)% to (38.38)%
SA-179 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND 2012 11,485,798 $14.998581 to $16.156198 $159,016,779 2011 14,177,221 13.075204 to 13.819428 169,374,968 2010 16,691,204 15.621900 to 16.199678 235,548,420 2009 18,754,257 14.982126 to 15.235831 250,870,138 2008 21,058,728 7.140203 to 10.739914 200,567,093 AMERICAN FUNDS NEW WORLD FUND 2012 2,722,685 16.796944 to 30.468166 70,629,591 2011 3,409,093 14.653549 to 26.080232 76,375,757 2010 4,408,169 17.504054 to 30.566229 116,824,292 2009 4,517,294 15.263363 to 26.152525 103,586,854 2008 4,592,499 14.217246 to 17.624614 71,751,140 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND 2012 3,245,033 17.890749 to 20.383203 56,411,255 2011 4,044,948 15.560717 to 17.395051 60,564,986 2010 5,218,006 19.782555 to 21.697525 97,862,424 2009 5,868,465 16.610462 to 17.875929 91,552,717 2008 5,979,813 7.836227 to 11.177252 59,022,521 STERLING CAPITAL STRATEGIC ALLOCATION EQUITY VIF 2012 431 9.322593 to 9.458683 4,023 2011 431 8.381813 to 8.478707 3,618 2010 454 9.221631 to 9.300283 4,193 2009 443 8.178368 to 8.223417 3,624 2008 33 6.658485 to 6.658485 216 STERLING CAPITAL SELECT EQUITY VIF 2012 3,260 9.247316 to 9.382311 30,166 2011 266 8.218125 to 8.313135 2,200 2010 293 8.697414 to 8.771606 2,564 STERLING CAPITAL SPECIAL OPPORTUNITIES VIF 2012 180,209 11.761610 to 17.820243 2,126,145 2011 198,578 9.948620 to 10.416537 2,074,711 2010 208,135 10.568818 to 10.933880 2,299,638 2009 210,121 9.317989 to 9.524881 2,027,539 2008 172,867 6.652817 to 6.719519 1,158,160 STERLING CAPITAL TOTAL RETURN BOND VIF 2012 76,368 12.331151 to 12.581729 953,347 2011 85,331 11.466871 to 12.006207 1,015,821 2010 86,661 11.074495 to 11.457098 988,122 2009 116,453 10.533695 to 10.767656 1,253,511 2008 56,833 9.941791 to 10.041380 569,209 COLUMBIA VARIABLE PORTFOLIO -- SMALL COMPANY GROWTH FUND 2012 4,106,779 1.256731 to 16.061707 5,762,794 2011 5,103,446 1.141271 to 14.747381 6,168,754 2010 7,004,152 1.229017 to 16.073702 8,655,002 2009 9,146,588 0.973756 to 12.883733 8,724,305 2008 11,231,116 0.744658 to 0.788228 8,621,503 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ AMERICAN FUNDS INTERNATIONAL FUND 2012 0.85% to 2.75% 1.44% to 1.69% 14.71% to 16.91% 2011 0.85% to 2.75% 1.85% to 2.13% (16.30)% to (14.69)% 2010 0.85% to 2.75% 2.02% to 3.00% 4.33% to 6.33% 2009 0.85% to 2.70% 1.63% to 4.85% 37.32% to 41.86% 2008 0.85% to 2.55% 2.20% to 2.89% (43.58)% to (42.61)% AMERICAN FUNDS NEW WORLD FUND 2012 0.85% to 2.75% 0.99% to 1.15% 14.63% to 16.82% 2011 0.85% to 2.75% 1.40% to 1.58% (16.28)% to (14.68)% 2010 0.85% to 2.75% 1.30% to 1.60% 14.68% to 16.88% 2009 0.85% to 2.75% 0.65% to 1.48% 45.60% to 48.39% 2008 0.85% to 2.55% 0.88% to 1.22% (43.83)% to (42.86)% AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND 2012 0.85% to 2.75% 1.33% to 1.36% 14.97% to 17.18% 2011 0.85% to 2.75% 1.34% to 1.36% (21.34)% to (19.83)% 2010 0.85% to 2.75% 1.34% to 1.75% 19.10% to 21.38% 2009 0.85% to 2.75% 0.29% to 0.29% 54.22% to 59.93% 2008 0.85% to 2.55% -- to -- (54.70)% to (53.92)% STERLING CAPITAL STRATEGIC ALLOCATION EQUITY VIF 2012 1.65% to 1.95% 0.93% to 0.94% 11.22% to 11.56% 2011 1.65% to 1.95% 0.74% to 0.83% (9.11)% to (8.83)% 2010 1.65% to 1.95% 1.57% to 1.58% 12.76% to 13.10% 2009 1.65% to 1.95% 1.34% to 2.56% 22.83% to 23.20% 2008 1.95% to 1.95% 44.26% to 44.26% (35.99)% to (35.99)% STERLING CAPITAL SELECT EQUITY VIF 2012 1.25% to 1.55% 1.00% to 1.55% 12.52% to 12.86% 2011 1.25% to 1.55% 1.09% to 1.11% (5.51)% to (5.23)% 2010 1.25% to 1.55% 0.70% to 0.70% 10.21% to 10.54% STERLING CAPITAL SPECIAL OPPORTUNITIES VIF 2012 1.25% to 2.40% 0.28% to 0.28% 11.62% to 12.91% 2011 1.25% to 2.45% -- to -- (5.87)% to (4.73)% 2010 1.25% to 2.45% 0.06% to 0.06% 13.42% to 14.79% 2009 1.25% to 2.45% -- to -- 40.06% to 41.75% 2008 1.25% to 2.45% 0.26% to 1.68% (37.22)% to (36.71)% STERLING CAPITAL TOTAL RETURN BOND VIF 2012 1.25% to 2.40% 2.84% to 2.84% 3.60% to 4.79% 2011 1.25% to 2.45% 3.59% to 3.60% 3.54% to 4.79% 2010 1.25% to 2.45% 3.86% to 3.86% 5.13% to 6.40% 2009 1.25% to 2.45% 3.97% to 3.98% 5.95% to 7.23% 2008 1.25% to 2.45% 3.14% to 3.37% (0.41)% to 0.39% COLUMBIA VARIABLE PORTFOLIO -- SMALL COMPANY GROWTH FUND 2012 1.70% to 2.80% -- to -- 8.91% to 10.12% 2011 1.70% to 2.80% -- to -- (8.16)% to (7.14)% 2010 1.70% to 2.75% -- to -- 24.90% to 26.21% 2009 1.70% to 2.65% -- to -- 22.37% to 23.54% 2008 1.70% to 2.55% -- to -- (42.32)% to (41.83)%
SA-180 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OMEGA GROWTH FUND 2012 1,049,531 $15.144945 to $18.771297 $1,149,387 2011 620,826 12.699333 to 15.977806 591,440 2010 563,848 0.816602 to 13.586960 576,988 2009 600,606 0.696835 to 11.484638 524,401 2008 278,910 0.494777 to 8.077427 161,397 FIDELITY VIP GROWTH PORTFOLIO 2012 80,115 10.106895 to 16.590323 822,044 2011 112,647 8.542843 to 8.945576 1,018,966 2010 75,132 8.757723 to 9.061120 688,687 2009 91,120 7.245745 to 7.407453 674,234 2008 41,141 5.802725 to 5.861477 240,121 FIDELITY VIP CONTRAFUND(R) PORTFOLIO 2012 1,947,489 16.176867 to 16.392891 22,688,722 2011 2,128,424 13.998493 to 14.500794 21,466,459 2010 2,047,545 14.471601 to 15.324656 21,142,827 2009 1,846,476 8.568084 to 13.464575 15,856,698 2008 1,248,237 6.291088 to 6.378773 7,911,864 FIDELITY VIP MID CAP PORTFOLIO 2012 1,420,742 15.766099 to 17.285596 16,146,040 2011 1,555,549 13.830958 to 15.501125 15,589,399 2010 1,580,222 15.592494 to 17.864704 18,010,375 2009 1,458,779 12.188298 to 14.274621 13,067,152 2008 880,756 6.374875 to 6.461003 5,653,528 FIDELITY VIP VALUE STRATEGIES PORTFOLIO 2012 92,473 11.678349 to 22.119855 1,103,134 2011 133,123 9.306424 to 17.884524 1,246,163 2010 114,577 10.359870 to 20.200241 1,220,708 2009 74,858 8.303199 to 16.426200 645,335 2008 55,063 5.294088 to 5.349991 293,273 FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO 2012 26,235 10.946791 to 11.601156 298,735 2011 17,998 9.609176 to 15.344167 171,347 2010 19,906 9.754780 to 10.007132 196,373 2009 25,384 8.447292 to 8.588257 215,899 2008 15,435 6.356132 to 6.404294 98,320 FIDELITY VIP STRATEGIC INCOME PORTFOLIO 2012 5,488 13.868175 to 13.941239 76,249 2011 2,077 12.662760 to 12.710400 26,385 2010 1,081 12.229504 to 12.229504 13,216 FRANKLIN RISING DIVIDENDS SECURITIES FUND 2012 16,023,287 15.650299 to 16.576719 265,268,303 2011 19,119,588 14.367859 to 14.903732 287,809,621 2010 21,762,416 13.932857 to 14.144624 314,415,455 2009 22,929,754 11.870451 to 12.799060 279,379,289 2008 25,339,236 10.091165 to 11.000356 267,705,070 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OMEGA GROWTH FUND 2012 1.25% to 2.75% -- to -- 17.48% to 19.26% 2011 1.25% to 2.75% -- to -- (7.92)% to (6.53)% 2010 1.25% to 2.20% 0.47% to 0.83% 17.19% to 18.31% 2009 1.25% to 2.20% 0.42% to 1.22% 40.84% to 42.18% 2008 1.25% to 2.20% -- to -- (28.78)% to (26.39)% FIDELITY VIP GROWTH PORTFOLIO 2012 1.25% to 2.40% 0.34% to 0.36% 11.69% to 12.98% 2011 1.25% to 2.45% 0.13% to 0.14% (2.45)% to (1.28)% 2010 1.25% to 2.45% 0.03% to 0.03% 20.87% to 22.32% 2009 1.25% to 2.45% 0.21% to 0.24% 24.87% to 26.38% 2008 1.25% to 2.45% 1.17% to 3.66% (43.74)% to (43.29)% FIDELITY VIP CONTRAFUND(R) PORTFOLIO 2012 0.50% to 2.70% 1.15% to 1.17% 13.05% to 15.56% 2011 0.50% to 2.70% 0.80% to 1.29% (5.38)% to (3.27)% 2010 0.50% to 2.70% 1.47% to 2.89% 13.82% to 16.34% 2009 0.85% to 2.70% 1.21% to 4.26% 31.86% to 34.32% 2008 0.85% to 2.50% 3.06% to 5.76% (40.61)% to (39.95)% FIDELITY VIP MID CAP PORTFOLIO 2012 0.50% to 2.70% 0.40% to 0.49% 11.51% to 13.99% 2011 0.50% to 2.70% 0.03% to 0.03% (13.23)% to (11.30)% 2010 0.50% to 2.70% 0.17% to 0.37% 25.15% to 27.93% 2009 0.50% to 2.70% 0.91% to 0.91% 21.88% to 36.03% 2008 0.85% to 2.45% 0.44% to 0.73% (37.73)% to (37.06)% FIDELITY VIP VALUE STRATEGIES PORTFOLIO 2012 1.25% to 2.70% 0.36% to 0.37% 23.68% to 25.49% 2011 1.25% to 2.70% 0.68% to 0.72% (11.46)% to (10.17)% 2010 1.25% to 2.70% 0.31% to 0.36% 22.98% to 24.77% 2009 1.25% to 2.70% 0.37% to 0.81% 52.97% to 55.20% 2008 1.25% to 2.50% 2.75% to 4.86% (49.30)% to (48.87)% FIDELITY VIP DYNAMIC CAPITAL APPRECIATION PORTFOLIO 2012 1.25% to 2.45% 0.41% to 0.54% 19.29% to 20.73% 2011 1.25% to 2.30% -- to -- (4.98)% to (3.98)% 2010 1.25% to 2.15% 0.26% to 0.32% 15.48% to 16.52% 2009 1.25% to 2.15% 0.02% to 0.02% 32.90% to 34.10% 2008 1.25% to 2.15% 0.83% to 1.21% (38.19)% to (37.82)% FIDELITY VIP STRATEGIC INCOME PORTFOLIO 2012 0.50% to 0.65% 3.43% to 5.16% 9.52% to 9.68% 2011 0.50% to 0.65% 6.35% to 6.82% 3.78% to 3.93% 2010 0.50% to 0.50% 4.48% to 4.48% 8.69% to 8.69% FRANKLIN RISING DIVIDENDS SECURITIES FUND 2012 0.50% to 2.75% 1.66% to 1.83% 8.93% to 11.23% 2011 0.50% to 2.75% 1.26% to 1.40% 3.12% to 5.37% 2010 0.50% to 2.75% 1.07% to 1.07% 17.37% to 20.02% 2009 0.85% to 2.75% 1.21% to 1.43% 14.16% to 16.35% 2008 0.85% to 2.55% 1.73% to 1.75% (28.94)% to (27.72)%
SA-181 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- FRANKLIN INCOME SECURITIES FUND 2012 44,978,105 $15.281162 to $16.875821 $783,413,687 2011 54,907,285 13.643965 to 15.397947 866,473,608 2010 64,312,296 13.405873 to 15.458927 1,012,162,002 2009 72,313,630 11.971516 to 14.102498 1,030,824,743 2008 77,404,329 10.385353 to 11.435856 836,509,225 FRANKLIN LARGE CAP GROWTH SECURITIES FUND 2012 3,189,398 12.661396 to 14.565563 37,642,123 2011 4,093,919 11.574093 to 13.323239 43,752,484 2010 4,980,000 11.851458 to 13.904421 55,031,262 2009 5,642,623 10.711239 to 12.814563 56,885,469 2008 6,152,151 7.561687 to 8.326926 48,694,052 FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND 2012 59,996 16.807849 to 20.641837 1,210,389 2011 72,790 13.512023 to 16.429225 1,171,672 2010 86,450 14.669965 to 17.659480 1,493,387 2009 92,773 12.421151 to 14.803805 1,343,385 2008 137,146 10.630848 to 12.606898 1,683,490 FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND 2012 6,221,559 15.349634 to 17.404713 70,495,268 2011 7,670,769 13.965224 to 16.138689 79,698,492 2010 9,403,021 14.799448 to 17.431199 103,713,304 2009 10,543,565 11.695088 to 14.038705 93,841,932 2008 10,827,626 4.482015 to 8.215174 69,098,082 FRANKLIN SMALL CAP VALUE SECURITIES FUND 2012 1,409,166 17.732825 to 17.965353 15,778,584 2011 1,698,957 15.068984 to 15.597887 16,252,963 2010 1,853,607 15.754561 to 16.659671 18,685,692 2009 1,401,222 7.881408 to 13.337937 11,250,662 2008 1,004,698 6.021529 to 6.154292 6,302,537 FRANKLIN STRATEGIC INCOME SECURITIES FUND 2012 12,947,612 14.027463 to 15.291336 250,767,431 2011 14,667,741 12.512704 to 13.901316 257,179,250 2010 16,622,274 12.273319 to 13.909880 290,735,591 2009 17,511,097 11.124740 to 12.869844 282,189,435 2008 15,653,189 8.778651 to 12.729023 208,155,119 MUTUAL SHARES SECURITIES FUND 2012 23,164,409 14.655285 to 14.820917 355,309,139 2011 28,966,779 13.043277 to 13.185602 397,801,809 2010 34,697,310 13.257135 to 13.696286 492,841,333 2009 39,336,540 12.660577 to 15.724534 514,493,553 2008 42,471,162 10.174951 to 12.581516 454,398,236 TEMPLETON DEVELOPING MARKETS SECURITIES FUND 2012 2,335,734 18.195185 to 27.192746 49,109,466 2011 2,951,238 16.491969 to 24.183491 56,219,294 2010 3,762,170 19.953020 to 28.922631 87,667,747 2009 3,572,745 17.459152 to 24.755366 73,714,398 2008 3,071,983 12.027511 to 14.404613 38,076,417 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ FRANKLIN INCOME SECURITIES FUND 2012 0.50% to 2.75% 6.10% to 6.45% 9.60% to 12.00% 2011 0.50% to 2.75% 4.82% to 5.66% (0.39)% to 1.78% 2010 0.50% to 2.75% 3.07% to 3.24% 9.62% to 11.98% 2009 0.50% to 2.75% 8.52% to 8.52% 19.72% to 31.92% 2008 0.85% to 2.55% 5.41% to 5.42% (31.43)% to (30.25)% FRANKLIN LARGE CAP GROWTH SECURITIES FUND 2012 1.15% to 2.75% 0.80% to 0.82% 9.32% to 11.09% 2011 0.85% to 2.75% 0.66% to 0.68% (4.18)% to (2.34)% 2010 0.85% to 2.75% 0.66% to 0.83% 8.56% to 10.65% 2009 0.85% to 2.70% 1.38% to 1.38% 26.28% to 28.63% 2008 0.85% to 2.55% 0.39% to 1.27% (36.18)% to (35.08)% FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND 2012 1.40% to 2.40% -- to -- 24.39% to 25.64% 2011 1.40% to 2.40% 7.74% to 8.74% (7.89)% to (6.97)% 2010 1.40% to 2.40% 2.86% to 2.94% 18.11% to 19.29% 2009 1.40% to 2.40% 13.27% to 13.27% 16.26% to 17.43% 2008 1.40% to 2.50% 1.04% to 1.19% (43.82)% to (43.20)% FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND 2012 0.85% to 2.75% -- to -- 7.84% to 9.91% 2011 0.85% to 2.75% -- to -- (7.41)% to (5.64)% 2010 0.85% to 2.75% -- to -- 24.17% to 26.54% 2009 0.85% to 2.75% -- to -- 39.68% to 42.36% 2008 0.85% to 2.55% -- to -- (43.95)% to (42.98)% FRANKLIN SMALL CAP VALUE SECURITIES FUND 2012 0.50% to 2.75% 0.70% to 0.86% 15.18% to 17.68% 2011 0.50% to 2.75% 0.55% to 0.58% (6.37)% to (4.35)% 2010 0.50% to 2.75% 0.51% to 0.51% 24.75% to 27.50% 2009 0.85% to 2.70% 1.52% to 1.52% 25.60% to 28.06% 2008 0.85% to 2.55% 0.85% to 1.76% (34.71)% to (33.59)% FRANKLIN STRATEGIC INCOME SECURITIES FUND 2012 0.50% to 2.80% 6.85% to 6.95% 10.00% to 12.11% 2011 0.50% to 2.80% 6.09% to 6.41% (0.06)% to 1.95% 2010 0.50% to 2.80% 0.72% to 0.72% 8.14% to 10.33% 2009 0.50% to 2.75% 2.55% to 2.55% 11.25% to 22.70% 2008 0.85% to 2.55% 2.87% to 9.29% (13.92)% to (13.27)% MUTUAL SHARES SECURITIES FUND 2012 0.50% to 2.75% 2.13% to 2.41% 11.15% to 13.63% 2011 0.50% to 2.75% 2.44% to 2.56% (3.73)% to (1.61)% 2010 0.50% to 2.75% 1.10% to 1.52% 8.18% to 10.50% 2009 0.85% to 2.75% 0.24% to 1.97% 22.63% to 24.98% 2008 0.85% to 2.55% 3.18% to 3.31% (38.70)% to (37.64)% TEMPLETON DEVELOPING MARKETS SECURITIES FUND 2012 0.85% to 2.75% 1.60% to 1.71% 10.33% to 12.44% 2011 0.85% to 2.75% 0.20% to 1.18% (17.96)% to (16.39)% 2010 0.85% to 2.70% 1.40% to 1.79% 14.28% to 16.83% 2009 0.85% to 2.70% 4.92% to 4.92% 67.86% to 71.86% 2008 0.85% to 2.55% 3.15% to 5.57% (53.82)% to (53.02)%
SA-182 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- TEMPLETON FOREIGN SECURITIES FUND 2012 10,219,149 $14.078884 to $15.045733 $131,974,526 2011 12,495,547 11.977254 to 13.080163 139,228,121 2010 14,178,560 13.485831 to 15.045462 180,227,519 2009 15,858,557 13.459441 to 14.252060 189,703,975 2008 18,026,176 8.211268 to 9.905208 160,378,422 TEMPLETON GROWTH SECURITIES FUND 2012 17,343,927 14.725005 to 15.087686 226,483,345 2011 21,888,051 12.228197 to 12.809585 241,244,696 2010 26,349,550 13.235127 to 14.154560 318,345,347 2009 30,282,834 12.995028 to 13.547219 347,264,414 2008 33,958,297 8.149626 to 9.996674 303,628,810 MUTUAL GLOBAL DISCOVERY SECURITIES FUND 2012 5,529,851 13.707570 to 13.804833 113,098,587 2011 6,859,792 12.162700 to 12.517501 126,044,828 2010 7,992,904 12.611581 to 13.259276 155,194,908 2009 8,513,586 11.329533 to 12.172998 151,319,313 2008 8,398,704 14.666576 to 15.987575 125,652,233 FRANKLIN FLEX CAP GROWTH SECURITIES FUND 2012 1,531,626 12.398153 to 14.446576 17,617,666 2011 1,829,214 11.443823 to 13.590297 19,594,014 2010 2,085,738 12.123922 to 14.674408 23,893,700 2009 2,250,585 10.523196 to 12.981022 22,593,292 2008 2,124,947 7.491831 to 7.981607 16,357,732 FRANKLIN LARGE CAP VALUE SECURITIES FUND 2012 705,497 11.514010 to 14.472108 7,603,552 2011 814,254 10.147083 to 12.998546 7,801,283 2010 921,626 10.802373 to 14.118514 9,468,209 2009 1,031,940 8.781519 to 9.534345 9,420,541 2008 854,493 7.106541 to 7.585679 6,267,170 TEMPLETON GLOBAL BOND SECURITIES FUND 2012 1,557,122 14.217363 to 14.750789 22,345,330 2011 1,601,855 12.341603 to 13.181378 20,322,857 2010 1,499,649 12.523396 to 13.673178 19,526,811 2009 1,205,381 11.012978 to 12.291339 13,956,074 2008 554,688 9.822923 to 9.955924 5,488,788 HARTFORD BALANCED HLS FUND+ 2012 9,299,392 11.676956 to 15.306417 16,214,421 2011 11,647,520 10.512754 to 14.079868 15,792,890 2010 13,816,874 10.291887 to 14.243950 17,960,669 2009 16,490,870 9.293434 to 13.103428 18,288,954 2008 20,473,735 0.719130 to 7.222661 16,400,077 HARTFORD TOTAL RETURN BOND HLS FUND 2012 33,097,003 12.908256 to 13.061086 164,645,075 2011 37,874,588 10.603999 to 12.375247 166,428,046 2010 42,914,796 11.466077 to 11.937261 163,828,468 2009 48,035,422 10.718289 to 11.478424 145,838,795 2008 51,590,022 1.105264 to 9.060101 91,925,592 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ TEMPLETON FOREIGN SECURITIES FUND 2012 0.50% to 2.75% 3.05% to 3.06% 15.03% to 17.55% 2011 0.50% to 2.75% 1.78% to 1.85% (13.06)% to (11.19)% 2010 0.50% to 2.75% 0.59% to 0.95% 5.47% to 7.84% 2009 0.85% to 2.70% 3.48% to 3.48% 33.20% to 35.88% 2008 0.85% to 2.55% 2.46% to 4.61% (41.88)% to (40.88)% TEMPLETON GROWTH SECURITIES FUND 2012 0.50% to 2.75% 2.00% to 2.18% 17.78% to 20.42% 2011 0.50% to 2.75% 1.06% to 1.27% (9.50)% to (7.61)% 2010 0.50% to 2.75% 1.27% to 1.27% 4.48% to 6.78% 2009 0.85% to 2.75% 3.19% to 3.19% 27.55% to 29.99% 2008 0.85% to 2.55% 1.69% to 1.75% (43.78)% to (42.81)% MUTUAL GLOBAL DISCOVERY SECURITIES FUND 2012 0.50% to 2.75% 2.57% to 2.87% 10.28% to 12.70% 2011 0.50% to 2.75% 2.16% to 2.18% (5.59)% to (3.56)% 2010 0.50% to 2.75% 0.17% to 1.28% 8.92% to 11.32% 2009 0.50% to 2.75% -- to -- 13.30% to 19.97% 2008 0.85% to 2.55% 1.85% to 2.37% (30.26)% to (29.06)% FRANKLIN FLEX CAP GROWTH SECURITIES FUND 2012 0.85% to 2.75% -- to -- 6.30% to 8.34% 2011 0.85% to 2.75% -- to -- (7.39)% to (5.61)% 2010 0.85% to 2.75% -- to -- 13.05% to 15.21% 2009 0.85% to 2.75% -- to -- 29.36% to 31.84% 2008 0.85% to 2.50% 0.12% to 0.14% (36.91)% to (35.86)% FRANKLIN LARGE CAP VALUE SECURITIES FUND 2012 0.85% to 2.75% 1.53% to 1.53% 11.34% to 13.47% 2011 0.85% to 2.75% 1.21% to 1.22% (7.84)% to (6.07)% 2010 0.85% to 2.70% 1.79% to 1.79% 11.23% to 13.30% 2009 0.85% to 2.55% 2.03% to 2.27% 23.57% to 25.69% 2008 0.85% to 2.55% -- to -- (36.81)% to (35.72)% TEMPLETON GLOBAL BOND SECURITIES FUND 2012 0.30% to 2.70% -- to 6.12% 11.91% to 14.62% 2011 0.50% to 2.70% 5.69% to 5.73% (3.60)% to (1.45)% 2010 0.50% to 2.70% 0.44% to 1.12% 11.24% to 13.72% 2009 0.50% to 2.70% 7.94% to 7.94% 10.13% to 15.43% 2008 0.85% to 2.45% 0.64% to 0.64% (0.70)% to 0.44% HARTFORD BALANCED HLS FUND+ 2012 0.85% to 2.75% 3.31% to 5.55% 8.71% to 11.07% 2011 0.85% to 2.75% 1.40% to 1.72% (1.15)% to 0.99% 2010 1.25% to 2.75% 1.18% to 1.51% 8.82% to 10.74% 2009 1.25% to 2.65% 1.64% to 3.18% 26.57% to 28.67% 2008 1.25% to 2.55% 2.67% to 14.16% (33.53)% to (30.69)% HARTFORD TOTAL RETURN BOND HLS FUND 2012 0.50% to 2.80% 3.83% to 4.07% 4.31% to 7.00% 2011 0.30% to 2.80% -- to 0.20% 3.78% to 6.04% 2010 0.50% to 2.75% 3.32% to 14.41% 4.34% to 6.98% 2009 0.50% to 2.70% 3.56% to 10.99% 7.18% to 11.95% 2008 0.85% to 2.55% 6.83% to 23.23% (10.18)% to (8.99)%
SA-183 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND 2012 25,478,593 $15.138103 to $16.433647 $142,494,694 2011 30,120,387 12.856297 to 14.317252 139,889,415 2010 34,527,013 14.584170 to 16.678412 162,240,133 2009 38,107,344 12.581225 to 14.800317 137,601,584 2008 38,470,316 0.848255 to 5.861911 69,455,306 HARTFORD DIVIDEND AND GROWTH HLS FUND 2012 18,827,915 14.890759 to 15.542467 100,678,897 2011 23,223,587 13.508111 to 13.751180 105,474,269 2010 27,164,406 13.640428 to 13.738768 109,673,027 2009 30,099,497 8.881279 to 12.545314 92,708,467 2008 32,314,534 0.889157 to 7.184273 53,819,908 HARTFORD GLOBAL RESEARCH HLS FUND 2012 33,347 10.192580 to 16.651025 340,244 2011 40,745 8.752406 to 14.448983 358,485 2010 47,838 9.808925 to 16.364089 472,123 2009 45,406 8.423321 to 8.595482 394,023 2008 41,648 6.098927 to 6.147729 255,748 HARTFORD HEALTHCARE HLS FUND 2012 68,159 2.478414 to 2.586919 176,031 2011 118,801 2.096138 to 2.180271 258,792 2010 152,576 1.970286 to 2.042198 310,998 2009 192,356 1.876719 to 1.938428 372,357 2008 201,819 1.560245 to 1.605923 323,713 HARTFORD GLOBAL GROWTH HLS FUND 2012 256,643 7.966476 to 8.442850 689,814 2011 285,126 6.927508 to 13.084231 559,775 2010 412,985 8.145943 to 15.563803 847,930 2009 556,748 7.100965 to 7.219531 1,060,074 2008 612,639 1.183214 to 5.357859 783,203 HARTFORD DISCIPLINED EQUITY HLS FUND 2012 1,279,327 11.305738 to 15.949020 12,398,836 2011 1,505,933 9.694094 to 13.930671 12,356,809 2010 1,488,540 9.665415 to 14.148995 11,959,231 2009 1,330,826 8.547364 to 12.745706 8,846,609 2008 942,561 6.769289 to 6.860722 3,890,433 HARTFORD GROWTH HLS FUND 2012 135,049 10.212963 to 15.345232 1,187,943 2011 139,485 8.838312 to 13.023500 1,061,553 2010 128,885 9.948246 to 14.375631 1,069,501 2009 65,931 8.540511 to 8.795528 447,560 2008 76,344 6.519796 to 6.607896 322,129 HARTFORD GROWTH OPPORTUNITIES HLS FUND 2012 3,054,682 16.639067 to 16.665811 30,798,245 2011 3,500,154 13.181944 to 13.496611 28,353,767 2010 3,504,994 14.537981 to 15.216479 31,234,642 2009 3,051,229 7.807077 to 13.296868 23,134,664 2008 1,494,749 5.991598 to 6.075105 8,710,983 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ HARTFORD CAPITAL APPRECIATION HLS FUND 2012 0.50% to 2.80% 1.17% to 1.50% 14.78% to 17.75% 2011 0.50% to 2.80% 0.54% to 1.72% (14.07)% to (11.85)% 2010 0.50% to 2.75% 0.71% to 2.22% 13.06% to 15.92% 2009 0.50% to 2.70% 0.67% to 2.36% 25.81% to 41.79% 2008 0.85% to 2.55% 1.56% to 8.23% (47.10)% to (44.67)% HARTFORD DIVIDEND AND GROWTH HLS FUND 2012 0.50% to 2.75% 2.33% to 2.70% 10.24% to 13.03% 2011 0.50% to 2.75% 2.33% to 4.90% (1.68)% to 0.81% 2010 0.50% to 2.75% 3.81% to 5.47% 9.87% to 12.64% 2009 0.85% to 2.70% 2.60% to 6.09% 21.36% to 23.62% 2008 0.85% to 2.55% 1.90% to 11.47% (34.30)% to (31.56)% HARTFORD GLOBAL RESEARCH HLS FUND 2012 1.40% to 2.70% 0.65% to 1.15% 15.24% to 16.45% 2011 1.40% to 2.70% 0.01% to 0.02% (11.70)% to (10.77)% 2010 1.40% to 2.70% 0.86% to 1.25% 12.92% to 14.12% 2009 1.40% to 2.50% 0.68% to 0.82% 38.29% to 39.82% 2008 1.40% to 2.35% 1.56% to 2.15% (41.69)% to (41.32)% HARTFORD HEALTHCARE HLS FUND 2012 1.40% to 1.75% 0.10% to 0.13% 18.24% to 18.65% 2011 1.40% to 1.75% -- to -- 6.39% to 6.76% 2010 1.40% to 1.75% 0.02% to 0.03% 4.99% to 5.35% 2009 1.40% to 1.75% 0.22% to 0.33% 20.28% to 20.71% 2008 1.40% to 1.75% 0.14% to 0.17% (27.04)% to (26.78)% HARTFORD GLOBAL GROWTH HLS FUND 2012 1.25% to 2.45% 0.55% to 0.55% 20.42% to 21.87% 2011 1.25% to 2.40% 0.04% to 0.04% (15.93)% to (14.96)% 2010 1.25% to 2.40% 0.27% to 0.28% 11.54% to 12.83% 2009 1.25% to 2.15% 0.95% to 1.28% 32.76% to 33.96% 2008 1.40% to 1.95% 0.38% to 2.65% (53.24)% to (48.99)% HARTFORD DISCIPLINED EQUITY HLS FUND 2012 0.85% to 2.70% 1.46% to 1.51% 14.49% to 16.63% 2011 0.85% to 2.70% 1.16% to 1.74% (1.54)% to 0.30% 2010 0.85% to 2.70% 1.34% to 1.65% 11.01% to 13.08% 2009 0.85% to 2.70% 2.69% to 5.36% 22.30% to 24.58% 2008 0.85% to 2.45% 2.86% to 2.94% (33.86)% to (33.15)% HARTFORD GROWTH HLS FUND 2012 0.50% to 2.45% -- to -- 15.55% to 17.83% 2011 0.50% to 2.45% 0.16% to 0.32% (11.16)% to (9.41)% 2010 0.50% to 2.45% 0.03% to 0.03% 16.48% to 18.77% 2009 0.85% to 2.45% 0.46% to 0.68% 30.99% to 33.11% 2008 0.85% to 2.45% 1.42% to 2.65% (38.66)% to (38.00)% HARTFORD GROWTH OPPORTUNITIES HLS FUND 2012 0.50% to 2.70% -- to -- 23.48% to 26.23% 2011 0.50% to 2.70% -- to -- (11.30)% to (9.33)% 2010 0.50% to 2.70% 0.01% to 0.02% 14.44% to 16.98% 2009 0.85% to 2.70% 0.64% to 1.06% 26.15% to 28.51% 2008 0.85% to 2.50% 1.74% to 2.99% (41.05)% to (40.40)%
SA-184 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND 2012 762,984 $16.893745 to $19.492610 $10,017,305 2011 724,559 10.168984 to 17.518678 8,356,503 2010 552,464 14.257828 to 17.191017 6,324,090 2009 440,506 11.453793 to 15.205597 2,951,638 2008 302,155 7.575364 to 7.677483 876,287 HARTFORD INDEX HLS FUND 2012 479,373 5.263116 to 16.107393 6,062,983 2011 75,638 4.634372 to 14.035106 485,264 2010 83,107 4.632617 to 4.709936 390,750 2009 95,104 3.993420 to 4.173201 396,056 2008 106,592 3.235025 to 3.363785 357,948 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2012 2,673,219 14.390206 to 14.980051 9,070,977 2011 3,182,043 12.032333 to 12.842512 7,869,538 2010 3,633,463 14.056619 to 15.383572 9,734,896 2009 3,620,629 8.299619 to 13.890954 7,761,954 2008 4,762,560 0.962384 to 6.271971 6,399,332 HARTFORD SMALL/MID CAP EQUITY HLS FUND 2012 179,534 11.889440 to 19.720394 2,146,368 2011 223,316 10.348355 to 17.484643 2,348,290 2010 233,483 10.556605 to 18.170055 2,495,390 2009 223,610 8.461037 to 14.834730 1,923,520 2008 127,256 5.770819 to 5.871243 731,948 HARTFORD MIDCAP HLS FUND 2012 244,857 4.684135 to 4.776588 1,167,561 2011 308,459 3.992995 to 4.065703 1,252,249 2010 419,991 4.415804 to 4.489465 1,883,647 2009 486,310 3.641698 to 3.696908 1,796,277 2008 581,250 2.831583 to 2.870203 1,667,174 HARTFORD MIDCAP VALUE HLS FUND 2012 106,437 1.945297 to 13.218340 331,642 2011 133,060 1.455678 to 1.582737 258,234 2010 183,279 1.632276 to 1.759701 391,891 2009 99,737 1.376636 to 1.434963 141,727 2008 161,982 0.975511 to 1.011759 162,966 HARTFORD MONEY MARKET HLS FUND 2012 169,707,075 8.923141 to 9.942655 195,450,120 2011 219,554,923 9.176539 to 9.972606 251,768,173 2010 232,493,202 9.447022 to 9.929523 267,244,595 2009 322,971,641 1.190879 to 9.714418 371,878,309 2008 492,151,315 0.989484 to 1.200294 559,945,375 HARTFORD SMALL COMPANY HLS FUND 2012 1,538,802 16.625441 to 16.747977 4,180,772 2011 1,950,407 14.555495 to 14.814915 4,322,079 2010 2,539,625 15.137320 to 15.801191 5,273,480 2009 3,082,549 12.255718 to 13.153937 5,122,989 2008 3,759,446 0.889390 to 6.664054 4,383,994 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ HARTFORD HIGH YIELD HLS FUND 2012 0.50% to 2.70% 8.36% to 8.75% 11.27% to 13.74% 2011 0.30% to 2.70% -- to 8.88% 1.69% to 1.91% 2010 0.50% to 2.70% 0.40% to 0.57% 13.06% to 15.57% 2009 0.85% to 2.70% 11.66% to 16.89% 46.46% to 49.19% 2008 0.85% to 2.45% 57.32% to 114.51% (26.72)% to (25.94)% HARTFORD INDEX HLS FUND 2012 0.50% to 1.55% 1.73% to 1.83% 13.57% to 14.77% 2011 0.50% to 1.55% 0.64% to 1.46% 0.04% to 1.09% 2010 1.40% to 1.55% 1.26% to 1.48% 12.69% to 12.86% 2009 1.40% to 1.90% 1.79% to 1.87% 23.44% to 24.06% 2008 1.40% to 1.90% 1.56% to 1.77% (38.45)% to (38.14)% HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2012 0.50% to 2.75% 1.44% to 1.97% 16.64% to 19.60% 2011 0.50% to 2.75% 0.05% to 0.05% (16.52)% to (14.40)% 2010 0.50% to 2.75% 0.77% to 2.21% 11.11% to 13.92% 2009 0.85% to 2.70% 2.34% to 2.45% 29.90% to 32.33% 2008 0.85% to 2.55% 1.99% to 5.86% (43.85)% to (39.82)% HARTFORD SMALL/MID CAP EQUITY HLS FUND 2012 0.85% to 2.70% 0.60% to 0.60% 12.79% to 14.89% 2011 0.85% to 2.70% -- to -- (3.77)% to (1.97)% 2010 0.85% to 2.70% 0.66% to 0.71% 22.48% to 24.77% 2009 0.85% to 2.70% 0.33% to 1.09% 43.93% to 46.62% 2008 0.85% to 2.50% 0.82% to 1.58% (44.45)% to (43.74)% HARTFORD MIDCAP HLS FUND 2012 1.40% to 1.55% 0.53% to 0.58% 17.31% to 17.48% 2011 1.40% to 1.55% 0.16% to 0.19% (9.57)% to (9.44)% 2010 1.40% to 1.55% 0.06% to 0.06% 21.26% to 21.44% 2009 1.40% to 1.55% 0.29% to 0.30% 28.61% to 28.80% 2008 1.40% to 1.55% 0.25% to 0.26% (36.48)% to (36.39)% HARTFORD MIDCAP VALUE HLS FUND 2012 1.40% to 2.45% 0.85% to 0.89% 21.62% to 22.91% 2011 1.40% to 2.25% 0.01% to 0.01% (10.82)% to (10.06)% 2010 1.40% to 2.25% 0.35% to 0.36% 21.59% to 22.63% 2009 1.40% to 1.90% 0.50% to 0.59% 41.12% to 41.83% 2008 1.40% to 1.90% 0.44% to 0.50% (41.49)% to (41.19)% HARTFORD MONEY MARKET HLS FUND 2012 0.30% to 2.80% -- to -- (2.76)% to (0.30)% 2011 0.30% to 2.80% -- to -- (2.76)% to (0.27)% 2010 0.50% to 2.75% -- to -- (2.71)% to (0.50)% 2009 0.85% to 2.75% 0.06% to 0.06% (2.64)% to (0.78)% 2008 0.85% to 2.55% 1.91% to 2.06% (0.69)% to 1.27% HARTFORD SMALL COMPANY HLS FUND 2012 0.50% to 2.75% -- to -- 12.22% to 15.06% 2011 0.50% to 2.75% -- to -- (6.24)% to (3.84)% 2010 0.50% to 2.75% -- to -- 20.48% to 23.51% 2009 0.50% to 2.70% 0.01% to 0.01% 22.56% to 25.84% 2008 1.25% to 2.50% 0.29% to 0.29% (42.20)% to (36.34)%
SA-185 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- HARTFORD SMALLCAP GROWTH HLS FUND 2012 107,494 $13.664294 to $14.763938 $1,223,154 2011 198,521 11.928041 to 12.683496 2,122,457 2010 110,943 12.052733 to 12.612474 1,013,954 2009 94,484 9.044730 to 9.314788 585,237 2008 89,946 6.846178 to 6.938674 316,631 HARTFORD STOCK HLS FUND 2012 7,384,869 11.166146 to 16.833884 8,747,782 2011 10,191,662 0.827278 to 9.845249 10,241,194 2010 12,439,981 9.925827 to 15.800328 12,723,348 2009 15,739,815 0.769796 to 8.754833 13,926,333 2008 19,060,036 0.559049 to 6.263381 11,660,797 HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND 2012 970,213 10.081092 to 11.394012 8,295,666 2011 1,416,801 9.962879 to 11.042990 8,798,938 2010 1,527,500 10.190023 to 10.582456 9,334,829 2009 1,344,197 9.612225 to 9.826349 7,467,343 2008 1,223,153 9.528529 to 9.624617 3,807,506 HARTFORD VALUE HLS FUND 2012 192,619 15.130819 to 15.653317 1,577,097 2011 190,994 13.287624 to 13.447480 1,339,984 2010 194,340 13.784560 to 13.923997 1,422,123 2009 110,390 8.528526 to 8.718814 688,288 2008 60,414 7.027403 to 7.098480 223,238 AMERICAN FUNDS ASSET ALLOCATION HLS FUND 2012 1,225,460 14.958339 to 15.105314 14,210,819 2011 1,337,721 9.777476 to 13.270158 13,399,869 2010 1,207,516 9.801022 to 13.496513 12,155,873 2009 1,072,421 8.850297 to 12.365206 9,689,644 2008 657,572 7.192825 to 7.250974 4,756,804 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND 2012 579,345 14.888469 to 15.323942 5,895,608 2011 637,314 13.472579 to 13.565036 5,781,325 2010 660,174 13.796937 to 14.007941 6,150,898 2009 605,279 8.408178 to 12.851649 5,117,535 2008 366,599 6.626079 to 6.679716 2,440,396 AMERICAN FUNDS BOND HLS FUND 2012 2,974,291 12.297239 to 12.301958 33,037,180 2011 3,023,835 11.773192 to 12.030403 32,461,762 2010 3,258,127 11.178845 to 11.677091 33,538,046 2009 2,934,836 10.583985 to 11.301579 28,873,049 2008 1,451,873 8.832849 to 8.904119 12,902,737 AMERICAN FUNDS GLOBAL BOND HLS FUND 2012 370,709 12.129664 to 12.225408 4,302,645 2011 422,308 11.528491 to 11.774767 4,700,603 2010 432,776 11.110797 to 11.600595 4,696,215 2009 451,342 10.650417 to 11.367217 4,737,292 2008 279,328 9.689117 to 9.767251 2,721,688 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ HARTFORD SMALLCAP GROWTH HLS FUND 2012 0.85% to 2.45% -- to -- 14.56% to 16.40% 2011 0.85% to 2.45% -- to -- (1.03)% to 0.56% 2010 0.85% to 2.45% -- to -- 33.26% to 35.40% 2009 0.85% to 2.45% 0.09% to 0.09% 32.11% to 34.24% 2008 0.85% to 2.45% 1.08% to 1.91% (35.52)% to (34.82)% HARTFORD STOCK HLS FUND 2012 0.85% to 2.75% 1.85% to 2.17% 11.00% to 13.42% 2011 0.85% to 2.50% 1.12% to 1.41% (3.78)% to (1.93)% 2010 1.25% to 2.75% 0.94% to 1.30% 11.41% to 13.38% 2009 1.25% to 2.50% 1.25% to 1.77% 37.70% to 39.78% 2008 1.25% to 2.50% 1.89% to 5.35% (44.68)% to (41.13)% HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND 2012 0.50% to 2.45% 2.80% to 2.84% 1.19% to 3.18% 2011 0.50% to 2.45% 1.86% to 2.50% 2.34% to 4.35% 2010 0.50% to 2.70% 3.14% to 4.38% 1.03% to 3.28% 2009 1.25% to 2.45% 0.03% to 0.05% 0.88% to 2.10% 2008 1.25% to 2.45% 6.96% to 16.44% (2.62)% to (1.84)% HARTFORD VALUE HLS FUND 2012 0.50% to 2.70% 1.89% to 2.32% 13.87% to 16.40% 2011 0.50% to 2.70% 1.68% to 1.75% (4.57)% to (2.45)% 2010 0.50% to 2.70% 1.01% to 1.24% 11.62% to 14.10% 2009 1.25% to 2.45% 2.15% to 2.56% 21.36% to 22.83% 2008 1.25% to 2.45% 8.27% to 15.93% (33.85)% to (33.31)% AMERICAN FUNDS ASSET ALLOCATION HLS FUND 2012 0.50% to 2.70% 1.51% to 1.53% 12.72% to 15.23% 2011 1.25% to 2.70% 1.32% to 1.33% (1.68)% to (0.24)% 2010 1.25% to 2.70% 1.58% to 1.77% 9.15% to 10.74% 2009 1.25% to 2.70% 1.65% to 1.87% 20.30% to 22.06% 2008 1.25% to 2.45% -- to -- (28.59)% to (28.01)% AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH HLS FUND 2012 0.50% to 2.70% 1.17% to 1.18% 10.51% to 12.97% 2011 0.50% to 2.70% 0.02% to 0.03% (3.82)% to (1.68)% 2010 0.50% to 2.70% 2.74% to 2.79% 9.00% to 11.42% 2009 1.25% to 2.70% 1.09% to 1.50% 24.06% to 25.88% 2008 1.25% to 2.45% -- to -- (35.17)% to (34.65)% AMERICAN FUNDS BOND HLS FUND 2012 0.50% to 2.70% 2.58% to 2.62% 2.22% to 4.49% 2011 0.50% to 2.70% 2.85% to 2.94% 3.03% to 5.32% 2010 0.50% to 2.70% 2.12% to 4.27% 3.32% to 5.62% 2009 0.50% to 2.70% 3.29% to 3.29% 5.84% to 9.25% 2008 1.25% to 2.45% -- to -- (11.82)% to (11.11)% AMERICAN FUNDS GLOBAL BOND HLS FUND 2012 0.30% to 2.70% -- to 2.70% 3.01% to 5.52% 2011 0.50% to 2.70% 2.08% to 2.42% 1.50% to 3.76% 2010 0.50% to 2.70% 0.89% to 1.95% 2.05% to 4.32% 2009 0.50% to 2.70% -- to -- 6.50% to 6.52% 2008 1.25% to 2.45% -- to -- (2.93)% to (2.15)%
SA-186 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND 2012 1,207,407 $15.362805 to $16.341838 $11,932,791 2011 1,457,989 13.229196 to 14.313257 12,429,413 2010 1,595,108 13.953695 to 15.510807 14,565,144 2009 1,648,514 12.587813 to 14.303400 13,673,598 2008 1,150,363 5.958336 to 6.006580 6,891,232 AMERICAN FUNDS GLOBAL GROWTH HLS FUND 2012 326,289 15.135133 to 16.706891 3,446,588 2011 425,089 9.749253 to 14.046325 3,722,272 2010 428,370 9.783915 to 15.890613 4,200,789 2009 382,638 8.892566 to 14.653651 3,416,000 2008 264,144 6.300038 to 6.351012 1,673,223 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND 2012 985,664 14.439064 to 17.721296 8,935,634 2011 1,065,587 12.375597 to 15.448914 8,326,884 2010 1,085,276 15.354612 to 19.693321 10,690,711 2009 860,699 8.023928 to 16.574641 7,029,674 2008 520,455 5.013031 to 5.053663 2,622,803 AMERICAN FUNDS GROWTH HLS FUND 2012 5,413,543 16.084184 to 17.109723 56,492,571 2011 5,895,431 13.819059 to 14.951916 52,704,373 2010 6,006,471 14.480766 to 16.097075 56,818,498 2009 5,498,412 12.295824 to 13.971972 44,483,623 2008 3,301,903 5.783494 to 5.832309 19,213,474 AMERICAN FUNDS GROWTH-INCOME HLS FUND 2012 2,975,406 15.215935 to 15.373418 30,944,586 2011 3,232,843 13.051828 to 13.480080 28,728,041 2010 3,360,723 13.401152 to 14.148997 30,882,153 2009 3,157,635 12.121401 to 13.082250 26,452,328 2008 2,018,174 6.395572 to 6.447345 12,978,183 AMERICAN FUNDS INTERNATIONAL HLS FUND 2012 4,292,661 13.146995 to 14.854603 38,366,054 2011 4,498,109 11.237801 to 12.979718 34,559,883 2010 3,957,805 13.167811 to 15.547919 35,916,769 2009 3,328,014 8.513844 to 14.939206 28,486,816 2008 1,950,069 5.990544 to 6.039025 11,752,320 AMERICAN FUNDS NEW WORLD HLS FUND 2012 696,793 14.493863 to 16.621163 7,300,897 2011 861,908 12.399722 to 14.535810 7,873,773 2010 972,017 14.529666 to 17.412164 10,192,701 2009 841,006 8.768621 to 15.218783 7,555,070 2008 574,363 5.905372 to 5.953164 3,409,654 HARTFORD PORTFOLIO DIVERSIFIER HLS FUND 2012 4,718,791 9.240778 to 9.417426 43,839,879 2011 729,651 10.149291 to 10.219887 7,422,841 HUNTINGTON VA INCOME EQUITY FUND 2012 1,011,689 12.499385 to 16.386427 4,090,168 2011 1,006,903 11.573824 to 14.872659 2,608,841 2010 1,265,929 11.083867 to 13.961027 2,841,022 2009 1,355,757 8.156954 to 10.165737 2,660,201 2008 1,201,638 6.791597 to 8.570547 1,948,340 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ AMERICAN FUNDS GLOBAL GROWTH AND INCOME HLS FUND 2012 0.50% to 2.70% 2.55% to 2.64% 14.17% to 16.71% 2011 0.30% to 2.70% -- to 2.27% (7.72)% to (5.48)% 2010 0.50% to 2.70% 2.18% to 3.11% 8.44% to 10.85% 2009 0.50% to 2.70% 1.52% to 1.52% 25.88% to 35.66% 2008 1.25% to 2.45% -- to -- (40.88)% to (40.40)% AMERICAN FUNDS GLOBAL GROWTH HLS FUND 2012 0.50% to 2.70% 1.02% to 1.03% 18.94% to 21.59% 2011 0.65% to 2.70% 0.40% to 1.14% (11.61)% to (9.77)% 2010 1.25% to 2.70% 0.92% to 0.98% 8.44% to 10.02% 2009 1.25% to 2.70% 1.38% to 1.78% 38.00% to 40.02% 2008 1.25% to 2.45% -- to -- (37.36)% to (36.85)% AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION HLS FUND 2012 0.50% to 2.70% 1.15% to 1.26% 14.71% to 17.26% 2011 0.30% to 2.70% -- to 1.37% (21.55)% to (19.64)% 2010 0.50% to 2.70% 0.02% to 0.02% 18.82% to 21.46% 2009 1.25% to 2.70% 0.07% to 0.07% 56.49% to 58.77% 2008 1.25% to 2.45% -- to -- (50.31)% to (49.91)% AMERICAN FUNDS GROWTH HLS FUND 2012 0.50% to 2.70% 0.33% to 0.34% 14.43% to 16.98% 2011 0.30% to 2.70% -- to -- (7.11)% to (4.86)% 2010 0.50% to 2.70% 0.49% to 2.18% 15.21% to 17.77% 2009 0.50% to 2.70% 0.90% to 0.90% 22.96% to 35.32% 2008 1.25% to 2.50% 2.50% to 5.18% (42.59)% to (42.11)% AMERICAN FUNDS GROWTH-INCOME HLS FUND 2012 0.50% to 2.70% 1.21% to 1.23% 14.05% to 16.58% 2011 0.50% to 2.70% -- to -- (4.73)% to (2.61)% 2010 0.50% to 2.70% 0.98% to 3.22% 8.15% to 10.56% 2009 0.50% to 2.70% 3.09% to 3.09% 21.21% to 27.37% 2008 1.25% to 2.45% 3.11% to 3.50% (37.22)% to (36.71)% AMERICAN FUNDS INTERNATIONAL HLS FUND 2012 0.50% to 2.70% 1.59% to 1.59% 14.44% to 16.99% 2011 0.50% to 2.70% 1.68% to 1.98% (16.52)% to (14.66)% 2010 0.50% to 2.70% 0.04% to 1.08% 4.08% to 6.39% 2009 1.25% to 2.70% 1.45% to 1.60% 38.95% to 40.98% 2008 1.25% to 2.45% -- to -- (40.45)% to (39.97)% AMERICAN FUNDS NEW WORLD HLS FUND 2012 0.50% to 2.70% 1.58% to 1.59% 14.35% to 16.89% 2011 0.50% to 2.70% 1.34% to 1.54% (16.52)% to (14.66)% 2010 0.50% to 2.70% 0.27% to 1.09% 14.41% to 16.95% 2009 1.25% to 2.70% 0.96% to 1.17% 45.17% to 47.29% 2008 1.25% to 2.45% -- to -- (41.25)% to (40.78)% HARTFORD PORTFOLIO DIVERSIFIER HLS FUND 2012 0.30% to 1.50% 0.35% to 0.44% (8.95)% to (7.85)% 2011 0.30% to 1.50% 0.30% to 0.35% 1.51% to 2.20% HUNTINGTON VA INCOME EQUITY FUND 2012 0.50% to 2.50% 2.35% to 3.84% 8.00% to 10.18% 2011 0.50% to 2.50% 2.53% to 3.99% 4.42% to 6.53% 2010 0.50% to 2.50% 2.20% to 2.28% 9.03% to 11.23% 2009 1.25% to 2.50% -- to -- 18.61% to 20.10% 2008 1.25% to 2.50% 5.83% to 13.17% (39.37)% to (35.42)%
SA-187 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- HUNTINGTON VA DIVIDEND CAPTURE FUND 2012 1,976,529 $16.495144 to $17.146773 $6,725,084 2011 2,073,575 14.157771 to 14.872468 6,643,933 2010 2,104,367 13.557437 to 13.959851 6,813,766 2009 2,391,054 8.683354 to 12.074627 6,746,938 2008 2,597,572 7.028026 to 9.895638 6,019,722 HUNTINGTON VA GROWTH FUND 2012 1,358,845 10.320326 to 13.470859 2,409,286 2011 1,523,755 9.580449 to 12.257564 2,383,392 2010 1,673,865 10.132057 to 12.706602 2,648,146 2009 1,742,286 7.759225 to 9.455795 2,520,186 2008 1,539,638 6.775378 to 8.360654 1,918,602 HUNTINGTON VA MID CORP AMERICA FUND+ 2012 1,704,345 16.584557 to 17.650513 7,107,999 2011 952,696 14.545809 to 15.793327 3,835,552 2010 1,092,211 15.035192 to 16.654518 4,680,851 2009 1,171,122 8.558228 to 13.905379 4,214,191 2008 1,169,263 6.455900 to 10.621312 3,291,053 HUNTINGTON VA ROTATING MARKETS FUND 2012 312,582 10.012370 to 15.159748 1,303,828 2011 370,723 9.480418 to 14.534874 1,395,134 2010 401,474 8.985110 to 13.948720 1,463,766 2009 434,553 8.475971 to 13.323862 1,442,872 2008 446,463 6.434817 to 10.242381 1,149,856 HUNTINGTON VA INTERNATIONAL EQUITY FUND 2012 1,179,556 1.319495 to 13.106421 5,219,797 2011 1,243,167 1.186366 to 11.550869 4,177,237 2010 1,398,823 1.375283 to 13.124958 5,294,304 2009 1,447,697 1.291504 to 8.209013 5,039,762 2008 1,488,254 0.992130 to 6.227854 3,605,752 HUNTINGTON VA MACRO 100 FUND 2012 972,947 10.327723 to 15.076180 2,795,266 2011 973,897 0.873638 to 13.697934 1,306,810 2010 1,123,495 0.907815 to 13.951935 1,372,231 2009 1,232,944 0.815654 to 9.122592 1,275,086 2008 1,225,650 0.686243 to 7.579899 943,741 HUNTINGTON VA MORTGAGE SECURITIES FUND 2012 740,411 1.162720 to 11.653432 3,217,238 2011 670,708 1.153462 to 11.331771 3,132,291 2010 800,793 1.123159 to 10.815613 3,164,414 2009 844,366 1.097941 to 10.382301 3,030,159 2008 816,450 1.067436 to 9.968448 2,494,020 HUNTINGTON VA SITUS FUND 2012 2,906,501 1.546104 to 18.849467 5,782,957 2011 3,407,378 1.292715 to 15.448454 5,425,312 2010 3,981,977 1.337624 to 15.668618 6,324,808 2009 4,273,563 1.058154 to 8.628205 5,219,891 2008 4,390,237 0.816019 to 6.571252 3,928,069 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ HUNTINGTON VA DIVIDEND CAPTURE FUND 2012 0.50% to 2.75% 3.88% to 3.98% 8.44% to 10.91% 2011 0.50% to 2.50% 1.66% to 5.11% 4.43% to 6.54% 2010 0.50% to 2.50% 1.87% to 4.25% 12.28% to 14.55% 2009 1.25% to 2.50% -- to -- 22.02% to 23.55% 2008 1.25% to 2.50% 10.83% to 18.64% (31.59)% to (29.86)% HUNTINGTON VA GROWTH FUND 2012 0.50% to 2.50% 0.33% to 0.35% 7.72% to 9.90% 2011 0.50% to 2.50% 0.08% to 0.25% (5.44)% to (3.53)% 2010 0.50% to 2.50% 0.13% to 0.13% 7.15% to 9.32% 2009 1.25% to 2.50% -- to -- 13.10% to 14.52% 2008 1.25% to 2.50% 1.08% to 2.05% (39.44)% to (34.95)% HUNTINGTON VA MID CORP AMERICA FUND+ 2012 0.50% to 2.50% 0.20% to 0.29% 11.76% to 14.02% 2011 0.50% to 2.50% 0.10% to 0.76% (5.17)% to (3.25)% 2010 0.50% to 2.50% 0.52% to 0.66% 19.77% to 22.19% 2009 1.25% to 2.50% -- to -- 30.92% to 32.56% 2008 1.25% to 2.50% 1.22% to 2.13% (40.35)% to (39.57)% HUNTINGTON VA ROTATING MARKETS FUND 2012 1.25% to 2.50% 0.82% to 1.58% 4.30% to 5.61% 2011 1.25% to 2.50% 0.11% to 0.33% 4.20% to 5.51% 2010 1.25% to 2.50% 1.14% to 1.15% 4.69% to 6.01% 2009 1.25% to 2.50% -- to -- 30.09% to 31.72% 2008 1.25% to 2.50% 2.56% to 8.52% (43.50)% to (38.68)% HUNTINGTON VA INTERNATIONAL EQUITY FUND 2012 0.50% to 2.50% 0.82% to 1.29% 11.22% to 13.47% 2011 0.50% to 2.50% 0.92% to 1.92% (13.74)% to (11.99)% 2010 0.50% to 2.50% 1.27% to 1.36% 6.49% to 8.64% 2009 1.25% to 2.50% 0.05% to 0.06% 30.18% to 31.81% 2008 1.25% to 2.50% 2.74% to 6.75% (42.03)% to (40.18)% HUNTINGTON VA MACRO 100 FUND 2012 0.50% to 2.45% 0.58% to 0.60% 7.94% to 10.06% 2011 0.50% to 2.50% 0.06% to 0.86% (3.76)% to (1.82)% 2010 0.50% to 2.50% 0.77% to 0.87% 11.30% to 13.55% 2009 1.25% to 2.50% -- to -- 18.86% to 20.35% 2008 1.25% to 2.50% 1.92% to 6.73% (35.54)% to (28.46)% HUNTINGTON VA MORTGAGE SECURITIES FUND 2012 0.50% to 2.50% 2.42% to 2.49% 0.80% to 2.84% 2011 0.50% to 2.50% 2.00% to 2.59% 2.70% to 4.77% 2010 0.50% to 2.50% 1.25% to 2.20% 2.30% to 4.36% 2009 1.25% to 2.50% -- to -- 2.86% to 4.15% 2008 1.25% to 2.50% 8.15% to 12.13% (1.40)% to (0.37)% HUNTINGTON VA SITUS FUND 2012 0.50% to 2.50% -- to -- 19.60% to 22.02% 2011 0.50% to 2.50% 0.01% to 0.03% (3.36)% to (1.41)% 2010 0.50% to 2.50% 0.22% to 0.43% 26.41% to 28.96% 2009 1.25% to 2.50% -- to -- 29.67% to 31.30% 2008 1.25% to 2.50% 0.24% to 0.86% (42.68)% to (37.24)%
SA-188 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- LORD ABBETT FUNDAMENTAL EQUITY FUND 2012 136,090 $11.567545 to $13.468330 $1,731,468 2011 71,401 10.625321 to 12.240548 847,843 2010 3,642 12.880117 to 12.880117 46,909 LORD ABBETT CALIBRATED DIVIDEND GROWTH FUND+ 2012 223,826 12.195606 to 14.912990 2,646,396 2011 230,602 10.937377 to 13.624033 2,462,182 2010 198,222 11.009334 to 14.057646 2,149,836 2009 163,076 9.447071 to 9.674588 1,557,016 2008 86,092 7.801894 to 7.906371 676,928 LORD ABBETT BOND DEBENTURE FUND 2012 1,020,556 14.131108 to 16.703358 14,184,226 2011 1,071,520 12.620165 to 15.249040 13,436,469 2010 1,162,022 12.150902 to 15.008519 14,179,268 2009 1,209,674 10.872900 to 13.728566 13,340,423 2008 699,992 8.262872 to 8.373519 5,824,862 LORD ABBETT GROWTH AND INCOME FUND 2012 235,029 9.124707 to 9.669329 2,235,361 2011 308,881 8.342514 to 11.441826 2,666,369 2010 321,742 9.102976 to 12.243627 3,003,789 2009 331,753 7.945292 to 8.121819 2,678,133 2008 255,356 6.848122 to 6.916778 1,761,482 MFS(R) CORE EQUITY SERIES 2012 603,552 11.620997 to 16.613037 5,678,459 2011 723,625 10.109013 to 14.684518 5,906,990 2010 855,202 10.326139 to 15.242048 7,183,207 2009 987,770 9.044579 to 13.359088 7,202,235 2008 1,124,917 4.353958 to 6.894720 6,297,672 MFS(R) GROWTH SERIES 2012 2,203,781 16.275030 to 16.804885 20,452,997 2011 2,374,218 13.971102 to 14.714807 19,076,490 2010 2,568,451 14.119829 to 15.174649 20,809,080 2009 2,539,500 5.254606 to 8.914161 18,226,877 2008 2,289,881 3.915227 to 6.530042 12,172,236 MFS(R) GLOBAL EQUITY SERIES 2012 437,499 14.612304 to 19.929000 7,288,786 2011 464,088 13.828035 to 16.295758 6,426,296 2010 512,921 13.017715 to 17.177739 7,529,613 2009 527,102 11.878862 to 15.418702 7,043,962 2008 750,132 9.228134 to 11.782035 7,711,753 MFS(R) HIGH INCOME SERIES 2012 4,407,415 18.483806 to 19.038198 73,113,855 2011 4,821,654 16.253396 to 17.061870 70,952,605 2010 5,802,150 15.745804 to 16.846127 83,392,896 2009 6,290,333 13.841030 to 15.100408 80,170,617 2008 5,705,661 8.508150 to 9.590820 50,853,200 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ LORD ABBETT FUNDAMENTAL EQUITY FUND 2012 0.50% to 1.50% 0.59% to 1.25% 8.94% to 10.03% 2011 0.50% to 1.45% 0.28% to 0.40% (5.86)% to (4.97)% 2010 0.50% to 0.50% 0.42% to 0.42% 18.43% to 18.43% LORD ABBETT CALIBRATED DIVIDEND GROWTH FUND+ 2012 0.85% to 2.70% 2.99% to 3.38% 9.46% to 11.50% 2011 0.85% to 2.70% 2.82% to 23.73% (2.47)% to (0.65)% 2010 0.85% to 2.40% 2.92% to 3.04% 12.05% to 13.80% 2009 0.85% to 2.15% 0.21% to 3.57% 20.79% to 22.36% 2008 0.85% to 2.45% 11.02% to 19.21% (24.64)% to (23.83)% LORD ABBETT BOND DEBENTURE FUND 2012 0.50% to 2.70% 5.56% to 5.97% 9.54% to 11.97% 2011 0.50% to 2.70% 5.35% to 15.35% 1.60% to 3.86% 2010 0.50% to 2.70% 6.12% to 6.41% 9.32% to 11.75% 2009 0.50% to 2.70% 5.84% to 16.26% 8.73% to 30.74% 2008 0.85% to 2.45% 16.56% to 18.22% (19.56)% to (18.69)% LORD ABBETT GROWTH AND INCOME FUND 2012 1.25% to 2.45% 0.87% to 1.00% 9.38% to 10.70% 2011 0.50% to 2.45% 0.73% to 0.77% (8.35)% to (6.55)% 2010 0.50% to 2.45% 0.58% to 0.60% 14.57% to 16.83% 2009 1.25% to 2.45% 1.00% to 1.05% 16.02% to 17.42% 2008 1.25% to 2.45% 6.01% to 7.42% (34.86)% to (34.34)% MFS(R) CORE EQUITY SERIES 2012 1.10% to 2.70% 0.75% to 0.78% 13.13% to 14.96% 2011 1.10% to 2.70% 0.87% to 0.98% (3.66)% to (2.10)% 2010 1.10% to 2.70% 0.73% to 1.07% 14.10% to 15.93% 2009 0.95% to 2.70% 1.67% to 1.67% 28.91% to 31.18% 2008 0.95% to 2.50% 0.78% to 0.78% (40.66)% to (39.73)% MFS(R) GROWTH SERIES 2012 0.50% to 2.75% -- to -- 14.20% to 16.49% 2011 0.50% to 2.75% 0.02% to 0.19% (3.03)% to (1.05)% 2010 0.50% to 2.75% -- to -- 12.21% to 14.45% 2009 0.85% to 2.55% 0.17% to 0.30% 34.21% to 36.51% 2008 0.85% to 2.55% 0.23% to 0.23% (39.00)% to (37.95)% MFS(R) GLOBAL EQUITY SERIES 2012 0.85% to 2.50% 1.03% to 1.27% 20.30% to 22.30% 2011 0.85% to 2.75% 0.74% to 0.83% (6.92)% to (5.13)% 2010 0.85% to 2.50% 0.98% to 1.01% 9.59% to 11.41% 2009 0.85% to 2.50% 2.19% to 2.24% 28.72% to 30.87% 2008 0.85% to 2.50% 1.17% to 1.18% (35.41)% to (34.33)% MFS(R) HIGH INCOME SERIES 2012 0.85% to 2.75% 7.55% to 7.88% 11.58% to 13.72% 2011 0.85% to 2.75% 5.70% to 15.88% 1.28% to 3.22% 2010 0.85% to 2.75% 8.38% to 8.38% 11.62% to 13.76% 2009 0.85% to 2.70% 3.20% to 3.20% 41.22% to 43.85% 2008 0.85% to 2.55% 5.23% to 7.65% (30.29)% to (29.10)%
SA-189 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES 2012 1,159,708 $10.928172 to $16.769657 $10,286,064 2011 1,469,276 6.300724 to 9.445792 11,299,773 2010 1,730,789 6.426421 to 9.495479 13,639,006 2009 2,124,311 5.861113 to 8.535636 15,171,344 2008 2,425,182 4.308344 to 6.184005 12,665,089 MFS(R) INVESTORS TRUST SERIES 2012 8,821,250 12.947102 to 15.044887 95,170,363 2011 11,543,812 10.955973 to 12.975161 106,104,005 2010 13,636,705 11.295940 to 13.634631 130,100,977 2009 15,504,702 10.254324 to 12.621503 135,280,667 2008 16,657,966 6.595768 to 8.149753 116,454,107 MFS(R) MID CAP GROWTH SERIES 2012 3,312,657 6.292057 to 18.380541 19,466,114 2011 3,997,375 5.446116 to 16.214434 20,537,953 2010 5,221,123 5.843870 to 17.751327 29,071,223 2009 5,591,683 4.545716 to 14.065549 24,402,994 2008 5,647,080 3.136146 to 3.233557 17,681,671 MFS(R) NEW DISCOVERY SERIES 2012 3,994,445 10.544547 to 23.855023 62,669,054 2011 5,163,096 18.295413 to 20.226875 67,973,864 2010 6,088,733 20.562993 to 23.170563 90,447,643 2009 7,298,241 8.222464 to 15.211050 80,594,539 2008 8,467,810 5.168903 to 9.400994 58,720,258 MFS(R) TOTAL RETURN SERIES 2012 21,225,795 13.548161 to 13.729253 315,385,211 2011 25,440,365 12.438064 to 12.516844 345,863,316 2010 29,017,282 12.305451 to 12.641987 395,780,837 2009 31,980,750 11.827007 to 14.627193 404,732,803 2008 34,789,260 10.592590 to 12.498652 380,930,633 MFS(R) VALUE SERIES 2012 5,634,579 14.748701 to 14.871543 86,066,142 2011 6,402,956 12.897618 to 13.039429 86,277,227 2010 6,837,270 13.023053 to 13.443928 95,533,071 2009 6,768,813 12.374329 to 15.328597 88,146,324 2008 5,867,518 11.556828 to 12.597874 66,474,407 MFS(R) RESEARCH BOND SERIES 2012 6,466,424 12.972863 to 13.176544 85,900,778 2011 6,808,775 12.178636 to 12.616431 85,737,316 2010 6,592,406 11.495054 to 12.148560 79,300,456 2009 5,542,044 11.593479 to 11.982110 63,395,804 2008 4,210,154 9.750337 to 10.403409 42,252,422 MFS(R) RESEARCH INTERNATIONAL SERIES 2012 1,562,453 13.944898 to 14.554676 20,403,493 2011 1,783,295 12.051524 to 12.819692 20,296,461 2010 1,874,782 13.637966 to 14.786061 24,340,466 2009 2,055,159 12.412738 to 13.723028 24,492,666 2008 2,273,342 8.987191 to 9.566686 21,061,688 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ MFS(R) INVESTORS GROWTH STOCK SERIES 2012 1.10% to 2.70% -- to 0.46% 13.86% to 15.69% 2011 1.10% to 2.55% 0.55% to 0.55% (1.96)% to (0.52)% 2010 1.10% to 2.55% 0.44% to 0.44% 9.65% to 11.25% 2009 1.10% to 2.55% 0.72% to 0.72% 36.04% to 38.03% 2008 1.10% to 2.55% 0.58% to 0.58% (38.47)% to (37.57)% MFS(R) INVESTORS TRUST SERIES 2012 0.85% to 2.75% 0.88% to 1.13% 15.95% to 18.17% 2011 0.85% to 2.75% 0.92% to 0.93% (4.84)% to (3.01)% 2010 0.85% to 2.75% 1.18% to 1.18% 8.09% to 10.16% 2009 0.85% to 2.70% 1.66% to 1.66% 23.52% to 25.82% 2008 0.85% to 2.55% 0.65% to 0.65% (34.77)% to (33.65)% MFS(R) MID CAP GROWTH SERIES 2012 0.85% to 2.75% -- to -- 13.36% to 15.53% 2011 0.85% to 2.75% -- to -- (8.56)% to (6.81)% 2010 0.85% to 2.70% -- to -- 26.20% to 28.56% 2009 0.85% to 2.70% 0.33% to 0.33% 38.00% to 40.58% 2008 0.85% to 2.55% -- to -- (52.78)% to (51.97)% MFS(R) NEW DISCOVERY SERIES 2012 0.65% to 2.75% -- to -- 17.94% to 20.11% 2011 0.85% to 2.75% -- to -- (12.70)% to (11.03)% 2010 0.85% to 2.75% -- to -- 32.64% to 35.19% 2009 0.85% to 2.55% -- to -- 59.08% to 61.80% 2008 0.85% to 2.55% -- to -- (40.86)% to (39.84)% MFS(R) TOTAL RETURN SERIES 2012 0.50% to 2.75% 2.54% to 3.08% 8.24% to 10.38% 2011 0.50% to 2.75% 3.56% to 3.62% (0.99)% to 1.08% 2010 0.50% to 2.75% -- to -- 6.95% to 9.09% 2009 0.85% to 2.70% 3.75% to 3.75% 14.89% to 17.03% 2008 0.85% to 2.55% 2.72% to 3.11% (24.10)% to (22.79)% MFS(R) VALUE SERIES 2012 0.50% to 2.75% 1.44% to 1.73% 13.11% to 15.30% 2011 0.50% to 2.75% 1.42% to 1.99% (3.01)% to (0.96)% 2010 0.50% to 2.75% -- to -- 8.51% to 10.66% 2009 0.85% to 2.70% 0.76% to 1.03% 19.19% to 21.68% 2008 0.85% to 2.55% 1.25% to 1.77% (34.28)% to (33.15)% MFS(R) RESEARCH BOND SERIES 2012 0.50% to 2.75% 2.36% to 2.63% 4.44% to 6.52% 2011 0.50% to 2.75% 2.92% to 4.19% 3.85% to 5.95% 2010 0.50% to 2.75% -- to -- 4.55% to 6.67% 2009 0.85% to 2.70% 2.04% to 2.04% 12.83% to 15.18% 2008 0.85% to 2.55% 2.51% to 2.51% (4.82)% to (3.19)% MFS(R) RESEARCH INTERNATIONAL SERIES 2012 0.85% to 2.75% 1.63% to 2.94% 13.53% to 15.71% 2011 0.85% to 2.75% 1.99% to 2.12% (13.30)% to (11.63)% 2010 0.85% to 2.75% 1.55% to 1.55% 7.81% to 9.87% 2009 0.85% to 2.70% 1.84% to 1.84% 27.37% to 29.75% 2008 0.85% to 2.55% 0.56% to 0.83% (43.85)% to (42.88)%
SA-190 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- MFS(R) RESEARCH SERIES 2012 379,049 $12.462085 to $14.183107 $4,981,965 2011 419,371 10.895528 to 12.197402 4,790,149 2010 466,426 11.222139 to 12.357294 5,453,876 2009 505,154 9.927811 to 10.753312 5,185,311 2008 277,825 7.797435 to 8.307570 2,224,424 BLACKROCK GLOBAL ALLOCATION V.I. FUND 2012 9,304 10.402073 to 10.488588 96,822 2011 1,934 9.493620 to 9.506683 18,375 BLACKROCK GLOBAL OPPORTUNITIES V.I. FUND 2012 1,462 14.419749 to 14.419749 21,086 2011 1,485 12.660099 to 12.660099 18,803 2010 1,975 14.750428 to 15.280107 29,387 2009 1,978 13.242298 to 13.663124 26,402 2008 3,119 10.185255 to 10.466966 31,960 BLACKROCK LARGE CAP GROWTH V.I. FUND 2012 35,872 9.805179 to 11.593941 414,538 2011 41,592 8.659900 to 10.280734 418,322 2010 45,021 10.252747 to 10.708596 450,737 2009 56,164 9.025173 to 9.379470 481,784 2008 67,903 6.265303 to 7.308137 475,749 BLACKROCK EQUITY DIVIDEND V.I. FUND 2012 89,954 11.271579 to 11.522602 1,029,040 2011 11,186 10.219931 to 10.328117 115,017 UIF MID CAP GROWTH PORTFOLIO 2012 181,860 11.888928 to 19.340060 2,105,964 2011 245,325 11.052068 to 18.314240 2,662,967 2010 228,605 12.007960 to 20.269856 2,711,084 2009 211,783 9.155877 to 15.743768 1,923,240 2008 136,133 5.790212 to 5.867795 794,251 INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND+ 2012 69,297 12.298679 to 19.252196 836,670 2011 71,387 9.964752 to 10.594517 743,637 2010 89,684 10.128192 to 10.597346 939,652 2009 86,325 8.495059 to 8.747530 751,663 2008 59,488 6.255779 to 6.339560 377,827 MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO 2012 589 8.314405 to 8.314405 4,897 MORGAN STANLEY MULTI CAP GROWTH PORTFOLIO 2012 33,561 5.104420 to 5.653693 180,121 2011 33,004 4.710467 to 5.157715 162,285 2010 40,704 5.246144 to 5.678500 221,757 2009 44,840 4.244987 to 4.542372 196,847 2008 49,548 2.571081 to 2.719763 131,135 MORGAN STANLEY -- MID CAP GROWTH PORTFOLIO 2012 15,178 10.870781 to 11.821534 171,993 2011 13,573 10.267063 to 11.070503 144,190 2010 1,983 11.168445 to 12.088848 23,302 2009 1,666 8.644265 to 9.249819 15,201 2008 1,674 5.538087 to 5.858325 9,698 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ MFS(R) RESEARCH SERIES 2012 0.85% to 2.50% 0.40% to 0.77% 14.38% to 16.28% 2011 0.85% to 2.50% 0.88% to 1.02% (2.91)% to (1.29)% 2010 0.85% to 2.50% 0.91% to 1.00% 13.04% to 14.92% 2009 0.85% to 2.50% 1.47% to 1.50% 27.32% to 29.44% 2008 0.85% to 2.50% 0.52% to 0.63% (37.67)% to (36.63)% BLACKROCK GLOBAL ALLOCATION V.I. FUND 2012 0.50% to 0.75% 1.64% to 1.88% 9.15% to 9.42% 2011 0.50% to 0.65% 3.80% to 4.01% (5.06)% to (4.93)% BLACKROCK GLOBAL OPPORTUNITIES V.I. FUND 2012 2.45% to 2.45% 1.05% to 1.05% 11.84% to 11.84% 2011 2.05% to 2.05% 1.14% to 1.14% (14.17)% to (14.17)% 2010 1.65% to 2.05% 3.11% to 3.12% 8.97% to 9.41% 2009 1.65% to 2.05% 0.16% to 0.16% 30.01% to 30.54% 2008 1.65% to 2.05% 0.05% to 0.34% (47.03)% to (46.82)% BLACKROCK LARGE CAP GROWTH V.I. FUND 2012 1.75% to 2.15% 0.87% to 1.42% 12.77% to 13.23% 2011 1.75% to 2.15% 0.87% to 0.87% 0.27% to 0.68% 2010 1.65% to 2.15% 1.11% to 1.13% 13.03% to 13.60% 2009 1.65% to 2.15% 0.01% to 0.01% 23.50% to 24.11% 2008 1.40% to 2.15% 0.65% to 3.29% (41.96)% to (41.52)% BLACKROCK EQUITY DIVIDEND V.I. FUND 2012 0.30% to 1.45% 2.06% to 2.40% 10.29% to 11.57% 2011 0.30% to 1.45% 0.49% to 1.67% 2.20% to 3.28% UIF MID CAP GROWTH PORTFOLIO 2012 0.85% to 2.70% -- to -- 5.60% to 7.57% 2011 0.85% to 2.70% 0.23% to 0.23% (9.65)% to (7.96)% 2010 0.85% to 2.70% -- to -- 28.75% to 31.15% 2009 0.85% to 2.70% -- to -- 53.18% to 56.04% 2008 0.85% to 2.45% 0.33% to 0.60% (45.89)% to (45.31)% INVESCO VAN KAMPEN V.I. AMERICAN VALUE FUND+ 2012 0.85% to 2.40% 0.65% to 0.65% 14.30% to 16.09% 2011 0.85% to 2.45% 0.28% to 0.61% (1.61)% to (0.03)% 2010 0.85% to 2.45% 0.87% to 0.88% 19.23% to 21.15% 2009 0.85% to 2.45% 1.11% to 1.14% 35.80% to 37.98% 2008 0.85% to 2.45% 0.25% to 0.25% (40.20)% to (39.56)% MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO 2012 2.15% to 2.15% -- to -- 11.41% to 11.41% MORGAN STANLEY MULTI CAP GROWTH PORTFOLIO 2012 1.35% to 2.50% -- to -- 8.36% to 9.62% 2011 1.35% to 2.50% -- to -- (10.21)% to (9.17)% 2010 1.35% to 2.50% -- to -- 23.58% to 25.01% 2009 1.35% to 2.50% -- to -- 65.11% to 67.01% 2008 1.35% to 2.50% -- to -- (50.42)% to (49.84)% MORGAN STANLEY -- MID CAP GROWTH PORTFOLIO 2012 1.35% to 2.20% -- to -- 5.88% to 6.78% 2011 1.35% to 2.20% 0.14% to 0.16% (9.20)% to (8.42)% 2010 1.35% to 2.50% -- to -- 29.20% to 30.69% 2009 1.35% to 2.50% -- to -- 56.09% to 57.89% 2008 1.35% to 2.50% 0.46% to 0.53% (49.48)% to (48.89)%
SA-191 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- MORGAN STANLEY --FLEXIBLE INCOME PORTFOLIO 2012 6,472 $12.970010 to $13.037470 $84,156 2011 6,528 11.700689 to 11.755661 76,556 2010 3,829 11.421484 to 11.469401 43,883 2009 3,863 10.673124 to 10.712557 41,357 2008 3,868 9.088189 to 9.117210 35,243 BLACKROCK CAPITAL APPRECIATION V.I. FUND 2012 95,996 9.927679 to 10.148832 972,985 2011 12,142 8.869117 to 8.963072 108,335 COLUMBIA VARIABLE PORTFOLIO -- MARSICO INTERNATIONAL OPPORTUNITIES FUND 2012 5,438,166 1.548002 to 15.076473 9,036,590 2011 6,617,853 1.338641 to 13.181602 9,146,485 2010 8,705,757 1.624525 to 16.190644 14,070,397 2009 10,858,761 1.361070 to 1.452890 15,386,774 2008 13,963,157 1.012127 to 1.071276 14,549,099 COLUMBIA VARIABLE PORTFOLIO -- HIGH INCOME FUND 2012 4,607,786 2.153769 to 18.289596 10,423,315 2011 5,639,212 1.903982 to 16.339068 10,989,710 2010 6,828,198 1.817245 to 15.759251 12,341,363 2009 8,290,544 1.651008 to 14.484465 13,440,768 2008 10,845,111 1.100653 to 1.164936 12,317,476 COLUMBIA VARIABLE PORTFOLIO -- MARSICO FOCUSED EQUITIES FUND 2012 5,949,085 1.258311 to 15.188400 7,799,396 2011 7,287,366 1.142364 to 13.941301 8,462,648 2010 9,575,924 1.193073 to 14.736564 11,249,183 2009 11,489,193 1.022174 to 12.772817 11,487,598 2008 14,430,400 0.763373 to 0.808002 11,387,513 COLUMBIA VARIABLE PORTFOLIO -- ASSET ALLOCATION FUND 2012 3,289,299 1.123871 to 1.225172 3,985,657 2011 4,008,963 1.019491 to 1.102523 4,299,557 2010 3,829,738 1.054243 to 1.131020 4,207,927 2009 4,515,328 0.952958 to 1.014216 4,470,805 COLUMBIA VARIABLE PORTFOLIO -- MARSICO GROWTH FUND 2012 4,898,196 1.251027 to 15.248518 6,709,942 2011 6,334,997 1.133734 to 13.964689 7,494,012 2010 8,292,114 1.184433 to 14.743215 9,759,600 2009 10,752,733 0.931266 to 0.991159 10,373,899 2008 13,985,416 0.753832 to 0.795926 10,829,714 COLUMBIA VARIABLE PORTFOLIO -- MARSICO 21ST CENTURY FUND 2012 1,144,242 1.541885 to 13.580451 1,872,420 2011 1,543,365 1.408027 to 12.532397 2,187,763 2010 2,082,800 1.510522 to 1.626198 3,298,915 2009 2,568,897 1.319720 to 1.408758 3,525,414 2008 3,447,657 1.065417 to 1.127674 3,793,449 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ MORGAN STANLEY --FLEXIBLE INCOME PORTFOLIO 2012 1.65% to 1.70% 6.24% to 6.24% 10.85% to 10.90% 2011 1.65% to 1.70% 5.02% to 6.26% 2.44% to 2.50% 2010 1.65% to 1.70% 5.97% to 6.00% 7.01% to 7.07% 2009 1.65% to 1.70% 7.04% to 7.12% 17.44% to 17.50% 2008 1.65% to 1.70% 2.11% to 2.53% (23.21)% to (23.17)% BLACKROCK CAPITAL APPRECIATION V.I. FUND 2012 0.30% to 1.45% 0.62% to 0.76% 11.94% to 13.23% 2011 0.30% to 1.45% 0.26% to 0.82% (11.31)% to (10.37)% COLUMBIA VARIABLE PORTFOLIO -- MARSICO INTERNATIONAL OPPORTUNITIES FUND 2012 1.70% to 2.80% 0.94% to 0.98% 14.38% to 15.64% 2011 1.70% to 2.80% 0.81% to 0.84% (18.50)% to (17.60)% 2010 1.70% to 2.75% 0.68% to 0.70% 10.65% to 11.81% 2009 1.70% to 2.55% 1.87% to 1.90% 34.48% to 35.62% 2008 1.70% to 2.55% 1.25% to 1.76% (49.79)% to (49.36)% COLUMBIA VARIABLE PORTFOLIO -- HIGH INCOME FUND 2012 1.70% to 2.75% 5.30% to 6.74% 11.94% to 13.12% 2011 1.70% to 2.75% 5.57% to 7.21% 3.68% to 4.77% 2010 1.70% to 2.75% 7.54% to 7.86% 8.92% to 10.07% 2009 1.70% to 2.65% 10.36% to 10.36% 40.39% to 41.73% 2008 1.70% to 2.55% 10.06% to 10.51% (26.67)% to (26.05)% COLUMBIA VARIABLE PORTFOLIO -- MARSICO FOCUSED EQUITIES FUND 2012 1.70% to 2.80% 0.36% to 0.36% 8.95% to 10.15% 2011 1.70% to 2.80% 0.44% to 0.45% (5.30)% to (4.25)% 2010 1.70% to 2.75% 0.44% to 0.44% 15.50% to 16.72% 2009 1.70% to 2.65% 0.65% to 0.65% 25.31% to 26.51% 2008 1.70% to 2.55% 0.10% to 0.10% (42.78)% to (42.29)% COLUMBIA VARIABLE PORTFOLIO -- ASSET ALLOCATION FUND 2012 1.70% to 2.50% 2.14% to 2.22% 10.24% to 11.12% 2011 1.70% to 2.50% 2.23% to 2.61% (3.30)% to (2.52)% 2010 1.70% to 2.50% 2.46% to 2.66% 10.63% to 11.52% 2009 1.70% to 2.50% 4.00% to 4.10% 20.94% to 21.91% COLUMBIA VARIABLE PORTFOLIO -- MARSICO GROWTH FUND 2012 1.70% to 2.75% 0.68% to 1.02% 9.19% to 10.35% 2011 1.70% to 2.75% 0.29% to 0.55% (5.28)% to (4.28)% 2010 1.70% to 2.75% 0.12% to 0.12% 18.25% to 19.50% 2009 1.70% to 2.50% 0.75% to 0.75% 23.54% to 24.53% 2008 1.70% to 2.50% 0.32% to 0.33% (40.94)% to (40.47)% COLUMBIA VARIABLE PORTFOLIO -- MARSICO 21ST CENTURY FUND 2012 1.70% to 2.75% -- to -- 8.36% to 9.51% 2011 1.70% to 2.75% -- to -- (14.32)% to (13.42)% 2010 1.70% to 2.55% -- to -- 14.46% to 15.44% 2009 1.70% to 2.55% 0.11% to 0.12% 23.87% to 24.93% 2008 1.70% to 2.55% -- to -- (44.99)% to (44.52)%
SA-192 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO -- MID CAP GROWTH FUND 2012 7,972,016 $1.087562 to $18.212065 $9,616,372 2011 10,071,191 0.992277 to 16.791689 10,570,666 2010 13,666,437 1.063187 to 18.181663 14,564,931 2009 18,395,926 0.831367 to 14.382918 14,934,968 2008 23,779,876 0.555411 to 0.587876 13,599,147 COLUMBIA VARIABLE PORTFOLIO -- DIVIDEND OPPORTUNITY FUND+ 2012 1,030,694 9.497019 to 9.672993 9,901,448 2011 1,191,510 8.559404 to 8.622664 10,246,502 OPPENHEIMER CAPITAL APPRECIATION FUND/VA 2012 47,922 9.584110 to 10.156114 482,974 2011 48,184 8.630210 to 9.036227 432,758 2010 58,598 8.967505 to 9.277378 540,945 2009 64,396 8.420109 to 8.607140 551,924 2008 20,118 5.985860 to 6.045910 121,151 OPPENHEIMER GLOBAL SECURITIES FUND/VA 2012 619,524 11.324646 to 17.046140 6,806,454 2011 724,077 9.442914 to 14.478898 6,664,682 2010 783,025 10.411249 to 16.261862 7,996,757 2009 820,080 9.075111 to 14.439532 7,342,105 2008 555,493 6.480915 to 6.567771 3,625,000 OPPENHEIMER MAIN STREET FUND(R) /VA 2012 100,874 11.073999 to 16.287648 1,110,299 2011 106,383 9.616108 to 14.306888 1,021,065 2010 118,111 9.767795 to 14.700706 1,153,987 2009 107,960 8.539296 to 13.000404 922,344 2008 59,943 6.705097 to 6.755457 403,550 OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/ VA 2012 480,151 12.696051 to 18.748471 5,931,035 2011 562,694 10.881609 to 16.368904 5,999,393 2010 610,439 11.242391 to 17.227479 6,773,021 2009 641,212 9.213986 to 14.382713 5,861,068 2008 359,086 6.698951 to 6.788641 2,422,359 OPPENHEIMER VALUE FUND/ VA 2012 18,599 9.461400 to 10.026112 184,136 2011 21,369 8.573920 to 8.977327 190,149 2010 19,823 9.199060 to 9.516918 187,255 2009 15,324 8.211525 to 8.393926 127,745 2008 9,437 6.282392 to 6.345401 59,582 PUTNAM VT DIVERSIFIED INCOME FUND 2012 1,730,044 13.046179 to 17.704317 23,058,536 2011 1,704,081 11.797815 to 16.309098 20,344,537 2010 1,770,887 12.287807 to 17.303702 21,958,810 2009 1,716,065 10.999008 to 15.777861 18,736,189 2008 925,485 7.045284 to 7.140272 6,570,180 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ COLUMBIA VARIABLE PORTFOLIO -- MID CAP GROWTH FUND 2012 1.70% to 2.75% -- to -- 8.46% to 9.60% 2011 1.70% to 2.75% -- to -- (7.64)% to (6.67)% 2010 1.70% to 2.75% 0.07% to 0.07% 26.55% to 27.88% 2009 1.70% to 2.65% -- to -- 40.08% to 41.42% 2008 1.70% to 2.55% -- to -- (45.69)% to (45.23)% COLUMBIA VARIABLE PORTFOLIO -- DIVIDEND OPPORTUNITY FUND+ 2012 1.70% to 2.80% -- to -- 10.95% to 12.18% 2011 1.70% to 2.80% -- to -- (14.41)% to (13.77)% OPPENHEIMER CAPITAL APPRECIATION FUND/VA 2012 1.25% to 2.45% 0.40% to 0.40% 11.05% to 12.39% 2011 1.25% to 2.45% 0.11% to 0.11% (3.76)% to (2.60)% 2010 1.25% to 2.45% -- to -- 6.50% to 7.79% 2009 1.25% to 2.45% 0.01% to 0.01% 40.67% to 42.36% 2008 1.25% to 2.45% -- to -- (44.88)% to (44.44)% OPPENHEIMER GLOBAL SECURITIES FUND/VA 2012 0.85% to 2.70% 1.89% to 1.92% 17.73% to 19.93% 2011 0.85% to 2.70% 0.86% to 1.05% (10.96)% to (9.30)% 2010 0.85% to 2.70% 1.08% to 1.20% 12.62% to 14.72% 2009 0.85% to 2.70% 1.89% to 1.89% 35.65% to 38.18% 2008 0.85% to 2.45% -- to -- (38.70)% to (38.04)% OPPENHEIMER MAIN STREET FUND(R) /VA 2012 1.25% to 2.40% 0.66% to 0.66% 13.84% to 15.16% 2011 1.25% to 2.40% 0.57% to 0.58% (2.68)% to (1.55)% 2010 1.25% to 2.40% 0.72% to 0.86% 13.08% to 14.39% 2009 1.25% to 2.40% 1.21% to 1.21% 24.96% to 26.41% 2008 1.25% to 2.15% -- to -- (36.40)% to (36.02)% OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/ VA 2012 0.85% to 2.70% 0.33% to 0.33% 14.54% to 16.67% 2011 0.85% to 2.70% 0.38% to 0.40% (4.98)% to (3.21)% 2010 0.85% to 2.70% 0.26% to 0.42% 19.78% to 22.01% 2009 0.85% to 2.70% 0.45% to 0.45% 33.24% to 35.73% 2008 0.85% to 2.45% -- to -- (36.23)% to (35.55)% OPPENHEIMER VALUE FUND/ VA 2012 1.25% to 2.45% 1.13% to 1.22% 10.35% to 11.68% 2011 1.25% to 2.45% 0.88% to 0.91% (6.80)% to (5.67)% 2010 1.25% to 2.45% 0.84% to 0.89% 12.03% to 13.38% 2009 1.25% to 2.45% 0.34% to 1.04% 29.37% to 30.93% 2008 1.25% to 2.45% -- to -- (41.61)% to (41.14)% PUTNAM VT DIVERSIFIED INCOME FUND 2012 0.85% to 2.70% 5.51% to 5.85% 8.55% to 10.58% 2011 0.85% to 2.70% 9.09% to 9.70% (5.75)% to (3.99)% 2010 0.85% to 2.70% 15.21% to 15.63% 9.67% to 11.72% 2009 0.85% to 2.70% 2.13% to 3.89% 51.22% to 54.04% 2008 0.85% to 2.45% -- to -- (31.10)% to (30.36)%
SA-193 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND 2012 163,959 $10.968758 to $11.624156 $2,453,434 2011 64,051 9.843114 to 10.306896 702,368 2010 55,503 10.129787 to 10.480475 627,010 2009 34,566 9.051288 to 9.253044 316,761 2008 14,863 6.860423 to 6.929740 102,589 PUTNAM VT INTERNATIONAL VALUE FUND 2012 26,718 7.944968 to 13.902110 209,457 2011 34,887 6.610214 to 11.688567 227,998 2010 10,499 7.567555 to 7.763364 80,957 2009 10,071 7.217723 to 7.338204 73,361 2008 6,938 5.844073 to 5.888359 40,729 PUTNAM VT INTERNATIONAL EQUITY FUND 2012 44,962 7.562887 to 8.034559 351,891 2011 45,155 6.360315 to 6.673092 295,074 2010 37,709 7.851160 to 8.134685 301,731 2009 38,166 7.316213 to 7.486362 282,525 2008 11,979 6.018823 to 6.082250 72,546 PUTNAM VT SMALL CAP VALUE FUND 2012 124,851 11.643282 to 18.038393 2,037,385 2011 150,277 10.034835 to 15.726231 2,223,226 2010 27,671 10.665254 to 16.907758 310,558 2009 21,205 8.431222 to 8.571990 179,698 2008 11,497 6.560349 to 6.598994 75,622 PUTNAM VT VOYAGER FUND 2012 177,838 10.136459 to 14.310109 2,352,712 2011 55,647 9.580455 to 12.590426 690,523 2010 729 15.402708 to 15.402708 11,236 JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO -- 1 2012 5,902,959 12.517433 to 12.555596 82,006,190 2011 6,560,815 12.069936 to 12.172408 87,932,368 2010 7,135,061 11.373639 to 11.602833 90,515,342 2009 7,636,323 10.542935 to 10.879732 90,092,930 2008 5,156,610 9.736334 to 10.505735 56,439,054 JPMORGAN INSURANCE TRUST U.S. EQUITY PORTFOLIO --1 2012 502,862 14.318621 to 16.345889 7,260,683 2011 679,912 12.336241 to 14.231411 8,437,083 2010 755,738 12.741866 to 14.854531 9,668,261 2009 791,608 11.371303 to 13.396659 9,070,657 2008 860,583 8.300173 to 8.621776 7,484,287 JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO -- 1 2012 550,950 11.662724 to 17.929904 8,595,927 2011 666,974 10.169123 to 15.814407 9,039,740 2010 725,896 10.456407 to 16.449289 10,115,535 2009 799,238 8.858494 to 14.096719 9,463,584 2008 850,964 6.611804 to 8.469233 7,534,356 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL ASSET ALLOCATION FUND 2012 1.25% to 2.45% 0.73% to 0.73% 11.44% to 12.78% 2011 1.25% to 2.45% 3.67% to 4.35% (2.83)% to (1.66)% 2010 1.25% to 2.45% 5.42% to 5.50% 11.92% to 13.27% 2009 1.25% to 2.45% 5.82% to 5.93% 31.94% to 33.53% 2008 1.25% to 2.45% -- to -- (33.27)% to (32.74)% PUTNAM VT INTERNATIONAL VALUE FUND 2012 1.25% to 2.30% 2.97% to 3.01% 18.94% to 20.19% 2011 1.25% to 2.30% 1.16% to 2.55% (15.75)% to (14.85)% 2010 1.25% to 2.15% 2.15% to 7.70% 4.85% to 5.79% 2009 1.25% to 2.15% -- to -- 23.51% to 24.62% 2008 1.25% to 2.15% -- to -- (44.71)% to (44.38)% PUTNAM VT INTERNATIONAL EQUITY FUND 2012 1.25% to 2.50% 2.01% to 2.16% 18.91% to 20.40% 2011 1.25% to 2.50% 3.01% to 3.26% (18.99)% to (17.97)% 2010 1.25% to 2.50% 2.15% to 3.50% 7.31% to 8.66% 2009 1.25% to 2.50% -- to -- 21.56% to 23.09% 2008 1.25% to 2.50% -- to -- (42.60)% to (42.12)% PUTNAM VT SMALL CAP VALUE FUND 2012 1.25% to 2.40% 0.44% to 0.63% 14.70% to 16.03% 2011 1.25% to 2.40% 0.04% to 0.55% (6.99)% to (5.91)% 2010 1.25% to 2.40% 0.28% to 0.28% 23.00% to 24.42% 2009 1.25% to 2.15% 1.14% to 1.76% 28.73% to 29.90% 2008 1.25% to 1.95% -- to -- (36.36)% to (36.06)% PUTNAM VT VOYAGER FUND 2012 0.50% to 1.45% 0.16% to 0.36% 12.58% to 13.66% 2011 0.50% to 1.00% -- to -- (18.26)% to (4.20)% 2010 0.50% to 0.50% -- to -- 20.20% to 20.20% JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO -- 1 2012 1.25% to 2.40% 4.47% to 5.04% 2.83% to 4.02% 2011 1.25% to 2.40% 5.34% to 5.68% 4.91% to 6.12% 2010 1.25% to 2.40% 3.63% to 4.13% 6.65% to 7.88% 2009 1.25% to 2.40% 6.71% to 6.71% 7.05% to 8.28% 2008 1.25% to 2.15% 5.70% to 5.70% (0.84)% to (0.47)% JPMORGAN INSURANCE TRUST U.S. EQUITY PORTFOLIO --1 2012 1.35% to 2.40% 1.46% to 1.50% 14.86% to 16.07% 2011 1.35% to 2.40% 1.18% to 1.19% (4.19)% to (3.18)% 2010 1.35% to 2.40% 0.86% to 0.91% 10.88% to 12.05% 2009 1.35% to 2.40% 2.78% to 2.78% 30.51% to 31.89% 2008 1.35% to 2.15% 1.12% to 1.13% (36.19)% to (35.67)% JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO -- 1 2012 1.25% to 2.40% 0.64% to 0.74% 13.38% to 14.69% 2011 1.25% to 2.40% 0.79% to 0.84% (3.86)% to (2.75)% 2010 1.25% to 2.40% 1.33% to 1.56% 16.69% to 18.04% 2009 1.25% to 2.40% 1.67% to 1.67% 32.45% to 33.98% 2008 1.25% to 2.15% 0.55% to 0.55% (40.12)% to (36.24)%
SA-194 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO --1 2012 2,252,854 $13.055281 to $15.731000 $29,044,210 2011 3,129,081 11.449213 to 13.941314 35,349,975 2010 3,531,055 11.410038 to 14.040281 39,745,472 2009 3,962,721 8.543247 to 12.570344 39,558,492 2008 3,976,359 6.841823 to 7.801356 31,843,554 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO -- 1 2012 264,863 13.104748 to 17.270884 3,513,548 2011 315,544 11.420794 to 15.210382 3,633,009 2010 343,848 10.767758 to 11.365424 3,936,629 2009 380,646 9.476105 to 9.922386 3,798,663 2008 385,721 7.208078 to 7.487459 2,910,662 JPMORGAN INSURANCE TRUST MID CAP GROWTH PORTFOLIO -- 1 2012 558,702 11.780980 to 18.416365 8,359,518 2011 764,849 10.273998 to 16.246268 9,980,892 2010 840,976 11.084997 to 17.731483 11,817,527 2009 953,831 8.934347 to 14.456538 10,825,577 2008 983,107 6.324547 to 7.876044 7,926,275 JPMORGAN INSURANCE TRUST MID CAP VALUE PORTFOLIO -- 1 2012 380,569 12.785886 to 18.823628 6,104,691 2011 534,703 10.755075 to 16.016848 7,226,664 2010 637,406 10.660006 to 16.058899 8,545,963 2009 684,371 8.743408 to 13.323919 7,538,425 2008 745,447 6.922182 to 8.337009 6,508,780 PUTNAM VT EQUITY INCOME FUND 2012 1,759 12.488476 to 16.119278 27,304 2011 31,532 13.527879 to 13.578750 426,630 PIMCO ALL ASSET PORTFOLIO 2012 14,671 11.320194 to 11.527936 168,501 2011 11,281 10.077613 to 10.091449 113,692 PIMCO EQS PATHFINDER PORTFOLIO 2012 81,722 10.162951 to 10.389198 844,011 2011 10,173 9.393438 to 9.492820 96,134 PIMCO GLOBAL MULTI-ASSET PORTFOLIO+ 2012 1,186 10.381024 to 10.381024 12,313 JENNISON 20/20 FOCUS PORTFOLIO 2012 44,545 1.470740 to 15.458007 131,830 2011 55,847 1.337415 to 14.171464 150,201 2010 52,103 1.449157 to 15.049554 183,943 2009 82,102 1.361803 to 14.215046 259,027 2008 104,870 0.883954 to 9.158214 212,539 JENNISON PORTFOLIO 2012 84,498 0.995530 to 7.762953 179,421 2011 101,969 0.880678 to 6.802469 196,196 2010 155,499 0.902404 to 6.904393 295,574 2009 184,747 0.828961 to 6.282479 358,668 2008 221,203 0.595194 to 4.468193 292,845 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO --1 2012 1.35% to 2.40% 1.80% to 1.88% 12.84% to 14.03% 2011 1.35% to 2.40% 1.63% to 1.73% (0.70)% to 0.34% 2010 1.35% to 2.40% 2.10% to 2.21% 11.69% to 12.87% 2009 1.25% to 2.40% 3.49% to 3.49% 23.44% to 24.87% 2008 1.25% to 2.15% 1.97% to 1.97% (38.54)% to (35.43)% JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO -- 1 2012 1.35% to 2.40% 0.61% to 0.71% 13.55% to 14.74% 2011 1.35% to 2.40% -- to 0.99% (0.56)% to 0.49% 2010 1.35% to 2.15% 0.91% to 0.93% 13.63% to 14.54% 2009 1.35% to 2.15% 0.80% to 0.81% 31.47% to 32.52% 2008 1.35% to 2.15% 0.76% to 0.77% (40.51)% to (40.04)% JPMORGAN INSURANCE TRUST MID CAP GROWTH PORTFOLIO -- 1 2012 1.25% to 2.40% -- to -- 13.36% to 14.67% 2011 1.25% to 2.40% -- to -- (8.38)% to (7.32)% 2010 1.25% to 2.40% -- to -- 22.65% to 24.07% 2009 1.25% to 2.40% -- to -- 39.65% to 41.27% 2008 1.25% to 2.15% -- to -- (44.98)% to (41.53)% JPMORGAN INSURANCE TRUST MID CAP VALUE PORTFOLIO -- 1 2012 1.25% to 2.40% 1.04% to 1.09% 17.52% to 18.88% 2011 1.25% to 2.40% 1.30% to 1.33% (0.26)% to 0.89% 2010 1.25% to 2.40% 1.13% to 1.17% 20.53% to 21.92% 2009 1.25% to 2.40% 2.37% to 2.37% 24.87% to 26.31% 2008 1.25% to 2.15% 0.01% to 1.54% (36.86)% to (34.13)% PUTNAM VT EQUITY INCOME FUND 2012 0.50% to 0.75% -- to 2.23% 18.41% to 18.71% 2011 0.50% to 0.65% -- to -- 1.26% to 1.41% PIMCO ALL ASSET PORTFOLIO 2012 0.50% to 1.45% 5.06% to 5.89% 13.16% to 14.23% 2011 0.50% to 0.65% 3.87% to 4.59% 0.78% to 0.91% PIMCO EQS PATHFINDER PORTFOLIO 2012 0.30% to 1.45% 0.83% to 0.98% 8.19% to 9.44% 2011 0.30% to 1.45% 0.04% to 0.12% (6.07)% to (5.07)% PIMCO GLOBAL MULTI-ASSET PORTFOLIO+ 2012 1.45% to 1.45% 3.07% to 3.07% 7.21% to 7.21% JENNISON 20/20 FOCUS PORTFOLIO 2012 1.40% to 2.00% -- to -- 8.43% to 9.08% 2011 1.40% to 2.15% -- to -- (6.54)% to (5.83)% 2010 1.40% to 2.00% -- to -- 5.24% to 5.87% 2009 1.40% to 2.15% -- to -- 54.06% to 55.22% 2008 1.40% to 2.15% -- to -- (40.69)% to (40.24)% JENNISON PORTFOLIO 2012 1.40% to 2.35% -- to -- 13.04% to 14.12% 2011 1.40% to 2.35% -- to -- (2.41)% to (1.48)% 2010 1.40% to 2.35% 0.02% to 0.02% 8.86% to 9.90% 2009 1.40% to 2.35% 0.28% to 0.29% 39.28% to 40.60% 2008 1.40% to 2.35% 0.07% to 0.07% (39.01)% to (38.42)%
SA-195 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- PRUDENTIAL VALUE PORTFOLIO 2012 66,136 $1.211291 to $1.308669 $84,945 2011 67,140 1.083787 to 1.162753 76,221 2010 73,378 1.176021 to 1.252920 89,904 2009 224,107 1.040455 to 1.120566 237,711 2008 146,144 0.760203 to 0.803702 114,639 PRUDENTIAL SERIES INTERNATIONAL GROWTH PORTFOLIO 2012 4,448 0.982742 to 0.982742 4,371 2011 4,451 0.821906 to 0.821906 3,658 2010 6,429 0.989198 to 1.038159 6,456 2009 6,449 0.885826 to 0.925036 5,791 2008 6,472 0.661706 to 0.687546 4,335 LEGG MASON CLEARBRIDGE VARIABLE EQUITY INCOME BUILDER PORTFOLIO 2012 5,511 10.320951 to 10.320951 56,878 2011 6,501 9.164549 to 9.164549 59,573 2010 9,725 8.613643 to 8.613643 83,764 2009 10,830 7.781013 to 7.781013 84,268 2008 12,313 6.420171 to 6.420171 79,048 LEGG MASON CLEARBRIDGE VARIABLE FUNDAMENTAL ALL CAP VALUE PORTFOLIO 2012 68,458 9.383529 to 9.491930 649,498 2011 85,182 8.292692 to 8.371736 712,907 2010 107,471 8.882732 to 9.050534 972,469 2009 130,364 7.763991 to 7.871215 1,025,780 2008 154,959 6.116948 to 6.170510 955,897 WESTERN ASSET VARIABLE GLOBAL HIGH YIELD BOND PORTFOLIO+ 2012 25,904 2.134001 to 2.228629 57,261 2011 30,330 1.835280 to 1.909972 57,558 2010 43,306 1.836238 to 1.904292 82,118 2009 42,808 1.626023 to 1.680391 71,655 2008 58,287 1.063733 to 1.095461 63,689 LEGG MASON CLEARBRIDGE VARIABLE LARGE CAP VALUE PORTFOLIO 2012 167,940 1.456722 to 1.485506 249,253 2011 232,913 1.269877 to 1.293026 300,983 2010 259,657 1.228844 to 1.249379 324,250 2009 305,067 1.107607 to 1.157459 352,039 2008 357,918 0.906691 to 0.942777 336,664 INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND 2012 136,154 11.014058 to 15.339500 1,553,672 2011 148,159 9.714248 to 13.754203 1,504,906 2010 157,652 10.023866 to 14.428775 1,685,931 2009 144,345 9.010887 to 13.186444 1,404,925 2008 100,990 7.322402 to 10.893737 834,319 INVESCO VAN KAMPEN V.I. COMSTOCK FUND 2012 22,275 15.421242 to 16.984478 359,435 2011 26,511 13.295328 to 14.475731 366,784 2010 27,217 13.925507 to 14.988434 391,939 2009 28,562 12.341037 to 13.131153 362,147 2008 29,627 9.854026 to 10.365093 298,231 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ PRUDENTIAL VALUE PORTFOLIO 2012 1.40% to 2.10% 0.54% to 0.55% 11.76% to 12.55% 2011 1.40% to 2.10% 0.52% to 0.52% (7.84)% to (7.20)% 2010 1.40% to 2.10% 0.33% to 0.33% 11.03% to 11.81% 2009 1.40% to 2.30% 1.65% to 1.65% 38.18% to 39.43% 2008 1.40% to 2.15% 1.39% to 1.40% (43.78)% to (43.36)% PRUDENTIAL SERIES INTERNATIONAL GROWTH PORTFOLIO 2012 1.90% to 1.90% -- to -- 19.57% to 19.57% 2011 1.90% to 1.90% 0.45% to 0.45% (16.91)% to (16.91)% 2010 1.40% to 1.90% 1.18% to 1.18% 11.67% to 12.23% 2009 1.40% to 1.90% 1.29% to 1.30% 33.87% to 34.54% 2008 1.40% to 1.90% 1.31% to 1.84% (51.42)% to (51.18)% LEGG MASON CLEARBRIDGE VARIABLE EQUITY INCOME BUILDER PORTFOLIO 2012 1.40% to 1.40% 2.78% to 2.78% 12.62% to 12.62% 2011 1.40% to 1.40% 2.75% to 2.75% 6.40% to 6.40% 2010 1.40% to 1.40% 3.86% to 3.86% 10.70% to 10.70% 2009 1.40% to 1.40% 3.33% to 3.33% 21.20% to 21.20% 2008 1.40% to 1.40% 0.68% to 0.68% (35.92)% to (35.92)% LEGG MASON CLEARBRIDGE VARIABLE FUNDAMENTAL ALL CAP VALUE PORTFOLIO 2012 1.40% to 1.60% 1.57% to 1.75% 13.15% to 13.38% 2011 1.40% to 1.60% 1.25% to 1.37% (7.68)% to (7.50)% 2010 1.40% to 1.90% 0.19% to 1.65% 14.41% to 14.98% 2009 1.40% to 1.90% 1.33% to 1.33% 26.93% to 27.56% 2008 1.40% to 1.90% 1.26% to 1.43% (37.77)% to (37.46)% WESTERN ASSET VARIABLE GLOBAL HIGH YIELD BOND PORTFOLIO+ 2012 1.40% to 1.75% 6.42% to 7.48% 16.28% to 16.68% 2011 1.40% to 1.75% 6.10% to 7.94% (0.05)% to 0.30% 2010 1.40% to 1.75% 8.95% to 9.01% 12.93% to 13.32% 2009 1.40% to 1.75% 9.34% to 10.84% 52.86% to 53.40% 2008 1.40% to 1.75% 7.68% to 11.09% (32.03)% to (31.79)% LEGG MASON CLEARBRIDGE VARIABLE LARGE CAP VALUE PORTFOLIO 2012 1.40% to 1.55% 2.04% to 2.34% 14.71% to 14.89% 2011 1.40% to 1.55% 2.16% to 2.27% 3.34% to 3.49% 2010 1.40% to 1.55% 2.85% to 2.93% 7.78% to 7.94% 2009 1.40% to 1.90% 1.86% to 1.93% 22.16% to 22.77% 2008 1.40% to 1.90% 1.00% to 1.06% (36.84)% to (36.52)% INVESCO VAN KAMPEN V.I. GROWTH AND INCOME FUND 2012 0.85% to 2.50% 1.31% to 1.32% 11.53% to 13.38% 2011 0.85% to 2.50% 1.02% to 1.03% (4.68)% to (3.09)% 2010 0.85% to 2.50% 0.10% to 0.10% 9.42% to 11.24% 2009 0.85% to 2.50% 3.63% to 3.72% 21.05% to 23.06% 2008 0.85% to 2.50% 1.86% to 1.86% (33.89)% to (30.20)% INVESCO VAN KAMPEN V.I. COMSTOCK FUND 2012 1.35% to 2.50% 1.49% to 1.52% 15.99% to 17.33% 2011 1.35% to 2.50% 1.33% to 1.35% (4.53)% to (3.42)% 2010 1.35% to 2.50% 0.13% to 0.13% 12.84% to 14.14% 2009 1.35% to 2.50% 4.32% to 4.33% 25.24% to 26.69% 2008 1.35% to 2.50% 2.28% to 2.31% (37.39)% to (36.66)%
SA-196 -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND+ 2012 2,308,545 $10.092241 to $10.441741 $23,600,563 2011 1,209,192 9.121149 to 9.222875 11,104,509 INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND+ 2012 282,900 9.767694 to 9.924071 2,783,539 WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND 2012 5,180 1.461617 to 15.095876 20,222 2011 10,126 1.248140 to 1.248140 12,638 2010 1,638,774 1.194023 to 1.194023 1,908,954 2009 19,321 1.073635 to 1.073635 19,724 2008 18,353 0.947268 to 0.947268 16,754 WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND 2012 10,722 1.639407 to 1.639407 17,578 2011 6,897 1.566088 to 1.566088 10,802 2010 6,897 1.465421 to 1.465421 10,108 2009 6,897 1.387455 to 1.387455 9,569 2008 6,897 1.255427 to 1.255427 8,659 WELLS FARGO ADVANTAGE VT INTRINSIC VALUE FUND 2012 22,196 1.246468 to 1.315436 28,343 2011 23,840 1.062802 to 1.116024 25,865 2010 25,517 1.106480 to 1.156101 28,778 2009 17,127 0.990225 to 1.029466 17,277 2008 19,588 0.863150 to 0.892888 17,249 WELLS FARGO ADVANTAGE VT INTERNATIONAL EQUITY FUND 2012 1,186,484 0.918360 to 1.668898 1,378,829 2011 1,533,104 0.828268 to 1.487983 1,536,435 2010 1,638,774 0.973781 to 1.729386 1,908,954 2009 19,321 0.962713 to 0.962713 19,724 2008 18,353 0.870506 to 0.870506 16,754 WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND 2012 131,157 12.513990 to 12.903704 1,598,916 2011 147,013 11.867818 to 12.085448 1,686,200 2010 153,497 12.720756 to 12.793044 1,871,368 2009 8,153 1.322620 to 1.356932 10,873 2008 7,325 0.882620 to 0.902819 6,505 WELLS FARGO ADVANTAGE VT DISCOVERY FUND 2012 290 17.968169 to 17.968169 5,194 2011 259 15.468782 to 15.468782 3,999 2010 222 15.612951 to 15.612951 3,469 2009 223 11.675368 to 11.675368 2,609 2008 225 8.434447 to 8.434447 1,898 WELLS FARGO ADVANTAGE VT SMALL CAP VALUE FUND 2012 977,638 12.214883 to 12.892309 12,220,444 2011 1,219,642 10.975750 to 11.332506 13,567,829 2010 1,402,515 12.132226 to 12.253941 17,086,708 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ INVESCO VAN KAMPEN V.I. AMERICAN FRANCHISE FUND+ 2012 0.85% to 2.75% -- to -- 10.65% to 12.77% 2011 1.35% to 2.75% -- to -- (8.79)% to (7.77)% INVESCO VAN KAMPEN V.I. MID CAP GROWTH FUND+ 2012 0.85% to 2.75% -- to -- (2.32)% to (0.76)% WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND 2012 1.35% to 2.10% 0.75% to 0.75% 10.69% to 11.52% 2011 1.85% to 1.85% 3.15% to 3.15% 4.53% to 4.53% 2010 1.85% to 1.85% 1.79% to 1.79% 11.21% to 11.21% 2009 1.85% to 1.85% 2.06% to 2.06% 13.34% to 13.34% 2008 1.85% to 1.85% 2.46% to 2.46% (30.41)% to (30.41)% WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND 2012 1.35% to 1.35% 1.41% to 1.41% 4.68% to 4.68% 2011 1.35% to 1.35% 2.67% to 2.67% 6.87% to 6.87% 2010 1.35% to 1.35% 3.38% to 3.38% 5.62% to 5.62% 2009 1.35% to 1.35% 4.51% to 4.51% 10.52% to 10.52% 2008 1.35% to 1.35% 4.78% to 4.78% 1.01% to 1.01% WELLS FARGO ADVANTAGE VT INTRINSIC VALUE FUND 2012 1.35% to 1.85% 1.32% to 1.35% 17.28% to 17.87% 2011 1.35% to 1.85% 0.54% to 0.54% (3.95)% to (3.47)% 2010 1.35% to 1.85% 0.86% to 0.86% 11.74% to 12.30% 2009 1.35% to 1.85% 2.03% to 2.03% 14.72% to 15.30% 2008 1.35% to 1.85% 1.91% to 1.94% (37.64)% to (37.32)% WELLS FARGO ADVANTAGE VT INTERNATIONAL EQUITY FUND 2012 1.35% to 2.50% 1.64% to 1.67% 10.88% to 12.16% 2011 1.35% to 2.50% 0.65% to 0.67% (14.94)% to (13.96)% 2010 1.85% to 1.85% -- to -- 13.37% to 13.90% 2009 1.85% to 1.85% 3.15% to 3.15% 10.59% to 10.59% 2008 1.85% to 1.85% 1.98% to 1.98% (44.45)% to (44.45)% WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND 2012 1.25% to 2.50% -- to -- 5.44% to 6.77% 2011 1.25% to 2.50% -- to -- (6.71)% to (5.53)% 2010 1.25% to 2.50% -- to -- 27.21% to 27.93% 2009 1.55% to 1.85% -- to -- 49.85% to 50.30% 2008 1.55% to 1.85% -- to -- (42.50)% to (42.33)% WELLS FARGO ADVANTAGE VT DISCOVERY FUND 2012 1.35% to 1.35% -- to -- 16.16% to 16.16% 2011 1.35% to 1.35% -- to -- (0.92)% to (0.92)% 2010 1.35% to 1.35% -- to -- 33.73% to 33.73% 2009 1.35% to 1.35% -- to -- 38.43% to 38.43% 2008 1.35% to 1.35% -- to -- (45.10)% to (45.10)% WELLS FARGO ADVANTAGE VT SMALL CAP VALUE FUND 2012 0.50% to 2.70% 1.15% to 1.16% 11.29% to 13.76% 2011 0.50% to 2.70% 0.90% to 1.08% (9.53)% to (7.52)% 2010 0.50% to 2.70% -- to -- 21.32% to 22.54%
SA-197 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONCLUDED) -------------------------------------------------------------------------------
UNIT FAIR VALUE SUB-ACCOUNT UNITS # LOWEST TO HIGHEST # NET ASSETS ------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND 2012 780,248 $11.762364 to $12.114819 $9,315,735 2011 874,327 10.435015 to 10.513961 9,158,329 INVESTMENT EXPENSE INCOME TOTAL RETURN RATIO LOWEST TO RATIO LOWEST TO RATIO LOWEST TO SUB-ACCOUNT HIGHEST* HIGHEST** HIGHEST*** ----------------------------- ------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND 2012 0.50% to 2.70% 0.60% to 0.60% 12.72% to 15.23% 2011 0.50% to 2.70% -- to -- 4.35% to 5.14%
* This represents the annualized contract expenses of the Sub-Account for the year indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the Funds and charges made directly to contract owner accounts through the redemption of units. Where the expense ratio is the same for each unit value, it is presented in both the lowest and highest columns. ** These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the Fund, net of management fees assessed by the Fund's manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the Fund in which the Sub-Account invests. Where the investment income ratio is the same for each unit value, it is presented in both the lowest and highest columns. *** This represents the total return for the year indicated and reflects a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the year indicated or from the effective date through the end of the reporting period. # Rounded units/unit fair values. Where only one unit value exists, it is presented in both the lowest and highest columns. + See Note 1 for additional information related to this Sub-Account.
RIDERS: The Sponsor Company will make certain deductions (as a percentage of average daily Sub-Account Value) for various rider charges: Optional Death Benefit Charge maximum of .15% Earnings Protection Benefit Charge maximum of .20% Principal First Charge maximum of .75% Principal First Preferred Charge maximum of .20% MAV/EPB Death Benefit Charge maximum of .30% MAV 70 Death Benefit Charge maximum of .20% MAV Plus Charge maximum of .20% Maximum Anniversary Value III Charge maximum of 1.50% Liquidity feature Charge maximum of .50% MAV V Charge maximum of 1.50% MAV IV Charge maximum of 1.50% Legacy Lock Charge maximum of 1.50% Daily Lock Charge maximum of 2.50% Safety Plus Charge maximum of 2.50% Future 5 Charge maximum of 2.50% Future 6 Charge maximum of 2.50% Maximum Daily Value Charge maximum of 1.50% Return of Premium IV Charge maximum of .75% Return of Premium V Charge maximum of .75% Return of Premium III Charge maximum of .75% Return of Premium Death Benefit Charge maximum of .75% These charges can be assessed as a reduction in unit values or a redemption of units from applicable contract owners' accounts as specified in the product prospectus. 7. SUBSEQUENT EVENTS: Management has evaluated events subsequent to December 31, 2012 and through the issuance date of the Account's financial statements, noting there are no subsequent events requiring adjustment or disclosure in the financial statements. SA-198 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of Hartford Life Insurance Company Hartford, Connecticut We have audited the accompanying consolidated balance sheets of Hartford Life Insurance Company and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2012. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Hartford Life Insurance Company and subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2012, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Hartford, Connecticut March 13, 2013 F-1 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 (IN MILLIONS) -------------------------------------------------------------------------------- REVENUES Fee income and other $3,002 $3,233 $3,226 Earned premiums 84 234 260 Net investment income (loss): Securities available-for-sale and other 2,545 2,579 2,622 Equity securities, trading 202 (14) 238 -------- -------- -------- Total net investment income 2,747 2,565 2,860 Net realized capital gains (losses): Total other-than-temporary impairment ("OTTI") losses (293) (196) (712) OTTI losses recognized in other comprehensive income 38 71 376 -------- -------- -------- Net OTTI losses recognized in earnings (255) (125) (336) Net realized capital gains (losses), excluding net OTTI losses recognized in earnings (1,158) 125 (608) -------- -------- -------- Total net realized capital losses (1,413) -- (944) -------- -------- -------- TOTAL REVENUES 4,420 6,032 5,402 BENEFITS, LOSSES AND EXPENSES Benefits, loss and loss adjustment expenses 2,900 3,107 2,948 Benefits, loss and loss adjustment expenses -- returns credited on international unit-linked bonds and pension products 201 (14) 238 Amortization of deferred policy acquisition costs and present value of future profits 324 427 110 Insurance operating costs and other expenses 294 2,674 1,365 Reinsurance loss on disposition (including goodwill impairment of $61) 61 -- -- Dividends to policyholders 20 17 21 -------- -------- -------- TOTAL BENEFITS, LOSSES AND EXPENSES 3,800 6,211 4,682 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 620 (179) 720 Income tax expense (benefit) 35 (325) 136 -------- -------- -------- INCOME FROM CONTINUING OPERATIONS, NET OF TAX 585 146 584 Income (loss) from discontinued operations, net of tax (29) 98 123 -------- -------- -------- NET INCOME 556 244 707 Net income attributable to the noncontrolling interest 2 -- 8 -------- -------- -------- NET INCOME ATTRIBUTABLE TO HARTFORD LIFE INSURANCE COMPANY $554 $244 $699 -------- -------- --------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-2 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2012 2011 2010 (IN MILLIONS) -------------------------------------------------------------------------------- COMPREHENSIVE INCOME Net income $556 $244 $707 -------- -------- -------- Other comprehensive income (loss): Change in net unrealized gain/loss on securities (1),(2) 1,120 1,174 1,473 Change in net gain/loss on cash-flow hedging instruments (1) (110) 103 117 Change in foreign currency translation adjustments (1) 24 (2) (17) -------- -------- -------- Total other comprehensive income 1,034 1,275 1,573 -------- -------- -------- Total comprehensive income 1,590 1,519 2,280 Less: Comprehensive income attributable to noncontrolling interest 2 -- 8 -------- -------- -------- TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO HARTFORD LIFE INSURANCE COMPANY $1,588 $1,519 $2,272 -------- -------- --------
(1) Net change in unrealized capital gain on securities is reflected net of tax benefit and other items of $1,001, $636 and $(793) for the years ended December 31, 2012, 2011 and 2010, respectively. Net gain (loss) on cash flow hedging instruments is net of tax provision (benefit) of $59, $(55) and $(63) for the years ended December 31, 2012, 2011 and 2010, respectively. There is no tax effect on cumulative translation adjustments. (2) There were reclassification adjustments for after-tax gains (losses) realized in net income of $(1), $52 and $(121) for the years ended December 31, 2012, 2011 and 2010, respectively. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-3 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2012 2011 (IN MILLIONS, EXCEPT FOR SHARE DATA) -------------------------------------------------------------------------------- ASSETS Investments: Fixed maturities, available-for-sale, at fair value (amortized cost of $45,753 and $46,236) (includes variable interest entity assets, at fair value, of $89 and $153) $49,404 $47,778 Fixed maturities, at fair value using the fair value option (includes variable interest entity assets, at fair value, of $132 and $338) 1,010 1,317 Equity securities, trading, at fair value (cost of $1,614 and $1,860) 1,847 1,967 Equity securities, available for sale, at fair value (cost of $408 and $443) 400 398 Mortgage loans (net of allowances for loan losses of $14 and $23) 4,935 4,182 Policy loans, at outstanding balance 1,951 1,952 Limited partnership and other alternative investments (includes variable interest entity assets of $6 and $7) 1,372 1,376 Other investments 582 1,974 Short-term investments 2,354 3,882 ----------- ----------- TOTAL INVESTMENTS 63,855 64,826 Cash 1,342 1,183 Premiums receivable and agents' balances 58 64 Reinsurance recoverables 2,893 5,006 Deferred policy acquisition costs and present value of future profits 3,072 3,448 Deferred income taxes, net 1,557 2,006 Goodwill 250 470 Other assets 1,306 925 Separate account assets 141,558 143,859 ----------- ----------- TOTAL ASSETS $215,891 $221,787 ----------- ----------- LIABILITIES Reserve for future policy benefits and unpaid losses and loss adjustment expenses $11,916 $11,831 Other policyholder funds and benefits payable 40,501 45,016 Other policyholder funds and benefits payable -- international unit-linked bonds and pension products 1,837 1,929 Consumer notes 161 314 Other liabilities (includes variable interest entity liabilities of $111 and $477) 9,535 9,927 Separate account liabilities 141,558 143,859 ----------- ----------- TOTAL LIABILITIES 205,508 212,876 COMMITMENTS AND CONTINGENCIES (NOTE 10) STOCKHOLDER'S EQUITY Common stock -- 1,000 shares authorized, issued and outstanding, par value $5,690 6 6 Additional paid-in capital 8,155 8,271 Accumulated other comprehensive income, net of tax 1,987 953 Retained earnings (deficit) 235 (319) ----------- ----------- TOTAL STOCKHOLDER'S EQUITY 10,383 8,911 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $215,891 $221,787 ----------- -----------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-4 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN COMPREHENSIVE STOCK CAPITAL INCOME (LOSS) (IN MILLIONS) --------------------------------------------------------------------------------------------------------- BALANCE, DECEMBER 31, 2011 $ 6 $ 8,271 $ 953 Capital contributions (to) from parent -- (116) -- Dividends declared -- -- -- Net income -- -- -- Change in noncontrolling interest ownership -- -- -- Total other comprehensive income -- -- 1,034 ---- ------- -------- BALANCE, DECEMBER 31, 2012 $6 $8,155 $1,987 ---- ------- -------- BALANCE, DECEMBER 31, 2010 $ 6 $ 8,265 $ (322) Capital contributions from parent -- 6 -- Dividends declared -- -- -- Net income -- -- -- Total other comprehensive income -- -- 1,275 ---- ------- -------- BALANCE, DECEMBER 31, 2011 $6 $8,271 $953 ---- ------- -------- BALANCE, DECEMBER 31, 2009 $ 6 $ 8,457 $ (2,070) Capital contributions (to) from parent -- (192) -- Dividends declared -- -- -- Cumulative effect of accounting changes, net of DAC and tax -- -- 175 Change in noncontrolling interest ownership -- -- -- Net income -- -- -- Total other comprehensive income -- -- 1,573 ---- ------- -------- BALANCE, DECEMBER 31, 2010 $6 $8,265 $(322) ---- ------- -------- RETAINED NON- TOTAL EARNINGS CONTROLLING STOCKHOLDER'S (DEFICIT) INTEREST EQUITY (IN MILLIONS) -------------------------------------- ----------------------------------------------------------------------- BALANCE, DECEMBER 31, 2011 $ (319) $ -- $ 8,911 Capital contributions (to) from parent -- -- (116) Dividends declared -- -- -- Net income 554 2 556 Change in noncontrolling interest ownership -- (2) (2) Total other comprehensive income -- -- 1,034 -------- ---- -------- BALANCE, DECEMBER 31, 2012 $235 $ -- $10,383 -------- ---- -------- BALANCE, DECEMBER 31, 2010 $ (562) $ -- $ 7,387 Capital contributions from parent -- -- 6 Dividends declared (1) -- (1) Net income 244 -- 244 Total other comprehensive income -- -- 1,275 -------- ---- -------- BALANCE, DECEMBER 31, 2011 $(319) $ -- $8,911 -------- ---- -------- BALANCE, DECEMBER 31, 2009 $ (1,113) $ 61 $ 5,341 Capital contributions (to) from parent -- -- (192) Dividends declared 1 -- 1 Cumulative effect of accounting changes, net of DAC and tax (149) -- 26 Change in noncontrolling interest ownership -- (69) (69) Net income 699 8 707 Total other comprehensive income -- -- 1,573 -------- ---- -------- BALANCE, DECEMBER 31, 2010 $(562) $ -- $7,387 -------- ---- --------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-5 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 (IN MILLIONS) -------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income (loss) $556 $244 $707 Adjustments to reconcile net income(loss) to net cash provided by operating activities Amortization of deferred policy acquisition costs and present value of future profits 359 474 178 Additions to deferred policy acquisition costs and present value of future profits (329) (381) (381) Change in: Reserve for future policy benefits and unpaid losses and loss adjustment expenses (44) 252 13 Reinsurance recoverables (47) 57 26 Receivables and other assets 158 9 (112) Payables and accruals (1,035) 2,402 295 Accrued and deferred income taxes 392 (125) (131) Net realized capital losses 1,413 1 882 Net receipts (disbursements) from investment contracts related to policyholder funds --international unit-linked bonds and pension products (92) (323) (167) Net (increase) decrease in equity securities, trading 120 312 164 Goodwill Impairment 149 -- -- Depreciation and amortization 164 194 207 Reinsurance loss on disposition, including goodwill impairment of $61 61 -- -- Other, net 202 (108) 201 --------- --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 2,027 3,008 1,882 INVESTING ACTIVITIES Proceeds from the sale/maturity/prepayment of: Fixed maturities and short-term investments, available-for-sale 25,163 19,203 28,581 Fixed maturities, fair value option 283 37 20 Equity securities, available-for-sale 133 147 171 Mortgage loans 306 332 1,288 Partnerships 110 128 151 Payments for the purchase of: Fixed maturities and short-term investments, available-for-sale (23,949) (20,517) (28,871) Fixed maturities, fair value option (182) (661) (74) Equity securities, available-for-sale (97) (230) (122) Mortgage loans (1,056) (1,246) (189) Partnerships (417) (436) (172) Proceeds from business sold 58 -- 241 Change in derivatives, net (2,275) 938 (644) Change in policy loans, net 1 176 (8) Change in payables for collateral under securities lending, net -- -- (46) Change in all other, net -- 1 (117) --------- --------- --------- NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (1,922) (2,128) 209 FINANCING ACTIVITIES Deposits and other additions to investment and universal life-type contracts 10,004 12,124 15,405 Withdrawals and other deductions from investment and universal life-type contracts (24,608) (22,720) (25,030) Net transfers from (to) separate accounts related to investment and universal life-type contracts 13,196 10,439 8,211 Net increase in securities loaned or sold under agreements to repurchase 1,615 -- -- Capital contributions (to) from parent -- -- (195) Net repayments at maturity or settlement of consumer notes (153) (68) (754) --------- --------- --------- NET CASH USED FOR FINANCING ACTIVITIES 54 (225) (2,363) Foreign exchange rate effect on cash -- (3) 10 Net increase (decrease) in cash 159 652 (262) Cash -- beginning of year 1,183 531 793 --------- --------- --------- CASH -- END OF YEAR $1,342 $1,183 $531 --------- --------- --------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Net cash paid (received) during the year for income taxes (395) (105) 354 Noncash return of capital (126) -- -- SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITY Conversion of fixed maturities, available-for-sale to equity securities, available-for-sale 43 -- --
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-6 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLAR AMOUNTS IN MILLIONS, UNLESS OTHERWISE STATED) -------------------------------------------------------------------------------- 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION Hartford Life Insurance Company (together with its subsidiaries, "HLIC", "Company", "we" or "our") is a provider of insurance and investment products in the United States ("U.S.") and is a wholly-owned subsidiary of Hartford Life and Accident Insurance Company ("HLA"). Hartford Life, Inc., a Delaware corporation ("HLI") is the parent of HLA. The Hartford Financial Services Group, Inc. ("The Hartford") is the ultimate parent of the Company. On January 1, 2013, HLI completed the sale of its Retirement Plans business to Massachusetts Mutual Life Insurance Company ("MassMutual") and on January 2, 2013 HLI completed the sale of its Individual Life insurance business to The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. ("Prudential"). For further discussion of these and other such transactions, see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under Hartford Funds Management Group, Inc., also a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. The Company effected the reorganization by distributing certain Mutual Funds subsidiaries to HLA in the form of a return of capital effective December 31, 2012. The reorganization was accounted for by the Company as a transfer of net assets at book value between entities under common control. In connection with the reorganization of the Mutual Funds business, investment advisory agreements between the Company's Mutual Funds subsidiaries and HL Investment Advisors, LLC, an indirect subsidiary of the Company, were terminated effective December 31, 2012. Following the reorganization, Hartford Funds Management Company, LLC, an indirect subsidiary of HLI, will replace HL Investment Advisors, LLC as the investment advisor for The Hartford's mutual funds. The Mutual Funds reporting segment contributed less than 10% of the net income attributable to HLIC for the year ended December 31, 2012. The carrying value of the subsidiaries distributed was $203 and $116 as of December 31, 2012 and 2011, respectively. For further discussion of the reorganization of the Mutual Funds business, see Note 7 --Goodwill and Note 18 -- Discontinued Operations of Notes to Consolidated Financial Statements. The Consolidated Financial Statements have been prepared on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. On January 1, 2012, the Company retrospectively adopted Accounting Standards Update No. 2010-26, FINANCIAL SERVICES -- INSURANCE (TOPIC 944): ACCOUNTING FOR COSTS ASSOCIATED WITH ACQUIRING OR RENEWING INSURANCE CONTRACTS which clarifies the definition of policy acquisition costs that are eligible for deferral. As a result of this accounting change, stockholder's equity as of January 1, 2010, decreased by approximately $1.0 billion, after-tax from $6.3 billion to $5.3 billion due to a reduction of the Company's deferred acquisition cost asset balance related to certain costs that do not meet the provisions of the revised standard. CONSOLIDATION The Consolidated Financial Statements include the accounts of HLIC, companies in which the Company directly or indirectly has a controlling financial interest and those variable interest entities ("VIEs") in which the Company is required to consolidate. Entities in which HLIC has significant influence over the operating and financing decisions but are not required to consolidate are reported using the equity method. For further discussions on VIEs, see Note 4 of Notes to Consolidated Financial Statements. Material intercompany transactions and balances between HLIC and its subsidiaries have been eliminated. DISCONTINUED OPERATIONS The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in discontinued operations if the operations and cash flows of the component have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction and the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. The Company is presenting the operations of certain businesses that meet the criteria for reporting as discontinued operations. Amounts for prior periods have been retrospectively reclassified. For information on the specific businesses and related impacts, see Note 18 -- Discontinued Operations of Notes to Consolidated Financial Statements F-7 USE OF ESTIMATES The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on investments; living benefits required to be fair valued; goodwill impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters (see Note 10). The related accounting policies are summarized in the Significant Accounting Policies section of this footnote unless indicated otherwise herein. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Consolidated Financial Statements. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year presentation. SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are as follows: SEGMENT INFORMATION The Company currently conducts business in a single reporting segment comprised of business from the Company's U.S. annuity, international annuity, and institutional and private-placement life insurance businesses, as well as the Retirement Plans and Individual Life businesses that were sold in January 2013. In addition, the Company no longer has a Mutual Funds reporting segment following the reorganization of its Mutual Funds business effective December 31, 2012. For further discussion of the Retirement Plans and Individual Life transactions, see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. For further discussion of the reorganization of the Mutual Funds business, see the Basis of Presentation section of this footnote. The Company's determination that it operates in a single reporting segment is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level. REVENUE RECOGNITION For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders' account balances and are recognized in the period in which services are provided. For the Company's traditional life and group disability products premiums are recognized as revenue when due from policyholders. INCOME TAXES The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The Company is included in The Hartford's consolidated Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, is consistent with the "parent down" approach. Under this approach, the Company's deferred tax assets and tax attributes are considered realized by it so long as the group is able to recognize (or currently use) the related deferred tax asset or attribute. Thus the need for a valuation allowance is determined at the consolidated return level rather than at the level of the individual entities comprising the consolidated group. DIVIDENDS TO POLICYHOLDERS Policyholder dividends are paid to certain life insurance policyholders. Policies that receive dividends are referred to as participating policies. Such dividends are accrued using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Participating policies were 5%, 2% and 3% of the total life insurance policies as of December 31, 2012, 2011, and 2010, respectively. Dividends to policyholders were $20, $17 and $21 for the years ended December 31, 2012, 2011, and 2010, respectively. There were no additional amounts of income allocated to participating policyholders. If limitations exist on the amount of net income from participating life insurance contracts that may be distributed to stockholder's, the policyholder's F-8 share of net income on those contracts that cannot be distributed is excluded from stockholder's equity by a charge to operations and a credit to a liability. FAIR VALUE The following financial instruments are carried at fair value in the Company's Consolidated Financial Statements: fixed maturity and equity securities, available-for-sale ("AFS"), fixed maturities at fair value using fair value option ("FVO"); equity securities, trading; short-term investments; freestanding and embedded derivatives; limited partnerships and other alternative investments measured at fair value; separate account assets; and certain other liabilities. INVESTMENTS OVERVIEW The Company's investments in fixed maturities include bonds, redeemable preferred stock and commercial paper. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are classified as AFS and are carried at fair value. The after-tax difference from cost or amortized cost is reflected in stockholders' equity as a component of Other Comprehensive Income (Loss) ("OCI"), after adjustments for the effect of deducting the life and pension policyholders' share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments. Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value. The equity investments associated with the variable annuity products offered in Japan are recorded at fair value and are classified as trading with changes in fair value recorded in net investment income. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value with the change in carrying value primarily accounted for under the equity method and accordingly the Company's share of earnings are included in net investment income. In addition, investment fund accounting is applied to a wholly-owned fund of funds. Recognition of limited partnerships and other alternative investment income is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds are on a one-month delay. Accordingly, income for the years ended December 31, 2012, 2011 and 2010 may not include the full impact of current year changes in valuation of the underlying assets and liabilities, which are generally obtained from the limited partnerships and other alternative investments' general partners. Other investments primarily consist of derivatives instruments which are carried at fair value. RECOGNITION AND PRESENTATION OF OTHER-THAN-TEMPORARY IMPAIRMENTS The Company deems debt securities and certain equity securities with debt-like characteristics (collectively "debt securities") to be other-than-temporarily impaired ("impaired") if a security meets the following conditions: a) the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the security's amortized cost basis and the fair value is separated into the portion representing a credit other-than-temporary impairment ("impairment"), which is recorded in net realized capital losses, and the remaining impairment, which is recorded in OCI. Generally, the Company determines a security's credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the security's effective yield prior to impairment. The remaining non-credit impairment, which is recorded in OCI, is the difference between the security's fair value and the Company's best estimate of expected future cash flows discounted at the security's effective yield prior to the impairment, which typically represents current market liquidity and risk premiums. The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the security's new cost basis. The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security's yield, if necessary. The Company's evaluation of whether a credit impairment exists for debt securities includes but is not limited to, the following factors: (a) changes in the financial condition of the security's underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) changes in the financial condition, credit rating and near-term prospects of the issuer, (d) the extent to which the fair value has been less than the amortized cost of the security and (e) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the security. The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, and loan-to-value ("LTV") ratios. In addition, for structured securities, the Company considers factors including, but not limited to, average F-9 cumulative collateral loss rates that vary by vintage year, commercial and residential property value declines that vary by property type and location and commercial real estate delinquency levels. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral such as changes in the projections of the underlying property value estimates. For equity securities where the decline in the fair value is deemed to be other-than-temporary, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the security's new cost basis. The Company asserts its intent and ability to retain those equity securities deemed to be temporarily impaired until the price recovers. Once identified, these securities are systematically restricted from trading unless approved by a committee of investment and accounting professionals ("Committee"). The Committee will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been reasonably foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer's financial condition, security price declines, a change in regulatory requirements or a major business combination or major disposition. The primary factors considered in evaluating whether an impairment exists for an equity security include, but are not limited to: (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. MORTGAGE LOAN VALUATION ALLOWANCES The Company's security monitoring process reviews mortgage loans on a quarterly basis to identify potential credit losses. Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. Criteria used to determine if an impairment exists include, but are not limited to: current and projected macroeconomic factors, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios ("DSCR"). In addition, the Company considers historic, current and projected delinquency rates and property values. These assumptions require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the borrower and/or underlying collateral such as changes in the projections of the underlying property value estimates. For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and the Company's share of either (a) the present value of the expected future cash flows discounted at the loan's effective interest rate, (b) the loan's observable market price or, most frequently, (c) the fair value of the collateral. A valuation allowance has been established for either individual loans or as a projected loss contingency for loans with an LTV ratio of 90% or greater and consideration of other credit quality factors, including DSCR. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the loans continue to perform under the original or restructured terms. Interest income ceases to accrue for loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement, or if a loan is more than 60 days past due. Loans may resume accrual status when it is determined that sufficient collateral exists to satisfy the full amount of the loan and interest payments, as well as when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. NET REALIZED CAPITAL GAINS AND LOSSES Net realized capital gains and losses from investment sales, after deducting the life and pension policyholders' share for certain products, are reported as a component of revenues and are determined on a specific identification basis, as well as changes in value associated with fixed maturities for which the fair value option was elected. Net realized capital gains and losses also result from fair value changes in derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, ineffectiveness on derivatives that qualify for hedge accounting treatment, and the change in value of derivatives in certain fair-value hedge relationships and their associated hedged asset. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company's policies previously discussed. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. F-10 NET INVESTMENT INCOME Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future repayments using the retrospective method; however, if these investments are impaired, any yield adjustments are made using the prospective method. Prepayment fees on fixed maturities and mortgage loans are recorded in net investment income when earned. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company's share of earnings, as well as investment fund accounting applied to a wholly-owned fund of funds. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security's yield, if necessary. The Company's non-income producing investments were not material for the years ended December 31, 2012, 2011 and 2010. Net investment income on equity securities, trading, includes dividend income and the changes in market value of the securities associated with the variable annuity products sold in Japan and the United Kingdom. The returns on these policyholder-directed investments inure to the benefit of the variable annuity policyholders but the underlying funds do not meet the criteria for separate account reporting. Accordingly, these assets are reflected in the Company's general account and the returns credited to the policyholders are reflected in interest credited, a component of benefits, losses and loss adjustment expenses. DERIVATIVE INSTRUMENTS OVERVIEW The Company utilizes a variety of derivative instruments, including swaps, caps, floors, forwards, futures and options through one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread and issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. Interest rate, volatility, dividend, credit default and index swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment is made by the purchaser of the contract at its inception and no principal payments are exchanged. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures' contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company's derivative transactions are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance departments. ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION OF DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments are recognized on the Consolidated Balance Sheets at fair value. For balance sheet presentation purposes, the Company offsets the fair value amounts, income accruals, and cash collateral, related to derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability ("fair value" hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability ("cash flow" hedge), (3) a hedge of a net investment F-11 in a foreign operation ("net investment" hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. Fair Value Hedges Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, including foreign-currency fair value hedges, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings with any differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense ("periodic derivative net coupon settlements") are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. Cash Flow Hedges Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the consolidated statements of operations in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. Net Investment in a Foreign Operation Hedges Changes in fair value of a derivative used as a hedge of a net investment in a foreign operation, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within AOCI. Cumulative changes in fair value recorded in AOCI are reclassified into earnings upon the sale or complete, or substantially complete, liquidation of the foreign entity. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. Other Investment and/or Risk Management Activities The Company's other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. HEDGE DOCUMENTATION AND EFFECTIVENESS TESTING To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses both at the hedge's inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the "Change in Variable Cash Flows Method", the "Change in Fair Value Method", the "Hypothetical Derivative Method", or the "Dollar Offset Method". DISCONTINUANCE OF HEDGE ACCOUNTING The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. F-12 In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item. EMBEDDED DERIVATIVES The Company purchases and issues financial instruments and products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. CREDIT RISK Credit risk is measured as the amount owed to the Company based on current market conditions and potential payment obligations between the Company and its counterparties. For each legal entity of the Company, credit exposures are generally quantified daily based on the prior business day's market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the contractual thresholds for every counterparty. The maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company's risk management team and reviewed by senior management. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company generally requires that derivative contracts, other than exchange traded contracts, certain forward contracts, and certain embedded and reinsurance derivatives, be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty and permits right of offset. CASH Cash represents cash on hand and demand deposits with banks or other financial institutions. REINSURANCE The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in reinsurance pools and associations. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). If the ceded transactions do not provide risk transfer, the Company accounts for these transactions as financing transactions. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting, investment, and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance agreements. Included in reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements, and variations thereof. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. The Company evaluates the financial condition of its reinsurers and concentrations of credit risk. Reinsurance is placed with reinsurers that meet strict financial criteria established by the Company. As of December 31, 2012, 2011 and 2010, there were no reinsurance-related concentrations of credit risk greater than 10% of the Company's stockholders' equity. As of December 31, 2012, 2011 and 2010, the Company's policy for the largest amount retained on any one life by the Life Insurance segment was $10. F-13 DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS Deferred policy acquisition costs represent costs that are directly related to the successful acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees. The Company's DAC asset, which includes the present value of future profits, is related to most universal life-type contracts (including variable annuities) and is amortized over the estimated life of the contracts acquired in proportion to the present value of estimated gross profits. EGPs are also used to amortize other assets and liabilities in the Company's Consolidated Balance Sheets such as, sales inducement assets and unearned revenue reserves. Components of EGPs are used to determine reserves for universal life type contracts (including variable annuities) with death or other insurance benefits such as guaranteed minimum death, guaranteed minimum income and universal life secondary guarantee benefits. These benefits are accounted for and collectively referred to as death and other insurance benefit reserves and are held in addition to the account value liability representing policyholder funds. For most contracts, the Company estimates gross profits over 20 years as EGPs emerging subsequent to that timeframe are immaterial. Products sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, based on future account value projections for variable annuity and variable universal life products. The projection of future account values requires the use of certain assumptions including: separate account returns; separate account fund mix; fees assessed against the contract holder's account balance; surrender and lapse rates; interest margin; mortality; and the extent and duration of hedging activities and hedging costs. The Company determines EGPs from a single deterministic reversion to mean separate account return projection which is an estimation technique commonly used by insurance entities to project future separate account returns. Through this estimation technique, the Company's DAC model is adjusted to reflect actual account values at the end of each quarter. Through a consideration of recent market returns, the Company will unlock, or adjust, projected returns over a future period so that the account value returns to the long-term expected rate of return, providing that those projected returns do not exceed certain caps or floors. This Unlock for future separate account returns is determined each quarter. In the third quarter of each year, the Company completes a comprehensive non-market related policyholder behavior assumption study and incorporates the results of those studies into its projection of future gross profits. Additionally, throughout the year, the Company evaluates various aspects of policyholder behavior and periodically revises its policyholder assumptions as credible emerging data indicates that changes are warranted. Upon completion of an assumption study or evaluation of credible new information, the Company will revise its assumptions to reflect its current best estimate. These assumption revisions will change the projected account values and the related EGPs in the DAC, SIA and URR amortization models, as well as, the death and other insurance benefit reserving models. All assumption changes that affect the estimate of future EGPs including the update of current account values, the use of the RTM estimation technique, and policyholder behavior assumptions are considered an Unlock in the period of revision. An Unlock adjusts the DAC, SIA, URR and death and other insurance benefit reserve balances in the Consolidated Balance Sheets with an offsetting benefit or charge in the Consolidated Statements of Operations in the period of the revision. An Unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable compared to previous estimates. An Unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. An Unlock revises EGPs to reflect the Company's current best estimate assumptions. The Company also tests the aggregate recoverability of DAC by comparing the existing DAC balance to the present value of future EGPs. GOODWILL Goodwill represents the excess of costs over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. During the fourth quarter of 2011, the Company changed the date of its annual impairment test for all reporting units to October 31st from January 1st. As a result, all reporting units performed an impairment test on October 31, 2011 in addition to the annual impairment test performed on January 1, 2011. The change was made to be consistent across all of the parent company's reporting units and to more closely align the impairment testing date with the long-range planning and forecasting process. The Company determined that this change in accounting principle is preferable under the circumstances and does not result in any delay, acceleration or avoidance of impairment. As it was impracticable to objectively determine projected cash flows and related valuation estimates as of each October 31 for periods prior to October 31, 2011 without applying information that has been learned since those periods, the Company prospectively applied the change in the annual goodwill impairment testing date from October 31, 2011. F-14 The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit's goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. Management's determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital, future business growth, earnings projections, assets under management for certain reporting units, and the weighted average cost of capital used for purposes of discounting. Decreases in the amount of economic capital allocated to a reporting unit, decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit's fair value to decrease. SEPARATE ACCOUNTS, DEATH BENEFITS AND OTHER INSURANCE BENEFIT FEATURES The Company records the variable portion of individual variable annuities, 401(k), institutional, 403(b)/457, private placement life and variable life insurance products within separate accounts. Separate account assets are reported at fair value and separate account liabilities are reported at amounts consistent with separate account assets. Investment income and gains and losses from those separate account assets accrue directly to the policyholder, who assumes the related investment risk, and are offset by the related liability changes reported in the same line item in the Consolidated Statements of Operations. The Company earns fees for investment management, certain administrative expenses, and mortality and expense risks assumed which are reported in fee income. Certain contracts classified as universal life-type include death and other insurance benefit features including GMDB offered with variable annuity contracts, or secondary guarantee benefits offered with universal life ("UL") insurance contracts. GMDBs have been written in various forms as described in this note. UL secondary guarantee benefits ensure that the policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. These death and other insurance benefit features require an additional liability be held above the account value liability representing the policyholders' funds. This liability is reported in reserve for future policy benefits in the Company's Consolidated Balance Sheets. Changes in the death and other insurance benefit reserves are recorded in benefits, losses and loss adjustment expenses in the Company's Consolidated Statements of Operations. Consistent with the Company's policy on DAC Unlock, the Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefits, losses and loss adjustment expense. For further information on the DAC Unlock, see Note 6 -- Deferred Policy Acquisition Costs and Present Value of Future Benefits. The Company reinsures the GMDBs associated with its in-force block of business. The Company also assumes, through reinsurance, minimum death, income, withdrawal and accumulation benefits offered by an affiliate. The death and other insurance benefit liability is determined by estimating the expected present value of the benefits in excess of the policyholder's expected account value in proportion to the present value of total expected assessments. The additional death and other insurance benefits and net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. RESERVE FOR FUTURE POLICY BENEFITS AND UNPAID LOSSES AND LOSS ADJUSTMENT Liabilities for the Company's group life and disability contracts as well its individual term life insurance policies include amounts for unpaid losses and future policy benefits. Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported. Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued. The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company's earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company's actual experience when appropriate. In particular, for the Company's group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company's experience, incorporating factors such as gender, elimination period and diagnosis. These reserves are computed such that they are expected to meet the Company's future policy obligations. Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company's policy obligations at their maturities or in the event of an insured's death. Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company's reserve levels and related future operations and, as such, provisions for adverse deviation are built into the long-tailed liability assumptions. F-15 Certain contracts classified as universal life-type may also include additional death or other insurance benefit features, such as guaranteed minimum death benefits offered with variable annuity contracts and no lapse guarantees offered with universal life insurance contracts. An additional liability is established for these benefits by estimating the expected present value of the benefits in excess of the projected account value in proportion to the present value of total expected assessments. Excess benefits are accrued as a liability as actual assessments are recorded. Determination of the expected value of excess benefits and assessments are based on a range of scenarios and assumptions including those related to market rates of return and volatility, contract surrender rates and mortality experience. Revisions to assumptions are made consistent with the Company's process for a DAC unlock. For further information, see MD&A, Critical Accounting Estimates, Life Deferred Policy Acquisition Costs and Present Value of Future Benefits. OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE The Company has classified its fixed and variable annuities, 401(k), certain governmental annuities, private placement life insurance ("PPLI"), variable universal life insurance, universal life insurance and interest sensitive whole life insurance as universal life-type contracts. The liability for universal life-type contracts is equal to the balance that accrues to the benefit of the policyholders as of the financial statement date (commonly referred to as the account value), including credited interest, amounts that have been assessed to compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on termination of the contract. The Company has classified its institutional and governmental products, without life contingencies, including funding agreements, certain structured settlements and guaranteed investment contracts, as investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through the financial statement date. Contract holder funds include funding agreements held by Variable Interest Entities issuing medium-term notes. FOREIGN CURRENCY TRANSLATION Foreign currency translation gains and losses are reflected in stockholders' equity as a component of accumulated other comprehensive income. The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. 2. BUSINESS DISPOSITIONS SALE OF RETIREMENT PLANS On January 1, 2013, HLI completed the sale of its Retirement Plans business to MassMutual for a ceding commission of $355. The sale was structured as a reinsurance transaction and is estimated to result in an after tax gain consisting of a reinsurance loss, offset by realized capital gains. Upon closing, in the first quarter of 2013 the Company reinsured $9.2 billion of policyholder liabilities and $26.3 billion of separate account liabilities under indemnity reinsurance arrangements. The Company also transferred invested assets with a carrying value of $9.3 billion, net of the ceding commission, to MassMutual and wrote off $100 of deferred acquisition costs, deferred income taxes, goodwill, and other assets associated with the disposition. These amounts are subject to change pending final determination of the net assets sold, transaction costs and other adjustments. SALE OF INDIVIDUAL LIFE On January 2, 2013 HLI completed the sale of its Individual Life insurance business to Prudential for consideration of $615, consisting primarily of a ceding commission, of which $590 is attributable to the Company. The sale was structured as a reinsurance transaction and is estimated to result in a loss on business disposition consisting of a reinsurance loss offset by realized capital gains. Upon closing, in the first quarter of 2013 the Company reinsured $8.3 billion of policyholder liabilities and $5.3 billion of separate account liabilities under indemnity reinsurance arrangements. The Company also transferred invested assets with a carrying value of $7.6 billion, exclusive of $1.4 billion assets supporting the modified coinsurance agreement, net of cash transferred in place of short-term investments, to Prudential and wrote off $1.8 billion of deferred acquisition costs, deferred income taxes, goodwill and other assets, and $1.9 billion of other liabilities associated with the disposition. These amounts are subject to change pending final determination of the net assets sold, transaction costs and other adjustments. The estimated reinsurance loss on business disposition of $61, pre tax, for the year ended December 31, 2012 includes a goodwill impairment charge of the same amount. This estimate reflects management's best estimate of the potential loss from this transaction. For further information regarding the Company's 2012 goodwill impairment testing, see Note 7 -- Goodwill of Notes to Consolidated Financial Statements. The estimated reinsurance loss on business disposition is subject to change pending final determination of the net assets sold, transaction costs and other adjustments. F-16 COMPOSITION OF INVESTED ASSETS TRANSFERRED The following table presents invested assets transferred by the Company in connection with the sale of the Retirement Plans and Individual Life businesses in January 2013. In December 2012, the Company recognized intent-to-sell impairments of $173 and gains on derivatives hedging of $108 associated with the sale of these assets.
AS OF DECEMBER 31, 2012 CARRYING VALUE -------------------------------------------------------------------------------- Asset-backed securities ("ABS") $289 Collateralized debt obligations ("CDOs") (1) 474 Commercial mortgage-backed securities ("CMBS") 940 Corporate 11,330 Foreign govt./govt. agencies 263 Municipal 899 Residential mortgage-backed securities ("RMBS") 705 U.S. Treasuries 115 --------- TOTAL FIXED MATURITIES, AFS, AT FAIR VALUE (AMORTIZED COST OF $13,596) (2) 15,015 --------- Equity securities, AFS, at fair value (cost of $27) (3) 28 Fixed maturities, at fair value using the FVO (4) 16 Mortgage loans (net of allowances for loan losses of $1) 1,288 Policy loans, at outstanding balance 542 --------- TOTAL INVESTED ASSETS TRANSFERRED $16,889 ---------
(1) The market value includes the fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in the net unrealized capital gains (losses). (2) Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively. (3) All equity securities transferred are included in level 2 of the fair value hierarchy. (4) All FVO securities transferred are included in level 3 of the fair value hierarchy. PURCHASE AGREEMENT WITH FORETHOUGHT FINANCIAL GROUP, INC. On December 31, 2012, The Hartford completed the sale of its U.S. individual annuity new business capabilities to Forethought Financial Group. Effective May 1, 2012, all new U.S. annuity policies sold by the Company are reinsured to Forethought Life Insurance Company. The Company will cease the sale of such annuity policies and the reinsurance agreement will terminate as to new business in the second quarter of 2013. The reinsurance agreement has no impact on in-force policies issued on or before April 27, 2012 and the impact of this transaction was not material to the Company's results of operations, financial position or liquidity. SALE OF WOODBURY FINANCIAL SERVICES, INC. On November 30, 2012, The Hartford completed the sale of Woodbury Financial Services, an indirect wholly-owned subsidiary, to AIG Advisor Group, a subsidiary of American International Group, Inc. The impact of the disposition of this business was not material to the Company's results of operations, financial position or liquidity. SERVICING AGREEMENT OF HARTFORD LIFE PRIVATE PLACEMENT LLC On July 13, 2012, The Hartford closed a sale transaction with Philadelphia Financial Group whereby Philadelphia Financial Group acquired certain assets used to administer the Company's private placement life insurance ("PPLI") businesses and will service the PPLI businesses. The Company retained certain corporate functions associated with this business as well as the mortality risk on the insurance policies. Upon closing, the Company recorded a deferred gain of $61 after-tax, which will be amortized over the estimated life of the underlying insurance policies. See Note 18 -- Discontinued Operations of Notes to Consolidated Financial Statements for the Mutual Funds reorganization and sale of certain subsidiaries that are being reported as discontinued operations. F-17 3. FAIR VALUE MEASUREMENTS The following section applies the fair value hierarchy and disclosure requirements for the Company's financial instruments that are carried at fair value. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad Levels (Level 1, 2 or 3). Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 1 securities include highly liquid U.S. Treasuries, money market funds and exchange traded equity securities, open-ended mutual funds reported in separate account assets and exchange-traded derivative securities. Level 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Most fixed maturities and preferred stocks, including those reported in separate account assets, are model priced by vendors using observable inputs and are classified within Level 2. Also included are limited partnerships and other alternative assets measured at fair value where an investment can be redeemed, or substantially redeemed, at the NAV at the measurement date or in the near-term, not to exceed 90 days. Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Level 3 securities include less liquid securities, guaranteed product embedded and reinsurance derivatives and other complex derivative securities, as well as limited partnerships and other alternative investments carried at fair value that cannot be redeemed in the near-term at the NAV. Because Level 3 fair values, by their nature, contain one or more significant unobservable inputs as there is little or no observable market for these assets and liabilities, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the Company's best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.
In many situations, inputs used to measure the fair value of an asset or liability position may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. Transfers of securities among the levels occur at the beginning of the reporting period. As of December 31, 2012, the amount of transfers from Level 1 to Level 2 was $1.5 billion, which represented previously on-the-run U.S. Treasury securities that are now off-the-run, and there were no transfers from Level 2 to Level 1. In most cases, both observable (e.g., changes in interest rates) and unobservable (e.g., changes in risk assumptions) inputs are used in the determination of fair values that the Company has classified within Level 3. Consequently, these values and the related gains and losses are based upon both observable and unobservable inputs. The Company's fixed maturities included in Level 3 are classified as such because these securities are primarily priced by independent brokers and/or within illiquid markets. The following tables present assets and (liabilities) carried at fair value by hierarchy level. These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments and information about the inputs used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following table presents assets and (liabilities) carried at fair value by hierarchy level. F-18
DECEMBER 31, 2012 QUOTED PRICES SIGNIFICANT SIGNIFICANT IN ACTIVE MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL ASSETS INPUTS INPUTS TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) --------------------------------------------------------------------------------------------------------------------------------- ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS Fixed maturities, AFS ABS $1,673 $ -- $1,435 $238 CDOs 2,160 -- 1,437 723 CMBS 3,912 -- 3,380 532 Corporate 30,979 -- 29,639 1,340 Foreign government/government agencies 1,460 -- 1,426 34 States, municipalities and political subdivisions ("Municipal") 1,998 -- 1,829 169 RMBS 4,671 -- 3,538 1,133 U.S. Treasuries 2,551 78 2,473 -- ----------- ----------- --------- --------- Total fixed maturities 49,404 78 45,157 4,169 Fixed maturities, FVO 1,010 6 805 199 Equity securities, trading 1,847 1,847 -- -- Equity securities, AFS 400 203 142 55 Derivative assets Credit derivatives (10) -- -- (10) Equity derivatives 30 -- -- 30 Foreign exchange derivatives 104 -- 104 -- Interest rate derivatives 108 -- 144 (36) U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments 36 -- (53) 89 U.S. macro hedge program 186 -- -- 186 International program hedging instruments 127 -- 142 (15) ----------- ----------- --------- --------- Total derivative assets (1) 581 -- 337 244 Short-term investments 2,354 242 2,112 -- Limited partnerships and other alternative investments (2) 414 -- 264 150 Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB 1,081 -- -- 1,081 Separate account assets (3) 138,497 97,976 39,938 583 ----------- ----------- --------- --------- TOTAL ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS $195,588 $100,352 $88,755 $6,481 ----------- ----------- --------- --------- PERCENTAGE OF LEVEL TO TOTAL 100% 52% 45% 3% ----------- ----------- --------- --------- LIABILITIES ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS Other policyholder funds and benefits payable Guaranteed living benefits $(3,119) $ -- $ -- $(3,119) Equity linked notes (8) -- -- (8) ----------- ----------- --------- --------- Total other policyholder funds and benefits payable (3,127) -- -- (3,127) ----------- ----------- --------- --------- Derivative liabilities Credit derivatives (6) -- (20) 14 Equity derivatives 15 -- -- 15 Foreign exchange derivatives (17) -- (17) -- Interest rate derivatives (359) -- (338) (21) U.S. GMWB hedging instruments 536 -- 106 430 U.S. macro hedge program 100 -- -- 100 International program hedging instruments (231) -- (171) (60) ----------- ----------- --------- --------- Total derivative liabilities (4) 38 -- (440) 478 Other liabilities -- -- -- -- Consumer notes (5) (2) -- -- (2) ----------- ----------- --------- --------- TOTAL LIABILITIES ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS $(3,091) $ -- $(440) $(2,651) ----------- ----------- --------- ---------
F-19
DECEMBER 31, 2011 QUOTED PRICES SIGNIFICANT SIGNIFICANT IN ACTIVE MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL ASSETS INPUTS INPUTS TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) --------------------------------------------------------------------------------------------------------------------------------- ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS Fixed maturities, AFS ABS $2,093 $ -- $1,776 $317 CDOs 1,798 -- 1,470 328 CMBS 4,269 -- 3,921 348 Corporate 30,229 -- 28,732 1,497 Foreign government/government agencies 1,224 -- 1,187 37 States, municipalities and political subdivisions ("Municipal") 1,557 -- 1,175 382 RMBS 3,823 -- 2,890 933 U.S. Treasuries 2,785 487 2,298 -- ----------- ----------- --------- --------- Total fixed maturities 47,778 487 43,449 3,842 Fixed maturities, FVO 1,317 -- 833 484 Equity securities, trading 1,967 1,967 -- -- Equity securities, AFS 398 227 115 56 Derivative assets Credit derivatives (27) -- (6) (21) Equity derivatives 31 -- -- 31 Foreign exchange derivatives 505 -- 505 -- Interest rate derivatives 78 -- 38 40 U.S. GMWB hedging instruments 494 -- 11 483 U.S. macro hedge program 357 -- -- 357 International program hedging instruments 533 -- 567 (34) ----------- ----------- --------- --------- Total derivative assets (1) 1,971 -- 1,115 856 Short-term investments 3,882 520 3,362 -- Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB 3,073 -- -- 3,073 Separate account assets (3) 139,421 101,633 36,757 1,031 ----------- ----------- --------- --------- TOTAL ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS $199,807 $104,834 $85,631 $9,342 ----------- ----------- --------- --------- LIABILITIES ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS Other policyholder funds and benefits payable Guaranteed living benefits $(5,776) $ -- $ -- $(5,776) Equity linked notes (9) -- -- (9) ----------- ----------- --------- --------- Total other policyholder funds and benefits payable (5,785) -- -- (5,785) Derivative liabilities Credit derivatives (493) -- (25) (468) Equity derivatives 5 -- -- 5 Foreign exchange derivatives 140 -- 140 -- Interest rate derivatives (315) -- (184) (131) U.S. GMWB hedging instruments 400 -- -- 400 International program hedging instruments 9 -- 10 (1) ----------- ----------- --------- --------- Total derivative liabilities (4) (254) -- (59) (195) Other liabilities (9) -- -- (9) Consumer notes (5) (4) -- -- (4) ----------- ----------- --------- --------- TOTAL LIABILITIES ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS $(6,052) $ -- $(59) $(5,993) ----------- ----------- --------- ---------
(1) Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to pledge collateral to the Company. At December 31, 2012 and December 31, 2011, $92 million and $1.4 billion, respectively, was the amount of cash collateral liability that was netted against the derivative asset value on the Consolidated Balance Sheet, and is excluded from the table above. For further information on derivative liabilities, see below in this Note 3. F-20 (2) Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at value. (3) As of December 31, 2012 and December 31, 2011, excludes approximately $3.1 billion and $4.0 billion, respectively, of investment sales receivable that are not subject to fair value accounting. (4) Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll forward table included below in this Note, the derivative asset and liability are referred to as "freestanding derivatives" and are presented on a net basis. (5) Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes. DETERMINATION OF FAIR VALUES The valuation methodologies used to determine the fair values of assets and liabilities under the "exit price" notion, reflect market-participant objectives and are based on the application of the fair value hierarchy that prioritizes relevant observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices where available and where prices represent a reasonable estimate of fair value. The Company also determines fair value based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company's default spreads, liquidity and, where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments listed in the above tables. The fair value process is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The Valuation Committee is co-chaired by the Heads of Investment Operations and Accounting and has representation from various investment sector professionals, accounting, operations, legal, compliance and risk management. The purpose of the committee is to oversee the pricing policy and procedures by ensuring objective and reliable valuation practices and pricing of financial instruments, as well as addressing fair valuation issues and approving changes to valuation methodologies and pricing sources. There is also a Fair Value Working Group ("Working Group") which includes the Heads of Investment Operations and Accounting, as well as other investment, operations, accounting and risk management professionals that meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes described in more detail in the following paragraphs. AFS, FIXED MATURITIES, FVO, EQUITY SECURITIES, TRADING, AND SHORT-TERM INVESTMENTS The fair value of AFS securities, fixed maturities, FVO, equity securities, trading, and short-term investments in an active and orderly market (e.g. not distressed or forced liquidation) are determined by management after considering one of three primary sources of information: third-party pricing services, independent broker quotations or pricing matrices. Security pricing is applied using a "waterfall" approach whereby publicly available prices are first sought from third-party pricing services, the remaining unpriced securities are submitted to independent brokers for prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these pricing methods include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flows, prepayments speeds and default rates. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third-party pricing services will normally derive the security prices from recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the third-party pricing services and independent brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of ABS and RMBS are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. Actual prepayment experience may vary from these estimates. Prices from third-party pricing services are often unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. Additionally, the majority of these independent broker quotations are non-binding. A pricing matrix is used to price private placement securities for which the Company is unable to obtain a price from a third-party pricing service by discounting the expected future cash flows from the security by a developed market discount rate utilizing current credit spreads. Credit spreads are developed each month using market based data for public securities adjusted for credit spread differentials between public and private securities which are obtained from a survey of multiple private placement brokers. The appropriate credit spreads determined through this survey approach are based upon the issuer's financial strength and term to maturity, utilizing an independent public security index and trade information and adjusting for the non-public nature of the securities. F-21 The Working Group performs an ongoing analysis of the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. As a part of this analysis, the Company considers trading volume, new issuance activity and other factors to determine whether the market activity is significantly different than normal activity in an active market, and if so, whether transactions may not be orderly considering the weight of available evidence. If the available evidence indicates that pricing is based upon transactions that are stale or not orderly, the Company places little, if any, weight on the transaction price and will estimate fair value utilizing an internal pricing model. In addition, the Company ensures that prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models developed based on spreads, and when available, market indices. As a result of this analysis, if the Company determines that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly and approved by the Valuation Committee. The Company's internal pricing model utilizes the Company's best estimate of expected future cash flows discounted at a rate of return that a market participant would require. The significant inputs to the model include, but are not limited to, current market inputs, such as credit loss assumptions, estimated prepayment speeds and market risk premiums. The Company conducts other specific activities to monitor controls around pricing. Daily analyses identify price changes over 3-5%, sale trade prices that differ over 3% from the prior day's price and purchase trade prices that differ more than 3% from the current day's price. Weekly analyses identify prices that differ more than 5% from published bond prices of a corporate bond index. Monthly analyses identify price changes over 3%, prices that haven't changed, missing prices and second source validation on most sectors. Analyses are conducted by a dedicated pricing unit that follows up with trading and investment sector professionals and challenges prices with vendors when the estimated assumptions used differ from what the Company feels a market participant would use. Any changes from the identified pricing source are verified by further confirmation of assumptions used. Examples of other procedures performed include, but are not limited to, initial and on-going review of third-party pricing services' methodologies, review of pricing statistics and trends and back testing recent trades. The Company has analyzed the third-party pricing services' valuation methodologies and related inputs, and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Most prices provided by third-party pricing services are classified into Level 2 because the inputs used in pricing the securities are market observable. Due to a general lack of transparency in the process that brokers use to develop prices, most valuations that are based on brokers' prices are classified as Level 3. Some valuations may be classified as Level 2 if the price can be corroborated with observable market data. DERIVATIVE INSTRUMENTS, INCLUDING EMBEDDED DERIVATIVES WITHIN INVESTMENTS Derivative instruments are fair valued using pricing valuation models; that utilize independent market data inputs, quoted market prices for exchange-traded derivatives, or independent broker quotations. Excluding embedded and reinsurance related derivatives, as of December 31, 2012 and December 31, 2011, 98% and 98%, respectively, of derivatives, based upon notional values, were priced by valuation models or quoted market prices. The remaining derivatives were priced by broker quotations. The Company performs a monthly analysis on derivative valuations which includes both quantitative and qualitative analysis. Examples of procedures performed include, but are not limited to, review of pricing statistics and trends, back testing recent trades, analyzing the impacts of changes in the market environment, and review of changes in market value for each derivative including those derivatives priced by brokers. The Company performs various controls on derivative valuations which includes both quantitative and qualitative analysis. Analyses are conducted by a dedicated derivative pricing team that works directly with investment sector professionals to analyze impacts of changes in the market environment and investigate variances. There is a monthly analysis to identify market value changes greater than predefined thresholds, stale prices, missing prices and zero prices. Also on a monthly basis, a second source validation, typically to broker quotations, is performed for certain of the more complex derivatives, as well as for all new deals during the month. A model validation review is performed on any new models, which typically includes detailed documentation and validation to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. There is a monthly control to review changes in pricing sources to ensure that new models are not moved to production until formally approved. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated assets and liabilities. Therefore the realized and unrealized gains and losses on derivatives reported in Level 3 may not reflect the offsetting impact of the realized and unrealized gains and losses of the associated assets and liabilities. LIMITED PARTNERSHIPS AND OTHER ALTERNATIVE INVESTMENTS Limited partnerships and other alternative investments include hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value. These funds are fair valued using the net asset value per F-22 share or equivalent ("NAV"), as a practical expedient, calculated on a monthly basis and is the amount at which a unit or shareholder may redeem their investment, if redemption is allowed. Certain impediments to redemption include, but are not limited to the following: 1) redemption notice may be required and the notice period may be as long as 90 days, 2) redemption may be restricted (e.g. only be allowed on a quarter-end), 3) a holding period referred to as a lock-up may be imposed whereby an investor must hold their investment for a specified period of time before they can make a notice for redemption, 4) gating provisions may limit all redemptions in a given period to a percentage of the entities' equity interests, or may only allow an investor to redeem a portion of their investment at one time and 5) early redemption penalties may be imposed that are expressed as a percentage of the amount redeemed. The Company will assess impediments to redemption and current market conditions that will restrict the redemption at the end of the notice period. Any funds that are subject to significant liquidity restrictions are reported in Level 3; all others will be classified as Level 2. VALUATION TECHNIQUES AND INPUTS FOR INVESTMENTS Generally, the Company determines the estimated fair value of its AFS securities, fixed maturities, FVO, equity securities, trading, and short-term investments using the market approach. The income approach is used for securities priced using a pricing matrix, as well as for derivative instruments. Certain limited partnerships and other alternative investments are measured at fair value using a NAV as a practical expedient. For Level 1 investments, which are comprised of on-the-run U.S. Treasuries, exchange-traded equity securities, short-term investments, exchange traded futures, and option and swap contracts, valuations are based on observable inputs that reflect quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date. For most of the Company's debt securities, the following inputs are typically used in the Company's pricing methods: reported trades, benchmark yields, bids and/or estimated cash flows. For securities except U.S. Treasuries, inputs also include issuer spreads, which may consider credit default swaps. Derivative instruments are valued using mid-market inputs that are predominantly observable in the market. A description of additional inputs used in the Company's Level 2 and Level 3 measurements is listed below: Level 2 The fair values of most of the Company's Level 2 investments are determined by management after considering prices received from third party pricing services. These investments include most fixed maturities and preferred stocks, including those reported in separate account assets, as well as certain limited partnerships and other alternative investments. - ABS, CDOS, CMBS AND RMBS -- Primary inputs also include monthly payment information, collateral performance, which varies by vintage year and includes delinquency rates, collateral valuation loss severity rates, collateral refinancing assumptions, credit default swap indices and, for ABS and RMBS, estimated prepayment rates. - CORPORATES, INCLUDING INVESTMENT GRADE PRIVATE PLACEMENTS -- Primary inputs also include observations of credit default swap curves related to the issuer. - FOREIGN GOVERNMENT/GOVERNMENT AGENCIES -- Primary inputs also include observations of credit default swap curves related to the issuer and political events in emerging markets. - MUNICIPALS -- Primary inputs also include Municipal Securities Rulemaking Board reported trades and material event notices, and issuer financial statements. - SHORT-TERM INVESTMENTS -- Primary inputs also include material event notices and new issue money market rates. - EQUITY SECURITIES, TRADING -- Consist of investments in mutual funds. Primary inputs include net asset values obtained from third party pricing services. - CREDIT DERIVATIVES -- Primary inputs include the swap yield curve and credit default swap curves. - FOREIGN EXCHANGE DERIVATIVES -- Primary inputs include the swap yield curve, currency spot and forward rates, and cross currency basis curves. - INTEREST RATE DERIVATIVES -- Primary input is the swap yield curve. - LIMITED PARTNERSHIPS AND OTHER ALTERNATIVE INVESTMENTS -- Primary inputs include a NAV for investment companies with no redemption restrictions as reported on their U.S. GAAP financial statements. F-23 Level 3 Most of the Company's securities classified as Level 3 include less liquid securities such as lower quality ABS, CMBS, commercial real estate ("CRE") CDOs and RMBS primarily backed by below- prime loans. Securities included in level 3 are primarily valued based on broker prices or broker spreads, without adjustments. Primary inputs for non-broker priced investments, including structured securities, are consistent with the typical inputs used in Level 2 measurements noted above, but are Level 3 due to their less liquid markets. Additionally, certain long-dated securities are priced based on third party pricing services, including municipal securities, foreign government/government agencies, bank loans and below investment grade private placement securities. Primary inputs for these long-dated securities are consistent with the typical inputs used in Level 1 and Level 2 measurements noted above, but include benchmark interest rate or credit spread assumptions that are not observable in the marketplace. Level 3 investments also include certain limited partnerships and other alternative investments measured at fair value where the Company does not have the ability to redeem the investment in the near-term at the NAV. Also included in Level 3 are certain derivative instruments that either have significant unobservable inputs or are valued based on broker quotations. Significant inputs for these derivative contracts primarily include the typical inputs used in the Level 1 and Level 2 measurements noted above, but also may include the following: - CREDIT DERIVATIVES -- Significant unobservable inputs may include credit correlation and swap yield curve and credit curve extrapolation beyond observable limits. - EQUITY DERIVATIVES -- Significant unobservable inputs may include equity volatility. - INTEREST RATE CONTRACTS -- Significant unobservable inputs may include swap yield curve extrapolation beyond observable limits and interest rate volatility. SIGNIFICANT UNOBSERVABLE INPUTS FOR LEVEL 3 ASSETS MEASURED AT FAIR VALUES The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value. As of December 31, 2012
PREDOMINANT FAIR VALUATION UNOBSERVABLE SECURITIES VALUE METHOD INPUT --------------------------------------------------------------------------------------- ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS CMBS $532 Discounted Spread (encompasses) cash flows prepayment, default risk and lossseverity Corporate (3) 888 Discounted Spread cash flows Municipal 169 Discounted Spread cash flows RMBS 1,133 Discounted Spread cash flows Constant prepayment rate Constant default rate Loss severity PREDOMINANT WEIGHTED INCREASE IN INPUT SECURITIES MINIMUM MAXIMUM AVERAGE (1) ON FAIR VALUE (2) ------------------ --------------------------------------------------------------------------------------------------------- ASSETS ACCOUNTED FOR AT FAIR VALUE ON A RECURRING BASIS CMBS 320bps 3,615bps 1,013bps Decrease Corporate (3) 145bps 900bps 333bps Decrease Municipal 227bps 344bps 254bps Decrease RMBS 54bps 1,689bps 379bps Decrease 0.0% 12.0% 2.0% Decrease (4) 1.0% 24.0% 8.0% Decrease --% 100.0% 80.0% Decrease
(1) The weighted average is determined based on the fair value of the securities. (2) Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above. (3) Level 3 corporate securities excludes those for which the Company bases fair value on broker quotations as discussed below. (4) Decrease for above market rate coupons and increase for below market rate coupons. F-24 As of December 31, 2012
UNOBSERVABLE INPUTS FAIR PREDOMINANT VALUATION SIGNIFICANT FREESTANDING DERIVATIVES VALUE METHOD UNOBSERVABLE INPUT --------------------------------------------------------------------------------------------- Equity derivatives Equity options $45 Option model Equity volatility Interest rate derivative Interest rate swaps (57) Discounted Swap curve beyond 30 cash flows years U.S. GMWB hedging instruments Equity options 281 Option model Equity volatility Customized swaps 238 Discounted Equity volatility cash flows U.S. macro hedge program Equity options 286 Option model Equity volatility International hedging program Equity options 44 Option model Equity volatility Long interest rate (119) Option model Interest rate volatility UNOBSERVABLE INPUTS IMPACT OF INCREASE IN INPUT FREESTANDING DERIVATIVES MINIMUM MAXIMUM ON FAIR VALUE (1) ------------------------ ------------------------------------------------------------------------------ Equity derivatives Equity options 13% 24% Increase Interest rate derivative Interest rate swaps 2.8% 2.8% Increase U.S. GMWB hedging instruments Equity options 10% 31% Increase Customized swaps 10% 50% Increase U.S. macro hedge program Equity options 24% 43% Increase International hedging program Equity options 22% 33% Increase Long interest rate --% 1% Increase
(1) Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. Securities and derivatives for which the Company bases fair value on broker quotations predominately include ABS, CDOs, corporate, fixed maturities, FVO and certain credit derivatives. Due to the lack of transparency in the process brokers use to develop prices for these investments, the Company does not have access to the significant unobservable inputs brokers use to price these securities and derivatives. The Company believes however, the types of inputs brokers may use would likely be similar to those used to price securities and derivatives for which inputs are available to the Company, and therefore may include, but not be limited to, loss severity rates, constant prepayment rates, constant default rates and credit spreads. Therefore, similar to non broker priced securities and derivatives, generally, increases in these inputs would cause fair values to decrease. For the year ended, December 31, 2012, no significant adjustments were made by the Company to broker prices received. Excluded from the tables above are limited partnerships and other alternative investments which total $150 of Level 3 assets measured at fair value. The predominant valuation method uses a NAV calculated on a monthly basis and represents funds where the Company does not have the ability to redeem the investment in the near-term at that NAV, including an assessment of the investee's liquidity. PRODUCT DERIVATIVES The Company currently offers and subsequently reinsures certain variable annuity products with GMWB riders in the U.S., and formerly offered GMWBs in the U.K. The Company has also assumed, through reinsurance from Hartford Life Insurance KK ("HLIKK"), a Japanese affiliate of the Company, guaranteed minimum income benefit ('GMIB"), GMWB and guaranteed minimum accumulation benefit ("GMAB") riders. The Company has subsequently ceded certain GMWB rider liabilities and the assumed reinsurance from HLIKK to an affiliated captive reinsurer. The GMWB provides the policyholder with a guaranteed remaining balance ("GRB") if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. Certain contract provisions can increase the GRB at contract holder election or after the passage of time. The GMWB represents an embedded derivative in the variable annuity contract. The GMWB represents an embedded derivative in the variable annuity contract. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. The Company's GMWB liability is carried at fair value and reported in other policyholder funds. The notional value of the embedded derivative is the GRB. F-25 In valuing the embedded derivative, the Company attributes to the derivative a portion of the fees collected from the contract holder equal to the present value of future GMWB claims (the "Attributed Fees"). All changes in the fair value of the embedded derivative are recorded in net realized capital gains and losses. The excess of fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract reported in fee income. The reinsurance assumed on the HLIKK GMIB, GMWB, and GMAB and ceded to an affiliated captive reinsurer meets the characteristics of a free-standing derivative instrument. As a result, the derivative asset or liability is recorded at fair value with changes in the fair value reported in net realized capital gains and losses. LIVING BENEFITS REQUIRED TO BE FAIR VALUED (IN OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE) Living benefits required to be fair valued include U.S guaranteed withdrawal benefits, international guaranteed withdrawal benefits and international other guaranteed living benefits. Fair values for GMWB and GMAB contracts are calculated using the income approach based upon internally developed models because active, observable markets do not exist for those items. The fair value of the Company's guaranteed benefit liabilities, classified as embedded derivatives, and the related reinsurance and customized freestanding derivatives is calculated as an aggregation of the following components: Best Estimate Claims Costs calculated based on actuarial and capital market assumptions related to projected cash flows over the lives of the contracts; Credit Standing Adjustment; and Margins representing an amount that market participants would require for the risk that the Company's assumptions about policyholder behavior could differ from actual experience. The resulting aggregation is reconciled or calibrated, if necessary, to market information that is, or may be, available to the Company, but may not be observable by other market participants, including reinsurance discussions and transactions. The Company believes the aggregation of these components, as necessary and as reconciled or calibrated to the market information available to the Company, results in an amount that the Company would be required to transfer or receive, for an asset, to or from market participants in an active liquid market, if one existed, for those market participants to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. The fair value is likely to materially diverge from the ultimate settlement of the liability as the Company believes settlement will be based on our best estimate assumptions rather than those best estimate assumptions plus risk margins. In the absence of any transfer of the guaranteed benefit liability to a third party, the release of risk margins is likely to be reflected as realized gains in future periods' net income. Each component described below is unobservable in the marketplace and requires subjectivity by the Company in determining their value. Oversight of the Company's valuation policies and processes for product and U.S. GMWB reinsurance derivatives is performed by a multidisciplinary group comprised of finance, actuarial and risk management professionals. This multidisciplinary group reviews and approves changes and enhancements to the Company's valuation model as well as associated controls. BEST ESTIMATE CLAIMS COSTS The Best Estimate Claims Costs is calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior such as lapses, fund selection, resets and withdrawal utilization (for the customized derivatives, policyholder behavior is prescribed in the derivative contract). Because of the dynamic and complex nature of these cash flows, best estimate assumptions and a Monte Carlo stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates and a blend of observable implied index volatility levels were used. Estimating these cash flows involves numerous estimates and subjective judgments including those regarding expected markets rates of return, market volatility, correlations of market index returns to funds, fund performance, discount rates and various actuarial assumptions for policyholder behavior which emerge over time. At each valuation date, the Company assumes expected returns based on: - risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates; - market implied volatility assumptions for each underlying index based primarily on a blend of observed market "implied volatility" data; - correlations of historical returns across underlying well known market indices based on actual observed returns over the ten years preceding the valuation date; and - three years of history for fund regression. As many guaranteed benefit obligations are relatively new in the marketplace, actual policyholder behavior experience is limited. As a result, estimates of future policyholder behavior are subjective and based on analogous internal and external data. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model. On a daily basis, the Company updates capital market assumptions used in the GMWB liability model such as interest rates, equity indices and the blend of implied equity index volatilities. The Company monitors various aspects of policyholder F-26 behavior and may modify certain of its assumptions, including living benefit lapses and withdrawal rates, if credible emerging data indicates that changes are warranted. At a minimum, all policyholder behavior assumptions are reviewed and updated, as appropriate, in conjunction with the completion of the Company's comprehensive study to refine its estimate of future gross profits during the third quarter of each year. CREDIT STANDING ADJUSTMENT This assumption makes an adjustment that market participants would make, in determining fair value, to reflect the risk that guaranteed benefit obligations or the GMWB reinsurance recoverables will not be fulfilled ("nonperformance risk"). The Company incorporates a blend of observable Company and reinsurer credit default spreads from capital markets, adjusted for market recoverability. Prior to the first quarter of 2009, the Company calculated the Credit Standing Adjustment by using default rates published by rating agencies, adjusted for market recoverability. For the years ended December 31, 2012, 2011 and 2010, the credit standing adjustment assumption, net of reinsurance and exclusive of the impact of the credit standing adjustment on other market sensitivities, resulted in pre-tax realized gains (losses) of $499, $(156) and $(8), respectively. MARGINS The behavior risk margin adds a margin that market participants would require for the risk that the Company's assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions. Assumption updates, including policyholder behavior assumptions, affected best estimates and margins for total pre-tax realized gains of $76, $13 and $45 for the years ended December 31, 2012, 2011 and 2010. As of December 31, 2012 and December 31, 2011 the behavior risk margin was $77 and $103, respectively. In addition to the non-market-based updates described above, the Company recognized non-market-based updates driven by the relative outperformance (underperformance) of the underlying actively managed funds as compared to their respective indices resulting in before-tax realized gains/(losses) of approximately $29, $(18) and $31 for the years ended December 31, 2012, 2011 and 2010, respectively. Significant unobservable inputs used in the fair value measurement of living benefits required to be fair valued and the U.S. GMWB reinsurance derivative are withdrawal utilization and withdrawal rates, lapse rates, reset elections and equity volatility. The following table provides quantitative information about the significant unobservable inputs and is applicable to all of the Living Benefits Required to be Fair Valued and the reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB and GMAB. Significant increases in any of the significant unobservable inputs, in isolation, will generally have an increase or decrease correlation with the fair value measurement, as shown in the table.
IMPACT OF INCREASE IN INPUT UNOBSERVABLE INPUTS ON FAIR VALUE SIGNIFICANT UNOBSERVABLE INPUT MINIMUM MAXIMUM MEASUREMENT (1) ------------------------------------------------------------------------------------------------------------------- Withdrawal Utilization (2) 20% 100% Increase Withdrawal Rates (2) 0% 8% Increase Annuitization utilization (3) 0% 100% Increase Lapse Rates (4) 0% 75% Decrease Reset Elections (5) 20% 75% Increase Equity Volatility (6) 10% 50% Increase ----- ----- ---------
(1) Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. (2) Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn. (3) For reinsurance associated with Japan GMIB, range represents assumed cumulative percentages of policyholders annuitizing variable annuity contracts. (4) Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business. (5) Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base. (6) Range represents implied market volatilities for equity indices based on multiple pricing sources. F-27 Generally a change in withdrawal utilization assumptions would be accompanied by a directionally opposite change in lapse rate assumptions, as the behavior of policyholders that utilize GMWB or GMAB riders is typically different from policyholders that do not utilize these riders. SEPARATE ACCOUNT ASSETS Separate account assets are primarily invested in mutual funds. Other separate account assets include fixed maturities, limited partnerships, equity securities, short-term investments and derivatives that are valued in the same manner, and using the same pricing sources and inputs, as those investments held by the Company. Separate account assets classified as Level 3 primarily include limited partnerships in which fair value represents the separate account's share of the fair value of the equity in the investment ("net asset value") and are classified in level 3 based on the Company's ability to redeem its investment. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) The tables below provide a fair value roll forward for the years ended December 31, 2012 and 2011, for the financial instruments classified as Level 3.
FOREIGN FIXEDTMATURITIES, AFS ABS CDOS CMBS CORPORATE AGENCIES -------------------------------------------------------------------------------------------------------------------------------- ASSETS Fair value as of January 1, 2012 $317 $328 $348 $1,497 $37 Total realized/unrealized gains (losses) Included in net income (1),(2) (2) (19) (41) 2 -- Included in OCI (3) 45 134 89 (38) 1 Purchases 18 -- 18 169 9 Settlements (58) (36) (111) (98) (4) Sales (34) (1) (109) (74) (11) Transfers into Level 3 (4) 12 317 422 538 2 Transfers out of Level 3 (4) (60) -- (84) (656) -- ------ ------ ------ -------- ------ FAIR VALUE AS OF DECEMBER 31, 2012 $238 $723 $532 $1,340 $34 ------ ------ ------ -------- ------ Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $(1) $(11) $(17) $(7) $ -- ------ ------ ------ -------- ------ TOTAL FIXED FIXED FIXEDTMATURITIES, AFS MUNICIPAL RMBS AFS FVO -------------------------------------- ----------------------------------------------------------------------------- ASSETS Fair value as of January 1, 2012 $382 $933 $3,842 $484 Total realized/unrealized gains (losses) Included in net income (1),(2) (5) (68) (133) 106 Included in OCI (3) 34 298 563 -- Purchases 174 289 677 1 Settlements -- (125) (432) (1) Sales (91) (173) (493) (391) Transfers into Level 3 (4) -- 2 1,293 -- Transfers out of Level 3 (4) (325) (23) (1,148) -- ------- -------- -------- -------- FAIR VALUE AS OF DECEMBER 31, 2012 $169 $1,133 $4,169 $199 ------- -------- -------- -------- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $(5) $(11) $(52) $(7) ------- -------- -------- --------
F-28
FREESTANDING DERIVATIVES (5) EQUITY SECURITIES, INTEREST ASSETS (LIABILITIES) AFS CREDIT EQUITY RATE -------------------------------------------------------------------------------------------------------------------- Fair value as of January 1, 2012 $56 $(489) $36 $(91) Total realized/unrealized gains (losses) Included in net income (1),(2) 3 155 (32) 2 Included in OCI (3) (3) -- -- -- Purchases 11 -- 57 1 Settlements -- 338 (16) -- Sales (12) -- -- -- Transfers out of Level 3 (4) -- -- -- 31 ------- ------- ----- ------- FAIR VALUE AS OF DECEMBER 31, 2012 $55 $4 $45 $(57) ------- ------- ----- ------- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $2 $126 $(8) $(1) ------- ------- ----- ------- FREESTANDING DERIVATIVES (5) U.S. MACRO INTL. TOTAL FREE- GMWB HEDGE PROGRAM STANDING ASSETS (LIABILITIES) HEDGING PROGRAM HEDGING DERIVATIVES (5) -------------------------------------- --------------------------------------------------------------------------------- Fair value as of January 1, 2012 $883 $357 $(35) $661 Total realized/unrealized gains (losses) Included in net income (1),(2) (431) (323) (83) (712) Included in OCI (3) -- -- -- -- Purchases 56 252 (60) 306 Settlements (12) -- 95 405 Sales -- -- -- -- Transfers out of Level 3 (4) 23 -- 8 62 ------- ------- ------ ------- FAIR VALUE AS OF DECEMBER 31, 2012 $519 $286 $(75) $722 ------- ------- ------ ------- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $(425) $(322) $(85) $(715) ------- ------- ------ -------
LIMITED PARTNERSHIPS AND REINSURANCE RECOVERABLE FOR OTHER ALTERNATIVE U.S. GMWB AND JAPAN SEPARATE ASSETS INVESTMENTS GMWB, GMIB, AND GMAB (6) ACCOUNTS ---------------------------------------------------------------------------------------------------- Fair value as of January 1, 2012 $ -- $3,073 $1,031 Total realized/unrealized gains (losses) Included in net income (1),(2) (11) (2,142) 37 Included in OCI (3) -- (231) -- Purchases 26 -- 252 Settlements -- 381 (1) Sales -- -- (476) Transfers into Level 3 (4) 135 -- 443 Transfers out of Level 3 (4) -- -- (703) ------ ------ ------- FAIR VALUE AS OF DECEMBER 31, 2012 $150 $1,081 $583 ------ ------ ------- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $(11) $(2,142) $28 ------ ------ -------
TOTAL OTHER OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLEOLDER GUARANTEED FUNDS LIVING EQUITY LINKED AND BENEFITS LIABILITIES BENEFITS (7) NOTES PAYABLE ------------------------------------------------------------------------------------------- Fair value as of January 1, 2012 $(5,776) $(9) $(5,785) Total realized/unrealized gains (losses) Included in net income (1),(2) 2,656 1 2,657 Included in OCI (3) 264 -- 264 Settlements (8) (263) -- (263) ------ --- ------ FAIR VALUE AS OF DECEMBER 31, 2012 $(3,119) $(8) $(3,127) ------ --- ------ Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $2,656 $1 $2,657 ------ --- ------ OTHER CONSUMER LIABILITIES LIABILITIES NOTES ------------------------------ ----------------------------- Fair value as of January 1, 2012 $(9) $(4) Total realized/unrealized gains (losses) Included in net income (1),(2) (34) 2 Included in OCI (3) -- -- Settlements (8) 43 -- ---- --- FAIR VALUE AS OF DECEMBER 31, 2012 $ -- $(2) ---- --- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 (2),(7) $ -- $2 ---- ---
F-29 The tables below provide a fair value roll forward for the year ended December 31, 2011 for the financial instruments classified as Level 3.
FIXED MATURITIES,GAFS. ASSETS ABS CDOS CMBS CORPORATE ----------------------------------------------------------------------------------------------- Fair value as of January 1, 2011 $408 $1,869 $492 $1,486 Total realized/unrealized gains (losses) Included in net income (1),(2) (26) (30) 13 (27) Included in OCI (3) 18 112 41 (14) Purchases 35 -- 18 83 Settlements (32) (129) (72) (92) Sales (9) (54) (225) (122) Transfers into Level 3 (4) 79 30 131 498 Transfers out of Level 3 (4) (156) (1,470) (50) (315) ----- ------- ----- ------ FAIR VALUE AS OF DECEMBER 31, 2011 $317 $328 $348 $1,497 ----- ------- ----- ------ Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $(14) $(29) $(5) $(11) ----- ------- ----- ------ FOREIGN FIXED MATURITIES,GAFS. ASSETS AGENCIES MUNICIPAL RMBS ----------------------------- ------------------------------------------------------ Fair value as of January 1, 2011 $40 $258 $1,105 Total realized/unrealized gains (losses) Included in net income (1),(2) -- -- (21) Included in OCI (3) -- 46 (3) Purchases -- 87 25 Settlements (3) -- (111) Sales -- -- (16) Transfers into Level 3 (4) 29 -- 69 Transfers out of Level 3 (4) (29) (9) (115) ---- ----- ------ FAIR VALUE AS OF DECEMBER 31, 2011 $37 $382 $933 ---- ----- ------ Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $ -- $ -- $(15) ---- ----- ------ TOTAL FIXED FIXED FIXED MATURITIES,GAFS. MATURITIES, ASSETS AFS FVO ----------------------------- --------------------------------------- Fair value as of January 1, 2011 $5,658 $511 Total realized/unrealized gains (losses) Included in net income (1),(2) (91) 23 Included in OCI (3) 200 -- Purchases 248 -- Settlements (439) (2) Sales (426) (43) Transfers into Level 3 (4) 836 -- Transfers out of Level 3 (4) (2,144) (5) ------- ----- FAIR VALUE AS OF DECEMBER 31, 2011 $3,842 $484 ------- ----- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $(74) $19 ------- -----
FREESTANDING DERIVATIVES (5) EQUITY SECURITIES, INTEREST ASSETS (LIABILITIES) AFS CREDIT EQUITY RATE -------------------------------------------------------------------------------------------------------- Fair value as of January 1, 2011 $47 $(344) $4 $(53) Total realized/unrealized gains (losses) Included in net income (1),(2) (11) (144) (8) 9 Included in OCI (3) (3) -- -- -- Purchases 31 20 40 -- Settlements -- (21) -- (47) Sales (4) -- -- -- Transfers out of Level 3 (4) (4) -- -- -- ---- ----- ---- ---- FAIR VALUE AS OF DECEMBER 31, 2011 $56 $(489) $36 $(91) ---- ----- ---- ---- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $(9) $(137) $(8) $10 ---- ----- ---- ---- FREESTANDING DERIVATIVES (5) U.S. MACRO INTL. TOTAL FREE- INTEREST GMWB HEDGE PROGRAM STANDING ASSETS (LIABILITIES) RATE HEDGING PROGRAM HEDGING DERIVATIVES (5) ----------------------------- -------------------------------------------------------------------------------------------- Fair value as of January 1, 2011 $600 $203 $5 $415 Total realized/unrealized gains (losses) Included in net income (1),(2) 279 (128) 3 11 Included in OCI (3) -- -- -- -- Purchases 23 347 (43) 387 Settlements (19) (65) -- (152) Sales -- -- -- -- Transfers out of Level 3 (4) -- -- -- -- ----- ----- ---- ----- FAIR VALUE AS OF DECEMBER 31, 2011 $883 $357 $(35) $661 ----- ----- ---- ----- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $278 $(107) $(4) $32 ----- ----- ---- -----
REINSURANCE RECOVERABLE FOR U.S. GMWB AND JAPAN SEPARATE ASSETS GMWB, GMIB, AND GMAB (6) ACCOUNTS -------------------------------------------------------------------------------- Fair value as of January 1, 2011 $2,002 $1,247 Total realized/unrealized gains (losses) Included in net income (1),(2) 504 25 Included in OCI (3) 111 -- Purchases -- 292 Settlements 456 -- Sales -- (171) Transfers into Level 3 (4) -- 14 Transfers out of Level 3 (4) -- (376) -------- -------- FAIR VALUE AS OF DECEMBER 31, 2011 $3,073 $1,031 -------- -------- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $504 $(1) -------- --------
F-30
OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE (1) TOTAL OTHER POLICYHOLDER GUARANTEED FUNDS LIVING EQUITY LINKED AND BENEFITS OTHER CONSUMER LIABILITIES BENEFITS (7) NOTES PAYABLE LIABILITIES NOTES ------------------------------------------------------------------------------------------------------------------------------------ Fair value as of January 1, 2011 $(4,258) $(9) $(4,267) $(37) $(5) Total realized/unrealized gains (losses) Included in net income (1),(2) (1,118) -- (1,118) 28 1 Included in OCI (3) (126) -- (126) -- -- Settlements (274) -- (274) -- -- --------- ---- --------- ----- ---- FAIR VALUE AS OF DECEMBER 31, 2011 $(5,776) $(9) $(5,785) $(9) $(4) --------- ---- --------- ----- ---- Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 (2),(7) $(1,118) $ -- $(1,118) $28 $1 --------- ---- --------- ----- ----
(1) The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. (2) All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. (3) All amounts are before income taxes and amortization of DAC. (4) Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. (5) Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Consolidated Balance Sheet in other investments and other liabilities. (6) Includes fair value of reinsurance recoverables of approximately $0.9 billion and $2.6 billion as of December 31, 2012 and 2011, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. (7) Includes both market and non-market impacts in deriving realized and unrealized gains (losses). (8) Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See Note 4 -- Investments and Derivative Instruments of Notes to Consolidated Financial Statements for additional information. FAIR VALUE OPTION The Company holds fair value option investments that contain an embedded credit derivative with underlying credit risk primarily related to commercial real estate. Also included are foreign government securities that align with the accounting for yen-based fixed annuity liabilities, which are adjusted for changes in spot rates through realized gains and losses. Similar to other fixed maturities, income earned from these securities is recorded in net investment income. Changes in the fair value of these securities are recorded in net realized capital gains and losses. In 2012, the Company disposed of substantially all of its interest in a consolidated VIE, resulting in its deconsolidation. See Note 4 -- Investments and Derivative Instruments of Notes to Consolidated Financial Statements, for additional information related to the deconsolidation of this VIE. The Company previously elected the fair value option for this consolidated VIE in order to apply a consistent accounting model for the VIE's assets and liabilities. The VIE is an investment vehicle that holds high quality investments, derivative instruments that reference third-party corporate credit and issues notes to investors that reflect the credit characteristics of the high quality investments and derivative instruments. The risks and rewards associated with the assets of the VIE inure to the investors. The investors have no recourse against the Company. As a result, there was no adjustment to the market value of the notes for the Company's own credit risk. The Company elected the fair value option for consolidated VIE investment funds that were established in 2012. The Company elected the fair value option in order to report investments of consolidated investment companies at fair value with changes in the fair value of these securities recognized in net realized capital gains and losses, consistent with Investment Company accounting. The investment funds hold fixed income securities and the Company has management and control of the funds as well as a significant ownership interest. F-31 The following table presents the changes in fair value of those assets and liabilities accounted for using the fair value option reported in net realized capital gains and losses in the Company's Consolidated Statements of Operations.
YEAR ENDED DECEMBER 31, 2012 2011 -------------------------------------------------------------------------------- ASSETS Fixed maturities, FVO Corporate $9 $10 CRE CDOs 64 (33) CMBS (2) -- Foreign government (88) 45 RMBS 5 -- OTHER LIABILITIES Credit-linked notes (34) 28 ----- ----- TOTAL REALIZED CAPITAL GAINS (LOSSES) $(46) $50 ----- -----
The following table presents the fair value of assets and liabilities accounted for using the fair value option included in the Company's Consolidated Balance Sheets.
DECEMBER 31, 2012 DECEMBER 31, 2011 -------------------------------------------------------------------------------- ASSETS Fixed maturities, FVO ABS $ -- $65 Corporate 108 214 CRE CDOs 193 272 CMBS 4 -- Foreign government 699 766 Municipals 1 -- RMBS 3 -- U.S. government 2 -- ------- ------- TOTAL FIXED MATURITIES, FVO $1,010 $1,317 ------- ------- OTHER LIABILITIES Credit-linked notes (1) $ -- $9 ------- -------
(1) As of December 31, 2011, the outstanding principal balance of the notes was $243. FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE The following presents carrying amounts and fair values of the Company's financial instruments not carried at fair value, and not included in the above fair value discussion as of December 31, 2012 and December 31, 2011 were as follows:
DECEMBER 31, 2012 DECEMBER 31, 2011 FAIR VALUE CARRYING FAIR CARRYING FAIR HIERARCHY LEVEL AMOUNT VALUE AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- ASSETS Policy loans Level 3 1,951 2,112 1,952 2,099 Mortgage loans Level 3 4,935 5,109 4,182 4,382 -------- ------ ------ ------- ------- LIABILITIES Other policyholder funds and benefits payable (1) Level 3 9,318 9,668 10,065 10,959 Consumer notes (2) Level 3 159 159 310 305 -------- ------ ------ ------- -------
(1) Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. (2) Excludes amounts carried at fair value and included in disclosures above. The Company has not made any changes in its valuation methodologies for the following assets and liabilities during the years ended December 31, 2012 or December 31, 2011. - Fair value for policy loans and consumer notes were estimated using discounted cash flow calculations using current interest rates adjusted for estimated loan duration. F-32 - Fair values for mortgage loans were estimated using discounted cash flow calculations based on current lending rates for similar type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans. - Other policyholder funds and benefits payable, not carried at fair value, is determined by estimating future cash flows, discounted at the current market rate. 4. INVESTMENTS AND DERIVATIVE INSTRUMENTS NET INVESTMENT INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2011 2012 (BEFORE-TAX) 2010 ---------------------------------------------------------------------------------------------- Fixed maturities (1) 1,964 1,940 1,978 Equity securities, AFS 11 10 14 Mortgage loans 248 206 199 Policy loans 116 128 129 Limited partnerships and other alternative investments 85 143 121 Other investments (2) 198 226 253 Investment expenses (77) (74) (72) ------- -------- -------- TOTAL SECURITIES AFS AND OTHER 2,545 2,579 2,622 Equity securities, trading 202 (14) 238 ------- -------- -------- TOTAL NET INVESTMENT INCOME (LOSS) 2,747 $2,565 $2,860 ------- -------- --------
(1) Includes net investment income on short-term investments. (2) Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities. The net unrealized gain (loss) on equity securities, trading, included in net investment income during the years ended December 31, 2012, 2011 and 2010, was $113, $(111) and $160, respectively, substantially all of which have corresponding amounts credited to policyholders. These amounts were not included in gross unrealized gains (losses). NET REALIZED CAPITAL GAINS (LOSSES)
FOR THE YEARS ENDED DECEMBER 31, 2011 2012 (BEFORE-TAX) 2010 --------------------------------------------------------------------------------------------- Gross gains on sales $532 $405 $486 Gross losses on sales (278) (200) (336) Net OTTI losses recognized in earnings (1) (255) (125) (336) Valuation allowances on mortgage loans 4 25 (108) Japanese fixed annuity contract hedges, net (2) (36) 3 27 Periodic net coupon settlements on credit derivatives/Japan (8) -- (3) Results of variable annuity hedge program U.S. GMWB derivatives, net 519 (397) 89 U.S. macro hedge program (340) (216) (445) --------- ------ ------- TOTAL U.S. PROGRAM 179 (613) (356) International Program (1,167) 723 (13) --------- ------ ------- TOTAL RESULTS OF VARIABLE ANNUITY HEDGE PROGRAM (988) 110 (369) GMIB/GMAB/GMWB reinsurance 1,233 (326) (769) Coinsurance and modified coinsurance reinsurance contracts (1,862) 373 284 Other, net (3) 245 (265) 180 --------- ------ ------- NET REALIZED CAPITAL (LOSSES) $(1,413) $ -- $(944) --------- ------ -------
(1) Includes $173 of intent-to-sell impairments relating to the sale of the Retirement Plans and Individual Life businesses. (2) Relates to the Japanese fixed annuity products (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding net period coupon settlements, and Japan FVO securities). (3) Primarily consists of non-qualifying derivatives, transactional foreign currency re-valuation associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, and Japan 3Win related foreign currency swaps. F-33 Net realized capital gains and losses from investment sales, after deducting the life and pension policyholders' share for certain products, are reported as a component of revenues and are determined on a specific identification basis. Gross gains and losses on sales and impairments previously reported as unrealized gains in AOCI were $(1), $80 and $(186) for the years ended December 31, 2012, 2011 and 2010, respectively. SALES OF AVAILABLE-FOR-SALE SECURITIES
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------- Fixed maturities, AFS Sale proceeds $23,555 $19,861 $27,739 Gross gains 521 354 413 Gross losses (270) (205) (299) Equity securities, AFS Sale proceeds $133 $147 $171 Gross gains 15 50 12 Gross losses (5) -- (4) --------- --------- ---------
Sales of AFS securities in 2012 were the result of the reinvestment into spread product well-positioned for modest economic growth, as well as the purposeful reduction of certain exposures. OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES The following table presents a roll-forward of the Company's cumulative credit impairments on debt securities held as of December 31, 2012, 2011 and 2010.
FOR THE YEARS ENDED DECEMBER 31, 2011 2012 (BEFORE-TAX) 2010 -------------------------------------------------------------------------------- Balance, beginning of period $(1,319) $(1,598) $(1,632) Additions for credit impairments recognized on (1): Securities not previously impaired (27) (41) (181) Securities previously impaired (15) (47) (122) Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period 543 358 314 Securities due to an increase in expected cash flows 5 9 23 -------- --------- --------- BALANCE, END OF PERIOD $(813) $(1,319) $(1,598) -------- --------- ---------
(1) These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. AVAILABLE-FOR-SALE SECURITIES The following table presents the Company's AFS securities by type.
DECEMBER 31, 2012 COST OR GROSS GROSS NON- AMORTIZED UNREALIZED UNREALIZED FAIR CREDIT COST GAINS LOSSES VALUE OTTI (1) -------------------------------------------------------------------------------------------------------------------- ABS $1,807 $38 $(172) $1,673 $(4) CDOs (2) 2,236 61 (117) 2,160 (4) CMBS 3,757 262 (107) 3,912 (7) Corporate (2) 27,774 3,426 (221) 30,979 (19) Foreign govt./govt. agencies 1,369 120 (29) 1,460 -- Municipal 1,808 204 (14) 1,998 -- RMBS 4,590 196 (115) 4,671 (28) U.S. Treasuries 2,412 151 (12) 2,551 -- ------- ------ ----- ------- ---- TOTAL FIXED MATURITIES, AFS 45,753 4,458 (787) 49,404 (62) Equity securities, AFS 408 28 (36) 400 -- ------- ------ ----- ------- ---- TOTAL AFS SECURITIES (3) $46,161 $4,486 $(823) $49,804 $(62) ------- ------ ----- ------- ---- DECEMBER 31, 2011 COST OR GROSS GROSS NON- AMORTIZED UNREALIZED UNREALIZED FAIR CREDIT COST GAINS LOSSES VALUE OTTI (1) ----------------------------- --------------------------------------------------------------------------------------- ABS $2,361 $38 $(306) $2,093 $(3) CDOs (2) 2,055 15 (272) 1,798 (29) CMBS 4,418 169 (318) 4,269 (19) Corporate (2) 28,084 2,729 (539) 30,229 -- Foreign govt./govt. agencies 1,121 106 (3) 1,224 -- Municipal 1,504 104 (51) 1,557 -- RMBS 4,069 170 (416) 3,823 (97) U.S. Treasuries 2,624 162 (1) 2,785 -- ------- ------ ------ ------- ----- TOTAL FIXED MATURITIES, AFS 46,236 3,493 (1,906) 47,778 (148) Equity securities, AFS 443 21 (66) 398 -- ------- ------ ------ ------- ----- TOTAL AFS SECURITIES (3) $46,679 $3,514 $(1,972) $48,176 $(148) ------- ------ ------ ------- -----
(1) Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2012 and 2011. (2) Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). (3) Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements for further discussion of this transaction. F-34 The following table presents the Company's fixed maturities, AFS, by contractual maturity year.
DECEMBER 31, 2012 CONTRACTUAL MATURITY AMORTIZED COST FAIR VALUE -------------------------------------------------------------------------------- One year or less $1,223 $1,233 Over one year through five years 9,425 9,941 Over five years through ten years 8,733 9,567 Over ten years 13,982 16,247 --------- --------- Subtotal 33,363 36,988 Mortgage-backed and asset-backed securities 12,390 12,416 --------- --------- TOTAL FIXED MATURITIES, AFS (1) $45,753 $49,404 --------- ---------
(1) Includes fixed maturities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements for further discussion of this transaction. Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment spreads (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. CONCENTRATION OF CREDIT RISK The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. As of December 31, 2012 and 2011, the Company was not exposed to any concentration of credit risk of a single issuer greater than 10% of the Company's stockholders' equity other than U.S. government and certain U.S. government agencies. As of December 31, 2012, other than U.S. government and certain U.S. government agencies, the Company's three largest exposures by issuer were the Government of Japan, National Grid PLC and Berkshire Hathaway Inc. which each comprised less than 2.3% of total invested assets. As of December 31, 2011, other than U.S. government and certain U.S. government agencies, the Company's three largest exposures by issuer were the Government of Japan, the Government of the United Kingdom and AT&T Inc. which each comprised less than 1.2% of total invested assets. The Company's three largest exposures by sector as of December 31, 2012 were utilities, financial services, and consumer non-cyclical which comprised approximately 10%, 8% and 8%, respectively, of total invested assets. The Company's three largest exposures by sector as of December 31, 2011 were commercial real estate, U.S. Treasuries and utilities which comprised approximately 14%, 9% and 9%, respectively, of total invested assets. SECURITY UNREALIZED LOSS AGING The following tables present the Company's unrealized loss aging for AFS securities by type and length of time the security was in a continuous unrealized loss position.
DECEMBER 31, 2012 LESS THAN 12 MONTHS 12 MONTHS OR MORE AMORTIZED FAIR UNREALIZED AMORTIZED FAIR COST VALUE LOSSES COST VALUE ------------------------------------------------------------------------------------------------------------------------------ ABS $77 $76 $(1) $787 $616 CDOs (1) 5 5 -- 1,640 1,515 CMBS 192 179 (13) 795 701 Corporate 614 578 (36) 1,339 1,154 Foreign govt./govt. agencies 318 290 (28) 7 6 Municipal 65 62 (3) 98 87 RMBS 322 321 (1) 750 636 U.S. Treasuries 384 372 (12) -- -- ------ ------ ---- ------ ------ TOTAL FIXED MATURITIES 1,977 1,883 (94) 5,416 4,715 Equity securities 9 9 -- 172 136 ------ ------ ---- ------ ------ TOTAL SECURITIES IN AN UNREALIZED LOSS $1,986 $1,892 $(94) $5,588 $4,851 ------ ------ ---- ------ ------ DECEMBER 31, 2012 12 MONTHS OR MORE TOTAL UNREALIZED AMORTIZED FAIR UNREALIZED LOSSES COST VALUE LOSSES -------------------------------------- ------------------------------------------------------------------------------ ABS $(171) $864 $692 $(172) CDOs (1) (117) 1,645 1,520 (117) CMBS (94) 987 880 (107) Corporate (185) 1,953 1,732 (221) Foreign govt./govt. agencies (1) 325 296 (29) Municipal (11) 163 149 (14) RMBS (114) 1,072 957 (115) U.S. Treasuries -- 384 372 (12) ----- ------ ------ ----- TOTAL FIXED MATURITIES (693) 7,393 6,598 (787) Equity securities (36) 181 145 (36) ----- ------ ------ ----- TOTAL SECURITIES IN AN UNREALIZED LOSS $(729) $7,574 $6,743 $(823) ----- ------ ------ -----
F-35
DECEMBER 31, 2011 LESS THAN 12 MONTHS 12 MONTHS OR MORE AMORTIZED FAIR UNREALIZED AMORTIZED FAIR COST VALUE LOSSES COST VALUE ------------------------------------------------------------------------------------------------------------------------------- ABS $420 $385 $(35) $1,002 $731 CDOs (1) 80 58 (22) 1,956 1,706 CMBS 911 830 (81) 1,303 1,066 Corporate (1) 2,942 2,823 (119) 2,353 1,889 Foreign govt./govt. agencies 24 23 (1) 40 38 Municipal 202 199 (3) 348 300 RMBS 355 271 (84) 1,060 728 U.S. Treasuries 185 184 (1) -- -- ------ ------ ----- ------ ------ TOTAL FIXED MATURITIES 5,119 4,773 (346) 8,062 6,458 Equity securities 115 90 (25) 104 63 ------ ------ ----- ------ ------ TOTAL SECURITIES IN AN UNREALIZED LOSS $5,234 $4,863 $(371) $8,166 $6,521 ------ ------ ----- ------ ------ DECEMBER 31, 2011 12 MONTHS OR MORE TOTAL UNREALIZED AMORTIZED FAIR UNREALIZED LOSSES COST VALUE LOSSES -------------------------------------- ---------------------------------------------------------------------------------- ABS $(271) $1,422 $1,116 $(306) CDOs (1) (250) 2,036 1,764 (272) CMBS (237) 2,214 1,896 (318) Corporate (1) (420) 5,295 4,712 (539) Foreign govt./govt. agencies (2) 64 61 (3) Municipal (48) 550 499 (51) RMBS (332) 1,415 999 (416) U.S. Treasuries -- 185 184 (1) ------ ------- ------- ------ TOTAL FIXED MATURITIES (1,560) 13,181 11,231 (1,906) Equity securities (41) 219 153 (66) ------ ------- ------- ------ TOTAL SECURITIES IN AN UNREALIZED LOSS $(1,601) $13,400 $11,384 $(1,972) ------ ------- ------- ------
(1) Unrealized losses exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). As of December 31, 2012, AFS securities in an unrealized loss position, comprised of 1,244 securities, primarily related to corporate securities primarily within the financial services sector, CMBS, RMBS, ABS and CDOs. which have experienced significant price deterioration. As of December 31, 2012, 83% of these securities were depressed less than 20% of cost or amortized cost. The decline in unrealized losses during 2012 was primarily attributable to credit spreads tightening and a decline in interest rates. Most of the securities depressed for twelve months or more relate to structured securities with exposure to commercial and residential real estate, ABS backed by student loans, as well as certain floating rate corporate securities or those securities with greater than 10 years to maturity, concentrated in the financial services sector. Current market spreads continue to be significantly wider for structured securities with exposure to commercial and residential real estate, as compared to spreads at the security's respective purchase date, largely due to the economic and market uncertainties regarding future performance of commercial and residential real estate. In addition, the majority of securities have a floating-rate coupon referenced to a market index where rates have declined substantially. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined above. MORTGAGE LOANS
DECEMBER 31, 2012 AMORTIZED VALUATION CARRYING COST (1) ALLOWANCE VALUE --------------------------------------------------------------------------------------------------------- Commercial $4,949 $(14) $4,935 -------- ----- -------- TOTAL MORTGAGE LOANS (2) $4,949 $(14) $4,935 -------- ----- -------- DECEMBER 31, 2011 AMORTIZED VALUATION CARRYING COST (1) ALLOWANCE VALUE -------------------------------------- ----------------------------------------------------------------- Commercial $4,205 $(23) $4,182 -------- ----- -------- TOTAL MORTGAGE LOANS (2) $4,205 $(23) $4,182 -------- ----- --------
(1) Amortized cost represents carrying value prior to valuation allowances, if any. (2) Includes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements for further discussion of this transaction. As of December 31, 2012 and 2011, the carrying value of mortgage loans associated with the valuation allowance was $189 and $347, respectively. Included in the table above are mortgage loans held-for-sale with a carrying value and valuation allowance of $47 and $3, respectively, as of December 31, 2012 and $57 and $4, respectively, as of December 31, 2011. The carrying value of these loans is included in mortgage loans in the Company's Consolidated Balance Sheets. As of December 31, 2012, loans within the Company's mortgage loan portfolio that have had extensions or restructurings other than what is allowable under the original terms of the contract are immaterial. The following table presents the activity within the Company's valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial.
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 ------------------------------------------------------------------------------------------------------- BALANCE AS OF JANUARY 1 $ (23) $ (62) $ (260) (Additions)/Reversals 4 25 (108) Deductions 5 14 306 ----- ----- ------- BALANCE AS OF DECEMBER 31 $(14) $(23) $(62) ----- ----- -------
F-36 The current weighted-average LTV ratio of the Company's commercial mortgage loan portfolio was 61% as of December 31, 2012, while the weighted-average LTV ratio at origination of these loans was 63%. 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. DSCRs compare a property's net operating income to the borrower's principal and interest payments. The current weighted average DSCR of the Company's commercial mortgage loan portfolio was 2.34x as of December 31, 2012. The Company held only one delinquent commercial mortgage loan past due by 90 days or more with a carrying value and valuation allowance of $32 and $0, respectively, as of December 31, 2012 and is 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, 2012 DECEMBER 31, 2011 CARRYING AVG. DEBT-SERVICE CARRYING AVG. DEBT-SERVICE LOAN-TO-VALUE VALUE COVERAGE RATIO VALUE COVERAGE RATIO --------------------------------------------------------------------------------------------------------------------------------- Greater than 80% $137 0.89x $422 1.67x 65% - 80% 1,717 2.27x 1,779 1.57x Less than 65% 3,081 2.44x 1,981 2.45x -------- ------ -------- ------ TOTAL COMMERCIAL MORTGAGE LOANS $4,935 2.34X $4,182 1.99X -------- ------ -------- ------
The following tables present the carrying value of the Company's mortgage loans by region and property type. MORTGAGE LOANS BY REGION
DECEMBER 31, 2012 DECEMBER 31, 2011 CARRYING PERCENT OF CARRYING PERCENT OF VALUE TOTAL VALUE TOTAL -------------------------------------------------------------------------------------------------------------------------------- East North Central $97 2.0% $59 1.4% Middle Atlantic 370 7.5% 401 9.6% Mountain 62 1.3% 61 1.5% New England 231 4.7% 202 4.8% Pacific 1,504 30.5% 1,268 30.3% South Atlantic 1,012 20.5% 810 19.4% West North Central 16 0.3% 16 0.4% West South Central 234 4.7% 115 2.7% Other (1) 1,409 28.5% 1,250 29.9% -------- ------- -------- ------- TOTAL MORTGAGE LOANS $4,935 100.0% $4,182 100.0% -------- ------- -------- -------
(1) Primarily represents loans collateralized by multiple properties in various regions. MORTGAGE LOANS BY PROPERTY TYPE
DECEMBER 31, 2012 DECEMBER 31, 2011 CARRYING PERCENT OF CARRYING PERCENT OF VALUE TOTAL VALUE TOTAL -------------------------------------------------------------------------------------------------------------------------------- Commercial Agricultural $109 2.2% $127 3.0% Industrial 1,519 30.8% 1,262 30.1% Lodging 81 1.6% 84 2.0% Multifamily 869 17.6% 734 17.6% Office 1,120 22.7% 836 20.0% Retail 1,047 21.2% 918 22.0% Other 190 3.9% 221 5.3% -------- ------- -------- ------- TOTAL MORTGAGE LOANS $4,935 100.0% $4,182 100.0% -------- ------- -------- -------
VARIABLE INTEREST ENTITIES The Company is involved with various special purpose entities and other entities that are deemed to be VIEs primarily as a collateral manager and as an investor through normal investment activities, as well as a means of accessing capital. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest or lacks sufficient funds to finance its own activities without financial support provided by other entities. F-37 The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company's assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company's Consolidated Financial Statements. CONSOLIDATED VIES The following table presents the carrying value of assets and liabilities, and the maximum exposure to loss relating to the VIEs for which the Company is the primary beneficiary. Creditors have no recourse against the Company in the event of default by these VIEs nor does the Company have any implied or unfunded commitments to these VIEs. The Company's financial or other support provided to these VIEs is limited to its investment management services and original investment.
DECEMBER 31, 2012 MAXIMUM TOTAL TOTAL EXPOSURE ASSETS LIABILITIES (1) TO LOSS (2) -------------------------------------------------------------------------------------------------------- CDOs (3) $89 $88 $7 Investment funds (4) 132 20 110 Limited partnerships 6 3 3 ------ ------ ------ TOTAL $227 $111 $120 ------ ------ ------ DECEMBER 31, 2011 MAXIMUM TOTAL TOTAL EXPOSURE ASSETS LIABILITIES (1) TO LOSS (2) -------------------------------------- -------------------------------------------------------------- CDOs (3) $491 $474 $25 Investment funds (4) -- -- -- Limited partnerships 7 3 4 ------ ------ ---- TOTAL $498 $477 $29 ------ ------ ----
(1) Included in other liabilities in the Company's Consolidated Balance Sheets. (2) The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company's investment. (3) Total assets included in fixed maturities, AFS in the Company's Consolidated Balance Sheets. (4) Total assets included in fixed maturities, FVO in the Company's Consolidated Balances Sheets. CDOs represent structured investment vehicles for which the Company has a controlling financial interest as it provides collateral management services, earns a fee for those services and also holds investments in the securities issued by these vehicles. Investment funds represents wholly-owned fixed income funds established in 2012 for which the Company has exclusive management and control including management of investment securities which is the activity that most significantly impacts its economic performance. Limited partnerships represent one hedge fund for which the Company holds a majority interest in the fund as an investment. In 2012, the Company disposed of substantially all of its interest in a consolidated VIE. Upon disposition, the Company determined that it was no longer the primary beneficiary of the VIE. Therefore, the investment was deconsolidated as of the disposition date in the fourth quarter of 2012. The deconsolidation of the VIE resulted in a decrease in assets of $344, liabilities of $319, and a maximum exposure to loss of $6 at the time of disposal. The deconsolidation did not have a significant impact on the Company's results from operations. NON-CONSOLIDATED VIES The Company does not hold any investments issued by VIEs for which the Company is not the primary beneficiary as of December 31, 2012 and 2011. In addition, the Company, through normal investment activities, makes passive investments in structured securities issued by VIEs for which the Company is not the manager which are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, FVO, in the Company's Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company's investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company's obligation to absorb losses or right to receive benefits and the Company's inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company's maximum exposure to loss on these investments is limited to the amount of the Company's investment. F-38 EQUITY METHOD INVESTMENTS The Company has investments in limited partnerships and other alternative investments which include hedge funds, mortgage and real estate funds, mezzanine debt funds, and private equity and other funds (collectively, "limited partnerships"). These investments are accounted for under the equity method and the Company's maximum exposure to loss as of December 31, 2012 is limited to the total carrying value of $1.4 billion. In addition, the Company has outstanding commitments totaling approximately $269, to fund limited partnership and other alternative investments as of December 31, 2012. The Company's investments in limited partnerships are generally of a passive nature in that the Company does not take an active role in the management of the limited partnerships. In 2012, aggregate investment income (losses) from limited partnerships and other alternative investments exceeded 10% of the Company's pre-tax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for the Company's limited partnership investments. This aggregated summarized financial data does not represent the Company's proportionate share of limited partnership assets or earnings. Aggregate total assets of the limited partnerships in which the Company invested totaled $75.3 billion and $75.7 billion as of December 31, 2012 and 2011, respectively. Aggregate total liabilities of the limited partnerships in which the Company invested totaled $9.6 billion and $13.8 billion as of December 31, 2012 and 2011, respectively. Aggregate net investment income (loss) of the limited partnerships in which the Company invested totaled $0.9 billion, $1.2 billion and $927 for the periods ended December 31, 2012, 2011 and 2010, respectively. Aggregate net income (loss) of the limited partnerships in which the Company invested totaled $6.5 billion, $8.1 billion, and $9.7 billion for the periods ended December 31, 2012, 2011 and 2010, respectively. As of, and for the period ended, December 31, 2012, the aggregated summarized financial data reflects the latest available financial information. REPURCHASE AGREEMENTS AND DOLLAR ROLL AGREEMENTS The Company enters into repurchase agreements and dollar roll transactions to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. A dollar roll is a type of repurchase transaction where a mortgage backed security is sold with an agreement to repurchase substantially the same security at specified time in the future. These transactions are generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value. As part of repurchase agreements and dollar roll transactions, the Company transfers U.S. government and government agency securities and receives cash. For the repurchase agreements, the Company obtains collateral in an amount equal to at least 95% of the fair value of the securities transferred, and the agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities. The Company accounts for the repurchase agreements and dollar roll transactions as collateralized borrowings. The securities transferred under repurchase agreements and dollar roll transactions are included in fixed maturities, available-for-sale with the obligation to repurchase those securities recorded in Other Liabilities on the Company's Consolidated Balance Sheets. The fair value of the securities transferred was $1.6 billion with a corresponding agreement to repurchase $1.6 billion as of December 31, 2012. Securities sold under agreement to repurchase were $1.6 billion as of December 31, 2012. DERIVATIVE INSTRUMENTS The Company utilizes a variety of over-the-counter and exchange traded derivative instruments as a part of its overall risk management strategy, as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that would be permissible investments under the Company's investment policies. The Company also purchases and issues financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or may contain features that are deemed to be embedded derivative instruments, such as the GMWB rider included with certain variable annuity products. STRATEGIES THAT QUALIFY FOR HEDGE ACCOUNTING Certain derivatives the Company enters into satisfy the hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. Typically, these hedge relationships include interest rate and foreign currency swaps where the terms or expected cash flows of the securities closely match the "pay" leg terms of the swap. The swaps are typically used to manage interest rate duration of certain fixed maturity securities, or liability contracts, or convert securities ,or liabilities denominated in a foreign currency to US dollars. The hedge strategies by hedge accounting designation include: CASH FLOW HEDGES Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives convert interest receipts on floating-rate fixed maturity securities or interest payments on floating-rate guaranteed investment contracts to fixed rates. The Company also enters F-39 into forward starting swap agreements primarily to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. FAIR VALUE HEDGES Interest rate swaps are used to hedge the changes in fair value of certain fixed rate liabilities and fixed maturity securities due to fluctuations in interest rates. Foreign currency swaps are used to hedge the changes in fair value of certain foreign currency-denominated fixed rate liabilities due to changes in foreign currency rates by swapping the fixed foreign payments to floating rate U.S. dollar denominated payments. NON-QUALIFYING STRATEGIES Derivative relationships that do not qualify for hedge accounting or "non-qualifying strategies" primarily include the hedge programs for our U.S. and international variable annuity products, as well as the hedging and replication strategies through the use of credit default swaps. In addition, hedges of interest rate and foreign currency risk of certain fixed maturities and liabilities do not qualify for hedge accounting. These non-qualifying strategies include: INTEREST RATE SWAPS, SWAPTIONS, CAPS, FLOORS, AND FUTURES The Company uses interest rate swaps, swaptions, caps, floors, and futures to manage duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of December 31, 2012 and 2011, the notional amount of interest rate swaps in offsetting relationships was $5.1 billion. FOREIGN CURRENCY SWAPS AND FORWARDS The Company enters into foreign currency swaps and forwards to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. JAPAN 3WIN FOREIGN CURRENCY SWAPS Prior to the second quarter of 2009, the Company offered a yen denominated fixed annuity product through a wholly-owned Japanese subsidiary and reinsured to a wholly-owned U.S. subsidiary. The U.S. subsidiary invests in U.S. dollar denominated securities to support the yen denominated fixed liability payments and entered into currency rate swaps to hedge the foreign currency exchange rate and yen interest rate exposures that exist as a result of U.S. dollar assets backing the yen denominated liability. JAPANESE FIXED ANNUITY HEDGING INSTRUMENTS Prior to the second quarter of 2009, the Company offered a yen denominated fixed annuity product through a wholly-owned Japanese subsidiary and reinsured to a wholly-owned U.S. subsidiary. The U.S. subsidiary invests in U.S. dollar denominated securities to support the yen denominated fixed liability payments and entered into currency rate swaps to hedge the foreign currency exchange rate and yen interest rate exposures that exist as a result of U.S. dollar assets backing the yen denominated liability. CREDIT DERIVATIVES Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in value on fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity, referenced index, or asset pool, as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. The Company is also exposed to credit risk related to credit derivatives embedded within certain fixed maturity securities. These securities are primarily comprised of structured securities that contain credit derivatives that reference a standard index of corporate securities. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. EQUITY INDEX SWAPS AND OPTIONS The Company formerly offered certain equity indexed products, which may contain an embedded derivative that requires bifurcation. The Company enters into S&P index swaps and options to economically hedge the equity volatility risk associated with these embedded derivatives. The Company also enters into equity index options and futures with the purpose of hedging the impact of an adverse equity market environment on the investment portfolio. F-40 U.S GMWB DERIVATIVES, NET The Company formerly offered certain variable annuity products with GMWB riders in the U.S. The GMWB product is a bifurcated embedded derivative ("U.S. GMWB product derivative") that has a notional value equal to the GRB. The Company uses reinsurance contracts to transfer a portion of its risk of loss due to U.S GMWB. The reinsurance contracts covering U.S. GMWB ("U.S. GMWB reinsurance contracts") are accounted for as free-standing derivatives with a notional amount equal to the GRB amount. The Company utilizes derivatives (" U.S. GMWB hedging derivatives") as part of an actively managed program designed to hedge a portion of the capital market risk exposures of the un-reinsured GMWB due to changes in interest rates, equity market levels, and equity volatility. These derivatives include customized swaps, interest rate swaps and futures, and equity swaps, options, and futures, on certain indices including the S&P 500 index, EAFE index, and NASDAQ index. The following table represents notional and fair value for U.S. GMWB hedging instruments.
NOTIONAL AMOUNT FAIR VALUE DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2012 2011 2012 2011 --------------------------------------------------------------------------------------------------------------------------------- Customized swaps $7,787 $8,389 $238 $385 Equity swaps, options, and futures 5,130 5,320 267 498 Interest rate swaps and futures 5,705 2,697 67 11 --------- --------- ------ ------ TOTAL $18,622 $16,406 $572 $894 --------- --------- ------ ------
U.S. MACRO HEDGE PROGRAM The Company utilizes equity options and futures contracts to partially hedge against a decline in the equity markets and the resulting statutory surplus and capital impact primarily arising from GMDB and GMWB obligations. The following table represents notional and fair value for the U.S. macro hedge program.
NOTIONAL AMOUNT FAIR VALUE DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2012 2011 2012 2011 --------------------------------------------------------------------------------------------------------------------------------- Equity futures $ -- $59 $ -- $ -- Equity options 7,442 6,760 286 357 -------- -------- ------ ------ TOTAL $7,442 $6,819 $286 $357 -------- -------- ------ ------
INTERNATIONAL PROGRAM The Company formerly offered certain variable annuity products in the U.K. and Japan with GMWB or GMAB riders, which are bifurcated embedded derivatives ("International program product derivatives"). The GMWB provides the policyholder with a GRB if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. Certain contract provisions can increase the GRB at contract holder election or after the passage of time. The GMAB provides the policyholder with their initial deposit in a lump sum after a specified waiting period. The notional amount of the International program product derivatives are the foreign currency denominated GRBs converted to U.S. dollars at the current foreign spot exchange rate as of the reporting period date. F-41 The Company enters into derivative contracts ("International program hedging instruments") to hedge a portion of the capital market risk exposures associated with the guaranteed benefits associated with the international variable annuity contracts. The hedging derivatives are comprised of equity futures, options, and swaps and currency forwards and options to partially hedge against a decline in the debt and equity markets or changes in foreign currency exchange rates and the resulting statutory surplus and capital impact primarily arising from GMDB, GMIB and GMWB obligations issued in the U.K. and Japan. The Company also enters into foreign currency denominated interest rate swaps and swaptions to hedge the interest rate exposure related to the potential annuitization of certain benefit obligations. The following table represents notional and fair value for the international program hedging instruments.
NOTIONAL AMOUNT FAIR VALUE DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2012 2011 2012 2011 --------------------------------------------------------------------------------------------------------------------------------- Credit derivatives 350 -- 28 -- Currency forwards (1) 9,327 8,622 (87) 446 Currency options 9,710 7,038 (49) 72 Equity futures 1,206 2,691 -- -- Equity options 2,621 1,120 (105) (3) Equity swaps 2,683 392 (12) (8) Customized swaps 899 -- (11) -- Interest rate futures 634 739 -- -- Interest rate swaps and swaptions 21,018 8,117 131 35 --------- --------- ------- ------ TOTAL $48,448 $28,719 $(105) $542 --------- --------- ------- ------
(1) As of December 31, 2012 and 2011 net notional amounts are $0.1 billion and $7.2 billion, respectively, which include $4.7 billion and $7.9 billion, respectively, related to long positions and $4.6 billion and $0.7 billion, respectively, related to short positions. GMAB, GMWB AND GMIB REINSURANCE CONTRACTS The Company reinsured the GMAB, GMWB, and GMIB embedded derivatives for host variable annuity contracts written by HLIKK. The reinsurance contracts are accounted for as free-standing derivative contracts. The notional amount of the reinsurance contracts is the yen denominated GRB balance value converted at the period-end yen to U.S. dollar foreign spot exchange rate. For further information on this transaction, refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements. COINSURANCE AND MODIFIED COINSURANCE REINSURANCE CONTRACTS During 2010, a subsidiary entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement with an affiliated captive reinsurer, which creates an embedded derivative. In addition, provisions of this agreement include reinsurance to cede a portion of direct written U.S. GMWB riders, which is accounted for as an embedded derivative. Additional provisions of this agreement cede variable annuity contract GMAB, GMWB and GMIB riders reinsured by the Company that have been assumed from HLIKK and is accounted for as a free-standing derivative. For further information on this transaction, refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements. DERIVATIVE BALANCE SHEET CLASSIFICATION The table below summarizes the balance sheet classification of the Company's derivative related fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals or cash collateral held amounts, which are netted with derivative fair value amounts to determine balance sheet presentation. Derivatives in the Company's separate accounts are not included because the associated gains and losses accrue directly to policyholders. The Company's derivative instruments are held for risk management purposes, unless otherwise noted in the table below. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company's derivative activity. Notional amounts are not necessarily reflective of credit risk. F-42
NET DERIVATIVES NOTIONAL AMOUNT FAIR VALUE DEC 31, DEC 31, DEC 31, DEC 31, 2012 2011 2012 2011 ------------------------------------------------------------------------------------------------ HEDGE DESIGNATION/ DERIVATIVE TYPE CASH FLOW HEDGES Interest rate swaps $3,863 $6,339 $167 $276 Foreign currency swaps 163 229 (17) (5) --------- --------- ------- ------- TOTAL CASH FLOW HEDGES 4,026 6,568 150 271 --------- --------- ------- ------- FAIR VALUE HEDGES Interest rate swaps 753 1,007 (55) (78) Foreign currency swaps 40 677 16 (39) --------- --------- ------- ------- TOTAL FAIR VALUE HEDGES 793 1,684 (39) (117) --------- --------- ------- ------- NON-QUALIFYING STRATEGIES INTEREST RATE CONTRACTS Interest rate swaps, swaptions, caps, floors, and futures 13,432 6,252 (363) (435) FOREIGN EXCHANGE CONTRACTS Foreign currency swaps and forwards 182 208 (9) (10) Japan 3Win foreign currency swaps 1,816 2,054 (127) 184 Japanese fixed annuity hedging instruments 1,652 1,945 224 514 CREDIT CONTRACTS Credit derivatives that purchase credit protection 1,539 1,134 (5) 23 Credit derivatives that assume credit risk (1) 1,981 2,212 (8) (545) Credit derivatives in offsetting positions 5,341 5,020 (22) (43) EQUITY CONTRACTS Equity index swaps and options 791 1,433 35 23 VARIABLE ANNUITY HEDGE PROGRAM U.S. GMWB product derivative (2) 28,868 34,569 (1,249) (2,538) U.S. GMWB reinsurance contracts 5,773 7,193 191 443 U.S. GMWB hedging instruments 18,622 16,406 572 894 U.S. macro hedge program 7,442 6,819 286 357 International program product derivatives (2) 1,876 2,009 (42) (30) International program hedging instruments 48,448 28,719 (105) 542 OTHER GMAB, GMWB, and GMIB reinsurance contracts 18,287 21,627 (1,827) (3,207) Coinsurance and modified coinsurance reinsurance contracts 44,985 50,756 890 2,630 --------- --------- ------- ------- TOTAL NON-QUALIFYING STRATEGIES 201,035 188,356 (1,559) (1,198) --------- --------- ------- ------- TOTAL CASH FLOW HEDGES, FAIR VALUE HEDGES, AND NON - QUALIFYING STRATEGIES $205,854 $196,608 $(1,448) $(1,044) --------- --------- ------- ------- BALANCE SHEET LOCATION Fixed maturities, available-for-sale $416 $416 $(20) $(45) Other investments 37,809 51,231 581 1,971 Other liabilities 67,765 28,717 38 (254) Consumer notes 26 35 (2) (4) Reinsurance recoverable 47,430 55,140 1,081 3,073 Other policyholder funds and benefits payable 52,408 61,069 (3,126) (5,785) --------- --------- ------- ------- TOTAL DERIVATIVES $205,854 $196,608 $(1,448) $(1,044) --------- --------- ------- ------- ASSET LIABILITY DERIVATIVES DERIVATIVES FAIR VALUE FAIR VALUE DEC 31, DEC 31, DEC 31, DEC 31, 2012 2011 2012 2011 ------------------------------------ ------------------------------------------------------------------- HEDGE DESIGNATION/ DERIVATIVE TYPE CASH FLOW HEDGES Interest rate swaps $167 $276 $ -- $ -- Foreign currency swaps 3 17 (20) (22) ------ ------ ------- ------- TOTAL CASH FLOW HEDGES 170 293 (20) (22) ------ ------ ------- ------- FAIR VALUE HEDGES Interest rate swaps -- -- (55) (78) Foreign currency swaps 16 64 -- (103) ------ ------ ------- ------- TOTAL FAIR VALUE HEDGES 16 64 (55) (181) ------ ------ ------- ------- NON-QUALIFYING STRATEGIES INTEREST RATE CONTRACTS Interest rate swaps, swaptions, caps, floors, and futures 436 417 (799) (852) FOREIGN EXCHANGE CONTRACTS Foreign currency swaps and forwards 5 3 (14) (13) Japan 3Win foreign currency swaps -- 184 (127) -- Japanese fixed annuity hedging instruments 228 540 (4) (26) CREDIT CONTRACTS Credit derivatives that purchase credit protection 3 35 (8) (12) Credit derivatives that assume credit risk (1) 17 2 (25) (547) Credit derivatives in offsetting positions 56 101 (78) (144) EQUITY CONTRACTS Equity index swaps and options 45 36 (10) (13) VARIABLE ANNUITY HEDGE PROGRAM U.S. GMWB product derivative (2) -- -- (1,249) (2,538) U.S. GMWB reinsurance contracts 191 443 -- -- U.S. GMWB hedging instruments 743 1,022 (171) (128) U.S. macro hedge program 356 357 (70) -- International program product derivatives (2) -- -- (42) (30) International program hedging instruments 657 672 (762) (130) OTHER GMAB, GMWB, and GMIB reinsurance contracts -- -- (1,827) (3,207) Coinsurance and modified coinsurance reinsurance contracts 1,566 2,901 (676) (271) ------ ------ ------- ------- TOTAL NON-QUALIFYING STRATEGIES 4,303 6,713 (5,862) (7,911) ------ ------ ------- ------- TOTAL CASH FLOW HEDGES, FAIR VALUE HEDGES, AND NON - QUALIFYING STRATEGIES $4,489 $7,070 $(5,937) $(8,114) ------ ------ ------- ------- BALANCE SHEET LOCATION Fixed maturities, available-for-sale $ -- $ -- $(20) $(45) Other investments 1,049 2,745 (468) (774) Other liabilities 1,683 981 (1,645) (1,235) Consumer notes -- -- (2) (4) Reinsurance recoverable 1,757 3,344 (676) (271) Other policyholder funds and benefits payable -- -- (3,126) (5,785) ------ ------ ------- ------- TOTAL DERIVATIVES $4,489 $7,070 $(5,937) $(8,114) ------ ------ ------- -------
(1) The derivative instruments related to this strategy are held for other investment purposes. (2) These derivatives are embedded within liabilities and are not held for risk management purposes. CHANGE IN NOTIONAL AMOUNT The net increase in notional amount of derivatives since December 31, 2011, was primarily due to the following: - The $48.4 billion notional amount related to the international program hedging instruments as of December 31, 2012, consisted of $43.8 billion of long positions and $4.6 billion of offsetting short positions, resulting in a net notional amount of $39.2 billion. The $28.7 billion notional amount as of December 31, 2011, consisted of $28.0 billion of long positions and $0.7 billion of offsetting short positions, resulting in a net notional amount of $27.3 billion. The increase in net notional of $11.9 billion primarily resulted from the Company increasing its hedging of interest rate exposure. CHANGE IN FAIR VALUE The decline in the total fair value of derivative instruments since December 31, 2011, was primarily related to the following: - The fair value related to the international program hedging instruments decreased as a result of the improvement in global equity markets and the depreciation of the Japanese yen in relation to the euro and the U.S. dollar - The fair value related to the Japanese fixed annuity hedging instruments and Japan 3Win foreign currency swaps decreased primarily due to the strengthening of the currency basis swap spread between U.S. dollar and Japanese yen, a decline in U.S. interest rates, and depreciation of the Japanese yen in relation to the U.S. dollar. F-43 - The increase in fair value related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily due to a liability model assumption update, outperformance of the underlying actively managed funds as compared to their respective indices and lower equity market volatility. - The increase in fair value related to credit derivatives that assume credit risk was primarily due to credit spread tightening and to the disposition of substantially all of the Company's interest in a consolidated VIE that contained a credit derivative. For more information on the disposition, see the Variable Interest Entity section of this footnote. - GMAB, GMWB and GMIB reinsurance contracts represent the guarantees that are internally reinsured from HLIKK. The fair value of these liabilities has improved as a result of a sustained recovery in the equity markets, exchange rates, interest rates and volatility. For a discussion related to the reinsurance agreement refer to Note 16 --Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. - The Coinsurance and modified coinsurance reinsurance contracts represents U.S. and International guarantees that are ceded to an affiliate. The primary driver of the decline in the fair value of these derivatives is a result of changes in the unrealized gains/losses of the underlying portfolios associated with these contract. For a discussion related to the reinsurance agreement refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. CASH FLOW HEDGES For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. The following table presents the components of the gain or loss on derivatives that qualify as cash flow hedges: DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
NET REALIZED CAPITAL GAINS (LOSSES) GAIN (LOSS) RECOGNIZED IN OCI RECOGNIZED IN INCOME ON ON DERIVATIVE (EFFECTIVE PORTION) DERIVATIVE (INEFFECTIVE PORTION) 2012 2011 2010 2012 2011 2010 --------------------------------------------------------------------------------------------------------------------------------- Interest rate swaps $26 $245 $232 $ -- $(2) $2 Foreign currency swaps (18) (5) 3 -- -- (1) ----- ------ ------ ---- ---- ---- TOTAL $8 $240 $235 $ -- $(2) $1 ----- ------ ------ ---- ---- ----
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
GAIN (LOSS) RECLASSIFIED FROM AOCI INTO INCOME (EFFECTIVE PORTION) 2012 2011 2010 ---------------------------------------------------------------------------------------------------------------------------------- Interest rate swaps Net realized capital gains (losses) $85 $6 $5 Interest rate swaps Net investment income (loss) 97 77 56 Foreign currency swaps Net realized capital gains (losses) (4) (1) (7) ------ ---- ---- TOTAL $178 $82 $54 ------ ---- ----
As of December 31, 2012, the before-tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $140. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to interest income over the term of the investment cash flows. Also included are deferred gains related to cash flow hedges associated with fixed-rate bonds sold as part of the Retirement Plans and Individual Life business dispositions completed January 1, 2013 and January 2, 2013, respectively. For further information on the business dispositions, see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. During the year ended December 31, 2012, the before-tax deferred net gains on derivative instruments reclassified from AOCI to earnings totaled $91. This primarily resulted from the discontinuance of cash flow hedges due to forecasted transactions no longer probable of occurring associated with variable rate bonds sold as part of the Individual and Retirement Plans business dispositions. For further information on the business dispositions, see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. For the years ended December 31, 2011 and 2010, the Company had no and less than $1 of net reclassifications, respectively, from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. F-44 FAIR VALUE HEDGES For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The Company includes the gain or loss on the derivative in the same line item as the offsetting loss or gain on the hedged item. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. The Company recognized in income gains (losses) representing the ineffective portion of fair value hedges as follows: DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS
GAIN (LOSS) RECOGNIZED IN INCOME (1) 2012 2011 HEDGED HEDGED DERIVATIVE ITEM DERIVATIVE ITEM ------------------------------------------------------------------------------------------------------------------- Interest rate swaps Net realized capital gains (losses) $(3) $(3) $(58) $54 Benefits, losses and loss adjustment expenses -- -- (1) 3 Foreign currency swaps Net realized capital gains (losses) (7) 7 (1) 1 Benefits, losses and loss adjustment expenses (6) 6 (22) 22 ----- ---- ----- ---- TOTAL $(16) $10 $(81) $77 ----- ---- ----- ---- GAIN (LOSS) RECOGNIZED IN INCOME (1) 2010 HEDGED DERIVATIVE ITEM ----------------------------- ------------------------------------ Interest rate swaps Net realized capital gains (losses) $(44) $38 Benefits, losses and loss adjustment expenses Foreign currency swaps Net realized capital gains (losses) 8 (8) Benefits, losses and loss adjustment expenses (12) 12 ----- ---- TOTAL $(49) $45 ----- ----
(1) The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge. NON-QUALIFYING STRATEGIES For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). The following table presents the gain or loss recognized in income on non-qualifying strategies: NON-QUALIFYING STRATEGIES GAIN (LOSS) RECOGNIZED WITHIN NET REALIZED CAPITAL GAINS (LOSSES)
DECEMBER 31, 2012 2011 2010 ---------------------------------------------------------------------------------- INTEREST RATE CONTRACTS Interest rate swaps, caps, floors, and forwards $26 $20 $14 FOREIGN EXCHANGE CONTRACTS Foreign currency swaps and forwards 10 1 (3) Japan 3Win foreign currency swaps (1) (300) 31 215 Japanese fixed annuity hedging instruments (2) (178) 109 385 CREDIT CONTRACTS Credit derivatives that purchase credit protection (19) (8) (17) Credit derivatives that assume credit risk 204 (141) 157 EQUITY CONTRACTS Equity index swaps and options (31) (67) 5 VARIABLE ANNUITY HEDGE PROGRAM U.S. GMWB product derivatives 1,430 (780) 486 U.S. GMWB reinsurance contracts (280) 131 (102) U.S. GMWB hedging instruments (631) 252 (295) U.S. macro hedge program (340) (216) (445) International program product derivative (7) (12) 24 International program hedging instruments (1,160) 735 (37) OTHER GMAB, GMWB, and GMIB reinsurance contracts 1,233 (326) (769) Coinsurance and modified coinsurance reinsurance contracts (1,862) 373 284 --------- ------ ------ TOTAL $(1,905) $102 $(98) --------- ------ ------
(1) The associated liability is adjusted for changes in spot rates through realized capital gains and was $189, $(100) and $(273) for the years ended December 31, 2012, 2011 and 2010, respectively. (2) The associated liability is adjusted for changes in spot rates through realized capital gains and losses and was $245, $(129) and $(332) for the years ended December 31, 2012, 2011, and 2010, respectively. F-45 For the year ended December 31, 2012, the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily comprised of the following: - The net loss associated with the international program hedging instruments was primarily driven by an improvement in global equity markets and depreciation of the Japanese yen in relation to the euro and the U.S. dollar. - The net gain related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily driven by liability model assumption updates, outperformance of underlying actively managed funds compared to their respective indices, and lower equity volatility. - The net loss on the U.S. macro hedge program was primarily due to the passage of time, an improvement in domestic equity markets, and a decrease in equity volatility. - The net gain associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to the depreciation of the Japanese yen and an improvement in equity markets. - The net loss on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. - The net loss related to the Japan 3Win foreign currency swaps and Japanese fixed annuity hedging instruments was primarily due to the depreciation of the Japanese yen in relation to the U.S. dollar, the strengthening of the currency basis swap spread between the U.S. dollar and the Japanese yen, and a decline in U.S. interest rates. - The gain on credit derivatives that assume credit risk as a part of replication transactions resulted from credit spread tightening. For the year ended December 31, 2011, the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily comprised of the following: - The net gain associated with the international program hedging instruments was primarily driven by strengthening of the Japanese yen, a decline in global equity markets, and a decrease in interest rates. - The loss related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily a result of a decrease in long-term interest rates and higher interest rate volatility. - The net loss associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to the strengthening of the Japanese yen and a decrease in equity markets. - The net gain on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. - The net loss on the U.S. macro hedge program was primarily driven by time decay and a decrease in equity market volatility since the purchase date of certain options during the fourth quarter. For the year ended December 31, 2010, the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily due to the following: - The net loss on derivatives associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to a decrease in Japan interest rates, an increase in Japan currency volatility and a decrease in Japan equity markets. - The net loss associated with the U.S. macro hedge program was primarily due to a higher equity market valuation, time decay, and lower implied market volatility. - The net gain on the Japanese fixed annuity hedging instruments was primarily due to the strengthening of the Japanese yen in comparison to the U.S. dollar. - The net gain related to the Japan 3 Win foreign currency swaps was primarily due to the strengthening of the Japanese yen in comparison to the U.S. dollar, partially offset by the decrease in U.S. long-term interest rates. - The net gain on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument, primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. - The net gain associated with credit derivatives that assume credit risk as a part of replication transactions resulted from credit spread tightening. F-46 - The gain related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily a result of liability model assumption updates during third quarter, lower implied market volatility, and outperformance of the underlying actively managed funds as compared to their respective indices, partially offset by a general decrease in long-term interest rates and rising equity markets. Refer to Note 10 -- Commitments and Contingencies of Notes to Consolidated Financial Statements for additional disclosures regarding contingent credit related features in derivative agreements. CREDIT RISK ASSUMED THROUGH CREDIT DERIVATIVES The Company enters into credit default swaps that assume credit risk of a single entity, referenced index, or asset pool in order to synthetically replicate investment transactions. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer's debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard and customized diversified portfolios of corporate issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. The following tables present the notional amount, fair value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amounts and fair value for credit derivatives in which the Company is assuming credit risk as of December 31, 2012 and 2011. AS OF DECEMBER 31, 2012
WEIGHTED AVERAGE CREDIT DERIVATIVE TYPE BY NOTIONAL FAIR YEARS TO DERIVATIVE RISK EXPOSURE AMOUNT (2) VALUE MATURITY ----------------------------------------------------------------------------------- Single name credit default swaps Investment grade risk exposure $1,787 $8 3 years Below investment grade risk exposure 114 (1) 1 year Basket credit default swaps (4) Investment grade risk exposure 2,074 11 2 years Investment grade risk exposure 237 (12) 4 years Below investment grade risk exposure 115 (27) 4 years Embedded credit derivatives Investment grade risk exposure 325 296 4 years ------ ----- -------- TOTAL $4,652 $275 ------ ----- -------- UNDERLYING REFERENCEDRAGE OFFSETTING CREDIT DERIVATIVE TYPE BY CREDIT OBLIGATION(S)C(1)IT NOTIONAL OFFSETTING DERIVATIVE RISK EXPOSURE TYPE RATING AMOUNT (3) FAIR VALUE (3) ----------------------------- ------------------------------------------------------------------------ Single name credit default swaps Corporate Investment grade risk Credit/ exposure Foreign Gov. A $878 $(19 ) Below investment grade risk Corporate exposure Credit B+ 114 (3) Basket credit default swaps (4) Investment grade risk Corporate exposure Credit BBB+ 1,326 (6) Investment grade risk exposure CMBS Credit A 238 12 Below investment grade risk exposure CMBS Credit B+ 115 27 Embedded credit derivatives Investment grade risk Corporate exposure Credit BBB- -- -- --------------- ------ ------ ---- TOTAL $2,671 $11 --------------- ------ ------ ----
AS OF DECEMBER 31, 2011
WEIGHTED AVERAGE CREDIT DERIVATIVE TYPE BY NOTIONAL YEARS TO DERIVATIVE RISK EXPOSURE AMOUNT (2) FAIR VALUE MATURITY ----------------------------------------------------------------------------------- Single name credit default swaps Investment grade risk exposure $1,067 $(18 ) 3 years Below investment grade risk exposure 125 (7) 2 years Basket credit default swaps (4) Investment grade risk exposure 2,375 (71) 3 years Investment grade risk exposure 353 (63) 5 years Below investment grade risk exposure 477 (441) 3 years Embedded credit derivatives Investment grade risk exposure 25 24 3 years Below investment grade risk exposure 300 245 5 years ------ ----- -------- TOTAL $4,722 $(331) ------ ----- -------- UNDERLYING REFERENCED CREDIT OBLIGATION(S) (1) AVERAGE OFFSETTING OFFSETTING CREDIT DERIVATIVE TYPE BY CREDIT NOTIONAL FAIR DERIVATIVE RISK EXPOSURE TYPE RATING AMOUNT (3) VALUE (3) ----------------------------- ----------------------------------------------------------------------- Single name credit default swaps Corporate Investment grade risk Credit/ exposure Foreign Gov. A+ $915 $(19 ) Below investment grade risk Corporate exposure Credit B+ 114 (3) Basket credit default swaps (4) Investment grade risk Corporate exposure Credit BBB+ 1,128 17 Investment grade risk exposure CMBS Credit BBB+ 353 62 Below investment grade risk Corporate exposure Credit BBB+ -- -- Embedded credit derivatives Investment grade risk Corporate exposure Credit BBB- -- -- Below investment grade risk Corporate exposure Credit BB+ -- -- --------------- ------ ------ ---- TOTAL $2,510 $57 --------------- ------ ------ ----
(1) The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody's, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2) Notional amount is equal to the maximum potential future loss amount. There is no specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. F-47 (3) The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. (4) Includes $2.4 billion and $2.7 billion as of December 31, 2012 and 2011, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. As of December 31, 2012 the Company did not hold customized diversified portfolios of corporate issuers referenced through credit default swaps. As of December 31, 2011 the Company held $478 of customized diversified portfolios of corporate issuers referenced through credit default swaps. COLLATERAL ARRANGEMENTS The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2012 and 2011, collateral pledged having a fair value of $370 and $762, respectively, was included in fixed maturities, AFS, in the Consolidated Balance Sheets. The following table presents the classification and carrying amount of derivative instruments collateral pledged.
DECEMBER 31, DECEMBER 31, 2012 2011 ------------------------------------------------------------------------------------ Fixed maturities, AFS $370 $762 Short-term investments 179 148 ------ ------ TOTAL COLLATERAL PLEDGED $549 $910 ------ ------
As of December 31, 2012 and 2011, the Company had accepted collateral with a fair value of $2.7 billion and $2.4 billion, respectively, of which $2.2 billion and $1.9 billion, respectively, was cash collateral which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amount recorded in other assets and other liabilities. Included in the $2.2 billion of cash collateral, as of December 31, 2012, was $1.6 billion which relates to repurchase agreements and dollar roll transactions. The Company is only permitted by contract to sell or repledge the noncash collateral in the event of a default by the counterparty. As of December 31, 2012 and 2011, noncash collateral accepted was held in separate custodial accounts and was not included in the Company's Consolidated Balance Sheets. SECURITIES ON DEPOSIT WITH STATES The Company is required by law to deposit securities with government agencies in states where it conducts business. As of December 31, 2012 and 2011, the fair value of securities on deposit was approximately $14 and $14, respectively. 5. REINSURANCE Insurance recoveries on ceded reinsurance agreements, which reduce death and other benefits, were $302, $252, and $324 for the years ended December 31, 2012, 2011, and 2010, respectively. The Company reinsures 31% of GMDB, as well as a portion of GMWB, on contracts issued prior to July 2007, offered in connection with its variable annuity contracts. The Company maintains reinsurance agreements with HLA, whereby the Company cedes both group life and group accident and health risk. Under these treaties, the Company ceded group life premium of $94, $106, and $129 in 2012, 2011, and 2010, respectively, and accident and health premium of $177, $191, and $205, respectively, to HLA. A subsidiary of the Company, Hartford Life and Annuity Insurance Company ("HLAI") has a modified coinsurance ("modco") and coinsurance with funds withheld reinsurance agreement with an affiliated captive reinsurer, White River Life Reinsurance ("WRR"). Under this transaction, the Company ceded $67, $71, and $56 in 2012, 2011, and 2010, respectively. Refer to Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements for further information. Net fee income, earned premiums and other were comprised of the following:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------------------------------------- Gross fee income, earned premiums and other $3,776 $4,187 $4,176 Reinsurance assumed 8 13 69 Reinsurance ceded (698) (733) (759) -------- -------- -------- NET FEE INCOME, EARNED PREMIUMS AND OTHER $3,086 $3,467 $3,486 -------- -------- --------
F-48 6. DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS Changes in the DAC balance are as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $ 3,448 $ 3,694 $ 4,341 Deferred costs 329 381 381 Amortization -- DAC (280) (290) (244) Amortization -- Unlock benefit (charge), pre-tax (44) (137) 134 Amortization -- DAC from discontinued operations (35) (47) (68) Adjustments to unrealized gains and losses on securities available- for-sale and other (1), (2) (346) (154) (848) Effect of currency translation -- 1 (9) Cumulative effect of accounting change, pre-tax (3) -- -- 7 -------- -------- -------- BALANCE, END OF PERIOD (4) $3,072 $3,448 $3,694 -------- -------- --------
(1) Primarily represents the effect of declining interest rates, resulting in unrealized gains on securities classified in AOCI. (2) Other includes a $16 reduction of the DAC asset as a result of the sale of assets used to administer the Company's PPLI business in 2012. The reduction is directly attributable to this transaction as it results in lower future estimated gross profits than originally estimated on these products. For further information regarding this transaction see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. Other also includes a $34 reduction of the DAC asset as a result of the sale of Hartford Investment Canada Corporation in 2010. (3) For the year ended December 31, 2010 the effect of adopting new accounting guidance for embedded credit derivatives resulted in a decrease to retained earnings and, as a result, a DAC benefit. In addition, an offsetting amount was recorded in unrealized losses as unrealized losses decreased upon adoption of the new accounting guidance. (4) For further information, see Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. As of December 31, 2012, estimated future net amortization expense of present value of future profits for the succeeding five years is $22, $6, $6, $6 and $5 in 2013, 2014, 2015, 2016 and 2017 respectively. Future net amortization expense as of December 31, 2012 reflects the estimated impact of the business disposition transactions discussed in Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. 7. GOODWILL The reporting units of the Company for which goodwill has been allocated include Mutual Funds, Retirement Plans and Individual Life. YEAR ENDED DECEMBER 31, 2012 During the fourth quarter of 2012, the Company wrote off $159 of goodwill associated with the Mutual Funds reporting unit including goodwill of $10 due to the sale of Woodbury Financial Services and $149 of remaining goodwill as a result of the Mutual Funds reorganization. For further discussion of the reorganization of the Mutual Funds business, see Note 1 -- Basis of Presentation and Significant Accounting Policies and Note 18 -- Discontinued Operations of Notes to Consolidated Financial Statements. During the first quarter of 2012, the Company determined that a triggering event requiring an interim impairment assessment had occurred as a result of its decision to pursue sales or other strategic alternatives for the Retirement Plans and Individual Life reporting units. The Company completed interim impairment tests during each of the first three quarters of 2012 for the Retirement Plans reporting unit which resulted in no impairment of goodwill. The annual goodwill assessment for Retirement Plans was completed as of October 31, 2012 and an additional impairment test was completed as of December 31, 2012 as a result of the anticipated sale of this business unit. No write-down of goodwill resulted for the year ended December 31, 2012. Retirement Plans passed step one of the goodwill impairment tests with a margin of less than 10% between fair value and book value of the reporting unit as of both dates. The fair value of the Retirement Plans reporting unit as of October 31, 2012 and December 31, 2012 was based on a negotiated transaction price. The carrying amount of goodwill allocated to the Retirement Plans reporting unit was $87 as of December 31, 2012 and December 31, 2011. F-49 The Company completed interim impairment tests during each of the first three quarters of 2012 for the Individual Life reporting unit which resulted in no impairment of goodwill as the Company anticipated a gain on the sale of the Individual Life reporting unit. Upon closing the fourth quarter of 2012, the Company uncovered an error in its calculation of the transaction gain that resulted in the transaction generating a modest loss. This loss would have resulted in a goodwill impairment in the third quarter, however, this loss was recognized in the fourth quarter as it was immaterial to the respective quarter's financial statements taken as a whole. Accordingly, an impairment loss of $61 was recognized in the fourth quarter of 2012. An additional impairment test was completed for the Individual Life reporting unit as of December 31, 2012 as a result of the anticipated sale of this business unit. No additional write-down of goodwill resulted for the year ended December 31, 2012 as fair value approximated the remaining book value of the reporting unit as of December 31, 2012. The fair value of the Individual Life reporting unit as of October 31, 2012 and December 31, 2012 was based on a negotiated transaction price. The carrying amount of goodwill allocated to the Individual Life reporting unit was $163 and $224 as of December 31, 2012 and 2011, respectively. YEAR ENDED DECEMBER 31, 2011 The Company completed its annual goodwill assessment for the individual reporting units on January 1, 2011 and October 31, 2011, which resulted in no impairment of goodwill. All reporting units passed the first step of both impairment tests with a significant margin. YEAR ENDED DECEMBER 31, 2010 The Company completed its annual goodwill assessment for the individual reporting units on January 1, 2010, which resulted in no write-downs of goodwill in 2010. The reporting units passed the first step of their annual impairment tests with a significant margin with the exception of the Individual Life reporting unit. Individual Life completed the second step of the annual goodwill impairment test resulting in an implied goodwill value that was in excess of its carrying value. Even though the fair value of the reporting unit was lower than its carrying value, the implied level of goodwill in Individual Life exceeded the carrying amount of goodwill. In the hypothetical purchase accounting required by step two of the goodwill impairment test, the implied present value of future profits was substantially lower than that of the DAC asset removed in purchase accounting. A higher discount rate was used for calculating the present value of future profits as compared to that used for calculating the present value of estimated gross profits for DAC. As a result, in the hypothetical purchase accounting, implied goodwill exceeded the carrying amount of goodwill. 8. SEPARATE ACCOUNTS, DEATH BENEFITS AND OTHER INSURANCE BENEFIT FEATURES Changes in the gross GMDB and UL secondary guarantee benefits are as follows:
UL SECONDARY GMDB GUARANTEES -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2012 $ 1,158 $ 228 Incurred 228 113 Paid (258) -- Unlock (181) 22 Currency Translation Adjustment (3) -- -------- ------ LIABILITY BALANCE AS OF DECEMBER 31, 2012 $944 $363 -------- ------ REINSURANCE RECOVERABLE ASSET, AS OF JANUARY 1, 2012 $ 724 $ 22 Incurred 121 (1) Paid (121) -- Unlock (116) -- -------- ------ REINSURANCE RECOVERABLE ASSET, AS OF DECEMBER 31, 2012 $608 $21 -------- ------
UL SECONDARY GMDB GUARANTEES -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2011 $ 1,115 $ 113 Incurred 271 53 Paid (284) -- Unlock 48 62 Currency Translation Adjustment 8 -- -------- ------ LIABILITY BALANCE AS OF DECEMBER 31, 2011 $1,158 $228 -------- ------ REINSURANCE RECOVERABLE ASSET, AS OF JANUARY 1, 2011 $ 686 $ 30 Incurred 128 (8) Paid (143) -- Unlock 53 -- -------- ------ REINSURANCE RECOVERABLE ASSET, AS OF DECEMBER 31, 2011 $724 $22 -------- ------
F-50 The following table presents details concerning GMDB and GMIB exposure as of December 31, 2012: INDIVIDUAL VARIABLE AND GROUP ANNUITY ACCOUNT VALUE BY GMDB/GMIB TYPE
RETAINED NET ACCOUNT NET AMOUNT AMOUNT WEIGHTED AVERAGE VALUE AT RISK AT RISK ATTAINED AGE OF MAXIMUM ANNIVERSARY VALUE ("MAV") (1) ("AV") (8) ("NAR") (9) ("RNAR") (9) ANNUITANT ------------------------------------------------------------------------------------------------------------------------------- MAV only $19,509 $3,973 $263 69 With 5% rollup (2) 1,517 379 26 69 With Earnings Protection Benefit Rider 4,990 582 17 66 ("EPB") (3) With 5% rollup & EPB 561 127 5 69 ----------- -------- ------ --- Total MAV 26,577 5,061 311 Asset Protection Benefit (APB) (4) 20,008 1,069 208 67 Lifetime Income Benefit (LIB) -- Death 1,063 33 9 65 Benefit (5) Reset (6) (5-7 years) 3,098 140 73 69 Return of Premium (7) /Other 21,807 327 89 66 ----------- -------- ------ --- SUBTOTAL U.S. GMDB $ 72,553 $ 6,630 $ 690 67 Less: General Account Value with U.S. 7,405 GMBD ----------- SUBTOTAL SEPARATE ACCOUNT LIABILITIES 65,148 WITH GMDB Separate Account Liabilities without 76,410 U.S. GMDB ----------- TOTAL SEPARATE ACCOUNT LIABILITIES $141,558 ----------- JAPAN GMDB (10), (11) $ 16,115 $ 2,650 $ -- 68 JAPAN GMIB (10), (11) $15,454 $2,389 $ -- 68 ----------- -------- ------ ---
(1) MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). (2) Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums. (3) EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract's growth. The contract's growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals. (4) APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). (5) LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a benefit amount that ratchets over time, generally based on market performance. (6) Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 (adjusted for withdrawals). (7) ROP GMDB is the greater of current AV and net premiums paid. (8) AV includes the contract holder's investment in the separate account and the general account. (9) NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced for reinsurances. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. (10) Assumed GMDB includes a ROP and MAV (before age 80) paid in a single lump sum. GMIB is a guarantee to return initial investment, adjusted for earnings liquidity, paid through a fixed annuity, after a minimum deferral period of 10, 15 or 20 years. The guaranteed remaining balance ("GRB") related to the Japan GMIB was $17.8 billion and $21.1 billion as of December 31, 2012 and December 31, 2011, respectively. The GRB related to the Japan GMAB and GMWB was $470 and $567 as of December 31, 2012 and December 31, 2011, respectively. These liabilities are not included in the Separate Account as they are not legally insulated from the general account liabilities of the insurance enterprise. As of December 31, 2012, 100% of RNAR is reinsured to an affiliate. See Note 16 -- Transactions with Affiliates of Notes to Consolidated Financial Statements. F-51 (11) Policies with a guaranteed living benefit (a GMWB in the US or a GMIB in Japan) also have a guaranteed death benefit. The NAR for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR is released. See Note 3 -- Fair Value Measurements of Notes to Consolidated Financial Statements for a description of the Company's guaranteed living benefits that are accounted for at fair value. Account balances of contracts with guarantees were invested in variable separate accounts as follows:
DECEMBER 31, DECEMBER 31, ASSET TYPE 2012 2011 ------------------------------------------------------------------------ Equity securities (including mutual funds) $58,208 $61,472 Cash and cash equivalents 6,940 7,516 --------- --------- TOTAL $65,148 $68,988 --------- ---------
As of December 31, 2012 and December 31, 2011, approximately 16% and 17%, respectively, of the equity securities above were invested in fixed income securities through these funds and approximately 84% and 83%, respectively, were invested in equity securities through these funds. 9. SALES INDUCEMENTS The Company offered enhanced crediting rates or bonus payments to contract holders on certain of its individual and group annuity products. The expense associated with offering a bonus is deferred and amortized over the life of the related contract in a pattern consistent with the amortization of deferred policy acquisition costs. Amortization expense associated with expenses previously deferred is recorded over the remaining life of the contract. Consistent with the Unlock, the Company unlocked the amortization of the sales inducement asset. See Note 6 -- Deferred Policy Acquisition Costs and Present Value of Future Profits of Notes to Consolidated Financial Statements for more information concerning the Unlock. Changes in sales inducement activity are as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $186 $197 $194 Sales inducements deferred 4 6 10 Amortization -- Unlock (59) (4) (9) Amortization charged to income (13) (13) 2 ------ ------ ------ BALANCE, END OF PERIOD $118 $186 $197 ------ ------ ------
10. COMMITMENTS AND CONTINGENCIES CONTINGENCIES RELATING TO CORPORATE LITIGATION AND REGULATORY MATTERS Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its "best estimate," or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated reserve at the low end of the range of losses. LITIGATION The Company is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Company accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company. The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others and in addition to the matter described below, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper sales practices in connection with the sale of certain life insurance products and improper claim practices with respect to certain group benefits claims. The Company also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the F-52 inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods. LEASE COMMITMENTS The rent paid to Hartford Fire for operating leases was $17, $19 and $15 for the years ended December 31, 2012, 2011 and 2010, respectively. Future minimum lease commitments as of December 31, 2012 are as follows:
OPERATING LEASES -------------------------------------------------------------------------------- 2013 $11 2014 7 2015 6 2016 4 2017 3 Thereafter 3 ---- TOTAL $34 ----
UNFUNDED COMMITMENTS As of December 31, 2012, the Company has outstanding commitments totaling $299, of which $269 is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period (on average 2 to 4 years) to fund the purchase of new investments and partnership expenses. Once the commitment period expires, the Company is under no obligation to fund the remaining unfunded commitment but may elect to do so. Additionally, $27 is largely related to commercial whole loans expected to fund in the first half of 2013. The remaining outstanding commitments are related to various funding obligations associated with private placement securities. These have a commitment period of one month to one year. GUARANTY FUND AND OTHER INSURANCE-RELATED ASSESSMENTS In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state's fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state. The Company accounts for guaranty fund and other insurance assessments in accordance with Accounting Standards Codification 405-30, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments". Liabilities for guaranty funds and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2012 and 2011, the liability balance was $42 and $43, respectively. As of December 31, 2012 and 2011, $27 and $26, respectively, related to premium tax offsets were included in other assets. In 2011, the Company recognized $22 for expected assessments related to the Executive Life Insurance Company of New York (ELNY) insolvency. DERIVATIVE COMMITMENTS Certain of the Company's derivative agreements contain provisions that are tied to the financial strength ratings of the individual legal entity that entered into the derivative agreement as set by nationally recognized statistical rating agencies. If the legal entity's financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity's ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2012, is $365. Of this $365, the legal entities have posted collateral of $345 in the normal course of business. Based on derivative market values as of December 31, 2012, a downgrade of one level below the current financial strength ratings by either Moody's or S&P could require an additional $29 to be posted as collateral. Based on derivative market values as of December 31, 2012, a downgrade by either Moody's or S&P of two levels below the legal entities' current financial strength ratings could require approximately an additional $33 of assets to be posted as collateral.These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills and U.S. Treasury notes. F-53 On February 5, 2013 Moody's lowered its counterparty credit and insurer financial strength ratings on Hartford Life and Annuity Insurance Company to Baa2. Given this downgrade action, termination rating triggers in seven derivative counterparty relationships were impacted. The Company is in the process of re-negotiating the rating triggers which it expects to successfully complete. Accordingly, the Company does not expect the current hedging programs to be adversely impacted by the announcement of the downgrade of Hartford Life and Annuity Insurance Company. As of December 31, 2012, the notional amount and fair value related to these counterparties is $18.8 billion and $331, respectively. These counterparties have the right to terminate these relationships and would have to settle the outstanding derivatives prior to exercising their termination right. Accordingly, as of December 31, 2012 five of these counterparties combined would owe the Company the derivatives fair value of $375 and the Company would owe two counterparties combined $44. Of this $44, the legal entities have posted collateral of $33 in the normal course of business. The counterparties have not exercised this termination right. The notional and fair value amounts include a customized GMWB derivative with a notional amount of $3.9 billion and a fair value of $133, for which the Company has a contractual right to make a collateral payment in the amount of approximately $45 to prevent its termination. 11. INCOME TAX Income (loss) from continuing operations before income taxes included income (loss) from domestic operations of $528, $(147) and $708 for 2012, 2011 and 2010, and income (loss) from foreign operations of $92, $(32) and $12 for 2012, 2011 and 2010. Substantially all of the income (loss) from foreign operations is earned by an Irish subsidiary. Income tax expense (benefit) is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------- INCOME TAX EXPENSE (BENEFIT) Current -- U.S. Federal $138 $(208) $18 International -- -- 5 ------- ------- ------ TOTAL CURRENT $138 (208) 23 ------- ------- ------ Deferred -- U.S. Federal Excluding NOL Carryforward (94) 46 114 Net Operating Loss Carryforward (9) (163) (1) ------- ------- ------ TOTAL DEFERRED (103) (117) 113 ------- ------- ------ TOTAL INCOME TAX EXPENSE (BENEFIT) $35 $(325) $136 ------- ------- ------
Deferred tax assets (liabilities) include the following as of December 31:
AS OF DECEMBER 31, DEFERRED TAX ASSETS 2012 2011 -------------------------------------------------------------------------------- Tax basis deferred policy acquisition costs $424 $479 Investment-related items 1,244 92 Insurance product derivatives 1,092 2,011 NOL Carryover 225 241 Minimum tax credit 355 387 Foreign tax credit carryover 33 17 Capital loss carryover 5 -- Depreciable and amortizable assets -- 37 Other 65 23 --------- --------- TOTAL DEFERRED TAX ASSETS 3,443 3,287 Valuation Allowance (53) (78) --------- --------- NET DEFERRED TAX ASSETS 3,390 3,209 --------- --------- DEFERRED TAX LIABILITIES Financial statement deferred policy acquisition (356) (427) costs and reserves Net unrealized gain on investments (1,432) (735) Employee benefits (45) (41) --------- --------- TOTAL DEFERRED TAX LIABILITIES (1,833) (1,203) --------- --------- TOTAL DEFERRED TAX ASSET 1,557 2,006 --------- ---------
F-54 As of December 31, 2012 and 2011, the deferred tax asset included the expected tax benefit attributable to foreign net operating losses of $221 and $314, which have no expiration. The Company had a current income tax payable of $192 as of December 31, 2012 and a current income tax recoverable of $330 as of December 31, 2011. If the Company were to follow a "separate entity" approach, the current tax benefit related to any of the Company's tax attributes realized by virtue of its inclusion in The Hartford's consolidated tax return would have been recorded directly to surplus rather than income. These benefits were $(18), $0 and $0 for 2012, 2011 and 2010, respectively. The Company recorded a deferred tax asset valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. The deferred tax asset valuation allowance was $53 as of December 31, 2012 and $78 as of December 31, 2011. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in open carryback years, as well as other tax planning strategies. These tax planning strategies include holding a portion of debt securities with market value losses until recovery, selling appreciated securities to offset capital losses, business considerations such as asset-liability matching, and the sales of certain corporate assets. Management views such tax planning strategies as prudent and feasible and will implement them, if necessary, to realize the deferred tax asset. Based on the availability of additional tax planning strategies identified in the second quarter of 2011, the Company released $56, or 100% of the valuation allowance associated with investment realized capital losses. Future economic conditions and debt market volatility, including increases in interest rates, can adversely impact the Company's tax planning strategies and in particular the Company's ability to utilize tax benefits on previously recognized realized capital losses. The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years prior to 2007. The audit of the years 2007-2009 commenced during 2010 and is expected to conclude by the end of 2013, with no material impact on the consolidated financial condition or results of operations. The 2010-2011 audit commenced in the 4th quarter of 2012 and is expected to conclude by the end of 2014. In addition, in the second quarter of 2011, the Company recorded a tax benefit of $52 as a result of a resolution of a tax matter with the IRS for the computation of the dividends-received deduction (DRD) for years 1998, 2000 and 2001. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax-related matters for all open tax years. The Company's unrecognized tax benefits are settled with the parent consistent with the terms of the tax sharing agreement described above. A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 --------------------------------------------------------------------------------------------------------------------------------- Tax expense (benefit) at the U.S. federal statutory rate 217 (63) $252 Dividends-received deduction (140) (201) (145) Foreign related investments (16) (5) -- Valuation Allowance (25) (53) 50 Other (1) (3) (21) ------ ------- ------ TOTAL $35 $(325) $136 ------ ------- ------
12. DEBT COLLATERALIZED ADVANCES The Company became a member of the Federal Home Loan Bank of Boston ("FHLBB") in May 2011. Membership allows the Company access to collateralized advances, which may be used to support various spread-based business and enhance liquidity management. The Connecticut Department of Insurance ("CTDOI") will permit the Company to pledge up to $1.25 billion in qualifying assets to secure FHLBB advances for 2013. The amount of advances that can be taken are dependent on the asset types pledged to secure the advances. The pledge limit is recalculated annually based on statutory admitted assets and capital and surplus. The Company would need to seek the prior approval of the CTDOI if there were a desire to exceed these limits. As of December 31, 2012, the Company had no advances outstanding under the FHLBB facility. CONSUMER NOTES The Company issued consumer notes through its Retail Investor Notes Program prior to 2009. A consumer note is an investment product distributed through broker-dealers directly to retail investors as medium-term, publicly traded fixed or floating rate, or a combination of fixed and floating rate, notes. Consumer notes are part of the Company's spread-based business and proceeds are used to purchase investment products, primarily fixed rate bonds. Proceeds are not used for general operating purposes. Consumer notes maturities may extend up to 30 years and have contractual coupons based upon varying interest rates or indexes (e.g. consumer price index) and may include a call provision that allows the Company F-55 to extinguish the notes prior to its scheduled maturity date. Certain Consumer notes may be redeemed by the holder in the event of death. Redemptions are subject to certain limitations, including calendar year aggregate and individual limits. The aggregate limit is equal to the greater of $1 or 1% of the aggregate principal amount of the notes as of the end of the prior year. The individual limit is $250 thousand per individual. Derivative instruments are utilized to hedge the Company's exposure to market risks in accordance with Company policy. As of December 31, 2012, these consumer notes have interest rates ranging from 4% to 6% for fixed notes and, for variable notes, based on December 31, 2012 rates, either consumer price index plus 100 to 260 basis points, or indexed to the S&P 500, Dow Jones Industrials, foreign currency, or the Nikkei 225. The aggregate maturities of Consumer Notes are as follows: $78 in 2013, $13 in 2014, $30 in 2015, $18 in 2016, $12 in 2017 and $8 thereafter. For 2012, 2011 and 2010, interest credited to holders of consumer notes was $10, $15 and $25, respectively. 13. STATUTORY RESULTS The domestic insurance subsidiaries of the Company prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners ("NAIC"), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, life benefit reserves predominately use interest rate and mortality assumptions prescribed by the NAIC, bonds are generally carried at amortized cost and reinsurance assets and liabilities are presented net of reinsurance. The statutory net income (loss) and surplus was as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 --------------------------------------------------------------------------------------------------------------------------------- Combined statutory net income (loss) $927 $(669) $208 Statutory capital and surplus $5,016 $5,920 $5,832
Statutory accounting practices do not consolidate the net income (loss) of subsidiaries as performed under U.S. GAAP. Therefore, the combined statutory net income (loss) above presents the total statutory net income of the Company and its other insurance subsidiaries to present a comparable statutory net income (loss). In December 2009, the NAIC issued Statement of Statutory Accounting Principles ("SSAP") No. 10R, Income Taxes -- Revised, A Temporary Replacement of SSAP No. 10. SSAP No. 10R was updated in September 2010 and is effective for annual periods December 31, 2010 and interim and annual periods of 2011 and 2012. SSAP No. 10R increases the realization period for deferred tax assets from one year to three years and increases the asset recognition limit from 10% to 15% of adjusted statutory capital and surplus. REGULATORY CAPITAL REQUIREMENTS The Company's and its U.S. insurance companies' states of domicile impose risk-based capital ("RBC") requirements. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Regulatory compliance is determined by a ratio of a company's total adjusted capital ("TAC") to its authorized control level RBC ("ACL RBC"). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is two times the ACL RBC ("Company Action Level"). The adequacy of a company's capital is determined by the ratio of a company's TAC to its Company Action Level (known as the RBC ratio). The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. Similar to the RBC ratios that are employed by U.S. insurance regulators, regulatory authorities in the international jurisdictions in which the Company operates generally establish minimum solvency requirements for insurance companies. All of the Company's international insurance subsidiaries have solvency margins in excess of the minimum levels required by the applicable regulatory authorities. DIVIDEND RESTRICTIONS Dividends to the Company from its insurance subsidiaries are restricted, as is the ability of the Company to pay dividends to its parent company. Future dividend decisions will be based on, and affected by, a number of factors, including the operating results and financial requirements of the Company on a stand-alone basis and the impact of regulatory restrictions. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds F-56 the greater of (i) 10% of the insurer's policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer's earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which the Company's insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances somewhat more restrictive) limitations on the payment of dividends. The Company's subsidiaries are permitted to pay up to a maximum of approximately $82 in dividends in 2013 without prior approval from the applicable insurance commissioner. In 2012, the Company received no dividends from its subsidiaries. With respect to dividends to its parent, the Company's dividend limitation under the holding company laws of Connecticut is $515 in 2013. However, because the Company's earned surplus is negative as of December 31, 2012, the Company will not be permitted to pay any dividends to its parent in 2013 without prior approval from the Connecticut Insurance Commissioner. In 2012, the Company paid no dividends to its parent company. On February 5, 2013 the Company received approval from the State of Connecticut Insurance Department to receive a $1.1 billion extraordinary dividend from its Connecticut domiciled life insurance subsidiaries, and to pay a $1.2 billion extraordinary dividend to its parent company. These dividends were received and paid on February 22, 2013. 14. PENSION PLANS, POSTRETIREMENT, HEALTH CARE AND LIFE INSURANCE BENEFIT AND SAVINGS PLANS PENSION PLANS Hartford Life's employees are included in The Hartford's non-contributory defined benefit pension and postretirement health care and life insurance benefit plans. Effective December 31, 2012, The Hartford amended the defined benefit pension to freeze participation and benefit accruals. Also, The Hartford amended its postretirement health care and life insurance benefit plans for all current employees to no longer provide subsidized coverage for current employees who retire on or after January 1, 2014. Defined benefit pension expense/(income), postretirement health care and life insurance benefits expense/(income) allocated by The Hartford to the Company, was $(3), $45 and $43 for the years ended December 31, 2012, 2011 and 2010, respectively. INVESTMENT AND SAVINGS PLAN Substantially all U.S. employees are eligible to participate in The Hartford's Investment and Savings Plan under which designated contributions may be invested in common stock of The Hartford or certain other investments. These contributions are matched, up to 3.0% of compensation, by The Hartford. In 2004, The Hartford began allocating a percentage of base salary to the Plan for eligible employees. In 2012, employees whose prior year earnings were less than $110,000 received a contribution of 1.5% of base salary and employees whose prior year earnings were more than $110,000 received a contribution of 0.5% of base salary. The cost to Hartford Life for this plan was approximately $10, $9 and $13 for the years ended December 31, 2012, 2011 and 2010, respectively. Effective January 1, 2013, The Hartford will increase benefits under The Hartford Investment and Savings Plan, its defined contribution 401(k) savings plan, and The Hartford Excess Savings Plan. The Company's contributions will be increased to include a non-elective contribution of 2% of eligible compensation and a dollar-for-dollar matching contribution of up to 6% of eligible compensation contributed by the employee each pay period. Eligible compensation will be expanded to include overtime and bonuses but will be limited to a total of $1,000,000 annually. 15. STOCK COMPENSATION PLANS The Hartford has three primary stock-based compensation plans. The Company is included in these plans and has been allocated compensation expense of $32, $14 and $32 for the years ended December 31, 2012, 2011 and 2010, respectively. The Company's income tax benefit recognized for stock-based compensation plans was $11, $5 and $11 for the years ended December 31, 2012, 2011 and 2010, respectively. The Company capitalized no cost of stock-based compensation. F-57 16. TRANSACTIONS WITH AFFILIATES PARENT COMPANY TRANSACTIONS Transactions of the Company with Hartford Fire Insurance Company, Hartford Holdings and its affiliates relate principally to tax settlements, reinsurance, insurance coverage, rental and service fees, payment of dividends and capital contributions. In addition, an affiliated entity purchased group annuity contracts from the Company to fund structured settlement periodic payment obligations assumed by the affiliated entity as part of claims settlements with property casualty insurance companies and self-insured entities. As of December 31, 2012 and 2011, the Company had $53 and $54 of reserves for claim annuities purchased by affiliated entities. For the years ended December 31, 2012, 2011, and 2010, the Company recorded earned premiums of $28, $12, and $18 for these intercompany claim annuities. In 2008, the Company issued a payout annuity to an affiliate for $2.2 billion of consideration. The Company will pay the benefits associated with this payout annuity over 12 years. Substantially all general insurance expenses related to the Company, including rent and employee benefit plan expenses are initially paid by The Hartford. Direct expenses are allocated to the Company using specific identification, and indirect expenses are allocated using other applicable methods. Indirect expenses include those for corporate areas which, depending on type, are allocated based on either a percentage of direct expenses or on utilization. The Company has issued a guarantee to retirees and vested terminated employees ("Retirees") of The Hartford Retirement Plan for U.S. Employees ("the Plan") who retired or terminated prior to January 1, 2004. The Plan is sponsored by The Hartford. The guarantee is an irrevocable commitment to pay all accrued benefits which the Retiree or the Retiree's designated beneficiary is entitled to receive under the Plan in the event the Plan assets are insufficient to fund those benefits and The Hartford is unable to provide sufficient assets to fund those benefits. The Company believes that the likelihood that payments will be required under this guarantee is remote. In 1990, Hartford Fire guaranteed the obligations of the Company with respect to life, accident and health insurance and annuity contracts issued after January 1, 1990. The guarantee was issued to provide an increased level of security to potential purchasers of HLIC's products. Although the guarantee was terminated in 1997, it still covers policies that were issued from 1990 to 1997. As of December 31, 2012 and 2011, no recoverables have been recorded for this guarantee, as the Company was able to meet these policyholder obligations. REINSURANCE ASSUMED FROM AFFILIATES Prior to June 1, 2009, yen and U.S. dollar based fixed market value adjusted ("MVA") annuity products, written by HLIKK, were sold to customers in Japan. HLIKK, a wholly owned Japanese subsidiary of Hartford Life, Inc., subsequently reinsured in-force and prospective MVA annuities to the Company effective September 1, 2004. As of December 31, 2012 and 2011, $2.1 billion and $2.6 billion, respectively, of the account value had been assumed by the Company. HLAI entered into a reinsurance agreement with HLIKK effective August 31, 2005. HLAI assumed in-force and prospective GMIB riders. Via amendment, effective July 31, 2006, HLAI also assumed GMDB on covered contracts that have an associated GMIB rider in force on or after July 31, 2006. GMIB riders issued prior to April 1, 2005 were recaptured, while GMIB riders issued by HLIKK subsequent to April 1, 2005, continue to be reinsured by HLAI. Additionally, a tiered reinsurance premium structure was implemented. HLAI has three additional reinsurance agreements with HLIKK covering certain variable annuity contracts. Effective September 30, 2007, HLAI assumed 100% of the in-force and prospective GMAB, GMIB and GMDB risks issued by HLIKK. Effective February 29, 2008, HLAI assumed 100% of the in-force and prospective GMIB and GMDB riders issued by HLIKK. Effective October 1, 2008, HLAI assumed 100% of the in-force and prospective GMDB riders issued on or after April 1, 2005 by HLIKK. The GMDB reinsurance is accounted for as a Death Benefit and Other Insurance Benefit Reserves which is not reported at fair value. The liability for the assumed GMDB reinsurance was $22 and $50 and the net amount at risk for the assumed GMDB reinsurance was $2.7 billion and $5.0 billion at December 31, 2012 and 2011, respectively. While the form of the agreement between HLAI and HLIKK for the GMIB business is reinsurance, in substance and for accounting purposes the agreement is a free standing derivative. As such, the reinsurance agreement for the GMIB business is recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income (loss). The fair value of the GMIB liability was $1.8 billion and $3.2 billion at December 31, 2012 and 2011, respectively. Effective November 1, 2010, HLAI entered into a reinsurance agreement with Hartford Life Limited Ireland, ("HLL"), a wholly owned subsidiary of HLAI. Through this agreement, HLL agreed to cede, and HLAI agreed to reinsure, GMDB and GMWB risks issued by HLL on its variable annuity business. The GMDB reinsurance is accounted for as a Death Benefit and Other Insurance Benefit Reserves which is not reported at fair value. The liability for the assumed GMDB reinsurance was $4 and $5 and the net amount at risk for the assumed GMDB reinsurance was $42 and $80 at December 31, 2012 and 2011, respectively. F-58 While the form of the agreements between HLAI and HLIKK, and HLAI and HLL for the GMAB/GMWB business is reinsurance, in substance and for accounting purposes these agreements are free standing derivatives. As such, the reinsurance agreements for the GMAB/GMWB business are recorded at fair value on the Company's Consolidated Balance Sheets, with prospective changes in fair value recorded in net realized capital gains (losses) in net income (loss). The fair value of the GMAB/GMWB liability was $0 and $37 at December 31, 2012 and 2011, respectively. REINSURANCE CEDED TO AFFILIATES Effective October 1, 2009, and amended on November 1, 2010, HLAI, entered into a modco and coinsurance with funds withheld reinsurance agreement with WRR. The agreement provides that HLAI will cede, and WRR will reinsure a portion of the risk associated with direct written and assumed variable annuities and the associated GMDB and GMWB riders, HLAI assumed HLIKK's variable annuity contract and rider benefits, and HLAI assumed HLL's GMDB and GMWB annuity contract and rider benefits. Under modco, the assets and the liabilities, and under coinsurance with funds withheld, the assets, associated with the reinsured business will remain on the consolidated balance sheet of HLIC in segregated portfolios, and WRR will receive the economic risks and rewards related to the reinsured business through modco and funds withheld adjustments. These adjustments are recorded as an adjustment to operating expenses. The impact of this transaction on the Company's Consolidated Statements of Operations is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 --------------------------------------------------------------------------------------------------- Earned premiums (67) (71) (56) Net realized gains (losses) (1) (2,099) 503 546 --------- ------- ------- TOTAL REVENUES (2,166) 432 490 Benefits, losses and loss adjustment expenses (56) (51) (40) Insurance operating costs and other expenses (1,443) 972 (348) --------- ------- ------- TOTAL EXPENSES (1,499) 921 (388) INCOME (LOSS) BEFORE INCOME TAXES (667) (489) 878 Income tax expense (benefit) (234) (166) 308 --------- ------- ------- NET INCOME (LOSS) $(433) $(323) $570 --------- ------- -------
(1) Amounts represent the change in valuation of the derivative associated with this transaction. The Company's Consolidated Balance Sheets include a modco reinsurance (payable)/recoverable and a deposit liability, as well as a net reinsurance recoverable that is comprised of an embedded derivative. The balance of the modco reinsurance (payable)/recoverable, deposit liability and net reinsurance recoverable were $1.3 billion, $527, $0.9 billion, respectively, at December 31, 2012 and $(2.9) billion, $0, $2.6 billion , respectively, at December 31, 2011. CHAMPLAIN LIFE REINSURANCE COMPANY Effective November 1, 2007, HLAI entered into a modco and coinsurance with funds withheld agreement with Champlain Life Reinsurance Company, an affiliate captive insurance company, to provide statutory surplus relief for certain life insurance policies. The Agreement is accounted for as a financing transaction in accordance with U.S. GAAP. A standby unaffiliated third party Letter of Credit supports a portion of the statutory reserves that have been ceded to the Champlain Life Reinsurance Company. 17. RESTRUCTURING AND OTHER COSTS As a result of a strategic business realignment announced in March 2012, The Hartford is currently focusing on its Property & Casualty, Group Benefits and Mutual Funds businesses. In addition, The Hartford implemented restructuring activities in 2011 across several areas aimed at reducing overall expense levels. The Hartford intends to substantially complete the related restructuring activities over the next 12-18 months. For further discussion of The Hartford's strategic business realignment and related business disposition transactions, see Note 1 -- Basis of Presentation and Significant Accounting Policies and Note 2 -- Business Dispositions of Notes to Consolidated Financial Statements. Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through December 31, 2012. Additional costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to December 31, 2012, and asset impairment charges, if any, will be expensed as appropriate. The Company's estimated restructuring and other costs are expected to approximate $139, pre-tax. As The Hartford executes on its operational and strategic initiatives, the Company's estimate of and actual costs incurred for restructuring activities may differ from these estimates. F-59 Restructuring and other costs, pre-tax incurred by the Company in connection with these activities are as follows:
FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------------------------------------------------------- Severance benefits and related costs $93 Professional fees 23 Asset impairment charges 4 ------ TOTAL RESTRUCTURING AND OTHER COSTS $120 ------
There were no restructuring and other costs incurred by the Company in 2011 and 2010. Changes in the accrued restructuring liability balance included in other liabilities in the Company's Consolidated Balance Sheets are as follows:
FOR THE YEAR ENDED DECEMBER 31, 2012 SEVERANCE BENEFITS TOTAL AND ASSET RESTRUCTURING RELATED PROFESSIONAL IMPAIRMENT AND OTHER COSTS FEES CHARGES COSTS --------------------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $ -- $ -- $ -- $ -- Accruals/provisions 93 23 4 120 Payments/write-offs (62) (23) (4) (89) ----- ----- ---- ----- BALANCE, END OF PERIOD $31 $ -- $ -- $31 ----- ----- ---- -----
18. DISCONTINUED OPERATIONS On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. Following the reorganization, the Company will no longer have any significant continuing involvement in HLI's Mutual Funds business. For further discussion of the reorganization of the Mutual Funds business, see Note 1 -- Basis of Presentation and Significant Accounting Policies and Note 7 -- Goodwill of Notes to Consolidated Financial Statements. During the fourth quarter of 2010, the Company completed the sales of its indirect wholly-owned subsidiaries Hartford Investments Canada Corporation ("HICC") and Hartford Advantage Investment, Ltd. ("HAIL"). The Company recognized a net realized capital gain of $41, after-tax, on the sale of HICC and a net realized capital loss of $4, after-tax, on the sale of HAIL. The following table presents the combined amounts related to the operations of the Mutual Funds business, HICC and HAIL which are being reported as discontinued operations in the Consolidated Statements of Operations. The Company does not expect these transactions to have a material impact on the Company's future earnings.
FOR THE YEARS ENDED DECEMBER 31, 2012 2011 2010 -------------------------------------------------------------------------------- REVENUES Fee income and other $526 $569 $616 Net investment income (loss) -- 1 (1) Net realized capital gains -- 1 -- ------ ------ ------ TOTAL REVENUES 526 571 615 BENEFITS, LOSSES AND EXPENSES Insurance operating costs and other expenses 384 374 413 Amortization of DAC 35 47 68 Goodwill impairment 149 -- -- ------ ------ ------ TOTAL BENEFITS, LOSSES AND EXPENSES 568 421 481 INCOME (LOSS) BEFORE INCOME TAXES (42) 150 134 Income tax expense (benefit) (13) 52 48 ------ ------ ------ INCOME (LOSS) FROM OPERATIONS OF DISCONTINUED OPERATIONS, NET OF TAX (29) 98 86 Net realized capital gain on disposal, net of tax -- -- 37 ------ ------ ------ INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX $(29) $98 $123 ------ ------ ------
F-60 19. QUARTERLY RESULTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2012 2011 2012 2011 2012 2011 2012 2011 --------------------------------------------------------------------------------------------------------------------------------- Total revenues $342 $1,022 $2,114 $1,618 $1,278 $2,403 $686 $989 Total benefits, losses and expenses 18 773 2,043 1,398 1,042 3,258 697 782 Income (loss) from continuing operations, net of tax 268 207 69 293 187 (527) 61 173 Income (loss) from discontinued operations, net of tax 20 27 18 27 16 24 (83) 20 Net income (loss) 288 234 87 320 203 (503) (22) 193 Less: Net income (loss) attributable to the noncontrolling interest (1) 1 -- 1 -- (4) 3 2 Net income (loss) attributable to Hartford Life Insurance Company $289 $233 $87 $319 $203 $(499) $(25) $191 ----- ------- ------- ------- ------- ------- ----- -----
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