Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is organized into four divisions: Commercial Markets, Consumer Markets, Wealth Management and Runoff Operations and conducts business principally in eight reporting segments, as well as a Corporate category. Starting in the second quarter of 2012, financial results for the former Individual Annuity segment have been reported in the Life Other Operations segment and segment data for prior reporting periods has been adjusted accordingly. The Company’s reporting segments as of September 30, 2012 are as follows:

Commercial Markets

Property & Casualty Commercial

Property & Casualty Commercial provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the United States (“U.S.”), along with a variety of customized insurance products and risk management services including professional liability, fidelity, surety, and specialty casualty coverages.

Group Benefits

Group Benefits provides employers, associations, affinity groups and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Consumer Markets

Consumer Markets provides standard automobile, homeowners and home-based business coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Consumer Markets also operates a member contact center for health insurance products offered through the AARP Health program.

Wealth Management

Individual Life

Individual Life sells a variety of life insurance products, including variable universal life, universal life, and term life.

Retirement Plans

Retirement Plans provides products and services to corporations pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and products and services to municipalities and not-for-profit organizations under Sections 457 and 403(b) of the Code, collectively referred to as government plans.

Mutual Funds

Mutual Funds offers retail mutual funds, investment-only mutual funds and college savings plans under Section 529 of the Code (collectively referred to as non-proprietary) and proprietary mutual funds supporting insurance products issued by The Hartford.

Runoff Operations

Life Other Operations

Life Other Operations includes the Company's management of certain life operations that have discontinued writing new business encompassing U.S. individual, international (primarily in Japan and Europe) and institutional annuity products and private placement life insurance.

Property & Casualty Other Operations

Property & Casualty Other Operations includes the Company’s management of certain property and casualty operations that have discontinued writing new business and substantially all of the Company’s asbestos and environmental exposures.

Corporate

The Company includes in the Corporate category the Company’s debt financing and related interest expense, as well as other capital raising activities; banking operations; certain fee income and commission expenses associated with sales of non-proprietary products by broker-dealer subsidiaries; and certain purchase accounting adjustments and other charges not allocated to the segments.

3. Segment Information (continued)

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, security transfers and capital contributions. Also, one segment may purchase group annuity contracts from another to fund pension costs and annuities to settle casualty claims. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions.

The following table presents net income (loss) for each reporting segment, as well as the Corporate category.

	Three Months Ended September 30,						Nine Months Ended September 30,
Net income (loss)	2012			2011			2012			2011
Property & Casualty Commercial	$	164		$	53		$	502		$	494
Group Benefits	30			25			83			77
Consumer Markets	94			(16		)	152			(80		)
Individual Life	(259		)	(9		)	(204		)	55
Retirement Plans	(7		)	(23		)	9			9
Mutual Funds	18			24			56			79
Life Other Operations	145			105			344			439
Property & Casualty Other Operations	24			8			36			(135		)
Corporate	(196		)	(107		)	(970		)	(344		)
Net income	$	13		$	60		$	8		$	594

3. Segment Information (continued)

The following table presents revenues by product line for each reporting segment, as well as the Corporate category.

	Three Months Ended September 30,					Nine Months Ended September 30,
Revenues	2012		2011			2012			2011
Earned premiums, fees, and other considerations
Property & Casualty Commercial
Workers’ compensation	$	762	$	721		$	2,232		$	2,071
Property	127		129			378			398
Automobile	148		146			440			437
Package business	290		289			871			857
Liability	142		135			419			404
Fidelity and surety	53		55			156			164
Professional liability	60		78			195			237
Total Property & Casualty Commercial	1,582		1,553			4,691			4,568
Group Benefits
Group disability	426		467			1,308			1,460
Group life and accident	468		501			1,425			1,529
Other	47		48			146			147
Total Group Benefits	941		1,016			2,879			3,136
Consumer Markets
Automobile	632		649			1,894			1,978
Homeowners	280		281			831			847
Total Consumer Markets [1]	912		930			2,725			2,825
Individual Life
Variable life	82		122			254			304
Universal life	112		109			360			324
Term / Other life	13		13			40			37
Total Individual Life	207		244			654			665
Retirement Plans
401(k)	79		82			244			254
Government plans	12		11			37			37
Total Retirement Plans	91		93			281			291
Mutual Funds
Non-Proprietary	133		138			403			461
Proprietary	15		15			44			45
Total Mutual Funds	148		153			447			506
Life Other Operations	593		666			1,792			2,050
Property & Casualty Other Operations	—		—			(2		)	—
Corporate	45		55			142			161
Total earned premiums, fees, and other considerations	4,519		4,710			13,609			14,202
Net investment income:
Securities available-for-sale and other	1,030		1,062			3,197			3,274
Equity securities, trading	710		(1,890		)	1,889			(1,684		)
Total net investment income (loss)	1,740		(828		)	5,086			1,590
Net realized capital gains (losses)	119		575			(202		)	241
Other revenues	64		63			184			188
Total revenues	$	6,442	$	4,520		$	18,677		$	16,221

[1] For the three months ended September 30, 2012 and 2011, AARP members accounted for earned premiums of $679 and $687, respectively. For the nine months ended September 30, 2012 and 2011, AARP members accounted for earned premiums of $2.0 billion and $2.1 billion, respectively.