-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HkFiuEC/aEs35F6RBQCKk94ehDs6UONHrdI9L99cyw3dJUTmkHwUkLYUR8NHCm88 wAJBkR4cop5DV5fT9np/Hg== 0000948572-01-500027.txt : 20010626 0000948572-01-500027.hdr.sgml : 20010626 ACCESSION NUMBER: 0000948572-01-500027 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010625 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD FINANCIAL SERVICES GROUP INC/DE CENTRAL INDEX KEY: 0000874766 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 133317783 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-13958 FILM NUMBER: 1666860 BUSINESS ADDRESS: STREET 1: HARTFORD PLZ CITY: HARTFORD STATE: CT ZIP: 06115 BUSINESS PHONE: 8605475000 MAIL ADDRESS: STREET 1: HARTFORD PLAZA T-15 CITY: HARTFORD STATE: CT ZIP: 06115 FORMER COMPANY: FORMER CONFORMED NAME: ITT HARTFORD GROUP INC /DE DATE OF NAME CHANGE: 19930328 11-K 1 f11-k.txt THE HARTFORD FINANCIAL SERVICES GROUP, INC. ================================================================================ FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission file number 0-19277 A. Full title of Plan and the address of the Plan, if different from that of the issuer named below: THE HARTFORD INVESTMENT AND SAVINGS PLAN B. Name of issuer of the securities held pursuant to the Plan and the address of its principal executive office: THE HARTFORD FINANCIAL SERVICES GROUP, INC. HARTFORD PLAZA, HARTFORD, CONNECTICUT 06115-1900 ================================================================================ THE HARTFORD INVESTMENT AND SAVINGS PLAN CONTENTS DECEMBER 30, 2000 AND 1999 Pages ----- Report of Independent Public Accountants F-1 Statements of Net Assets Available for Benefits as of December 30, 2000 and 1999 F-2 Statements of Changes in Net Assets Available for Benefits for the Years Ended December 30, 2000 and 1999 F-3 Notes to Financial Statements F-4 - F-9 Schedule of Assets Held for Investment Purposes as of December 30, 2000 F-10 - F-12 Schedule of Reportable Transactions for the Year Ended December 30, 2000 F-13 Signature F-14 Exhibit 1 - Consent of Independent Public Accountants F-15 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To The Hartford Financial Services Group, Inc.: We have audited the accompanying Statements of Net Assets Available for Benefits of The Hartford Investment and Savings Plan as of December 30, 2000 and 1999, and the related Statements of Changes in Net Assets Available for Benefits for the years then ended. These financial statements and the schedules referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of The Hartford Investment and Savings Plan as of December 30, 2000 and 1999, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Hartford, Connecticut June 18, 2001 F-1
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 30, 2000 AND 1999 ($ IN THOUSANDS) - ----------------------------------------------------------------------------------------------------------------------------------- 2000 1999 - ----------------------------------------------------------------------------------------------------------------------------------- NON- NON- MEMBER MEMBER MEMBER MEMBER TOTAL DIRECTED DIRECTED TOTAL DIRECTED DIRECTED - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford Financial Services Group, Inc. common stock (13,479,052 and 13,908,210 shares) $ 951,958 $ 727,218 $ 224,740 $ 654,555 $ 492,880 $ 161,675 Hartford Life, Inc. common stock (1999 - 1,634,984 shares) -- -- -- 70,304 40,003 30,301 Standard & Poor's 500 Index Portfolio 253,439 -- 253,439 298,957 -- 298,957 Mutual funds 298,638 -- 298,638 204,421 -- 204,421 Pooled temporary investments 33,024 14,223 18,801 16,523 9,968 6,555 Investment in group annuity contracts, at contract value 319,639 -- 319,639 285,834 -- 285,834 Loans receivable 35,429 -- 35,429 37,889 -- 37,889 Dividends and interest receivable 6,584 3,537 3,047 5,002 2,651 2,351 Contributions receivable 3,676 1,211 2,465 3,533 1,180 2,353 ---------------------------------------------------------------------------------- TOTAL ASSETS 1,902,387 746,189 1,156,198 1,577,018 546,682 1,030,336 ---------------------------------------------------------------------------------- LIABILITIES Interfund transfers pending -- 573 (573) -- 167 (167) Unsettled net security purchases (sales) 3,720 (189) 3,909 1,515 (280) 1,795 ---------------------------------------------------------------------------------- TOTAL LIABILITIES 3,720 384 3,336 1,515 (113) 1,628 ---------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,898,667 $ 745,805 $ 1,152,862 $ 1,575,503 $ 546,795 $ 1,028,708 - -------------------------------------------------==================================================================================
The accompanying notes are an integral part of these financial statements. F-2
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED DECEMBER 30, 2000 AND 1999 ($ IN THOUSANDS) - ----------------------------------------------------------------------------------------------------------------------------------- 2000 1999 - ----------------------------------------------------------------------------------------------------------------------------------- NON- NON- MEMBER MEMBER MEMBER MEMBER TOTAL DIRECTED DIRECTED TOTAL DIRECTED DIRECTED - ----------------------------------------------------------------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Net realized and unrealized gains (losses) $ 304,637 $ 267,618 $ 37,019 $ (53,745) $ (99,677) $ 45,932 Dividends and interest 61,752 11,254 50,498 40,281 10,541 29,740 ---------------------------------------------------------------------------------- Total investment income (loss) 366,389 278,872 87,517 (13,464) (89,136) 75,672 Interest on participant loans 3,205 -- 3,205 3,555 162 3,393 Repayment of participant loans -- -- -- -- 1,354 (1,354) Employee contributions 63,550 -- 63,550 60,873 -- 60,873 Employer contributions, net of forfeitures 26,607 25,894 713 25,465 24,944 521 Rollovers 8,119 -- 8,119 8,302 -- 8,302 Other, net 1,043 (11,814) 12,857 (141) (5,784) 5,643 ---------------------------------------------------------------------------------- TOTAL ADDITIONS (DEDUCTIONS) 468,913 292,952 175,961 84,590 (68,460) 153,050 ---------------------------------------------------------------------------------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers -- (42,139) 42,139 -- (14,107) 14,107 Loans to participants -- (650) 650 -- (859) 859 Administrative expenses (3,276) (1,086) (2,190) (2,765) (1,111) (1,654) Benefits paid to members (142,473) (50,067) (92,406) (106,980) (38,054) (68,926) ---------------------------------------------------------------------------------- TOTAL DEDUCTIONS (145,749) (93,942) (51,807) (109,745) (54,131) (55,614) ---------------------------------------------------------------------------------- NET INCREASE (DECREASE) 323,164 199,010 124,154 (25,155) (122,591) 97,436 ---------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 1,575,503 546,795 1,028,708 1,600,658 669,386 931,272 ---------------------------------------------------------------------------------- END OF YEAR $ 1,898,667 $ 745,805 $ 1,152,862 $ 1,575,503 $ 546,795 $ 1,028,708 - -------------------------------------------------==================================================================================
The accompanying notes are an integral part of these financial statements. F-3 THE HARTFORD INVESTMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 30, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS) NOTE 1. DESCRIPTION OF THE PLAN The Hartford Financial Services Group, Inc., a Delaware corporation, and its consolidated subsidiaries ("The Hartford" or the "Company") provide life and property and casualty insurance to both individual and commercial customers in the United States and internationally. On June 27, 2000, The Hartford acquired all of the outstanding shares of Hartford Life, Inc. ("Hartford Life" or "HLI") that the Company did not already own ("The HLI Repurchase"). As a result, HLI became a wholly-owned subsidiary of The Hartford. While Hartford Life continues to exist as a company, Hartford Life stock no longer is listed or traded on the New York Stock Exchange. Proceeds received by The Hartford Investment and Savings Plan (the "Plan") from The HLI Repurchase of $70,888 were used by the trustee to purchase shares of The Hartford common stock. All of the assets that were remaining in Hartford Life Company Stock Fund, after the purchase of the shares was completed, were transferred to Hartford Financial Services Group, Inc. Stock Fund. After the purchase of HLI shares was completed, future employee contributions were redirected to Hartford Financial Services Group, Inc. Stock Fund. Information with regard to eligibility, contributions, distributions, vesting, trustees, withdrawals, restoration, loans, fund redistribution and definitions of all capitalized terms are contained in the Plan's information document, which has been distributed to the participants. General - ------- The Plan is a defined contribution plan covering all full-time and some part-time employees of the Company who have six months or more of service and who have attained age 19. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Trust, as defined in the Plan document, is the aggregate funds held by the Trustee, Bankers Trust Company, under the trust agreement established for the purposes of this Plan. Contributions - ------------- Plan members may generally elect to save 2% to 16% of base salary. Members may designate their savings as before-tax, after-tax or a combination of both. Members who are highly compensated employees may be limited to less than 16% due to the operation of certain tests required under the Internal Revenue Code of 1986, as amended (the "Code"). An amount equal to 50% of a member's Basic Savings is matched by the Company. Basic Savings are contributions which are not in excess of the first 6% of base salary. Members' savings in excess of 6% of base salary are supplemental savings that are not matched by Company contributions. In addition, the Company allocates 0.5% of base salary to the Floor Company Contribution Account of each eligible employee. Matching Company contributions and Floor Company contributions are invested in Hartford Financial Services Group, Inc. Stock Fund. On December 30, 2000 for the 2001 Plan year and December 30, 1999 for the 2000 Plan year, the Company guaranteed a fixed minimum contribution (based on a percentage of the amount of employer contributions normally made) that represents the employee salary deferral contributions and matching contributions for the subsequent Plan year. If actual contributions are less than the guaranteed fixed minimum amount at the end of the Plan year, an additional matching contribution would be made to the participants. The minimum contribution was met for the 2000 Plan year. F-4 NOTES TO FINANCIAL STATEMENTS (CONTINUED) Administrative Costs - -------------------- The Trust, as defined by the Plan, pays for the administrative expenses of the Plan up to 0.25% of the market value of Trust assets. The Company continues to pay certain Plan administrative expenses which cannot be paid by the Trust. Member Accounts - --------------- Each member's account is credited with that member's contributions and allocations of (a) the Company's contribution and (b) Plan earnings, and is charged with an allocation of administrative expenses. Allocations are based on member earnings or account balances, as defined in the Plan document. The benefit to which a member is entitled is the benefit that can be provided from that member's vested account. Vesting - ------- Vesting in Company-matched contributions begins one year after employment at 20% and increases 20% each consecutive year until the fifth consecutive year of employment when 100% is vested. Notwithstanding the foregoing statement, a member becomes fully vested in such member's Company contribution account upon retirement, disability, death, or upon reaching age 65, or the complete discontinuance of Company contributions or upon termination of the Plan. Floor contributions are 100% vested when allocated to each member's account. Investment Options - ------------------ Contributions of member savings are invested in any one or more of the funds listed below in multiples of 1%, as elected by the member. [1], [2] HARTFORD FINANCIAL This fund's investment objective is to SERVICES GROUP, INC. seek long-term capital appreciation by STOCK FUND investing in the common stock of The Hartford. [1],[3] HARTFORD LIFE COMPANY This fund's investment objective was to STOCK FUND seek long-term capital appreciation by investing in the class A common stock of Hartford Life, Inc. [1] INDEX FUND This fund's investment objective is to seek investment results that track the overall performance of the Standard & Poor's ("S&P") 500 Stock Index by investing in stocks in the S&P 500 Stock Index. [1] STABLE VALUE FUND This fund's investment objective is to seek a stable and predictable rate of return and preservation of capital by investing in group annuity contracts issued by a diversified group of high-quality life insurance companies, which may include an affiliate, Hartford Life, deposit agreements issued by a diversified group of high-quality banks, U.S. government obligations and asset-backed securities. [1] ADVISERS FUND This fund's investment objective is to seek long-term total return by investing primarily in the stocks of U.S. companies, bonds and other debt securities, and money market instruments. [1] BOND INCOME STRATEGY This fund's investment objective is to FUND seek a high level of current income consistent with a competitive total return as compared with bond funds with similar investment objectives and policies by investing primarily in investment-grade bonds. [1] MONEY MARKET FUND This fund's investment objective is to seek maximum current income consistent with liquidity and preservation of capital by investing in cash, cash equivalents and high-quality debt securities. F-5 NOTES TO FINANCIAL STATEMENTS (CONTINUED) [1] DIVIDEND AND GROWTH This fund's investment objective is to FUND seek current income and growth of capital by investing primarily in large, well-known U.S. companies that pay above-average dividends. [1] INTERNATIONAL This fund's investment objective is to OPPORTUNITIES FUND seek long-term growth of capital by investing primarily in the stocks of large non-U.S. companies. [1] CAPITAL APPRECIATION FUND This fund's investment objective is to seek capital appreciation by investing primarily in the stocks of small, medium and large U.S. companies. [1] SMALL COMPANY FUND This fund's investment objective is to seek capital appreciation by investing primarily in stocks of U.S. companies with market capitalization of less than $2 billion that the portfolio manager believes have above-average earnings growth potential. [1] MIDCAP FUND This fund's investment objective is to seek capital appreciation by investing primarily in stock with market capitalization in the range represented by the S&P MidCap 400 Index. [1] HIGH YIELD FUND This fund's investment objective is to seek high current income with growth of capital as a secondary consideration by investing primarily in securities considered to be below investment grade quality. [1] GLOBAL LEADERS FUND This fund's investment objective is to seek growth of capital by investing in stocks of U.S. and non-U.S. companies that are leaders in their industries as indicated by an established market presence and a strong global, regional, or country competitive position. [1],[4] GLOBAL HEALTH FUND This fund's investment objective is to seek long-term capital appreciation by investing at least 80% of its total assets in the equity securities of health care companies worldwide. [1],[4] GLOBAL TECHNOLOGY FUND This fund's investment objective is to seek long-term capital appreciation by investing at least 80% of its total assets in the equity securities of technology companies worldwide. [1], [4] STOCK FUND This fund's investment objective is to seek long-term capital appreciation with income as a secondary consideration by investing in stocks of U.S. and non-U.S. companies. [1] Indicates party-in-interest with The Hartford or certain of its subsidiaries. See Note 8 for further discussion. [2] An amendment effective January 1, 2000 renamed the fund from the former "Hartford Company Stock Fund". [3] Terminated on August 3, 2000. [4] Became effective September 1, 2000. Participant Loans - ----------------- Members may borrow from their fund accounts a minimum of $1 to a maximum equal to the lesser of $50 or 50 % of their vested account balances. Loan transactions are treated as transfers from (to) the investment funds to (from) the loan fund. Loan terms range from one to five years, or up to 15 years for the purchase of a primary residence. The loan is secured by the balance in the member's account and bears interest at the prime rate (as published in the Wall Street Journal) plus 1% and remains fixed for the term of the loan. The interest rate is determined quarterly. F-6 NOTES TO FINANCIAL STATEMENTS (CONTINUED) Payment of Benefits - ------------------- On termination of service due to death, disability, retirement, or other reasons, members or their designated beneficiaries may elect to receive either a lump sum amount equal to the value of the vested interest in their respective accounts or, subject to certain conditions, annual installments over a period not greater than twenty years. Members or their designated beneficiaries may also elect to defer distributions subject to certain conditions. Forfeitures - ----------- Forfeitures of the nonvested portion of any member's Company contributions are applied to reduce future Company contributions. Forfeitures were immaterial for the years ended December 30, 2000 and 1999. NOTE 2. ACCOUNTING POLICIES The financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States and the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA requires management of the Plan to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. The Accounting Standards Executive Committee issued Statement of Position 99-3, "Accounting For and Reporting of Certain Defined Contribution Plan Investments and Other Disclosure Matters", which eliminates the requirement for a defined contribution plan to disclose member directed investment programs, and was adopted for the 1999 Plan year financial statements. NOTE 3. INVESTMENTS The following investments represented 5 % or more of the Plan's net assets.
DECEMBER 30, 2000 1999 ----------------------------------------------------------------------------------- ---------------- ---------------- The Hartford Financial Services Group, Inc. common stock (13,479,052 and 13,908,210 shares) $ 951,958* $ 654,555* S&P 500 Index Portfolio-Hartford GA-6226 253,439 298,957 Stable Value Fund - group annuity contracts 319,639 285,834 ----------------------------------------------------------------------------------- -- ------------- -- ------------- * - Includes non-member directed assets
For the years ended December 30, 2000 and 1999, the Plan's investments appreciated (depreciated) as follows:
DECEMBER 30, 2000 1999 ----------------------------------------------------------------------------------- -- ------------- -- ------------- The Hartford Financial Services Group, Inc. common stock $ 338,985 $ (115,737) Hartford Life, Inc. common stock (For 2000, for the period through June 27, 2000) 12,944 (22,016) Standard & Poor's 500 Index Portfolio (25,045) 50,819 Mutual funds (22,247) 33,189 ----------------------------------------------------------------------------------- -- ------------- -- ------------- Net realized and unrealized gains (losses) $ 304,637 $ (53,745) ----------------------------------------------------------------------------------- -- ------------- -- -------------
F-7 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 4. VALUATION OF INVESTMENTS Plan investments, except group annuity contracts, are reported at fair value. The fair value of the underlying common stock of Hartford Financial Services Group, Inc. Stock Fund and Hartford Life Company Stock Fund is based on quoted market prices. Interests in mutual funds and pooled investment funds are valued at the redemption price established by the trustee or the investment manager of the respective fund. The Plan has entered into numerous traditional and synthetic group annuity contracts primarily with insurance carriers. These contracts, which are included in the Stable Value Fund, are fully benefit responsive and are included in the financial statements at contract value. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expenses. As of December 30, 2000, the estimated fair value of the group annuity contracts was $319,639. The average yield and weighted average crediting interest rate on these contracts was 6.56% and 6.80%, respectively, for the year ended December 30, 2000, and 6.20% and 6.16%, respectively, for the year ended December 30, 1999. Crediting interest rate resets are generally made quarterly for synthetic contracts and are reset based on formulas which may use market value, book value, duration and yield. A synthetic group annuity contract is an investment contract that simulates the performance of a traditional group annuity contract through the use of financial instruments. A key difference between a synthetic group annuity contract and a traditional group annuity contract is that the Plan owns the assets underlying the synthetic group annuity contract. Traditional group annuity contracts have fixed crediting interest rates. NOTE 5. FEDERAL INCOME TAX On February 25, 1998, a favorable determination was received from the Internal Revenue Service as to the tax-qualified status of the Plan. While the Plan has been amended subsequent to the receipt of the determination letter, the Plan administrator believes that the Plan is designed and is being operated in compliance with applicable provisions of the Code and other applicable law, and there have been no amendments, changes or events, which have occurred, which could affect the Plan's qualified status. Accordingly, no provision for income taxes has been made in the Plan's financial statements. NOTE 6. PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to suspend, reduce, or partially or completely discontinue its contributions at any time and to terminate the Plan, the trust agreement and the Trust hereunder subject to the provisions of ERISA. In the event of termination or partial termination of the Plan or complete discontinuance of contributions, the interest of affected members shall automatically become nonforfeitable. NOTE 7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 As of December 30, 2000 and 1999, the following is a reconciliation of net assets available for plan benefits according to the accompanying financial statements to Form 5500:
2000 1999 ----------------------------------------------------------------------------------- ---------------- ---------------- Net assets available for plan benefits per financial statements $ 1,898,667 $ 1,575,503 Amounts allocated to withdrawing members (1,291) (378) ----------------------------------------------------------------------------------- -- ------------- -- ------------- Net assets available for plan benefits per Form 5500 $ 1,897,376 $ 1,575,125 ----------------------------------------------------------------------------------- -- ------------- -- -------------
F-8 NOTES TO FINANCIAL STATEMENTS (CONTINUED) The following is a reconciliation of benefits paid to members according to the accompanying financial statements to Form 5500:
2000 1999 ----------------------------------------------------------------------------------- ---------------- ---------------- Benefits paid to members per financial statements $ 142,473 $ 106,980 Amounts allocated to withdrawing members at end of year 1,291 378 Amounts allocated to withdrawing members at beginning of year (378) (254) ----------------------------------------------------------------------------------- -- ------------- -- ------------- Benefits paid to members per Form 5500 $ 143,386 $ 107,104 ----------------------------------------------------------------------------------- -- ------------- -- -------------
Amounts allocated to withdrawing members are recorded on Form 5500 for benefit claims that have been processed and approved for payment prior to the end of the Plan year but not paid as of that date. NOTE 8. PARTY-IN-INTEREST TRANSACTIONS Certain Plan investments are held in funds managed by Bankers Trust Company, the Trustee, as defined by the Plan, and certain subsidiaries of The Hartford. Fees paid by the Plan for Trustee, custodial and investment management services provided by Bankers Trust Company amounted to $615 and $561 for the years ended December 30, 2000 and 1999, respectively. Fees paid by the Plan to certain subsidiaries of the Company for investment management services and the issuance of group annuity contracts amounted to $76 and $85 for the years ended December 30, 2000 and 1999, respectively. In addition, certain Plan investments are shares of The Hartford common stock for the 2000 and 1999 Plan years and Hartford Life common stock for the 1999 Plan year only. Since The Hartford is the Plan Sponsor, these transactions qualify as party-in-interest transactions. F-9
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 30, 2000 ($ IN THOUSANDS) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF (E) CURRENT (A) (B) IDENTITY OF PARTY INTEREST, COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Hartford Financial Services Group, Inc. Stock Fund -------------------------------------------------- * The Hartford Financial Services Group, Inc. Hartford Financial Services Group, Inc. common stock $ 447,937 $ 951,856 * Bankers Trust Company BT Pyramid Directed Account Cash Fund - STIF 18,617 18,617 --------------- SUBTOTAL 970,473 --------------- Stock Fund ---------- * The Hartford Financial Hartford Mutual Funds, Inc. Stock Fund Services Group, Inc. *** 1,139 --------------- SUBTOTAL 1,139 --------------- Clearing Account ---------------- * Bankers Trust Company BT Pyramid Directed Account *** 1,189 * The Hartford Financial Services Group, Inc. Hartford Financial Services Group, Inc. common stock *** 102 --------------- SUBTOTAL 1,291 --------------- Index Fund ---------- * Hartford Life Insurance Company S&P 500 Index Portfolio-Hartford GA - 6226, S/A BI *** 253,439 --------------- SUBTOTAL 253,439 --------------- Stable Value Fund ----------------- * Bankers Trust Company BT Pyramid Discretionary Account Cash Fund - STIF *** 12,479 Business Mens Assurance Group Annuity Contract #1412, 7.64%, 11/30/2004 *** 9,284 Caisse des Depots et Consignations Group Annuity Contract #BR302-01, 6.98%, 01/01/2002 *** 11,579 Continental Assurance Company Group Annuity Contract #24022, 6.58%, 12/31/2001 *** 3,153 Jackson National Life Insurance Company Group Annuity Contract #1226, 6.04%, 8/27/2001 *** 2,512 Monumental Life Insurance Company Group Annuity Contract #ADA00212TR, 6.69% ** *** 61,536 Morgan Guaranty Trust Company Group Annuity Contract #AITTH01, 6.77% ** *** 85,787 Principal Life Insurance Company Group Annuity Contract #GA 4-36623, 5.78%, 01/21/2004 *** 10,038 * Indicates party-in-interest. ** These synthetic portfolios have no final maturity. Final maturity is based on the underlying assets in the bond portfolios. *** Cost information not required for member directed investments.
The accompanying financial statements are an integral part of this schedule. F-10
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 30, 2000 ($ IN THOUSANDS) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF (E) CURRENT (A) (B) IDENTITY OF PARTY INTEREST, COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Protective Life Insurance Company Group Annuity Contract #GA1628, 7.34%, 5/30/2003 $ *** $ 3,221 Sun America Life Insurance Company Group Annuity Contract #4670, 6.81%, 10/16/2001 *** 1,555 Transamerica Insurance Company Group Annuity Contract #TDA76592TR, 6.98%, 1/25/2015 *** 79,295 Union Bank of Switzerland Group Annuity Contract #3024, 6.73% ** *** 51,679 --------------- SUBTOTAL 332,118 --------------- Advisers Fund ------------- * The Hartford Financial Hartford Mutual Funds, Inc. Advisers Fund #BL416645786 Services Group, Inc. *** 62,881 --------------- SUBTOTAL 62,881 --------------- Bond Income Strategy Fund ------------------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Bond Income Strategy Fund *** 9,255 --------------- SUBTOTAL 9,255 --------------- Money Market Fund ----------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Money Market Fund *** 17,693 --------------- SUBTOTAL 17,693 --------------- Dividend and Growth Fund ------------------------ * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Dividend and Growth Fund *** 20,203 --------------- SUBTOTAL 20,203 --------------- International Opportunities Fund -------------------------------- * The Hartford Financial Hartford Mutual Funds, Inc. International Opportunities Fund Services Group, Inc. *** 15,335 --------------- SUBTOTAL 15,335 --------------- Capital Appreciation Fund ------------------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Capital Appreciation Fund *** 75,832 --------------- SUBTOTAL 75,832 --------------- * Indicates party-in-interest. ** These synthetic portfolios have no final maturity. Final maturity is based on the underlying assets in the bond portfolios. *** Cost information not required for member directed investments.
The accompanying financial statements are an integral part of this schedule. F-11
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 30, 2000 ($ IN THOUSANDS) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF (E) CURRENT (A) (B) IDENTITY OF PARTY INTEREST, COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Small Company Fund ------------------ * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Small Company Fund $ *** $ 28,757 -------------- SUBTOTAL 28,757 -------------- MidCap Fund ----------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. MidCap Fund *** 47,206 -------------- SUBTOTAL 47,206 -------------- High Yield Fund --------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. High Yield Fund *** 1,613 -------------- SUBTOTAL 1,613 -------------- Global Leaders Fund ------------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Global Leaders Fund *** 10,134 -------------- SUBTOTAL 10,134 -------------- Global Health Fund ------------------ * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Global Health Fund *** 3,295 -------------- SUBTOTAL 3,295 -------------- Global Technology Fund ---------------------- * The Hartford Financial Services Group, Inc. Hartford Mutual Funds, Inc. Global Technology Fund *** 5,295 -------------- SUBTOTAL 5,295 -------------- Bankers Trust Company Cash Fund-STIF ------------------------------------ * Bankers Trust Company BT Pyramid Directed Account Cash Fund-STIF *** 12 * Bankers Trust Company BT Pyramid Discretionary Account Cash Fund-STIF *** 727 -------------- SUBTOTAL 739 -------------- Loan Fund --------- * Loans to Participants Loans Receivable from Participants, maturing at various dates bearing interest at rates from 7.0% - 11.5% N/A 35,429 -------------- SUBTOTAL 35,429 -------------- TOTAL $ 1,892,127 ============== * Indicates party-in-interest. ** These synthetic portfolios have no final maturity. Final maturity is based on the underlying assets in the bond portfolios. *** Cost information not required for member directed investments.
The accompanying financial statements are an integral part of this schedule. F-12
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 30, 2000 ($ IN THOUSANDS) (C) (D) (E) (F) (A) (B) PURCHASE SELLING LEASE EXPENSE IDENTITY OF PARTY DESCRIPTION OF ASSET PRICE PRICE RENTAL INCURRED - ----------------------------------------------------------------------------------------------------------------------- Hartford Life, Inc. Hartford Life Company Stock Fund $ -- $ 100,157 $ -- $ -- The Hartford Financial The Hartford Financial Services Services Group, Inc. Group, Inc. common stock -- 195,460 -- -- The Hartford Financial The Hartford Financial Services Services Group, Inc. Group, Inc. common stock 89,361 -- -- -- - -----------------------------------------------------------------------------------------------------------------------
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 30, 2000 ($ IN THOUSANDS) (continued) (H) (G) CURRENT VALUE OF (I) (A) (B) COST OF ASSETS ON NET IDENTITY OF PARTY DESCRIPTION OF ASSET ASSEST TRANSACTION DATE GAIN - --------------------------------------------------------------------------------------------------------------- Hartford Life, Inc. Hartford Life Company Stock Fund $ 95,053 $ 100,157 $ 5,104 The Hartford Financial The Hartford Financial Services Services Group, Inc. Group, Inc. common stock 97,756 195,460 97,704 The Hartford Financial The Hartford Financial Services Services Group, Inc. Group, Inc. common stock 89,361 89,361 -- - ---------------------------------------------------------------------------------------------------------------
The accompanying financial statements are an integral part of this schedule. F-13 SIGNATURE PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE PENSION FUND TRUST AND INVESTMENT COMMITTEE OF THE HARTFORD INVESTMENT AND SAVINGS PLAN HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED HEREUNTO DULY AUTHORIZED. THE HARTFORD INVESTMENT AND SAVINGS PLAN ---------------------------------------- (NAME OF PLAN) BY: /S/ FRANCIS A. DORION -------------------------------------- (FRANCIS A. DORION, PLAN ADMINISTRATOR) JUNE 18, 2001 - ------------- (DATE) F-14 EXHIBIT 1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS To The Hartford Financial Services Group, Inc.: As independent public accountants, we hereby consent to the incorporation of our report included in this Form 11-K into the Company's previously filed registration statement on Form S-8 (Registration No. 33-80663). ARTHUR ANDERSEN LLP Hartford, Connecticut June 18, 2001 -----END PRIVACY-ENHANCED MESSAGE-----