-----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, BUaDJlETc/HTGfIl0okdn2Pf/4Wym7Yk5KkQqkpbcD1ogLXpum4EZJiM2g6x9JGw Hw4qnSYDF1qaJ8X2i1x3Cw== 0000948572-98-000030.txt : 19990902 0000948572-98-000030.hdr.sgml : 19990902 ACCESSION NUMBER: 0000948572-98-000030 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971230 FILED AS OF DATE: 19980629 DATE AS OF CHANGE: 19990901 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD FINANCIAL SERVICES GROUP INC/DE CENTRAL INDEX KEY: 0000874766 STANDARD INDUSTRIAL CLASSIFICATION: 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: 98656168 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 THE HARTFORD FINANCIAL SERVICES GROUP, INC. ================================================================================ 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 period from January 1, 1997 to December 30, 1997 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 Pages Report of Independent Public Accountants F-1 Statement of Net Assets Available for Benefits With Fund Information as of December 30, 1997 F-2, F-3 Statement of Net Assets Available for Benefits With Fund Information as of December 31, 1996 F-4 Statement of Changes in Net Assets Available for Benefits With Fund Information for the Period from January 1, 1997 to December 30, 1997 F-5, F-6 Statement of Changes in Net Assets Available for Benefits With Fund Information for the Year Ended December 31, 1996 F-7 Notes to Financial Statements F-8 - F-12 Item 27a - Schedule of Assets Held for Investment Purposes - Part I as of December 30, 1997 F-13 - F-17 Signature F-18 Exhibit 1 - Consent of Independent Public Accountants F-19 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, 1997 and December 31, 1996, and the related statements of changes in net assets available for benefits for the period from January 1, 1997 to December 30, 1997 and the year ended December 31, 1996. These financial statements and the schedules referred to below are the responsibility of the Plan Administrator. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. 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, 1997 and December 31, 1996, and the changes in net assets available for benefits for the period from January 1, 1997 to December 30, 1997 and the year ended December 31, 1996, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules on pages F-13 through F-17 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 26, 1998 F-1
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) - - ----------------------------------------------------------------------------------------------------------------- NON-MEMBER | DIRECTED | | MEMBER DIRECTED - - ----------------------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------------------- THE HARTFORD THE HARTFORD COMPANY COMPANY STABLE TOTAL STOCK FUND STOCK FUND INDEX FUND VALUE FUND - - ----------------------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford common stock: 5,157,875 shares $ 477,103 $ 359,736 $ 117,367 $ -- $ -- Hartford Life common stock: 385 shares 16,928 -- -- -- -- ITT Corporation common stock: 2,534,944 shares 209,450 -- -- -- -- ITT Industries, Inc. common stock: 2,624,437 shares 79,881 -- -- -- -- Standard & Poor's 500 Index Portfolio 191,181 -- -- 191,181 -- Mutual funds 81,205 -- -- -- -- Pooled temporary investments 37,317 7,107 2,319 -- 14,255 Investment in group annuity contracts, at contract value 249,619 -- -- -- 249,619 Loans receivable 37,973 -- -- -- -- Dividends and interest receivable 2,636 1,590 519 -- 68 Contributions receivable 3,086 974 318 558 555 Unsettled net security sales (purchases) 896 -- -- 31 -- -------------------------------------------------------------------- TOTAL ASSETS 1,387,275 369,407 120,523 191,770 264,497 -------------------------------------------------------------------- LIABILITIES Interfund transfers pending -- 517 168 31 (1,011) Other liabilities 21 -- -- 36 -- -------------------------------------------------------------------- TOTAL LIABILITIES 21 517 168 67 (1,011) NET ASSETS AVAILABLE FOR BENEFITS $ 1,387,254 $ 368,890 $ 120,355 $ 191,703 $ 265,508 ==================================================================== The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ------------------------------------------------------------------------------------------------- - - ------------------------------------------------------------------------------------------------- BOND INCOME BALANCED STRATEGY MONEY FUND ADVISERS FUND FUND MARKET FUND - - ------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford common stock: 5,157,875 shares $ -- $ -- $ -- $ -- Hartford Life common stock: 385 shares -- -- -- -- ITT Corporation common stock: 2,534,944 shares -- -- -- -- ITT Industries, Inc. common stock: 2,624,437 shares -- -- -- -- Standard & Poor's 500 Index Portfolio -- -- -- -- Mutual funds -- 38,574 2,697 2,444 Pooled temporary investments -- -- -- -- Investment in group annuity contracts, at contract value -- -- -- -- Loans receivable -- -- -- -- Dividends and interest receivable -- -- -- -- Contributions receivable -- 162 14 9 Unsettled net security sales (purchases) -- 26 (26) (29) ---------------------------------------------------- TOTAL ASSETS -- 38,762 2,685 2,424 ---------------------------------------------------- LIABILITIES Interfund transfers pending -- 26 (26) (29) Other liabilities -- -- -- (11) ---------------------------------------------------- TOTAL LIABILITIES -- 26 (26) (40) NET ASSETS AVAILABLE FOR BENEFITS $ -- $ 38,736 $ 2,711 $ 2,464 ==================================================== The accompanying notes are an integral part of these financial statements.
F-2
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ----------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ----------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------- DIVIDEND & INTERNATIONAL CAPITAL SMALL GROWTH FUND OPPORTUNITIES APPRECIATION COMPANY FUND FUND FUND - - ----------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford common stock: 5,157,875 shares $ -- $ -- $ -- $ -- Hartford Life common stock: 385 shares -- -- -- -- ITT Corporation common stock: 2,534,944 shares -- -- -- -- ITT Industries, Inc. common stock: 2,624,437 shares -- -- -- -- Standard & Poor's 500 Index Portfolio -- -- -- -- Mutual funds 7,544 4,305 17,899 7,742 Pooled temporary investments -- -- -- -- Investment in group annuity contracts, at contract value -- -- -- -- Loans receivable -- -- -- -- Dividends and interest receivable -- -- -- -- Contributions receivable 54 37 129 60 Unsettled net security sales (42) (2) (47) (43) (purchases) ---------------------------------------------------------- TOTAL ASSETS 7,556 4,340 17,981 7,759 ---------------------------------------------------------- LIABILITIES Interfund transfers pending (42) (2) (47) (43) Other liabilities -- -- -- -- ---------------------------------------------------------- TOTAL LIABILITIES (42) (2) (47) (43) NET ASSETS AVAILABLE FOR BENEFITS $ 7,598 $ 4,342 $ 18,028 $ 7,802 ========================================================== The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ------------------------------------------------------------------------------------------------------------ MEMBER DIRECTED - - ------------------------------------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------------------------------------ HARTFORD LIFE ITT CORPORATION ITT INDUSTRIES COMPANY STOCK COMPANY STOCK COMPANY STOCK FUND FUND FUND LOAN FUND - - ------------------------------------------------------------------------------------------------------------ ASSETS Investments, at fair value: The Hartford common stock: 5,157,875 shares $ -- $ -- $ -- $ -- Hartford Life common stock: 385 shares 16,928 -- -- -- ITT Corporation common stock: 2,534,944 shares -- 209,450 -- -- ITT Industries, Inc. common stock: 2,624,437 shares -- -- 79,881 -- Standard & Poor's 500 Index Portfolio -- -- -- -- Mutual funds -- -- -- -- Pooled temporary investments 69 9,643 3,924 -- Investment in group annuity contracts, at contract value -- -- -- -- Loans receivable -- -- -- 37,973 Dividends and interest receivable 1 43 415 -- Contributions receivable 216 -- -- -- Unsettled net security sales 97 931 -- -- (purchases) ----------------------------------------------------------------- TOTAL ASSETS 17,311 220,067 84,220 37,973 ----------------------------------------------------------------- LIABILITIES Interfund transfers pending 73 312 100 (27) Other liabilities -- -- -- (4) ----------------------------------------------------------------- TOTAL LIABILITIES 73 312 100 (31) NET ASSETS AVAILABLE FOR BENEFITS $ 17,238 $ 219,755 $ 84,120 $ 38,004 ================================================================= The accompanying notes are an integral part of these financial statements.
F-3
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 31, 1996 ($ IN THOUSANDS) - - -------------------------------------------------------------------------------------------------------------------- NON-MEMBER | DIRECTED | | MEMBER DIRECTED - - -------------------------------------------------------------------------------------------------------------------- - - -------------------------------------------------------------------------------------------------------------------- THE HARTFORD THE HARTFORD COMPANY COMPANY STABLE VALUE TOTAL STOCK FUND STOCK FUND INDEX FUND FUND - - -------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford common stock: 4,759,452 shares $ 321,263 $ 240,305 $ 80,958 $ -- $ -- ITT Corporation common stock: 3,594,381 shares 155,906 -- -- -- -- ITT Industries, Inc. common stock: 3,597,377 shares 88,136 -- -- -- -- Investment in securities of unaffiliated issuers 197,028 2,989 1,007 145,009 18,197 Investment in group annuity contracts, at contract value 248,155 -- -- -- 248,155 Dividends and interest receivable 4,080 1,492 502 42 1,377 Loans receivable 24,821 -- -- -- -- --------------------------------------------------------------------- TOTAL ASSETS 1,039,389 244,786 82,467 145,051 267,729 --------------------------------------------------------------------- LIABILITIES Interfund transfers pending -- (4,384) (1,477) 745 (2,440) Unsettled net security purchases 548 410 138 -- -- Net contributions payable 112 (62) (21) 103 211 --------------------------------------------------------------------- TOTAL LIABILITIES 660 (4,036) (1,360) 848 (2,229) --------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,038,729 $ 248,822 $ 83,827 $ 144,203 $ 269,958 ===================================================================== The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 31, 1996 ($ IN THOUSANDS) (CONTINUED) - - ---------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ---------------------------------------------------------------------------------------------------- - - ---------------------------------------------------------------------------------------------------- ITT ITT CORPORATION INDUSTRIES BALANCED COMPANY COMPANY STOCK FUND STOCK FUND FUND LOAN FUND - - ---------------------------------------------------------------------------------------------------- ASSETS Investments, at fair value: The Hartford common stock: 4,759,452 shares $ -- $ -- $ -- $ -- ITT Corporation common stock: 3,594,381 shares -- 155,906 -- -- ITT Industries, Inc. common stock: 3,597,377 shares -- -- 88,136 -- Investment in securities of unaffiliated issuers 25,950 2,651 1,225 -- Investment in group annuity contracts, at contract value -- -- -- -- Dividends and interest receivable 57 (23) 633 -- Loans receivable -- -- -- 24,821 ----------------------------------------------------- TOTAL ASSETS 26,007 158,534 89,994 24,821 ----------------------------------------------------- LIABILITIES Interfund transfers pending (164) 4,264 3,456 -- Unsettled net security purchases -- -- -- -- Net contributions payable (213) 69 25 -- ----------------------------------------------------- TOTAL LIABILITIES (377) 4,333 3,481 -- ----------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 26,384 $ 154,201 $ 86,513 $ 24,821 ===================================================== The accompanying notes are an integral part of these financial statements.
F-4
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997 ($ IN THOUSANDS) - - ----------------------------------------------------------------------------------------------------------------- NON-MEMBER | DIRECTED | | MEMBER DIRECTED - - ----------------------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------------------- THE HARTFORD THE HARTFORD COMPANY COMPANY STABLE TOTAL STOCK FUND STOCK FUND INDEX FUND VALUE FUND - - ----------------------------------------------------------------------------------------------------------------- ADDITION TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ 251,643 $ 92,973 $ 30,333 $ 39,377 $ -- Dividends and interest 29,813 6,349 2,072 120 16,723 Net realized capital gains 67,973 1,988 649 8,444 -- ---------------------------------------------------------------------- Total investment income (loss) 349,429 101,310 33,054 47,941 16,723 Interest on participant loans 2,762 721 235 621 862 Repayment of participant loans -- 3,216 1,049 2,790 3,963 Employee contributions 51,722 10,473 3,417 14,341 14,797 Employer contributions 22,046 14,666 4,785 26 228 Forfeitures (402) (298) (97) -- -- Rollovers 7,421 891 291 1,413 898 Other, net 205 2,018 (1,999) 1 108 ---------------------------------------------------------------------- TOTAL ADDITIONS 433,183 132,997 40,735 67,133 37,579 ---------------------------------------------------------------------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers -- 12,818 4,182 (4,753) (6,234) Loans to participants -- (5,717) (1,864) (5,800) (8,480) Administrative expense (2,662) (688) (224) (407) (604) Withdrawals (81,996) (19,342) (6,301) (8,673) (26,711) ---------------------------------------------------------------------- TOTAL DEDUCTIONS (84,658) (12,929) (4,207) (19,633) (42,029) ---------------------------------------------------------------------- NET INCREASE (DECREASE) 348,525 120,068 36,528 47,500 (4,450) NET ASSETS AVAILABLE FOR BENEFITS Beginning of period 1,038,729 248,822 83,827 144,203 269,958 ---------------------------------------------------------------------- END OF PERIOD $ 1,387,254 $ 368,890 $ 120,355 $ 191,703 $ 265,508 ====================================================================== The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ------------------------------------------------------------------------------------------------- - - ------------------------------------------------------------------------------------------------- BOND INCOME BALANCED STRATEGY MONEY FUND ADVISERS FUND FUND MARKET FUND - - ------------------------------------------------------------------------------------------------- ADDITION TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ -- $ 5,807 $ 31 $ -- Dividends and interest -- 807 106 71 Net realized capital gains -- 418 1 -- ------------------------------------------------------ Total investment income (loss) -- 7,032 138 71 Interest on participant loans 4 154 8 6 Repayment of participant loans (35) 673 33 29 Employee contributions -- 4,427 177 138 Employer contributions (213) 11 3 1 Forfeitures -- -- -- -- Rollovers -- 614 223 270 Other,net 16 66 -- 11 ------------------------------------------------------ TOTAL ADDITIONS (228) 12,977 582 526 ------------------------------------------------------ DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers (26,167) 28,636 2,234 2,332 Loans to participants 11 (1,288) (64) (81) Administrative expense -- (75) (2) (3) Withdrawals -- (1,514) (39) (310) ------------------------------------------------------ TOTAL DEDUCTIONS (26,156) 25,759 2,129 1,938 ------------------------------------------------------ NET INCREASE (DECREASE) (26,384) 38,736 2,711 2,464 NET ASSETS AVAILABLE FOR BENEFITS Beginning of period 26,384 -- -- -- ------------------------------------------------------ END OF PERIOD $ -- $ 38,736 $ 2,711 $ 2,464 ====================================================== The accompanying notes are an integral part of these financial statements.
F-5
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ----------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ----------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------- DIVIDEND & INTERNATIONAL CAPITAL SMALL GROWTH FUND OPPORTUNITIES APPRECIATION COMPANY FUND FUND FUND - - ----------------------------------------------------------------------------------------------------- ADDITION TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ 809 $ (200) $ 871 $ 29 Dividends and interest 129 97 607 331 Net realized capital gains 38 31 328 87 --------------------------------------------------------- Total investment income (loss) 976 (72) 1,806 447 Interest on participant loans 21 20 53 24 Repayment of participant loans 121 88 242 104 Employee contributions 716 548 1,523 780 Employer contributions 13 5 14 8 Forfeitures -- -- -- -- Rollovers 700 331 1,031 640 Other, net -- -- -- -- --------------------------------------------------------- TOTAL ADDITIONS 2,547 920 4,669 2,003 --------------------------------------------------------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers 5,440 3,798 14,128 6,106 Loans to participants (190) (116) (370) (166) Administrative expense (8) (6) (15) (8) Withdrawals (191) (254) (384) (133) --------------------------------------------------------- TOTAL DEDUCTIONS 5,051 3,422 13,359 5,799 --------------------------------------------------------- NET INCREASE (DECREASE) 7,598 4,342 18,028 7,802 NET ASSETS AVAILABLE FOR BENEFITS Beginning of period -- -- -- -- --------------------------------------------------------- END OF PERIOD $ 7,598 $ 4,342 $ 18,028 $ 7,802 ========================================================= The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE PERIOD FROM JANUARY 1, 1997 TO DECEMBER 30, 1997 ($ IN THOUSANDS) (CONTINUED) - - ------------------------------------------------------------------------------------------------------------ MEMBER DIRECTED - - ------------------------------------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------------------------------------ HARTFORD LIFE ITT CORPORATION ITT INDUSTRIES COMPANY STOCK COMPANY STOCK COMPANY STOCK FUND FUND FUND LOAN FUND - - ------------------------------------------------------------------------------------------------------------ ADDITION TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ 2,024 $ 77,582 $ 2,007 $ -- Dividends and interest 79 511 1,811 -- Net realized capital gains 31 40,414 15,544 -- ----------------------------------------------------------------- Total investment income (loss) 2,134 118,507 19,362 -- Interest on participant loans 33 -- -- -- Repayment of participant loans 209 (19) (11) (12,452) Employee contributions 385 -- -- -- Employer contributions 2,499 (36) 36 -- Forfeitures (7) -- -- -- Rollovers 119 -- -- -- Other, net -- 74 (25) (65) ----------------------------------------------------------------- TOTAL ADDITIONS 5,372 118,526 19,362 (12,517) ----------------------------------------------------------------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers 12,157 (39,245) (15,432) -- Loans to participants (88) (2,143) (909) 27,265 Administrative expense (10) (420) (192) -- Withdrawals (193) (11,164) (5,222) (1,565) ----------------------------------------------------------------- TOTAL DEDUCTIONS 11,866 (52,972) (21,755) 25,700 ----------------------------------------------------------------- NET INCREASE (DECREASE) 17,238 65,554 (2,393) 13,183 NET ASSETS AVAILABLE FOR BENEFITS Beginning of period -- 154,201 86,513 24,821 ----------------------------------------------------------------- END OF PERIOD $ 17,238 $ 219,755 $ 84,120 $ 38,004 ================================================================= The accompanying notes are an integral part of these financial statements.
F-6
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1996 ($ IN THOUSANDS) - - -------------------------------------------------------------------------------------------------------------------- NON-MEMBER | DIRECTED | | MEMBER DIRECTED - - -------------------------------------------------------------------------------------------------------------------- - - -------------------------------------------------------------------------------------------------------------------- THE HARTFORD THE HARTFORD COMPANY COMPANY STABLE VALUE TOTAL STOCK FUND STOCK FUND INDEX FUND FUND - - -------------------------------------------------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ 45,847 $ 64,003 $ 21,562 $ 25,515 $ -- Dividends and interest 29,484 6,823 2,299 56 16,657 Net realized capital gains 38,695 2,053 692 292 -- --------------------------------------------------------------------- Total investment income (loss) 114,026 72,879 24,553 25,863 16,657 Interest on participant loans 1,642 396 134 401 616 Repayment of participant loans -- 2,387 804 2,331 3,888 Contributions 67,226 25,077 8,448 13,092 16,958 --------------------------------------------------------------------- TOTAL ADDITIONS (DEDUCTIONS) 182,894 100,739 33,939 41,687 38,119 DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers -- 10,954 3,691 4,875 7,456 Loans to participants -- (3,230) (1,088) (2,645) (4,884) Administrative expense (1,831) (360) (124) (251) (377) Withdrawals (80,823) (13,269) (4,470) (7,883) (29,154) Other, net (1,828) (1,026) (346) (119) (132) --------------------------------------------------------------------- TOTAL (DEDUCTIONS) ADDITIONS (84,482) (6,931) (2,337) (6,023) (27,091) --------------------------------------------------------------------- NET INCREASE (DECREASE) 98,412 93,808 31,602 35,664 11,028 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 940,317 155,014 52,225 108,539 258,930 ------------------------------------------------------------------- END OF YEAR $ 1,038,729 $ 248,822 $ 83,827 $ 144,203 $ 269,958 =================================================================== The accompanying notes are an integral part of these financial statements.
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1996 ($ IN THOUSANDS) (CONTINUED) - - ---------------------------------------------------------------------------------------------------- MEMBER DIRECTED - - ---------------------------------------------------------------------------------------------------- - - ---------------------------------------------------------------------------------------------------- ITT ITT CORPORATION INDUSTRIES BALANCED COMPANY COMPANY STOCK FUND STOCK FUND FUND LOAN FUND - - ---------------------------------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment Income: Net unrealized appreciation (depreciation) $ (1,761) $ (55,966)$ (7,506) $ -- Dividends and interest 408 125 3,116 -- Net realized capital gains 3,383 22,268 10,007 -- -------------------------------------------------------- Total investment income (loss) 2,030 (33,573) 5,617 -- Interest on participant loans 95 -- -- -- Repayment of participant loans 547 -- -- (9,957) Contributions 3,823 (90) (82) -- -------------------------------------------------------- TOTAL ADDITIONS (DEDUCTIONS) 6,495 (33,663) 5,535 (9,957) DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Interfund transfers 5,328 (19,066) (14,491) 1,253 Loans to participants (458) (1,518) (686) 14,509 Administrative expense (43) (469) (207) -- Withdrawals (1,189) (17,100) (7,758) -- Other, net 479 (343) (341) -- -------------------------------------------------------- TOTAL (DEDUCTIONS) ADDITIONS 4,117 (38,496) (23,483) 15,762 -------------------------------------------------------- NET INCREASE (DECREASE) 10,612 (72,159) (17,948) 5,805 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 15,772 226,360 104,461 19,016 -------------------------------------------------------- END OF YEAR $ 26,384 $ 154,201 $ 86,513 $ 24,821 ======================================================== The accompanying notes are an integral part of these financial statements.
F-7 THE HARTFORD INVESTMENT AND SAVING PLAN NOTES TO FINANCIAL STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) NOTE 1. DESCRIPTION OF THE PLAN The Hartford Financial Services Group, Inc., ("The Hartford" or the "Company", formerly ITT Hartford Group, Inc.), a Delaware corporation, was a wholly-owned subsidiary of ITT Corporation ("ITT" which was renamed ITT Industries, Inc.). On December 19, 1995, ITT distributed all of the outstanding shares of The Hartford to ITT shareholders of record in an action known herein as the "Distribution". In such Distribution, holders of common stock of ITT, including ITT Investment and Savings Plan for Salaried Employees ("ITT Plan"), received one share of ITT Destinations, Inc. (renamed "ITT Corporation") common stock, one share of ITT Industries, Inc. common stock and one share of The Hartford common stock for each share of ITT common stock held. Shares in each of The Hartford, ITT Corporation, and ITT Industries, Inc. are held in separate funds. (In February 1998, ITT Corporation was acquired by Starwood Hotels and Lodging and the ITT Corporation Company Stock Fund changed to the Starwood Stock Fund. Both the ITT Industries and Starwood Stock Funds will be terminating on September 1, 1998.) Through the date of the Distribution, eligible employees of the Company participated in the ITT Plan. Subsequent to the Distribution, the Company established The Hartford Investment and Savings Plan (the "Plan", formerly ITT Hartford Investment and Savings Plan) for the benefit of eligible employees of The Hartford. The accounts of employees who had participated in the ITT Plan were transferred to the Plan. 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. In 1997, the Plan year end was changed from December 31 to December 30. 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"). 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 (the "Code"), as amended. 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. Member's savings in excess of 6% of base salary are supplemental savings that are not matched by Company contributions. In addition, the Company allocates .50% of base salary to the Floor Company Contribution Account of each eligible employee. Matching Company contributions and Floor Company contributions are invested in The Hartford Company Stock Fund, or for employees of Hartford Life, Inc. ("Hartford Life" or "HLI"), the holding company parent of The Hartford's significant life insurance subsidiaries, Hartford Life Company Stock Fund. Effective December 31, 1997, 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, then an additional matching contribution would be made to the participants. F-8 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 Plan administrative expenses which are not 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. The benefit to which a member is entitled is the benefit that can be provided from that member's vested account. Vesting - - ------- Vesting in the 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. Investment Options - - ------------------ Contributions of member savings are invested in any one or more of the funds listed below (with the exception of ITT Corporation and ITT Industries Company Stock), in multiples of 1%, as elected by the member. During 1997, the Plan added eight new investment options as noted below. Except with respect to dividends thereon, no such amounts will be invested in ITT Corporation or ITT Industries Company Stock Funds. THE HARTFORD This fund's investment objective is to seek long-term COMPANY STOCK capital appreciation by investing in the common stock of The FUND Hartford. INDEX FUND This fund's investment objective is to seek investment results that track the overall performance of the stocks in the Standard & Poor's ("S&P") 500 Stock Index by investing in stocks in the S&P 500 Stock Index. STABLE VALUE This fund's investment objective is to seek a stable and FUND predictable rate of return and preservation of capital by (PREVIOUSLY investing in group annuity contracts issued by a NAMED FIXED diversified group of high-quality life insurance companies, INCOME FUND) including an affiliate, Hartford Life, deposit agreements issued by a diversified group of high-quality banks, U.S. government obligations and asset-backed securities. BALANCED FUND A fund invested through an actively managed portfolio consisting of equity securities, fixed income securities and cash equivalents. This fund was closed and assets were transferred to the Advisers Fund on January 2, 1997 (member contributions commenced on February 18, 1997). * ADVISERS FUND The 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. * BOND INCOME The fund's investment objective is to seek a high level of STRATEGY current income consistent with a competitive total return as FUND compared with bond funds with similar investment objectives and policies by investing primarily in investment-grade bonds. F-9 NOTES TO FINANCIAL STATEMENTS (CONTINUED) * MONEY MARKET This fund's investment objective is to seek maximum current FUND income consistent with liquidity and preservation of capital by investing in cash, cash equivalents and high-quality debt securities. * DIVIDEND & This fund's investment objective is to seek current income GROWTH FUND and growth of capital by investing primarily in large, well-known U.S. companies that pay above-average dividends. * INTERNATIONAL This fund's investment objective is to seek long-term growth OPPORTUNITIES of capital by investing primarily in the stocks of large FUND non-U.S. companies. * CAPITAL This fund's investment objective is to seek capital APPRECIATION appreciation by investing primarily in the stocks of small, FUND medium and large U.S. companies. * SMALL COMPANY This fund's investment objective is to seek capital FUND 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. * HARTFORD LIFE This fund's investment objective is to seek long-term COMPANY STOCK capital appreciation by investing in the class A common FUND stock of Hartford Life, Inc. * ITT This fund's investment objective is to seek long-term CORPORATION capital appreciation by investing in the common stock of ITT COMPANY STOCK Corporation. (On February 26, 1998, ITT Corporation was FUND acquired by Starwood Hotels and Lodging and the name of the ITT Corporation Company Stock Fund was changed to the Starwood Stock Fund.) * ITT INDUSTRIES This fund's investment objective is to seek long-term COMPANY STOCK capital appreciation by investing in the common stock of ITT FUND Industries. * New funds effective as of February 18, 1997, except for the Hartford Life Company Stock Fund which became effective May 22, 1997. HLI completed the initial public offering of 18.6% of its Class A common stock on May 22, 1997. Participant Loans - - ----------------- Members may borrow from their fund accounts a minimum of $1,000 to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balances. Loan transactions are treated as transfers to (from) the investment fund from (to) 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%. The interest rate is determined quarterly. Payment of Benefits - - ------------------- On termination of service due to death, disability, retirement, or other reasons, members 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 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 period from January 1, 1997 to December 30, 1997 and the year ended December 31, 1996. F-10 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2. ACCOUNTING POLICIES The financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with generally accepted accounting principles 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. NOTE 3. VALUATION OF INVESTMENTS Plan investments, except group annuity contracts, are reported at fair value. The fair value of the underlying common stock of The Hartford Company Stock Fund, Hartford Life Company Stock Fund, ITT Industries Company Stock Fund and ITT Corporation Company Stock Fund are 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 also entered into numerous group annuity contracts primarily with insurance carriers. These contracts, which are classified as part of the Stable Value Fund, are fully benefit responsive and are included in the financial statements at contract value, which approximates fair value. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expenses. As of December 30, 1997, the estimated fair value of the group annuity contracts was $255,238. The average yield and weighted average crediting interest rate on these contracts was 6.54% and 6.09%, respectively, for the period from January 1, 1997 to December 30, 1997, and 6.59% and 6.18%, respectively, for the year ended December 31, 1996. 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 4. FEDERAL INCOME TAX In 1997, the Company filed with the Internal Revenue Service a request for a formal determination that the Plan is qualified and that the Trust established under the Plan is tax-exempt. On February 25, 1998, a favorable determination was received from the Internal Revenue Service as to the tax-qualified status of the Plan. Accordingly, no provision for income taxes has been made in the Plan's financial statements. The Plan administrator believes that the Plan is designed and is currently 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. NOTE 5. 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 of the Plan or partial termination or complete discontinuance of contributions, the interest of affected members shall automatically become nonforfeitable. F-11 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500:
1997 1996 --------------------------------------------------------------------------------- ---------------- ---------------- Net assets available for plan benefits per financial statements $ 1,387,254 $ 1,038,729 Amounts allocated to withdrawing members (650) (7,342) --------------------------------------------------------------------------------- -- ------------- -- ------------- Net assets available for plan benefits per the Form 5500 $ 1,386,604 $ 1,031,387 --------------------------------------------------------------------------------- -- ------------- -- -------------
The following is a reconciliation of benefits paid to members according to the financial statements to Form 5500:
1997 1996 --------------------------------------------------------------------------------- ---------------- ---------------- Benefits paid to members per the financial statements $ 81,996 $ 80,823 Amounts allocated to withdrawing members at end of year 650 7,342 Amounts allocated to withdrawing members at beginning of year (7,342) (4,021) --------------------------------------------------------------------------------- -- ------------- -- ------------- Benefits paid to members per Form 5500 $ 75,304 $ 84,144 --------------------------------------------------------------------------------- -- ------------- -- -------------
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to the end of the Plan year, but not yet paid as of that date. NOTE 7. 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 and investment management services provided by Bankers Trust Company amounted to $589 and $595 for the period from January 1, 1997 to December 30, 1997 and the year ended December 31, 1996, respectively. Fees paid by the Plan to certain subsidiaries of the Company for investment management services, the issuance of group annuity contracts and print services amounted to $98 and $26 for the period from January 1, 1997 to December 30, 1997 and the year ended December 31, 1996, respectively. In addition, certain Plan investments are shares of The Hartford common stock and Hartford Life common stock. Since The Hartford is the Plan Sponsor, these transactions qualify as party-in-interest transactions. F-12
EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, (E) CURRENT (A) (B) IDENTITY OF PARTY COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - - --- --------------------- --------------------------------- -------- ----- The Hartford Company Stock Fund ------------------------------- * The Hartford Financial Services Group, Inc. Common Stock $ 157,310 $ 477,103 * Bankers Trust Company BT Pyramid Directed Account Cash Fund - STIF 9,426 9,426 -------------- --------------- SUBTOTAL 166,736 486,529 -------------- --------------- Index Fund ---------- * Hartford Life Insurance S&P 500 Index Portfolio Hartford - Company GA - 6226, S/A BI 96,196 191,181 -------------- --------------- SUBTOTAL 96,196 191,181 -------------- --------------- Stable Value Fund ----------------- * Bankers Trust Company BT Pyramid Discretionary Account Cash Fund - STIF 14,255 14,255 Allstate Life Group Annuity Contract Insurance Company #GA 5429A, 5.74%, 05/03/1999 7,937 7,937 People Security Life Group Annuity Contract Insurance Company #BDA00598FR, 5.15%, 12/23/1998 8,630 8,630 Connecticut General Life Group Annuity Contract Insurance Company #25214, 8.44%, 01/05/1998 1,740 1,740 New York Life Group Annuity Contract Insurance Company GA#30497, 7.20%, 09/30/1999 6,652 6,652 Allstate Life Group Annuity Contract Insurance Company GA#5593A, 7.52%, 11/01/1999 3,610 3,610 Life Insurance Company Group Annuity Contract of Virginia #GS2891, 5.91%, 06/02/1998 2,655 2,655 * Hartford Life Group Annuity Contract Insurance Company #30026, 5.46%, 06/04/1999 8,064 8,064 * Indicates party-in-interest. The accompanying notes are an integral part of this schedule. F-13 EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (continued) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, (E) CURRENT (A) (B) IDENTITY OF PARTY COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - - --- --------------------- --------------------------------- -------- ----- * Hartford Life Group Annuity Contract Insurance Company GA#10361, 5.66%,03/31/1999 $ 4,064 $ 4,064 Metropolitan Life Group Annuity Contract Insurance Company GAC#24543, 6.20% * * 11,151 11,151 * Hartford Life Group Annuity Contract Insurance Company GA#30027, 6.22%, 06/01/1999 2,040 2,040 Commonwealth Life Group Annuity Contract Insurance Company ADA00185TR, 6.74% * * 32,839 32,839 Principal Mutual Group Annuity Contract #4-23600, 8.55%, 03/01/1998 11,073 11,073 Principal Mutual Group Annuity Contract #4-23600-2, 8.00%, 03/20/1999 3,318 3,318 Transamerica Group Annuity Contract Insurance Company #76592, 5.83% * * 12,620 12,620 Sun America Life Group Annuity Contract Insurance Company #4670, 6.81%, 10/16/2001 6,622 6,622 Continental Assurance Group Annuity Contract Insurance Contracts #24022, 6.58%, 12/31/2001 7,812 7,812 Transamerica Group Annuity Contract Insurance Company #76620, 6.64% * * 22,042 22,042 Morgan Guaranty Group Annuity Contract #A1TTH01, 6.41% * * 60,261 60,261 Transamerica Insurance Group Annuity Contract Company #76682, 6.20% * * 20,730 20,730 * Indicates party-in-interest. ** These synthetic portfolios have no final maturity. Final maturity is based on the underlying assets in the bond portfolios. The accompanying notes are an integral part of this schedule. F-14 EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (continued) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, (E) CURRENT (A) (B) IDENTITY OF PARTY COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - - --- --------------------- --------------------------------- -------- ----- Caisse des Depots et Group Annuity Contract Consignations #BR302-01, 6.98%, 01/01/2002 $ 15,759 $ 15,759 --------------- ---------------- SUBTOTAL 263,874 263,874 --------------- ---------------- Advisers Fund ------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Advisor Fund #BL416645786 32,766 38,574 --------------- ---------------- SUBTOTAL 32,766 38,574 --------------- ---------------- Bond Income Strategy Fund ------------------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Bond Income Strategy Fund 2,666 2,697 --------------- ---------------- SUBTOTAL 2,666 2,697 --------------- ---------------- Money Market Fund ----------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Money Market Fund 2,444 2,444 --------------- ---------------- SUBTOTAL 2,444 2,444 --------------- ---------------- Dividend & Growth Fund ---------------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Dividend & Growth Fund 6,735 7,544 --------------- ---------------- SUBTOTAL 6,735 7,544 --------------- ---------------- International Opportunities Fund -------------------------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. International Opportunity Fund 4,505 4,305 --------------- ---------------- SUBTOTAL 4,505 4,305 --------------- ---------------- Capital Appreciation Fund ------------------------- * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Capital Appreciation Fund 17,028 17,899 --------------- ---------------- SUBTOTAL 17,028 17,899 --------------- ---------------- * Indicates party-in-interest. The accompanying notes are an integral part of this schedule. F-15 EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (continued) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, (E) CURRENT (A) (B) IDENTITY OF PARTY COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - - --- --------------------- --------------------------------- -------- ----- Small Company Fund ------------------ * The Hartford Financial Hartford Mutual Funds Inc. Services Group, Inc. Small Company Fund $ 7,714 $ 7,742 --------------- ----------------- SUBTOTAL 7,714 7,742 --------------- ----------------- Hartford Life Company Stock Fund -------------------------------- * Hartford Life Common Stock 14,904 16,928 * Bankers Trust Company BT Pyramid Directed Account Cash Fund - STIF 69 69 --------------- ----------------- SUBTOTAL 14,973 16,997 --------------- ----------------- ITT Corporation Company Stock Fund ---------------------------------- ITT Corporation Common Stock 57,517 209,450 * Bankers Trust Company BT Pyramid Directed Account Cash Fund- STIF 9,643 9,643 --------------- ----------------- SUBTOTAL 67,160 219,093 --------------- ----------------- ITT Industries Company Stock Fund --------------------------------- ITT Industries, Inc. Common Stock 27,678 79,881 * Bankers Trust Company BT Pyramid Directed Account Cash Fund- STIF 3,924 3,924 --------------- ----------------- SUBTOTAL 31,602 83,805 --------------- ----------------- * Indicates party-in-interest. The accompanying notes are an integral part of this schedule. F-16 EIN# 06-0383750 PLAN# 100 THE HARTFORD INVESTMENT AND SAVINGS PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - PART I AS OF DECEMBER 30, 1997 ($ IN THOUSANDS) (continued) (C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, (E) CURRENT (A) (B) IDENTITY OF PARTY COLLATERAL, PAR OR MATURITY VALUE (D) COST VALUE - - --- --------------------- --------------------------------- -------- ----- Loan Fund --------- * Loans to Participant Loans Receivable from Participants, at various dates bearing interest at rates from 9.25% - 9.50% $ $ 37,973 -- --------------- ---------------- SUBTOTAL -- 37,973 --------------- ---------------- TOTAL $ 714,399 $ 1,380,657 =============== ================ * Indicates party-in-interest. The accompanying notes are an integral part of this schedule.
F-17 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 26, 1998 - - ------------- (DATE) F-18 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 26, 1998 F-19 -----END PRIVACY-ENHANCED MESSAGE-----