Segment Information

6 Months Ended

Jun. 30, 2011

3. Segment Information

The Hartford is organized into three customer-oriented divisions, Commercial Markets, Consumer Markets and Wealth Management, conducting business principally in seven reporting segments. The Company’s seven reporting segments, as well as the Corporate and Other category, are as follows:

Commercial Markets

Property & Casualty Commercial

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

Group Benefits

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

Consumer Markets

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

Wealth Management

Global Annuity

Global Annuity offers individual variable, fixed market value adjusted (“fixed MVA”) and single premium immediate annuities in the U.S., a range of products to institutional investors, including but not limited to, stable value contracts, and administers investments, retirement savings and other insurance and savings products to individuals and groups outside the U.S., primarily in Japan and Europe.

Life Insurance

Life Insurance sells a variety of life insurance products, including variable universal life, universal life, and term life, as well as private placement life insurance (“PPLI”) owned by corporations and high net worth individuals.

Retirement Plans

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

Mutual Funds

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

Corporate and Other

The Hartford includes in Corporate and Other the Company’s debt financing and related interest expense, as well as other capital raising activities; banking operations; certain fee income and commission expenses associated with sales of non-proprietary products by broker-dealer subsidiaries; and certain purchase accounting adjustments and other charges not allocated to the segments. Also included in Corporate and Other is the Company’s management of certain property and casualty operations that have discontinued writing new business and substantially all of the Company’s asbestos and environmental exposures, collectively referred to as Other Operations.

Financial Measures and Other Segment Information

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Property & Casualty Commercial	$	121		$	270		$	448		$	476
Group Benefits		41			48			52			99
Consumer Markets		(174	)		(13	)		(64	)		43
Global Annuity		228			(114	)		278			(34	)
Life Insurance		66			103			101			127
Retirement Plans		30			14			45			8
Mutual Funds		27			23			55			49
Corporate and Other		(315	)		(255	)		(380	)		(373	)

Net income	$	24		$	76		$	535		$	395

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Earned premiums, fees, and other considerations
Property & Casualty Commercial
Workers’ compensation	$	685		$	573		$	1,350		$	1,148
Property		134			137			269			277
Automobile		145			151			291			303
Package business		285			282			568			561
Liability		134			135			269			274
Fidelity and surety		54			57			109			113
Professional liability		80			80			159			163

Total Property & Casualty Commercial		1,517			1,415			3,015			2,839
Group Benefits
Group disability		516			502			993			1,033
Group life and accident		511			514			1,028			1,026
Other		49			58			99			117

Total Group Benefits		1,076			1,074			2,120			2,176
Consumer Markets
Automobile		657			711			1,329			1,424
Homeowners		282			284			566			567

Total Consumer Markets [1]		939			995			1,895			1,991
Global Annuity
Variable annuity		631			628			1,270			1,228
Fixed / MVA and other annuity		17			11			27			23
Institutional investment products		(3	)		4			(2	)		17

Total Global Annuity		645			643			1,295			1,268
Life Insurance
Variable life		91			101			182			203
Universal life		109			104			215			209
Term / other life		12			11			24			24
PPLI		45			43			89			83

Total Life Insurance		257			259			510			519
Retirement Plans
401(k)		88			80			172			156
Government plans		13			9			26			20

Total Retirement Plans		101			89			198			176
Mutual Funds
Non-proprietary		161			152			323			303
Proprietary		14			15			30			31

Total Mutual Funds		175			167			353			334
Corporate and Other		54			50			106			96

Total earned premiums, fees, and other considerations		4,764			4,692			9,492			9,399
Net investment income (loss):
Securities available-for-sale and other		1,104			1,148			2,212			2,202
Equity securities, trading		(597	)		(2,649	)		206			(1,948	)

Total net investment income (loss)		507			(1,501	)		2,418			254
Net realized capital gains (losses)		69			9			(334	)		(265	)
Other revenues		61			65			125			129

Total revenues	$	5,401		$	3,265		$	11,701		$	9,517


[1]		For the three months ended June 30, 2011 and 2010, AARP members accounted for earned premiums of $694 and $716, respectively. For the six months ended June 30, 2011 and 2010, AARP members accounted for earned premiums of $1.4 billion.