##### Table of Contents



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number
    001-32293
  HARTFORD LIFE INSURANCE
    COMPANY
 (Exact name of registrant as
    specified in its charter)
  Connecticut(State or other
    jurisdiction of
    incorporation or organization)

06-0974148(I.R.S. Employer
    Identification No.)   200 Hopmeadow Street, Simsbury, Connecticut 06089
 (Address of principal executive
    offices)
  (860) 547-5000
 (Registrants telephone
    number, including area code)
  Securities registered pursuant to Section 12(b) of the
    Act:
 3.75% Secured Medium-Term Notes due 2009 of Hartford Life
    Global Funding
    Trust 2004-001
  Securities registered pursuant to Section 12(g) of the
    Act: None
  þ o
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
  Rule 12b-2
 o o þ
  Rule 12b-2 o þ
      Form 10-K




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##### 



CONTENTS
  Item



Description

PagePART I

1.

Business.*


31A.

Risk
    Factors


121B.

Unresolved Staff
    Comments


182.

Properties.*


183.

Legal
    Proceedings


184.

**PART II

5.

Market for Hartford
    Life Insurance Companys Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities


206.

**7.

Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.*


217A.

Quantitative and
    Qualitative Disclosures About Market Risk


718.

Financial
    Statements and Supplementary Data


719.

Changes in and
    Disagreements With Accountants on Accounting and Financial
    Disclosure


729A.

Controls and
    Procedures


729B.

Other
    Information


72PART III

10.

**11.

**12.

**13.

**14.

Principal
    Accounting Fees and Services


72PART IV

15.

Exhibits, Financial
    Statement Schedules


73Signatures


II-1Exhibits Index


II-2     *
    
    Item prepared in accordance with General
    Instruction I (2) of
    Form 10-K**
    
    Item omitted in accordance with General
    Instruction I (2) of
    Form 10-KEX-12.01: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGESEX-23.01: CONSENT OF DELOITTE & TOUCHE, LLPEX-31.01: CERTIFICATIONEX-31.02: CERTIFICATIONEX-32.01: CERTIFICATIONEX-32.02: CERTIFICATION  2




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PART I  Item 1.
    BUSINESS (Dollar Amounts In Millions, Unless Otherwise
    Stated)
  General
      Reporting
    Segments
             3




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Customer
    Service, Technology and Economies of Scale
    Risk
    Management
    Retail
     4




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Principal
    Products
  Individual Variable Annuities
       5




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Fixed MVA Annuities
  Marketing
    and Distribution
      Competition
    Retirement
    Plans
   6




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Principal
    Products
  Governmental
  401(k)
  Marketing
    and Distribution
      Competition
    Institutional
       7




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Principal
    Products
  Institutional Investment Products
  Structured Settlements
  Stable Value Products
  Institutional Annuities
  Longevity Assurance
  Single Premium Immediate Annuities
  Variable PPLI Products
  Marketing
    and Distribution
   8




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Competition
        Individual
    Life
    Principal
    Products
    Variable Universal Life
 9




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Universal Life and Interest Sensitive Whole
    Life
  Marketing
    and Distribution
    Competition
    Reserves
    Ceded
    Reinsurance
   10




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Investment
    Operations
    Regulation
    and Premium Rates
       11




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Employees 
    Item 1A.
    RISK
    FACTORS     The
    occurrence of one or more terrorist attacks in the geographic
    areas we serve or the threat of terrorism in general may have a
    material adverse effect on our business, consolidated operating
    results, financial condition or liquidity.
    We may
    incur losses due to our reinsurers being unwilling or unable to
    meet their obligations under reinsurance contracts and the
    availability, pricing and adequacy of reinsurance may not be
    sufficient to protect us against losses.
   12




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We are
    exposed to significant capital markets risk related to changes
    in interest rates, equity prices and foreign exchange rates
    which may adversely affect our results of operations, financial
    condition or cash flows.
    We may be
    unable to effectively mitigate the impact of equity market
    volatility on our financial position and results of operations
    arising from obligations under annuity product guarantees, which
    may affect our consolidated results of operations, financial
    condition or cash flows.
   13




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Regulatory
    proceedings or private claims relating to incentive compensation
    or payments made to brokers or other producers, alleged
    anti-competitive conduct and other sales practices could have a
    material adverse effect on us.
      Regulatory
    and market-driven changes may affect our practices relating to
    the payment of incentive compensation to brokers and other
    producers, including changes that have been announced and those
    which may occur in the future, and could have a material adverse
    effect on us in the future.
    Competitive
    activity may adversely affect our market share and
    profitability, which could have an adverse effect on our
    business, results of operations or financial
    condition.
   14




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Potential
    changes in domestic and foreign regulation may increase our
    business costs and required capital levels, which could
    adversely affect our business, consolidated operating results,
    financial condition or liquidity.
      
    licensing companies and agents to transact business;
    calculating the value of assets to determine compliance with
    statutory requirements;
    mandating certain insurance benefits;
    regulating certain premium rates;
    reviewing and approving policy forms;
    regulating unfair trade and claims practices, including through
    the imposition of restrictions on marketing and sales practices,
    distribution arrangements and payment of inducements;
    establishing statutory capital and reserve requirements and
    solvency standards;
    fixing maximum interest rates on insurance policy loans and
    minimum rates for guaranteed crediting rates on life insurance
    policies and annuity contracts;
    approving changes in control of insurance companies;
    restricting the payment of dividends and other transactions
    between affiliates; and
    regulating the types, amounts and valuation of investments.   15




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Our
    business, results of operations and financial condition may be
    adversely affected by general domestic and international
    economic and business conditions that are less favorable than
    anticipated.
    If we
    experience difficulties arising from outsourcing relationships,
    our ability to conduct business may be compromised.
    We may
    experience difficulty in marketing and distributing products
    through our current and future distribution channels.
    We may
    experience a downgrade in our financial strength or credit
    ratings which may make our products less attractive, increase
    our cost of capital, and inhibit our ability to refinance our
    debt, which would have an adverse effect on our business,
    consolidated operating results, financial condition and
    liquidity.
   16




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If we are
    unable to maintain the availability of our systems and safeguard
    the security of our data due to the occurrence of disasters or
    other unanticipated events, our ability to conduct business may
    be compromised, which may have a material adverse effect on our
    business, consolidated results of operations, financial
    condition or cash flows.
    We are
    particularly vulnerable to losses from the incidence and
    severity of catastrophes, both natural and man-made, the
    occurrence of which may have a material adverse effect on our
    financial condition, consolidated results of operations or cash
    flows in a particular quarterly or annual period.
    Potential
    changes in Federal or State tax laws could adversely affect our
    business, consolidated operating results or financial
    condition.
   17




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and/or and/or
  Item 1B.
    UNRESOLVED
    STAFF COMMENTS    Item 2.
    PROPERTIES    Item 3.
    LEGAL
    PROCEEDINGS    Broker Compensation Litigation
   18




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19




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PART II  Item 5.
    MARKET
    FOR HARTFORD LIFE INSURANCE COMPANYS COMMON EQUITY,
    RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES     20




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Item 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS(Dollar
    amounts in millions, unless otherwise stated)  page F-1.
    INDEX
  Overview

21Critical Accounting
    Estimates

27Consolidated
    Results of Operations

32Retail

34Retirement
    Plans

37Institutional

39Individual
    Life

41Other

43Investments

44Investment Credit
    Risk

53Capital Markets
    Risk Management

59Capital Resources
    and Liquidity

68Impact of New
    Accounting Standards

71   OVERVIEW   21




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Outlook
   22




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Position 05-1, (SOP 05-1) SOP 05-1
    Performance
    Measures
  Fee
    Income
   23




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For Years Ended December 31,Product/Key Indicator Information

2006


2005


2004Individual Variable
    AnnuitiesAccount value, beginning of period

$
105,314


$
99,617


$
86,501Net flows


(3,150
)


(881
)


5,471Change in market value and other


12,201



6,578



7,645Account value, end of period

$
114,365


$
105,314


$
99,617Retirement PlansAccount value, beginning of period

$
19,317


$
16,493


$
13,571Net flows


2,545



1,618



1,636Change in market value and other


1,713



1,206



1,286Account value, end of period

$
23,575


$
19,317


$
16,493Individual Life
    InsuranceVariable universal life account
    value, end of period

$
6,637


$
5,902


$
5,356Total life insurance inforce


159,984



146,165



134,769S&P 500 IndexYear end closing value


1,418



1,248



1,212Daily average value


1,310



1,208



1,131     
    The increase in U.S. variable annuity account values from
    December 31, 2005 to December 31, 2006 can be
    attributed to market growth during 2006. Net flows for the
    U.S. variable annuity business were negative and have
    worsened from prior year levels resulting from higher surrenders
    outpacing increased deposits.
    The increase in Retirement Plan account values from
    December 31, 2005 to December 31, 2006 can be
    attributed to positive net flows over the year and market
    appreciation.
    Individual Lifes variable universal life account value
    increased from December 31, 2005 to December 31, 2006
    due primarily to premiums and deposits and market appreciation.
    Life insurance inforce increased from December 31, 2005 to
    December 31, 2006 due to business growth.    
    The 2005 increase in variable annuity account values can be
    attributed to market growth during 2005.
    Net flows for the variable annuity business decreased from 2004
    to 2005. In particular, variable annuity net flows were
    negatively affected due to lower deposits and higher surrenders
    due to increased competition.
    Changes in the market value were based on market conditions and
    investment management performance in 2005.  Net
    Investment Income and Interest Credited
   24




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For the Years Ended December 31,Net Investment Income

2006


2005


2004Retail

$
835


$
934


$
1,013Retirement Plans


326



311



307Institutional


987



784



647Individual Life


292



272



269Other


288



268



234Total net investment
    income

$
2,728


$
2,569


$
2,470Interest Credited on General
    Account AssetsRetail

$
640


$
717


$
846Retirement Plans


208



197



186Institutional


527



388



299Individual Life


214



202



192Other


117



175



135Total interest credited on
    general account assets

$
1,706


$
1,679


$
1,658     
    Net investment income and interest credited on general account
    assets in Retail declined for the year ended December 31,
    2006 due to a decline in general account assets as a result of
    surrenders on market value adjusted (MVA) fixed
    annuity products at the end of the guarantee period. Also
    contributing to the decline in general account assets were
    transfers within variable annuity products from the general
    account to separate account funds.
    Net investment income and interest credited on general account
    assets in Institutional increased due to an increase in general
    account assets as a result of sales in the Companys
    funding agreement backed Investor Notes program.
    In addition to interest credited on general account assets,
    Institutional also had other contract benefits for limited
    payment contracts of $323 and $270, for the years ended
    December 31, 2006 and 2005, respectively. These amounts
    need to be deducted from net investment income to understand the
    net interest spread on these businesses because these contracts
    are accounted for as traditional insurance products.    
    Net investment income and interest credited on general account
    assets in Retail declined for the year ended December 31,
    2005 due to lower assets under management from surrenders on
    market value adjusted (MVA) fixed annuity products
    at the end of their guarantee period.
    Net investment income and interest credited on general account
    assets in Institutional increased as a result of the
    Companys funding agreement backed Investor Notes program
    partially offset by surrenders in the PPLI business.
    Net investment income and interest credited on general account
    assets in Institutional increased as a result of the
    Companys funding agreement backed Investor Notes program,
    partially offset by surrenders in the PPLI business.
    In addition to interest credited on general account assets,
    Institutional also had other contract benefits for limited
    payment contracts of $270 and $263 for the years ended
    December 31, 2005 and 2004, respectively. 25




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These amounts need to be deducted from net investment income to
    understand the net interest spread on these businesses because
    these contracts are accounted for as traditional insurance
    products.  Expenses
      For the Years Ended December 31,Retail

2006


2005


2004General insurance expense ratio
    (individual annuity)


17.2
bps


17.9
bps


18.3
bpsDAC amortization ratio (individual
    annuity)


63.3
%


55.4
%


58.1
%Insurance expenses, net of
    deferrals

$
497


$
433


$
391Individual LifeDeath benefits

$
223


$
214


$
211Insurance expenses, net of
    deferrals

$
171


$
157


$
153   
    Individual annuitys asset growth for the year ended
    December 31, 2006 and 2005 decreased individual
    annuitys expense ratio to a level lower than prior years.
    The ratio of individual annuity DAC amortization increased due
    to the DAC unlock in 2006. Excluding the DAC unlock, the ratio
    was 55.3%, slightly lower than 2005.
    Individual Life death benefits increased 4% for the year ended
    December 31, 2006 primarily due to a larger insurance
    inforce. Individual life insurance expenses, net of deferrals
    increased 9% for the year ended December 31, 2006
    consistent with the growth of life insurance inforce.  Profitability
    Ratios

2006


2005


2004RetailIndividual annuity return on
    assets (ROA)


41.0bps



46.0bps



37.7bps   Year
    ended December 31, 2006 compared to December 31,
    2005
  
    Individual annuitys ROA decreased primarily due to the DAC
    unlock in 2006. Excluding the DAC unlock, ROA was 47.0 bps
    in 2006. Contributing to the decline was an increase in trail
    commissions.  Year
    ended December 31, 2005 compared to December 31,
    2004
  
    Individual annuitys ROA increased for the year ended
    December 31, 2005, compared to the prior year. In
    particular, variable annuity fees and fixed annuity general
    account spreads each increased for the year ended
    December 31, 2005 compared to the prior year. The increase
    in the ROA can be attributed to the increase in account values
    and resulting increased fees including GMWB rider fees without a
    corresponding increase in 26




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expenses, while the increase in fixed annuity general account
    spread resulted from fixed annuity contracts that were repriced
    upon the contract reaching maturity. Also, contributing to a
    higher ROA in 2005 is an increase in the separate account
    dividends received deduction (DRD) tax benefit
    compared to 2004.  Broker
    Compensation
   CRITICAL
    ACCOUNTING ESTIMATES    other-than-temporary available-for-sale
  Deferred
    Policy Acquisition Costs and Present Value of Future Profits
    Associated with Variable Annuity and Other Universal Life-Type
    Contracts
  Accounting
    Policy and Assumptions
     27




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true-up, true-up
  sub-accounts
         28




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Unlock
    and Sensitivity Analysis
    Death andUnearned


Income


SalesSegment

DAC and


Revenue


Benefit


InducementAfter-tax (Charge) Benefit

PVFP


Reserves


Reserves(1)


Assets


TotalRetail Products Group

$
(70
)

$
5


$
(10
)

$
3


$
(72
)Retirement Plans


20















20Individual Life


(46
)


30











(16
)Life  Other


(46
)














(46
)Total

$
(142
)

$
35


$
(10
)

$
3


$
(114
)     (1)
    
    As a result of the unlock, death benefit reserves, in the Retail
    Products Group, increased $294, offset by an increase of $279 in
    reinsurance recoverables.      U.S. Variable Annuities(Increasing separate account returns and decreasing lapse
    rates result in benefits;

Effect on DAC if unlockeddecreasing separate account returns and increasing lapse
    rates result in charges.)

(after-tax)(1)If actual separate account returns
    were 1% above or below our estimated return

$20 - $30If actual lapse rates were 1%
    above or below our estimated aggregate lapse rate

$20 - $30(2)If we changed our future separate
    account return rate by 1% from our estimated future return

$60 - $70If we changed our future lapse
    rate by 1% from our estimated aggregate future lapse rate

$70 - $80(2)     (1)
    
    These sensitivities do not include the estimated impacts on
    sales inducement assets, unearned revenue reserves and death and
    income benefit reserves and are not reflective of any future
    refinements to the Companys gross profit estimation
    process. The Companys DAC models assume that separate
    account returns are earned linearly and that lapses occur
    linearly (except for certain dynamic lapse features) throughout
    the year. Similarly, the sensitivities assume that differential
    separate account and lapse rates are linear and parallel and
    persist throughout a full 12 month period. These
    sensitivities are not perfectly linear nor perfectly symmetrical
    for increases and decreases and are most accurate for small
    changes in assumptions. As such, extrapolating results over a
    wide range will decrease the accuracy of the sensitivities
    predictive ability. Sensitivity results are, in part, based on
    the current
    in-the-moneyness
    of various guarantees offered with the products. Future market
    conditions could significantly change the sensitivity results.(2)
    
    Sensitivity around lapses assumes lapses increase or decrease
    consistently across all cohort years and products. 29




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Valuation
    of Guaranteed Minimum Withdrawal Benefit and Guaranteed Minimum
    Income Benefit Reinsurance Derivatives
  step-up
  Evaluation
    of
    Other-Than-Temporary
    Impairments on
    Available-for-Sale
    Securities
  available-for-sale
  available-for-sale other-than-temporary available-for-sale other-than-temporary,
 30




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other-than-temporary other-than-temporarily
    No. 99-20, No. 99-20 other-than-temporary No. 99-20 other-than-temporary
    No. 99-20 other-than-temporary
  Contingencies
    Relating to Corporate Litigation and Regulatory
    Matters
     31




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CONSOLIDATED
    RESULTS OF OPERATIONS  Operating
    Summary
  2006


2005


2004Fee income and other

$
3,113



2,811



2,592Earned premiums


547



449



484Net investment income


2,728



2,569



2,470Net realized capital gains (losses)


(299
)


75



140Total revenues


6,089



5,904



5,686Benefits, claims and claim
    adjustment expenses


3,205



3,008



3,111Insurance operating costs and
    other expenses


875



835



738Amortization of deferred policy
    acquisition costs


1,175



945



825Total benefits, claims and
    expenses


5,255



4,788



4,674Income before income taxes and
    cumulative effect of accounting change


834



1,116



1,012Income Tax expense


103



207



29Income before cumulative effect
    of accounting change


731



909



983Cumulative effect of accounting
    change, net of tax(1)










(18
)Net Income

$
731


$
909


$
965     (1)
    
    For the year ended December 31, 2004, this amount
    represents the cumulative impact of the Companys adoption
    of
    SOP 03-1.  Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    Fee income and other increases were primarily due to growth in
    assets under management resulting from market growth and
    deposits. The increase in net investment income was primarily
    due to income earned on higher average invested assets base, an
    increase in interest rates and a change in asset mix (e.g.
    greater investment in mortgage loans and limited partnerships).
    The increase in average invested assets base, as compared to the
    prior year, was primarily due to positive operating cash flows,
    investment contract sales such as retail and institutional
    notes, and universal life-type product sales.
    Net realized capital losses occurred in the year ended
    December 31, 2006 compared to net realized capital gains in
    the prior year due primarily to rising interest rates.
    Components of the increased realized capital losses included
    increased other than temporary impairments (see the Other than
    temporary Impairments discussion within the Investment Results
    for more information on the increase in impairments), increased
    realized losses on sales of invested assets and net losses
    related to assumed GMIB primarily driven by liability model
    refinements and assumption updates relating to in-force
    demographics, actual experience and revised future expectations.
    During 2006, the Company achieved favorable settlements in
    several cases brought against the Company by policyholders
    regarding their purchase of broad-based leveraged corporate
    owned life insurance (leveraged COLI) policies in
    the early to mid-1990s. The Company ceased offering this product
    in 1996. Based on the favorable outcome of these cases, together
    with the Companys current assessment of the few remaining 32




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leveraged COLI cases, the Company reduced its estimate of the
    ultimate cost of these cases during 2006. This reserve
    reduction, recorded in insurance operating costs and other
    expenses, resulted in an after-tax benefit of $34.  Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    Life recorded an after-tax charge of $14 for the year ended
    December 31, 2005 to establish reserves for regulatory
    matters for investigations related to market timing by the SEC
    and New York Attorney Generals Office, directed brokerage
    by the SEC, and single premium group annuities by the New York
    Attorney Generals Office and the Connecticut Attorney
    Generals Office.
    For the year ended December 31, 2005, the Company
    experienced a decrease in realized capital gains primarily as a
    result of rising interest rates and changes in valuation
    assumptions associated with GMWB.    
    Fee income and other increased due to growth in assets under
    management resulting from sales.
    Net investment income increased for all Life segments during
    2005, driven by a higher asset base and increased partnership
    income, as compared to the prior year.
    The effective tax rate was 19% for 2005 as compared to an
    effective tax rate of 3% for 2004. The 2005 higher effective tax
    rate was attributed to the absence of a tax benefit of $191
    recorded in 2004 to reflect the impact of an IRS audit
    settlement.  Net
    Realized Capital Gains and Losses
    Income
    Taxes
  1998-2001
  provision-to-filed-return
     33




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RETAIL  Operating
    Summary
  2006


2005


2004Fee income and other

$
1,924


$
1,737


$
1,520Earned premiums


(86
)


(110
)


(44
)Net investment income


835



934



1,013Net realized capital gains (losses)


7



9



(1
)Total revenues


2,680



2,570



2,488Benefits, claims and claim
    adjustment expenses


819



895



1,074Insurance operating costs and
    other expenses


497



433



391Amortization of deferred policy
    acquisition costs


867



689



596Total benefits, claims and
    expenses


2,183



2,017



2,061Income before income taxes and
    cumulative effect of accounting change


497



553



427Income tax expense


9



33



35Income before cumulative effect
    of accounting change


488



520



392Cumulative effect of accounting
    change, net of tax(1)










(19
)Net Income

$
488


$
520


$
373   Account Values

2006


2005


2004Individual variable annuity
    account values

$
114,365


$
105,314


$
99,617Individual fixed annuity and other
    account values(2)


9,937



10,222



11,384Total Account Values

$
124,302


$
115,536


$
111,001     (1)
    
    Represents the cumulative impact of the Companys adoption
    of
    SOP 03-1.(2)
    
    Includes policyholders balances for investment contracts
    and reserve for future policy benefits for insurance contracts.    Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    The increase in fee income in the variable annuity business for
    the year ended December 31, 2006 was mainly a result of
    growth in average account values. The
    year-over-year
    increase in average account values of 7% can be attributed to
    market appreciation of $12.2 billion during 2006. Variable
    annuities had net outflows of $3.2 billion for the year
    ended December 31, 2006 compared to net outflows of $881
    for the year ended December 31, 2005. Net outflows from
    additional surrender activity were due to increased sales
    competition, particularly from competitors that offered variable
    annuity products with their guaranteed living benefits. 34




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##### Table of Contents




    Despite stable general account investment spread during the
    year, net investment income has steadily declined for the year
    ended December 31, 2006 due to variable annuity transfers
    from the fixed account to the separate account combined with
    surrenders in the fixed MVA contracts. Despite these outflows, a
    more favorable interest rate environment throughout 2006 has
    resulted in increased sales and a lower surrender rate resulting
    in net outflows for the year ended December 31, 2006
    decreasing $1.3 billion compared to the prior year.
    Benefits, claims and claim adjustment expenses have decreased
    for the year ended December 31, 2006 due to a decline in
    interest credited also due to a decline in fixed annuity account
    values. In addition, variable annuity asset based commissions
    increased due to 9% growth in assets under management, as well
    as an increase in the number of contracts reaching anniversaries
    when trail commission payments begin.
    Higher amortization of DAC resulted from the DAC unlock during
    the fourth quarter of 2006. The after-tax increase to
    amortization was $70. (For further discussion, see DAC Unlock
    and Sensitivity Analysis in this section of the MD&A).
    The effective tax rate decreased for the year ended
    December 31, 2006 compared to the prior year due to higher
    foreign tax credits in the current year and tax benefits related
    to prior years.  Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    The increase in fee income in the variable annuity business for
    the year ended December 31, 2005 was mainly a result of
    growth in average account values. The
    year-over-year
    increase in average account values of 10% can be attributed to
    market appreciation of $6.6 billion during 2005. Variable
    annuities had net outflows of $881 for the year ended
    December 31, 2005 compared to net inflows of
    $5.5 billion for the year ended December 31, 2004. The
    net outflows during 2005 were due to increased surrender
    activity and increased competition for deposits, particularly
    for competitors that offered guaranteed living benefits riders
    with their variable annuity products.
    The fixed annuity business contributed $66 of higher investment
    spread income in 2005 compared to 2004, excluding the cumulative
    effects of accounting change, due to improved investment spreads
    from the MVA products.
    Benefits and claims adjustment expenses decreased for the year
    ended December 31, 2005 due to an increase in reserves in
    2004 related to the acquisition of a block of acquired business
    from London Pacific Life and Annuity Company in liquidation. The
    increase in reserves of $62 was offset by an equivalent increase
    in earned premium. Also contributing to the decrease in benefits
    expense is a decrease in interest credited as older fixed
    annuity MVA business with higher credited rates matures and
    either lapses or renews at lower credited rates.
    The effective tax rate decreased for the year ended
    December 31, 2005 compared to the prior year end due to an
    increase in the DRD benefit as a percentage of pre-tax income.    
    Throughout Retail, insurance operating costs and other expenses
    increased for the year ended December 31, 2005 compared to
    the prior year. General insurance expenses increased due to
    greater use of investment technology services and sales and
    marketing.
    There was higher amortization of DAC, which resulted from higher
    gross profits due to the positive earnings drivers as discussed
    above. 35




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##### Table of Contents



Outlook
       36




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##### Table of Contents



RETIREMENT
    PLANS  Operating
    Summary
  2006


2005


2004Fee income and other

$
180


$
139


$
107Earned premiums


19



10



10Net investment income


326



311



307Net realized capital (losses) gains


1



(3
)


(3
)Total revenues


526



457



421Benefits, claims and claim
    adjustment expenses


250



231



220Insurance operating costs and
    other expenses


134



115



96Amortization of deferred policy
    acquisition costs


1



26



28Total benefits, claims and
    expenses


385



372



344Income before income tax
    expense and cumulative effect of account change


141



85



77Income tax expense


40



19



17Income before cumulative effect
    of accounting change


101



66



60Cumulative effect of accounting
    change, net of tax(1)










(1
)Net Income

$
101



66


$
59   Account Values

2006


2005


2004Governmental account values


11,540



10,475



9,962401(k) account values


12,035



8,842



6,531Total account values

$
23,575


$
19,317


$
16,493     (1)
    
    Represents the cumulative impact of the Companys adoption
    of
    SOP 03-1.    Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    Fee income for 401(k) increased 38%, or $38 for the year ended
    December 31, 2006 compared to the prior year due to the
    growth in average account values. This growth is primarily
    driven by positive net flows of $2.0 billion during the
    year resulting from strong sales and increased ongoing deposits.
    Total 401(k) deposits and net flows increased by 22% and 16%,
    respectively, over the prior year. The increase in average
    account values can also be attributed to market appreciation of
    $1.1 billion during the year.
    General account spread remained stable for the year ended
    December 31, 2006 compared to the prior year. Overall, net
    investment income and the associated interest credited within
    benefits, claims and claim adjustment expenses each increased as
    a result of the growth in general account assets under
    management. Additionally, benefits, claims and claim adjustment
    expenses increased for the year ended December 31, 2006
    compared to the prior year due to a large case annuitization in
    the 401(k) business which also resulted in corresponding
    increase in earned premiums of $12. 37




---



##### Table of Contents




    Insurance operating costs and other expenses increased for the
    year ended December 31, 2006 primarily driven by the 401(k)
    business. The additional costs can be attributed to greater
    assets under management resulting in higher trail commissions
    and maintenance expenses.
    Lower amortization of DAC resulted from a $20 benefit due to the
    unlocking of Retirement Plans DAC assumptions during the fourth
    quarter of 2006 in both the 401(k) and Government businesses of
    $25 and ($5) after-tax, respectively. (For further discussion,
    see DAC Unlock and Sensitivity Analysis in this section of the
    MD&A).  Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    Fee income for 401(k) increased 41% or $29 for the year ended
    December 31, 2005 compared to the prior year. This increase
    is a result of positive net flows from the 401(k) business of
    $1.8 billion over the prior year driven by strong sales and
    increasing ongoing deposits contributing to the growth in 401(k)
    assets under management of 35% to $8.8 billion. Total
    401(k) deposits and net flows increased substantially by 32% and
    26%, respectively, over the prior year primarily due to the full
    year impact of 2004s expansion of wholesaling capabilities
    and new product offerings.
    The DAC amortization rate decreased in 2005 compared to 2004 as
    a result of higher profits.    
    General account spread decreased for both 401(k) and
    Governmental businesses for the year ended December 31,
    2005 compared to prior year. The decrease is attributable to a
    decrease in the net investment income earned rate for both
    businesses. Average general account assets for the Retirement
    segment increased approximately 7% in 2005 compared to 2004,
    while net investment income increased 2%. Benefits and claims
    expense, which mainly consists of interest credited, increased
    5% for the year ended December 31, 2005 compared to prior
    year, which was driven by a 7% increase in Governmentals
    general account business.
    An increase in insurance operating costs and other expenses of
    $19 during 2005 was principally driven by the 401(k) business.
    The additional costs can be attributed to greater sales and
    assets under management, resulting in a 20% increase in
    asset-based commissions, technology expenditures, and marketing
    and servicing costs supporting the segments business.
    However, the increase in 401(k) sales has driven down the
    overall general insurance expense per case by over 4% compared
    to the prior year.  Outlook
   38




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##### Table of Contents



INSTITUTIONAL  Operating
    Summary
  2006


2005


2004Fee income and other

$
119


$
117


$
158Earned premiums


607



504



464Net investment income


987



784



647Net realized capital (losses) gains


(6
)


(5
)


4Total revenues


1,707



1,400



1,273Benefits, claims and claim
    adjustment expenses


1,471



1,199



1,113Insurance operating costs and
    other expenses


75



53



55Amortization of deferred policy
    acquisition costs


32



32



26Total benefits, claims and
    expenses


1,578



1,284



1,194Income before income
    taxes


129



116



79Income tax expense


38



34



24Net Income

$
91


$
82


$
55   Account Value

2006


2005


2004Institutional account values

$
21,933


$
17,632


$
14,309Private Placement Life Insurance
    account values


26,131



23,836



22,498Total Account
    Values(1)

$
48,064


$
41,468


$
36,807     (1)
    
    Institutional investment product account values include
    transfers from Retirement Plans of $413 during 2006 and from the
    Retail segment of $350 during 2006    Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    Total revenues increased in Institutional driven by positive net
    flows of $2.2 billion during the year, which resulted in
    higher assets under management. Net flows for IIP were
    strong primarily as a result of the Companys funding
    agreement backed Investor Notes program. Investor Note sales for
    the years ended December 31, 2006 and 2005 were
    $2.3 billion and $2.0 billion, respectively.
    General account spread is one of the main drivers of net income
    for the Institutional line of business. The increase in spread
    income in 2006 was driven by higher assets under management as
    noted above, combined with improved partnership income. For the
    year ended December 31, 2006 and 2005, income related to
    partnership investments were $15 and $6 after-tax, respectively.
    For the year ended December 31, 2006, earned premiums
    increased as a result of two large terminal funding cases that
    were sold during the period. This increase in earned premiums
    was offset by a corresponding increase in benefits, claims and
    claim adjustment expenses.
    PPLIs net income increased compared to prior year
    primarily due to asset growth in the variable business combined
    with favorable tax treatment. 39




---



##### Table of Contents




    IIP operating expenses increased in the year ended
    December 31, 2006 due to higher costs related to the launch
    of new retirement products targeting the baby boom
    generation in 2006.  Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    Total revenues increased in Institutional driven by positive net
    flows of $2.4 billion during 2005, which resulted in higher
    assets under management. Net flows for Institutional increased
    for the year ended December 31, 2005 compared to the prior
    year, primarily as a result of the Companys funding
    agreement backed Investor Notes program, which was launched in
    the third quarter of 2004. Investor Note sales for the years
    ended December 31, 2005 and 2004 were $2.0 billion and
    $643, respectively.
    General account spread is one of the main drivers of net income
    for the Institutional line of business. An increase in spread
    income in 2005 was driven by higher assets under management
    noted above, combined with improved partnership income and
    mortality gains related to terminal funding and structured
    settlement contracts that include life contingencies. For the
    year ended December 31, 2005 and 2004, gains related to
    mortality, investments or other activity were $10 and $3
    after-tax, respectively. During 2005, the Company invested in
    more variable rate assets to back the increasing block of
    variable rate liabilities sold under the stable value product
    line. This asset/liability matching strategy decreased portfolio
    yields, as variable rate assets had lower initial coupon yields
    then fixed rate assets. At the same time, the stable value
    variable rate liabilities have lower crediting rates in 2005
    than stable value fixed rate liabilities, which allowed the
    Company to
    maintain-to-slightly-increase
    its general account spread on a yield basis.
    PPLIs net income increased $3 or 17% compared to prior
    year primarily due to asset growth in the variable business
    combined with favorable mortality experience.    
    PPLIs cost of insurance charges has decreased due to
    reductions in the face amount of certain cases. These face
    reductions have also resulted in lower death benefits. This
    impact combined with favorable mortality, which increases the
    provision for future experience rate credits has led to the year
    over year decrease in fee income and other.  Outlook
     40




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##### Table of Contents



INDIVIDUAL
    LIFE  Operating
    Summary
  2006


2005


2004Fee income and other

$
825


$
742


$
705Earned premiums


(45
)


(26
)


(16
)Net investment income


292



272



269Net realized capital gains (losses)


4



3



8Total revenues


1,076



991



966Benefits, claims and claim
    adjustment expenses


447



420



424Insurance operating costs and
    other expenses


171



157



153Amortization of deferred policy
    acquisition costs


228



196



175Total benefits, claims and
    expenses


846



773



752Income before income taxes and
    cumulative effect of accounting change


230



218



214Income tax expense


72



69



70Income before cumulative effect
    of accounting change


158



149



144Cumulative effect of accounting
    change, net of tax(1)










(1
)Net income

$
158


$
149


$
143   Account values

2006


2005


2004Variable universal life

$
6,637


$
5,902


$
5,356Total account values

$
10,884


$
9,819


$
8,975     (1)
    
    Represents the cumulative impact of the Companys adoption
    of
    SOP 03-1.    Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    Cost of insurance charges, the largest component of fee income,
    increased $31 for the year ended December 31, 2006, driven
    by growth in the variable universal and universal life insurance
    inforce. Variable fee income increased, consistent with the
    growth in the variable universal life insurance account value.
    Other fee income, another component of total fee income,
    increased primarily due to additional amortization of deferred
    revenues of $46 associated with the DAC unlock.
    Amortization of DAC for the year ended December 31, 2006
    increased $70 related to the DAC unlock partially offset by
    revisions to prior year estimates. Excluding the impacts of the
    unlock and revisions, the amortization of DAC decreased for the
    year ended December 31, 2006, consistent with the mix of
    products and level and mix of product profitability.
    Net investment income increased primarily due to increased
    general account assets from sales growth. 41




---



##### Table of Contents




    Earned premiums, which include premiums for ceded reinsurance,
    decreased primarily due to increased ceded reinsurance premiums
    for the year ended December 31, 2006.
    Benefits, claims and claim adjustment expenses increased for
    2006, consistent with the growth in account values and life
    insurance inforce and also reflect favorable mortality
    experience in 2006 compared to 2005.
    Insurance operating costs and other expenses increased for the
    year ended December 31, 2006 consistent with the growth of
    life insurance inforce.  Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    Fee income increased $37 for the year ended December 31,
    2005 compared to 2004. Cost of insurance charges, a component of
    total fee income, increased $22 in 2005, driven by business
    growth and aging of the prior year block of variable universal,
    universal and interest-sensitive whole life insurance inforce.
    Other fee income, another component of total fee income,
    increased $9 in 2005 primarily due to growth and improved
    product performance primarily in interest-sensitive whole life
    and variable universal life insurance products. Variable fee
    income grew $6 in 2005, as equity market performance and
    premiums in excess of withdrawals added to the variable
    universal life account value.
    Net investment income increased moderately for the year ended
    December 31, 2005 compared to 2004 due to increased general
    account assets from business growth, partially offset by lower
    interest rates on new investments and reduced prepayments on
    bonds in 2005.
    Benefits, claims and claim adjustment expenses decreased for the
    year ended December 31, 2005 compared to 2004 consistent
    with growth in account values and life insurance inforce.
    Income tax expense and the resulting tax rate for the year ended
    December 31, 2005 was impacted by a DRD tax benefit of $7,
    whereas income tax expense for the year ended December 31,
    2004 included a DRD tax benefit of $5.
    Amortization of DAC increased for the year ended
    December 31, 2005 compared to 2004 primarily as a result of
    product mix and higher gross margins within variable universal
    and interest-sensitive whole life insurance products.
    Insurance operating costs and other expenses increased for the
    year ended December 31, 2005 compared to 2004 as a result
    of business growth.  Outlook
     42




---



##### Table of Contents



OTHER  Operating
    Summary
  2006


2005


2004Fee income and other

$
65


$
76


$
102Earned premiums


52



71



70Net investment income


288



268



234Net realized capital gains (losses)


(305
)


71



132Total revenues


100



486



538Benefits, claims and claim
    adjustment expenses


218



263



280Insurance operating costs and
    other expenses


(2
)


77



43Amortization of deferred policy
    acquisition costs and present value of future profits


47



2



Total benefits, claims and
    expenses


263



342



323(Losses) income before income
    taxes and cumulative effect of accounting change


(163
)


144



215Income tax expense(benefit)


(56
)


52



(117
)(Losses) income before
    cumulative effect of accounting change


(107
)


92



332Cumulative effect of accounting
    change, net of tax(1)










3Net income (loss)

$
(107
)


92



335     (1)
    
    Represents the cumulative impact of the Companys adoption
    of
    SOP 03-1.  Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
    
    Net realized capital losses occurred for the year ended
    December 31, 2006 compared to net realized capital gains in
    the prior year period due to increased
    other-than-temporary
    impairments (see the
    Other-Than-Temporary
    Impairments discussion within Investment Results for more
    information on the increase in impairments), increased realized
    losses associated with GMIB assumed, primarily driven by
    liability model refinements and assumption updates reflecting
    in-force demographics, actual experience and revised future
    expectations, and increased losses on sales of invested assets
    due to rising interest rates in 2006.
    During 2006, the Company achieved favorable settlements in
    several cases brought against the Company by policyholders
    regarding their purchase of broad-based leveraged corporate
    owned life insurance (leveraged COLI) policies in
    the early to mid-1990s. The Company ceased offering this product
    in 1996. Based on the favorable outcome of these cases, together
    with the Companys current assessment of the few remaining
    leveraged COLI cases, the Company reduced its estimate of the
    ultimate cost of these cases during 2006. This reserve
    reduction, recorded in insurance operating costs and other
    expenses, resulted in an after-tax benefit of $34.
    Also contributing to the insurance operating costs and other
    expenses decreases for the year ended December 31, 2006 was
    a lower level of dividends to leveraged COLI policyholders.
    The increase in DAC amortization in 2006 was due to the DAC
    unlock of $46, after-tax. 43




---



##### Table of Contents



Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
    
    Net realized capital gains decreased for the year ended
    December 31, 2005 due to increasing interest rates and the
    realized loss associated with the GMWB derivatives.
    Income tax benefit decreased for the year ended
    December 31, 2005 due to the absence of a $191 tax benefit
    recorded during 2004.
    Life recorded an after tax charge of $14 for the year ended
    December 31, 2005 to establish reserves for regulatory
    matters. INVESTMENTS  General
             44




---



##### Table of Contents



other-than-temporary other-than-temporary other-than-temporary Other-Than-Temporary Available-for-Sale
  Valuation
    of Investments and Derivative Instruments
  available-for-sale
  Valuation
    of Fixed Maturities
     45




---



##### Table of Contents



2006


2005Percentage





Percentageof Total





of TotalFair Value


Fair Value


Fair Value


Fair ValuePriced via independent market
    quotations

$
37,190



82.0
%

$
36,055



83.4
%Priced via broker quotations


3,567



7.9
%


2,271



5.2
%Priced via matrices


3,810



8.4
%


3,667



8.5
%Priced via other methods


79



0.2
%


202



0.5
%Short-term investments(1)


694



1.5
%


1,047



2.4
%Total

$
45,340



100.0
%

$
43,242



100.0
%     (1)
    
    Short-term investments are primarily valued at amortized cost,
    which approximates fair value.    Valuation
    of Derivative Instruments
        Composition
    of Invested Assets
  2006


2005Amount


Percent


Amount


PercentFixed maturities,
    available-for-sale,
    at fair value

$
45,340



88.4
%

$
43,242



91.1
%Equity securities,
    available-for-sale,
    at fair value


275



0.5
%


310



0.7
%Policy loans, at outstanding
    balance


2,009



3.9
%


1,971



4.1
%Mortgage loans, at amortized cost


2,631



5.2
%


1,355



2.9
%Limited partnerships


750



1.5
%


423



0.9
%Other investments


275



0.5
%


157



0.3
%Total investments

$
51,280



100.0
%

$
47,458



100.0
%    46




---



##### Table of Contents



Composition
    of Limited Partnerships
  2006


2005Amount


Percent


Amount


PercentHedge funds(1)

$
400



53.3
%

$
128



30.3
%Private equity funds(2)


209



27.9
%


178



42.1
%Mortgage and real estate funds(3)


41



5.5
%


6



1.4
%Mezzanine debt funds(4)


100



13.3
%


111



26.2
%Total

$
750



100.0
%

$
423



100.0
%     (1)
    
    Hedge funds include investments in funds of funds as well as
    direct funds. The hedge funds of funds invest in approximately
    40 to 90 different hedge funds within a variety of investment
    styles. Examples of hedge fund strategies include long/short
    equity or credit, event driven strategies and structured credit.(2)
    
    Private equity funds consist of investments in funds whose
    assets typically consist of a diversified pool of investments in
    small non-public businesses with high growth potential.(3)
    
    Mortgage and real estate funds consist of investments in funds
    whose assets consist of mortgage loans, participations in
    mortgage loans, mezzanine loans or other notes which may be
    below investment grade credit quality as well as equity real
    estate.(4)
    
    Mezzanine debt funds consist of investments in funds whose
    assets consist of subordinated debt that often times
    incorporates equity-based options such as warrants and a limited
    amount of direct equity investments. 47




---



##### Table of Contents



Investment
    Results
    2006


2005


2004(Before-tax)Net investment income 
    excluding income on policy loans

$
2,588


$
2,427


$
2,287Policy loan income


140



142



183Net investment income 
    total

$
2,728


$
2,569


$
2,470Yield on average invested assets(1)


5.8
%


5.7
%


5.8
%Gross gains on sale

$
199


$
310


$
326Gross losses on sale


(235
)


(218
)


(133
)ImpairmentsCredit related


(10
)


(23
)


(16
)Other


(61
)


(4
)


(2
)Total impairments


(71
)


(27
)


(18
)Japanese fixed annuity contract
    hedges, net(2)


(17
)


(36
)


3Periodic net coupon settlements on
    credit derivatives/Japan


(48
)


(32
)


7GMWB derivatives, net


(26
)


(55
)


GMIB


(53
)


113



Other, net(3)


(48
)


20



(45
)Net realized capital gains
    (losses), before-tax

$
(299
)

$
75


$
140     (1)
    
    Represents annualized net investment income divided by the
    monthly weighted average invested assets at cost or amortized
    cost, as applicable, excluding the collateral received
    associated with securities lending programs and consolidated
    variable interest entity minority interests.(2)
    
    Relates to the Japanese fixed annuity product (product and
    related derivative hedging instruments excluding periodic net
    coupon settlements).(3)
    
    Primarily consists of changes in fair value on non-qualifying
    derivatives, changes in fair value of certain derivatives in
    fair value hedge relationships and hedge ineffectiveness on
    qualifying derivative instruments.  Year
    ended December 31, 2006 compared to the year ended
    December 31, 2005
       48




---



##### Table of Contents




    The net losses on fixed maturity sales for the year ended
    December 31, 2006, were primarily the result of rising
    interest rates from the date of security purchase and, to a
    lesser extent, credit spread widening on certain issuers that
    were sold. For further discussion of gross gains and losses, see
    below.
    The net losses in 2006 related to GMIB were primarily driven by
    liability model refinements and assumption updates reflecting
    in-force demographics, actual experience, and revised future
    expectations, partially offset by positive movements in Japanese
    equity markets. The net gains in 2005 were primarily driven by
    positive movements in the global bond market and the Japanese
    equity market.
    Other, net losses were primarily driven from the change in value
    of non-qualifying derivatives due to fluctuations in interest
    rates and foreign currency exchange rates. These losses were
    partially offset by a before-tax benefit of $25 received from
    the WorldCom security settlement.
    See the Other-Than-Temporary Impairments section that follows
    for information on impairment losses.
    The periodic net coupon settlements on credit derivatives and
    the Japan fixed annuity cross currency swaps include the net
    periodic income/expense or coupon associated with the swap
    contracts. The net losses for the years ended December 31,
    2006 and 2005, were primarily associated with the Japan fixed
    annuity cross currency swaps and resulted from the interest rate
    differential between U.S. and Japanese interest rates. The
    increase in net losses in 2006 was primarily due to higher U.S.
    interest rates.
    A reduction in losses in 2006 compared to 2005, associated with
    the GMWB derivatives were primarily driven by a more significant
    impact from liability model refinements and assumption updates
    in 2005 as compared to 2006. For further discussion of the GMWB
    rider valuation assumption, see the Capital Markets Risk
    Management section of the MD&A under Market
    Risk  Key Market Risk Exposures.
    The Japanese fixed annuity contract hedges net amount consists
    of the foreign currency transaction remeasurements associated
    with the Yen denominated fixed annuity contracts offered in
    Japan, and reinsured to the Company, and the corresponding
    offsetting cross currency swaps. Although the reinsured Japanese
    fixed annuity contracts are economically hedged, the net
    realized capital gains and losses result from the mixed
    attribute accounting model, which requires fixed annuity
    liabilities to be recorded at cost and remeasured only for
    foreign currency exchange rates but the associated derivatives
    to be reported at fair value. The net realized capital losses
    for the year ended December 31, 2006, resulted primarily
    from rising Japan interest rates while net realized capital
    losses for the year ended December 31, 2005, resulted from
    declining U.S. interest rates and rising Japan interest rates.
    The decrease in loss from 2005 to 2006 is primarily due to the
    hedging instruments used to manage the yen currency risk
    associated with the yen fixed annuities. Throughout 2006, the
    Company used pay variable U.S. dollar receive fixed yen, zero
    coupon currency swaps. While during the first half of 2005, the
    Company used a pay fixed U.S. dollar receive fixed yen,
    zero coupon currency swap which resulted in higher losses in
    2005 as a result of U.S. interest rates. For additional
    discussion of the Japanese fixed annuity contract hedges see the
    Capital Markets Risk Management section of the MD&A under
    Market Risk  Key Market Risk Exposures
    and Note 3 of Notes to Consolidated Financial Statements.     49




---



##### Table of Contents



Year
    ended December 31, 2005 compared to the year ended
    December 31, 2004
        
    The lower net gains on fixed maturity sales in 2005 were
    primarily the result of rising interest rates and losses
    associated with a major automotive manufacturer. See additional
    discussion of the gross gains and losses on sales below.
    Higher net realized capital losses in 2005 resulted from rising
    Japanese interest rates, and in the first half of the year, a
    decrease in U.S. interest rates. For additional discussion of
    the Japanese fixed annuity contract hedges see the Capital
    Markets Risk Management section of the MD&A under
    Market Risk  Key Market Risk Exposures
    and Note 3 of Notes to Consolidated Financial Statements.
    The periodic net coupon settlements on credit derivatives and
    the reinsured Japanese fixed annuity cross currency swaps
    includes the net periodic income/expense or coupon associated
    with the swap contracts. The net loss for 2005 is associated
    with the reinsured Japan fixed annuity cross currency swaps and
    results from the interest rate differential between U.S. and
    Japanese interest rates. The Japanese fixed annuity product was
    first offered in the fourth quarter 2004 by Hartford Life
    Insurance KK (HLIKK), a wholly-owned Japanese
    subsidiary of Hartford Life, Inc., and subsequently reinsured to
    the Company. The adverse change in 2005 in comparison to 2004
    primarily resulted from a full year of the Japanese fixed
    annuity product swap accruals in 2005.
    The increase in net realized losses associated with the GMWB
    derivatives were primarily driven by the impact of liability
    model assumption updates in 2005. For further discussion of the
    GMWB rider valuation assumption, see the Capital Markets Risk
    Management section of the MD&A under Market
    Risk  Key Market Risk Exposures.
    The gains associated with the GMIB reinsurance were primarily
    driven by the positive movement in the global bond market and
    the Japanese equity market. For further discussion of the GMIB,
    see the Capital Markets Risk Management section of the MD&A
    under Market Risk  Key Market Risk
    Exposures.   50




---



##### Table of Contents



Separate
    Account Products
    Variable
    Interest Entities (VIE)
      December 31, 2006


December 31, 2005Maximum








MaximumTotal





Exposure to


Total





Exposure toAssets


Liability(4)


Loss(2)(3)


Assets


Liability(4)


Loss(2)(3)Collaterized debt obligations
    (CDOs) and other funds(1)(2)

$
296


$
167


$
129


$
77


$
42


$
35Limited partnerships(3)


103



15



88











Total(5)

$
399


$
182


$
217


$
77


$
42


$
35     (1)
    
    The Company provides collateral management services and earns a
    fee associated with these structures.(2)
    
    The maximum exposure to loss is the Companys co-investment
    in these structures.(3)
    
    The maximum exposure to loss is equal to the carrying value of
    the investment plus any unfunded commitments.(4)
    
    Creditors have no recourse against the Company in the event of
    default by the VIE.(5)
    
    As of December 31, 2006 and 2005, the Company had
    relationships with four and two VIEs, respectively, where the
    Company was the primary beneficiary.   51




---



##### Table of Contents



Other-Than-Temporary
    Impairments
        2006


2005


2004ABS

$
8


$
2


$
6Commercial mortgages










3CMBS/Collateralized mortgage
    obligations (CMO)


1



1



3Corporate


59



24



4Equity


3







MBS  interest only
    securities










2Total
    other-than-temporary
    impairments

$
71


$
27


$
18Credit related

$
10


$
23


$
16Other


61



4



2Total
    other-than-temporary
    impairments

$
71


$
27


$
18     2006
     52




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##### Table of Contents



2005
    
    Approximately $13 of other-than-temporary impairments recorded
    on corporate securities related to three Canadian paper
    companies. These companies operations have recently
    suffered from high energy prices and falling demand, in part due
    to the appreciation of the Canadian dollar in comparison to the
    U.S. dollar. These investments continue to perform in
    accordance with the contractual terms of the securities. As of
    December 31, 2005, the Company held approximately $82 of
    securities issued by these three companies in a total net
    unrealized loss position of $5. Substantially all of the
    securities in an unrealized loss position as of
    December 31, 2005 were depressed only to a minor extent
    and, as a result, the unrealized losses were deemed to be
    temporary in nature.
    Also included in the corporate securities other-than-temporary
    impairment amount for 2005 was $6 recorded on securities related
    to two major automotive manufacturers. The market values of
    these securities had fallen due to a downward adjustment in
    earnings and cash flow guidance primarily due to sluggish sales,
    rising employee and retiree benefit costs and an increased debt
    service burden. Through 2005, these investments performed in
    accordance with the contractual terms of the securities. As of
    December 31, 2005, the Company held approximately $65 of
    securities issued by these two companies in a total net
    unrealized loss position of $4. Substantially all of the
    securities in an unrealized loss position as of
    December 31, 2005 were depressed only to a minor extent
    and, as a result, the unrealized losses were deemed to be
    temporary in nature.  2004
   INVESTMENT
    CREDIT RISK       53




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##### Table of Contents



Derivative
    Instruments
      
    Total return swaps and credit spreadlocks involve the periodic
    exchange of payments with other parties, at specified intervals,
    calculated using the agreed upon index and notional principal
    amounts. Generally, no cash or principal payments are exchanged
    at the inception of the contract. Typically, at the time a swap
    is entered into, the cash flow streams exchanged by the
    counterparties are equal in value. As of December 31, 2006
    and 2005, the notional value of total return swaps and credit
    spreadlocks, which exposed the Company to credit risk, totaled
    $1.6 billion and $1.3 billion, respectively, and the
    fair value totaled $1 and $4, respectively.
    Credit default swaps involve a transfer of credit risk of one or
    many referenced entities from one party to another in exchange
    for periodic payments. One party to the contract will make a
    payment based on an agreed upon rate and a notional amount. The
    second party, who assumes credit exposure, will typically make a
    payment when there is a credit event and such payment will be
    equal to the notional value of the swap contract less the value
    of the referenced security issuer debt obligation. A credit
    event is generally defined as default on contractually obligated
    interest or principal payments or bankruptcy. Certain credit
    default swaps require an upfront premium to be paid at inception
    of the contract. During 2006, the Company began using credit
    default swaps to replicate residual CDO interests. These
    transactions involve the receipt of cash upon entering into the
    transaction as well as coupon payments throughout the life of
    the contract. The upfront cash receipts for positions at
    December 31, 2006, totaled $100, which represents the
    original liability value of the credit default swaps. For credit
    default swaps in which the Company is exposed to credit risk, as
    of December 31, 2006 and 2005, the notional value totaled
    $1.2 billion and $499, respectively, and the fair value
    totaled $(92) and $(3), respectively. As of December 31,
    2006, the average S&P rating for these referenced security
    issuer debt obligations is BBB+. For credit default swaps in
    which the Company has reduced its credit exposure, as of
    December 31, 2006 and 2005, the notional value totaled
    $1.9 billion and $179, respectively, and the fair value
    totaled $(8) and $2, respectively. As of December 31, 2006,
    the average S&P rating for these referenced security issuer
    debt obligations is BBB. The increase in notional value of risk
    reducing credit default swaps since December 31, 2005,
    primarily related to negative basis trades. These trades involve
    the purchase of a cash bond along with credit protection on the
    issuer through a credit default swap in order to lock in a
    positive spread to LIBOR. 54




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##### Table of Contents



Fixed
    Maturities
    Fixed
    Maturities by Type
  2006


2005Percent














Percentof Total














of TotalAmortized


Unrealized


Unrealized


Fair


Fair


Amortized


Unrealized


Unrealized


Fair


FairCost


Gains


Losses


Value


Value


Cost


Gains


Losses


Value


ValueABS

$
6,373


$
38


$
(44
)

$
6,367



14.0
%

$
6,383


$
44


$
(73
)

$
6,354



14.7
%CMBS


10,603



146



(68
)


10,681



23.6
%


8,311



159



(85
)


8,385



19.4
%CMOs


854



8



(5
)


857



1.9
%


764



3



(4
)


763



1.8
%CorporateBasic industry


1,794



60



(17
)


1,837



4.1
%


2,004



77



(33
)


2,048



4.7
%Capital goods


1,648



90



(10
)


1,728



3.8
%


1,479



86



(14
)


1,551



3.6
%Consumer cyclical


2,031



73



(19
)


2,085



4.6
%


1,956



71



(32
)


1,995



4.6
%Consumer non-cyclical


2,111



64



(24
)


2,151



4.7
%


2,096



115



(20
)


2,191



5.1
%Energy


1,164



56



(9
)


1,211



2.7
%


1,006



101



(7
)


1,100



2.5
%Financial services


6,380



242



(45
)


6,577



14.5
%


5,861



273



(46
)


6,088



14.1
%Technology and communications


2,584



140



(24
)


2,700



6.0
%


2,653



177



(28
)


2,802



6.5
%Transportation


546



14



(6
)


554



1.2
%


622



29



(5
)


646



1.5
%Utilities


2,663



151



(40
)


2,774



6.1
%


2,445



147



(26
)


2,566



5.9
%Other


1,061



21



(12
)


1,070



2.4
%


1,057



22



(15
)


1,064



2.5
%Government/Government agenciesForeign


568



44



(4
)


608



1.3
%


646



43



(4
)


685



1.6
%United States


542



2



(5
)


539



1.2
%


435



23



(2
)


456



1.1
%MBS  agency


1,808



6



(31
)


1,783



3.9
%


2,559



6



(39
)


2,526



5.8
%Municipal


1,114



23



(15
)


1,122



2.5
%


926



47



(4
)


969



2.2
%Redeemable preferred stock


2











2







6











6



Short-term


694











694



1.5
%


1,047











1,047



2.4
%Total fixed maturities

$
44,540


$
1,178


$
(378
)

$
45,340



100.0
%

$
42,256


$
1,423


$
(437
)

$
43,242



100.0
%          55




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##### Table of Contents



Consolidated
    Fixed Maturities by Credit Quality
  2006


2005Percent of








Percent ofAmortized





Total Fair


Amortized





Total FairCost


Fair Value


Value


Cost


Fair Value


ValueUnited States
    Government/Government agencies

$
3,532


$
3,513



7.8
%

$
3,705


$
3,691



8.5
%AAA


10,851



10,923



24.1
%


8,436



8,524



19.7
%AA


5,334



5,402



11.9
%


5,128



5,222



12.1
%A


11,206



11,657



25.7
%


11,748



12,297



28.5
%BBB


11,104



11,308



24.9
%


10,748



11,019



25.5
%BB & below


1,819



1,843



4.1
%


1,444



1,442



3.3
%Short-term


694



694



1.5
%


1,047



1,047



2.4
%Total fixed
    maturities

$
44,540


$
45,340



100.0
%

$
42,256


$
43,242



100.0
%  56




---



##### Table of Contents



Unrealized
    Loss Aging of Total Available-for-Sale Securities
  2006


2005Amortized


Fair


Unrealized


Amortized


Fair


UnrealizedCost


Value


Loss


Cost


Value


LossThree months or less

$
7,193


$
7,132


$
(61
)

$
9,637


$
9,483


$
(154
)Greater than three months to six
    months


959



948



(11
)


3,074



3,000



(74
)Greater than six months to nine
    months


775



757



(18
)


769



752



(17
)Greater than nine months to twelve
    months


1,104



1,087



(17
)


1,890



1,829



(61
)Greater than twelve months


8,537



8,260



(277
)


2,737



2,603



(134
)Total

$
18,568


$
18,184


$
(384
)

$
18,107


$
17,667


$
(440
)        57




---



##### Table of Contents



available-for-sale
  Total
    Available-for-Sale
    Securities with Unrealized Loss Greater Than Six Months by
    Type
  2006


2005Percent of











Percent ofTotal











TotalAmortized


Fair


Unrealized


Unrealized


Amortized


Fair


Unrealized


UnrealizedCost


Value


Loss


Loss


Cost


Value


Loss


LossABSAircraft lease receivables

$
99


$
73


$
(26
)


8.3
%

$
160


$
113


$
(47
)


22.2
%CDOs


130



126



(4
)


1.3
%


25



24



(1
)


0.5
%Credit card receivables


97



95



(2
)


0.6
%


109



107



(2
)


0.9
%Other ABS


509



497



(12
)


3.8
%


493



484



(9
)


4.2
%CMBS


2,399



2,345



(54
)


17.4
%


1,227



1,193



(34
)


16.0
%CorporateBasic industry


476



463



(13
)


4.2
%


317



304



(13
)


6.1
%Consumer cyclical


372



357



(15
)


4.8
%


270



256



(14
)


6.6
%Consumer non-cyclical


572



553



(19
)


6.1
%


210



199



(11
)


5.2
%Financial services


1,581



1,547



(34
)


10.9
%


978



951



(27
)


12.7
%Technology and communications


500



481



(19
)


6.1
%


249



237



(12
)


5.7
%Transportation


151



146



(5
)


1.6
%


30



30







Utilities


748



717



(31
)


9.9
%


98



93



(5
)


2.4
%Other


791



765



(26
)


8.3
%


294



280



(14
)


6.6
%Other securities


1,991



1,939



(52
)


16.7
%


936



913



(23
)


10.9
%Total

$
10,416


$
10,104


$
(312
)


100.0
%

$
5,396


$
5,184


$
(212
)


100.0
%   other-than-temporary
  CMBS
  Financial services
 58




---



##### Table of Contents



Utilities
  Aircraft lease receivables
  other-than-temporary
  other-than-temporary other-than-temporary. Other-Than-Temporary Available-for-Sale
 CAPITAL
    MARKETS RISK MANAGEMENT    Market
    Risk
  and/or
  Interest
    Rate Risk
  and/or term-to-maturity
 59




---



##### Table of Contents



Equity
    Risk
    Foreign
    Currency Exchange Risk
  non-U.S. dollar
 60




---



##### Table of Contents



Derivative
    Instruments
                  Key
    Market Risk Exposures
    non-U.S. dollar non-U.S. dollar
 61




---



##### Table of Contents



Interest
    Rate Risk
  and/or
  Fixed
    Maturity Investments
    Liabilities
        and/or
  Derivatives
   62




---



##### Table of Contents



Calculated
    Interest Rate Sensitivity
    Change in Net Economic Value as of December 31,2006


2005Basis point shift


−100



+ 100



−100



+ 100Amount

$
(29
)

$



$
(53
)

$
3       Change in Fair Value as of December 31,2006


2005Basis point shift


−100



+ 100



−100



+ 100Amount

$
398


$
(390
)

$
436


$
(419
)    63




---



##### Table of Contents



Equity
    Risk
           64




---



##### Table of Contents



SOP 03-1 SOP 03-1, SOP 03-1 SOP 03-1. SOP 03-1.
  SOP 03-1,
  in-the-money
  in-the-money
 65




---



##### Table of Contents



SOP 03-1, Accounting and Reporting by Insurance Enterprises for
    Certain Nontraditional Long-Duration Contracts and for Separate
    Accounts
             66




---



##### Table of Contents



Foreign
    Currency Exchange Risk
  non-U.S. dollar
  Fixed
    Maturity Investments
  non-U.S. dollar non-U.S. dollar non-U.S. dollar
  Liabilities
  non-U.S. dollar
 67




---



##### Table of Contents



non-U.S. dollar
 CAPITAL
    RESOURCES AND LIQUIDITY    Debt
  Consumer
    Notes
     68




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodLess than








More thanTotal


1 Year


1-3 Years


3-5 Years


5 YearsOperating leases

$
113



32



52



25



4Policyholder obligations(1)


362,372



21,925



47,122



47,411



245,914Other long-term liabilities


2,578



2,536











42Consumer Notes


289



14



255



20



Total

$
365,352



24,507



47,429



47,456



245,960     (1)
    
    Estimated life and annuity obligations include death claims,
    policy surrenders, policyholder dividends, and trail commissions
    offset by expected future deposits and premiums on in-force
    contracts. Estimated contractual policyholder obligations are
    based on mortality and lapse assumptions comparable with
    Companys historical experience, modified for recent
    observed trends. The Company has also assumed market growth and
    interest crediting consistent with assumptions used in
    amortizing deferred acquisition costs. In contrast to this
    table, the majority of the Companys obligations are
    recorded on the balance sheet at the current account value, as
    described in Critical Accounting Estimates, and do not
    incorporate an expectation of future market growth, interest
    crediting, or future deposits. Therefore, the estimated
    contractual policyholder obligations presented in this table
    significantly exceed the liabilities recorded in reserve for
    future policy benefits and unpaid claims and claim adjustment
    expenses, other policyholder funds and benefits payable and
    separate account liabilities. Due to the significance of the
    assumptions used, the amounts presented could materially differ
    from actual results. As separate account obligations are legally
    insulated from general account obligations, the separate account
    obligations will be fully funded by cash flows from separate
    account assets. The Company expects to fully fund the general
    account obligations from cash flows from general account
    investments and future deposits and premiums.  Cash Flow

2006


2005


2004Cash provided by operating
    activities

$
2,765


$
1,288


$
755Cash used for investing activities


(4,348
)


(2,357
)


(915
)Cash provided by financing
    activities


1,644



978



280Cash  End of
    Year


186



124



216   2006 Compared to 2005
  2005 Compared to 2004
 69




---



##### Table of Contents



Dividends
    Ratings
      A.M. Best


Fitch


Standard & Poors


MoodysInsurance
    RatingsHartford Life Insurance Company


A+



AA



AA−



Aa3Hartford Life and Annuity


A+



AA



AA−



Aa3Other RatingsHartford Life Insurance Company:Short Term Rating










A-1+



P-1Consumer Notes


A+



AA−



AA−



A-1     Equity
    Markets
    Risk-Based
    Capital
    Contingencies
  Legal Proceedings
  Dependence on Certain Third Party
    Relationships
 70




---



##### Table of Contents



Regulatory Developments
    Legislative
    Initiatives
     IMPACT OF
    NEW ACCOUNTING STANDARDS    Item 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK    Item 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA   71




---



##### Table of Contents



Item 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE    Item 9A.
    CONTROLS
    AND PROCEDURES  Evaluation
    of disclosure controls and procedures
  Rule 13a-15(e)) Rule 13a-15(e)
  Changes
    in internal control over financial reporting
    Item 9B.
    OTHER
    INFORMATION   PART III  Item 14.
    PRINCIPAL
    ACCOUNTING FEES AND SERVICES    Year Ended


Year EndedDecember 31,


December 31,2006


2005(1) Audit fees

$
6,621,494


$
4,813,471(2) Audit-related fees(a)






36,730(3) Tax fees(b)






11,000(4) All other fees


85,251



     (a)
    
    Fees for the year ended December 31, 2006 principally
    consisted of internal control reviews. Fees for the year ended
    December 31, 2005 principally consisted of due diligence
    assistance and services relating to acquisitions and
    divestitures and internal control reviews.(b)
    
    Principally consisted of domestic tax compliance services and
    tax examination assistance.     72




---



##### Table of Contents



PART IV  Item 15.
    EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES    Consolidated Financial Statements.
  Consolidated Financial Statement Schedules.
  Exhibits.
 73




---



##### Table of Contents



INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
  Page(s)Report of
    Independent Registered Public Accounting Firm


F-2Consolidated
    Statements of Income for the three years ended December 31,
    2006


F-3Consolidated
    Balance Sheets as of December 31, 2006 and 2005


F-4Consolidated
    Statements of Changes in Stockholders Equity for the three
    years ended December 31, 2006


F-5Consolidated
    Statements of Cash Flows for the three years ended
    December 31, 2006


F-6Notes to
    Consolidated Financial Statements


F-7Schedule
    I   Summary of Investments  Other Than
    Investments in Affiliates


S-1Schedule III 
    Supplementary Insurance Information


S-2Schedule
    IV  Reinsurance


S-3  F-1




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM      S-1 S-3.
            F-2




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  Consolidated
    Statements of Income
  For the Years Ended December 31,2006


2005


2004(In millions)RevenuesFee income and other

$
3,113


$
2,811


$
2,592Earned premiums


547



449



484Net investment income


2,728



2,569



2,470Net realized capital gains (losses)


(299
)


75



140Total revenues


6,089



5,904



5,686Benefits, claims and
    expensesBenefits, claims and claim
    adjustment expenses


3,205



3,008



3,111Insurance expenses and other


853



798



709Amortization of deferred policy
    acquisition costs and present value of future profits


1,175



945



825Dividends to policyholders


22



37



29Total benefits, claims and
    expenses


5,255



4,788



4,674Income before income tax
    expense and cumulative effect of accounting changes


834



1,116



1,012Income tax expense


103



207



29Income before cumulative effect
    of accounting changes


731



909



983Cumulative effect of accounting
    changes, net of tax










(18
)Net income

$
731


$
909


$
965    F-3




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  Consolidated
    Balance Sheets
  As of December 31,2006


2005(In millions,except for share data)ASSETSInvestmentsFixed maturities, available for
    sale, at fair value (amortized cost of $44,540  and $42,256)

$
45,340


$
43,242Equity securities, available for
    sale, at fair value (cost of $267 and $303)


275



310Equity securities, held for
    trading, at fair value


1



1Policy loans, at outstanding
    balance


2,009



1,971Mortgage loans on real estate


2,631



1,355Other investments


1,024



579Total investments


51,280



47,458Cash


186



124Premiums receivable and
    agents balances


29



23Reinsurance recoverables


1,393



1,114Deferred policy acquisition costs
    and present value of future profits


7,334



7,101Deferred income taxes


(491
)


(516
)Goodwill


186



186Other assets


1,290



1,611Separate account assets


179,943



150,523Total assets

$
241,150


$
207,624LIABILITIESReserve for future policy benefits

$
8,209


$
7,406Other policyholder funds


40,191



38,399Consumer Notes


258



Other liabilities


4,890



3,959Separate account liabilities


179,943



150,523Total liabilities


233,491



200,287Commitments and contingent
    liabilities, Note 11






Stockholders
    EquityCommon stock 
    1,000 shares authorized, issued and outstanding, par value
    $5,690


6



6Capital surplus


2,586



2,405Accumulated other comprehensive
    incomeNet unrealized capital gains on
    securities, net of tax


290



464Foreign currency translation
    adjustments


1



(1
)Total accumulated other
    comprehensive income


291



463Retained earnings


4,777



4,463Total stockholders
    equity


7,660



7,337Total liabilities and
    stockholders equity

$
241,150


$
207,624    F-4




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  Consolidated
    Statements Of Changes In Stockholders Equity
  Accumulated OtherComprehensive Income (Loss)Net Unrealized


Net (Loss)Capital


Gain On Cash


ForeignGains (Losses)


Flow Hedging


Currency





TotalCommon


Capital


On Securities,


Instruments,


Translation


Retained


StockholdersStock


Surplus


Net of Tax


Net of Tax


Adjustments


Earnings


Equity(In millions)2006Balance, December 31, 2005

$
6


$
2,405


$
577


$
(113
)

$
(1
)

$
4,463


$
7,337Comprehensive incomeNet income






















731



731Other comprehensive income, net of
    tax(1)Net change in unrealized capital
    gains (losses) on securities(2)










(77
)














(77
)Net loss on cash flow hedging
    instruments














(97
)










(97
)Cumulative translation adjustments


















2







2Total other comprehensive incomeTotal comprehensive incomeCapital contribution from parent






181



















181Dividends declared






















(417
)


(417
)Balance, December 31,
    2006

$
6


$
2,586


$
500


$
(210
)

$
1


$
4,777


$
7,6602005Balance, December 31, 2004

$
6


$
2,240


$
1,124


$
(184
)

$
(1
)

$
4,064


$
7,249Comprehensive incomeNet income






















909



909Other comprehensive income, net of
    tax(1)Net change in unrealized capital
    gains (losses) on securities(2)










(547
)














(547
)Net loss on cash flow hedging
    instruments














71











71Total other comprehensive income


























(476
)Total comprehensive
    income


























433Capital contribution from parent






165



















165Dividends declared






















(510
)


(510
)Balance, December 31,
    2005

$
6


$
2,405


$
577


$
(113
)

$
(1
)

$
4,463


$
7,3372004Balance, December 31, 2003

$
6


$
2,240


$
728


$
(17
)

$
(1
)

$
3,648


$
6,604Comprehensive incomeNet income






















965



965Other comprehensive income, net of
    tax(1)Cumulative effect of accounting
    change










292















292Net change in unrealized capital
    gains (losses) on securities(2)










104















104Net loss on cash flow hedging
    instruments














(167
)










(167
)Total other comprehensive income


























229Total comprehensive
    income


























1,194Dividends declared






















(549
)


(549
)Balance, December 31,
    2004

$
6


$
2,240


$
1,124


$
(184
)

$
(1
)

$
4,064


$
7,249     (1)
    
    Net change in unrealized capital gain on securities is reflected
    net of tax provision (benefit) and other items of $(42), $(295),
    and $56 for the years ended December 31, 2006, 2005 and
    2004, respectively. Net (loss) gain on cash flow hedging
    instruments is net of tax provision (benefit) of $(52), $38 and
    $(90) for the years ended December 31, 2006, 2005 and 2004,
    respectively. There is no tax effect on cumulative translation
    adjustments.(2)
    
    There were reclassification adjustments for after-tax gains
    (losses) realized in net income of $(75), $26 and $78 for the
    years ended December 31, 2006, 2005 and 2004 respectively.   F-5




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  Consolidated
    Statements of Cash Flows
  For the Years Ended December 31,2006


2005


2004(In millions)Operating
    ActivitiesNet income

$
731


$
909


$
965Adjustments to reconcile net
    income to net cash provided by operating
    activitiesAmortization of deferred policy
    acquisition costs and present value of future profits


1,175



945



825Additions to deferred policy
    acquisition costs and present value of future profits


(1,351
)


(1,226
)


(1,375
)Change in:Reserve for future policy benefits,
    unpaid losses and loss adjustment expenses and unearned premiums


836



129



726Reinsurance recoverables


(47
)


177



(15
)Receivables


11



(3
)


(3
)Payables and accruals


210



385



(212
)Accrued and deferred income taxes


340



36



(21
)Net realized capital losses (gains)


299



(75
)


(140
)Depreciation and amortization


404



239



73Cumulative effect of accounting
    change, net of tax










18Other, net


157



(228
)


(86
)Net cash provided by operating
    activities


2,765



1,288



755Investing
    ActivitiesProceeds from the
    sale/maturity/prepayment of:Fixed maturities,
    available-for-sale


19,517



19,727



18,457Equity securities,
    available-for-sale


249



38



75Mortgage loans


301



354



238Partnerships


91



169



34Payments for the purchase of:Fixed maturities,
    available-for-sale


(22,017
)


(21,511
)


(19,309
)Equity securities,
    available-for-sale


(455
)


(60
)


(92
)Mortgage loans


(1,574
)


(915
)


(564
)Partnerships


(496
)


(337
)


(111
)Change in policy loans, net


(39
)


647



(148
)Change in payables for collateral
    under securities lending, net


788



(276
)


19Change in all other, net


(713
)


(193
)


486Net cash used for investing
    activities


(4,348
)


(2,357
)


(915
)Financing
    ActivitiesCapital contributions






129



Dividends paid


(300
)


(498
)


(549
)Proceeds from issuance of consumer
    notes


258







Net receipts from investment and
    universal life-type contracts


1,686



1,347



829Net cash provided by financing
    activities


1,644



978



280Impact of foreign exchange


1



(1
)


Net (decrease) increase in cash


62



(92
)


120Cash  beginning of year


124



216



96Cash  end of
    year

$
186


$
124


$
216Supplemental Disclosure of
    Cash Flow Information:Net Cash (Received) Paid
    During the Year for:Income taxes

$
(163
)

$
149


$
42     Supplemental
    schedule of noncash operating and financing
    activities:
       F-6




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
 (Dollar
    amounts in millions, unless otherwise stated)
  Note 1.
    Basis of
    Presentation and Accounting Policies  Basis of
    Presentation 
        Consolidation 
    
    Use of
    Estimates  
    other-than-temporary available-for-sale
 F-7




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Reclassifications 
    Adoption
    of New Accounting Standards 
  Considering
    the Effects of Prior Year Misstatements when Quantifying
    Misstatements in Current Year Financial Statements
    Share-Based
    Payment
    The
    Meaning of
    Other-Than-Temporary
    Impairment and Its Application to Certain
    Investments
  FAS 115-1 FAS 124-1, Other-Than-Temporary 115-1), No. 03-1, Other-Than-Temporary 03-1). 115-1 No. 03-1 other-than-temporary; other-than-temporary, 115-1 other-than-temporary other-than-temporary other-than-temporary 115-1
  Non-Traditional
    Long Duration Contracts
  03-1,
 F-8




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (SOP 03-1). SOP 03-1 SOP 03-1
  
    Recognizing expenses for a variety of contracts and contract
    features, including guaranteed minimum death benefits
    (GMDB), certain death benefits on universal-life
    type contracts and annuitization options, on an accrual basis
    versus the previous method of recognition upon payment;
    Reporting and measuring assets and liabilities of certain
    separate account products as general account assets and
    liabilities when specified criteria are not met;
    Reporting and measuring the Companys interest in its
    separate accounts as general account assets based on the
    insurers proportionate beneficial interest in the separate
    accounts underlying assets; and
    Capitalizing sales inducements that meet specified criteria and
    amortizing such amounts over the life of the contracts using the
    same methodology as used for amortizing deferred acquisition
    costs (DAC).  SOP 03-1 SOP 03-1
  OtherComprehensiveComponents of Cumulative Effect of Adoption

Net Income


IncomeEstablishing GMDB and other
    benefit reserves for annuity contracts

$
(50
)

$
Reclassifying certain separate
    accounts to general account


30



294Other


2



(2
)Total cumulative effect of
    adoption

$
(18
)

$
292   Future
    Adoption of New Accounting Standards
  Fair
    Value Option for Financial Assets and Financial
    Liabilities
    Fair
    Value Measurements
   F-9




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Accounting
    for Uncertainty in Income Taxes, an interpretation of FASB
    Statement No. 109
    Accounting
    for Certain Hybrid Financial Instruments  an
    amendment of FASB Statements No. 133 and 140
   F-10




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Accounting
    by Insurance Enterprises for Deferred Acquisition Costs
    (DAC) in Connection with Modifications or Exchanges
    of Insurance Contracts
  05-1, (SOP 05-1). SOP 05-1 SOP 05-1 SOP 05-1 SOP 05-1
  Investments
  available-for-sale
  Valuation
    of Fixed Maturities
   F-11




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        2006


2005Percentage





Percentageof Total





of TotalFair Value


Fair Value


Fair Value


Fair ValuePriced via independent market
    quotations

$
37,190



82.0
%

$
36,055



83.4
%Priced via broker quotations


3,567



7.9
%


2,271



5.2
%Priced via matrices


3,810



8.4
%


3,667



8.5
%Priced via other methods


79



0.2
%


202



0.5
%Short-term investments(1)


694



1.5
%


1,047



2.4
%Total

$
45,340



100.0
%

$
43,242



100.0
%     (1)
    
    Short-term investments are primarily valued at amortized cost,
    which approximates fair value.    Other-Than-Temporary
    Impairments on
    Available-for-Sale
    Securities
  other-than-temporary other-than-temporary. other-than-temporarily other-than-temporary other-than-temporarily
 F-12




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    No. 99-20, No. 99-20 other-than-temporary No. 99-20 other-than-temporary
    No. 99-20 other-than-temporary
  Mortgage
    Loan Impairments
    Net
    Realized Capital Gains and Losses
  other-than-temporary.
 F-13




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Net
    Investment Income
  and/or other-than-temporary
  Derivative
    Instruments
  Overview
      Accounting
    and Financial Statement Presentation of Derivative Instruments
    and Hedging Activities
     F-14




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Fair-Value
    Hedges
    Cash-Flow
    Hedges
    Foreign-Currency
    Hedges
    Net
    Investment in a Foreign Operation Hedges
    Other
    Investment and Risk Management Activities
    Hedge
    Documentation and Effectiveness Testing
   F-15




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Discontinuance
    of Hedge Accounting
          Embedded
    Derivatives
    Credit
    Risk
   F-16




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Product
    Derivatives and Risk Management
  Valuation
    of Guaranteed Minimum Withdrawal Benefit and Guaranteed Minimum
    Income Benefit Reinsurance Derivatives
         F-17




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Separate
    Accounts
    Deferred
    Policy Acquisition Costs and Present Value of Future Profits
    Associated with Variable Annuity and Other Universal Life-Type
    Contracts
  Accounting
    Policy and Assumptions
    true-up, true-up
  sub-accounts
 F-18




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
            Unlock
    Results
   F-19




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    SalesSegment




Unearned Revenue


Death and Income


InducementAfter-tax (Charge) Benefit

DAC and PVFP


Reserves


Benefit Reserves(1)


Assets


TotalRetail Products Group

$
(70
)

$
5


$
(10
)

$
3


$
(72
)Retirement Plans


20















20Individual Life


(46
)


30











(16
)Life  Other


(46
)














(46
)Total

$
(142
)

$
35


$
(10
)

$
3


$
(114
)     (1)
    
    As a result of the unlock, death benefit reserves, in the Retail
    Products Group, increased $294, offset by an increase of $279 in
    reinsurance recoverables.    Reserve
    for Future Policy Benefits and Unpaid Claims and Claim
    Adjustment Expenses
     F-20




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Other
    Policyholder Funds and Benefits Payable
      Revenue
    Recognition
    Foreign
    Currency Translation
    Dividends
    to Policyholders
     F-21




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Reinsurance
      Income
    Taxes
    Note 2.
    Segment
    Information      not-for-profit
         F-22




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
       2006


2005


2004RetailRealized gains (losses)

$
32


$
34


$
25Credit risk fees


(26
)


(26
)


(22
)Retirement PlansRealized gains (losses)


10



6



5Credit risk fees


(9
)


(8
)


(8
)InstitutionalRealized gains (losses)


16



13



8Credit risk fees


(22
)


(18
)


(16
)Individual LifeRealized gains (losses)


9



8



12Credit risk fees


(6
)


(5
)


(5
)OtherRealized gains (losses)


(67
)


(61
)


(50
)Credit risk fees


63



57



51Total

$



$



$
     For the Years Ended December 31,Revenues by Product Line

2006


2005


2004RevenuesLifeEarned premiums, fees, and other
    considerationsRetailIndividual annuity

$
1,838


$
1,627


$
1,476Other










Total Retail

$
1,838


$
1,627


$
1,476Retirement Plans401(k)


154



106



74Governmental


45



43



43Total Retirement
    Plans


199



149



117 F-23




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  For the Years Ended December 31,Revenues by Product Line

2006


2005


2004InstitutionalInstitutional


624



517



473PPLI


102



104



149Total Institutional


726



621



622Individual LifeTotal Individual Life


780



716



689Other


116



147



172Total Life premiums, fees, and
    other considerations


3,660



3,260



3,076Net investment income


2,728



2,569



2,470Net realized capital gains (losses)


(299
)


75



140Total Life

$
6,089


$
5,904


$
5,686Net Income (Loss)Retail

$
488


$
520


$
373Retirement Plans


101



66



59Institutional


91



82



55Individual Life


158



149



143Other


(107
)


92



335Total net income

$
731


$
909


$
965Net investment incomeRetail

$
835


$
934


$
1,013Retirement Plans


326



311



307Institutional


987



784



647Individual Life


292



272



269Other


288



268



234Total net investment
    income

$
2,728


$
2,569


$
2,470Amortization of deferred policy
    acquisition and present value of future profitsRetail

$
867


$
689


$
596Retirement Plans


1



26



28Institutional


32



32



26Individual Life


228



196



175Other


47



2



Total amortization of
    DAC

$
1,175


$
945


$
825 F-24




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  For the Years Ended December 31,Revenues by Product Line

2006


2005


2004Income tax expense
    (benefit)Retail

$
9


$
33


$
35Retirement Plans


40



19



17Institutional


38



34



24Individual Life


72



69



70Other(1)


(56
)


52



(117
)Total income tax
    expense

$
103


$
207


$
29     (1)
    
    For the year ended December 31, 2004 the Company includes a
    $191 tax benefit recorded in its Other category, which relates
    to an agreement with the IRS on the resolution of matters
    pertaining to tax years prior to 2004. For further discussion of
    this tax benefit see Note 12.  December 31,2006


2005AssetsRetail

$
128,550


$
119,185Retirement Plans


24,390



20,058Institutional


66,135



48,561Individual Life


13,603



12,314Other


8,472



7,506Total assets

$
241,150


$
207,624DACRetail

$
4,587


$
4,617Retirement Plans


538



406Institutional


111



81Individual Life


2,124



1,976Other


(26
)


21Total DAC

$
7,334


$
7,101Reserve for Future Policy
    BenefitsRetail

$
845


$
732Retirement Plans


357



366Institutional


5,711



4,962Individual Life


575



536Other


721



810Total Reserve for Future Policy
    Benefits

$
8,209


$
7,406Other Policyholder
    FundsRetail

$
15,008


$
16,299Retirement Plans


5,544



5,194Institutional


11,401



9,228 F-25




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  December 31,2006


2005Individual Life


4,845



4,482Other


3,393



3,196Total Other Policyholder
    Funds

$
40,191


$
38,399   3.
    Investments
    and Derivative Instruments  For the Years Ended December 31,2006


2005


2004Components of Net Investment
    IncomeFixed maturities

$
2,459


$
2,275


$
2,122Policy loans


140



142



183Mortgage loans on real estate


126



64



37Other investments


53



125



158Gross investment income


2,778



2,606



2,500Less: Investment expenses


50



37



30Net investment income

$
2,728


$
2,569


$
2,470Components of Net Realized
    Capital Gains (Losses)Fixed maturities

$
(105
)

$
57


$
168Equity securities


(3
)


8



7Foreign currency transaction
    remeasurements


18



157



(6
)Derivatives and other(1)


(209
)


(147
)


(29
)Net realized capital gains
    (losses)

$
(299
)

$
75


$
140     (1)
    
    Primarily consists of changes in fair value on non-qualifying
    derivatives, changes in fair value of certain derivatives in
    fair value hedge relationships and hedge ineffectiveness on
    qualifying derivative instruments.  For the Years Ended December 31,2006


2005


2004Components of Net Unrealized
    Gains (Losses) on
    Available-for-Sale SecuritiesFixed maturities

$
800


$
986


$
2,212Equity securities


8



7



8Net unrealized gains credited to
    policyholders


(4
)


(9
)


(20
)Net unrealized gains


804



984



2,200Deferred income taxes and other
    items


304



407



1,076Net unrealized gains, net of
    tax  end of year


500



577



1,124Net unrealized gains, net of
    tax  beginning of year


577



1,124



728Change in unrealized gains
    (losses) on
    available-for-sale
    securities

$
(77
)

$
(547
)

$
396  F-26




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Components
    of Fixed Maturity Investments
  As of December 31, 2006


As of December 31, 2005Gross


Gross








Gross


GrossAmortized


Unrealized


Unrealized


Fair


Amortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value


Cost


Gains


Losses


ValueBonds and NotesABS

$
6,373


$
38


$
(44
)

$
6,367


$
6,383


$
44


$
(73
)

$
6,354Collateralized mortgage obligations
    (CMOs)Agency backed


778



8



(5
)


781



657



3



(4
)


656Non-agency backed


76











76



107











107CMBSAgency backed


405



7



(1
)


411



53



1







54Non-agency backed


10,198



139



(67
)


10,270



8,258



158



(85
)


8,331Corporate


21,982



911



(206
)


22,687



21,179



1,098



(226
)


22,051Government/Government agenciesForeign


568



44



(4
)


608



646



43



(4
)


685United States


542



2



(5
)


539



435



23



(2
)


456Mortgage-backed securities
    (MBS)  U.S.Government/Government agencies


1,808



6



(31
)


1,783



2,559



6



(39
)


2,526States, municipalities and
    political subdivisions


1,114



23



(15
)


1,122



926



47



(4
)


969Redeemable preferred stock


2











2



6











6Short-term investments


694











694



1,047











1,047Total fixed maturities

$
44,540


$
1,178


$
(378
)

$
45,340


$
42,256


$
1,423


$
(437
)

$
43,242     Maturity

Amortized Cost


Fair ValueOne year or less

$
1,505


$
1,543Over one year through five years


7,198



7,466Over five years through ten years


6,467



6,541Over ten years


20,335



20,783Subtotal


35,505



36,333Mortgage- and asset-backed
    securities


9,035



9,007Total

$
44,540


$
45,340    F-27




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Sales of
    Fixed Maturity and
    Available-for-Sale
    Equity Security Investments
  For the Years Ended December 31,2006


2005


2004Sale of Fixed
    MaturitiesSale proceeds

$
17,009


$
15,882


$
13,022Gross gains


210



302



311Gross losses


(230
)


(218
)


(125
)Sale of
    Available-for-Sale
    Equity SecuritiesSale proceeds

$
249


$
38


$
75Gross gains


5



8



12Gross losses


(5
)






(5
)   Concentration
    of Credit Risk
          Security
    Unrealized Loss Aging
  other-than-temporarily other-than-temporary
 F-28




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   available-for-sale
  2006Less Than 12 Months


12 Months or More


TotalAmortized


Fair


Unrealized


Amortized


Fair


Unrealized


Amortized


Fair


UnrealizedCost


Value


Losses


Cost


Value


Losses


Cost


Value


LossesABS

$
846


$
841


$
(5
)

$
698


$
659


$
(39
)

$
1,544


$
1,500


$
(44
)CMOsAgency backed


72



71



(1
)


260



256



(4
)


332



327



(5
)Non-agency backed


37



37







10



10







47



47



CMBSAgency backed


74



73



(1
)


2



2







76



75



(1
)Non-agency backed


2,398



2,381



(17
)


2,046



1,996



(50
)


4,444



4,377



(67
)Corporate


5,119



5,052



(67
)


4,051



3,912



(139
)


9,170



8,964



(206
)Government/Government agenciesForeign


116



114



(2
)


50



48



(2
)


166



162



(4
)United States


348



345



(3
)


61



59



(2
)


409



404



(5
)MBS  U.S. Government/
    Government agencies


191



189



(2
)


1,131



1,102



(29
)


1,322



1,291



(31
)States, municipalities and
    political subdivisions


402



396



(6
)


189



180



(9
)


591



576



(15
)Short-term investments


356



356



















356



356



Total fixed maturities


9,959



9,855



(104
)


8,498



8,224



(274
)


18,457



18,079



(378
)Common stock


21



20



(1
)














21



20



(1
)Non-redeemable preferred stock


51



49



(2
)


39



36



(3
)


90



85



(5
)Total equity


72



69



(3
)


39



36



(3
)


111



105



(6
)Total temporarily impaired
    securities

$
10,031


$
9,924


$
(107
)

$
8,537


$
8,260


$
(277
)

$
18,568


$
18,184


$
(384
)   Other-than-temporary other-than-temporarily
     F-29




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  other-than-temporary
  CMBS
  Financial services
  ABS
  MBS
    Mortgage
    Loans
  in-process-of-foreclosure
  Variable
    Interest Entities (VIE)
   F-30




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     December 31,


December 31,2006


2005Maximum








MaximumTotal





Exposure to


Total





Exposure toAssets


Liability(4)


Loss(2)(3)


Assets


Liability(4)


Loss(2)(3)Collaterized debt obligations
    (CDOs) and other funds(1)(2)

$
296


$
167


$
129


$
77


$
42


$
35Limited partnerships(3)


103



15



88











Total(5)

$
399


$
182


$
217


$
77


$
42


$
35     (1)
    
    The Company provides collateral management services and earns a
    fee associated with these structures.(2)
    
    The maximum exposure to loss is the Companys co-investment
    in these structures.(3)
    
    The maximum exposure to loss is equal to the carrying value of
    the investment plus any unfunded commitments.(4)
    
    Creditors have no recourse against the Company in the event of
    default by the VIE.(5)
    
    As of December 31, 2006 and 2005, the Company had
    relationships with four and two VIEs, respectively, where the
    Company was the primary beneficiary.    Derivative
    Instruments
       F-31




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Asset Values


Liability Values2006


2005


2006


2005Other investments

$
272


$
159


$



$
Reinsurance recoverables










22



17Other policyholder funds and
    benefits payable


172



80



1



Other liabilities










590



390Total

$
444


$
239


$
613


$
407     F-32




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  HedgeIneffectiveness,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Cash-Flow HedgesInterest rate swapsInterest rate swaps are primarily
    used to convert interest receipts on floating-rate fixed
    maturity securities to fixed rates. These derivatives are
    predominantly used to better match cash receipts from assets
    with cash disbursements required to fund liabilities.The Company also enters into
    forward starting swap agreements to hedge the interest rate
    exposure of anticipated future cash flows on floating-rate fixed
    maturity securities due to changes in the benchmark interest
    rate, London-Interbank Offered Rate (LIBOR). These
    derivatives were structured to hedge interest rate exposure
    inherent in the assumptions used to price primarily certain
    long-term disability products.Interest rate swaps are also used
    to hedge a portion of the Companys floating rate
    guaranteed investment contracts. These derivatives convert the
    floating rate guaranteed investment contract payments to a fixed
    rate to better match the cash receipts earned from the
    supporting investment portfolio.

$
4,560


$
4,860


$
(19
)

$
(26
)

$
(8
)

$
(10
)Foreign currency
    swapsForeign currency swaps are used to
    convert foreign denominated cash flows associated with certain
    foreign denominated fixed maturity investments to U.S. dollars.
    The foreign fixed maturities are primarily denominated in euros
    and are swapped to minimize cash flow fluctuations due to
    changes in currency rates. In addition, foreign currency swaps
    are also used to convert foreign denominated cash flows
    associated with certain liability payments in order to minimize
    cash flow fluctuations due to changes in currency rates.


1,420



1,361



(318
)


(222
)


(4
)


4 F-33




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  HedgeIneffectiveness,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Fair-Value HedgesInterest rate swapsInterest rate swaps are used to
    hedge the changes in fair value of certain fixed rate
    liabilities and fixed maturity securities due to changes in the
    benchmark interest rate, LIBOR.


3,303



1,707



7



(1
)






2Foreign currency
    swapsForeign currency swaps are used to
    hedge the changes in fair value of certain foreign denominated
    fixed rate liabilities due to changes in foreign currency
    rates.


492







(9
)










Total cash-flow and fair-value
    hedges

$
9,775


$
7,928


$
(339
)

$
(249
)

$
(12
)

$
(4
)   DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Other Investment and Risk
    Management ActivitiesInterest rate caps and swaption
    contractsThe Company is exposed to
    policyholder surrenders during a rising interest rate
    environment. Interest rate cap and swaption contracts are used
    to mitigate the Companys loss in a rising interest rate
    environment. The increase in yield from the cap and swaption
    contracts in a rising interest rate environment may be used to
    raise credited rates, thereby increasing the Companys
    competitiveness and reducing the policyholders incentive
    to surrender.

$
1,100


$
1,116


$



$
1


$
(1
)

$
 F-34




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Interest rate swaps, caps and
    floorsThe Company uses interest rate
    swaps and floors to manage duration risk between assets and
    liabilities in certain portfolios. In addition, the Company
    enters into interest rate swaps to terminate existing swaps in
    hedging relationships, thereby offsetting the changes in value
    of the original swap. The Company also enters into interest rate
    caps to manage the duration risk in certain investment
    portfolios.


3,811



1,371



(15
)


12



(26
)


2Interest rate
    forwardsThe Company uses interest rate
    forwards to replicate the purchase of mortgage-backed securities
    to manage duration risk and liquidity.


644







(4
)






5



Foreign currency swaps and
    forwardsThe Company enters into foreign
    currency swaps and forwards to hedge the foreign currency
    exposures in certain of its foreign fixed maturity
    investments.


162



490



(11
)


(8
)


(7
)


20 F-35




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Credit default and total return
    swapsThe Company enters into swap
    agreements in which the Company assumes credit exposure of an
    individual entity, referenced index or asset pool. These
    contracts entitle the company to receive a periodic fee in
    exchange for an obligation to compensate the derivative
    counterparty should a credit event occur on the part of the
    referenced security issuers. The maximum potential future
    exposure to the Company is the notional value of the swap
    contracts, which is $786 and $324, after-tax, as of
    December 31, 2006 and 2005, respectively.The Company also assumes exposure
    to the change in value of indices or asset pools through total
    return swaps and credit spreadlocks. As of December 31,
    2006 and 2005, the maximum potential future exposure to the
    Company from such contracts is $707 and $542, after-tax,
    respectively.The Company enters into credit
    default swap agreements, in which the Company pays a derivative
    counterparty a periodic fee in exchange for compensation from
    the counterparty should a credit event occur on the part of the
    referenced security issuer. The Company entered into these
    agreements as an efficient means to reduce credit exposure to
    specified issuers or sectors. In addition, the Company enters
    into option contracts to receive protection should a credit
    event occur on the part of the referenced security issuer.


4,720



2,013



(99
)


3



15



10 F-36




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Yen fixed annuity hedging
    instrumentsThe Company enters into currency
    rate swaps and forwards to mitigate the foreign currency
    exchange rate and yen interest rate exposures associated with
    the yen denominated individual fixed annuity product. The
    associated liability is adjusted for changes in spot rates which
    was $12 and $102, after-tax, as of December 31, 2006 and
    2005, respectively, and partially offset the derivative change
    in value.

$
1,869


$
1,675


$
(225
)

$
(179
)

$
(64
)

$
(143
)GMWB product
    derivativesThe Company offers certain
    variable annuity products with a GMWB rider. The GMWB is a
    bifurcated embedded derivative that provides the policyholder
    with a GRB if the account value is reduced to zero through a
    combination of market declines and withdrawals. The GRB is
    generally equal to premiums less withdrawals. The policyholder
    also has the option, after a specified time period, to reset the
    GRB to the then-current account value, if greater. For a further
    discussion, see the Derivative Instruments section of
    Note 2. The notional value of the embedded derivative is
    the GRB balance.


37,769



31,803



53



8



79



(42
)GMWB reinsurance
    contractsReinsurance arrangements are used
    to offset the Companys exposure to the GMWB embedded
    derivative for the lives of the host variable annuity contracts.
    The notional amount of the reinsurance contracts is the GRB
    amount.


7,172



8,575



(22
)


(17
)


(19
)


19 F-37




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005GMWB hedging
    instrumentsThe Company enters into interest
    rate futures, S&P 500 and NASDAQ index futures contracts and
    put and call options, as well as interest rate, EAFE index and
    equity volatility swap contracts to economically hedge exposure
    to the volatility associated with the portion of the GMWB
    liabilities which are not reinsured.In addition, the Company
    periodically enters into forward starting S&P 500 put
    options as well as S&P index futures and interest rate swap
    contracts to economically hedge the equity volatility risk
    exposure associated with anticipated future sales of the GMWB
    rider.


8,379



5,086



346



175



(77
)


(13
)GMIB reinsurance
    contractsReinsurance arrangements are used
    to offset the Companys exposure to the GMIB embedded
    derivative for the lives of the host variable annuity contracts.
    The notional amount of the reinsurance contracts is the yen
    denominated policyholder account value remeasured at the
    year-end yen to U.S. dollar spot rate.


12,297



16,782



119



72



(35
)


73Equity index swaps and
    optionsThe Company offers certain equity
    indexed products, which may contain an embedded derivative that
    requires bifurcation. The Company enters into S&P index
    swaps and options to economically hedge the equity volatility
    risk associated with these embedded derivatives. In addition,
    the Company is exposed to bifurcated options embedded in certain
    fixed maturity investments.


25



12



(1
)










(1
) F-38




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  DerivativeChange in Value,Notional Amount


Fair Value


After-taxHedging Strategy

2006


2005


2006


2005


2006


2005Statutory reserve hedging
    instrumentsThe Company purchases one and two
    year S&P 500 put option contracts to economically hedge the
    statutory reserve impact of equity exposure arising primarily
    from GMDB and GMWB obligations against a decline in the
    equity markets.


2,220



1,142



29



14



(9
)


(20
)Total other investment and risk
    management activities.

$
80,168


$
70,065


$
170


$
81


$
(139
)

$
(95
)Total derivatives(1)

$
89,943


$
77,993


$
(169
)

$
(168
)

$
(151
)

$
(99
)     (1)
    
    Derivative change in value includes hedge ineffectiveness for
    cash-flow hedges, fair-value hedges and total change in value,
    including periodic derivative net coupon settlements, of other
    investment and risk management activities.       F-39




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          Securities
    Lending and Collateral Arrangements
   F-40




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Loaned Securities and Collateral Pledged

2006


2005ABS

$
3


$
13CMBS


169



156Corporate


1,339



598MBS


152



138Government/Government AgenciesForeign


4



25United States


327



95Total

$
1,994


$
1,025     Securities
    on Deposit with States
    Note 4.
    Fair
    Value of Financial Instruments         F-41




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
             2006


2005Carrying


Fair


Carrying


FairAmount


Value


Amount


ValueAssetsFixed maturities

$
45,340


$
45,340


$
43,242


$
43,242Equity securities


276



276



311



311Policy loans


2,009



2,009



1,971



1,971Mortgage loans on real estate


2,631



2,619



1,355



1,348Other investments


274



274



156



156LiabilitiesOther policyholder funds and
    benefits payable(1)

$
13,931


$
13,186


$
11,686


$
11,273Consumer notes


258



260







     (1)
    
    Excludes universal life insurance contracts, including corporate
    owned life insurance.  Note 5.
    Reinsurance     F-42




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     For the Years Ended December 31,2006


2005


2004Gross fee income, earned premiums
    and other

$
4,360


$
4,019


$
3,834Reinsurance assumed


19



39



49Reinsurance ceded


(719
)


(798
)


(807
)Net fee income, earned premiums
    and other


3,660


$
3,260


$
3,076         Note 6.
    Deferred
    Policy Acquisition Costs and Present Value of Future
    Profits    2006


2005


2004Balance, January 1

$
7,101


$
6,453


$
6,088Capitalization


1,351



1,226



1,375Amortization  Deferred
    policy acquisitions costs and present value of future profits


(1,033
)


(945
)


(825
)Amortization  Unlock


(142
)






Adjustments to unrealized gains
    and losses on securities
    available-for-sale
    and other


57



367



(80
)Cumulative effect of accounting
    changes
    (SOP 03-1)










(105
)Balance,
    December 31

$
7,334


$
7,101


$
6,453  F-43




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    For the Year Ended December 31,2007

$
222008

$
282009

$
262010

$
242011

$
22   Note 7.
    Goodwill
    and Other Intangible Assets        Note 8.
    Separate
    Accounts, Death Benefits and Other Insurance Benefit
    Features      GMDB(1)Liability balance as of
    January 1, 2006

$
158Incurred


130Unlock


294Paid


(106
)Liability balance as of
    December 31, 2006

$
476     (1)
    The reinsurance recoverable asset related to the GMDB was $316
    as of December 31, 2006.  F-44




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  GMDB(1)Liability balance upon
    adoption  as of January 1, 2005

$
174Incurred


123Paid


(139
)Liability balance as of
    December 31, 2005

$
158     (1)
    
    The reinsurance recoverable asset related to the GMDB $40 as of
    December 31, 2005.      
    1000 stochastically generated investment performance scenarios
    for all issue years
    For all issue years, the weighted average return is 8%; it
    varies by asset class with a low of 3% for cash and a high of
    10% for aggressive equities.
    Discount rate of 7.5% for issue year 2002 & prior;
    discount rate of 7% for issue year 2003 & 2004 and
    discount rate of 5.6% for issue year 2005 and 2006.
    Volatilities also vary by asset class with a low of 1% for cash,
    a high of 12% for aggressive equities, and a weighted average of
    11%.
    100% of the Hartford experience mortality table was used for the
    mortality assumptions.
    Lapse rates by calendar year vary from a low of 8% to a high of
    14%, with an average of 12% F-45




---



##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Breakdown
    of Variable Annuity Account Value by GMDB Type at
    December 31, 2006
  Retained Net


Weighted AverageAccount


Net Amount


Amount


Attained Age ofMaximum Anniversary Value (MAV)(1)

Value


at Risk


at Risk


AnnuitantMAV only

$
53,358


$
3,664


$
343



65With 5% rollup(2)


3,830



349



67



63With Earnings Protection Benefit
    Rider (EPB)(3)


5,576



471



77



61With 5% rollup & EPB


1,411



149



28



63Total MAV


64,175



4,633



515Asset Protection Benefit (APB)(4)


36,710



61



32



62Lifetime Income Benefit (LIB)(5)


4,045



9



9



61Reset(6) (5-7 years)


6,862



243



243



65Return of Premium(7)/Other


10,015



28



25



54Total

$
121,807


$
4,974


$
824     (1)
    
    MAV: the death benefit is the greatest of current account value,
    net premiums paid and the highest account value on any
    anniversary before age 80 (adjusted for withdrawals).(2)
    
    Rollup: the death benefit is the greatest of the MAV, current
    account value, net premium paid and premiums (adjusted for
    withdrawals) accumulated at generally 5% simple interest up to
    the earlier of age 80 or 100% of adjusted premiums.(3)
    
    EPB: The death benefit is the greatest of the MAV, current
    account value, or contract value plus a percentage of the
    contracts growth. The contracts growth is account
    value less premiums net of withdrawals, subject to a cap of 200%
    of premiums net of withdrawals.(4)
    
    APB: the death benefit is the greater of current account value
    or MAV, not to exceed current account value plus 25% times the
    greater of net premiums and MAV (each adjusted for premiums in
    the past 12 months).(5)
    
    LIB: The death benefit is the greatest of the current account
    value, net premiums paid, or a benefit amount that rachets over
    time, generally based on market performance.(6)
    
    Reset: the death benefit is the greatest of current account
    value, net premiums paid and the most recent five to seven year
    anniversary account value before age 80 (adjusted for
    withdrawals).(7)
    
    Return of premium: the death benefit is the greater of current
    account value and net premiums paid.   F-46




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
            F-47




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     As of December 31,Asset type

2006Equity securities

$
104,687Cash and cash equivalents


8,931Total

$
113,618     Note 9.
    Sales
    Inducements      2006


2005Balance, beginning of period

$
355


$
309Sales inducements deferred


80



85DAC Unlock


4



Amortization charged to income


(49
)


(39
)Balance, end of
    period

$
390


$
355   Note 10.
    Reserves
    for Losses and Loss Adjustment Expenses     F-48




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     2006


2005RetailIndividual annuity 
    variable

$
474


$
157Individual annuity 
    fixed


371



575Other






Total Retail


845



732Retirement Plans401(k)


67



56Governmental


290



310Total Retirement Plans


357



366InstitutionalStructured settlements


3,230



2,839Institutional annuities


2,158



2,003SPIA


206



PPLI


117



Total Institutional


5,711



Individual LifeVariable universal life


16



15Universal life/other interest
    sensitive


70



63Term insurance and other


489



458Total Individual Life


575



536Other


721



810Total

$
8,209


$
7,406     2006


2005LifeRetailIndividual annuity 
    variable

$
5,675


$
7,030Individual annuity 
    fixed


9,326



9,260Other


7



9Total Retail


15,008



16,299Retirement Plans401(k)


1,257



1,181Governmental


4,287



4,013Total Retirement Plans


5,544



5,194 F-49




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  2006


2005InstitutionalStructured settlements


1,968



1,727Stable value/Funding agreements


6,169



4,142GICs


2,875



3,117SPIA


141



PPLI


235



231Institutional annuities


13



11Total Institutional


11,401



9,228Individual LifeVariable universal life


515



474Universal life/other interest
    sensitive


4,117



3,793Other


214



215Total Individual Life


4,846



4,482Other


3,392



3,196Total Life

$
40,191


$
38,399   Note 11.
    Commitments
    and Contingencies  Litigation
      Broker Compensation Litigation
 F-50




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Regulatory
    Developments
     F-51




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
             F-52




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
       sub-account
    Leases
   F-53




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      2007


322008


282009


242010


212011


4Thereafter


4Total

$
113   Tax
    Matters
  2002-2003 1998-2001
  provision-to-filed-return
    Unfunded
    Commitments
   F-54




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Guaranty
    Fund and Other Insurance-related Assessments
    No. 97-3,
  Note 12.
    Income
    Tax      For the Years Ended December 31,2006


2005


2004Current

$
115


$
71


$
(34
)Deferred


(12
)


136



63Income tax expense

$
103


$
207


$
29     For the Years Ended December 31,2006


2005


2004Tax provision at the
    U.S. federal statutory rate

$
292


$
391


$
354Dividends received deduction


(174
)


(184
)


(132
)IRS audit settlement










(191
)Foreign related investments


(10
)


(2
)


(2
)Other


(5
)


2



Total

$
103


$
207


$
29  F-55




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2006


2005Deferred Tax AssetsTax basis deferred policy
    acquisition costs and reserves

$
568


$
581Investment-related items and other


179



NOL carryover






13Minimum tax credit


217



191Foreign tax credit carryovers


7



31Other






30Total Deferred Tax
    Assets


971



846Deferred Tax
    LiabilitiesFinancial statement deferred
    policy acquisition costs and reserves


(1,252
)


(977
)Net unrealized gains on equity
    securities


(169
)


(291
)Employee benefits


(39
)


(15
)Investment related items and other






(79
)Other


(2
)


Total Deferred Tax
    Liabilities


(1,462
)


(1,362
)Total Deferred Tax
    Asset/(Liability)

$
(491
)

$
(516
)         Note 13.  Debt
  Consumer
    Notes
  No. 333-137215), SM SM
   F-56




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Note 14.
    Statutory
    Results  For the Years Ended December 31,2006


2005


2004Statutory net income

$
419


$
185


$
536Statutory capital and surplus

$
3,275


$
3,034


$
3,191       Note 15.
    Pension
    Plans, Postretirement, Health Care and Life Insurance Benefit
    and Savings Plans  Pension
    Plans
   F-57




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Investment
    and Savings Plan
    Note 16.
    Stock
    Compensation Plans      Stock
    Plan
        Stock
    Option Awards
     F-58




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Share
    Awards
    Employee
    Stock Purchase Plan
    Note 17.
    Transactions
    with Affiliates       F-59




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
             SOP 03-1
   F-60




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Note 18.
    Quarterly
    Results for 2006 and 2005 (unaudited)  Three Months EndedMarch 31,


June 30,


September 30,


December 31,2006


2005


2006


2005


2006


2005


2006


2005Revenues

$
1,623


$
1,440


$
1,272


$
1,400


$
1,523


$
1,521


$
1,671


$
1,543Benefits, claims and expenses


1,286



1,118



1,198



1,172



1,259



1,210



1,512



1,275Net income


259



241



93



180



231



247



148



248  F-61




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  SCHEDULE I
  SUMMARY
    OF INVESTMENTS  OTHER THAN INVESTMENTS IN
    AFFILIATES
  As of December 31, 2006Amount at WhichShown onType of Investment

Cost


Fair Value


Balance Sheet(In millions)Fixed MaturitiesBonds and NotesU.S. Government and
    Government agencies and authorities (guaranteed and sponsored)

$
542


$
539


$
539U.S. Government and
    Government agencies and authorities (guaranteed and
    sponsored)  asset-backed


2,991



2,975



2,975States, municipalities and
    political subdivisions


1,114



1,122



1,122International governments


568



608



608Public utilities


2,663



2,774



2,774All other corporate including
    international


19,319



19,913



19,913All other corporate 
    asset-backed


16,647



16,713



16,713Short-term investments


694



694



694Redeemable preferred stock


2



2



2Total fixed
    maturities


44,540



45,340



45,340Equity SecuritiesCommon stocksBanks, trusts & insurance
    companies


1



1



1Industrial, miscellaneous and all
    other


158



169



169Nonredeemable preferred stocks


109



106



106Total equity
    securities


268



276



276Total fixed maturities and
    equity securities


44,808



45,616



45,616Other InvestmentsMortgage loans on real estate


2,631



2,619



2,631Policy loans


2,009



2,009



2,009Investments in partnerships and
    trusts


750



750



750Other invested assets


428



274



274Total other
    investments


5,818



5,652



5,664Total investments

$
50,626


$
51,268


$
51,280  S-1




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  SCHEDULE III
  SUPPLEMENTARY
    INSURANCE INFORMATION
 For the
    Years Ended December 31, 2006, 2005 and 2004
  Net


Benefits,





AmortizationRealized


Claims and





of DeferredNet


Capital


Claim


Insurance


PolicyFee Income


Earned


Investment


Gains


Adjustment


Expenses


Acquisition


Dividends toSegment

and Other


Premiums


Income


(Losses)


Expenses


and Other


Costs


Policyholders(In millions)2006Retail Products Group

$
1,924


$
(86
)

$
835


$
7


$
819


$
497


$
867


$
Retirement Plans


180



19



326



1



250



134



1



Institutional Solutions Group


119



607



987



(6
)


1,471



75



32



Individual Life


825



(45
)


292



4



447



169



228



2Other


65



52



288



(305
)


218



(22
)


47



20Consolidated
    operations

$
3,113



547



2,728


$
(299
)

$
3,205


$
853


$
1,175


$
222005Retail Products Group

$
1,737


$
(110
)

$
934


$
9


$
895


$
433


$
689


$
Retirement Plans


139



10



311



(3
)


231



115



26



Institutional Solutions Group


117



504



784



(5
)


1,199



53



32



Individual Life


742



(26
)


272



3



420



154



196



3Other


76



71



268



71



263



43



2



34Consolidated
    operations

$
2,811



449


$
2,569


$
75


$
3,008


$
798


$
945


$
372004Retail Products Group

$
1,520


$
(44
)

$
1,013


$
(1
)

$
1,074


$
391


$
596


$
Retirement Plans


107



10



307



(3
)


220



96



28



Institutional Solutions Group


158



464



647



4



1,113



55



26



Individual Life


705



(16
)


269



8



424



151



175



2Other


102



70



234



132



280



16







27Consolidated
    operations

$
2,592



484


$
2,470


$
140


$
3,111


$
709


$
825


$
29  S-2




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIES
  SCHEDULE IV
  REINSURANCE
  Assumed





Percentage ofCeded to


from





AmountGross


Other


Other


Net


AssumedAmount


Companies


Companies


Amount


to Net(In millions)For the year ended
    December 31, 2006Life insurance in force

$
340,345


$
164,125


$
2,430


$
183,042



1.3%Fee income, earned premiums and
    otherLife insurance and annuities

$
4,072


$
457


$
12


$
3,627



.3%Accident and health insurance


288



262



7



33



21.2%Total fee income, earned
    premiums and other

$
4,360


$
719


$
19


$
3,660



.5%For the year ended
    December 31, 2005Life insurance in force

$
341,821


$
194,257


$
3,137


$
150,701



2.1%Fee income, earned premiums and
    otherLife insurance and annuities

$
3,735


$
554


$
31


$
3,212



1.0%Accident and health insurance


284



244



8



48



16.7%Total fee income, earned
    premiums and other

$
4,019


$
798


$
39


$
3,260



1.2%For the year ended
    December 31, 2004Life insurance in force

$
390,380


$
243,718


$
3,925


$
150,587



2.6%Fee income, earned premiums and
    otherLife insurance and annuities

$
3564


$
562


$
30


$
3,032



1.0%Accident and health insurance


270



245



19



44



43.2%Total fee income, earned
    premiums and other

$
3,834


$
807


$
49


$
3,076



1.6%  S-3




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##### Table of Contents



SIGNATURES      /s/  Ernest
    M. McNeill Jr.         Signature

Title

Date/s/  Thomas
    M. MarraThomas
    M. Marra

President, Chief Executive
    Officer, Chairman and Director

February 23, 2007/s/  Glenn
    D. LammeyGlenn
    D. Lammey

Executive Vice President, Chief
    Financial Officer and Director

February 23, 2007/s/  Ernest
    M. McNeill Jr.Ernest
    M. McNeill Jr

Senior Vice President and Chief
    Accounting Officer

February 23, 2007/s/  Stephen
    T. JoyceStephen
    T. Joyce

Director

February 23, 2007/s/  John
    C. WaltersJohn
    C. Walters

Director

February 23, 2007/s/  Lizabeth
    H. ZlatkusLizabeth
    H. Zlatkus

Director

February 23, 2007/s/  David
    M. ZnamierowskiDavid
    M. Znamierowski

Director

February 23, 2007  II-1




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##### Table of Contents



HARTFORD
    LIFE INSURANCE COMPANY AND SUBSIDIARIESFORM 10-K
    For the Fiscal Year Ended December 31, 2006EXHIBITS INDEX
  Exhibit #3
.01

Restated Certificate of
    Incorporation of Hartford Life Insurance Company was filed as
    Exhibit 3.01 to Hartford Life Insurance Companys
    Form 10-K
    filed for the year ended December 31, 2004 and is
    incorporated herein by reference.3
.02

By-Laws of Hartford Life Insurance
    Company was filed as Exhibit 3.02 to Hartford Life
    Insurance Companys
    Form 10-K
    filed for the year ended December 31, 2004 and is
    incorporated herein by reference.4
.01

Restated Certificate of
    Incorporation and By-Laws of Hartford Life Insurance Company
    (included as Exhibits 3.01 and 3.02, respectively).10
.01

Management Agreement among
    Hartford Life Insurance Company, certain of its affiliates and
    Hartford Investment Services, Inc. was filed as
    Exhibit 10.4 to Hartford Life, Inc.s
    Form 10-Q
    filed for the quarter ended June 30, 1997 (File
    No. 1-12749)
    and is incorporated herein by reference.10
.02

Management Agreement between
    Hartford Life Insurance Company and The Hartford Investment
    Management Company was filed as Exhibit 10.3 to Hartford
    Life, Inc.s
    Form 10-Q
    filed for the quarter ended June 30, 1997 (File
    No. 1-12749)
    and is incorporated herein by reference.12
.01

Computation of Ratio of Earnings
    to Fixed Charges is filed herewith.23
.01

Consent of Deloitte &
    Touche, LLP, filed herewith.31
.01

Section 302 Certification of
    Thomas M. Marra, filed herewith.31
.02

Section 302 Certification of
    Glen D. Lammey, filed herewith.32
.01

Section 906 Certification of
    Thomas M. Marra, filed herewith.32
.02

Section 906 Certification of
    Glen D. Lammey, filed herewith.