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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2005
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 001-32293
 HARTFORD LIFE INSURANCE COMPANY
  Connecticut
(State or other jurisdiction of
incorporation or organization)
    
    06-0974148
(I.R.S. Employer
Identification No.)
 200 Hopmeadow Street, Simsbury, Connecticut 06089
 (860) 547-5000
    þ o
 o þ
 þ o
 þ
 o o þ
 o þ




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##### 



CONTENTS
 ITEM
    
    
    DESCRIPTION
    
    PAGEPART I
    
    1.
    
    Business.*
    
    
    31A.
    
    Risk Factors.
    
    
    101B.
    
    Unresolved Staff Comments.
    
    
    142.
    
    Properties.*
    
    
    143.
    
    Legal Proceedings.
    
    
    144.
    
    **PART II
    
    5.
    
    Market for Hartford Life Insurance Companys Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
    
    
    156.
    
    **7.
    
    Managements
Discussion and Analysis of Financial Condition and Results of Operations.*
    
    
    167A.
    
    Quantitative and Qualitative Disclosures About Market Risk.
    
    
    608.
    
    Financial Statements and Supplementary Data.
    
    
    609.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
    
    
    609A.
    
    Controls and Procedures.
    
    
    609B.
    
    Other Information.
    
    
    60PART III
    
    
    10.
    
    **11.
    
    **12.
    
    **13.
    
    **14.
    
    Principal Accounting Fees and Services
    
    
    61PART IV
    
    15.
    
    Exhibits, Financial Statement Schedules
    
    
    61Signatures.
    
    II-1Exhibits Index.
    
    II-2EX-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
  
 *
    
    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-K 2




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PART I
 
 Item 1. BUSINESS
 (Dollar Amounts In Millions, Unless Otherwise Stated)
 General
   Customer Service, Technology and Economies of Scale
  Risk Management
  3




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Reporting Segments
        Retail
    4




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Principal Products
 Individual Variable Annuities
   Fixed MVA Annuities
 Marketing and Distribution
   5




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Competition
  Retirement Plans
   Principal Products
 Governmental
 401(k)
 Marketing and Distribution
   Competition
  Institutional
  6




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Principal Products
 Institutional Investment Products
 Structured Settlements
 Stable Value Products
 Institutional Annuities
 Variable PPLI Products
 Marketing and Distribution
      Competition
 7
    Table of Contents       Individual Life
  Principal Products
  Variable Universal Life
 Universal Life and Interest Sensitive Whole Life
 Marketing and Distribution
  Competition
 8
    Table of Contents    Reserves
  Ceded Reinsurance
  Investment Operations
  Regulation and Premium Rates
   9




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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 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.
  10




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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.
  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.
 11
    Table of Contents    We may experience unfavorable judicial or legislative developments that would adversely affect our
results of operations or liquidity.
  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.
 12




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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.
  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.
 13
    Table of Contents    
 Item 1B. UNRESOLVED STAFF COMMENTS
  
 Item 2. PROPERTIES
  
 Item 3. LEGAL PROCEEDINGS
  Broker Compensation Litigation
    14




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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
   
 15




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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)
   INDEX
 Overview
    
    
    16
    
    
    Investments
    
    
    37Critical Accounting Estimates
    
    
    22
    
    
    Investment Credit Risk
    
    
    44Consolidated Results of Operations
    
    
    26
    
    
    Capital Markets Risk Management
    
    
    51Retail
    
    
    28
    
    
    Capital Resources and Liquidity
    
    
    58Retirement Plans
    
    
    30
    
    
    Impact of New Accounting Standards
    
    
    60Institutional
    
    
    32Individual Life
    
    
    34Other
    
    
    36
 OVERVIEW
 .
  16




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Performance Measures
 Fee Income
  For years ended December 31,Product/Key Indicator Information
    
    2005
    
    2004
    
    2003Individual Variable AnnuitiesAccount value, beginning of period
    
    $
    99,617
    
    
    $
    86,501
    
    
    $
    64,343Net flows
    
    
    (881
    )
    
    
    5,471
    
    
    
    7,709Change in market value and other
    
    
    6,578
    
    
    
    7,645
    
    
    
    14,449Account value, end of period
    
    $
    105,314
    
    
    $
    99,617
    
    
    $
    86,501Retirement PlansAccount value, beginning of period
    
    $
    16,493
    
    
    $
    13,571
    
    
    $
    10,183Net flows
    
    
    1,618
    
    
    
    1,636
    
    
    
    1,560Change in market value and other
    
    
    1,206
    
    
    
    1,286
    
    
    
    1,828Account value, end of period
    
    $
    19,317
    
    
    $
    16,493
    
    
    $
    13,571Individual Life InsuranceVariable universal life account value, end of period
    
    $
    5,902
    
    
    $
    5,356
    
    
    $
    4,725Total life insurance inforce
    
    
    146,165
    
    
    
    134,769
    
    
    
    125,116S&P500 IndexYear end closing value
    
    
    1,248
    
    
    
    1,212
    
    
    
    1,112Daily average value
    
    
    1,208
    
    
    
    1,131
    
    
    
    965
 
    
    The 2005 increase in variable annuity account values can be attributed to
market growth over the past four quarters.
    
    Net flows for the variable annuity business has decreased from prior year
levels. In particular, variable annuity net flows were negatively affected due to lower
sales levels and higher surrenders due to increased competition.
    
    Changes in the market value is based on market conditions and investment
management performance.
 17




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##### Table of Contents



Net Investment Income and Interest Credited
  For the Years Ended2005
    
    2004
    
    2003 [1]Net Investment IncomeRetail
    
    $
    934
    
    
    $
    1,013
    
    
    $
    431Retirement Plans
    
    
    311
    
    
    
    307
    
    
    
    280Institutional
    
    
    784
    
    
    
    647
    
    
    
    562Individual Life
    
    
    272
    
    
    
    269
    
    
    
    227Other
    
    
    268
    
    
    
    234
    
    
    
    264Total net investment income
    
    $
    2,569
    
    
    $
    2,470
    
    
    $
    1,764Interest Credited on General Account AssetsRetail
    
    $
    717
    
    
    $
    846
    
    
    $
    284Retirement Plans
    
    
    197
    
    
    
    186
    
    
    
    184Institutional
    
    
    388
    
    
    
    299
    
    
    
    251Individual Life
    
    
    202
    
    
    
    192
    
    
    
    166Other
    
    
    175
    
    
    
    135
    
    
    
    170Total interest credited on general
account assets
    
    $
    1,679
    
    
    $
    1,658
    
    
    $
    1,055
 
 [1]
    
    Amounts represented in 2003 are prior to the adoption of SOP 03-1. 
    
    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. The increase from 2003 to 2004 was largely due to the adoption of
Statement of Position 03-1: Accounting & Reporting by Insurance Enterprises for Certain
Nontraditional Long-Duration Contracts and for Separate Accounts (SOP 03-1).
    
    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, $263 and $215 for the
years ended December 31, 2005, 2004 and 2003, 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.
 Expenses
   18




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For the Years Ended December 31,2005
    
    2004
    
    2003RetailGeneral insurance expense ratio
(individual annuity)
    
    17.9 bps
    
    18.3 bps
    
    22.0 bpsDAC amortization ratio (individual annuity)
    
    
    55.4
    %
    
    
    58.1
    %
    
    
    55.7
    %Insurance expenses, net of deferrals
    
    $
    433
    
    
    $
    391
    
    
    $
    331Individual LifeDeath benefits
    
    $
    214
    
    
    $
    211
    
    
    $
    192Insurance expenses, net of deferrals
    
    $
    157
    
    
    $
    153
    
    
    $
    150
 
    
    Individual annuitys expense ratio for the year ended December 31, 2005
continued to benefit from the Companys disciplined expense management and economies of
scale in the variable annuity business. Additionally, individual annuitys expense ratio
continues to be one of the lowest ratios of general insurance expenses as a percent of
assets under management in the industry, holding near 18 bps of average account value for
the year ended December 31, 2005. The Company expects this ratio to stay between 18-20
bps.
    
    The ratio of individual annuity DAC amortization over income before taxes and
DAC amortization declined for year ended December 31, 2005 as a result of higher gross
profits and a lower amount of additional deposits received on existing business.
 Profitability
  Ratios
    
    2005
    
    2004
    
    2003RetailIndividual
annuity return on assets (ROA)
    
    46.0 bps
    
    37.7 bps
    
    38.3 bps
 
    
    Individual annuitys ROA increased for the year ended December 31, 2005,
compared to the prior years. In particular, variable annuity fees and fixed annuity general
account spreads each increased for the year ended December 31, 2005 compared to the prior
years. 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
expenses, while the increase in fixed annuity general account spread resulted from fixed
annuity contracts that were repriced upon the contract reaching maturity.
 Regulatory Developments
    19




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20




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Broker Compensation




21



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CRITICAL ACCOUNTING ESTIMATES
   Deferred Policy Acquisition Costs and Present Value of Future Profits Associated with Variable
Annuity and Other Universal Life-Type Contracts
 Accounting Policy and Assumptions
    Unlock and Sensitivity Analysis
 22
    Table of Contents          Valuation of Guaranteed Minimum Withdrawal Benefit and Guaranteed Minimum Income Benefit
Reinsurance Derivatives
 23
    Table of Contents    Evaluation of Other-Than-Temporary Impairments on Available-for-Sale Securities
      Contingencies Relating to Corporate Litigation and Regulatory Matters
  24




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25




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CONSOLIDATED RESULTS OF OPERATIONS
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    2,811
    
    
    $
    2,592
    
    
    $
    2,297Earned premiums
    
    
    449
    
    
    
    484
    
    
    
    806Net investment income [1]
    
    
    2,569
    
    
    
    2,470
    
    
    
    1,764Net realized capital gains (losses)
    
    
    75
    
    
    
    140
    
    
    
    (13
    )Total revenues
    
    
    5,904
    
    
    
    5,686
    
    
    
    4,854Benefits, claims and claim adjustment expenses [1]
    
    
    3,008
    
    
    
    3,111
    
    
    
    2,726Insurance operating costs and other expenses
    
    
    835
    
    
    
    738
    
    
    
    688Amortization of deferred policy acquisition costs
    
    
    945
    
    
    
    825
    
    
    
    646Total benefits, claims and expenses
    
    
    4,788
    
    
    
    4,674
    
    
    
    4,060Income before income taxes and cumulative effect of accounting change
    
    
    1,116
    
    
    
    1,012
    
    
    
    794Income Tax expense
    
    
    207
    
    
    
    29
    
    
    
    168Income before cumulative effect of accounting change
    
    
    909
    
    
    
    983
    
    
    
    626Cumulative effect of accounting change, net of tax [2]
    
    
    
    
    
    
    (18
    )
    
    
    Net Income
    
    $
    909
    
    
    $
    965
    
    
    $
    626
  [1]
    
    With the adoption of SOP 03-1, certain annuity and individual life products were required to be accounted for in the
general account. This change in accounting resulted in an increase of $619 in net investment income and a decrease of
$589 in benefits, claims, and claim adjustment expenses and a decrease of $128 in other revenues for the year ended
December 31, 2004.[2]
    
    For the year ended December 31, 2004, this amount represents the cumulative impact of the Companys adoption of SOP 03-1.   2005 Compared to 2004
  
    
    For the year ended December 31, 2005, the Company experienced a decrease in
realized capital gains. See the Investments section for further discussion of investment
results and related realized capital gains and losses.
    
    Life recorded an after tax charge of $14 for the year ended December 31, 2005
to establish reserves for regulatory matters.
    
    The effective tax rate was 19% for the current year as compared to an
effective tax rate of 3% for the respective prior year period. The 2005 higher effective
tax rate was attributed to the absence of the tax benefit of $191 recorded in 2004 (as
mentioned above).
 26




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
    
    Net income in Retail increased during 2005, principally driven by higher fee
income from growth in the variable annuity business as a result of higher account values as
compared to the prior year.
    
    Institutional contributed higher earnings during 2005, driven by higher assets
under management.
    
    Individual Lifes net income increased during 2005, primarily driven by
business growth which resulted in increases in both life insurance inforce and account
values.
    
    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.
 2004 Compared to 2003
 
    
    Net income in Retail increased, principally driven by growth in the variable annuity
business as a result of increased account values.
    
    Net income in Retirement Plans increased principally driven by higher fee income as a
result of positive net flows from the 401(k) business.
    
    Individual Lifes earnings increase was primarily driven by improved net investment
spread income including the effects of prepayments and growth in account values and life
insurance in force.
    
    The effective tax rate was 3% for the current year as compared to an effective tax rate
of 21% for the respective prior year period. The lower effective tax rate was attributed
to tax related items, as discussed above, of $191 and a 2004 tax year DRD benefit of $132,
as compared to tax related items of $23 and a 2003 tax year DRD benefit of $87 reported for
the years ended December 31, 2004 and 2003, respectively.
  
    
    Retail recorded lower spread income on market value adjusted (MVA) fixed annuities due to the adoption of SOP 03-1.
    
    Net income in Institutional decreased primarily due to a $9 after-tax benefit, recorded
in 2003, associated with the settlement of certain litigation.
    
    Slightly offsetting the positive earnings drivers for the year ended December 31, 2004
was the cumulative effect of accounting change from the Companys adoption of SOP 03-1.
 Net Realized Capital Gains and Losses
  Income Taxes
    27




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RETAIL
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    1,737
    
    
    $
    1,520
    
    
    $
    1,257Earned premiums
    
    
    (110
    )
    
    
    (44
    )
    
    
    (40
    )Net investment income
    
    
    934
    
    
    
    1,013
    
    
    
    431Net realized capital gains (losses)
    
    
    9
    
    
    
    (1
    )
    
    
    9Total revenues
    
    
    2,570
    
    
    
    2,488
    
    
    
    1,657Benefits, claims and claim adjustment expenses
    
    
    895
    
    
    
    1,074
    
    
    
    519Insurance operating costs and other expenses
    
    
    433
    
    
    
    391
    
    
    
    331Amortization of deferred policy acquisition costs
    
    
    689
    
    
    
    596
    
    
    
    450Total benefits, claims and expenses
    
    
    2,017
    
    
    
    2,061
    
    
    
    1,300Income before income taxes and
cumulative effect of accounting change
    
    
    553
    
    
    
    427
    
    
    
    357Income tax expense
    
    
    33
    
    
    
    35
    
    
    
    27Income before cumulative effect of
accounting change
    
    
    520
    
    
    
    392
    
    
    
    330Cumulative effect of accounting change, net of tax [1]
    
    
    
    
    
    
    (19
    )
    
    
    Net Income
    
    $
    520
    
    
    $
    373
    
    
    $
    330
 Account Values
    
    2005
    
    2004
    
    2003Individual variable annuity account values
    
    $
    105,314
    
    
    $
    99,617
    
    
    $
    86,501Individual fixed annuity and other account values [2]
    
    
    10,222
    
    
    
    11,384
    
    
    
    11,215Total Account Values
    
    $
    115,536
    
    
    $
    111,001
    
    
    $
    97,716
  [1]
    
    Represents the cumulative impact of the Companys adoption of SOP 03-1.[2]
    
    Includes policyholders balances for investments contracts and reserve for future policy benefits for insurance contracts.  2005 Compared to 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 $6.3
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
sales competition, particularly as it relates to guaranteed living benefits riders offered
with 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 and claim adjustment expenses have decreased for the year ended
December 31, 2005 due to an increase in reserves in the third quarter of 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.
 28




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2004 Compared to 2003
 
    
    Fee income generated by the variable annuity operation increased, as average account
values were higher in 2004 as compared to the prior year. The increase in average account
values can be attributed to market appreciation of $7.6 billion and net flows of $5.5
billion during 2004.
  
    
    There was higher amortization of DAC, due to higher gross profits and increased
subsequent deposit activity, primarily in individual annuity.
    
    Lower income from the fixed annuity business, due to lower investment spread from the
market value adjusted (MVA) product caused by the cumulative effect of accounting change
from the Companys adoption of SOP 03-1. With the adoption of SOP 03-1, the Company
includes the investment return from the fixed annuity product in net investment income and
includes interest credited to contract holders in the benefits, claims and claim adjustment
expenses. In prior years, the market value spread was reported as guaranteed separate
account income in fee income and other.
    
    The effective tax rate increased for the year ended December 31, 2004 due to the absence
of a prior year tax benefit recorded in 2003.
 Outlook
    29




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RETIREMENT PLANS
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    139
    
    
    $
    107
    
    
    $
    79Earned premiums
    
    
    10
    
    
    
    10
    
    
    
    15Net investment income
    
    
    311
    
    
    
    307
    
    
    
    280Net realized capital (losses) gains
    
    
    (3
    )
    
    
    (3
    )
    
    
    2Total revenues
    
    
    457
    
    
    
    421
    
    
    
    376Benefits, claims and claim adjustment expenses
    
    
    231
    
    
    
    220
    
    
    
    225Insurance operating costs and other expenses
    
    
    115
    
    
    
    96
    
    
    
    79Amortization of deferred policy acquisition costs
    
    
    26
    
    
    
    28
    
    
    
    18Total benefits, claims and expenses
    
    
    372
    
    
    
    344
    
    
    
    322Income before income tax expense
    
    
    85
    
    
    
    77
    
    
    
    54and cumulative effect of account
changeIncome tax expense
    
    
    19
    
    
    
    17
    
    
    
    15Income before cumulative effect of accounting change
    
    
    66
    
    
    
    60
    
    
    
    39Cumulative effect of accounting change, net of tax [1]
    
    
    
    
    
    
    (1
    )
    
    
    Net Income
    
    $
    66
    
    
    $
    59
    
    
    $
    39
 Account Values
    
    2005
    
    2004
    
    2003Governmental account values
    
    
    10,475
    
    
    
    9,962
    
    
    
    8,965401(k) account values
    
    
    8,842
    
    
    
    6,531
    
    
    
    4,606Total account values
    
    $
    19,317
    
    
    $
    16,493
    
    
    $
    13,571
  [1]
    
    Represents the cumulative impact of the Companys adoption of SOP 03-1.  2005 Compared to 2004
 
    
    401(k) fee income 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 Plans segment increased approximately 7% in 2005 compared
to 2004, while net investment income increased 2%, compared to the prior year. 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.
 2004 Compared to 2003
 30




---



##### Table of Contents




    
    401(k) fee income increased 65% or $28 for year ended December 31, 2004 compared to the
prior year. This increase is a result of positive net flows from the 401(k) business of
$1.4 billion over the past four quarters driven by strong sales contributing to the
increase in 401(k) assets under management of 42% to $6.5 billion. Total deposits and net
flows increased substantially by 45% and 42%, respectively, over the prior year primarily
due to the expansion of wholesaling capabilities and new product offerings.
    
    The Governmental business contributed significantly higher income in 2004. The 11%
increase in Governmental net investment income in 2004 compared to 2003 as well as $9 of
additional fee income was attributed to the growth in the average account values as a
result of positive net flows of $230 and market appreciation of $767.
    
    The effective tax rate decreased for the year ended December 31, 2004 due to an increase
in the DRD benefit as a percentage of pre-tax income.
  
    
    Insurance operating costs and other expenses for 401(k) increased for the year ended
December 31, 2004 compared to the prior year mainly driven by greater sales and assets
under management, resulting in a 50% increase in commissions over prior year, in addition
to growth in investment technology services and sales and marketing costs.
 Outlook
  31




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##### Table of Contents



INSTITUTIONAL
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    117
    
    
    $
    158
    
    
    $
    146Earned premiums
    
    
    504
    
    
    
    464
    
    
    
    781Net investment income
    
    
    784
    
    
    
    647
    
    
    
    562Net realized capital (losses) gains
    
    
    (5
    )
    
    
    4
    
    
    
    5Total revenues
    
    
    1,400
    
    
    
    1,273
    
    
    
    1,494Benefits, claims and claim adjustment expenses
    
    
    1,199
    
    
    
    1,113
    
    
    
    1,329Insurance operating costs and other expenses
    
    
    53
    
    
    
    55
    
    
    
    36Amortization of deferred policy acquisition costs
    
    
    32
    
    
    
    26
    
    
    
    27Total benefits, claims and expenses
    
    
    1,284
    
    
    
    1,194
    
    
    
    1,392Income before income taxes
    
    
    116
    
    
    
    79
    
    
    
    102Income tax expense
    
    
    34
    
    
    
    24
    
    
    
    34Net Income
    
    $
    82
    
    
    $
    55
    
    
    $
    68
 Account Value
    
    2005
    
    2004
    
    2003Institutional account values
    
    $
    17,632
    
    
    $
    14,309
    
    
    $
    12,357Private Placement Life Insurance account values
    
    
    23,836
    
    
    
    22,498
    
    
    
    20,992Total Account Values[1]
    
    $
    41,468
    
    
    $
    36,807
    
    
    $
    33,349
  [1]
    
    Includes policyholder balances for reserves for future policy benefits for insurance
contracts.  2005 Compared to 2004
 
    
    Total revenues increased in Institutional driven by positive net flows of $2.4 billion
during the past four quarters, 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. In 2004, IIP introduced the
Hartford Income Notes, a new funding agreement backed product that provides the Company
with opportunity for future growth. These markets are very competitive and the Companys
success depends in part on the level of credited interest rates and the Companys credit
rating. 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 has decreased portfolio yields, as variable rate assets have lower initial coupon
yields then fixed rate assets. At the same time the stable value variable rate
liabilities have lower crediting rates in the current period than stable value fixed rate
liabilities, which has allowed the Company to maintain-to-slightly-increase its general
account spread on a yield basis.
  
    
    Institutionals amortization of deferred policy costs increased in 2005 due to higher
sales of Structured Settlement contracts that include life contingencies compared to the
prior year. The acquisition expenses associated with these contracts are immediately
amortized.
    
    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.
 2004 Compared to 2003
 
    
    Lower income from the IIP and PPLI businesses, excluding the aforementioned litigation
settlement.
 32




---



##### Table of Contents




    
    The decrease in net income in IIP was due primarily to lower spread income and slightly
higher insurance operating costs for the year ended December 31, 2004 as compared to 2003.
In addition, IIP reported lower earnings for 2004 compared to the prior year due to
favorable mortality experience in 2003.
    
    Earned Premiums decreased for the year ended December 31, 2004 compared to 2003 due to
lower sales on limited payment contracts for the Structured Settlement and Terminal Funding
products, consistent with a corresponding decrease in Benefits, Claims and Claim Adjustment
Expenses.
    
    The effective tax rate decreased from 2003 to 2004 due to an increase in DRD tax benefit
as a percentage of pre-tax earnings.
 Outlook
   33




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##### Table of Contents



INDIVIDUAL LIFE
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    742
    
    
    $
    705
    
    
    $
    685Earned premiums
    
    
    (26
    )
    
    
    (16
    )
    
    
    (14
    )Net investment income
    
    
    272
    
    
    
    269
    
    
    
    227Net realized capital gains (losses)
    
    
    3
    
    
    
    8
    
    
    
    (4
    )Total revenues
    
    
    991
    
    
    
    966
    
    
    
    894Benefits, claims and claim adjustment expenses
    
    
    420
    
    
    
    424
    
    
    
    380Insurance operating costs and other expenses
    
    
    157
    
    
    
    153
    
    
    
    150Amortization of deferred policy acquisition costs
    
    
    196
    
    
    
    175
    
    
    
    166Total benefits, claims and expenses
    
    
    773
    
    
    
    752
    
    
    
    696Income before income taxes and cumulative effect of
accounting change
    
    
    218
    
    
    
    214
    
    
    
    198Income tax expense
    
    
    69
    
    
    
    70
    
    
    
    64Income before cumulative effect of accounting change
    
    
    149
    
    
    
    144
    
    
    
    134Cumulative effect of accounting change, net of tax [1]
    
    
    
    
    
    
    (1
    )
    
    
    Net income
    
    $
    149
    
    
    $
    143
    
    
    $
    134
 Account values
    
    2005
    
    2004
    
    2003Variable universal life
    
    $
    5,902
    
    
    $
    5,356
    
    
    $
    4,725Total account values
    
    $
    9,819
    
    
    $
    8,975
    
    
    $
    8,200
 [1]
    
    Represents the cumulative impact of the Companys adoption of SOP 03-1.  2005 Compared to 2004
 
    
    Fee income increased $37 for the year ended December 31, 2005 as compared to the prior
year. 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 a moderate $3 for the year ended December 31, 2005 as
compared to the prior year 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.
    
    Income tax expense and the resulting tax rate for the year ended December 31, 2005 was
aided by a DRD tax benefit of $7, whereas income tax expense for the year ended December
31, 2004 includes a DRD tax benefit of $5.
  
    
    Amortization of DAC increased for the year ended December 31, 2005 compared to the prior
year 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 $4 for the year ended December
31, 2005 compared to the prior year as a result of business growth.
 34




---



##### Table of Contents



2004 Compared to 2003 
 
    
    Fee income increased for the year ended December 31, 2004 as compared to the prior year
primarily due to increased cost of insurance charges as life insurance inforce grew and
aged and variable universal life account values increased driven by favorable equity
markets and new sales. Account values grew 9% from 2003 to 2004.
    
    Net investment income increased for the year ended December 31, 2004 as compared to the
prior year primarily due to the adoption of SOP 03-1, growth in general account values and
prepayments on bonds. The adoption of SOP 03-1 also resulted in increases in benefits,
claims and claim adjustment expenses and a decrease to fee income and other for the year
ended December 31, 2004 as compared to the prior year period for the segments Modified
Guarantee Life Insurance product, which was formerly classified as a separate account
product.
  
    
    Benefits, claims and claim adjustment expenses increased for the year ended December 31,
2004 as compared to the prior year primarily due to the absence in 2004 of the unusually
favorable mortality experienced in 2003, along with continued growth and aging of life
insurance inforce.
    
    Insurance operating costs and other expenses increased for the year ended December 31,
2004 as compared to the prior year as a result of business growth.
    
    Additionally, income tax expense was higher for the year ended December 31, 2004 as
compared to the prior year due primarily to earnings growth, as discussed above. Income
tax expense includes a DRD tax benefit of $5 related to the 2004 tax year, whereas, income
tax expense for 2003 includes a total DRD tax benefit of $6.
 Outlook
  35




---



##### Table of Contents



OTHER
 Operating Summary
 2005
    
    2004
    
    2003Fee income and other
    
    $
    76
    
    
    $
    102
    
    
    $
    130Earned premiums
    
    
    71
    
    
    
    70
    
    
    
    64Net investment income
    
    
    268
    
    
    
    234
    
    
    
    264Net realized capital gains (losses)
    
    
    71
    
    
    
    132
    
    
    
    (25
    )Total revenues
    
    
    486
    
    
    
    538
    
    
    
    433Benefits, claims and claim adjustment expenses
    
    
    263
    
    
    
    280
    
    
    
    273Insurance operating costs and other expenses
    
    
    77
    
    
    
    43
    
    
    
    92Amortization of deferred policy acquisition costs and present value of future profits
    
    
    2
    
    
    
    
    
    
    
    (15
    )Total benefits, claims and expenses
    
    
    342
    
    
    
    323
    
    
    
    350Income before income taxes and cumulative effect of accounting change
    
    
    144
    
    
    
    215
    
    
    
    83Income tax expense(benefit)
    
    
    52
    
    
    
    (117
    )
    
    
    28Income before cumulative effect of accounting change
    
    
    92
    
    
    
    332
    
    
    
    55Cumulative effect of accounting change, net of tax [1]
    
    
    
    
    
    
    3
    
    
    
    Net income
    
    $
    92
    
    
    $
    335
    
    
    $
    55
  [1]
    
    Represents the cumulative impact of the Companys adoption of SOP 03-1. 2005 Compared to 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.
 2004 Compared to 2003
  
    
    Net realized capital gains increased for the year ended December 31, 2004 due to net
gains on bond sales and lower impairments.
    
    Income tax benefit increased for the year ended December 31, 2004 due to a $191 tax
benefit recorded during 2004.
 36




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##### Table of Contents



INVESTMENTS
 General
         Valuation of Investments and Derivative Instruments
 37
    Table of Contents    Valuation of Fixed Maturities
    2005
    
    2004Percentage
    
    
    
    
    
    Percentageof Total
    
    
    
    
    
    of TotalFair Value
    
    Fair Value
    
    Fair Value
    
    Fair ValuePriced via independent market quotations
    
    $
    36,055
    
    
    
    83.4
    %
    
    $
    34,555
    
    
    
    80.9
    %Priced via broker quotations
    
    
    2,271
    
    
    
    5.2
    %
    
    
    3,082
    
    
    
    7.2
    %Priced via matrices
    
    
    3,667
    
    
    
    8.5
    %
    
    
    3,508
    
    
    
    8.2
    %Priced via other methods
    
    
    202
    
    
    
    0.5
    %
    
    
    61
    
    
    
    0.2
    %Short-term investments [1]
    
    
    1,047
    
    
    
    2.4
    %
    
    
    1,485
    
    
    
    3.5
    %Total
    
    $
    43,242
    
    
    
    100.0
    %
    
    $
    42,691
    
    
    
    100.0
    %
 [1]
    
    Short-term investments are primarily valued at amortized cost, which approximates fair value.  Valuation of Derivative Instruments
   38




---



##### Table of Contents



Composition of Invested Assets2005
    
    2004Amount
    
    Percent
    
    Amount
    
    PercentFixed maturities, available-for-sale, at fair value
    
    $
    43,242
    
    
    
    91.1
    %
    
    $
    42,691
    
    
    
    91.7
    %Equity securities, available-for-sale, at fair value
    
    
    310
    
    
    
    0.7
    %
    
    
    179
    
    
    
    0.4
    %Policy loans, at outstanding balance
    
    
    1,971
    
    
    
    4.1
    %
    
    
    2,617
    
    
    
    5.6
    %Mortgage loans, at amortized cost
    
    
    1,355
    
    
    
    2.9
    %
    
    
    794
    
    
    
    1.7
    %Limited partnerships, at fair value
    
    
    423
    
    
    
    0.9
    %
    
    
    247
    
    
    
    0.5
    %Other investments
    
    
    157
    
    
    
    0.3
    %
    
    
    43
    
    
    
    0.1
    %Total investments
    
    $
    47,458
    
    
    
    100.0
    %
    
    $
    46,571
    
    
    
    100.0
    %
  Investment Results
  (Before-tax)
    
    2005
    
    2004
    
    2003Net investment income  excluding income on policy loans
    
    $
    2,427
    
    
    $
    2,287
    
    
    $
    1,557Policy loan income
    
    
    142
    
    
    
    183
    
    
    
    207Net investment income  total
    
    $
    2,569
    
    
    $
    2,470
    
    
    $
    1,764Yield on average invested assets [1]
    
    
    5.7
    %
    
    
    5.8
    %
    
    
    6.1
    %Gross gains on sale
    
    $
    310
    
    
    $
    326
    
    
    $
    215Gross losses on sale
    
    
    (218
    )
    
    
    (133
    )
    
    
    (95
    )Impairments
    
    
    (27
    )
    
    
    (18
    )
    
    
    (139
    )Japanese fixed annuity contract hedges, net [2]
    
    
    (36
    )
    
    
    3
    
    
    
    Periodic net coupon settlements on credit derivatives/Japan
    
    
    (32
    )
    
    
    7
    
    
    
    2GMWB derivatives, net
    
    
    (55
    )
    
    
    
    
    
    
    GMIB
    
    
    113
    
    
    
    
    
    
    
    Other, net [3]
    
    
    20
    
    
    
    (45
    )
    
    
    4Net realized capital gains (losses), before-tax
    
    $
    75
    
    
    $
    140
    
    
    $
    (13
    )
  [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 the securities lending program 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. 2005 Compared to 2004
  39




---



##### Table of Contents




    
    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. If interest rates remain at
current levels or rise during 2006, or credit spreads widen, net realized capital gains on
fixed maturity sales for 2006 will likely be lower than the 2005 levels. The losses
associated with the GMWB derivatives were primarily driven by changes in the GMWB rider
valuation assumptions in the fourth quarter of 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 Japanese fixed annuity contract hedges amount consists of the foreign currency
transaction remeasurements associated with the yen denominated fixed annuity contracts
offered in Japan and the corresponding offsetting cross currency swaps. Although the
Japanese fixed annuity contracts are economically hedged, the net realized capital losses
result from the accounting which requires fixed annuity liabilities to be recorded at cost
and derivatives to be reported at fair value. The 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 4 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
US 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 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.
   2004 Compared to 2003
 40




---



##### Table of Contents



Separate Account Products
    Other-Than-Temporary Impairments
  41




---



##### Table of Contents



2005
    
    2004
    
    2003ABS
    
    $
    2
    
    
    $
    6
    
    
    $
    75Commercial mortgages
    
    
    
    
    
    
    3
    
    
    
    CMBS/Collateralized mortgage obligations (CMO)
    
    
    1
    
    
    
    3
    
    
    
    5Corporate
    
    
    24
    
    
    
    4
    
    
    
    45Equity
    
    
    
    
    
    
    
    
    
    
    8MBS  interest only securities
    
    
    
    
    
    
    2
    
    
    
    6Total other-than-temporary impairments
    
    $
    27
    
    
    $
    18
    
    
    $
    139
    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. These investments continue to perform 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
  42




---



##### Table of Contents



2003
  
    
    Approximately $25 of impairments on corporate fixed maturities were within the food and
beverage sector related to securities issued by the Italian dairy concern, Parmalat SpA.
Parmalat filed for bankruptcy in December 2003 due to liquidity problems when it was
discovered that 4 billion euros of liquid investments previously reported on its balance
sheet were non-existent.
  
    
    Within ABS other-than-temporary impairments, there were approximately $29 of aircraft
lease receivables and $15 of collaterized debt obligations (CDO). The aircraft lease
receivable impairments primarily consisted of investments in lower tranches of four
transactions. These securities are supported by aircraft leases and enhanced equipment
trust certificates issued by multiple airlines that had sustained a steep decline in market
value and adverse change in expected cash flows due to continued lower aircraft lease
rates, airline bankruptcies and the prolonged decline in airline travel. The CDO
impairments consisted of approximately six securities, the majority of which were interests
in the lower tranches of securities backed by high yield corporate debt. These impairments
were primarily the result of continued high default rates in 2003 and lower expected
recovery rates on the CDOs underlying collateral.
 43




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##### Table of Contents



INVESTMENT CREDIT RISK
    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, 2005 and 2004, the
notional value of total return swaps and credit spreadlocks totaled $1.3 billion and $1.0
billion, respectively, and the fair value totaled $4 and $5, respectively.
    
    Credit default swaps involve a transfer of credit risk 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 only 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. As of December 31, 2005 and 2004, the
notional value of these credit default swaps, which exposed the Company to credit risk,
totaled $499 and $297, respectively, and the swap fair value totaled $(3) and $2,
respectively. As of December 31, 2005, the average S&P rating for these
referenced security issuer debt obligations is A-.
    
    The Company also uses credit default swaps to reduce its credit exposure by entering
into 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. Alternatively, the derivative counterparty may be required
to purchase the referenced security at a predetermined value. The Company enters into
these agreements as an efficient means to reduce credit exposure to the specified issuers.
As of December 31, 2005 and 2004, the notional value of these credit default swaps totaled
$179 and $165, respectively, and the swap fair value totaled $2 and $(1), respectively. As
of December 31, 2005, the average S&P rating for these referenced securities
issuers is BBB.
 44




---



##### Table of Contents



Fixed Maturities
  Fixed Maturities by Type2005
    
    2004Percent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Percentof Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    of TotalAmortized
    
    Unrealized
    
    Unrealized
    
    Fair
    
    Fair
    
    Amortized
    
    Unrealized
    
    Unrealized
    
    Fair
    
    FairCost
    
    Gains
    
    Losses
    
    Value
    
    Value
    
    Cost
    
    Gains
    
    Losses
    
    Value
    
    ValueABS
    
    $
    6,383
    
    
    $
    44
    
    
    $
    (73
    )
    
    $
    6,354
    
    
    
    14.7
    %
    
    $
    5,881
    
    
    $
    72
    
    
    $
    (61
    )
    
    $
    5,892
    
    
    
    13.8
    %CMBS
    
    
    8,311
    
    
    
    159
    
    
    
    (85
    )
    
    
    8,385
    
    
    
    19.4
    %
    
    
    7,390
    
    
    
    329
    
    
    
    (17
    )
    
    
    7,702
    
    
    
    18.0
    %CMOs
    
    
    764
    
    
    
    3
    
    
    
    (4
    )
    
    
    763
    
    
    
    1.8
    %
    
    
    882
    
    
    
    9
    
    
    
    (3
    )
    
    
    888
    
    
    
    2.1
    %CorporateBasic industry
    
    
    2,004
    
    
    
    77
    
    
    
    (33
    )
    
    
    2,048
    
    
    
    4.7
    %
    
    
    2,133
    
    
    
    171
    
    
    
    (5
    )
    
    
    2,299
    
    
    
    5.4
    %Capital goods
    
    
    1,479
    
    
    
    86
    
    
    
    (14
    )
    
    
    1,551
    
    
    
    3.6
    %
    
    
    1,328
    
    
    
    118
    
    
    
    (4
    )
    
    
    1,442
    
    
    
    3.4
    %Consumer cyclical
    
    
    1,956
    
    
    
    71
    
    
    
    (32
    )
    
    
    1,995
    
    
    
    4.6
    %
    
    
    2,201
    
    
    
    158
    
    
    
    (5
    )
    
    
    2,354
    
    
    
    5.5
    %Consumer non-cyclical
    
    
    2,096
    
    
    
    115
    
    
    
    (20
    )
    
    
    2,191
    
    
    
    5.1
    %
    
    
    2,294
    
    
    
    196
    
    
    
    (4
    )
    
    
    2,486
    
    
    
    5.8
    %Energy
    
    
    1,006
    
    
    
    101
    
    
    
    (7
    )
    
    
    1,100
    
    
    
    2.5
    %
    
    
    1,172
    
    
    
    116
    
    
    
    (1
    )
    
    
    1,287
    
    
    
    3.0
    %Financial services
    
    
    5,861
    
    
    
    273
    
    
    
    (46
    )
    
    
    6,088
    
    
    
    14.1
    %
    
    
    5,538
    
    
    
    448
    
    
    
    (18
    )
    
    
    5,968
    
    
    
    14.0
    %Technology and
communications
    
    
    2,653
    
    
    
    177
    
    
    
    (28
    )
    
    
    2,802
    
    
    
    6.5
    %
    
    
    3,197
    
    
    
    314
    
    
    
    (10
    )
    
    
    3,501
    
    
    
    8.2
    %Transportation
    
    
    622
    
    
    
    29
    
    
    
    (5
    )
    
    
    646
    
    
    
    1.5
    %
    
    
    587
    
    
    
    44
    
    
    
    (1
    )
    
    
    630
    
    
    
    1.5
    %Utilities
    
    
    2,445
    
    
    
    147
    
    
    
    (26
    )
    
    
    2,566
    
    
    
    5.9
    %
    
    
    2,040
    
    
    
    215
    
    
    
    (7
    )
    
    
    2,248
    
    
    
    5.3
    %Other
    
    
    1,057
    
    
    
    22
    
    
    
    (15
    )
    
    
    1,064
    
    
    
    2.5
    %
    
    
    710
    
    
    
    46
    
    
    
    (2
    )
    
    
    754
    
    
    
    1.8
    %Government/Government
agenciesForeign
    
    
    646
    
    
    
    43
    
    
    
    (4
    )
    
    
    685
    
    
    
    1.6
    %
    
    
    649
    
    
    
    60
    
    
    
    (2
    )
    
    
    707
    
    
    
    1.7
    %United States
    
    
    435
    
    
    
    23
    
    
    
    (2
    )
    
    
    456
    
    
    
    1.1
    %
    
    
    774
    
    
    
    19
    
    
    
    (4
    )
    
    
    789
    
    
    
    1.8
    %MBS  agency
    
    
    2,559
    
    
    
    6
    
    
    
    (39
    )
    
    
    2,526
    
    
    
    5.8
    %
    
    
    1,542
    
    
    
    18
    
    
    
    (2
    )
    
    
    1,558
    
    
    
    3.6
    %Municipal
    
    
    926
    
    
    
    47
    
    
    
    (4
    )
    
    
    969
    
    
    
    2.2
    %
    
    
    675
    
    
    
    30
    
    
    
    (5
    )
    
    
    700
    
    
    
    1.6
    %Redeemable preferred
stock
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    Short-term
    
    
    1,047
    
    
    
    
    
    
    
    
    
    
    
    1,047
    
    
    
    2.4
    %
    
    
    1,485
    
    
    
    
    
    
    
    
    
    
    
    1,485
    
    
    
    3.5
    %Total fixed maturities
    
    $
    42,256
    
    
    $
    1,423
    
    
    $
    (437
    )
    
    $
    43,242
    
    
    
    100.0
    %
    
    $
    40,479
    
    
    $
    2,363
    
    
    $
    (151
    )
    
    $
    42,691
    
    
    
    100.0
    %
     45




---



##### Table of Contents









Fixed Maturities by Credit Quality2005
    
    2004Percent of
    
    
    
    
    
    
    
    
    
    Percent ofAmortized
    
    
    
    
    
    Total Fair
    
    Amortized
    
    
    
    
    
    Total FairCost
    
    Fair Value
    
    Value
    
    Cost
    
    Fair Value
    
    ValueUnited States
Government/Government
agencies
    
    $
    3,705
    
    
    $
    3,691
    
    
    
    8.5
    %
    
    $
    3,205
    
    
    $
    3,242
    
    
    
    7.6
    %AAA
    
    
    8,436
    
    
    
    8,524
    
    
    
    19.7
    %
    
    
    7,814
    
    
    
    8,039
    
    
    
    18.8
    %AA
    
    
    5,128
    
    
    
    5,222
    
    
    
    12.1
    %
    
    
    4,168
    
    
    
    4,358
    
    
    
    10.2
    %A
    
    
    11,748
    
    
    
    12,297
    
    
    
    28.5
    %
    
    
    11,120
    
    
    
    12,039
    
    
    
    28.2
    %BBB
    
    
    10,748
    
    
    
    11,019
    
    
    
    25.5
    %
    
    
    11,113
    
    
    
    11,892
    
    
    
    27.9
    %BB & below
    
    
    1,444
    
    
    
    1,442
    
    
    
    3.3
    %
    
    
    1,574
    
    
    
    1,636
    
    
    
    3.8
    %Short-term
    
    
    1,047
    
    
    
    1,047
    
    
    
    2.4
    %
    
    
    1,485
    
    
    
    1,485
    
    
    
    3.5
    %Total fixed maturities
    
    $
    42,256
    
    
    $
    43,242
    
    
    
    100.0
    %
    
    $
    40,479
    
    
    $
    42,691
    
    
    
    100.0
    %




46



---



##### Table of Contents



BIG Fixed Maturities by Type2005
    
    2004Percent of
    
    
    
    
    
    
    
    
    
    Percent ofAmortized
    
    
    
    
    
    Total Fair
    
    Amortized
    
    
    
    
    
    Total FairCost
    
    Fair Value
    
    Value
    
    Cost
    
    Fair Value
    
    ValueABS
    
    $
    207
    
    
    $
    176
    
    
    
    12.2
    %
    
    $
    183
    
    
    $
    159
    
    
    
    9.7
    %CMBS
    
    
    49
    
    
    
    58
    
    
    
    4.0
    %
    
    
    82
    
    
    
    88
    
    
    
    5.4
    %CorporateBasic industry
    
    
    203
    
    
    
    201
    
    
    
    14.0
    %
    
    
    164
    
    
    
    176
    
    
    
    10.7
    %Capital goods
    
    
    92
    
    
    
    91
    
    
    
    6.3
    %
    
    
    115
    
    
    
    116
    
    
    
    7.1
    %Consumer cyclical
    
    
    191
    
    
    
    188
    
    
    
    13.0
    %
    
    
    120
    
    
    
    127
    
    
    
    7.8
    %Consumer non-cyclical
    
    
    129
    
    
    
    136
    
    
    
    9.4
    %
    
    
    141
    
    
    
    149
    
    
    
    9.1
    %Energy
    
    
    74
    
    
    
    72
    
    
    
    5.0
    %
    
    
    51
    
    
    
    54
    
    
    
    3.3
    %Financial services
    
    
    9
    
    
    
    9
    
    
    
    0.6
    %
    
    
    22
    
    
    
    23
    
    
    
    1.4
    %Technology and communications
    
    
    181
    
    
    
    189
    
    
    
    13.1
    %
    
    
    267
    
    
    
    288
    
    
    
    17.6
    %Transportation
    
    
    11
    
    
    
    10
    
    
    
    0.7
    %
    
    
    8
    
    
    
    8
    
    
    
    0.5
    %Utilities
    
    
    117
    
    
    
    119
    
    
    
    8.3
    %
    
    
    226
    
    
    
    237
    
    
    
    14.5
    %Foreign government
    
    
    177
    
    
    
    189
    
    
    
    13.1
    %
    
    
    176
    
    
    
    193
    
    
    
    11.8
    %Other
    
    
    4
    
    
    
    4
    
    
    
    0.3
    %
    
    
    19
    
    
    
    18
    
    
    
    1.1
    %Total fixed maturities
    
    $
    1,444
    
    
    $
    1,442
    
    
    
    100.0
    %
    
    $
    1,574
    
    
    $
    1,636
    
    
    
    100.0
    %
   Unrealized Loss Aging of Total Available-for-Sale Securities2005
    
    2004Amortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    UnrealizedCost
    
    Value
    
    Loss
    
    Cost
    
    Value
    
    LossThree months or less
    
    $
    9,637
    
    
    $
    9,483
    
    
    $
    (154
    )
    
    $
    4,627
    
    
    $
    4,601
    
    
    $
    (26
    )Greater than three months to six months
    
    
    3,074
    
    
    
    3,000
    
    
    
    (74
    )
    
    
    420
    
    
    
    417
    
    
    
    (3
    )Greater than six months to nine months
    
    
    769
    
    
    
    752
    
    
    
    (17
    )
    
    
    1,667
    
    
    
    1,638
    
    
    
    (29
    )Greater than nine months to twelve months
    
    
    1,890
    
    
    
    1,829
    
    
    
    (61
    )
    
    
    351
    
    
    
    337
    
    
    
    (14
    )Greater than twelve months
    
    
    2,737
    
    
    
    2,603
    
    
    
    (134
    )
    
    
    1,175
    
    
    
    1,093
    
    
    
    (82
    )Total
    
    $
    18,107
    
    
    $
    17,667
    
    
    $
    (440
    )
    
    $
    8,240
    
    
    $
    8,086
    
    
    $
    (154
    )
   47




---



##### Table of Contents



Total Available-for-Sale Securities with Unrealized Loss Greater Than Six Months by Type2005
    
    2004Percent of
    
    
    
    
    
    
    
    
    
    
    
    
    
    Percent ofTotal
    
    
    
    
    
    
    
    
    
    
    
    
    
    TotalFair
    
    Unrealized
    
    Unrealized
    
    Amortized
    
    Fair
    
    Unrealized
    
    UnrealizedAmortized Cost
    
    Value
    
    Loss
    
    Loss
    
    Cost
    
    Value
    
    Loss
    
    LossABSAircraft lease receivables
    
    $
    160
    
    
    $
    113
    
    
    $
    (47
    )
    
    
    22.2
    %
    
    $
    177
    
    
    $
    127
    
    
    $
    (50
    )
    
    
    40.0
    %CDOs
    
    
    25
    
    
    
    24
    
    
    
    (1
    )
    
    
    0.5
    %
    
    
    54
    
    
    
    52
    
    
    
    (2
    )
    
    
    1.6
    %Credit card receivables
    
    
    109
    
    
    
    107
    
    
    
    (2
    )
    
    
    0.9
    %
    
    
    61
    
    
    
    60
    
    
    
    (1
    )
    
    
    0.8
    %Other ABS
    
    
    493
    
    
    
    484
    
    
    
    (9
    )
    
    
    4.2
    %
    
    
    328
    
    
    
    323
    
    
    
    (5
    )
    
    
    4.0
    %CMBS
    
    
    1,227
    
    
    
    1,193
    
    
    
    (34
    )
    
    
    16.0
    %
    
    
    500
    
    
    
    492
    
    
    
    (8
    )
    
    
    6.4
    %CorporateBasic industry
    
    
    317
    
    
    
    304
    
    
    
    (13
    )
    
    
    6.1
    %
    
    
    223
    
    
    
    219
    
    
    
    (4
    )
    
    
    3.2
    %Consumer cyclical
    
    
    270
    
    
    
    256
    
    
    
    (14
    )
    
    
    6.6
    %
    
    
    98
    
    
    
    95
    
    
    
    (3
    )
    
    
    2.4
    %Consumer non-cyclical
    
    
    210
    
    
    
    199
    
    
    
    (11
    )
    
    
    5.2
    %
    
    
    151
    
    
    
    148
    
    
    
    (3
    )
    
    
    2.4
    %Financial services
    
    
    978
    
    
    
    951
    
    
    
    (27
    )
    
    
    12.7
    %
    
    
    595
    
    
    
    576
    
    
    
    (19
    )
    
    
    15.2
    %Technology and communications
    
    
    249
    
    
    
    237
    
    
    
    (12
    )
    
    
    5.7
    %
    
    
    200
    
    
    
    191
    
    
    
    (9
    )
    
    
    7.2
    %Transportation
    
    
    30
    
    
    
    30
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    12
    
    
    
    (1
    )
    
    
    0.8
    %Utilities
    
    
    98
    
    
    
    93
    
    
    
    (5
    )
    
    
    2.4
    %
    
    
    140
    
    
    
    135
    
    
    
    (5
    )
    
    
    4.0
    %Other
    
    
    294
    
    
    
    280
    
    
    
    (14
    )
    
    
    6.6
    %
    
    
    144
    
    
    
    140
    
    
    
    (4
    )
    
    
    3.2
    %Other securities
    
    
    936
    
    
    
    913
    
    
    
    (23
    )
    
    
    10.9
    %
    
    
    509
    
    
    
    498
    
    
    
    (11
    )
    
    
    8.8
    %Total
    
    $
    5,396
    
    
    $
    5,184
    
    
    $
    (212
    )
    
    
    100.0
    %
    
    $
    3,193
    
    
    $
    3,068
    
    
    $
    (125
    )
    
    
    100.0
    %
  Aircraft lease receivables
 CMBS
 Financial services
 48




---



##### Table of Contents



Unrealized Loss Aging of Available-for-Sale BIG and Equity Securities2005
    
    2004Amortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    UnrealizedCost
    
    Value
    
    Loss
    
    Cost
    
    Value
    
    LossThree months or less
    
    $
    311
    
    
    $
    296
    
    
    $
    (15
    )
    
    $
    146
    
    
    $
    143
    
    
    $
    (3
    )Greater than three months to six months
    
    
    106
    
    
    
    102
    
    
    
    (4
    )
    
    
    13
    
    
    
    12
    
    
    
    (1
    )Greater than six months to nine months
    
    
    99
    
    
    
    95
    
    
    
    (4
    )
    
    
    93
    
    
    
    88
    
    
    
    (5
    )Greater than nine months to twelve months
    
    
    47
    
    
    
    44
    
    
    
    (3
    )
    
    
    59
    
    
    
    54
    
    
    
    (5
    )Greater than twelve months
    
    
    236
    
    
    
    198
    
    
    
    (38
    )
    
    
    153
    
    
    
    117
    
    
    
    (36
    )Total
    
    $
    799
    
    
    $
    735
    
    
    $
    (64
    )
    
    $
    464
    
    
    $
    414
    
    
    $
    (50
    )
   Available-for-Sale BIG and Equity Securities with Unrealized Loss Greater Than Six Months by Type2005
    
    2004Percent of
    
    
    
    
    
    
    
    
    
    
    
    
    
    Percent ofTotal
    
    
    
    
    
    
    
    
    
    
    
    
    
    TotalAmortized
    
    Fair
    
    Unrealized
    
    Unrealized
    
    Amortized
    
    Fair
    
    Unrealized
    
    UnrealizedCost
    
    Value
    
    Loss
    
    Loss
    
    Cost
    
    Value
    
    Loss
    
    LossABSAircraft lease receivables
    
    $
    86
    
    
    $
    57
    
    
    $
    (29
    )
    
    
    64.5
    %
    
    $
    96
    
    
    $
    66
    
    
    $
    (30
    )
    
    
    65.2
    %CDOs
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    16
    
    
    
    (1
    )
    
    
    2.2
    %Credit card receivables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    8
    
    
    
    
    
    
    
    Other ABS
    
    
    12
    
    
    
    10
    
    
    
    (2
    )
    
    
    4.4
    %
    
    
    4
    
    
    
    3
    
    
    
    (1
    )
    
    
    2.2
    %CorporateBasic industry
    
    
    51
    
    
    
    50
    
    
    
    (1
    )
    
    
    2.2
    %
    
    
    10
    
    
    
    9
    
    
    
    (1
    )
    
    
    2.2
    %Consumer cyclical
    
    
    61
    
    
    
    58
    
    
    
    (3
    )
    
    
    6.7
    %
    
    
    6
    
    
    
    6
    
    
    
    
    
    
    
    Consumer non-cyclical
    
    
    8
    
    
    
    8
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    Financial services
    
    
    44
    
    
    
    42
    
    
    
    (2
    )
    
    
    4.4
    %
    
    
    45
    
    
    
    41
    
    
    
    (4
    )
    
    
    8.7
    %Technology and communications
    
    
    39
    
    
    
    36
    
    
    
    (3
    )
    
    
    6.7
    %
    
    
    59
    
    
    
    54
    
    
    
    (5
    )
    
    
    10.8
    %Utilities
    
    
    20
    
    
    
    18
    
    
    
    (2
    )
    
    
    4.4
    %
    
    
    38
    
    
    
    35
    
    
    
    (3
    )
    
    
    6.5
    %Other
    
    
    59
    
    
    
    56
    
    
    
    (3
    )
    
    
    6.7
    %
    
    
    20
    
    
    
    19
    
    
    
    (1
    )
    
    
    2.2
    %Other securities
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    Total
    
    $
    382
    
    
    $
    337
    
    
    $
    (45
    )
    
    
    100.0
    %
    
    $
    305
    
    
    $
    259
    
    
    $
    (46
    )
    
    
    100.0
    %
  49




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50




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##### Table of Contents



CAPITAL MARKETS RISK MANAGEMENT
  Market Risk
  Interest Rate Risk
      51




---



##### Table of Contents



Equity Risk
   Foreign Currency Exchange Risk
  Derivative Instruments
         Key Market Risk Exposures
  52




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##### Table of Contents



Interest Rate Risk
  Fixed Maturity Investments
  Liabilities
     Derivatives
  53




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##### Table of Contents



Calculated Interest Rate Sensitivity
  Change in Net Economic Value As of December 31,2005
    
    2004Basis point shift
    
    
    -100
    
    
    
    +100
    
    
    
    -100
    
    
    
    +100Amount
    
    $
    (53
    )
    
    $
    3
    
    
    $
    (59
    )
    
    $
    14
   Change in Fair Value As of December 31,2005
    
    2004Basis point shift
    
    
    -100
    
    
    
    +100
    
    
    
    -100
    
    
    
    +100Amount
    
    $
    436
    
    
    $
    (419
    )
    
    $
    482
    
    
    $
    (472
    )
  Equity Risk
  54




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55




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##### Table of Contents



Foreign Currency Exchange Risk
  56




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57




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##### Table of Contents



CAPITAL RESOURCES AND LIQUIDITY
  Contractual Obligations
  Payments due by periodLess than
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    1 year
    
    1-3 years
    
    3-5 years
    
    5 yearsOperating leases
    
    $
    142
    
    
    
    33
    
    
    
    57
    
    
    
    44
    
    
    
    8Policyholder obligations [1]
    
    
    296,532
    
    
    
    18,914
    
    
    
    41,357
    
    
    
    42,210
    
    
    
    194,051Other long-term liabilities
    
    
    1,566
    
    
    
    1,524
    
    
    
    
    
    
    
    42
    
    
    
    Total
    
    $
    298,240
    
    
    
    20,471
    
    
    
    41,414
    
    
    
    42,296
    
    
    
    194,059
 [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
    
    2005
    
    2004
    
    2003Cash provided by operating activities
    
    $
    1,288
    
    
    $
    755
    
    
    $
    1,221Cash used for investing activities
    
    
    (2,357
    )
    
    
    (915
    )
    
    
    (3,634
    )Cash provided by financing activities
    
    
    978
    
    
    
    280
    
    
    
    2,430Cash  End of Year
    
    
    124
    
    
    
    216
    
    
    
    96
 2005 Compared to 2004
 2004 Compared to 2003
 Dividends
  58




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##### Table of Contents



Ratings
   Standard &A.M. Best
    
    Fitch
    
    Poors
    
    MoodysInsurance RatingsHartford Life Insurance Company
    
    
    A+
    
    
    AA
    
    AA-
    
    Aa3Hartford Life and Annuity Insurance Company
    
    
    A+
    
    
    AA
    
    AA-
    
    Aa3Other RatingsHartford Life Insurance Company:Short Term Rating
    
    
    
    
    
    
    
    
    
    
    A-1+
    
    
    P
    -1
  Equity Markets
  Risk-Based Capital
  NAIC Developments
 Changes to the NAIC RBC Requirements for Variable Annuities with Guarantees  C-3 Phase II Capital
    Contingencies
 Legal Proceedings
 Dependence on Certain Third Party Relationships 
 59




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##### 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
  
 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 Item 9A. CONTROLS AND PROCEDURES
 Evaluation of disclosure controls and procedures
  Changes in internal control over financial reporting
  
 Item 9B. OTHER INFORMATION
  60




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##### Table of Contents



PART III
 
 Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
  Year Ended
    
    
    Year EndedDecember 31, 2005
    
    
    December 31, 2004(1) Audit fees
    
    $
    4,813,471
    
    
    $
    4,319,008(2) Audit-related fees(a)
    
    
    36,730
    
    
    
    91,569(3) Tax fees(b)
    
    
    11,000
    
    
    
    9,832(4) All other fees
    
    
    
    
    
    
    
 
 (a)
    
    Fees for the year ended December 31, 2005 principally consisted of internal control
reviews. Fees for the year ended December 31, 2004 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.   
 PART IV
 
 Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
  1.
    
    Consolidated Financial Statements. See Index to Consolidated Financial Statements and
Schedules elsewhere herein.2.
    
    Consolidated Financial Statement Schedules. See Index to Consolidated Financial Statement
Schedules elsewhere herein.3.
    
    Exhibits. See Exhibit Index elsewhere herein.
 61




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##### 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, 2005
    
    
    F-3Consolidated Balance Sheets as of December 31, 2005 and 2004
    
    
    F-4Consolidated Statements of Changes in Stockholders Equity for the three years ended December 31, 2005
    
    
    F-5Consolidated Statements of Cash Flows for the three years ended December 31, 2005
    
    
    F-6Notes to Consolidated Financial Statements
    
    
    F-7  43Schedule I  Summary of Investments  Other Than Investments in Affiliates
    
    
    S-1Schedule III  Supplementary Insurance Information
    
    
    S-2Schedule IV  Reinsurance
    
    
    S-3
 F-1




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
        F-2




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 Consolidated Statements of Income
 For the years ended December 31,(In millions)
    
    2005
    
    2004
    
    2003RevenuesFee income and other
    
    $
    2,811
    
    
    $
    2,592
    
    
    $
    2,297Earned premiums
    
    
    449
    
    
    
    484
    
    
    
    806Net investment income
    
    
    2,569
    
    
    
    2,470
    
    
    
    1,764Net realized capital gains (losses)
    
    
    75
    
    
    
    140
    
    
    
    (13
    )Total revenues
    
    
    5,904
    
    
    
    5,686
    
    
    
    4,854Benefits, claims and expensesBenefits, claims and claim adjustment expenses
    
    
    3,008
    
    
    
    3,111
    
    
    
    2,726Insurance expenses and other
    
    
    798
    
    
    
    709
    
    
    
    625Amortization of deferred policy acquisition costs and present value
of future profits
    
    
    945
    
    
    
    825
    
    
    
    646Dividends to policyholders
    
    
    37
    
    
    
    29
    
    
    
    63Total benefits, claims and expenses
    
    
    4,788
    
    
    
    4,674
    
    
    
    4,060Income before income tax expense and cumulative effect of
accounting changes
    
    
    1,116
    
    
    
    1,012
    
    
    
    794Income tax expense
    
    
    207
    
    
    
    29
    
    
    
    168Income before cumulative effect of accounting changes
    
    
    909
    
    
    
    983
    
    
    
    626Cumulative effect of accounting changes, net of tax
    
    
    
    
    
    
    (18
    )
    
    
    Net income
    
    $
    909
    
    
    $
    965
    
    
    $
    626
 See Notes to Consolidated Financial Statements.
 F-3




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 Consolidated Balance Sheets
 As of December 31,(In millions, except for share data)
    
    2005
    
    2004AssetsInvestmentsFixed maturities, available for sale, at fair value (amortized cost of $42,256
and $40,479)
    
    $
    43,242
    
    
    $
    42,691Equity securities, available for sale, at fair value (cost of $303 and $171)
    
    
    310
    
    
    
    179Equity securities, held for trading, at fair value
    
    
    1
    
    
    
    1Policy loans, at outstanding balance
    
    
    1,971
    
    
    
    2,617Mortgage loans on real estate
    
    
    1,355
    
    
    
    794Other investments
    
    
    579
    
    
    
    289Total investments
    
    
    47,458
    
    
    
    46,571Cash
    
    
    124
    
    
    
    216Premiums receivable and agents balances
    
    
    23
    
    
    
    20Reinsurance recoverables
    
    
    1,114
    
    
    
    1,460Deferred policy acquisition costs and present value of future profits
    
    
    7,101
    
    
    
    6,453Deferred income taxes
    
    
    (516
    )
    
    
    (638
    )Goodwill
    
    
    186
    
    
    
    186Other assets
    
    
    1,611
    
    
    
    1,562Separate account assets
    
    
    150,523
    
    
    
    139,812Total assets
    
    $
    207,624
    
    
    $
    195,642LiabilitiesReserve for future policy benefits
    
    $
    7,406
    
    
    $
    7,244Other policyholder funds
    
    
    38,399
    
    
    
    37,493Other liabilities
    
    
    3,959
    
    
    
    3,844Separate account liabilities
    
    
    150,523
    
    
    
    139,812Total liabilities
    
    
    200,287
    
    
    
    188,393Commitments and contingent liabilities, Note 11
    
    
    
    
    
    
    Stockholders EquityCommon stock  1,000 shares authorized, issued and outstanding, par value $5,690
    
    
    6
    
    
    
    6Capital surplus
    
    
    2,405
    
    
    
    2,240Accumulated other comprehensive incomeNet unrealized capital gains on securities, net of tax
    
    
    464
    
    
    
    940Foreign currency translation adjustments
    
    
    (1
    )
    
    
    (1
    )Total accumulated other comprehensive income
    
    
    463
    
    
    
    939Retained earnings
    
    
    4,463
    
    
    
    4,064Total stockholders equity
    
    
    7,337
    
    
    
    7,249Total liabilities and stockholders equity
    
    $
    207,624
    
    
    $
    195,642
 See Notes To Consolidated Financial Statements.
 F-4




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##### 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s(In millions)
    
    Stock
    
    Surplus
    
    Net of Tax
    
    Net of Tax
    
    Adjustments
    
    Earnings
    
    Equity2005Balance, 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
    
    
    $
    7,2492003Balance, December 31, 2002
    
    $
    6
    
    
    $
    2,041
    
    
    $
    463
    
    
    $
    111
    
    
    $
    (1
    )
    
    $
    3,197
    
    
    $
    5,817Comprehensive incomeNet income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    626
    
    
    
    626Other comprehensive income, net of tax (1)Net change in unrealized capital gains
(losses) on securities (2)
    
    
    
    
    
    
    
    
    
    
    265
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    265Net loss on cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (128
    )
    
    
    
    
    
    
    
    
    
    
    (128
    )Total other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    137Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    763Capital contribution from parent
    
    
    
    
    
    
    199
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    199Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (175
    )
    
    
    (175
    )Balance, December 31, 2003
    
    $
    6
    
    
    $
    2,240
    
    
    $
    728
    
    
    $
    (17
    )
    
    $
    (1
    )
    
    $
    3,648
    
    
    $
    6,604
 
 (1)
    
    Net change in unrealized capital gain on securities is reflected net of tax provision
(benefit) and other items of $(295), $56, and $143 for the years ended December 31, 2005, 2004
and 2003, respectively. Net (loss) gain on cash flow hedging instruments is net of tax
provision (benefit) of $38, $(90) and $(69) for the years ended December 31, 2005, 2004 and
2003, 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 $26, and $78 for the years ended December 31, 2005, and 2004, respectively. There were no
reclassification adjustments for after-tax gains (losses) realized in net income for the year
ended December 31, 2003. See Notes to Consolidated Financial Statements
 F-5




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 Consolidated Statements of Cash Flows
 For the years ended December 31,(In millions)
    
    2005
    
    2004
    
    2003Operating ActivitiesNet income
    
    $
    909
    
    
    $
    965
    
    
    $
    626Adjustments to reconcile net income to net cash provided by operating activitiesNet realized capital (gains) losses
    
    
    (75
    )
    
    
    (140
    )
    
    
    13Cumulative effect of accounting changes, net of tax
    
    
    
    
    
    
    18
    
    
    
    Amortization of deferred policy acquisition costs and present value of
future profits
    
    
    945
    
    
    
    825
    
    
    
    646Additions to deferred policy acquisition costs and present value of future
profits
    
    
    (1,226
    )
    
    
    (1,375
    )
    
    
    (1,319
    )Depreciation and amortization
    
    
    200
    
    
    
    43
    
    
    
    117Increase in premiums receivable and agents balances
    
    
    (3
    )
    
    
    (3
    )
    
    
    (2
    )(Decrease) increase in other liabilities
    
    
    339
    
    
    
    (7
    )
    
    
    299Change in receivables, payables, and accruals
    
    
    46
    
    
    
    (205
    )
    
    
    227Increase (decrease) in accrued tax
    
    
    (98
    )
    
    
    34
    
    
    
    (67
    )(Increase) decrease in deferred income tax
    
    
    134
    
    
    
    (55
    )
    
    
    65Amortization of sales inducements
    
    
    39
    
    
    
    30
    
    
    
    68Additions to deferred sales inducements
    
    
    (85
    )
    
    
    (141
    )
    
    
    (136
    )Increase in future policy benefits
    
    
    129
    
    
    
    726
    
    
    
    794Decrease (increase) in reinsurance recoverables
    
    
    177
    
    
    
    (15
    )
    
    
    (1
    )Decrease (increase) in other assets
    
    
    (143
    )
    
    
    55
    
    
    
    (109
    )Net cash provided by operating activities
    
    
    1,288
    
    
    
    755
    
    
    
    1,221Investing ActivitiesPurchases of investments
    
    
    (21,654
    )
    
    
    (17,192
    )
    
    
    (13,628
    )Sales of investments
    
    
    16,899
    
    
    
    13,306
    
    
    
    6,676Maturity and principal paydowns of fixed maturity investments
    
    
    2,398
    
    
    
    2,971
    
    
    
    3,233Other
    
    
    
    
    
    
    
    
    
    
    85Net cash used for investing activities
    
    
    (2,357
    )
    
    
    (915
    )
    
    
    (3,634
    )Financing ActivitiesCapital contributions
    
    
    129
    
    
    
    
    
    
    
    199Dividends paid
    
    
    (498
    )
    
    
    (549
    )
    
    
    (175
    )Net receipts from investment and universal life-type contracts
    
    
    1,347
    
    
    
    829
    
    
    
    2,406Net cash provided by financing activities
    
    
    978
    
    
    
    280
    
    
    
    2,430Net (decrease) increase in cash
    
    
    (91
    )
    
    
    120
    
    
    
    17Impact of foreign exchange
    
    
    (1
    )
    
    
    
    
    
    
    Cash  beginning of year
    
    
    216
    
    
    
    96
    
    
    
    79Cash  end of year
    
    $
    124
    
    
    $
    216
    
    
    $
    96Supplemental Disclosure of Cash Flow Information:Net Cash Paid During the Year for:Income taxes
    
    $
    149
    
    
    $
    42
    
    
    $
    35
 Supplemental schedule of noncash operating and financing activities:
  See Notes to Consolidated Financial Statements.
 F-6




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (Dollar amounts in millions, unless otherwise stated)
 Note 1. Organization and Description of Business
   Note 2. Basis of Presentation and Accounting Policies
 Basis of Presentation
   Use of Estimates
  Reclassifications
  Adoption of New Accounting Standards
   F-7




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##### Table of Contents










    
    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).




Components of Cumulative Effect of Adoption
    
    Net Income
    
    Other Comprehensive 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




F-8




---



##### Table of Contents









Future Adoption of New Accounting Standards








Stock-Based Compensation








F-9



---



##### Table of Contents



Investments
  Valuation of Fixed Maturities
    2005
    
    2004Percentage
    
    
    
    
    
    Percentageof Total
    
    
    
    
    
    of TotalFair Value
    
    Fair Value
    
    Fair Value
    
    Fair ValuePriced via independent market quotations
    
    $
    36,055
    
    
    
    83.4
    %
    
    $
    34,555
    
    
    
    80.9
    %Priced via broker quotations
    
    
    2,271
    
    
    
    5.2
    %
    
    
    3,082
    
    
    
    7.2
    %Priced via matrices
    
    
    3,667
    
    
    
    8.5
    %
    
    
    3,508
    
    
    
    8.2
    %Priced via other methods
    
    
    202
    
    
    
    0.5
    %
    
    
    61
    
    
    
    0.2
    %Short-term investments [1]
    
    
    1,047
    
    
    
    2.4
    %
    
    
    1,485
    
    
    
    3.5
    %Total
    
    $
    43,242
    
    
    
    100.0
    %
    
    $
    42,691
    
    
    
    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
  F-10




---



##### Table of Contents



Mortgage Loan Impairments
  Net Realized Capital Gains and Losses
  Net Investment Income
  F-11




---



##### Table of Contents



Derivative Instruments
 Overview
   Accounting and Financial Statement Presentation of Derivative Instruments and Hedging
Activities
   Fair-Value Hedges
  Cash-Flow Hedges
  Foreign-Currency Hedges
  Net Investment in a Foreign Operation Hedges
  F-12




---



##### Table of Contents



Other Investment and Risk Management Activities
  Hedge Documentation and Effectiveness Testing
  Discontinuance of Hedge Accounting
     Embedded Derivatives
  Credit Risk
 F-13
    Table of Contents    Product Derivatives and Risk Management
 Valuation of Guaranteed Minimum Withdrawal Benefit and Guaranteed Minimum Income Benefit
Reinsurance Derivatives
      F-14




---



##### Table of Contents



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
    Unlock Analysis
  F-15




---



##### Table of Contents















Reserve for Future Policy Benefits and Unpaid Claims and Claim Adjustment Expenses






Other Policyholder Funds and Benefits Payable


F-16




---



##### Table of Contents









Revenue Recognition




Dividends to Policyholders






Reinsurance




Income Taxes




Note 3. Segment Information












F-17




---



##### Table of Contents











2005
    
    2004
    
    2003RetailRealized gains (losses)
    
    $
    34
    
    
    $
    25
    
    
    $
    1Credit risk fees
    
    
    (26
    )
    
    
    (22
    )
    
    
    (14
    )Retirement PlansRealized gains (losses)
    
    
    6
    
    
    
    5
    
    
    
    5Credit risk fees
    
    
    (8
    )
    
    
    (8
    )
    
    
    (7
    )InstitutionalRealized gains (losses)
    
    
    13
    
    
    
    8
    
    
    
    6Credit risk fees
    
    
    (18
    )
    
    
    (16
    )
    
    
    (13
    )Individual LifeRealized gains (losses)
    
    
    8
    
    
    
    12
    
    
    
    Credit risk fees
    
    
    (5
    )
    
    
    (5
    )
    
    
    (5
    )OtherRealized gains (losses)
    
    
    (61
    )
    
    
    (50
    )
    
    
    (12
    )Credit risk fees
    
    
    57
    
    
    
    51
    
    
    
    39Total
    
    $
    
    
    
    $
    
    
    
    $
    


F-18



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##### Table of Contents



For the years ended December 31,2005
    
    2004
    
    2003Total revenuesRetail
    
    $
    2,570
    
    
    $
    2,488
    
    
    $
    1,657Retirement Plans
    
    
    457
    
    
    
    421
    
    
    
    376Institutional
    
    
    1,400
    
    
    
    1,273
    
    
    
    1,494Individual Life
    
    
    991
    
    
    
    966
    
    
    
    894Other
    
    
    486
    
    
    
    538
    
    
    
    433Total revenues
    
    $
    5,904
    
    
    $
    5,686
    
    
    $
    4,854Net investment incomeRetail
    
    $
    934
    
    
    $
    1,013
    
    
    $
    431Retirement Plans
    
    
    311
    
    
    
    307
    
    
    
    280Institutional
    
    
    784
    
    
    
    647
    
    
    
    562Individual Life
    
    
    272
    
    
    
    269
    
    
    
    227Other
    
    
    268
    
    
    
    234
    
    
    
    264Total net investment income
    
    $
    2,569
    
    
    $
    2,470
    
    
    $
    1,764Amortization of DACRetail
    
    $
    689
    
    
    $
    596
    
    
    $
    450Retirement Plans
    
    
    26
    
    
    
    28
    
    
    
    18Institutional
    
    
    32
    
    
    
    26
    
    
    
    27Individual Life
    
    
    196
    
    
    
    175
    
    
    
    166Other
    
    
    2
    
    
    
    
    
    
    
    (15
    )Total amortization of DAC
    
    $
    945
    
    
    $
    825
    
    
    $
    646Income tax expense (benefit)Retail
    
    $
    33
    
    
    $
    35
    
    
    $
    27Retirement Plans
    
    
    19
    
    
    
    17
    
    
    
    15Institutional [1]
    
    
    34
    
    
    
    24
    
    
    
    34Individual Life
    
    
    69
    
    
    
    70
    
    
    
    64Other [2]
    
    
    52
    
    
    
    (117
    )
    
    
    28Total income tax expense
    
    $
    207
    
    
    $
    29
    
    
    $
    168Net incomeRetail
    
    $
    520
    
    
    $
    373
    
    
    $
    330Retirement Plans
    
    
    66
    
    
    
    59
    
    
    
    39Institutional
    
    
    82
    
    
    
    55
    
    
    
    68Individual Life
    
    
    149
    
    
    
    143
    
    
    
    134Other [2]
    
    
    92
    
    
    
    335
    
    
    
    55Total net income
    
    $
    909
    
    
    $
    965
    
    
    $
    626
 
 [1]
    
    2003 includes $9 of after-tax benefit related to the settlement of litigation.[2]
    
    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. F-19




---



##### Table of Contents



December 31,2005
    
    2004AssetsRetail
    
    $
    119,185
    
    
    $
    114,288Retirement Plans
    
    
    20,058
    
    
    
    17,142Institutional
    
    
    48,561
    
    
    
    44,572Individual Life
    
    
    12,314
    
    
    
    11,361Other
    
    
    7,506
    
    
    
    8,279Total assets
    
    $
    207,624
    
    
    $
    195,642DACRetail
    
    $
    4,617
    
    
    $
    4,307Retirement Plans
    
    
    406
    
    
    
    264Institutional
    
    
    81
    
    
    
    57Individual Life
    
    
    1,976
    
    
    
    1,802Other
    
    
    21
    
    
    
    23Total DAC
    
    $
    7,101
    
    
    $
    6,453Reserve for Future Policy BenefitsRetail
    
    $
    732
    
    
    $
    678Retirement Plans
    
    
    366
    
    
    
    387Institutional
    
    
    4,962
    
    
    
    4,512Individual Life
    
    
    536
    
    
    
    538Other
    
    
    810
    
    
    
    1,129Total Reserve for Future Policy Benefits
    
    $
    7,406
    
    
    $
    7,244Other Policyholder FundsRetail
    
    $
    16,299
    
    
    $
    18,320Retirement Plans
    
    
    5,194
    
    
    
    4,790Institutional
    
    
    9,228
    
    
    
    7,653Individual Life
    
    
    4,482
    
    
    
    4,150Other
    
    
    3,196
    
    
    
    2,580Total Other Policyholder Funds
    
    $
    38,399
    
    
    $
    37,493
 F-20




---



##### Table of Contents



4. Investments and Derivative Instruments
 For the years ended December 31,2005
    
    2004
    
    2003Components of Net Investment IncomeFixed maturities
    
    $
    2,275
    
    
    $
    2,122
    
    
    $
    1,425Policy loans
    
    
    142
    
    
    
    183
    
    
    
    207Other investments
    
    
    189
    
    
    
    195
    
    
    
    152Gross investment income
    
    
    2,606
    
    
    
    2,500
    
    
    
    1,784Less: Investment expenses
    
    
    37
    
    
    
    30
    
    
    
    20Net investment income
    
    $
    2,569
    
    
    $
    2,470
    
    
    $
    1,764Components of Net Realized Capital Gains (Losses)Fixed maturities
    
    $
    57
    
    
    $
    168
    
    
    $
    (6
    )Equity securities
    
    
    8
    
    
    
    7
    
    
    
    (7
    )Foreign currency transaction remeasurements
    
    
    157
    
    
    
    (6
    )
    
    
    Derivatives and other [1]
    
    
    (147
    )
    
    
    (29
    )
    
    
    Net realized capital gains (losses)
    
    $
    75
    
    
    $
    140
    
    
    $
    (13
    )
 
 [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 31,2005
    
    2004
    
    2003Components of Net Unrealized Gains (Losses) on
Available-for-Sale SecuritiesFixed maturities
    
    $
    986
    
    
    $
    2,212
    
    
    $
    1,574Equity securities
    
    
    7
    
    
    
    8
    
    
    
    7Net unrealized gains credited to policyholders
    
    
    (9
    )
    
    
    (20
    )
    
    
    (63
    )Net unrealized gains
    
    
    984
    
    
    
    2,200
    
    
    
    1,518Deferred income taxes and other items
    
    
    407
    
    
    
    1,076
    
    
    
    790Net unrealized gains, net of tax  end of year
    
    
    577
    
    
    
    1,124
    
    
    
    728Net unrealized gains, net of tax  beginning of year
    
    
    1,124
    
    
    
    728
    
    
    
    463Change in unrealized gains (losses) on
available-for-sale securities
    
    $
    (547
    )
    
    $
    396
    
    
    $
    265
 Components of Fixed Maturity Investments
 As of December 31, 2005
    
    As of December 31, 2004Gross
    
    Gross
    
    
    
    
    
    
    
    Gross
    
    GrossAmortized
    
    Unrealized
    
    Unrealized
    
    Fair
    
    Amortized
    
    Unrealized
    
    Unrealized
    
    FairCost
    
    Gains
    
    Losses
    
    Value
    
    Cost
    
    Gains
    
    Losses
    
    ValueBonds and NotesABS
    
    $
    6,383
    
    
    $
    44
    
    
    $
    (73
    )
    
    $
    6,354
    
    
    $
    5,881
    
    
    $
    72
    
    
    $
    (61
    )
    
    $
    5,892Collateralized mortgage
obligations (CMOs)Agency backed
    
    
    657
    
    
    
    3
    
    
    
    (4
    )
    
    
    656
    
    
    
    834
    
    
    
    9
    
    
    
    (3
    )
    
    
    840Non-agency backed
    
    
    107
    
    
    
    
    
    
    
    
    
    
    
    107
    
    
    
    48
    
    
    
    
    
    
    
    
    
    
    
    48CMBSAgency backed
    
    
    53
    
    
    
    1
    
    
    
    
    
    
    
    54
    
    
    
    54
    
    
    
    
    
    
    
    
    
    
    
    54Non-agency backed
    
    
    8,258
    
    
    
    158
    
    
    
    (85
    )
    
    
    8,331
    
    
    
    7,336
    
    
    
    329
    
    
    
    (17
    )
    
    
    7,648Corporate
    
    
    21,179
    
    
    
    1,098
    
    
    
    (226
    )
    
    
    22,051
    
    
    
    21,200
    
    
    
    1,826
    
    
    
    (57
    )
    
    
    22,969Government/Government agenciesForeign
    
    
    646
    
    
    
    43
    
    
    
    (4
    )
    
    
    685
    
    
    
    649
    
    
    
    60
    
    
    
    (2
    )
    
    
    707United States
    
    
    435
    
    
    
    23
    
    
    
    (2
    )
    
    
    456
    
    
    
    774
    
    
    
    19
    
    
    
    (4
    )
    
    
    789Mortgage-backed securities
(MBS) U.S.Government/Government
agencies
    
    
    2,559
    
    
    
    6
    
    
    
    (39
    )
    
    
    2,526
    
    
    
    1,542
    
    
    
    18
    
    
    
    (2
    )
    
    
    1,558States, municipalities and
political subdivisions
    
    
    926
    
    
    
    47
    
    
    
    (4
    )
    
    
    969
    
    
    
    675
    
    
    
    30
    
    
    
    (5
    )
    
    
    700Redeemable preferred stock
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Short-term investments
    
    
    1,047
    
    
    
    
    
    
    
    
    
    
    
    1,047
    
    
    
    1,485
    
    
    
    
    
    
    
    
    
    
    
    1,485Total fixed maturities
    
    $
    42,256
    
    
    $
    1,423
    
    
    $
    (437
    )
    
    $
    43,242
    
    
    $
    40,479
    
    
    $
    2,363
    
    
    $
    (151
    )
    
    $
    42,691
  F-21




---



##### Table of Contents



Maturity
    
    Amortized Cost
    
    Fair ValueOne year or less
    
    $
    4,113
    
    
    $
    4,106Over one year through five years
    
    
    13,312
    
    
    
    13,558Over five years through ten years
    
    
    11,423
    
    
    
    11,524Over ten years
    
    
    13,408
    
    
    
    14,054Total
    
    $
    42,256
    
    
    $
    43,242
 Sales of Fixed Maturity and Available-for-Sale Equity Security Investments
 For the years ended December 31,2005
    
    2004
    
    2003Sale of Fixed MaturitiesSale proceeds
    
    $
    15,882
    
    
    $
    13,022
    
    
    $
    6,205Gross gains
    
    
    302
    
    
    
    311
    
    
    
    196Gross losses
    
    
    (218
    )
    
    
    (125
    )
    
    
    (71
    )Sale of Available-for-Sale Equity SecuritiesSale proceeds
    
    $
    39
    
    
    $
    75
    
    
    $
    107Gross gains
    
    
    8
    
    
    
    12
    
    
    
    4Gross losses
    
    
    
    
    
    
    (5
    )
    
    
    (3
    )
 Concentration of Credit Risk
     Security Unrealized Loss Aging
   F-22




---



##### Table of Contents



2005Less Than 12 Months
    
    12 Months or More
    
    TotalAmortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    UnrealizedCost
    
    Value
    
    Losses
    
    Cost
    
    Value
    
    Losses
    
    Cost
    
    Value
    
    LossesABS
    
    $
    1,534
    
    
    $
    1,517
    
    
    $
    (17
    )
    
    $
    494
    
    
    $
    438
    
    
    $
    (56
    )
    
    $
    2,028
    
    
    $
    1,955
    
    
    $
    (73
    )CMOsAgency backed
    
    
    271
    
    
    
    269
    
    
    
    (2
    )
    
    
    221
    
    
    
    219
    
    
    
    (2
    )
    
    
    492
    
    
    
    488
    
    
    
    (4
    )Non-agency backed
    
    
    18
    
    
    
    18
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    19
    
    
    
    19
    
    
    
    CMBSAgency backed
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    4
    
    
    
    4
    
    
    
    
    
    
    
    6
    
    
    
    6
    
    
    
    Non-agency backed
    
    
    3,899
    
    
    
    3,833
    
    
    
    (66
    )
    
    
    578
    
    
    
    559
    
    
    
    (19
    )
    
    
    4,477
    
    
    
    4,392
    
    
    
    (85
    )Corporate
    
    
    7,339
    
    
    
    7,158
    
    
    
    (181
    )
    
    
    1,173
    
    
    
    1,128
    
    
    
    (45
    )
    
    
    8,512
    
    
    
    8,286
    
    
    
    (226
    )Government/Government agenciesForeign
    
    
    173
    
    
    
    170
    
    
    
    (3
    )
    
    
    36
    
    
    
    35
    
    
    
    (1
    )
    
    
    209
    
    
    
    205
    
    
    
    (4
    )United States
    
    
    147
    
    
    
    146
    
    
    
    (1
    )
    
    
    20
    
    
    
    19
    
    
    
    (1
    )
    
    
    167
    
    
    
    165
    
    
    
    (2
    )MBS  U.S. Government/Government
agencies
    
    
    1,689
    
    
    
    1,658
    
    
    
    (31
    )
    
    
    170
    
    
    
    162
    
    
    
    (8
    )
    
    
    1,859
    
    
    
    1,820
    
    
    
    (39
    )States, municipalities and political
subdivisions
    
    
    194
    
    
    
    190
    
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    194
    
    
    
    190
    
    
    
    (4
    )Short-term investments
    
    
    61
    
    
    
    61
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61
    
    
    
    61
    
    
    
    Total fixed maturities
    
    
    15,327
    
    
    
    15,022
    
    
    
    (305
    )
    
    
    2,697
    
    
    
    2,565
    
    
    
    (132
    )
    
    
    18,024
    
    
    
    17,587
    
    
    
    (437
    )Common stock
    
    
    5
    
    
    
    5
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    6
    
    
    
    6
    
    
    
    Non-redeemable preferred stock
    
    
    38
    
    
    
    37
    
    
    
    (1
    )
    
    
    39
    
    
    
    37
    
    
    
    (2
    )
    
    
    77
    
    
    
    74
    
    
    
    (3
    )Total equity
    
    
    43
    
    
    
    42
    
    
    
    (1
    )
    
    
    40
    
    
    
    38
    
    
    
    (2
    )
    
    
    83
    
    
    
    80
    
    
    
    (3
    )Total temporarily impaired securities
    
    $
    15,370
    
    
    $
    15,064
    
    
    $
    (306
    )
    
    $
    2,737
    
    
    $
    2,603
    
    
    $
    (134
    )
    
    $
    18,107
    
    
    $
    17,667
    
    
    $
    (440
    )
    ABS
 CMBS
 Financial services
 F-23




---



##### Table of Contents



2004Less Than 12 Months
    
    12 Months or More
    
    TotalAmortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    Unrealized
    
    Amortized
    
    Fair
    
    UnrealizedCost
    
    Value
    
    Losses
    
    Cost
    
    Value
    
    Losses
    
    Cost
    
    Value
    
    LossesABS
    
    $
    1,112
    
    
    $
    1,102
    
    
    $
    (10
    )
    
    $
    343
    
    
    $
    292
    
    
    $
    (51
    )
    
    $
    1,455
    
    
    $
    1,394
    
    
    $
    (61
    )CMOsAgency backed
    
    
    494
    
    
    
    491
    
    
    
    (3
    )
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    496
    
    
    
    493
    
    
    
    (3
    )Non-agency backed
    
    
    40
    
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    40
    
    
    
    CMBSAgency backed
    
    
    19
    
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19
    
    
    
    19
    
    
    
    Non-agency backed
    
    
    1,563
    
    
    
    1,548
    
    
    
    (15
    )
    
    
    73
    
    
    
    71
    
    
    
    (2
    )
    
    
    1,636
    
    
    
    1,619
    
    
    
    (17
    )Corporate
    
    
    2,685
    
    
    
    2,652
    
    
    
    (33
    )
    
    
    657
    
    
    
    633
    
    
    
    (24
    )
    
    
    3,342
    
    
    
    3,285
    
    
    
    (57
    )Government/Government agenciesForeign
    
    
    116
    
    
    
    115
    
    
    
    (1
    )
    
    
    27
    
    
    
    26
    
    
    
    (1
    )
    
    
    143
    
    
    
    141
    
    
    
    (2
    )United States
    
    
    445
    
    
    
    442
    
    
    
    (3
    )
    
    
    7
    
    
    
    6
    
    
    
    (1
    )
    
    
    452
    
    
    
    448
    
    
    
    (4
    )MBS  U.S. Government/Government
agencies
    
    
    398
    
    
    
    396
    
    
    
    (2
    )
    
    
    24
    
    
    
    24
    
    
    
    
    
    
    
    422
    
    
    
    420
    
    
    
    (2
    )States, municipalities and political
subdivisions
    
    
    163
    
    
    
    158
    
    
    
    (5
    )
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    165
    
    
    
    160
    
    
    
    (5
    )Short-term investments
    
    
    11
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    11
    
    
    
    Total fixed maturities
    
    
    7,046
    
    
    
    6,974
    
    
    
    (72
    )
    
    
    1,135
    
    
    
    1,056
    
    
    
    (79
    )
    
    
    8,181
    
    
    
    8,030
    
    
    
    (151
    )Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    Non-redeemable preferred stock
    
    
    19
    
    
    
    19
    
    
    
    
    
    
    
    39
    
    
    
    36
    
    
    
    (3
    )
    
    
    58
    
    
    
    55
    
    
    
    (3
    )Total equity
    
    
    19
    
    
    
    19
    
    
    
    
    
    
    
    40
    
    
    
    37
    
    
    
    (3
    )
    
    
    59
    
    
    
    56
    
    
    
    (3
    )Total temporarily impaired securities
    
    $
    7,065
    
    
    $
    6,993
    
    
    $
    (72
    )
    
    $
    1,175
    
    
    $
    1,093
    
    
    $
    (82
    )
    
    $
    8,240
    
    
    $
    8,086
    
    
    $
    (154
    )
 Mortgage Loans
  Variable Interest Entities
  F-24
    Table of Contents      Derivative Instruments
  Asset Values
    
    Liability Values2005
    
    2004
    
    2005
    
    2004Other investments
    
    $
    159
    
    
    $
    42
    
    
    $
    
    
    
    $
    Reinsurance recoverables
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    129Other policyholder funds and benefits payable
    
    
    80
    
    
    
    129
    
    
    
    
    
    
    
    Fixed maturities
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    390
    
    
    
    449Total
    
    $
    239
    
    
    $
    175
    
    
    $
    407
    
    
    $
    578
 F-25




---



##### Table of Contents



Notional Amount
    
    Fair Value
    

Hedge Ineffectiveness After-TaxHedging Strategy
    
    2005
    
    2004
    
    2005
    
    2004
    
    2005
    
    2004Cash-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 on anticipated fixed-rate asset purchases
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.
    
    $
    4,860
    
    
    $
    4,944
    
    
    $
    (26
    )
    
    $
    40
    
    
    $
    (10
    )
    
    $
    (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.
    
    
    1,361
    
    
    
    1,311
    
    
    
    (222
    )
    
    
    (421
    )
    
    
    4
    
    
    
    Fair-Value HedgesInterest rate swapsA portion of the Companys fixed debt is hedged
against increases in LIBOR, the designated benchmark
interest rate. In addition, interest rate swaps are
used to hedge the changes in fair value of certain
fixed rate liabilities and fixed maturity securities
due to changes in LIBOR.
    
    
    1,707
    
    
    
    201
    
    
    
    (1
    )
    
    
    (5
    )
    
    
    2
    
    
    
    Interest
rate caps and floorsInterest rate caps and floors are used to offset the
changes in fair value related to corresponding
interest rate caps and floors that exist in certain
of the Companys variable-rate fixed maturity
investments and are not required to be bifurcated.
    
    
    
    
    
    
    148
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    Total cash-flow, fair-value and net investment hedges
    
    $
    7,928
    
    
    $
    6,604
    
    
    $
    (249
    )
    
    $
    (387
    )
    
    $
    (4
    )
    
    $
    (10
    )
 F-26




---



##### Table of Contents



DerivativeNotional Amount
    
    Fair Value
    

Change
in Value After-TaxHedging Strategy
    
    2005
    
    2004
    
    2005
    
    2004
    
    2005
    
    2004Other
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 contract 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.
These derivatives are also used to reduce
the duration risk in certain investment
portfolios. These derivative instruments
are structured to hedge the durations of
fixed maturity investments to match certain
life products in accordance with the
Companys asset and liability management
policy.
    
    $
    1,116
    
    
    $
    1,466
    
    
    $
    1
    
    
    $
    2
    
    
    $
    
    
    
    $
    (5
    )Interest
rate swaps and floorsThe Company uses interest rate swaps and
floors to manage duration risk between
assets and liabilities. 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.
    
    
    1,371
    
    
    
    1,441
    
    
    
    12
    
    
    
    7
    
    
    
    2
    
    
    
    3Foreign
currency swaps and forwardsThe Company enters into foreign currency
swaps and forwards and purchases foreign
put options and writes foreign call options
to hedge the foreign currency exposures in
certain of its foreign fixed maturity
investments.
    
    
    490
    
    
    
    312
    
    
    
    (8
    )
    
    
    (74
    )
    
    
    20
    
    
    
    (23
    )Credit
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. The Company assumes credit
exposure to individual entities through
credit default swaps. 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 issuer. Credit
events typically include failure on the
part of the referenced security issuer to
make a fixed dollar amount of contractual
interest or principal payments or
bankruptcy. The maximum potential future
exposure to the Company is the notional
value of the swap contracts, $324 and $193,
after-tax, as of December 31, 2005 and
2004, 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, 2005 and
2004, the maximum potential future exposure
to the Company from such contracts is $542
and $458, 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.
    
    
    2,013
    
    
    
    1,418
    
    
    
    3
    
    
    
    6
    
    
    
    10
    
    
    
    16OptionsThe Company writes option contracts for a
premium to monetize the bifurcated option
embedded in certain of its fixed maturity
investments. The written option grants the
holder the ability to call the bond at a
predetermined strike value. The maximum
potential future economic exposure is
represented by the then fair value of the
bond in excess of the strike value, which
is expected to be entirely offset by the
appreciation in the value of the embedded
long option.
    
    
    12
    
    
    
    95
    
    
    
    
    
    
    
    1
    
    
    
    (1
    )
    
    
    (1
    )
 F-27




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##### Table of Contents



DerivativeNotional Amount
    
    Fair Value
    
    Change in ValueHedging Strategy
    
    2005
    
    2004
    
    2005
    
    2004
    
    2005
    
    2004After-TaxYen 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
compound rate contract product. For further
discussion, see below. Additionally, forward
settling fixed maturity investments are traded to
manage duration and foreign currency risk associated
with this product.
    
    $
    1,675
    
    
    $
    611
    
    
    $
    (179
    )
    
    $
    10
    
    
    $
    (143
    )
    
    $
    4Product
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.
    
    
    31,803
    
    
    
    25,433
    
    
    
    8
    
    
    
    129
    
    
    
    (42
    )
    
    
    35GMWB
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 and EAFE
index 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&P500 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.
    
    
    5,086
    
    
    
    
    
    
    
    175
    
    
    
    
    
    
    
    (13
    )
    
    
    Reinsurance contracts associated with GMWBReinsurance 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.
    
    
    8,575
    
    
    
    25,433
    
    
    
    (17
    )
    
    
    (129
    )
    
    
    19
    
    
    
    (35
    )Reinsurance
contracts associated with GMIBReinsurance 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.
    
    
    16,782
    
    
    
    
    
    
    
    72
    
    
    
    
    
    
    
    73
    
    
    
    Statutory
reserve hedging instrumentsThe Company purchased one and two year S&P500 put
option contracts to economically hedge the statutory
reserve impact of equity exposure arising primarily
from GMDB obligations against a decline in the
equity markets.
    
    
    1,142
    
    
    
    1,921
    
    
    
    14
    
    
    
    32
    
    
    
    (20
    )
    
    
    (2
    )Total other investment and risk management activities
    
    
    70,065
    
    
    
    58,130
    
    
    
    81
    
    
    
    (16
    )
    
    
    (95
    )
    
    
    (8
    )Total derivatives [1]
    
    $
    77,993
    
    
    $
    64,734
    
    
    $
    (168
    )
    
    $
    (403
    )
    
    $
    (99
    )
    
    $
    (18
    )
 
 [1]
    
    Derivative change in value includes hedge ineffectiveness for cash-flow, fair-value and net
investment hedges and total change in value of other investment and risk management
activities.   F-28




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##### Table of Contents



Securities Lending and Collateral Arrangements
   F-29




---



##### Table of Contents



Loaned Securities and Collateral Pledged
    
    2005
    
    2004ABS
    
    $
    13
    
    
    $
    24CMBS
    
    
    146
    
    
    
    158Corporate
    
    
    599
    
    
    
    681MBS
    
    
    125
    
    
    
    Government/Government AgenciesForeign
    
    
    26
    
    
    
    16United States
    
    
    93
    
    
    
    404Total
    
    $
    1,002
    
    
    $
    1,283
   Securities on Deposit with States
  Note 5. Fair Value of Financial Instruments
        F-30




---



##### Table of Contents



2005
    
    2004Carrying
    
    Fair
    
    Carrying
    
    FairAmount
    
    Value
    
    Amount
    
    ValueAssetsFixed maturities
    
    $
    43,242
    
    
    $
    43,242
    
    
    $
    42,691
    
    
    $
    42,691Equity securities
    
    
    311
    
    
    
    311
    
    
    
    180
    
    
    
    180Policy loans
    
    
    1,971
    
    
    
    1,971
    
    
    
    2,617
    
    
    
    2,617Mortgage loans on real estate
    
    
    1,355
    
    
    
    1,348
    
    
    
    794
    
    
    
    806Other investments
    
    
    579
    
    
    
    579
    
    
    
    289
    
    
    
    289LiabilitiesOther policyholder funds (1)
    
    $
    11,686
    
    
    $
    11,273
    
    
    $
    9,244
    
    
    $
    9,075
 
 (1)
    
    Excludes universal life type insurance contracts, including corporate owned life insurance. Note 6. Reinsurance
    For the years ended December 31,2005
    
    2004
    
    2003Gross fee income, earned premiums and other
    
    $
    4,019
    
    
    $
    3,834
    
    
    $
    3,780Reinsurance assumed
    
    
    39
    
    
    
    49
    
    
    
    43Reinsurance ceded
    
    
    (798
    )
    
    
    (807
    )
    
    
    (720
    )Net fee income, earned premiums and other
    
    $
    3,260
    
    
    $
    3,076
    
    
    $
    3,103
     F-31




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##### Table of Contents



Note 7. Deferred Policy Acquisition Costs and Present Value of Future Profits
  2005
    
    2004
    
    2003Balance, January 1
    
    $
    6,453
    
    
    $
    6,088
    
    
    $
    5,479Capitalization
    
    
    1,226
    
    
    
    1,375
    
    
    
    1,319Amortization
 Deferred policy acquisitions
costs and present value of future profits
    
    
    (945
    )
    
    
    (825
    )
    
    
    (646
    )Adjustments to unrealized gains and losses on
securities available-for-sale and other
    
    
    367
    
    
    
    (80
    )
    
    
    (64
    )Cumulative effect of accounting changes (SOP03-1)
    
    
    
    
    
    
    (105
    )
    
    
    Balance, December 31
    
    $
    7,101
    
    
    $
    6,453
    
    
    $
    6,088
  For the year ended December 31,2006
    
    $
    292007
    
    $
    292008
    
    $
    262009
    
    $
    242010
    
    $
    22
 Note 8. Goodwill and Other Intangible Assets
    Note 9. Separate Accounts, Death Benefits and Other Insurance Benefit Features
  F-32




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##### Table of Contents



GMDB [1]Liability balance 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 was $64 as of January 1, 2005 and $40 as
of December 31, 2005. GMDB [1]Liability
balance upon adoption  as of January 1, 2004
    
    $
    217Incurred
    
    
    123Paid
    
    
    (166
    )Liability balance as of December 31, 2004
    
    $
    174
 
 [1]
    
    The reinsurance recoverable asset related to the GMDB was $108 upon adoption of SOP 03-1 and
$64 as of December 31, 2004.   
    
    1,000 stochastically generated investment performance scenarios for 2005 and 2004 issue
years; 250 stochastically generated investment performance scenarios for issue year 2003 and
prior.
    
    Separate account returns representing the Companys long-term assumptions, varied by asset class with a low of 3% for
cash, a high of 9.5% and 11% for aggressive equities, and a weighted average of 7.8% and 9% for December 31, 2005 and
2004 ,respectively.
    
    Volatilities also varied by asset class with a low of 1% for cash, a high of 15% for aggressive equities, and a
weighted average of 12%
    
    80% of the 1983 GAM mortality table was used for mortality assumptions
    
    Lapse rates by calendar year vary from a low of 8% to a high of 14%, with an average of 12%
    
    Discount rate of 5.6% for 2005 issue year, 7% for issue years 2004 and 2003 and 7.5% for issue year 2002 and prior
 F-33




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##### Table of Contents



Breakdown of Variable Annuity Account Value by GMDB Type at December 31, 2005
 Retained Net
    
    Weighted AverageAccount
    
    Net Amount
    
    Amount
    
    Attained Age ofMaximum anniversary value (MAV) [1]
    
    Value
    
    at Risk
    
    at Risk
    
    AnnuitantMAV only
    
    $
    57,445
    
    
    $
    5,040
    
    
    $
    507
    
    
    
    64With 5% rollup [2]
    
    
    4,032
    
    
    
    497
    
    
    
    91
    
    
    
    63With Earnings Protection Benefit Rider (EPB) [3]
    
    
    5,358
    
    
    
    313
    
    
    
    57
    
    
    
    60With 5% rollup & EPB
    
    
    1,445
    
    
    
    132
    
    
    
    24
    
    
    
    62Total MAV
    
    
    68,280
    
    
    
    5,982
    
    
    
    679Asset Protection Benefit (APB) [4]
    
    
    26,880
    
    
    
    25
    
    
    
    13
    
    
    
    61Lifetime Income Benefit (LIB) [5]
    
    
    251
    
    
    
    
    
    
    
    
    
    
    
    59Reset [6] (5-7 years)
    
    
    7,419
    
    
    
    435
    
    
    
    435
    
    
    
    65Return of Premium [7] /Other
    
    
    9,235
    
    
    
    37
    
    
    
    35
    
    
    
    49Total
    
    $
    112,065
    
    
    $
    6,479
    
    
    $
    1,162
    
    
    
    62
 
 [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-34




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##### Table of Contents



Asset type
    
    As of December 31, 2005Equity securities (including mutual funds)
    
    $
    94,419Cash and cash equivalents
    
    
    8,609Total
    
    $
    103,028
   Note 10. Sales Inducements
   2005
    
    
    2004Balance, beginning of period
    
    $
    309
    
    
    $
    198Sales inducements deferred
    
    
    85
    
    
    
    141Amortization charged to income
    
    
    (39
    )
    
    
    (30
    )Balance, end of period
    
    $
    355
    
    
    $
    309
 F-35




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##### Table of Contents



Note 11. Commitments and Contingencies
 Litigation
  Broker
Compensation Litigation
      F-36




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##### Table of Contents



Regulatory Developments
       F-37




---



##### Table of Contents



Leases
   2006
    
    $
    332007
    
    
    312008
    
    
    262009
    
    
    232010
    
    
    21Thereafter
    
    
    8Total
    
    $
    142
 F-38




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##### Table of Contents



Tax Matters
   Unfunded Commitments
  Guaranty fund and Other Insurance-Related Assessments
   Note 12. Income Tax
   For the years ended December 31,2005
    
    2004
    
    2003Current
    
    $
    71
    
    
    $
    (34
    )
    
    $
    13Deferred
    
    
    136
    
    
    
    63
    
    
    
    155Income tax expense
    
    $
    207
    
    
    $
    29
    
    
    $
    168
 F-39




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##### Table of Contents



For the years ended December 31,2005
    
    2004
    
    2003Tax provision at the U.S. federal statutory rate
    
    $
    391
    
    
    $
    354
    
    
    $
    278Dividends received deduction
    
    
    (184
    )
    
    
    (132
    )
    
    
    (108
    )IRS audit settlement
    
    
    
    
    
    
    (191
    )
    
    
    Foreign related investments
    
    
    (2
    )
    
    
    (2
    )
    
    
    (4
    )Other
    
    
    2
    
    
    
    
    
    
    
    2Total
    
    $
    207
    
    
    $
    29
    
    
    $
    168
  2005
    
    
    2004Deferred Tax AssetsTax basis deferred policy acquisition costs and reserves
    
    $
    581
    
    
    $
    607NOL carryover
    
    
    13
    
    
    
    Minimum tax credit
    
    
    191
    
    
    
    126Foreign tax credit carryovers
    
    
    31
    
    
    
    6Other
    
    
    30
    
    
    
    36Total Deferred Tax Assets
    
    
    846
    
    
    
    775Deferred Tax LiabilitiesFinancial statement deferred policy acquisition costs and reserves
    
    
    (977
    )
    
    
    (677
    )Net unrealized gains on securities
    
    
    (291
    )
    
    
    (669
    )Employee benefits
    
    
    (15
    )
    
    
    (16
    )Investment related items and other
    
    
    (79
    )
    
    
    (51
    )Total Deferred Tax Liabilities
    
    
    (1,362
    )
    
    
    (1,413
    )Total Deferred Tax Asset/(Liability)
    
    $
    (516
    )
    
    $
    (638
    )
    Note 13. Statutory Results
 For the years ended December 31,2005
    
    2004
    
    2003Statutory net income
    
    $
    185
    
    
    $
    536
    
    
    $
    801Statutory capital and surplus
    
    $
    3,034
    
    
    $
    3,191
    
    
    $
    3,115
  F-40




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##### Table of Contents



Note 14. Pension Plans, Postretirement, Health Care and Life Insurance Benefit and Savings Plans
 Pension Plans
  Investment and Savings Plan
  Note 15. Stock Compensation Plans
      F-41




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##### Table of Contents



Note 16. Transactions with Affiliates
         F-42




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##### Table of Contents



Note 17. Quarterly Results for 2005 and 2004 (unaudited)
 Three Months EndedMarch 31,
    
    June 30,
    
    September 30,
    
    December 31,2005
    
    2004
    
    2005
    
    2004
    
    2005
    
    2004
    
    2005
    
    2004Revenues
    
    $
    1,440
    
    
    $
    1,399
    
    
    $
    1,400
    
    
    $
    1,346
    
    
    $
    1,521
    
    
    $
    1,456
    
    
    $
    1,543
    
    
    $
    1,485Benefits, claims and expenses
    
    
    1,118
    
    
    
    1,116
    
    
    
    1,172
    
    
    
    1,091
    
    
    
    1,210
    
    
    
    1,202
    
    
    
    1,275
    
    
    
    1,243Net income [1]
    
    
    241
    
    
    
    181
    
    
    
    180
    
    
    
    180
    
    
    
    247
    
    
    
    395
    
    
    
    248
    
    
    
    209
 [1]
    
    Included in the quarter ended September 30, 2004 is a $191 tax benefit which relates to
agreement with IRS on the resolution of matters pertaining to tax years prior to 2004. F-43




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 SCHEDULE I
 SUMMARY OF INVESTMENTS  OTHER THAN INVESTMENTS IN AFFILIATES
 (In millions)
 As of December 31, 2005Amount at whichshown on BalanceType of Investment
    
    Cost
    
    Fair Value
    
    SheetFixed MaturitiesBonds and NotesU.S. Government and Government agencies and
authorities (guaranteed and sponsored)
    
    $
    435
    
    
    $
    456
    
    
    $
    456U.S. Government and Government agencies and
authorities (guaranteed and sponsored) 
asset-backed
    
    
    3,269
    
    
    
    3,236
    
    
    
    3,236States, municipalities and political subdivisions
    
    
    926
    
    
    
    969
    
    
    
    969International governments
    
    
    646
    
    
    
    685
    
    
    
    685Public utilities
    
    
    2,445
    
    
    
    2,566
    
    
    
    2,566All other corporate including international
    
    
    18,734
    
    
    
    19,485
    
    
    
    19,485All other
corporate  asset-backed
    
    
    14,748
    
    
    
    14,792
    
    
    
    14,792Short-term investments
    
    
    1,047
    
    
    
    1,047
    
    
    
    1,047Redeemable preferred stock
    
    
    6
    
    
    
    6
    
    
    
    6Total fixed maturities
    
    
    42,256
    
    
    
    43,242
    
    
    
    43,242Equity SecuritiesCommon stocksIndustrial, miscellaneous and all other
    
    
    171
    
    
    
    181
    
    
    
    181Nonredeemable preferred stocks
    
    
    132
    
    
    
    130
    
    
    
    130Total equity securities
    
    
    303
    
    
    
    311
    
    
    
    311Total fixed maturities and equity securities
    
    
    42,559
    
    
    
    43,553
    
    
    
    43,553Other InvestmentsMortgage loans on real estate
    
    
    1,355
    
    
    
    1,348
    
    
    
    1,355Policy loans
    
    
    1,971
    
    
    
    1,971
    
    
    
    1,971Investments in partnerships and trusts
    
    
    428
    
    
    
    423
    
    
    
    423Other invested assets
    
    
    223
    
    
    
    156
    
    
    
    156Total other investments
    
    
    3,977
    
    
    
    3,898
    
    
    
    3,905Total investments
    
    $
    46,536
    
    
    $
    47,451
    
    
    $
    47,458
 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, 2005, 2004 and 2003
 (In millions)
 Net
    
    Benefits,
    
    
    
    
    
    AmortizationFee
    
    
    
    
    
    
    
    
    
    Realized
    
    Claims and
    
    
    
    
    
    of Deferredincome
    
    
    
    
    
    Net
    
    Capital
    
    Claim
    
    Insurance
    
    Policy
    
    Dividendsand
    
    Earned
    
    Investment
    
    Gains
    
    Adjustment
    
    expenses and
    
    Acquisition
    
    To Policy-Segment
    
    other
    
    Premiums
    
    Income
    
    (Losses)
    
    Expenses
    
    other
    
    Costs
    
    holders2005Retail 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
    
    
    $
    292003Retail Products Group
    
    $
    1,257
    
    
    $
    (40
    )
    
    $
    431
    
    
    $
    9
    
    
    $
    519
    
    
    $
    331
    
    
    $
    450
    
    
    $
    Retirement Plans
    
    
    79
    
    
    
    15
    
    
    
    280
    
    
    
    2
    
    
    
    225
    
    
    
    79
    
    
    
    18
    
    
    
    Institutional Solutions Group
    
    
    146
    
    
    
    781
    
    
    
    562
    
    
    
    5
    
    
    
    1,329
    
    
    
    36
    
    
    
    27
    
    
    
    Individual Life
    
    
    685
    
    
    
    (14
    )
    
    
    227
    
    
    
    (4
    )
    
    
    380
    
    
    
    147
    
    
    
    166
    
    
    
    3Other
    
    
    130
    
    
    
    64
    
    
    
    264
    
    
    
    (25
    )
    
    
    273
    
    
    
    32
    
    
    
    (15
    )
    
    
    60Consolidated operations
    
    $
    2,297
    
    
    $
    806
    
    
    $
    1,764
    
    
    $
    (13
    )
    
    $
    2,726
    
    
    $
    625
    
    
    $
    646
    
    
    $
    63
 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
    
    Assumed(In millions)
    
    Amount
    
    Companies
    
    Companies
    
    Amount
    
    to NetFor 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
    %For the year ended December 31, 2003Life insurance in force
    
    $
    382,039
    
    
    $
    241,111
    
    
    $
    3,093
    
    
    $
    144,021
    
    
    
    2.1
    %Fee income, earned premiums and otherLife insurance and annuities
    
    $
    3,514
    
    
    $
    486
    
    
    $
    37
    
    
    $
    3,065
    
    
    
    1.2
    %Accident and health insurance
    
    
    266
    
    
    
    234
    
    
    
    6
    
    
    
    38
    
    
    
    15.8
    %Total fee income, earned premiums and other
    
    $
    3,780
    
    
    $
    720
    
    
    $
    43
    
    
    $
    3,103
    
    
    
    1.4
    %
 S-3




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##### Table of Contents



SIGNATURES
  HARTFORD LIFE INSURANCE COMPANY/s/ Ernest M. McNeill Jr.Ernest M. McNeill JrSenior Vice President and Chief Accounting Officer   Signature
    
    Title
    
    Date/s/ Thomas M. Marra
    
    President, Chief Executive Officer, Chairman
    
    February 24, 2006Thomas M. Marra
    
    and Director/s/ Lizabeth H. Zlatkus
    
    Executive Vice President, Chief
Financial
    
    February 24, 2006Lizabeth H. Zlatkus
    
    Officer and Director/s/ Ernest M. McNeill Jr.
    
    Senior Vice President
    
    February 24, 2006Ernest M. McNeill Jr
    
    and
Chief Accounting Officer/s/ David A. Carlson
    
    Director
    
    February 24, 2006David A. Carlson/s/ Michael L. Kalen
    
    Director
    
    February 24, 2006Michael L.Kalen/s/ John C. Walters
    
    Director
    
    February 24, 2006John C. Walters/s/ David M. Znamierowski
    
    Director
    
    February 24, 2006David M. Znamierowski
 II-1




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005 
 EXHIBITS 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, 2005 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, 2005 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 Lizabeth H. Zlatkus, filed herewith.32.01
    
    Section 906 Certification of Thomas M. Marra, filed herewith.32.02
    
    Section 906 Certification of Lizabeth H. Zlatkus, filed herewith.
 II-2