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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, 2010
 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
    
    06-0974148(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 200 Hopmeadow Street, Simsbury, Connecticut 06089
 (860) 547-5000
   Yes þ No o
 Yes o No þ
 Yes þ No o
 Yes o No o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non Accelerated filer þ
    
    Smaller Reporting Company o(Do not check if a smaller reporting company)
 Yes o No þ




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##### 



HARTFORD LIFE INSURANCE COMPANY
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
 TABLE OF CONTENTS
 Item
    
    Description
    
    PagePart I1.
    
    Business *
    
    
    51A.
    
    Risk Factors
    
    
    91B.
    
    Unresolved Staff Comments
    
    
    192.
    
    Properties *
    
    
    193.
    
    Legal Proceedings
    
    
    194.
    
    (Removed and Reserved)
    
    
    19Part II5.
    
    Market for Hartford Life Insurance Companys Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    196.
    
    Selected Financial Data
    
    
    197.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations *
    
    
    207A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    528.
    
    Financial Statements and Supplementary Data
    
    
    529.
    
    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    529A.
    
    Controls and Procedures
    
    
    529B.
    
    Other Information
    
    
    52Part III10.
    
    Directors, Executive Officers and Corporate Governance of Hartford Life Insurance Company
    
    
    5211.
    
    Executive Compensation
    
    
    5212.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    5313.
    
    Certain Relationships and Related Transactions, and Director Independence
    
    
    5314.
    
    Principal Accounting Fees and Services
    
    
    53Part IV15.
    
    Exhibits, Financial Statement Schedules
    
    
    53Signatures
    
    II-1Exhibits Index
    
    II-2Exhibit 12.01Exhibit 23.01Exhibit 31.01Exhibit 31.02Exhibit 32.01Exhibit 32.02
  *
    
    Item prepared in accordance with General Instruction I (2) of Form 10-K.  2




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Forward-Looking Statements
   
    
    uncertainties related to the Companys current operating environment, which reflect
constrained capital and credit markets and uncertainty about the timing and strength of an
economic recovery, and whether managements efforts to identify and address these risks will
be timely and effective;
 
    
    risks associated with our continued execution of steps to realign our business and
reposition our investment portfolio, including the potential need to take other actions;
 
    
    market risks associated with our business, including changes in interest rates, credit
spreads, equity prices, foreign exchange rates, and implied volatility levels, as well as
uncertainty in key sectors such as the global real estate market, that continued to pressure
our results in 2010;
 
    
    volatility in our earnings resulting from our adjustment of our risk management program to
emphasize protection of statutory surplus;
 
    
    the impact on our statutory capital of various factors, including many that are outside the
Companys control, which can in turn affect our credit and financial strength ratings, cost of
capital, regulatory compliance and other aspects of our business and results;
 
    
    risks to our business, financial position, prospects and results associated with negative
rating actions or downgrades in the Companys financial strength and credit ratings or
negative rating actions or downgrades relating to our investments;
 
    
    the potential for differing interpretations of the methodologies, estimations and
assumptions that underlie the valuation of the Companys financial instruments that could
result in changes to investment valuations;
 
    
    the subjective determinations that underlie the Companys evaluation of
other-than-temporary impairments on available-for-sale securities;
 
    
    losses due to nonperformance or defaults by others;
 
    
    the potential for further acceleration of deferred policy acquisition cost amortization;
 
    
    the potential for further impairments of our goodwill or the potential for changes in
valuation allowances against deferred tax assets;
 
    
    the possible occurrence of terrorist attacks and the Companys ability to contain its
exposure, including the effect of the absence or insufficiency of applicable terrorism
legislation on coverage;
 
    
    the possibility of a pandemic, earthquake or other natural or man-made disaster that may
adversely affect our businesses and cost and availability of reinsurance;
 
    
    weather and other natural physical events, including the severity and frequency of storms,
hail, winter storms, hurricanes and tropical storms, as well as climate change and its
potential impact on weather patterns;
 
    
    the response of reinsurance companies under reinsurance contracts and the availability,
pricing and adequacy of reinsurance to protect the Company against losses;
 
    
    actions by our competitors, many of which are larger or have greater financial resources
than we do;
 
    
    the restrictions, oversight, costs and other consequences of our parent, The Hartford
Financial Services Group, Inc. (The Hartford), being a savings and loan holding company,
including from the supervision, regulation and examination by the Office of Thrift Supervision
(the OTS), and in the future, as a result of the enactment of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act), the Federal Reserve and the
Office of the Controller of the Currency as regulator of Federal Trust Bank;
 
    
    the cost and other effects of increased regulation as a result of the enactment of the
Dodd-Frank Act, which will, among other effects, vest a newly created Financial Services
Oversight Council with the power to designate systemically important institutions, require
central clearing of, and/or impose new margin and capital requirements on, derivatives
transactions;
 
    
    the potential effect of domestic and foreign regulatory developments, including those that
could adversely impact the demand for the Companys products, operating costs and required
capital levels, including changes to statutory reserves and/or risk-based capital requirements
related to secondary guarantees under universal life and variable annuity products;
  3




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
    
    the Companys ability to distribute its products through distribution channels, both
current and future;
 
    
    limitations on the ability of the Companys subsidiaries to declare and pay dividends to
the Company;
 
    
    the risk that our framework for managing business risks may not be effective in mitigating
risk and loss to us that could adversely affect our business;
 
    
    the Companys ability to maintain the availability of its systems and safeguard the
security of its data in the event of a disaster or other unanticipated events;
 
    
    the potential for difficulties arising from outsourcing relationships;
 
    
    the impact of potential changes in federal or state tax laws, including changes affecting
the availability of the separate account dividend received deduction;
 
    
    the impact of potential changes in accounting principles and related financial reporting
requirements;
 
    
    the Companys ability to protect its intellectual property and defend against claims of
infringement;
 
    
    unfavorable judicial or legislative developments; and
 
    
    other factors described in such forward-looking statements.
   4




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PART I
 
 Item 1.
    
    BUSINESS
 (Dollar amounts in millions, except for per share data, unless otherwise stated)
 General
  Reporting Segments
     Principal Products
     Marketing and Distribution
      5




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Competition
     Reserves
  Reinsurance
  Investment Operations
   6




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Risk Management
    Regulation
      7




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Intellectual Property
    8




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Item 1A.
    
    RISK FACTORS
  Our operating environment remains subject to uncertainty about the timing and strength of an
economic recovery. The steps we have taken to realign our businesses and strengthen our capital
position may not be adequate to mitigate the financial, competitive and other risks associated with
our operating environment which could adversely affect our business and results of operations.
    We are exposed to significant financial and capital markets risk, including changes in interest
rates, credit spreads, equity prices, foreign exchange rates and global real estate market
deterioration that may have a material adverse effect on our results of operations, financial
condition and liquidity.
    9




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10




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Our adjustment of our risk management program relating to products we offer with guaranteed
benefits to emphasize protection of statutory surplus will likely result in greater U.S. GAAP
volatility in our earnings and potentially material charges to net income in periods of rising
equity market pricing levels.
  The amount of statutory capital that we have and the amount of statutory capital that we must hold
to maintain our financial strength and credit ratings and meet other requirements can vary
significantly from time to time and is sensitive to a number of factors outside of our control,
including equity market, credit market, interest rate and foreign currency conditions, changes in
policyholder behavior and changes in rating agency models.
   Downgrades in our financial strength or credit ratings, which may make our products less attractive
and increase our cost of capital, could have a material adverse effect on our business, results of
operations, financial condition and liquidity.
    11




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Our valuations of many of our financial instruments include methodologies, estimations and
assumptions that are subject to differing interpretations and could result in changes to investment
valuations that may materially adversely affect our results of operations and financial condition.
   Evaluation of available-for-sale securities for other-than-temporary impairment involves subjective
determinations and could materially impact our results of operations.
   
    
    the length of time and the extent to which the fair value has been less than cost or
amortized cost;
 
    
    changes in the financial condition, credit rating and near-term prospects of the issuer;
 
    
    whether the issuer is current on contractually obligated interest and principal
payments;
 
    
    changes in the financial condition of the securitys underlying collateral;
 
    
    the payment structure of the security;
 
    
    the potential for impairments in an entire industry sector or sub-sector;
 
    
    the potential for impairments in certain economically depressed geographic locations;
 
    
    the potential for impairments of securities where the issuer, series of issuers or
industry has suffered a catastrophic type of loss or has exhausted natural resources;
 
    
    unfavorable changes in forecasted cash flows on mortgage-backed and asset-backed
securities;
 
    
    for mortgage-backed and asset-backed securities, commercial and residential property
value declines that vary by property type and location and average cumulative collateral
loss rates that vary by vintage year;
 
    
    other subjective factors, including concentrations and information obtained from
regulators and rating agencies;
 
    
    our intent to sell a debt or an equity security with debt-like characteristics
(collectively, debt security) or whether it is more likely than not that the Company will
be required to sell the debt security before its anticipated recovery; and
 
    
    our intent and ability to retain an equity security without debt-like characteristics
for a period of time sufficient to allow for the recovery of its value.
   12




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Losses due to nonperformance or defaults by others, including issuers of investment securities
(which include structured securities such as commercial mortgage backed securities and residential
mortgage backed securities or other high yielding bonds) mortgage loans or reinsurance and
derivative instrument counterparties, could have a material adverse effect on the value of our
investments, results of operations, financial condition and cash flows.
    If assumptions used in estimating future gross profits differ from actual experience, we may be
required to accelerate the amortization of DAC and increase reserves for guaranteed minimum death
and income benefits, which could have a material adverse effect on our results of operations and
financial condition.
  If our businesses do not perform well, we may be required to recognize an impairment of our
goodwill or to establish a valuation allowance against the deferred income tax asset, which could
have a material adverse effect on our results of operations and financial condition .
    13




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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 and liquidity.
  We are particularly vulnerable to losses from catastrophes, both natural and man-made, which could
materially and adversely affect our financial condition, results of operations and liquidity.
   We may incur losses due to our reinsurers unwillingness or inability to meet their obligations
under reinsurance contracts and the availability, pricing and adequacy of reinsurance may not be
sufficient to protect us against losses.
  We may experience difficulty in marketing and distributing products through our current and future
distribution channels.
   14




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Competitive activity may adversely affect our market share and financial results, which could have
a material adverse effect on our business, results of operations and financial condition.
  As a savings and loan holding company, our parent, The Hartford, is subject to certain
restrictions, oversight and costs that could materially affect our business, results and prospects.
   The impact of regulatory initiatives, including the enactment of The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 (the Dodd-Frank Act), could have a material adverse impact on
our results of operations and liquidity.
     15




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Limits on the ability of our insurance subsidiaries to pay dividends to us could have a material
adverse effect on our liquidity.
   We may experience unfavorable judicial or legislative developments involving claim litigation that
could have a material adverse effect on our results of operations, financial condition and
liquidity.
   16




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Potential changes in domestic and foreign regulation may increase our business costs and required
capital levels, which could have a material adverse effect on our business, consolidated operating
results, financial condition and 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;
 
    
    establishing assessments and surcharges for guaranty funds, second-injury funds and other
mandatory pooling arrangements;
 
    
    requiring insurers to dividend to policy holders any excess profits; and
 
    
    regulating the types, amounts and valuation of investments.
   If we are unable to maintain the availability of our systems and safeguard the security of our data
due to the occurrence of disasters or other unanticipated events, our ability to conduct business
may be compromised, which may have a material adverse effect on our business, consolidated results
of operations, financial condition or cash flows.
   17




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Our framework for managing business risks may not be effective in mitigating risk and loss to us
that could adversely affect our businesses.
  If we experience difficulties arising from outsourcing relationships, our ability to conduct
business may be compromised.
  Potential changes in federal or state tax laws, including changes impacting the availability of the
separate account dividend received deduction, could adversely affect our business, consolidated
operating results or financial condition or liquidity.
   Changes in accounting principles and financial reporting requirements could result in material
changes to our reported results and financial condition.
  We may not be able to protect our intellectual property and may be subject to infringement claims.
    18




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Item 1B.
    
    UNRESOLVED STAFF COMMENTS
  
 Item 2.
    
    PROPERTIES
  
 Item 3.
    
    LEGAL PROCEEDINGS
 Litigation
   Mutual Fund Fees Litigation
 Structured Settlement Class Action Litigation
 
 Item 4.
    
    (Removed and Reserved)
 
 PART II
 
 Item 5.
    
    MARKET FOR HARTFORD LIFE INSURANCE COMPANYS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
   
 Item 6.
    
    SELECTED FINANCIAL DATA
   19




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Item 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
 (Dollar amounts in millions, except for per share data, unless otherwise stated)
  INDEX
 Description
    
    PageConsolidated Results of Operations
    
    
    21Critical Accounting Estimates
    
    
    23Investment Results
    
    
    28Investment Credit Risk Management
    
    
    30Capital Markets Risk Management
    
    
    38Capital Resources and Liquidity
    
    
    46Impact of New Accounting Standards
    
    
    52
  20




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CONSOLIDATED RESULTS OF OPERATIONS
 Operating Summary
 2010
    
    
    2009Fee income and other
    
    $
    3,806
    
    
    $
    3,723Earned premiums
    
    
    260
    
    
    
    377Net investment incomeSecurities available-for-sale and other
    
    
    2,621
    
    
    
    2,505Equity securities, trading [1]
    
    
    238
    
    
    
    343Total net investment income
    
    
    2,859
    
    
    
    2,848Net realized capital gains (losses):Total other-than-impairment (OTTI) losses
    
    
    (712
    )
    
    
    (1,722
    )OTTI losses recognized to other comprehensive income
    
    
    376
    
    
    
    530Net OTTI losses recognized in earnings
    
    
    (336
    )
    
    
    (1,192
    )Net realized capital gains (losses), excluding net OTTI losses recognized in earnings
    
    
    (608
    )
    
    
    316Total net realized capital losses
    
    
    (944
    )
    
    
    (876
    )Total revenues
    
    
    5,981
    
    
    
    6,072Benefits, losses and loss adjustment expenses
    
    
    2,948
    
    
    
    3,716Benefits, losses and loss adjustment expenses  returns credited on International unit
 linked bonds and pension products [1]
    
    
    238
    
    
    
    343Insurance operating costs and other expenses
    
    
    1,610
    
    
    
    1,826Amortization of deferred policy acquisition costs and present value of future profits
    
    
    215
    
    
    
    3,716Dividends to policyholders
    
    
    21
    
    
    
    12Total benefits, claims and expenses
    
    
    5,032
    
    
    
    9,613Income (loss) from continuing operations before income taxes
    
    
    949
    
    
    
    (3,541
    )Income tax expense (benefit)
    
    
    228
    
    
    
    (1,399
    )Income (loss) from continuing operations
    
    
    721
    
    
    
    (2,142
    )Income (loss) from discontinued operations, net of tax
    
    
    31
    
    
    
    (5
    )Net income (loss)
    
    
    752
    
    
    
    (2,147
    )Net income (loss) attributable to the noncontrolling interest
    
    
    8
    
    
    
    10Net income (loss) attributable to Hartford Life Insurance Company
    
    $
    744
    
    
    $
    (2,157
    )
 [1]
    
    Net investment income includes investment income and mark-to-market effects of equity
securities, trading, supporting the international variable annuity business, which are
classified in net investment income with corresponding amounts credited to policy holders. Year ended December 31, 2010 compared to the year ended December 31, 2009
        21




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Income Taxes
      22




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CRITICAL ACCOUNTING ESTIMATES
   
    
    estimated gross profits used in the valuation and amortization of assets and liabilities
associated with variable annuity and other universal life-type contracts;
 
    
    living benefits required to be fair valued (in other policyholder funds and benefits
payable);
 
    
    valuation of investments and derivative instruments;
 
    
    evaluation of other-than-temporary impairments on available-for-sale securities and
valuation allowances on investments;
 
    
    goodwill impairment;
 
    
    valuation allowance on deferred tax assets; and
 
    
    contingencies relating to corporate litigation and regulatory matters.
  Estimated Gross Profits Used in the Valuation and Amortization of Assets and Liabilities Associated
with Variable Annuity and Other Universal Life-Type Contracts
      23




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Unlocks
  For the year ended December 31, 2010
 Death andSegment
    
    
    
    
    
    
    
    
    
    Insurance BenefitAfter-tax (Charge) Benefit
    
    DAC
    
    
    URR
    
    
    Reserves
    
    
    SIA
    
    
    TotalGlobal Annuity
    
    $
    62
    
    
    $
    
    
    
    $
    37
    
    
    $
    3
    
    
    $
    102Life Insurance
    
    
    23
    
    
    
    5
    
    
    
    1
    
    
    
    (1
    )
    
    
    28Retirement Plans
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18Other
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Total
    
    $
    103
    
    
    $
    5
    
    
    $
    39
    
    
    $
    2
    
    
    $
    149
  For the year ended December 31, 2009
 Death andSegment
    
    
    
    
    
    
    
    
    
    Insurance BenefitAfter-tax (Charge) Benefit
    
    DAC
    
    
    URR
    
    
    Reserves
    
    
    SIA
    
    
    TotalGlobal Annuity
    
    $
    (1,760
    )
    
    $
    84
    
    
    $
    (160
    )
    
    $
    (188
    )
    
    $
    (2,024
    )Life Insurance
    
    
    (100
    )
    
    
    54
    
    
    
    (4
    )
    
    
    
    
    
    
    (50
    )Retirement Plans
    
    
    (55
    )
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    (56
    )Other
    
    
    
    
    
    
    
    
    
    
    (15
    )
    
    
    
    
    
    
    (15
    )Total
    
    $
    (1,915
    )
    
    $
    138
    
    
    $
    (179
    )
    
    $
    (189
    )
    
    $
    (2,145
    )
   24




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Living Benefits Required to be Fair Valued (in Other Policyholder Funds and Benefits Payable)
  Valuation of Investments and Derivative Instruments
   Valuation of Derivative Instruments, excluding embedded derivatives within liability contracts and
reinsurance related derivatives
  Evaluation of Other-Than-Temporary Impairments on Available-for-Sale Securities and Valuation
Allowances on Investments
   25




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Goodwill Impairment
     December 31, 2010
    
    
    December 31, 2009Individual Life within Life Insurance
    
    $
    224
    
    
    $
    224Retirement Plans
    
    
    87
    
    
    
    87Mutual Funds
    
    
    159
    
    
    
    159Total
    
    $
    470
    
    
    $
    470
    26




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Valuation Allowance on Deferred Tax Assets
   Contingencies Relating to Corporate Litigation and Regulatory Matters
    27




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INVESTMENT RESULTS
 Composition of Invested Assets
 December 31, 2010
    
    
    December 31, 2009Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentFixed maturities, AFS, at fair value
    
    $
    44,834
    
    
    
    78.7
    %
    
    $
    40,403
    
    
    
    75.6
    %Fixed maturities, at fair value using the fair value option
    
    
    639
    
    
    
    1.1
    %
    
    
    
    
    
    
    Equity securities, AFS, at fair value
    
    
    340
    
    
    
    0.6
    %
    
    
    419
    
    
    
    0.8
    %Mortgage loans
    
    
    3,244
    
    
    
    5.7
    %
    
    
    4,304
    
    
    
    8.0
    %Policy loans, at outstanding balance
    
    
    2,128
    
    
    
    3.7
    %
    
    
    2,120
    
    
    
    4.0
    %Limited partnerships and other alternative investments
    
    
    838
    
    
    
    1.5
    %
    
    
    759
    
    
    
    1.4
    %Other investments [1]
    
    
    1,461
    
    
    
    2.6
    %
    
    
    338
    
    
    
    0.6
    %Short-term investments
    
    
    3,489
    
    
    
    6.1
    %
    
    
    5,128
    
    
    
    9.6
    %Total investments excluding equity securities, trading
    
    
    56,973
    
    
    
    100.0
    %
    
    
    53,471
    
    
    
    100.0
    %Equity securities, trading, at fair value [2]
    
    
    2,279
    
    
    
    
    
    
    
    2,443Total investments
    
    $
    59,252
    
    
    
    
    
    
    $
    55,914
 [1]
    
    Primarily relates to derivative instruments.[2]
    
    These assets primarily support the European variable annuity business.
Changes in these balances are also reflected in the respective
liabilities.  Net Investment Income (Loss)
 For the years ended December 31,2010
    
    
    2009Amount
    
    
    Yield [1]
    
    
    Amount
    
    
    Yield [1]Fixed maturities [2]
    
    $
    1,977
    
    
    
    4.4
    %
    
    $
    2,094
    
    
    
    4.5
    %Equity securities, AFS
    
    
    14
    
    
    
    3.7
    %
    
    
    43
    
    
    
    8.3
    %Mortgage loans
    
    
    199
    
    
    
    5.5
    %
    
    
    232
    
    
    
    4.9
    %Policy loans
    
    
    129
    
    
    
    6.1
    %
    
    
    136
    
    
    
    6.3
    %Limited partnerships and other alternative investments
    
    
    121
    
    
    
    16.7
    %
    
    
    (171
    )
    
    
    (18.1
    %)Other [3]
    
    
    253
    
    
    
    
    
    
    
    242Investment expense
    
    
    (72
    )
    
    
    
    
    
    
    (71
    )Total securities AFS and other
    
    $
    2,621
    
    
    
    4.6
    %
    
    $
    2,505
    
    
    
    4.2
    %Equity securities, trading
    
    
    238
    
    
    
    
    
    
    
    343Total net investment income (loss), before-tax
    
    $
    2,859
    
    
    
    
    
    
    $
    2,848
 [1]
    
    Yields calculated using annualized investment income before investment expenses divided by the monthly average invested
assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding securities lending collateral and
consolidated variable interest entity noncontrolling interests. Included in the fixed maturity yield is Other, which
primarily relates to derivatives (see footnote [3] below). Included in the total net investment income yield is investment
expense.[2]
    
    Includes net investment income on short-term investments.[3]
    
    Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities. Year ended December 31, 2010 compared to the year ended December 31, 2009
   28




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##### Table of Contents



Net Realized Capital Gains (Losses)
 For the years ended December 31,2010
    
    
    2009Gross gains on sales
    
    $
    486
    
    
    $
    364Gross losses on sales
    
    
    (336
    )
    
    
    (828
    )Net OTTI losses recognized in earnings
    
    
    (336
    )
    
    
    (1,192
    )Valuation allowances on mortgage loans
    
    
    (108
    )
    
    
    (292
    )Japanese fixed annuity contract hedges, net [1]
    
    
    27
    
    
    
    47Periodic net coupon settlements on credit derivatives/Japan
    
    
    (3
    )
    
    
    (33
    )Fair value measurement transition impact
    
    
    
    
    
    
    Results of variable annuity hedge programGMWB derivatives, net
    
    
    113
    
    
    
    1,505Macro hedge program
    
    
    (584
    )
    
    
    (895
    )Total results of variable annuity hedge program
    
    
    (471
    )
    
    
    610GMAB/GMWB/GMIB reinsurance
    
    
    (769
    )
    
    
    1,106Coinsurance and modified coinsurance reinsurance contracts
    
    
    284
    
    
    
    (577
    )Other, net [2]
    
    
    282
    
    
    
    (81
    )Net realized capital losses, before-tax
    
    $
    (944
    )
    
    $
    (876
    )
 [1]
    
    Relates to derivative hedging instruments, excluding periodic net
coupon settlements, and is net of the Japanese fixed annuity product
liability adjustment for changes in the dollar/yen exchange spot rate.[2]
    
    Primarily consists of losses on Japan 3Win related foreign currency
swaps, changes in fair value on non-qualifying derivatives and fixed
maturities, FVO, and other investment gains and losses.  Gross gains and losses on sales
    
          Gross gains and losses on
sales for the year ended December
31, 2010 were predominantly from
sales of investment grade corporate
securities in order to take
advantage of attractive market
opportunities, as well as, sales of
U.S. Treasuries related to tactical
repositioning of the portfolio.      Gross gains and losses on
sales for the year ended December
31, 2009 were predominantly within
structured, government and corporate
securities resulting primarily from
efforts to reduce portfolio risk
through sales of subordinated
financials and real estate related
securities and from sales of U.S.
Treasuries to manage liquidity.Net OTTI losses
    
         For further information, see
Other-Than-Temporary Impairments
within the Investment Credit Risk
section of the MD&A.Valuation allowances on mortgage 
loans
    
         For further information, see
Valuation Allowances on Mortgage
Loans within the Investment Credit
Risk section of the MD&A.Variable annuity hedge program
    
         For the year ended December
31, 2010, the gain on GMWB
derivatives, net, was primarily due
to liability model assumption
updates of $159 and lower implied
market volatility of $118, and
outperformance of the underlying
actively managed funds as compared
to their respective indices of $104,
partially offset by losses due to a
general decrease in long-term rates
of $(158) and rising equity markets
of $(90). The net loss on the macro
hedge program was primarily the
result of a higher equity market
valuation and the impact of trading
activity.      For the year ended December
31, 2009, the gain on GMWB
derivatives, net, was primarily due
to liability model assumption
updates related to favorable
policyholder experience of $566, the
relative outperformance of the
underlying actively managed funds as
compared to their respective indices
of $550, and the impact of the
Companys own credit standing of
$154. Additional net gains of $56
resulted from lower implied market
volatility and a general increase in
long-term interest rates, partially
offset by rising equity markets.
Increasing equity markets resulted
in a loss of $895 related to the
Companys macro hedge program.
Total gains related to GMWB hedging
in 2009 were $1.5 billion. For
further information, see Note 3 of
the Notes to Consolidated Financial
Statements. In addition, see the
Companys variable annuity hedging
program sensitivity disclosures
within Capital Markets Risk
Management section of the MD&A.Other, net
    
         Other, net gains for the
year ended December 31, 2010 was
primarily due to gains of $190 on
credit derivatives driven by credit
spreads tightening and gains of $102
related to Japan variable annuity
hedges due to the appreciation of
the Japanese yen.      Other, net losses for the
year ended December 31, 2009
primarily resulted from net losses
of $329 on credit derivatives where
the company purchased credit
protection due to credit spread
tightening. These losses were
partially offset by gains of $128 on
credit derivatives that assume
credit risk due to credit spread
tightening, as well as $191 from a
change in spot rates related to
transactional foreign currency
predominately on the internal
reinsurance of the Japan variable
annuity business, which is offset in
accumulated other comprehensive
income (AOCI).
  29




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##### Table of Contents



INVESTMENT CREDIT RISK MANAGEMENT
      Derivative Instruments
       30




---



##### Table of Contents



Investments
  Fixed Maturities by Credit Quality
 December 31, 2010
    
    
    December 31, 2009Percent of
    
    
    
    
    
    
    
    
    
    
    Percent ofAmortized
    
    
    
    
    
    
    Total Fair
    
    
    Amortized
    
    
    
    
    
    
    Total FairCost
    
    
    Fair Value
    
    
    Value
    
    
    Cost
    
    
    Fair Value
    
    
    ValueUnited States Government/Government agencies
    
    $
    6,074
    
    
    $
    6,040
    
    
    
    13.5
    %
    
    $
    4,707
    
    
    $
    4,552
    
    
    
    11.3
    %AAA
    
    
    5,175
    
    
    
    5,216
    
    
    
    11.6
    %
    
    
    6,564
    
    
    
    5,966
    
    
    
    14.8
    %AA
    
    
    6,560
    
    
    
    6,347
    
    
    
    14.2
    %
    
    
    6,701
    
    
    
    5,867
    
    
    
    14.5
    %A
    
    
    12,396
    
    
    
    12,552
    
    
    
    28.1
    %
    
    
    11,957
    
    
    
    11,093
    
    
    
    27.4
    %BBB
    
    
    11,878
    
    
    
    12,059
    
    
    
    26.8
    %
    
    
    11,269
    
    
    
    10,704
    
    
    
    26.5
    %BB & below
    
    
    3,240
    
    
    
    2,620
    
    
    
    5.8
    %
    
    
    3,086
    
    
    
    2,221
    
    
    
    5.5
    %Total fixed maturities
    
    $
    45,323
    
    
    $
    44,834
    
    
    
    100.0
    %
    
    $
    44,284
    
    
    $
    40,403
    
    
    
    100.0
    %
   31




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##### Table of Contents



Securities by Type
 December 31, 2010
    
    
    December 31, 2009Percent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    PercentCost or
    
    
    Gross
    
    
    Gross
    
    
    
    
    
    
    of Total
    
    
    Cost or
    
    
    Gross
    
    
    Gross
    
    
    
    
    
    
    of TotalAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair
    
    
    Fair
    
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value
    
    
    Value
    
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Value
    
    
    ValueAsset-backed
securities (ABS)Consumer loans
    
    $
    1,761
    
    
    $
    14
    
    
    $
    (199
    )
    
    $
    1,576
    
    
    
    3.5
    %
    
    $
    1,596
    
    
    $
    13
    
    
    $
    (248
    )
    
    $
    1,361
    
    
    
    3.4
    %Small business
    
    
    369
    
    
    
    
    
    
    
    (125
    )
    
    
    244
    
    
    
    0.5
    %
    
    
    418
    
    
    
    
    
    
    
    (185
    )
    
    
    233
    
    
    
    0.6
    %Other
    
    
    265
    
    
    
    15
    
    
    
    (32
    )
    
    
    248
    
    
    
    0.6
    %
    
    
    330
    
    
    
    18
    
    
    
    (39
    )
    
    
    309
    
    
    
    0.8
    %CDOsCollateralized loan
obligations (CLOs)
    
    
    1,713
    
    
    
    
    
    
    
    (151
    )
    
    
    1,562
    
    
    
    3.5
    %
    
    
    1,997
    
    
    
    
    
    
    
    (208
    )
    
    
    1,789
    
    
    
    4.4
    %CREs
    
    
    562
    
    
    
    
    
    
    
    (228
    )
    
    
    334
    
    
    
    0.7
    %
    
    
    1,157
    
    
    
    14
    
    
    
    (804
    )
    
    
    367
    
    
    
    0.9
    %Other
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    4
    
    
    
    5
    
    
    
    
    
    
    
    9
    
    
    
    CMBSAgency backed [1]
    
    
    295
    
    
    
    5
    
    
    
    (2
    )
    
    
    298
    
    
    
    0.7
    %
    
    
    62
    
    
    
    3
    
    
    
    
    
    
    
    65
    
    
    
    0.2
    %Bonds
    
    
    4,519
    
    
    
    91
    
    
    
    (383
    )
    
    
    4,227
    
    
    
    9.4
    %
    
    
    6,138
    
    
    
    33
    
    
    
    (1,519
    )
    
    
    4,652
    
    
    
    11.5
    %Interest only (IOs)
    
    
    469
    
    
    
    50
    
    
    
    (16
    )
    
    
    503
    
    
    
    1.1
    %
    
    
    644
    
    
    
    40
    
    
    
    (36
    )
    
    
    648
    
    
    
    1.6
    %CorporateBasic industry
    
    
    2,006
    
    
    
    127
    
    
    
    (20
    )
    
    
    2,113
    
    
    
    4.7
    %
    
    
    1,794
    
    
    
    78
    
    
    
    (45
    )
    
    
    1,827
    
    
    
    4.5
    %Capital goods
    
    
    2,095
    
    
    
    154
    
    
    
    (15
    )
    
    
    2,234
    
    
    
    5.0
    %
    
    
    2,078
    
    
    
    100
    
    
    
    (33
    )
    
    
    2,145
    
    
    
    5.3
    %Consumer cyclical
    
    
    1,259
    
    
    
    79
    
    
    
    (8
    )
    
    
    1,330
    
    
    
    3.0
    %
    
    
    1,324
    
    
    
    53
    
    
    
    (33
    )
    
    
    1,344
    
    
    
    3.3
    %Consumer non-cyclical
    
    
    4,262
    
    
    
    316
    
    
    
    (25
    )
    
    
    4,553
    
    
    
    10.2
    %
    
    
    3,260
    
    
    
    205
    
    
    
    (15
    )
    
    
    3,450
    
    
    
    8.6
    %Energy
    
    
    2,421
    
    
    
    167
    
    
    
    (14
    )
    
    
    2,574
    
    
    
    5.7
    %
    
    
    2,239
    
    
    
    130
    
    
    
    (13
    )
    
    
    2,356
    
    
    
    5.8
    %Financial services
    
    
    4,999
    
    
    
    189
    
    
    
    (345
    )
    
    
    4,843
    
    
    
    10.8
    %
    
    
    5,054
    
    
    
    84
    
    
    
    (590
    )
    
    
    4,548
    
    
    
    11.3
    %Tech./comm.
    
    
    2,844
    
    
    
    188
    
    
    
    (45
    )
    
    
    2,987
    
    
    
    6.7
    %
    
    
    2,671
    
    
    
    145
    
    
    
    (40
    )
    
    
    2,776
    
    
    
    6.9
    %Transportation
    
    
    845
    
    
    
    56
    
    
    
    (9
    )
    
    
    892
    
    
    
    2.0
    %
    
    
    544
    
    
    
    16
    
    
    
    (19
    )
    
    
    541
    
    
    
    1.3
    %Utilities
    
    
    4,661
    
    
    
    259
    
    
    
    (40
    )
    
    
    4,880
    
    
    
    10.9
    %
    
    
    3,790
    
    
    
    161
    
    
    
    (52
    )
    
    
    3,899
    
    
    
    9.7
    %Other [2]
    
    
    542
    
    
    
    10
    
    
    
    (17
    )
    
    
    509
    
    
    
    1.1
    %
    
    
    867
    
    
    
    13
    
    
    
    (99
    )
    
    
    781
    
    
    
    1.9
    %Foreign govt./govt.
agencies
    
    
    963
    
    
    
    48
    
    
    
    (9
    )
    
    
    1,002
    
    
    
    2.2
    %
    
    
    824
    
    
    
    35
    
    
    
    (13
    )
    
    
    846
    
    
    
    2.1
    %Municipal
    
    
    1,149
    
    
    
    7
    
    
    
    (124
    )
    
    
    1,032
    
    
    
    2.3
    %
    
    
    971
    
    
    
    3
    
    
    
    (194
    )
    
    
    780
    
    
    
    1.9
    %Residential mortgage-backed
securities (RMBS)Agency
    
    
    2,908
    
    
    
    78
    
    
    
    (16
    )
    
    
    2,970
    
    
    
    6.6
    %
    
    
    2,088
    
    
    
    63
    
    
    
    (5
    )
    
    
    2,146
    
    
    
    5.3
    %Non-agency
    
    
    64
    
    
    
    
    
    
    
    (2
    )
    
    
    62
    
    
    
    0.1
    %
    
    
    125
    
    
    
    
    
    
    
    (14
    )
    
    
    111
    
    
    
    0.3
    %Alt-A
    
    
    144
    
    
    
    
    
    
    
    (18
    )
    
    
    126
    
    
    
    0.3
    %
    
    
    187
    
    
    
    
    
    
    
    (52
    )
    
    
    135
    
    
    
    0.3
    %Sub-prime
    
    
    1,334
    
    
    
    1
    
    
    
    (375
    )
    
    
    960
    
    
    
    2.1
    %
    
    
    1,565
    
    
    
    5
    
    
    
    (626
    )
    
    
    944
    
    
    
    2.3
    %U.S. Treasuries
    
    
    2,871
    
    
    
    11
    
    
    
    (110
    )
    
    
    2,772
    
    
    
    6.3
    %
    
    
    2,557
    
    
    
    5
    
    
    
    (221
    )
    
    
    2,341
    
    
    
    5.8
    %Fixed maturities, AFS
    
    
    45,323
    
    
    
    1,865
    
    
    
    (2,328
    )
    
    
    44,834
    
    
    
    100.0
    %
    
    
    44,284
    
    
    
    1,222
    
    
    
    (5,103
    )
    
    
    40,403
    
    
    
    100.0
    %Equity securitiesFinancial services
    
    
    151
    
    
    
    
    
    
    
    (40
    )
    
    
    111
    
    
    
    
    
    
    
    273
    
    
    
    4
    
    
    
    (51
    )
    
    
    226Other
    
    
    169
    
    
    
    61
    
    
    
    (1
    )
    
    
    229
    
    
    
    
    
    
    
    174
    
    
    
    34
    
    
    
    (15
    )
    
    
    193Equity securities, AFS
    
    
    320
    
    
    
    61
    
    
    
    (41
    )
    
    
    340
    
    
    
    
    
    
    
    447
    
    
    
    38
    
    
    
    (66
    )
    
    
    419Total AFS securities
    
    $
    45,643
    
    
    $
    1,926
    
    
    $
    (2,369
    )
    
    $
    45,174
    
    
    
    
    
    
    $
    44,731
    
    
    $
    1,260
    
    
    $
    (5,169
    )
    
    $
    40,822Fixed maturities, FVO
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    639
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    
 [1]
    
    Represents securities with pools of loans issued by the Small Business
Administration which are backed by the full faith and credit of the
U.S. government.[2]
    
    Gross unrealized gains (losses) exclude the fair value of bifurcated
embedded derivative features of certain securities. Subsequent
changes in value will be recorded in net realized capital gains
(losses).   32




---



##### Table of Contents



Financial Services
  December 31, 2010
    
    
    December 31, 2009Amortized
    
    
    
    
    
    
    Net
    
    
    Amortized
    
    
    
    
    
    
    NetCost
    
    
    Fair Value
    
    
    Unrealized
    
    
    Cost
    
    
    Fair Value
    
    
    UnrealizedAAA
    
    $
    157
    
    
    $
    162
    
    
    $
    5
    
    
    $
    151
    
    
    $
    152
    
    
    $
    1AA
    
    
    1,472
    
    
    
    1,480
    
    
    
    8
    
    
    
    1,311
    
    
    
    1,273
    
    
    
    (38
    )A
    
    
    2,496
    
    
    
    2,381
    
    
    
    (115
    )
    
    
    2,702
    
    
    
    2,373
    
    
    
    (329
    )BBB
    
    
    885
    
    
    
    809
    
    
    
    (76
    )
    
    
    805
    
    
    
    681
    
    
    
    (124
    )BB & below
    
    
    140
    
    
    
    122
    
    
    
    (18
    )
    
    
    358
    
    
    
    295
    
    
    
    (63
    )Total
    
    $
    5,150
    
    
    $
    4,954
    
    
    $
    (196
    )
    
    $
    5,327
    
    
    $
    4,774
    
    
    $
    (553
    )
  Commercial Real Estate
   CMBS  Bonds [1]
 December 31, 2010AAA
    
    
    AA
    
    
    A
    
    
    BBB
    
    
    BB and Below
    
    
    TotalAmortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value2003 & Prior
    
    $
    545
    
    
    $
    558
    
    
    $
    65
    
    
    $
    64
    
    
    $
    33
    
    
    $
    32
    
    
    $
    14
    
    
    $
    13
    
    
    $
    18
    
    
    $
    16
    
    
    $
    675
    
    
    $
    6832004
    
    
    287
    
    
    
    302
    
    
    
    25
    
    
    
    24
    
    
    
    39
    
    
    
    35
    
    
    
    27
    
    
    
    22
    
    
    
    6
    
    
    
    5
    
    
    
    384
    
    
    
    3882005
    
    
    335
    
    
    
    347
    
    
    
    48
    
    
    
    43
    
    
    
    138
    
    
    
    115
    
    
    
    112
    
    
    
    94
    
    
    
    74
    
    
    
    59
    
    
    
    707
    
    
    
    6582006
    
    
    703
    
    
    
    728
    
    
    
    509
    
    
    
    481
    
    
    
    183
    
    
    
    159
    
    
    
    322
    
    
    
    266
    
    
    
    335
    
    
    
    262
    
    
    
    2,052
    
    
    
    1,8962007
    
    
    187
    
    
    
    196
    
    
    
    116
    
    
    
    93
    
    
    
    45
    
    
    
    35
    
    
    
    137
    
    
    
    104
    
    
    
    186
    
    
    
    143
    
    
    
    671
    
    
    
    5712008
    
    
    30
    
    
    
    31
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    31Total
    
    $
    2,087
    
    
    $
    2,162
    
    
    $
    763
    
    
    $
    705
    
    
    $
    438
    
    
    $
    376
    
    
    $
    612
    
    
    $
    499
    
    
    $
    619
    
    
    $
    485
    
    
    $
    4,519
    
    
    $
    4,227Credit protection
    
    29.7%
    
    
    22.9%
    
    
    12.3%
    
    
    14.1%
    
    
    7.6%
    
    
    21.8%
 December 31, 2009AAA
    
    
    AA
    
    
    A
    
    
    BBB
    
    
    BB and Below
    
    
    TotalAmortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value2003 & Prior
    
    $
    1,198
    
    
    $
    1,192
    
    
    $
    159
    
    
    $
    120
    
    
    $
    50
    
    
    $
    34
    
    
    $
    14
    
    
    $
    13
    
    
    $
    6
    
    
    $
    4
    
    
    $
    1,427
    
    
    $
    1,3632004
    
    
    342
    
    
    
    338
    
    
    
    61
    
    
    
    39
    
    
    
    27
    
    
    
    17
    
    
    
    15
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    445
    
    
    
    4012005
    
    
    490
    
    
    
    449
    
    
    
    199
    
    
    
    133
    
    
    
    126
    
    
    
    72
    
    
    
    87
    
    
    
    54
    
    
    
    61
    
    
    
    45
    
    
    
    963
    
    
    
    7532006
    
    
    1,293
    
    
    
    1,091
    
    
    
    374
    
    
    
    238
    
    
    
    377
    
    
    
    167
    
    
    
    244
    
    
    
    95
    
    
    
    199
    
    
    
    71
    
    
    
    2,487
    
    
    
    1,6622007
    
    
    283
    
    
    
    223
    
    
    
    36
    
    
    
    24
    
    
    
    116
    
    
    
    42
    
    
    
    180
    
    
    
    88
    
    
    
    201
    
    
    
    96
    
    
    
    816
    
    
    
    473Total
    
    $
    3,606
    
    
    $
    3,293
    
    
    $
    829
    
    
    $
    554
    
    
    $
    696
    
    
    $
    332
    
    
    $
    540
    
    
    $
    257
    
    
    $
    467
    
    
    $
    216
    
    
    $
    6,138
    
    
    $
    4,652Credit protection
    
    27.4%
    
    
    21.5%
    
    
    13.3%
    
    
    11.7%
    
    
    9.1%
    
    
    22.2%
 [1]
    
    The vintage year represents the year the pool of loans was originated.  33




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##### Table of Contents



Commercial Mortgage Loans
 December 31, 2010
    
    
    December 31, 2009Amortized
    
    
    Valuation
    
    
    Carrying
    
    
    Amortized
    
    
    Valuation
    
    
    CarryingCost [1]
    
    
    Allowance
    
    
    Value
    
    
    Cost [1]
    
    
    Allowance
    
    
    ValueAgricultural
    
    $
    182
    
    
    $
    (5
    )
    
    $
    177
    
    
    $
    369
    
    
    $
    (3
    )
    
    $
    366Whole loans
    
    
    2,479
    
    
    
    (16
    )
    
    
    2,463
    
    
    
    2,505
    
    
    
    (26
    )
    
    
    2,479A-Note participations
    
    
    288
    
    
    
    
    
    
    
    288
    
    
    
    326
    
    
    
    
    
    
    
    326B-Note participations
    
    
    195
    
    
    
    (5
    )
    
    
    190
    
    
    
    508
    
    
    
    (131
    )
    
    
    377Mezzanine loans
    
    
    162
    
    
    
    (36
    )
    
    
    126
    
    
    
    856
    
    
    
    (100
    )
    
    
    756Total
    
    $
    3,306
    
    
    $
    (62
    )
    
    $
    3,244
    
    
    $
    4,564
    
    
    $
    (260
    )
    
    $
    4,304
 [1]
    
    Amortized cost represents carrying value prior to valuation allowances, if any.   Limited Partnerships and Other Alternative Investments
  December 31, 2010
    
    
    December 31, 2009Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentHedge funds
    
    $
    33
    
    
    
    4.0
    %
    
    $
    105
    
    
    
    13.8
    %Mortgage and real estate funds
    
    
    161
    
    
    
    19.2
    %
    
    
    124
    
    
    
    16.4
    %Mezzanine debt funds
    
    
    68
    
    
    
    8.1
    %
    
    
    66
    
    
    
    8.7
    %Private equity and other funds
    
    
    576
    
    
    
    68.7
    %
    
    
    464
    
    
    
    61.1
    %Total
    
    $
    838
    
    
    
    100.0
    %
    
    $
    759
    
    
    
    100.0
    %
   34




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##### Table of Contents



Available-for-Sale Securities  Unrealized Loss Aging
      December 31, 2010
    
    
    December 31, 2009Cost or
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cost orAmortized
    
    
    Fair
    
    
    Unrealized
    
    
    
    
    
    
    Amortized
    
    
    Fair
    
    
    UnrealizedItems
    
    
    Cost
    
    
    Value
    
    
    Loss [1]
    
    
    Items
    
    
    Cost
    
    
    Value
    
    
    LossThree months or less
    
    
    200
    
    
    $
    6,892
    
    
    $
    6,631
    
    
    $
    (257
    )
    
    
    766
    
    
    $
    5,878
    
    
    $
    5,622
    
    
    $
    (256
    )Greater than three to six months
    
    
    219
    
    
    
    353
    
    
    
    335
    
    
    
    (17
    )
    
    
    39
    
    
    
    161
    
    
    
    143
    
    
    
    (18
    )Greater than six to nine months
    
    
    60
    
    
    
    293
    
    
    
    269
    
    
    
    (24
    )
    
    
    172
    
    
    
    1,106
    
    
    
    931
    
    
    
    (175
    )Greater than nine to twelve months
    
    
    82
    
    
    
    127
    
    
    
    115
    
    
    
    (12
    )
    
    
    62
    
    
    
    1,501
    
    
    
    1,205
    
    
    
    (296
    )Greater than twelve months
    
    
    1,024
    
    
    
    10,769
    
    
    
    8,689
    
    
    
    (2,059
    )
    
    
    1,434
    
    
    
    15,309
    
    
    
    10,885
    
    
    
    (4,424
    )Total
    
    
    1,585
    
    
    $
    18,434
    
    
    $
    16,039
    
    
    $
    (2,369
    )
    
    
    2,473
    
    
    $
    23,955
    
    
    $
    18,786
    
    
    $
    (5,169
    )
 [1]
    
    Unrealized losses exclude the fair value of bifurcated embedded derivative features of
certain securities. Subsequent changes in value will be recorded in net realized capital
gains (losses).  35




---



##### Table of Contents



December 31, 2010
    
    
    December 31, 2009Cost or
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cost orAmortized
    
    
    Fair
    
    
    Unrealized
    
    
    
    
    
    
    Amortized
    
    
    Fair
    
    
    UnrealizedConsecutive Months
    
    Items
    
    
    Cost
    
    
    Value
    
    
    Loss
    
    
    Items
    
    
    Cost
    
    
    Value
    
    
    LossThree months or less
    
    
    47
    
    
    $
    433
    
    
    $
    322
    
    
    $
    (111
    )
    
    
    79
    
    
    $
    591
    
    
    $
    395
    
    
    $
    (196
    )Greater than three to six months
    
    
    15
    
    
    
    126
    
    
    
    97
    
    
    
    (29
    )
    
    
    16
    
    
    
    52
    
    
    
    36
    
    
    
    (16
    )Greater than six to nine months
    
    
    24
    
    
    
    155
    
    
    
    107
    
    
    
    (48
    )
    
    
    99
    
    
    
    1,237
    
    
    
    844
    
    
    
    (393
    )Greater than nine to twelve months
    
    
    9
    
    
    
    20
    
    
    
    16
    
    
    
    (4
    )
    
    
    67
    
    
    
    1,201
    
    
    
    801
    
    
    
    (400
    )Greater than twelve months
    
    
    342
    
    
    
    3,547
    
    
    
    2,244
    
    
    
    (1,303
    )
    
    
    585
    
    
    
    6,235
    
    
    
    3,115
    
    
    
    (3,120
    )Total
    
    
    437
    
    
    $
    4,281
    
    
    $
    2,786
    
    
    $
    (1,495
    )
    
    
    846
    
    
    $
    9,316
    
    
    $
    5,191
    
    
    $
    (4,125
    )
  December 31, 2010
    
    
    December 31, 2009Cost or
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cost orAmortized
    
    
    Fair
    
    
    Unrealized
    
    
    
    
    
    
    Amortized
    
    
    Fair
    
    
    UnrealizedConsecutive Months
    
    Items
    
    
    Cost
    
    
    Value
    
    
    Loss
    
    
    Items
    
    
    Cost
    
    
    Value
    
    
    LossThree months or less
    
    
    15
    
    
    $
    25
    
    
    $
    11
    
    
    $
    (14
    )
    
    
    42
    
    
    $
    132
    
    
    $
    46
    
    
    $
    (86
    )Greater than three to six months
    
    
    4
    
    
    
    2
    
    
    
    1
    
    
    
    (1
    )
    
    
    11
    
    
    
    5
    
    
    
    2
    
    
    
    (3
    )Greater than six to nine months
    
    
    11
    
    
    
    64
    
    
    
    28
    
    
    
    (36
    )
    
    
    51
    
    
    
    175
    
    
    
    69
    
    
    
    (106
    )Greater than nine to twelve months
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    499
    
    
    
    173
    
    
    
    (326
    )Greater than twelve months
    
    
    88
    
    
    
    635
    
    
    
    233
    
    
    
    (402
    )
    
    
    205
    
    
    
    2,105
    
    
    
    601
    
    
    
    (1,504
    )Total
    
    
    118
    
    
    $
    726
    
    
    $
    273
    
    
    $
    (453
    )
    
    
    361
    
    
    $
    2,916
    
    
    $
    891
    
    
    $
    (2,025
    )
 Other-Than-Temporary Impairments
  For the years ended December 31,2010
    
    
    2009ABS
    
    $
    11
    
    
    $
    50CDOsCREs
    
    
    135
    
    
    
    421Other
    
    
    
    
    
    
    23CMBSBonds
    
    
    112
    
    
    
    140IOs
    
    
    1
    
    
    
    17Corporate
    
    
    23
    
    
    
    176Equity
    
    
    9
    
    
    
    109Foreign govt./govt. agencies
    
    
    
    
    
    
    Municipal
    
    
    
    
    
    
    RMBSNon-agency
    
    
    2
    
    
    
    4Alt-A
    
    
    8
    
    
    
    46Sub-prime
    
    
    35
    
    
    
    204U.S. Treasuries
    
    
    
    
    
    
    2Total
    
    $
    336
    
    
    $
    1,192
  36




---



##### Table of Contents



Year ended December 31, 2010
       Year ended December 31, 2009
  Valuation Allowances on Mortgage Loans
  For the years ended December 31,2010
    
    
    2009Credit-related concerns
    
    $
    40
    
    
    $
    216Held for saleAgricultural loans
    
    
    7
    
    
    
    B-note participations
    
    
    10
    
    
    
    36Mezzanine loans
    
    
    51
    
    
    
    40Total
    
    $
    108
    
    
    $
    292
   37




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##### Table of Contents



CAPITAL MARKETS RISK MANAGEMENT
    Market Risk
  Interest Rate Risk
     38




---



##### Table of Contents



Fixed Maturity Investments
  Liabilities
     Derivatives
    39




---



##### Table of Contents



Interest Rate Sensitivity
  Change in Net Economic Value As of December 31,2010
    
    
    2009Basis point shift
    
    
    - 100
    
    
    
    + 100
    
    
    
    - 100
    
    
    
    + 100Amount
    
    $
    (184
    )
    
    $
    99
    
    
    $
    (11
    )
    
    $
    (7
    )
   Change in Fair Value As of December 31,2010
    
    
    2009Basis point shift
    
    
    - 100
    
    
    
    + 100
    
    
    
    - 100
    
    
    
    + 100Amount
    
    $
    1,406
    
    
    $
    (1,275
    )
    
    $
    939
    
    
    $
    (864
    )
  Credit Risk
   Equity Risk
   40




---



##### Table of Contents



Variable Product Equity Risk
    
    
    reduce the value of assets under management and the amount of fee income generated from
those assets;
 
    
    increase the liability for direct GMWB benefits, and reinsured GMWB and GMIB benefits,
resulting in realized capital losses;
 
    
    increase the value of derivative assets used to dynamically hedge product guarantees
resulting in realized capital gains;
 
    
    increase the costs of the hedging instruments we use in our hedging program;
 
    
    increase the Companys net amount at risk for GMDB benefits;
 
    
    decrease the Companys actual gross profits, resulting in increased DAC amortization;
 
    
    increase the amount of required assets to be held for backing variable annuity guarantees
to maintain required regulatory reserve levels and targeted risk based capital ratios;
 
    
    adversely affect customer sentiment toward equity-linked products negative, causing a
decline in sales, and
 
    
    decrease the Companys estimated future gross profits See Estimated Gross Profits Used in
the Valuation and Amortization of Assets and Liabilities Associated with Variable Annuity and
Other Universal Life-Type Contracts within Critical Accounting Estimates for further
information.
  GMWB and Intercompany Reinsurance of GMWB, GMAB, and GMIB
    41




---



##### Table of Contents



GMDB and Intercompany Reinsurance of GMDB
   Variable Product Equity Risk Management
 Market Risk Exposures
  Variable Annuity Guarantee [1]
    
    U.S. GAAP Treatment [1]
    
    Market Risk Exposures [1]U.S. GMDB
    
    Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
    
    Equity Market LevelsJapan GMDB (Assumed)
    
    Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
    
    Equity Market Levels/Interest
Rates / Foreign
CurrencyGMWB
    
    Fair Value
    
    Equity Market Levels/Implied
Volatility/Interest
RatesFor Life Component of GMWB
    
    Accumulation of the
portion of fees
required to cover
expected claims, less
accumulation of actual
claims paid
    
    Equity Market LevelsJapan GMIB (Assumed)
    
    Fair Value
    
    Equity Market
Levels/Interest
Rate/Foreign CurrencyJapan GMAB (Assumed)
    
    Fair Value
    
    Equity Market Levels/Implied
Volatility/Interest
Rates
 [1]
    
    Each of these guarantees and the related U.S. GAAP accounting volatility will also be
influenced by actual and estimated policyholder behavior. Risk Management
   42




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##### Table of Contents



Customized
    
    Dynamic
    
    MacroVariable Annuity Guarantee
    
    Reinsurance [1]
    
    Derivative
    
    Hedging [2]
    
    Hedging [3]GMDB
    
    ü
    
    
    
    
    
    üGMDB (Assumed)
    
    ü
    
    
    
    
    
    üGMWB
    
    ü
    
    ü
    
    ü
    
    üFor Life Component of GMWB
    
    ü
    
    
    
    
    
    üGMIB (Assumed)
    
    ü
    
    
    
    
    
    üGMAB (Assumed)
    
    ü
    
    
    
    
    
    ü
 [1]
    
    The Company cedes the GMDB and GMWB including for life component of
GMWB, written by HLAI, and GMDB, GMIB and GMAB assumed by HLAI from
HLIKK, to an affiliated captive reinsurer. See Note 16 Transactions
with Affiliates for further discussion.[2]
    
    Through the third quarter of 2010, the Company continued to maintain a
reduced level of dynamic hedge protection on GMWB while placing a
greater relative emphasis on the protection of statutory surplus
through the inclusion of a macro hedging program. This portion of the
GMWB hedge strategy may include derivatives with maturities of up to
10 years. U.S. GAAP fair value volatility will be driven by a reduced
level of dynamic hedge protection and macro program positions.[3]
    
    As described below, the Companys macro hedging program is not
designed to provide protection against any one variable annuity
guarantee program, but rather is a broad based hedge designed to
provide protection against multiple guarantees and market risks,
primarily focused on statutory liability and surplus volatility. Third Party Reinsurance
  Derivative Hedging Strategies
  Customized Derivatives
  Dynamic Hedging
  Macro Hedging
  Hedging Impact
   43




---



##### Table of Contents



Equity Risk Impact on Statutory Capital and Risked Based Capital
  Derivative Instruments
   Foreign Currency Exchange Risk
  Fixed Maturity Investments
     44




---



##### Table of Contents



Liabilities
     45




---



##### Table of Contents



CAPITAL RESOURCES AND LIQUIDITY
  Derivative Commitments
   As of December 31, 2010Ratings levels
    
    Notional Amount
    
    
    Fair ValueEither BBB+ or Baa1 [1]
    
    $
    14,146
    
    
    $
    348
 [1]
    
    The notional and fair value amounts include a customized GMWB derivative with a notional
amount of $5.1 billion and a fair value of $122, for which the Company has a contractual right
to make a collateral payment in the amount of approximately $60 to prevent its termination. Insurance Operations
     Fixed maturities [1]
    
    $
    45,473Short-term investments
    
    
    3,489Cash
    
    
    531Less: Derivative collateral
    
    
    (1,639
    )Total
    
    $
    47,854
 [1]
    
    Includes $2.8 billion of U.S. Treasuries.   46




---



##### Table of Contents



As ofDecember 31,Contractholder Obligations
    
    2010Total Contractholder obligations
    
    $
    217,143Less: Separate account assets [1]
    
    
    (159,729
    )International statutory separate accounts [1]
    
    
    (2,279
    )General account contractholder obligations
    
    $
    55,135Composition of General Account Contractholder ObligationsContracts without a surrender provision and/or fixed payout dates [2]
    
    $
    21,176Fixed MVA annuities [3]
    
    
    10,467International fixed MVA annuities
    
    
    2,723Guaranteed investment contracts (GIC) [4]
    
    
    912Other [5]
    
    
    19,857General account contractholder obligations
    
    $
    55,135
 [1]
    
    In the event customers elect to surrender separate account assets or
international statutory separate accounts, the Company will use the
proceeds from the sale of the assets to fund the surrender, and the
Companys liquidity position will not be impacted. In many instances
the Company will receive a percentage of the surrender amount as
compensation for early surrender (surrender charge), increasing the
Companys liquidity position. In addition, a surrender of variable
annuity separate account or general account assets (see below) will
decrease the Companys obligation for payments on guaranteed living
and death benefits.[2]
    
    Relates to contracts such as payout annuities or institutional notes,
other than guaranteed investment products with an MVA feature
(discussed below) or surrenders of term life, group benefit contracts
or death and living benefit reserves for which surrenders will have no
current effect on the Companys liquidity requirements.[3]
    
    Relates to annuities that are held in a statutory separate account,
but under U.S. GAAP are recorded in the general account as Fixed MVA
annuity contract holders are subject to the Companys credit risk. In
the statutory separate account, the Company is required to maintain
invested assets with a fair value equal to the MVA surrender value of
the Fixed MVA contract. In the event assets decline in value at a
greater rate than the MVA surrender value of the Fixed MVA contract,
the Company is required to contribute additional capital to the
statutory separate account. the Company will fund these required
contributions with operating cash flows or short-term investments. In
the event that operating cash flows or short-term investments are not
sufficient to fund required contributions, the Company may have to
sell other invested assets at a loss, potentially resulting in a
decrease in statutory surplus. As the fair value of invested assets
in the statutory separate account are generally equal to the MVA
surrender value of the Fixed MVA contract, surrender of Fixed MVA
annuities will have an insignificant impact on the liquidity
requirements of the Company.[4]
    
    GICs are subject to discontinuance provisions which allow the
policyholders to terminate their contracts prior to scheduled maturity
at the lesser of the book value or market value. Generally, the
market value adjustment reflects changes in interest rates and credit
spreads. As a result, the market value adjustment feature in the GIC
serves to protect the Company from interest rate risks and limit the
Companys liquidity requirements in the event of a surrender.[5]
    
    Surrenders of, or policy loans taken from, as applicable, these
general account liabilities, which include the general account option
for Global Annuitys individual variable annuities and Life
Insurances variable life contracts, the general account option for
Retirement Plans annuities and universal life contracts sold by Life
Insurance may be funded through operating cash flows of the Company,
available short-term investments, or the Company may be required to
sell fixed maturity investments to fund the surrender payment. Sales
of fixed maturity investments could result in the recognition of
significant realized losses and insufficient proceeds to fully fund
the surrender amount. In this circumstance, the Company may need to
take other actions, including enforcing certain contract provisions
which could restrict surrenders and/or slow or defer payouts. Consumer Notes
    47




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##### Table of Contents



Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
  Payments due by periodLess than
    
    
    1-3
    
    
    3-5
    
    
    More thanTotal
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 yearsOperating Leases [1]
    
    $
    29
    
    
    $
    12
    
    
    $
    14
    
    
    $
    3
    
    
    $
    Consumer notes [2]
    
    
    419
    
    
    
    79
    
    
    
    250
    
    
    
    50
    
    
    
    40Other long-term liabilities
    
    
    1,511
    
    
    
    1,095
    
    
    
    274
    
    
    
    142
    
    
    
    Life and Annuity obligations [3]
    
    
    335,117
    
    
    
    23,183
    
    
    
    46,203
    
    
    
    38,305
    
    
    
    227,426Purchase Obligations [4]
    
    
    1,156
    
    
    
    1,102
    
    
    
    48
    
    
    
    6
    
    
    
    Total
    
    $
    338,232
    
    
    $
    25,471
    
    
    $
    46,789
    
    
    $
    38,506
    
    
    $
    227,466
 [1]
    
    Includes future minimum lease payments on operating lease agreements.
See Note 10 of the Notes to Consolidated Financial Statements for
additional discussion on lease commitments.[2]
    
    Consumer notes include principal payments, contractual interest for
fixed rate notes and, interest based on current rates for floating
rate notes. See Note 12 of the Notes to Consolidated Financial
Statements for additional discussion of consumer notes.[3]
    
    Estimated life and annuity obligations include death claims, other
charges associated with policyholder reserves, policy surrenders and
policyholder dividends, offset by expected future deposits on in-force
contracts. Estimated life and annuity obligations are based on
mortality, morbidity and lapse assumptions comparable with the
Companys historical experience, modified for recent observed trends.
The Company has also assumed market growth and interest crediting
consistent with other assumptions. In contrast to this table, the
majority of the Companys obligations are recorded on the balance
sheet at the current account values and do not incorporate an
expectation of future market growth, interest crediting, or future
deposits. Therefore, the estimated obligations presented in this table
significantly exceed the liabilities recorded in reserve for future
policy benefits and unpaid loss and loss 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[4]
    
    Included in purchase obligations is $192 relating to contractual
commitments to purchase various goods and services such as
maintenance, human resources, information technology, and
transportation in the normal course of business. Purchase obligations
exclude contracts that are cancelable without penalty or contracts
that do not specify minimum levels of goods or services to be
purchased. Dividends
     48




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##### Table of Contents



Cash Flows
 2010
    
    
    2009Net cash provided by operating activities
    
    $
    1,882
    
    
    $
    2,522Net cash provided by (used for) investing activities
    
    $
    209
    
    
    $
    (192
    )Net cash used for financing activities
    
    $
    (2,363
    )
    
    $
    (2,183
    )Cash  End of Year
    
    $
    531
    
    
    $
    793
 Year ended December 31, 2010 compared to Year-ended December 31, 2009
     Equity Markets
  Ratings
   Insurance Financial Strength Ratings:
    
    A.M. Best
    
    
    Fitch
    
    
    Standard & Poors
    
    
    MoodysHartford Life Insurance Company
    
    
    A
    
    
    
    A-
    
    
    
    A
    
    
    
    A3Hartford Life and Annuity Insurance Company
    
    
    A
    
    
    
    A-
    
    
    
    A
    
    
    
    A3
    49




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##### Table of Contents



Statutory Capital
   
    
    Costs incurred by the Company to acquire insurance policies are deferred under US GAAP
while those costs are expensed immediately under US STAT.
 
    
    Temporary differences between the book and tax basis of an asset or liability which are
recorded as deferred tax assets are evaluated for recoverability under US GAAP while those
amounts deferred are subject to limitations under US STAT.
 
    
    The assumptions used in the determination of benefit reserves is prescribed under US STAT,
while the assumptions used under US GAAP are generally the Companys best estimates. The
methodologies for determining life insurance reserve amounts may also be different. For
example, reserving for living benefit reserves under US STAT is generally addressed by the
Commissioners Annuity Reserving Valuation Methodology and the related Actuarial Guidelines,
while under US GAAP, those same living benefits may be considered embedded derivatives and
recorded at fair value or they may be considered SOP 03-1 reserves. The sensitivity of these
life insurance reserves to changes in equity markets, as applicable, will be different between
US GAAP and US STAT.
 
    
    The difference between the amortized cost and fair value of fixed maturity and other
investments, net of tax, is recorded as an increase or decrease to the carrying value of the
related asset and to equity under US GAAP, while US STAT only records certain securities at
fair value, such as equity securities and certain lower rated bonds required by the NAIC to be
recorded at the lower of amortized cost or fair value. In the case of the Companys market
value adjusted (MVA) fixed annuity products, invested assets are marked to fair value
(including the impact of audit spreads) and liabilities are marked to fair value (but
generally excluding the impacts of credit spreads) for statutory purposes only. In the case
of the Companys market value adjusted (MVA) fixed annuity products, invested assets are
marked to fair value (but generally actual credit spreads are not fully reflected) for
statutory purposes only.
 
    
    US STAT for life insurance companies establishes a formula reserve for realized and
unrealized losses due to default and equity risks associated with certain invested assets (the
Asset Valuation Reserve), while US GAAP does not. Also, for those realized gains and losses
caused by changes in interest rates, US STAT for life insurance companies defers and amortizes
the gains and losses, caused by changes in interest rates, into income over the original life
to maturity of the asset sold (the Interest Maintenance Reserve) while US GAAP does not.
 
    
    Goodwill arising from the acquisition of a business is tested for recoverability on an
annual basis (or more frequently, as necessary) for US GAAP, while under US STAT goodwill is
amortized over a period not to exceed 10 years and the amount of goodwill is limited.
  Risk-based Capital
   50




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##### Table of Contents



Sensitivity
  
    
    In general, as equity market levels decline, our reserves for death and living benefit
guarantees associated with variable annuity contracts increases, sometimes at a greater than
linear rate, reducing statutory surplus levels. In addition, as equity market levels
increase, generally surplus levels will increase. RBC ratios will also tend to increase when
equity markets increase. However, as a result of a number of factors and market conditions,
including the level of hedging costs and other risk transfer activities, reserve requirements
for death and living benefit guarantees and RBC requirements could increase resulting in lower
RBC ratios.
 
    
    As the value of certain fixed-income and equity securities in our investment portfolio
decreases, due in part to credit spread widening, statutory surplus and RBC ratios may
decrease.
 
    
    As the value of certain derivative instruments that do not get hedge accounting decreases,
statutory surplus and RBC ratios may decrease.
 
    
    Our statutory surplus is also impacted by widening credit spreads as a result of the
accounting for the assets and liabilities in our fixed market value adjusted (MVA)
annuities. Statutory separate account assets supporting the fixed MVA annuities are recorded
at fair value. In determining the statutory reserve for the fixed MVA annuities, we are
required to use current crediting rates. In many capital market scenarios, current crediting
rates are highly correlated with market rates implicit in the fair value of statutory separate
account assets. As a result, the change in statutory reserve from period to period will
likely substantially offset the change in the fair value of the statutory separate account
assets. However, in periods of volatile credit markets, such as we have experienced, actual
credit spreads on investment assets may increase sharply for certain sub-sectors of the
overall credit market, resulting in statutory separate account asset market value losses. As
actual credit spreads are not fully reflected in the current crediting rates, the calculation
of statutory reserves will not substantially offset the change in fair value of the statutory
separate account assets resulting in reductions in statutory surplus and can create funding
obligations to the statutory separate account.
    Contingencies
 Legal Proceedings
  Legislative Initiatives
  Guaranty Fund and Other Insurance-related Assessments
   51




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##### Table of Contents



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
  Managements annual report on internal control over financial reporting
      Changes in internal control over financial reporting
  
 Item 9B.
    
    OTHER INFORMATION
  
 PART III
 
 Item 10.
    
    DIRECTORS, AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF HARTFORD LIFE INSURANCE
COMPANY
  
 Item 11.
    
    EXECUTIVE COMPENSATION
   52




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##### Table of Contents



Item 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
  
 Item 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
  
 Item 14.
    
    PRINCIPAL ACCOUNTING FEES AND SERVICES
  Year Ended
    
    
    Year EndedDecember 31, 2010
    
    
    December 31, 2009(1) Audit fees
    
    $
    9,766,032
    
    
    $
    9,036,682(2) Audit-related fees(a)
    
    
    707,026
    
    
    
    735,674(3) Tax fees(b)
    
    
    12,200
    
    
    
    14,000(4) All other fees(c)
    
    
    267,081
    
    
    
    30,000Total
    
    $
    10,752,339
    
    
    $
    9,816,356
 (a)
    
    Principally consisted of internal control reviews and due diligence and related services.(b)
    
    Principally consisted of domestic and international tax compliance services and tax
examination assistance.(c)
    
    Fees for the year ended December 31, 2010 consisted primarily of an enterprise risk
management project.   
 PART IV
 
 Item 15.
    
    EXHIBITS, FINANCIAL STATEMENT SCHEDULES
  Consolidated Financial Statements.
 Consolidated Financial Statement Schedules.
 Exhibits.
  53




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
 Page(s)Report of Independent Registered Public Accounting Firm
    
    
    F-2Consolidated Statements of Operations 
 For the Years Ended December 31, 2010, 2009 and 2008
    
    
    F-3Consolidated Balance Sheets  
As of December 31, 2010 and 2009
    
    
    F-4Consolidated Statements of Changes in Equity 
 For the Years Ended December 31, 2010, 2009 and 2008
    
    
    F-5-6Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2010, 2009 and 2008
    
    
    F-7Notes to Consolidated Financial Statements
    
    
    F-8-64Schedule I  Summary of Investments  Other Than Investments in Affiliates
    
    
    S-1Schedule III  Supplementary Insurance Information
    
    
    S-2Schedule IV  Reinsurance
    
    
    S-4Schedule V  Valuation and Qualifying Accounts
    
    
    S-5
  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 Operations
 For the years ended December 31,(In millions)
    
    2010
    
    
    2009
    
    
    2008RevenuesFee income and other
    
    $
    3,806
    
    
    $
    3,723
    
    
    $
    4,123Earned premiums
    
    
    260
    
    
    
    377
    
    
    
    984Net investment income (loss)Securities available-for-sale and other
    
    
    2,621
    
    
    
    2,505
    
    
    
    2,588Equity securities held for trading
    
    
    238
    
    
    
    343
    
    
    
    (246
    )Total net investment income (loss)
    
    
    2,859
    
    
    
    2,848
    
    
    
    2,342Net realized capital gains (losses):Total other-than-temporary impairment (OTTI) losses
    
    
    (712
    )
    
    
    (1,722
    )
    
    
    (1,888
    )OTTI losses recognized to other comprehensive income
    
    
    376
    
    
    
    530
    
    
    
    Net OTTI losses recognized in earnings
    
    
    (336
    )
    
    
    (1,192
    )
    
    
    (1,888
    )Net realized capital gains (losses), excluding net OTTI losses recognized in earnings
    
    
    (608
    )
    
    
    316
    
    
    
    (3,875
    )Total net realized capital gains (losses)
    
    
    (944
    )
    
    
    (876
    )
    
    
    (5,763
    )Total revenues
    
    
    5,981
    
    
    
    6,072
    
    
    
    1,686Benefits, losses and expensesBenefits, loss and loss adjustment expenses
    
    
    2,948
    
    
    
    3,716
    
    
    
    4,048Benefits, loss and loss adjustment expenses  returns credited on International
unit-linked bonds and pension products
    
    
    238
    
    
    
    343
    
    
    
    (246
    )Insurance operating costs and other expenses
    
    
    1,610
    
    
    
    1,826
    
    
    
    1,911Amortization of deferred policy acquisition costs and present value of future profits
    
    
    215
    
    
    
    3,716
    
    
    
    1,610Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    184Dividends to policyholders
    
    
    21
    
    
    
    12
    
    
    
    13Total benefits, losses and expenses
    
    
    5,032
    
    
    
    9,613
    
    
    
    7,520Income (loss) from continuing operations before income taxes
    
    
    949
    
    
    
    (3,541
    )
    
    
    (5,834
    )Income tax expense (benefit)
    
    
    228
    
    
    
    (1,399
    )
    
    
    (2,180
    )Income (loss) from continuing operations
    
    
    721
    
    
    
    (2,142
    )
    
    
    (3,654
    )Income (loss) from discontinued operations, net of tax
    
    
    31
    
    
    
    (5
    )
    
    
    (5
    )Net income (loss)
    
    
    752
    
    
    
    (2,147
    )
    
    
    (3,659
    )Net income (loss) attributable to the noncontrolling interest
    
    
    8
    
    
    
    10
    
    
    
    (105
    )Net income (loss) attributable to Hartford Life Insurance Company
    
    $
    744
    
    
    $
    (2,157
    )
    
    $
    (3,554
    )
 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)
    
    2010
    
    
    2009AssetsInvestmentsFixed maturities, available-for-sale, at fair value (amortized cost of $45,323 and $44,284)
(includes variable interest entity assets, at fair value, of $406 as of December 31, 2010)
    
    $
    44,834
    
    
    $
    40,403Fixed maturities, at fair value using the fair value option (includes variable interest entity
assets, at fair value, of $323 as of December 31, 2010)
    
    
    639
    
    
    
    Equity securities, trading, at fair value
(cost of $2,061 and $2,359)
    
    
    2,279
    
    
    
    2,443Equity securities, available for sale, at fair value (cost of $320 and $447)
    
    
    340
    
    
    
    419Policy loans, at outstanding balance
    
    
    2,128
    
    
    
    2,120Mortgage loans (net of allowances for loan losses of $62 and $260)
    
    
    3,244
    
    
    
    4,304Limited partnership and other alternative investments (includes variable interest entity assets of
$14 as of December 31, 2010)
    
    
    838
    
    
    
    759Other investments
    
    
    1,461
    
    
    
    338Short-term investments
    
    
    3,489
    
    
    
    5,128Total investments
    
    
    59,252
    
    
    
    55,914Cash
    
    
    531
    
    
    
    793Premiums receivable and agents balances
    
    
    67
    
    
    
    69Reinsurance recoverables
    
    
    3,924
    
    
    
    3,140Deferred income taxes, net
    
    
    2,138
    
    
    
    3,066Deferred policy acquisition costs and present value of future profits
    
    
    4,949
    
    
    
    5,779Goodwill
    
    
    470
    
    
    
    470Other assets
    
    
    692
    
    
    
    1,709Separate account assets
    
    
    159,729
    
    
    
    150,380Total assets
    
    $
    231,752
    
    
    $
    221,320LiabilitiesReserve for future policy benefits and unpaid losses and loss adjustment expenses
    
    $
    11,385
    
    
    $
    11,318Other policyholder funds and benefits payable
    
    
    43,395
    
    
    
    43,526Other policyholder funds and benefits payable  International unit-liked bonds and pension products
    
    
    2,252
    
    
    
    2,419Consumer notes
    
    
    382
    
    
    
    1,136Other liabilities (includes variable interest entity liabilities of $422 as of December 31, 2010)
    
    
    6,398
    
    
    
    6,245Separate account liabilities
    
    
    159,729
    
    
    
    150,380Total liabilities
    
    
    223,541
    
    
    
    215,024Commitments and contingent liabilities (Note 10)Stockholders EquityCommon stock  1,000 shares authorized, issued and outstanding, par value $5,690
    
    
    6
    
    
    
    6Capital surplus
    
    
    8,265
    
    
    
    8,457Accumulated other comprehensive loss, net of tax
    
    
    (372
    )
    
    
    (1,941
    )Retained earnings (deficit)
    
    
    312
    
    
    
    (287
    )Total stockholders equity
    
    
    8,211
    
    
    
    6,235Noncontrolling interest
    
    
    
    
    
    
    61Total equity
    
    
    8,211
    
    
    
    6,296Total liabilities and stockholders equity
    
    $
    231,752
    
    
    $
    221,320
 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 Equity
 Accumulated Other ComprehensiveIncome (Loss)Net Unrealized
    
    
    Net (Loss)Capital Gains
    
    
    Gain On Cash
    
    
    Foreign(Losses)
    
    
    Flow Hedging
    
    
    Currency
    
    
    
    
    
    
    Total
    
    
    Non-Common
    
    
    Capital
    
    
    On Securities,
    
    
    Instruments,
    
    
    Translation
    
    
    Retained
    
    
    Stockholders
    
    
    Controlling
    
    
    Total(In millions)
    
    Stock
    
    
    Surplus
    
    
    Net of Tax
    
    
    Net of Tax
    
    
    Adjs
    
    
    Earnings (Deficit)
    
    
    Equity
    
    
    Interest
    
    
    Equity2010Balance, December 31, 2009
    
    $
    6
    
    
    $
    8,457
    
    
    $
    (2,039
    )
    
    $
    148
    
    
    $
    (50
    )
    
    $
    (287
    )
    
    $
    6,235
    
    
    $
    61
    
    
    $
    6,296Comprehensive incomeNet income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    744
    
    
    
    744
    
    
    
    
    
    
    
    744Other comprehensive income, net of tax (1)Net change in unrealized capital gains (losses) on securities (2)
    
    
    
    
    
    
    
    
    
    
    1,298
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,298
    
    
    
    
    
    
    
    1,298Net gains on cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    117
    
    
    
    
    
    
    
    
    
    
    
    117
    
    
    
    
    
    
    
    117Cumulative translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18
    )
    
    
    
    
    
    
    (18
    )
    
    
    
    
    
    
    (18
    )Total other comprehensive income
    
    
    
    
    
    
    
    
    
    
    1,298
    
    
    
    117
    
    
    
    (18
    )
    
    
    
    
    
    
    1,397
    
    
    
    
    
    
    
    1,397Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    1,298
    
    
    
    117
    
    
    
    (18
    )
    
    
    744
    
    
    
    2,141
    
    
    
    
    
    
    
    2,141Capital contribution from parent (3)
    
    
    
    
    
    
    (192
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (192
    )
    
    
    
    
    
    
    (192
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    1Cumulative effect of accounting changes, net of tax
    
    
    
    
    
    
    
    
    
    
    172
    
    
    
    
    
    
    
    
    
    
    
    (146
    )
    
    
    26
    
    
    
    
    
    
    
    26Change in noncontrolling interest ownership
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (69
    )
    
    
    (69
    )Noncontrolling income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    8Balance, December 31, 2010
    
    $
    6
    
    
    $
    8,265
    
    
    $
    (569
    )
    
    $
    265
    
    
    $
    (68
    )
    
    $
    312
    
    
    $
    8,211
    
    
    $
    
    
    
    $
    8,2112009Balance, December 31, 2008
    
    $
    6
    
    
    $
    6,157
    
    
    $
    (4,806
    )
    
    $
    440
    
    
    $
    (165
    )
    
    $
    1,446
    
    
    $
    3,078
    
    
    $
    165
    
    
    $
    3,243Comprehensive incomeNet loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,157
    )
    
    
    (2,157
    )
    
    
    
    
    
    
    (2,157
    )Other comprehensive income, net of tax (1)Net change in unrealized capital gains (losses) on securities (2)
    
    
    
    
    
    
    
    
    
    
    3,229
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,229
    
    
    
    
    
    
    
    3,229Net gains on cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (292
    )
    
    
    
    
    
    
    
    
    
    
    (292
    )
    
    
    
    
    
    
    (292
    )Cumulative translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    115
    
    
    
    
    
    
    
    115
    
    
    
    
    
    
    
    115Total other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,052
    
    
    
    
    
    
    
    3,052Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    895
    
    
    
    
    
    
    
    895Capital contribution from parent (3)
    
    
    
    
    
    
    2,300
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,300
    
    
    
    
    
    
    
    2,300Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (38
    )
    
    
    (38
    )
    
    
    
    
    
    
    (38
    )Cumulative effect of accounting changes, net of tax
    
    
    
    
    
    
    
    
    
    
    (462
    )
    
    
    
    
    
    
    
    
    
    
    462
    
    
    
    
    
    
    
    
    
    
    
    Change in noncontrolling interest ownership
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (114
    )
    
    
    (114
    )Noncontrolling income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    10Balance, December 31, 2009
    
    $
    6
    
    
    $
    8,457
    
    
    $
    (2,039
    )
    
    $
    148
    
    
    $
    (50
    )
    
    $
    (287
    )
    
    $
    6,235
    
    
    $
    61
    
    
    $
    6,296
 See
Notes to Consolidated Financial Statements.
  F-5




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES  Consolidated Statements of Changes in Equity (continued)
 Accumulated Other Comprehensive 
Income (Loss)Net Unrealized
    
    
    Net (Loss)Capital Gains
    
    
    Gain On Cash
    
    
    Foreign(Losses)
    
    
    Flow Hedging
    
    
    Currency
    
    
    
    
    
    
    Total
    
    
    Non-Common
    
    
    Capital
    
    
    On Securities,
    
    
    Instruments,
    
    
    Translation
    
    
    Retained
    
    
    Stockholders
    
    
    Controlling
    
    
    TotalStock
    
    
    Surplus
    
    
    Net of Tax
    
    
    Net of Tax
    
    
    Adjs
    
    
    Earnings
    
    
    Equity
    
    
    Interest
    
    
    Equity2008Balance, December 31, 2007
    
    $
    6
    
    
    $
    3,746
    
    
    $
    (318
    )
    
    $
    (137
    )
    
    $
    8
    
    
    $
    5,315
    
    
    $
    8,620
    
    
    $
    255
    
    
    $
    8,875Comprehensive incomeNet loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,554
    )
    
    
    (3,554
    )
    
    
    
    
    
    
    (3,554
    )Other comprehensive income, net of tax (1)net change in unrealized capital gains
(losses) on securities (2)
    
    
    
    
    
    
    
    
    
    
    (4,488
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,488
    )
    
    
    
    
    
    
    (4,488
    )Net loss on cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    577
    
    
    
    
    
    
    
    
    
    
    
    577
    
    
    
    
    
    
    
    577Cumulative translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (173
    )
    
    
    
    
    
    
    (173
    )
    
    
    
    
    
    
    (173
    )Total other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,084
    )
    
    
    
    
    
    
    (4,084
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,638
    )
    
    
    
    
    
    
    (7,638
    )Capital contribution from parent (3)
    
    
    
    
    
    
    2,411
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,411
    
    
    
    
    
    
    
    2,411Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (313
    )
    
    
    (313
    )
    
    
    
    
    
    
    (313
    )Cumulative effect of accounting changes, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Change in noncontrolling interest ownership
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    15Noncontrolling income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (105
    )
    
    
    (105
    )Balance, December 31, 2008
    
    $
    6
    
    
    $
    6,157
    
    
    $
    (4,806
    )
    
    $
    440
    
    
    $
    (165
    )
    
    $
    1,446
    
    
    $
    3,078
    
    
    $
    165
    
    
    $
    3,243
 (1)
    
    Net change in unrealized capital gain on securities is reflected net of tax provision
(benefit) and other items of $(699), $(1,739), and $2,416 for the years ended December 31,
2010, 2009 and 2008, respectively. Net (loss) gain on cash flow hedging instruments is net of
tax provision (benefit) of $(63), $157 and $(310) for the years ended December 31, 2010, 2009
and 2008, 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 $(121), $(1,076), and $(1,396) for the years ended December 31, 2010, 2009 and 2008,
respectively.(3)
    
    The Company received $2.1 billion in capital contributions from its parent and returned
capital of $700 to its parent. The Company received noncash capital contributions of $887 as a
result of valuations associated with the October 1, 2009 reinsurance transaction with an
affiliated captive reinsurer. Refer to Note 16 Transactions with Affiliates. The Company
received a noncash asset capital contribution of $180 from its parent company during 2008.
 See Notes to Consolidated Financial Statements.
  F-6




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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)
    
    2010
    
    
    2009
    
    
    2008Operating ActivitiesNet income(loss)
    
    $
    752
    
    
    $
    (2,147
    )
    
    $
    (3,659
    )Adjustments to reconcile net income(loss) to net cash provided by operating activitiesAmortization of deferred policy acquisition costs and present value of future profits
    
    
    232
    
    
    
    3,727
    
    
    
    1,620Additions to deferred policy acquisition costs and present value of future profits
    
    
    (521
    )
    
    
    (674
    )
    
    
    (1,258
    )Change in:Reserve for future policy benefits, unpaid losses and loss adjustment expenses
    
    
    13
    
    
    
    574
    
    
    
    1,161Reinsurance recoverables
    
    
    26
    
    
    
    66
    
    
    
    (29
    )Receivables and other assets
    
    
    (112
    )
    
    
    (20
    )
    
    
    66Payables and accruals
    
    
    295
    
    
    
    420
    
    
    
    (369
    )Accrued and deferred income taxes
    
    
    (90
    )
    
    
    (797
    )
    
    
    (2,166
    )Net realized capital losses
    
    
    882
    
    
    
    877
    
    
    
    5,763Net receipts from investment contracts related to policyholder funds  International
unit-linked bonds and pension products
    
    
    (167
    )
    
    
    804
    
    
    
    396Net increase
in equity securities, trading
    
    
    164
    
    
    
    (809
    )
    
    
    (386
    )Depreciation and amortization
    
    
    207
    
    
    
    173
    
    
    
    78Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    184Other, net
    
    
    201
    
    
    
    328
    
    
    
    (190
    )Net cash provided by operating activities
    
    $
    1,882
    
    
    $
    2,522
    
    
    $
    1,211Investing ActivitiesProceeds from the sale/maturity/prepayment of:Fixed maturities and short-term investments, available for sale
    
    $
    28,581
    
    
    $
    37,224
    
    
    $
    12,104Fixed maturities, fair value option
    
    
    20
    
    
    
    
    
    
    
    Equity securities, available-for-sale
    
    
    171
    
    
    
    162
    
    
    
    140Mortgage loans
    
    
    1,288
    
    
    
    413
    
    
    
    325Partnerships
    
    
    151
    
    
    
    173
    
    
    
    250Payments for the purchase of:Fixed maturities and short-term investments, available for sale
    
    
    (28,871
    )
    
    
    (35,519
    )
    
    
    (18,216
    )Fixed maturities, fair value option
    
    
    (74
    )
    
    
    
    
    
    
    Equity securities, available-for-sale
    
    
    (122
    )
    
    
    (61
    )
    
    
    (144
    )Mortgage loans
    
    
    (189
    )
    
    
    (197
    )
    
    
    (1,067
    )Partnerships
    
    
    (172
    )
    
    
    (121
    )
    
    
    (330
    )Derivatives payments (sales), net
    
    
    (644
    )
    
    
    (520
    )
    
    
    1,170Proceeds from business sold
    
    
    241
    
    
    
    
    
    
    
    Purchase price of businesses acquired
    
    
    
    
    
    
    
    
    
    
    (78
    )Change in policy loans, net
    
    
    (8
    )
    
    
    34
    
    
    
    (139
    )Change in payables for collateral under securities lending, net
    
    
    (46
    )
    
    
    (1,805
    )
    
    
    (974
    )Change in all other, net
    
    
    (117
    )
    
    
    25
    
    
    
    362Net cash
provided by (used for) investing activities
    
    $
    209
    
    
    $
    (192
    )
    
    $
    (6,597
    )Financing ActivitiesDeposits and other additions to investment and universal life-type contracts
    
    $
    15,405
    
    
    $
    13,398
    
    
    $
    22,449Withdrawals and other deductions from investment and universal life-type contracts
    
    
    (25,030
    )
    
    
    (23,487
    )
    
    
    (28,105
    )Net transfers (to)/from separate accounts related to investment and universal
life-type contracts
    
    
    8,211
    
    
    
    6,805
    
    
    
    7,074Issuance of structured financing
    
    
    
    
    
    
    (189
    )
    
    
    2,001Capital contributions (1) (2)
    
    
    (195
    )
    
    
    1,397
    
    
    
    2,231Dividends paid (1)
    
    
    
    
    
    
    (33
    )
    
    
    (299
    )Net Issuances/(Repayments) at maturity or settlement of consumer notes
    
    
    (754
    )
    
    
    (74
    )
    
    
    401Net cash
provided by (used for) financing activities
    
    $
    (2,363
    )
    
    $
    (2,183
    )
    
    $
    5,752Impact of foreign exchange
    
    
    10
    
    
    
    (15
    )
    
    
    (128
    )Net (decrease) increase in cash
    
    
    (262
    )
    
    
    132
    
    
    
    238Cash  beginning of year
    
    
    793
    
    
    
    661
    
    
    
    423Cash  end of year
    
    $
    531
    
    
    $
    793
    
    
    $
    661Supplemental Disclosure of Cash Flow Information:Net Cash Paid (Received) During the Year for:Income taxes
    
    $
    354
    
    
    $
    (282
    )
    
    $
    (183
    )
 Supplemental schedule of noncash operating and financing activities:
 (1)
    
    The Company made noncash
dividends of $5 in 2009 related to the assumed reinsurance agreements with
Hartford Life Insurance K.K. The Company made noncash dividends of $54 and received a noncash
capital contributions of $180 from its parent company during 2008 related to the assumed
reinsurance agreement with Hartford Life Insurance K.K.(2)
    
    The Company received noncash capital contributions of $887 as a result of valuations
associated with an October 1, 2009 reinsurance transaction with an affiliated captive
reinsurer. Refer to Note 16 Transactions with Affiliates for further discussion of this
transaction.
 See Notes to Consolidated Financial Statements.
  F-7




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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)
 1. Basis of Presentation and Accounting Policies
 Basis of Presentation
   Consolidation
  Use of Estimates
   Reclassifications
   F-8




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 1. Basis of Presentation and Accounting Policies (continued)
 Adoption of New Accounting Standards
 Variable Interest Entities
  Embedded Credit Derivatives
  Future Adoption of New Accounting Standards
 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts
     F-9




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 1. Basis of Presentation and Accounting Policies (continued)
 Significant Accounting Policies
  Accounting Policy
    
    NoteFair Value
    
    
    3Investments and Derivative Instruments
    
    
    4Reinsurance
    
    
    5Deferred Policy Acquisition Costs and Present Value of Future Profits
    
    
    6Goodwill and Other Intangible Assets
    
    
    7Separate Accounts
    
    
    8Sales Inducements
    
    
    9Commitments and Contingencies
    
    
    10Income Taxes
    
    
    11
 Revenue Recognition
  Dividends to Policyholders
   Cash
  Other Policyholder Funds and Benefits Payable
    F-10




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 1. Basis of Presentation and Accounting Policies (continued)
 Reserve for Future Policy Benefits and Unpaid Losses and Loss Adjustment
   Discontinued Operations
  Foreign Currency Translation
  Mutual Funds
    F-11




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 2. Segment Information
  Global Annuity
  Life Insurance
  Retirement Plans
  Mutual Funds
  Other category
     As of December 31,Assets
    
    2010
    
    
    2009Global Annuity
    
    $
    122,962
    
    
    $
    126,326Life Insurance
    
    
    63,390
    
    
    
    54,376Retirement Plans
    
    
    34,153
    
    
    
    28,180Mutual Funds
    
    
    153
    
    
    
    140Other
    
    
    11,094
    
    
    
    12,298Total assets
    
    $
    231,752
    
    
    $
    221,320
  F-12




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 2. Segment Information (continued)
 Revenues by Product Line
    
    For the years ended December 31,Revenues
    
    2010
    
    
    2009
    
    
    2008Earned premiums, fees, and other considerationsGlobal AnnuityIndividual variable annuity
    
    $
    1,760
    
    
    $
    1,589
    
    
    $
    1,981Fixed / MVA and other annuity
    
    
    18
    
    
    
    17
    
    
    
    (2
    )IIP
    
    
    24
    
    
    
    386
    
    
    
    929Total Global Annuity
    
    
    1,802
    
    
    
    1,992
    
    
    
    2,908Life InsuranceVariable life
    
    
    416
    
    
    
    503
    
    
    
    374Universal life
    
    
    367
    
    
    
    362
    
    
    
    376Term life
    
    
    36
    
    
    
    37
    
    
    
    42PPLI
    
    
    174
    
    
    
    115
    
    
    
    119Total Life Insurance
    
    
    993
    
    
    
    1,017
    
    
    
    911Retirement Plans401(k)
    
    
    318
    
    
    
    286
    
    
    
    290Government plans
    
    
    41
    
    
    
    38
    
    
    
    48Total Retirement Plans
    
    
    359
    
    
    
    324
    
    
    
    338Mutual FundsNon-Proprietary
    
    
    519
    
    
    
    437
    
    
    
    553Proprietary
    
    
    61
    
    
    
    
    
    
    
    Total Mutual Funds
    
    
    580
    
    
    
    437
    
    
    
    553Other
    
    
    332
    
    
    
    330
    
    
    
    397Total premiums, fees, and other considerations
    
    
    4,066
    
    
    
    4,100
    
    
    
    5,107Net investment income
    
    
    2,859
    
    
    
    2,848
    
    
    
    2,342Net realized capital losses
    
    
    (944
    )
    
    
    (876
    )
    
    
    (5,763
    )Total Revenues
    
    $
    5,981
    
    
    $
    6,072
    
    
    $
    1,686Net income (loss) attributable to Hartford Life Insurance CompanyGlobal Annuity
    
    $
    231
    
    
    $
    (2,620
    )
    
    $
    (1,866
    )Life Insurance
    
    
    224
    
    
    
    28
    
    
    
    (22
    )Retirement Plans
    
    
    47
    
    
    
    (222
    )
    
    
    (157
    )Mutual Funds
    
    
    129
    
    
    
    32
    
    
    
    37Other
    
    
    113
    
    
    
    625
    
    
    
    (1,546
    )Total net income (loss)
    
    $
    744
    
    
    $
    (2,157
    )
    
    $
    (3,554
    )Net investment income (loss)Global Annuity
    
    $
    1,808
    
    
    $
    1,929
    
    
    $
    1,539Life Insurance
    
    
    485
    
    
    
    317
    
    
    
    313Retirement Plans
    
    
    364
    
    
    
    315
    
    
    
    342Mutual Funds
    
    
    (1
    )
    
    
    (16
    )
    
    
    (12
    )Other
    
    
    203
    
    
    
    303
    
    
    
    160Total net investment income
    
    $
    2,859
    
    
    $
    2,848
    
    
    $
    2,342Amortization of deferred policy acquisition and present value of future profitsGlobal Annuity
    
    $
    15
    
    
    $
    3,297
    
    
    $
    1,268Life Insurance
    
    
    122
    
    
    
    315
    
    
    
    168Retirement Plans
    
    
    27
    
    
    
    56
    
    
    
    91Mutual Funds
    
    
    51
    
    
    
    50
    
    
    
    86Other
    
    
    
    
    
    
    (2
    )
    
    
    (3
    )Total amortization of DAC
    
    $
    215
    
    
    $
    3,716
    
    
    $
    1,610Income tax expense (benefit)Global Annuity
    
    $
    23
    
    
    $
    (1,604
    )
    
    $
    (1,196
    )Life Insurance
    
    
    103
    
    
    
    (27
    )
    
    
    (35
    )Retirement Plans
    
    
    13
    
    
    
    (143
    )
    
    
    (133
    )Mutual Funds
    
    
    51
    
    
    
    20
    
    
    
    22Other
    
    
    38
    
    
    
    355
    
    
    
    (838
    )Total income tax expense (benefit)
    
    $
    228
    
    
    $
    (1,399
    )
    
    $
    (2,180
    )
  F-13




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements
   Level 1
    
    Observable inputs that reflect quoted prices for identical assets
or liabilities in active markets that the Company has the ability
to access at the measurement date. Level 1 securities include
highly liquid U.S. Treasuries, money market funds, and exchange
traded equity and derivative securities.Level 2
    
    Observable inputs, other than quoted prices included in Level 1,
for the asset or liability or prices for similar assets and
liabilities. Most debt securities and some preferred stocks are
model priced by vendors using observable inputs and are classified
within Level 2. Also included in the Level 2 category are exchange
traded equity securities, derivative instruments that are priced
using models with observable market inputs, including interest
rate, foreign currency and certain credit default swap contracts
and have no significant unobservable market inputs.Level 3
    
    Valuations that are derived from techniques in which one or more
of the significant inputs are unobservable (including assumptions
about risk). Level 3 securities include less liquid securities
such as and/or lower quality asset-backed securities (ABS) and
commercial mortgage-backed securities (CMBS), commercial real
estate (CRE) CDOs, residential mortgage-backed securities
(RMBS) primarily below-prime loans, and below investment grade
private placement securities. Also included in Level 3 are
guaranteed product embedded and reinsurance derivatives and other
complex derivatives securities, including customized GMWB hedging
derivatives, equity derivatives, longer dated derivatives, swaps
with optionality, and certain complex credit derivatives and
certain other liabilities. Because Level 3 fair values, by their
nature, contain unobservable inputs as there is little or no
observable market for these assets and liabilities, considerable
judgment is used to determine the Level 3 fair values. Level 3
fair values represent the Companys best estimate of an amount
that could be realized in a current market exchange absent actual
market exchanges.
   F-14




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 December 31, 2010Quoted Pricesin Active
    
    
    Significant
    
    
    SignificantMarkets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsTotal
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets accounted for at fair value on a recurring basisFixed maturities, AFSABS
    
    $
    2,068
    
    
    $
    
    
    
    $
    1,660
    
    
    $
    408CDOs
    
    
    1,899
    
    
    
    
    
    
    
    30
    
    
    
    1,869CMBS
    
    
    5,028
    
    
    
    
    
    
    
    4,536
    
    
    
    492Corporate
    
    
    26,915
    
    
    
    
    
    
    
    25,429
    
    
    
    1,486Foreign government/government agencies
    
    
    1,002
    
    
    
    
    
    
    
    962
    
    
    
    40States, municipalities and political subdivisions (Municipal)
    
    
    1,032
    
    
    
    
    
    
    
    774
    
    
    
    258RMBS
    
    
    4,118
    
    
    
    
    
    
    
    3,013
    
    
    
    1,105U.S. Treasuries
    
    
    2,772
    
    
    
    248
    
    
    
    2,524
    
    
    
    Total fixed maturities
    
    
    44,834
    
    
    
    248
    
    
    
    38,928
    
    
    
    5,658Fixed maturities, FVO
    
    
    639
    
    
    
    
    
    
    
    128
    
    
    
    511Equity securities, trading
    
    
    2,279
    
    
    
    2,279
    
    
    
    
    
    
    
    Equity securities, AFS
    
    
    340
    
    
    
    174
    
    
    
    119
    
    
    
    47Derivative assetsCredit derivatives
    
    
    (11
    )
    
    
    
    
    
    
    (19
    )
    
    
    8Equity derivatives
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    2Foreign exchange derivatives
    
    
    857
    
    
    
    
    
    
    
    857
    
    
    
    Interest rate derivatives
    
    
    (99
    )
    
    
    
    
    
    
    (63
    )
    
    
    (36
    )Variable annuity hedging derivatives and macro hedge program
    
    
    704
    
    
    
    2
    
    
    
    33
    
    
    
    669Total derivative assets [1]
    
    
    1,453
    
    
    
    2
    
    
    
    808
    
    
    
    643Short-term investments
    
    
    3,489
    
    
    
    204
    
    
    
    3,285
    
    
    
    Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and
GMAB
    
    
    2,002
    
    
    
    
    
    
    
    
    
    
    
    2,002Separate account assets [2]
    
    
    153,713
    
    
    
    116,703
    
    
    
    35,763
    
    
    
    1,247Total assets accounted for at fair value on a recurring basis
    
    $
    208,749
    
    
    
    119,610
    
    
    
    79,031
    
    
    
    10,108Liabilities accounted for at fair value on a recurring basisOther policyholder funds and benefits payableGuaranteed living benefits
    
    $
    (4,258
    )
    
    $
    
    
    
    $
    
    
    
    $
    (4,258
    )Equity linked notes
    
    
    (9
    )
    
    
    
    
    
    
    
    
    
    
    (9
    )Total other policyholder funds and benefits payable
    
    
    (4,267
    )
    
    
    
    
    
    
    
    
    
    
    (4,267
    )Derivative liabilitiesCredit derivatives
    
    
    (401
    )
    
    
    
    
    
    
    (49
    )
    
    
    (352
    )Equity derivatives
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    2Foreign exchange derivatives
    
    
    (25
    )
    
    
    
    
    
    
    (25
    )
    
    
    Interest rate derivatives
    
    
    (59
    )
    
    
    
    
    
    
    (42
    )
    
    
    (17
    )Variable annuity hedging derivatives and macro hedge program
    
    
    126
    
    
    
    (2
    )
    
    
    (11
    )
    
    
    139Total derivative liabilities [3]
    
    
    (357
    )
    
    
    (2
    )
    
    
    (127
    )
    
    
    (228
    )Other liabilities
    
    
    (37
    )
    
    
    
    
    
    
    
    
    
    
    (37
    )Consumer notes [4]
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )Total liabilities accounted for at fair value on a recurring basis
    
    $
    (4,666
    )
    
    $
    (2
    )
    
    $
    (127
    )
    
    $
    (4,537
    )
 [1]
    
    Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to pledge collateral
to the Company. At December 31, 2010, $962 was the amount of cash collateral liability that was netted against the derivative asset
value on the Consolidated Balance Sheet, and is excluded from the table above. For further information on derivative liabilities, see
below in this Note 3.[2]
    
    As of December 31, 2010 excludes approximately $6 billion of investment sales receivable that are not subject to fair value accounting.[3]
    
    Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll
forward table included below in this Note, the derivative asset and liability are referred to as freestanding derivatives and are
presented on a net basis.[4]
    
    Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes.
  F-15




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 December 31, 2009Quoted Pricesin Active
    
    
    Significant
    
    
    SignificantMarkets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsTotal
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets accounted for at fair value on a recurring basisFixed maturities, AFSABS
    
    $
    1,903
    
    
    $
    
    
    
    $
    1,406
    
    
    $
    497CDOs
    
    
    2,165
    
    
    
    
    
    
    
    56
    
    
    
    2,109CMBS
    
    
    5,365
    
    
    
    
    
    
    
    5,096
    
    
    
    269Corporate
    
    
    23,667
    
    
    
    
    
    
    
    18,428
    
    
    
    5,239Foreign government/government agencies
    
    
    846
    
    
    
    
    
    
    
    766
    
    
    
    80States, municipalities and political subdivisions (Municipal)
    
    
    780
    
    
    
    
    
    
    
    562
    
    
    
    218RMBS
    
    
    3,336
    
    
    
    
    
    
    
    2,341
    
    
    
    995U.S. Treasuries
    
    
    2,341
    
    
    
    325
    
    
    
    2,016
    
    
    
    Total fixed maturities, AFS
    
    
    40,403
    
    
    
    325
    
    
    
    30,671
    
    
    
    9,407Equity securities, trading
    
    
    2,443
    
    
    
    2,443
    
    
    
    
    
    
    
    Equity securities, AFS
    
    
    419
    
    
    
    113
    
    
    
    274
    
    
    
    32Other investmentsVariable annuity hedging derivatives and macro hedge program
    
    
    212
    
    
    
    8
    
    
    
    16
    
    
    
    188Other derivatives [1]
    
    
    8
    
    
    
    
    
    
    
    (4
    )
    
    
    12Total other investments
    
    
    220
    
    
    
    8
    
    
    
    12
    
    
    
    200Short-term investments
    
    
    5,128
    
    
    
    3,785
    
    
    
    1,343
    
    
    
    Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB
    
    
    1,108
    
    
    
    
    
    
    
    
    
    
    
    1,108Separate account assets [3]
    
    
    147,418
    
    
    
    112,863
    
    
    
    33,593
    
    
    
    962Total assets accounted for at fair value on a recurring basis
    
    $
    197,139
    
    
    $
    119,537
    
    
    $
    65,893
    
    
    $
    11,709Liabilities accounted for at fair value on a recurring basisOther policyholder funds and benefits payableGuaranteed living benefits
    
    $
    (3,439
    )
    
    $
    
    
    
    $
    
    
    
    $
    (3,439
    )Institutional notes
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )Equity linked notes
    
    
    (10
    )
    
    
    
    
    
    
    
    
    
    
    (10
    )Total other policyholder funds and benefits payable
    
    
    (3,451
    )
    
    
    
    
    
    
    
    
    
    
    (3,451
    )Other liabilities [4]Variable annuity hedging derivatives and macro hedge program
    
    
    158
    
    
    
    (2
    )
    
    
    (178
    )
    
    
    338Other derivative liabilities
    
    
    (45
    )
    
    
    
    
    
    
    125
    
    
    
    (170
    )Total other liabilities
    
    
    113
    
    
    
    (2
    )
    
    
    (53
    )
    
    
    168Consumer notes [5]
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )Total liabilities accounted for at fair value on a recurring basis
    
    $
    (3,343
    )
    
    $
    (2
    )
    
    $
    (53
    )
    
    $
    (3,288
    )
 [1]
    
    Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to pledge collateral
to the Company. At December 31, 2009, $104 was the amount of cash collateral liability that was netted against the derivative asset
value on the Consolidated Balance Sheet, and is excluded from the table above. See footnote 3 below for derivative liabilities.[2]
    
    Includes fair value of reinsurance recoverables of approximately $761 related to a transaction entered into on October 1, 2009 with an
affiliated captive reinsurer. Please see Note 16 Transactions with Affiliates for more information.[3]
    
    As of December 31, 2009 excludes approximately $3 billion of investment sales receivable that are not subject to fair value accounting.[4]
    
    Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll
forward table included below in this Note, the derivative asset and liability are referred to as freestanding derivatives and are
presented on a net basis.[5]
    
    Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes.
 Determination of Fair Values
   F-16




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Available-for-Sale Securities, Fixed Maturities, FVO, Equity Securities, Trading, and
Short-term Investments
       F-17




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Derivative Instruments, including embedded derivatives within investments
   Valuation Techniques and Inputs for Investments
    Level 2
    
    The fair values of most of the Companys Level 2 investments are
determined by management after considering prices received from third
party pricing services. These investments include most fixed maturities
and preferred stocks, including those reported in separate account
assets.
 
    
    ABS, CDOs, CMBS and RMBS Primary inputs also include monthly payment
information, collateral performance, which varies by vintage year and includes
delinquency rates, collateral valuation loss severity rates, collateral refinancing
assumptions, credit default swap indices and, for ABS and RMBS, estimated prepayment
rates.
 
    
    Corporates Primary inputs also include observations of credit default swap
curves related to the issuer.
 
    
    Foreign government/government agencies- Primary inputs also include observations
of credit default swap curves related to the issuer and political events in emerging
markets.
 
    
    Municipals Primary inputs also include Municipal Securities Rulemaking Board
reported trades and material event notices, and issuer financial statements.
 
    
    Short-term investments Primary inputs also include material event notices and
new issue money market rates.
 
    
    Equity securities, trading Consist of investments in mutual funds. Primary
inputs include net asset values obtained from third party pricing services.
 
    
    Credit derivatives Significant inputs primarily include the swap yield curve and
credit curves.
 
    
    Foreign exchange derivatives Significant inputs primarily include the swap yield
curve, currency spot and forward rates, and cross currency basis curves.
 
    
    Interest rate derivatives Significant input is primarily the swap yield curve.
  F-18




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Level 3
    
    Most of the Companys securities classified as Level 3 are valued based on brokers
prices. Certain long-dated securities are priced based on third party pricing services,
including municipal securities and foreign government/government agencies, as well as bank
loans and below investment grade private placement securities. Primary inputs for these
long-dated securities are consistent with the typical inputs used in Level 1 and Level 2
measurements noted above, but include benchmark interest rate or credit spread assumptions
that are not observable in the marketplace. Also included in Level 3 are certain derivative
instruments that either have significant unobservable inputs or are valued based on broker
quotations. Significant inputs for these derivative contracts primarily include the typical
inputs used in the Level 1 and Level 2 measurements noted above, but also may include the
following:
 
    
    Credit derivatives Significant unobservable inputs may include credit correlation
and swap yield curve and credit curve extrapolation beyond observable limits.
 
    
    Equity derivatives Significant unobservable inputs may include equity
volatility.
 
    
    Interest rate contracts Significant unobservable inputs may include swap yield
curve extrapolation beyond observable limits and interest rate volatility.
 Product Derivatives
    U.S. GMWB Ceded Reinsurance Derivative
   Adoption of Fair Value Accounting
    F-19




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Separate Account Assets
  Living Benefits Required to be Fair Valued (in Other Policyholder Funds and Benefits Payable)
  Best Estimate Claims Costs
   
    
    risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to
derive forward curve rates;
 
    
    market implied volatility assumptions for each underlying index based primarily on a blend
of observed market implied volatility data;
 
    
    correlations of historical returns across underlying well known market indices based on
actual observed returns over the ten years preceding the valuation date; and
 
    
    three years of history for fund regression.
    F-20




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Credit Standing Adjustment
  Margins
    Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable
Inputs (Level 3)
   F-21




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using
Significant Unobservable Inputs (Level 3) for the twelve months from January 1, 2010 to December
31, 2010
 Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Changes in unrealizedrealized/unrealized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    gains (losses) includedgains (losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in net income related toFair value
    
    
    included in:
    
    
    Purchases,
    
    
    
    
    
    
    
    
    
    
    Fair value
    
    
    financial instrumentsas of
    
    
    Net
    
    
    
    
    
    
    issuances,
    
    
    Transfers
    
    
    Transfers
    
    
    as of
    
    
    still held atJanuary 1,
    
    
    income
    
    
    
    
    
    
    and
    
    
    in to
    
    
    out of
    
    
    December 31,
    
    
    December 31,Asset (Liability)
    
    2010
    
    
    [1]  [2]  [8]
    
    
    OCI [3]
    
    
    Settlements
    
    
    Level 3 [4]
    
    
    Level 3 [4]
    
    
    2010
    
    
    2010 [2]AssetsFixed maturities, AFSABS
    
    $
    497
    
    
    $
    (16
    )
    
    $
    71
    
    
    $
    (59
    )
    
    $
    40
    
    
    $
    (125
    )
    
    $
    408
    
    
    $
    (6
    )CDO
    
    
    2,109
    
    
    
    (124
    )
    
    
    467
    
    
    
    (187
    )
    
    
    42
    
    
    
    (438
    )
    
    
    1,869
    
    
    
    (130
    )CMBS
    
    
    269
    
    
    
    (98
    )
    
    
    327
    
    
    
    (157
    )
    
    
    267
    
    
    
    (116
    )
    
    
    492
    
    
    
    (58
    )Corporate
    
    
    5,239
    
    
    
    (10
    )
    
    
    193
    
    
    
    (66
    )
    
    
    800
    
    
    
    (4,670
    )
    
    
    1,486
    
    
    
    (20
    )Foreign govt./govt. agencies
    
    
    80
    
    
    
    
    
    
    
    1
    
    
    
    (8
    )
    
    
    
    
    
    
    (33
    )
    
    
    40
    
    
    
    Municipal
    
    
    218
    
    
    
    1
    
    
    
    24
    
    
    
    19
    
    
    
    
    
    
    
    (4
    )
    
    
    258
    
    
    
    RMBS
    
    
    995
    
    
    
    (38
    )
    
    
    228
    
    
    
    (129
    )
    
    
    102
    
    
    
    (53
    )
    
    
    1,105
    
    
    
    (35
    )Total fixed maturities, AFS
    
    
    9,407
    
    
    
    (285
    )
    
    
    1,311
    
    
    
    (587
    )
    
    
    1,251
    
    
    
    (5,439
    )
    
    
    5,658
    
    
    
    (249
    )Fixed maturities, FVO
    
    
    
    
    
    
    74
    
    
    
    
    
    
    
    (10
    )
    
    
    447
    
    
    
    
    
    
    
    511
    
    
    
    71Equity securities, AFS
    
    
    32
    
    
    
    (3
    )
    
    
    7
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    47
    
    
    
    (3
    )DerivativesCredit derivatives
    
    
    (161
    )
    
    
    104
    
    
    
    
    
    
    
    3
    
    
    
    (290
    )
    
    
    
    
    
    
    (344
    )
    
    
    103Equity derivatives
    
    
    (2
    )
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    6Interest rate derivatives
    
    
    5
    
    
    
    (3
    )
    
    
    
    
    
    
    (44
    )
    
    
    
    
    
    
    (11
    )
    
    
    (53
    )
    
    
    (23
    )Variable annuity hedging derivatives and macro
hedge program
    
    
    526
    
    
    
    (415
    )
    
    
    
    
    
    
    701
    
    
    
    
    
    
    
    (4
    )
    
    
    808
    
    
    
    (382
    )Total derivatives [5]
    
    
    368
    
    
    
    (308
    )
    
    
    
    
    
    
    660
    
    
    
    (290
    )
    
    
    (15
    )
    
    
    415
    
    
    
    (296
    )Reinsurance recoverable for U.S. GMWB and Japan
GMWB, GMIB, and GMAB [1], [7], [9]
    
    
    1,108
    
    
    
    182
    
    
    
    260
    
    
    
    452
    
    
    
    
    
    
    
    
    
    
    
    2,002
    
    
    
    182Separate
accounts [6]
    
    
    962
    
    
    
    142
    
    
    
    
    
    
    
    314
    
    
    
    14
    
    
    
    (185
    )
    
    
    1,247
    
    
    
    20LiabilitiesOther policyholder funds and benefits payable [1]Guaranteed living benefits [8]
    
    $
    (3,439
    )
    
    $
    (259
    )
    
    $
    (307
    )
    
    $
    (253
    )
    
    $
    
    
    
    $
    
    
    
    $
    (4,258
    )
    
    $
    (259
    )Institutional notes
    
    
    (2
    )
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2Equity linked notes
    
    
    (10
    )
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    (9
    )
    
    
    Total other policyholder funds and benefits
payable [1]
    
    
    (3,451
    )
    
    
    (257
    )
    
    
    (307
    )
    
    
    (252
    )
    
    
    
    
    
    
    
    
    
    
    (4,267
    )
    
    
    (257
    )Other derivative liabilitiesOther liabilities
    
    
    
    
    
    
    (26
    )
    
    
    
    
    
    
    
    
    
    
    (11
    )
    
    
    
    
    
    
    (37
    )
    
    
    Consumer notes
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
 [1]
    
    The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded
derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track
on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.[2]
    
    All amounts in these columns are reported in net realized capital gains (losses) except for less than $1, which is
reported in benefits, losses and loss adjustment expenses. All amounts are before income taxes and amortization of DAC.[3]
    
    All amounts are before income taxes and amortization of DAC.[4]
    
    Transfers in and/or (out) of Level 3 are primarily attributable to the reclassification of investment grade private
placement securities, changes in the availability of market observable information, the re-evaluation of the
observability of pricing inputs and the election of fair value option for investments containing an embedded credit
derivative. Transfers in also include the consolidation of additional VIEs due to the adoption of new accounting
guidance on January 1, 2010.[5]
    
    Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the
Consolidated Balance Sheet in other investments and other liabilities.[6]
    
    The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount
for separate account liabilities, which results in a net zero impact on net income for the Company.[7]
    
    Includes fair value of reinsurance recoverables of approximately $1.7 billion related to a transaction entered into
with an affiliated captive reinsurer. Please see Note 16 Transactions with Affiliates for more information.[8]
    
    Includes both market and non-market impacts in deriving realized and unrealized gains (losses)[9]
    
    During July 2008, the Company reinsured, with a third party, U.S. GMWB risks associated with approximately $7.8 billion
of account value sold between 2003 and 2006. The reinsurance agreement is an 80% quota-share agreement. The third
partys financial strength is rated A+ by A.M. Best, AA- by Standard and Poors and Aa2 by Moodys. The reinsurance
agreement will be accounted for as a freestanding derivative
  F-22




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using
Significant Unobservable Inputs (Level 3) for the twelve months from January 1, 2009 to December
31, 2009
 Changes in unrealizedgains (losses)included in net incomeFair value
    
    
    Total realized/unrealized
    
    
    Purchases,
    
    
    
    
    
    
    Fair value
    
    
    related to financialas of
    
    
    gains (losses) included in:
    
    
    issuances,
    
    
    Transfers in
    
    
    as of
    
    
    instruments still held atJanuary 1,
    
    
    Net income
    
    
    
    
    
    
    and
    
    
    and/or (out)
    
    
    December 31,
    
    
    December 31,Asset (Liability)
    
    2009
    
    
    [1]  [2]  [8]
    
    

OCI [3]
    
    
    settlements
    

    
    of Level 3 [4]
    
    
    2009
    
    
    2009AssetsFixed maturities, AFSABS
    
    $
    429
    
    
    $
    (39
    )
    
    $
    148
    
    
    $
    (21
    )
    
    $
    (20
    )
    
    $
    497
    
    
    $
    (29
    )CDO
    
    
    1,981
    
    
    
    (426
    )
    
    
    720
    
    
    
    (118
    )
    
    
    (48
    )
    
    
    2,109
    
    
    
    (382
    )CMBS
    
    
    263
    
    
    
    (170
    )
    
    
    196
    
    
    
    (53
    )
    
    
    33
    
    
    
    269
    
    
    
    (37
    )Corporate
    
    
    4,421
    
    
    
    (56
    )
    
    
    723
    
    
    
    552
    
    
    
    (401
    )
    
    
    5,239
    
    
    
    (45
    )Foreign govt./govt. agencies
    
    
    74
    
    
    
    
    
    
    
    
    
    
    
    19
    
    
    
    (13
    )
    
    
    80
    
    
    
    Municipal
    
    
    155
    
    
    
    
    
    
    
    4
    
    
    
    29
    
    
    
    30
    
    
    
    218
    
    
    
    RMBS
    
    
    1,419
    
    
    
    (344
    )
    
    
    136
    
    
    
    (174
    )
    
    
    (42
    )
    
    
    995
    
    
    
    (220
    )Total fixed maturities, AFS
    
    
    8,742
    
    
    
    (1,035
    )
    
    
    1,927
    
    
    
    234
    
    
    
    (461
    )
    
    
    9,407
    
    
    
    (713
    )Equity securities, AFS
    
    
    59
    
    
    
    (1
    )
    
    
    8
    
    
    
    (1
    )
    
    
    (33
    )
    
    
    32
    
    
    
    (1
    )Derivatives [5]Variable annuity hedging derivatives and macro hedge program
    
    
    2,774
    
    
    
    (1,643
    )
    
    
    
    
    
    
    (605
    )
    
    
    
    
    
    
    526
    
    
    
    (1,170
    )Other freestanding derivatives
    
    
    (234
    )
    
    
    73
    
    
    
    (4
    )
    
    
    16
    
    
    
    (9
    )
    
    
    (158
    )
    
    
    129Total freestanding derivatives
    
    
    2,540
    
    
    
    (1,570
    )
    
    
    (4
    )
    
    
    (589
    )
    
    
    (9
    )
    
    
    368
    
    
    
    (1,041
    )Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB [1], [7], [9]
    
    
    1,302
    
    
    
    (1,565
    )
    
    
    (51
    )
    
    
    1,422
    
    
    
    
    
    
    
    1,108
    
    
    
    (1,565
    )Separate accounts [6]
    
    
    786
    
    
    
    (65
    )
    
    
    
    
    
    
    344
    
    
    
    (103
    )
    
    
    962
    
    
    
    (38
    )LiabilitiesOther policyholder funds and benefits payable [1]Guaranteed living benefits
    
    $
    (9,206
    )
    
    $
    5,833
    
    
    $
    174
    
    
    $
    (240
    )
    
    $
    
    
    
    $
    (3,439
    )
    
    $
    5,833Institutional notes
    
    
    (41
    )
    
    
    39
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    39Equity linked notes
    
    
    (8
    )
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10
    )
    
    
    (2
    )Total other policyholder funds and benefits payable[1]
    
    
    (9,255
    )
    
    
    5,870
    
    
    
    174
    
    
    
    (240
    )
    
    
    
    
    
    
    (3,451
    )
    
    
    5,870Consumer notes
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
 [1]
    
    The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded
derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track
on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.[2]
    
    All amounts in these columns are reported in net realized capital gains (losses) except for $3, which is reported in
benefits, losses and loss adjustment expenses. All amounts are before income taxes and amortization of DAC.[3]
    
    All amounts are before income taxes and amortization of DAC.[4]
    
    Transfers in and/or (out) of Level 3 are attributable to a change in the availability of market observable information
and re-evaluation of the observability of pricing inputs primarily for certain long-dated corporate bonds and preferred
stocks.[5]
    
    Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the
Consolidated Balance Sheet in other investments and other liabilities.[6]
    
    The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount
for separate account liabilities, which results in a net zero impact on net income for the Company.[7]
    
    Includes fair value of reinsurance recoverables of approximately $761 related to a transaction entered into on October
1, 2009 with an affiliated captive reinsurer. Please see Note 16 Transactions with Affiliates for more information.[8]
    
    Includes both market and non-market impacts in deriving realized and unrealized gains (losses)[9]
    
    During July 2008, the Company reinsured, with a third party, U.S. GMWB risks associated with approximately $7.8 billion
of account value sold between 2003 and 2006. The reinsurance agreement is an 80% quota-share agreement. The third
partys financial strength is rated A+ by A.M. Best, AA- by Standard and Poors and Aa2 by Moodys. The reinsurance
agreement will be accounted for as a freestanding derivative
  F-23




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using
Significant Unobservable Inputs (Level 3) for the twelve months from January 1, 2008 to December
31, 2008
 Changes inunrealizedgains (losses)Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    included in netrealized/unrealized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    income relatedgains (losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    to financialFair value
    
    
    included in:
    
    
    Purchases,
    
    
    Transfers in
    
    
    Fair value
    
    
    instrumentsas of
    
    
    Net
    
    
    
    
    
    
    issuances,
    
    
    and/or
    
    
    as of
    
    
    still held atJanuary 1,
    
    
    income
    
    
    
    
    
    
    and
    
    
    (out) of
    
    
    December 31,
    
    
    December 31,Asset (Liability)
    
    2008
    
    
    (1),(2),(11)
    
    
    OCI(3)
    
    
    settlements
    
    
    Level 3(4)
    
    
    2008
    
    
    2008(2)AssetsFixed maturities
    
    $
    13,558
    
    
    $
    (659
    )
    
    $
    (3,382
    )
    
    $
    526
    
    
    $
    (1,301
    )
    
    $
    8,742
    
    
    $
    (515
    )Equity securities, AFS
    
    
    563
    
    
    
    1
    
    
    
    (27
    )
    
    
    3
    
    
    
    (481
    )
    
    
    59
    
    
    
    (2
    )Freestanding derivatives(4)Variable annuity hedging derivatives and macro hedge program
    
    
    673
    
    
    
    2,096
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    2,774
    
    
    
    1,995Other freestanding derivatives
    
    
    (303
    )
    
    
    (316
    )
    
    
    16
    
    
    
    271
    
    
    
    98
    
    
    
    (234
    )
    
    
    (225
    )Total freestanding derivatives
    
    
    370
    
    
    
    1,780
    
    
    
    16
    
    
    
    276
    
    
    
    98
    
    
    
    2,540
    
    
    
    1,770Reinsurance recoverable(1),(2),(9)
    
    
    238
    
    
    
    962
    
    
    
    
    
    
    
    102
    
    
    
    
    
    
    
    1,302
    
    
    
    962Separate accounts(6)
    
    
    701
    
    
    
    (204
    )
    
    
    
    
    
    
    (26
    )
    
    
    315
    
    
    
    786
    
    
    
    (73
    )Supplemental Asset InformationTotal freestanding derivatives used to hedge U.S. GMWB including those in Levels 1, 2 and 3(10)
    
    
    643
    
    
    
    3,374
    
    
    
    
    
    
    
    (1,353
    )
    
    
    
    
    
    
    2,664
    
    
    
    3,374LiabilitiesOther policyholder funds and benefits payable(2)Guaranteed living benefits
    
    $
    (1,692
    )
    
    $
    (7,019
    )
    
    $
    (248
    )
    
    $
    (247
    )
    
    $
    
    
    
    $
    (9,206
    )
    
    $
    (7,019
    )Institutional notes
    
    
    (24
    )
    
    
    (17
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41
    )
    
    
    (17
    )Equity linked notes
    
    
    (21
    )
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8
    )
    
    
    13Total other policyholder funds and benefits payable accounted for at fair value(2)
    
    
    (1,737
    )
    
    
    (7,023
    )
    
    
    (248
    )
    
    
    (247
    )
    
    
    
    
    
    
    (9,255
    )
    
    
    (7,023
    )Consumer notes
    
    
    (5
    )
    
    
    5
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    (5
    )
    
    
    5Supplemental InformationNet U.S. GMWB (Embedded derivatives, freestanding derivatives including those in Levels 1, 2 and 3 and reinsurance recoverable)(8)
    
    $
    (552
    )
    
    $
    (631
    )
    
    $
    
    
    
    $
    (1,377
    )
    
    $
    
    
    
    $
    (2,560
    )
    
    $
    (631
    )
 [1]
    
    The January 1, 2008 fair value of $238 includes the pre fair value amount of $128 and transitional adjustment of $110.[2]
    
    The Company classifies all the gains and losses on GMWB reinsurance derivatives and GMWB embedded derivatives and
reinsured GMWB, GMIB and GMAB free standing derivatives as unrealized gains/losses for purposes of disclosure in this
table because it is impracticable to track on a contract-by-contract basis the realized gains/losses for these
derivatives and embedded derivatives.[3]
    
    All amounts in these columns are reported in net realized capital gains/losses, except for $6 for the twelve months
ending December 31, 2009, which is reported in benefits, losses and loss adjustment expenses. All amounts are before
income taxes and amortization of DAC.[4]
    
    The freestanding derivatives, excluding reinsurance derivatives instruments, are reported in this table on a net
basis for asset/(liability) positions and reported on the Consolidated Balance Sheet in other investments and other
liabilities.[5]
    
    All amounts are before income taxes and amortization of DAC.[6]
    
    The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal
amount for separate account liabilities which results in a net zero impact on net income for the Company.[7]
    
    Transfers in and/or (out) of Level 3 are attributable to a change in the availability of market observable
information for individual securities within respective categories.[8]
    
    The net loss on U.S. GMWB since January 1, 2008 was primarily related to liability model assumption updates for
mortality in the first quarter and market-based hedge ineffectiveness in the third and fourth quarters due to
extremely volatile capital markets, partially offset by gains in the fourth quarter related to liability model
assumption updates for lapse rates.[9]
    
    During July 2008, the Company reinsured, with a third party, U.S. GMWB risks associated with approximately $7.8
billion of account value sold between 2003 and 2006. The reinsurance agreement is an 80% quota-share agreement. The
third partys financial strength is rated A+ by A.M. Best, AA- by Standard and Poors and Aa2 by Moodys. The
reinsurance agreement will be accounted for as a freestanding derivative.[10]
    
    The Purchases, issuances, and settlements primarily relates to the receipt of cash on futures and option contracts
classified as Level 1 and interest rate, currency and credit default swaps classified as Level 2.[11]
    
    Includes both market and non-market impacts in deriving realized and unrealized gains (losses)
  F-24




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Fair Value Option
    For the year endedDecember 31, 2010AssetsFixed maturities, FVOABS
    
    $
    (5
    )Corporate
    
    
    (7
    )CRE CDOs
    
    
    79Other liabilitiesCredit-linked notes
    
    
    (26
    )Total realized capital gains (losses)
    
    $
    41
  As of December 31, 2010AssetsFixed maturities, FVOABS
    
    $
    64CRE CDOs
    
    
    260Corporate
    
    
    251Foreign government
    
    
    64Total fixed maturities, FVO
    
    $
    639Other liabilitiesCredit-linked notes [1]
    
    $
    37
 [1]
    
    As of December 31, 2010, the outstanding principal balance of the notes was $243. Also not
included in the table above was $250 of derivative instruments in the Companys Consolidated
Balance Sheets.
  F-25




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 3. Fair Value Measurements (continued)
 Financial Instruments Not Carried at Fair Value
  December 31, 2010
    
    
    December 31, 2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueAssetsPolicy loans
    
    $
    2,128
    
    
    $
    2,164
    
    
    $
    2,120
    
    
    $
    2,252Mortgage loans
    
    
    3,244
    
    
    
    3,272
    
    
    
    4,304
    
    
    
    3,645LiabilitiesOther policyholder funds and benefits payable [1]
    
    $
    10,824
    
    
    $
    11,050
    
    
    $
    11,919
    
    
    $
    12,101Consumer notes [2]
    
    
    377
    
    
    
    392
    
    
    
    1,131
    
    
    
    1,194
 [1]
    
    Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance.[2]
    
    Excludes amounts carried at fair value and included in disclosures above.
  
    
    Fair value for policy loans and consumer notes were estimated using discounted cash flow
calculations using current interest rates.
 
    
    Fair values for mortgage loans were estimated using discounted cash flow calculations based
on current lending rates for similar type loans. Current lending rates reflect changes in
credit spreads and the remaining terms of the loans.
 
    
    Other policyholder funds and benefits payable, not carried at fair value, is determined by
estimating future cash flows, discounted at the current market rate.
  F-26




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments
 Significant Investment Accounting Policies
 Overview
  Recognition and Presentation of Other-Than-Temporary Impairments
    F-27




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
   Mortgage Loan Valuation Allowances
   Net Realized Capital Gains and Losses
  Net Investment Income
   F-28




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
  Significant Derivative Instruments Accounting Policies
 Overview
         Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities
   Fair Value Hedges
   F-29




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Cash Flow Hedges
  Net Investment in a Foreign Operation Hedges
  Other Investment and/or Risk Management Activities
  Hedge Documentation and Effectiveness Testing
  Discontinuance of Hedge Accounting
      F-30




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Embedded Derivatives
  Credit Risk
  Net Investment Income (Loss)
 For the years ended December 31,(Before-tax)
    
    2010
    
    
    2009
    
    
    2008Fixed maturities
    
    $
    1,977
    
    
    $
    2,094
    
    
    $
    2,458Equity securities, AFS
    
    
    14
    
    
    
    43
    
    
    
    65Mortgage loans
    
    
    199
    
    
    
    232
    
    
    
    251Policy loans
    
    
    129
    
    
    
    136
    
    
    
    136Limited partnerships and other alternative investments
    
    
    121
    
    
    
    (171
    )
    
    
    (224
    )Other investments
    
    
    253
    
    
    
    242
    
    
    
    (33
    )Investment expenses
    
    
    (72
    )
    
    
    (71
    )
    
    
    (65
    )Total securities AFS and other
    
    
    2,621
    
    
    
    2,505
    
    
    
    2,588Equity securities, trading
    
    
    238
    
    
    
    343
    
    
    
    (246
    )Total net investment income
    
    $
    2,859
    
    
    $
    2,848
    
    
    $
    2,342
   F-31




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Net Realized Capital Losses
 For the years ended December 31,(Before-tax)
    
    2010
    
    
    2009
    
    
    2008Gross gains on sales
    
    $
    486
    
    
    $
    364
    
    
    $
    383Gross losses on sales
    
    
    (336
    )
    
    
    (828
    )
    
    
    (398
    )Net OTTI losses recognized in earnings
    
    
    (336
    )
    
    
    (1,192
    )
    
    
    (1,888
    )Valuation allowances on mortgage loans
    
    
    (108
    )
    
    
    (292
    )
    
    
    (13
    )Japanese fixed annuity contract hedges, net [1]
    
    
    27
    
    
    
    47
    
    
    
    64Periodic net coupon settlements on credit derivatives/Japan
    
    
    (3
    )
    
    
    (33
    )
    
    
    (34
    )Fair value measurement transition impact
    
    
    
    
    
    
    
    
    
    
    (798
    )Results of variable annuity hedge programGMWB derivatives, net
    
    
    113
    
    
    
    1,505
    
    
    
    (687
    )Macro hedge program
    
    
    (584
    )
    
    
    (895
    )
    
    
    74Total results of variable annuity hedge program
    
    
    (471
    )
    
    
    610
    
    
    
    (613
    )GMIB/GMAB/GMWB reinsurance assumed
    
    
    (769
    )
    
    
    1,106
    
    
    
    (1,986
    )Coinsurance and modified coinsurance ceded reinsurance contracts
    
    
    284
    
    
    
    (577
    )
    
    
    Other, net [2]
    
    
    282
    
    
    
    (81
    )
    
    
    (480
    )Net realized capital losses
    
    $
    (944
    )
    
    $
    (876
    )
    
    $
    (5,763
    )
 [1]
    
    Relates to derivative hedging instruments, excluding periodic net
coupon settlements, and is net of the Japanese fixed annuity
product liability adjustment for changes in the dollar/yen
exchange spot rate.[2]
    
    Primarily consists of losses on Japan 3Win related foreign
currency swaps, changes in fair value on non-qualifying
derivatives and fixed maturities, FVO, and other investment gains
and losses.
 Sales of Available-for-Sale Securities
 For the years ended December 31,2010
    
    
    2009
    
    
    2008Fixed maturities, AFSSale proceeds
    
    $
    27,739
    
    
    $
    27,809
    
    
    $
    9,366Gross gains
    
    
    413
    
    
    
    495
    
    
    
    291Gross losses
    
    
    (299
    )
    
    
    (830
    )
    
    
    (472
    )Equity securities, AFSSale proceeds
    
    $
    171
    
    
    $
    162
    
    
    $
    126Gross gains
    
    
    12
    
    
    
    2
    
    
    
    11Gross losses
    
    
    (4
    )
    
    
    (27
    )
    
    
    (21
    )
  Other-Than-Temporary Impairment Losses
  For the years ended December 31,2010
    
    
    2009Balance as of beginning of period
    
    $
    (1,632
    )
    
    $
    Credit impairments remaining in retained earnings related
to adoption of new accounting guidance in April 2009
    
    
    
    
    
    
    (941
    )Additions for credit impairments recognized on [1]:Securities not previously impaired
    
    
    (181
    )
    
    
    (690
    )Securities previously impaired
    
    
    (122
    )
    
    
    (201
    )Reductions for credit impairments previously recognized on:Securities that matured or were sold during the period
    
    
    314
    
    
    
    196Securities that the Company intends to sell or more
likely than not will be required to sell before
recovery
    
    
    
    
    
    
    1Securities due to an increase in expected cash flows
    
    
    23
    
    
    
    3Balance as of end of period
    
    $
    (1,598
    )
    
    $
    (1,632
    )
 [1]
    
    These additions are included in the net OTTI losses recognized in earnings in the
Consolidated Statements of Operations.
  F-32




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Available-for-Sale Securities
  December 31, 2010
    
    
    December 31, 2009Cost or
    
    
    Gross
    
    
    Gross
    
    
    
    
    
    
    Non-
    
    
    Cost or
    
    
    Gross
    
    
    Gross
    
    
    
    
    
    
    Non-Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair
    
    
    Credit
    
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair
    
    
    CreditCost
    
    
    Gains
    
    
    Losses
    
    
    Value
    
    
    OTTI [1]
    
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Value
    
    
    OTTI [1]ABS
    
    $
    2,395
    
    
    $
    29
    
    
    $
    (356
    )
    
    $
    2,068
    
    
    $
    (1
    )
    
    $
    2,344
    
    
    $
    31
    
    
    $
    (472
    )
    
    $
    1,903
    
    
    $
    (26
    )CDOs
    
    
    2,278
    
    
    
    
    
    
    
    (379
    )
    
    
    1,899
    
    
    
    (59
    )
    
    
    3,158
    
    
    
    19
    
    
    
    (1,012
    )
    
    
    2,165
    
    
    
    (123
    )CMBS
    
    
    5,283
    
    
    
    146
    
    
    
    (401
    )
    
    
    5,028
    
    
    
    (15
    )
    
    
    6,844
    
    
    
    76
    
    
    
    (1,555
    )
    
    
    5,365
    
    
    
    (8
    )Corporate [2]
    
    
    25,934
    
    
    
    1,545
    
    
    
    (538
    )
    
    
    26,915
    
    
    
    6
    
    
    
    23,621
    
    
    
    985
    
    
    
    (939
    )
    
    
    23,667
    
    
    
    (11
    )Foreign govt./govt. agencies
    
    
    963
    
    
    
    48
    
    
    
    (9
    )
    
    
    1,002
    
    
    
    
    
    
    
    824
    
    
    
    35
    
    
    
    (13
    )
    
    
    846
    
    
    
    Municipal
    
    
    1,149
    
    
    
    7
    
    
    
    (124
    )
    
    
    1,032
    
    
    
    
    
    
    
    971
    
    
    
    3
    
    
    
    (194
    )
    
    
    780
    
    
    
    RMBS
    
    
    4,450
    
    
    
    79
    
    
    
    (411
    )
    
    
    4,118
    
    
    
    (113
    )
    
    
    3,965
    
    
    
    68
    
    
    
    (697
    )
    
    
    3,336
    
    
    
    (166
    )U.S. Treasuries
    
    
    2,871
    
    
    
    11
    
    
    
    (110
    )
    
    
    2,772
    
    
    
    
    
    
    
    2,557
    
    
    
    5
    
    
    
    (221
    )
    
    
    2,341
    
    
    
    Total fixed maturities, AFS
    
    
    45,323
    
    
    
    1,865
    
    
    
    (2,328
    )
    
    
    44,834
    
    
    
    (182
    )
    
    
    44,284
    
    
    
    1,222
    
    
    
    (5,103
    )
    
    
    40,403
    
    
    
    (334
    )Equity securities, AFS
    
    
    320
    
    
    
    61
    
    
    
    (41
    )
    
    
    340
    
    
    
    
    
    
    
    447
    
    
    
    38
    
    
    
    (66
    )
    
    
    419
    
    
    
    Total AFS securities
    
    $
    45,643
    
    
    $
    1,926
    
    
    $
    (2,369
    )
    
    $
    45,174
    
    
    $
    (182
    )
    
    $
    44,731
    
    
    $
    1,260
    
    
    $
    (5,169
    )
    
    $
    40,822
    
    
    $
    (334
    )
 [1]
    
    Represents the amount of cumulative non-credit OTTI losses recognized
in OCI on securities that also had credit impairments. These losses
are included in gross unrealized losses as of December 31, 2010 and
2009.[2]
    
    Gross unrealized gains (losses) exclude the fair value of bifurcated
embedded derivative features of certain securities. Subsequent
changes in value will be recorded in net realized capital gains
(losses).
  December 31, 2010Maturity
    
    Amortized Cost
    
    
    Fair ValueOne year or less
    
    $
    1,042
    
    
    $
    1,063Over one year through five years
    
    
    10,674
    
    
    
    11,102Over five years through ten years
    
    
    7,674
    
    
    
    8,014Over ten years
    
    
    11,527
    
    
    
    11,542Subtotal
    
    
    30,917
    
    
    
    31,721Mortgage-backed and asset-backed securities
    
    
    14,406
    
    
    
    13,113Total
    
    $
    45,323
    
    
    $
    44,834
  Concentration of Credit Risk
     F-33




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Security Unrealized Loss Aging
  December 31, 2010Less Than 12 Months
    
    
    12 Months or More
    
    
    TotalAmortized
    
    
    Fair
    
    
    Unrealized
    
    
    Amortized
    
    
    Fair
    
    
    Unrealized
    
    
    Amortized
    
    
    Fair
    
    
    UnrealizedCost
    
    
    Value
    
    
    Losses
    
    
    Cost
    
    
    Value
    
    
    Losses
    
    
    Cost
    
    
    Value
    
    
    LossesABS
    
    $
    237
    
    
    $
    226
    
    
    $
    (11
    )
    
    $
    1,226
    
    
    $
    881
    
    
    $
    (345
    )
    
    $
    1,463
    
    
    $
    1,107
    
    
    $
    (356
    )CDOs
    
    
    316
    
    
    
    288
    
    
    
    (28
    )
    
    
    1,934
    
    
    
    1,583
    
    
    
    (351
    )
    
    
    2,250
    
    
    
    1,871
    
    
    
    (379
    )CMBS
    
    
    374
    
    
    
    355
    
    
    
    (19
    )
    
    
    2,532
    
    
    
    2,150
    
    
    
    (382
    )
    
    
    2,906
    
    
    
    2,505
    
    
    
    (401
    )Corporate [1]
    
    
    3,726
    
    
    
    3,591
    
    
    
    (130
    )
    
    
    2,777
    
    
    
    2,348
    
    
    
    (408
    )
    
    
    6,503
    
    
    
    5,939
    
    
    
    (538
    )Foreign govt./govt. agencies
    
    
    250
    
    
    
    246
    
    
    
    (4
    )
    
    
    40
    
    
    
    35
    
    
    
    (5
    )
    
    
    290
    
    
    
    281
    
    
    
    (9
    )Municipal
    
    
    415
    
    
    
    399
    
    
    
    (16
    )
    
    
    575
    
    
    
    467
    
    
    
    (108
    )
    
    
    990
    
    
    
    866
    
    
    
    (124
    )RMBS
    
    
    1,187
    
    
    
    1,155
    
    
    
    (32
    )
    
    
    1,379
    
    
    
    1,000
    
    
    
    (379
    )
    
    
    2,566
    
    
    
    2,155
    
    
    
    (411
    )U.S. Treasuries
    
    
    1,142
    
    
    
    1,073
    
    
    
    (69
    )
    
    
    158
    
    
    
    117
    
    
    
    (41
    )
    
    
    1,300
    
    
    
    1,190
    
    
    
    (110
    )Total fixed maturities
    
    
    7,647
    
    
    
    7,333
    
    
    
    (309
    )
    
    
    10,621
    
    
    
    8,581
    
    
    
    (2,019
    )
    
    
    18,268
    
    
    
    15,914
    
    
    
    (2,328
    )Equity securities
    
    
    18
    
    
    
    17
    
    
    
    (1
    )
    
    
    148
    
    
    
    108
    
    
    
    (40
    )
    
    
    166
    
    
    
    125
    
    
    
    (41
    )Total securities in an unrealized loss
    
    $
    7,665
    
    
    $
    7,350
    
    
    $
    (310
    )
    
    $
    10,769
    
    
    $
    8,689
    
    
    $
    (2,059
    )
    
    $
    18,434
    
    
    $
    16,039
    
    
    $
    (2,369
    )
 [1]
    
    Unrealized losses exclude the fair value of bifurcated embedded derivative features of
certain securities. Subsequent changes in value will be recorded in net realized capital
gains (losses).
 December 31, 2009Less Than 12 Months
    
    
    12 Months or More
    
    
    TotalCost or
    
    
    
    
    
    
    
    
    
    
    Cost or
    
    
    
    
    
    
    
    
    
    
    Cost orAmortized
    
    
    Fair
    
    
    Unrealized
    
    
    Amortized
    
    
    Fair
    
    
    Unrealized
    
    
    Amortized
    
    
    Fair
    
    
    UnrealizedCost
    
    
    Value
    
    
    Losses
    
    
    Cost
    
    
    Value
    
    
    Losses
    
    
    Cost
    
    
    Value
    
    
    LossesABS
    
    $
    278
    
    
    $
    230
    
    
    $
    (48
    )
    
    $
    1,364
    
    
    $
    940
    
    
    $
    (424
    )
    
    $
    1,642
    
    
    $
    1,170
    
    
    $
    (472
    )CDOs
    
    
    990
    
    
    
    845
    
    
    
    (145
    )
    
    
    2,158
    
    
    
    1,291
    
    
    
    (867
    )
    
    
    3,148
    
    
    
    2,136
    
    
    
    (1,012
    )CMBS
    
    
    1,207
    
    
    
    1,016
    
    
    
    (191
    )
    
    
    4,001
    
    
    
    2,637
    
    
    
    (1,364
    )
    
    
    5,208
    
    
    
    3,653
    
    
    
    (1,555
    )Corporate
    
    
    3,434
    
    
    
    3,207
    
    
    
    (227
    )
    
    
    4,403
    
    
    
    3,691
    
    
    
    (712
    )
    
    
    7,837
    
    
    
    6,898
    
    
    
    (939
    )Foreign govt./govt. agencies
    
    
    316
    
    
    
    307
    
    
    
    (9
    )
    
    
    30
    
    
    
    26
    
    
    
    (4
    )
    
    
    346
    
    
    
    333
    
    
    
    (13
    )Municipal
    
    
    119
    
    
    
    113
    
    
    
    (6
    )
    
    
    791
    
    
    
    603
    
    
    
    (188
    )
    
    
    910
    
    
    
    716
    
    
    
    (194
    )RMBS
    
    
    664
    
    
    
    600
    
    
    
    (64
    )
    
    
    1,688
    
    
    
    1,055
    
    
    
    (633
    )
    
    
    2,352
    
    
    
    1,655
    
    
    
    (697
    )U.S. Treasuries
    
    
    1,573
    
    
    
    1,534
    
    
    
    (39
    )
    
    
    628
    
    
    
    446
    
    
    
    (182
    )
    
    
    2,201
    
    
    
    1,980
    
    
    
    (221
    )Total fixed maturities, AFS
    
    
    8,581
    
    
    
    7,852
    
    
    
    (729
    )
    
    
    15,063
    
    
    
    10,689
    
    
    
    (4,374
    )
    
    
    23,644
    
    
    
    18,541
    
    
    
    (5,103
    )Equity securities. AFS
    
    
    65
    
    
    
    49
    
    
    
    (16
    )
    
    
    246
    
    
    
    196
    
    
    
    (50
    )
    
    
    311
    
    
    
    245
    
    
    
    (66
    )Total AFS securities in an
unrealized loss
    
    $
    8,646
    
    
    $
    7,901
    
    
    $
    (745
    )
    
    $
    15,309
    
    
    $
    10,885
    
    
    $
    (4,424
    )
    
    $
    23,955
    
    
    $
    18,786
    
    
    $
    (5,169
    )
    F-34




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Mortgage Loans
 December 31, 2010
    
    
    December 31, 2009Amortized
    
    
    Valuation
    
    
    Carrying
    
    
    Amortized
    
    
    Valuation
    
    
    CarryingCost [1]
    
    
    Allowance
    
    
    Value
    
    
    Cost [1]
    
    
    Allowance
    
    
    ValueCommercial
    
    
    3,306
    
    
    
    (62
    )
    
    
    3,244
    
    
    $
    4,564
    
    
    $
    (260
    )
    
    $
    4,304Total mortgage loans
    
    $
    3,306
    
    
    $
    (62
    )
    
    $
    3,244
    
    
    $
    4,564
    
    
    $
    (260
    )
    
    $
    4,304
 [1]
    
    Amortized cost represents carrying value prior to valuation allowances, if any.
   For the years ended December 31,2010
    
    
    2009
    
    
    2008Balance as of January 1
    
    $
    (260
    )
    
    $
    (13
    )
    
    $
    Additions
    
    
    (108
    )
    
    
    (292
    )
    
    
    (13
    )Deductions
    
    
    306
    
    
    
    45
    
    
    
    Balance as of December 31
    
    $
    (62
    )
    
    $
    (260
    )
    
    $
    (13
    )
    Commercial Mortgage Loans Credit Quality
December 31, 2010
 Avg. Debt-ServiceLoan-to-value
    
    Carrying Value
    
    
    Coverage RatioGreater than 80%
    
    $
    961
    
    
    
    1.67
    x65% - 80%
    
    
    1,366
    
    
    
    2.11
    xLess than 65%
    
    
    917
    
    
    
    2.44
    xTotal commercial mortgage loans
    
    $
    3,244
    
    
    
    2.07
    x
  F-35




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
  Mortgage Loans by Region
 December 31, 2010
    
    
    December 31, 2009Carrying
    
    
    Percent of
    
    
    Carrying
    
    
    Percent ofValue
    
    
    Total
    
    
    Value
    
    
    TotalEast North Central
    
    $
    51
    
    
    
    1.6
    %
    
    $
    76
    
    
    
    1.8
    %Middle Atlantic
    
    
    344
    
    
    
    10.6
    %
    
    
    592
    
    
    
    13.8
    %Mountain
    
    
    49
    
    
    
    1.5
    %
    
    
    51
    
    
    
    1.2
    %New England
    
    
    188
    
    
    
    5.8
    %
    
    
    368
    
    
    
    8.6
    %Pacific
    
    
    898
    
    
    
    27.7
    %
    
    
    1,102
    
    
    
    25.5
    %South Atlantic
    
    
    679
    
    
    
    20.9
    %
    
    
    615
    
    
    
    14.3
    %West North Central
    
    
    19
    
    
    
    0.6
    %
    
    
    22
    
    
    
    0.5
    %West South Central
    
    
    117
    
    
    
    3.6
    %
    
    
    172
    
    
    
    4.0
    %Other [1]
    
    
    899
    
    
    
    27.7
    %
    
    
    1,306
    
    
    
    30.3
    %Total mortgage loans
    
    $
    3,244
    
    
    
    100.0
    %
    
    $
    4,304
    
    
    
    100.0
    %
 [1]
    
    Primarily represents loans collateralized by multiple properties in various regions.
 Mortgage Loans by Property Type
 December 31, 2010
    
    
    December 31, 2009Carrying
    
    
    Percent of
    
    
    Carrying
    
    
    Percent ofValue
    
    
    Total
    
    
    Value
    
    
    TotalCommercialAgricultural
    
    $
    177
    
    
    
    5.5
    %
    
    $
    366
    
    
    
    8.5
    %Industrial
    
    
    833
    
    
    
    25.7
    %
    
    
    784
    
    
    
    18.2
    %Lodging
    
    
    123
    
    
    
    3.8
    %
    
    
    329
    
    
    
    7.6
    %Multifamily
    
    
    479
    
    
    
    14.8
    %
    
    
    582
    
    
    
    13.5
    %Office
    
    
    796
    
    
    
    24.5
    %
    
    
    1,387
    
    
    
    32.3
    %Retail
    
    
    556
    
    
    
    17.1
    %
    
    
    602
    
    
    
    14.0
    %Other
    
    
    280
    
    
    
    8.6
    %
    
    
    254
    
    
    
    5.9
    %Total mortgage loans
    
    $
    3,244
    
    
    
    100.0
    %
    
    $
    4,304
    
    
    
    100.0
    %
 Variable Interest Entities
    F-36




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Consolidated VIEs
  December 31, 2010
    
    
    December 31, 2009Maximum
    
    
    
    
    
    
    
    
    
    
    MaximumTotal
    
    
    Total
    
    
    Exposure
    
    
    Total
    
    
    Total
    
    
    ExposureAssets
    
    
    Liabilities [1]
    
    
    to Loss [2]
    
    
    Assets
    
    
    Liabilities [1]
    
    
    to Loss [2]CDOs [3]
    
    $
    729
    
    
    $
    416
    
    
    $
    265
    
    
    $
    226
    
    
    $
    47
    
    
    $
    181Limited partnerships
    
    
    14
    
    
    
    6
    
    
    
    8
    
    
    
    31
    
    
    
    13
    
    
    
    18Other investments [3]
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    75
    
    
    
    40
    
    
    
    32Total
    
    $
    743
    
    
    $
    422
    
    
    $
    273
    
    
    $
    332
    
    
    $
    100
    
    
    $
    231
 [1]
    
    Included in other liabilities in the Companys Consolidated Balance Sheets.[2]
    
    The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net
investment income or as a realized capital loss and is the cost basis of the Companys investment.[3]
    
    Total assets included in fixed maturities, AFS, and fixed maturities, FVO, in the Companys Consolidated Balance Sheets.
  Non-Consolidated VIEs
  December 31, 2010
    
    
    December 31, 2009Maximum
    
    
    
    
    
    
    
    
    
    
    MaximumExposure
    
    
    
    
    
    
    
    
    
    
    ExposureAssets
    
    
    Liabilities
    
    
    to Loss
    
    
    Assets
    
    
    Liabilities
    
    
    to LossCDOs [1]
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    239
    
    
    $
    
    
    
    $
    248Total
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    239
    
    
    $
    
    
    
    $
    248
 [1]
    
    Maximum exposure to loss represents the Companys investment in securities issued by CDOs
at cost.
   F-37




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Equity Method Investments
  Derivative Instruments
  Cash flow hedges
 Interest rate swaps
   Foreign currency swaps
  Forward rate agreements
  Fair value hedges
 Interest rate swaps
  Foreign currency swaps
   F-38




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Non-qualifying strategies
 Interest rate swaps, caps, floors, and futures
  Foreign currency swaps and forwards
  Japan 3Win foreign currency swaps
  Japanese fixed annuity hedging instruments
  Japanese variable annuity hedging instruments
  Credit derivatives that purchase credit protection
  Credit derivatives that assume credit risk
  Credit derivatives in offsetting positions
  Equity index swaps and options
   F-39




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 GMWB product derivatives
  GMWB reinsurance contracts
  GMWB hedging instruments
   Notional Amount
    
    
    Fair ValueDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Customized swaps
    
    $
    10,113
    
    
    $
    10,838
    
    
    $
    209
    
    
    $
    234Equity swaps, options, and futures
    
    
    4,943
    
    
    
    2,994
    
    
    
    391
    
    
    
    9Interest rate swaps and futures
    
    
    2,800
    
    
    
    1,735
    
    
    
    (133
    )
    
    
    (191
    )Total
    
    $
    17,856
    
    
    $
    15,567
    
    
    $
    467
    
    
    $
    52
 Macro hedge program
   Notional Amount
    
    
    Fair ValueDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Equity options and futures
    
    $
    14,500
    
    
    $
    25,373
    
    
    $
    205
    
    
    $
    296Currency forward contracts
    
    
    3,232
    
    
    
    
    
    
    
    93
    
    
    
    Cross-currency equity options
    
    
    1,000
    
    
    
    
    
    
    
    3
    
    
    
    Long currency options
    
    
    3,075
    
    
    
    1,000
    
    
    
    67
    
    
    
    22Short currency options
    
    
    2,221
    
    
    
    1,075
    
    
    
    (5
    )
    
    
    Total
    
    $
    24,028
    
    
    $
    27,448
    
    
    $
    363
    
    
    $
    318
 GMAB, GMWB and GMIB reinsurance contracts
  Coinsurance and modified coinsurance reinsurance contracts
   F-40




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Derivative Balance Sheet Classification
  Net Derivatives
    
    
    Asset Derivatives
    
    
    Liability DerivativesNotional Amount
    
    
    Fair Value
    
    
    Fair Value
    
    
    Fair ValueDec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,
    
    
    Dec. 31,Hedge Designation/ Derivative Type
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Cash flow hedgesInterest rate swaps
    
    $
    7,652
    
    
    $
    8,729
    
    
    $
    144
    
    
    $
    53
    
    
    $
    182
    
    
    $
    201
    
    
    $
    (38
    )
    
    $
    (148
    )Forward rate agreements
    
    
    
    
    
    
    3,000
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    (18
    )
    
    
    Foreign currency swaps
    
    
    255
    
    
    
    301
    
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    (25
    )Total cash flow hedges
    
    
    7,907
    
    
    
    12,030
    
    
    
    144
    
    
    
    49
    
    
    
    200
    
    
    
    222
    
    
    
    (56
    )
    
    
    (173
    )Fair value hedgesInterest rate swaps
    
    
    1,079
    
    
    
    1,744
    
    
    
    (47
    )
    
    
    (21
    )
    
    
    4
    
    
    
    16
    
    
    
    (51
    )
    
    
    (37
    )Foreign currency swaps
    
    
    677
    
    
    
    696
    
    
    
    (12
    )
    
    
    (9
    )
    
    
    71
    
    
    
    53
    
    
    
    (83
    )
    
    
    (62
    )Total fair value hedges
    
    
    1,756
    
    
    
    2,440
    
    
    
    (59
    )
    
    
    (30
    )
    
    
    75
    
    
    
    69
    
    
    
    (134
    )
    
    
    (99
    )Non-qualifying strategiesInterest rate contractsInterest rate swaps, caps, floors, and futures
    
    
    5,490
    
    
    
    5,511
    
    
    
    (255
    )
    
    
    (79
    )
    
    
    121
    
    
    
    157
    
    
    
    (376
    )
    
    
    (236
    )Foreign exchange contractsForeign currency swaps and forwards
    
    
    196
    
    
    
    227
    
    
    
    (14
    )
    
    
    (11
    )
    
    
    
    
    
    
    
    
    
    
    (14
    )
    
    
    (11
    )Japan 3Win foreign currency swaps
    
    
    2,285
    
    
    
    2,514
    
    
    
    177
    
    
    
    (19
    )
    
    
    177
    
    
    
    35
    
    
    
    
    
    
    
    (54
    )Japanese fixed annuity hedging instruments
    
    
    2,119
    
    
    
    2,271
    
    
    
    608
    
    
    
    316
    
    
    
    608
    
    
    
    319
    
    
    
    
    
    
    
    (3
    )Japanese variable annuity hedging instruments
    
    
    1,720
    
    
    
    257
    
    
    
    73
    
    
    
    (8
    )
    
    
    74
    
    
    
    
    
    
    
    (1
    )
    
    
    (8
    )Credit contractsCredit derivatives that purchase credit protection
    
    
    1,730
    
    
    
    1,887
    
    
    
    (5
    )
    
    
    (34
    )
    
    
    18
    
    
    
    36
    
    
    
    (23
    )
    
    
    (70
    )Credit derivatives that assume credit risk [1]
    
    
    2,035
    
    
    
    902
    
    
    
    (376
    )
    
    
    (176
    )
    
    
    7
    
    
    
    2
    
    
    
    (383
    )
    
    
    (178
    )Credit derivatives in offsetting positions
    
    
    5,175
    
    
    
    3,591
    
    
    
    (57
    )
    
    
    (52
    )
    
    
    60
    
    
    
    114
    
    
    
    (117
    )
    
    
    (166
    )Equity contractsEquity index swaps and options
    
    
    188
    
    
    
    221
    
    
    
    (10
    )
    
    
    (16
    )
    
    
    5
    
    
    
    3
    
    
    
    (15
    )
    
    
    (19
    )Variable annuity hedge programGMWB product derivatives [2]
    
    
    42,278
    
    
    
    46,906
    
    
    
    (1,625
    )
    
    
    (1,991
    )
    
    
    
    
    
    
    
    
    
    
    (1,625
    )
    
    
    (1,991
    )GMWB reinsurance contracts
    
    
    8,767
    
    
    
    10,301
    
    
    
    280
    
    
    
    347
    
    
    
    280
    
    
    
    347
    
    
    
    
    
    
    
    GMWB hedging instruments
    
    
    17,856
    
    
    
    15,567
    
    
    
    467
    
    
    
    52
    
    
    
    647
    
    
    
    264
    
    
    
    (180
    )
    
    
    (212
    )Macro hedge program
    
    
    24,028
    
    
    
    27,448
    
    
    
    363
    
    
    
    318
    
    
    
    372
    
    
    
    558
    
    
    
    (9
    )
    
    
    (240
    )OtherGMAB, GMWB, and GMIB reinsurance contracts
    
    
    21,423
    
    
    
    19,618
    
    
    
    (2,633
    )
    
    
    (1,448
    )
    
    
    
    
    
    
    
    
    
    
    (2,633
    )
    
    
    (1,448
    )Coinsurance and modified coinsurance reinsurance
contracts
    
    
    51,934
    
    
    
    49,545
    
    
    
    1,722
    
    
    
    761
    
    
    
    2,342
    
    
    
    1,226
    
    
    
    (620
    )
    
    
    (465
    )Total non-qualifying strategies
    
    
    187,224
    
    
    
    186,766
    
    
    
    (1,285
    )
    
    
    (2,040
    )
    
    
    4,711
    
    
    
    3,061
    
    
    
    (5,996
    )
    
    
    (5,101
    )Total cash flow hedges, fair value hedges, and
non-qualifying strategies
    
    $
    196,887
    
    
    $
    201,236
    
    
    $
    (1,200
    )
    
    $
    (2,021
    )
    
    $
    4,986
    
    
    $
    3,352
    
    
    $
    (6,186
    )
    
    $
    (5,373
    )Balance Sheet LocationFixed maturities, available-for-sale
    
    $
    441
    
    
    $
    170
    
    
    $
    (26
    )
    
    $
    (8
    )
    
    $
    
    
    
    $
    
    
    
    $
    (26
    )
    
    $
    (8
    )Other investments
    
    
    51,633
    
    
    
    18,049
    
    
    
    1,453
    
    
    
    220
    
    
    
    2,021
    
    
    
    270
    
    
    
    (568
    )
    
    
    (50
    )Other liabilities
    
    
    20,318
    
    
    
    56,524
    
    
    
    (357
    )
    
    
    113
    
    
    
    343
    
    
    
    1,509
    
    
    
    (700
    )
    
    
    (1,396
    )Consumer notes
    
    
    39
    
    
    
    64
    
    
    
    (5
    )
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    (5
    )Reinsurance recoverables
    
    
    58,834
    
    
    
    58,380
    
    
    
    2,002
    
    
    
    1,108
    
    
    
    2,622
    
    
    
    1,573
    
    
    
    (620
    )
    
    
    (465
    )Other policyholder funds and benefits payable
    
    
    65,622
    
    
    
    68,049
    
    
    
    (4,267
    )
    
    
    (3,449
    )
    
    
    
    
    
    
    
    
    
    
    (4,267
    )
    
    
    (3,449
    )Total derivatives
    
    $
    196,887
    
    
    $
    201,236
    
    
    $
    (1,200
    )
    
    $
    (2,021
    )
    
    $
    4,986
    
    
    $
    3,352
    
    
    $
    (6,186
    )
    
    $
    (5,373
    )
 [1]
    
    The derivative instruments related to this strategy are held for other investment purposes.[2]
    
    These derivatives are embedded within liabilities and are not held for risk management purposes.
  F-41




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Change in Notional Amount
  
    
    The GMWB product derivative notional declined $4.6 billion primarily as a result of
policyholder lapses and withdrawals partially offset by an increase in the equity market.
This decrease was partially offset by an increase in notional of the coinsurance and modified
coinsurance reinsurance contracts.
 
    
    The notional amount related to the macro hedge program declined $3.4 billion primarily due
to the expiration of certain equity index options during the first quarter.
 
    
    The Company terminated $3 billion notional of forward rate agreements as a result of the
sale of the hedged variable rate securities. The $3 billion notional was comprised of a
series of one month forward contracts that were hedging the variability of cash flows related
to coupon payments on $250 of variable rate securities for consecutive monthly periods during
2010.
 
    
    The GMAB, GMWB, and GMIB reinsurance contract notional increased $1.8 billion due to the
appreciation of the Japanese yen in comparison to the U.S. dollar.
 
    
    The notional amount related to interest rate swaps that qualify for cash flow hedge
accounting, which are used to convert interest receipts on floating-rate fixed maturity
securities to fixed rates, declined $1.2 billion due to swap maturities.
 
    
    The notional amount related to credit derivatives in offsetting positions increased by $1.6
billion primarily due to purchases and terminations during the year of credit derivatives that
were purchasing credit protection.
 
    
    The notional amount related to credit derivatives that assume credit risk increased by $1.1
billion as a result of the Company adding $509 notional which reference to a standard market
basket of corporate issuers to manage credit spread duration, $274 notional related to the
bifurcation of certain embedded credit derivatives as a result of new accounting guidance, and
$342 related to the consolidation of a VIE as a result of new accounting guidance. For
further discussion of the new accounting guidance on embedded credit derivatives and VIEs
adopted during 2010, see Adoption of New Accounting Standards in Note 1.
 Change in Fair Value
  
    
    The increase in the combined GMWB hedging program, which includes the GMWB product,
reinsurance, and hedging derivatives, was primarily a result of purchases of equity options,
liability model assumption updates during third quarter, lower implied market volatility, and
outperformance of the underlying actively managed funds as compared to their respective
indices, partially offset by a general decrease in long-term interest rates and rising equity
markets.
 
    
    The increase in fair value related to the Japanese fixed annuity hedging instruments and
Japan 3Win foreign currency swaps is primarily due to the U.S. dollar weakening in comparison
to the Japanese yen, partially offset by a decrease in fair value of the Japan 3 Win foreign
currency swaps due to a decrease in long-term U.S. interest rates.
 
    
    Under an internal reinsurance agreement with an affiliate, the increase in fair value
associated with the GMAB, GMWB, and GMIB reinsurance along with a portion of the GMWB related
derivatives are ceded to the affiliated reinsurer and result in an offsetting decrease in fair
value of the coinsurance and modified coinsurance reinsurance contracts.
 
    
    The fair value related to credit derivatives that assume credit risk primarily decreased as
a result of the Company adopting new accounting guidance related to the consolidation of VIEs;
see Adoption of New Accounting Standards in Note 1. As a result of this new guidance, the
Company has consolidated a Company sponsored CDO that included credit default swaps with a
notional amount of $342 and a fair value of $(250) as of December 31, 2010. These swaps
reference a basket of corporate issuers.
  F-42




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Cash Flow Hedges
   Derivatives in Cash Flow Hedging Relationships
 Net Realized Capital Gains (Losses)Gain (Loss) Recognized in OCI
    
    
    Recognized in Incomeon Derivative (Effective Portion)
    
    
    on Derivative (Ineffective Portion)2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Interest rate swaps
    
    $
    232
    
    
    $
    (357
    )
    
    $
    648
    
    
    $
    2
    
    
    $
    1
    
    
    $
    7Foreign currency swaps
    
    
    3
    
    
    
    (177
    )
    
    
    193
    
    
    
    (1
    )
    
    
    75
    
    
    
    1Total
    
    $
    235
    
    
    $
    (534
    )
    
    $
    841
    
    
    $
    1
    
    
    $
    76
    
    
    $
    8
 Derivatives in Cash Flow Hedging Relationships
 Gain (Loss) Reclassified from AOCIinto Income (Effective Portion)2010
    
    
    2009
    
    
    2008Interest rate swaps
    
    Net realized capital gains (losses)
    
    $
    5
    
    
    $
    
    
    
    $
    34Interest rate swaps
    
    Net investment income (loss)
    
    
    56
    
    
    
    28
    
    
    
    (20
    )Foreign currency swaps
    
    Net realized capital gains (losses)
    
    
    (7
    )
    
    
    (115
    )
    
    
    (60
    )Foreign currency swaps
    
    Net investment income (loss)
    
    
    
    
    
    
    2
    
    
    
    1Total
    
    
    
    $
    54
    
    
    $
    (85
    )
    
    $
    (45
    )
    F-43




---



##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Fair Value Hedges
   Derivatives in Fair Value Hedging Relationships
 Gain (Loss) Recognized in Income [1]2010
    
    
    2009
    
    
    2008Hedged
    
    
    
    
    
    
    Hedged
    
    
    
    
    
    
    HedgedDerivative
    
    
    Item
    
    
    Derivative
    
    
    Item
    
    
    Derivative
    
    
    ItemInterest rate swapsNet realized capital gains (losses)
    
    $
    (44
    )
    
    $
    38
    
    
    $
    72
    
    
    $
    (68
    )
    
    $
    (140
    )
    
    $
    132Benefits, losses and loss adjustment expenses
    
    
    (1
    )
    
    
    3
    
    
    
    (37
    )
    
    
    40
    
    
    
    25
    
    
    
    (18
    )Foreign currency swapsNet realized capital gains (losses)
    
    
    8
    
    
    
    (8
    )
    
    
    51
    
    
    
    (51
    )
    
    
    (124
    )
    
    
    124Benefits, losses and loss adjustment expenses
    
    
    (12
    )
    
    
    12
    
    
    
    2
    
    
    
    (2
    )
    
    
    42
    
    
    
    (42
    )Total
    
    $
    (49
    )
    
    $
    45
    
    
    $
    88
    
    
    $
    (81
    )
    
    $
    (197
    )
    
    $
    196
 [1]
    
    The amounts presented do not include the periodic net coupon settlements of the derivative
or the coupon income (expense) related to the hedged item. The net of the amounts presented
represents the ineffective portion of the hedge.
 Non-qualifying Strategies
  Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
 December 31,2010
    
    
    2009
    
    
    2008Interest rate contractsInterest rate swaps, caps, floors, and forwards
    
    $
    14
    
    
    $
    32
    
    
    $
    3Foreign exchange contractsForeign currency swaps and forwards
    
    
    (3
    )
    
    
    (37
    )
    
    
    27Japan 3Win foreign currency swaps [1]
    
    
    215
    
    
    
    (22
    )
    
    
    Japanese fixed annuity hedging instruments [2]
    
    
    385
    
    
    
    (12
    )
    
    
    487Japanese variable annuity hedging instruments
    
    
    102
    
    
    
    (17
    )
    
    
    40Credit contractsCredit derivatives that purchase credit protection
    
    
    (17
    )
    
    
    (379
    )
    
    
    211Credit derivatives that assume credit risk
    
    
    157
    
    
    
    137
    
    
    
    (412
    )Equity contractsEquity index swaps and options
    
    
    5
    
    
    
    (3
    )
    
    
    (23
    )Variable annuity hedge programGMWB product derivatives
    
    
    510
    
    
    
    4,727
    
    
    
    (5,760
    )GMWB reinsurance contracts
    
    
    (102
    )
    
    
    (988
    )
    
    
    1,073GMWB hedging instruments
    
    
    (295
    )
    
    
    (2,234
    )
    
    
    3,374Macro hedge program
    
    
    (584
    )
    
    
    (895
    )
    
    
    74OtherGMAB, GMWB, and GMIB reinsurance contracts
    
    
    (769
    )
    
    
    1,106
    
    
    
    (2,158
    )Coinsurance and modified coinsurance reinsurance contracts
    
    
    284
    
    
    
    (577
    )
    
    
    Total
    
    $
    (98
    )
    
    $
    838
    
    
    $
    (3,064
    )
 [1]
    
    The associated liability is adjusted for changes in spot rates
through realized capital gains and losses and was $(273) and $64
for the years ended December 31, 2010 and 2009, respectively.
There were no Japan 3Win foreign currency swaps as of December 31,
2008.[2]
    
    The associated liability is adjusted for changes in spot rates
through realized capital gains and losses and was $(332), $67, and
$450 for the years ended December 31, 2010, 2009 and 2008,
respectively. In addition, included are gains of $1 for the year
ended December 31, 2010 related to Japan FVO fixed maturity
securities. There were no Japan FVO fixed maturity securities as
of December 31, 2009 and December 31, 2008.
  F-44




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
  
    
    The net loss on derivatives associated with GMAB, GMWB, and GMIB product reinsurance
contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to a
decrease in Japan interest rates, an increase in Japan currency volatility and a decrease in
Japan equity markets.
 
    
    The net loss associated with the macro hedge program is primarily due to a higher equity
market valuation, time decay, and lower implied market volatility, partially offset by gains
due to the strengthening of the Japanese yen.
 
    
    The net gain on the Japanese fixed annuity hedging instruments is primarily due to the
strengthening of the Japanese yen in comparison to the U.S. dollar.
 
    
    The net gain related to the Japan 3 Win foreign currency swaps is primarily due to the
strengthening of the Japanese yen in comparison to the U.S. dollar, partially offset by the
decrease in U.S. long-term interest rates.
 
    
    The net gain on the coinsurance and modified coinsurance reinsurance agreement, which is
accounted for as a derivative instrument, primarily offsets the net loss on GMAB, GMWB, and
GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to
Note 16 Transactions with Affiliates for more information on this transaction.
 
    
    The net gain associated with credit derivatives that assume credit risk is primarily due to
credit spreads tightening.
 
    
    The gain related to the combined GMWB hedging program, which includes the GMWB product,
reinsurance, and hedging derivatives, was primarily a result of liability model assumption
updates during third quarter, lower implied market volatility, and outperformance of the
underlying actively managed funds as compared to their respective indices, partially offset by
a general decrease in long-term interest rates and rising equity markets.
 
    
    The gain on Japan variable annuity hedges was primarily driven by the appreciation of
Japanese yen in comparison to the euro.
  F-45




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
  
    
    The gain related to the net GMWB product, reinsurance, and hedging derivatives was
primarily due to liability model assumption updates given favorable trends in policyholder
experience, the relative outperformance of the underlying actively managed funds as compared
to their respective indices, and the impact of the Companys own credit standing. Additional
net gains on GMWB related derivatives include lower implied market volatility and a general
increase in long-term interest rates, partially offset by rising equity markets. For more
information on the policyholder behavior and liability model assumption updates, refer to
Note 3.
 
    
    The net gain on derivatives associated with GMAB, GMWB, and GMIB product reinsurance
contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to an
increase in interest rates, an increase in the Japan equity markets, a decline in Japan equity
market volatility, and liability model assumption updates for credit standing.
 
    
    The net loss on the macro hedge program was primarily the result of a higher equity market
valuation and the impact of trading activity.
 
    
    The net loss on the coinsurance and modified coinsurance reinsurance agreement, which is
accounted for as a derivative instrument, primarily offsets the net gain on GMAB, GMWB, and
GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to
Note 16 Transactions with Affiliates for more information on this transaction.
  
    
    The loss related to the net GMWB product, reinsurance, and hedging derivatives was
primarily due to liability model assumption updates and market-based hedge ineffectiveness due
to extremely volatile capital markets and the relative underperformance of the underlying
actively managed funds as compared to their respective indices, partially offset by gains in
the fourth quarter related to liability model assumption updates for lapse rates.
 
    
    The net loss on derivatives associated with GMAB, GMWB, and GMIB product reinsurance
contracts was primarily due to a decrease in Japan equity markets, a decrease in Japan
interest rates, an increase in Japan equity market volatility, and the implementation of FAS
157.
   Credit Risk Assumed through Credit Derivatives
   F-46




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
  As of December 31, 2010
 Underlying ReferencedWeighted
    
    
    Credit Obligation(s) [1]Average
    
    
    
    
    
    
    Average
    
    
    OffsettingCredit Derivative type by derivative
    
    Notional
    
    
    Fair
    
    
    Years to
    
    
    
    
    
    
    Credit
    
    
    Notional
    
    
    Offsettingrisk exposure
    
    Amount [2]
    
    
    Value
    
    
    Maturity
    
    
    Type
    
    Rating
    
    
    Amount [3]
    
    
    Fair Value [3]Single name credit default swapsInvestment grade risk exposure
    
    $
    1,038
    
    
    $
    (6
    )
    
    3 years
    
    Corporate Credit/ Foreign Gov.
    
    A+
    
    
    $
    945
    
    
    $
    (36
    )Below investment grade risk exposure
    
    
    151
    
    
    
    (6
    )
    
    3 years
    
    Corporate Credit
    
    BB-
    
    
    135
    
    
    
    (11
    )Basket credit default swaps [4]Investment grade risk exposure
    
    
    2,064
    
    
    
    (7
    )
    
    4 years
    
    Corporate Credit
    
    BBB+
    
    
    1,155
    
    
    
    (7
    )Investment grade risk exposure
    
    
    352
    
    
    
    (32
    )
    
    6 years
    
    CMBS Credit
    
    A-
    
    
    
    352
    
    
    
    32Below investment grade risk exposure
    
    
    667
    
    
    
    (334
    )
    
    4 years
    
    Corporate Credit
    
    BBB+Embedded credit derivativesInvestment grade risk exposure
    
    
    25
    
    
    
    25
    
    
    4 years
    
    Corporate Credit
    
    BBB-
    
    
    
    
    
    
    Below investment grade risk exposure
    
    
    325
    
    
    
    286
    
    
    6 years
    
    Corporate Credit
    
    BB
    
    
    
    
    
    
    Total
    
    $
    4,622
    
    
    $
    (74
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,587
    
    
    $
    (22
    )
 As of December 31, 2009
 Underlying ReferencedWeighted
    
    
    Credit Obligation(s) [1]Average
    
    
    
    
    
    
    Average
    
    
    OffsettingCredit Derivative type by derivative
    
    Notional
    
    
    Fair
    
    
    Years to
    
    
    
    
    
    
    Credit
    
    
    Notional
    
    
    Offsettingrisk exposure
    
    Amount [2]
    
    
    Value
    
    
    Maturity
    
    
    Type
    
    Rating
    
    
    Amount [3]
    
    
    Fair Value [3]Single name credit default swapsInvestment grade risk exposure
    
    $
    755
    
    
    $
    4
    
    
    4 years
    
    Corporate Credit/ Foreign Gov.
    
    AA-
    
    $
    742
    
    
    $
    (43
    )Below investment grade risk exposure
    
    
    114
    
    
    
    (4
    )
    
    4 years
    
    Corporate Credit
    
    B+
    
    
    
    75
    
    
    
    (11
    )Basket credit default swaps [4]Investment grade risk exposure
    
    
    1,276
    
    
    
    (57
    )
    
    4 years
    
    Corporate Credit
    
    BBB+
    
    
    626
    
    
    
    (11
    )Investment grade risk exposure
    
    
    352
    
    
    
    (91
    )
    
    7 years
    
    CMBS Credit
    
    A
    
    
    
    352
    
    
    
    91Below investment grade risk exposure
    
    
    125
    
    
    
    (98
    )
    
    5 years
    
    Corporate Credit
    
    BBB+
    
    
    
    
    
    
    Credit linked notesInvestment grade risk exposure
    
    
    76
    
    
    
    73
    
    
    2 years
    
    Corporate Credit
    
    BBB+
    
    
    
    
    
    
    Total
    
    $
    2,698
    
    
    $
    (173
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,795
    
    
    $
    26
 [1]
    
    The average credit ratings are based on availability and the
midpoint of the applicable ratings among Moodys, S&P, and Fitch.
If no rating is available from a rating agency, then an internally
developed rating is used.[2]
    
    Notional amount is equal to the maximum potential future loss
amount. There is no specific collateral related to these
contracts or recourse provisions included in the contracts to
offset losses.[3]
    
    The Company has entered into offsetting credit default swaps to
terminate certain existing credit default swaps, thereby
offsetting the future changes in value of, or losses paid related
to, the original swap.[4]
    
    Includes $2.6 billion and $1.6 billion as of December 31, 2010 and
2009, respectively, of standard market indices of diversified
portfolios of corporate issuers referenced through credit default
swaps. These swaps are subsequently valued based upon the
observable standard market index. Also includes $467 and $175 as
of December 31, 2010 and 2009, respectively, of customized
diversified portfolios of corporate issuers referenced through
credit default swaps.
  F-47




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 4. Investments and Derivative Instruments (continued)
 Collateral Arrangements
   December 31, 2010
    
    
    December 31, 2009Fixed maturities, AFS
    
    $
    544
    
    
    $
    712Short-term investments
    
    
    
    
    
    
    14Total collateral pledged
    
    $
    544
    
    
    $
    726
  Securities on Deposit with States
   F-48




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 5. Reinsurance
 Accounting Policy
     Results
   For the Years Ended December 31,2010
    
    
    2009
    
    
    2008Gross fee income, earned premiums and other
    
    $
    4,756
    
    
    $
    4,890
    
    
    $
    5,741Reinsurance assumed
    
    
    69
    
    
    
    70
    
    
    
    48Reinsurance ceded
    
    
    (759
    )
    
    
    (860
    )
    
    
    (682
    )Net fee income, earned premiums and other
    
    $
    4,066
    
    
    $
    4,100
    
    
    $
    5,107
  F-49




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 6. Deferred Policy Acquisition Costs and Present Value of Future Profits
 Accounting Policy
          F-50




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 6. Deferred Policy Acquisition Costs and Present Value of Future Profits (continued)
 Results
  2010
    
    
    2009
    
    
    2008Balance, January 1
    
    $
    5,779
    
    
    $
    9,944
    
    
    $
    8,601Deferred costs
    
    
    521
    
    
    
    674
    
    
    
    1,258Amortization  DAC
    
    
    (381
    )
    
    
    (813
    )
    
    
    (499
    )Amortization  Unlock, pre-tax [1]
    
    
    166
    
    
    
    (2,905
    )
    
    
    (1,111
    )Amortization  DAC from Discontinued operations
    
    
    (17
    )
    
    
    (11
    )
    
    
    (10
    )Adjustments to unrealized gains and losses on securities available-for-sale and other[2]
    
    
    (1,120
    )
    
    
    (1,080
    )
    
    
    1,747Effect of currency translation
    
    
    (10
    )
    
    
    24
    
    
    
    (42
    )Cumulative effect of accounting change, pre-tax [3]
    
    
    11
    
    
    
    (54
    )
    
    
    Balance, December 31
    
    $
    4,949
    
    
    $
    5,779
    
    
    $
    9,944
 [1]
    
    The most significant
contributors to the Unlock benefit recorded
during the twelve months ended December 31, 2010 were actual
separate account returns being above our aggregated estimated
return and the impacts of assumption updates.The most significant contributors to the Unlock amount recorded
during the twelve months ended December 31, 2009 were $2.0
billion related to reinsurance of a block of in-force and
prospective U.S. variable annuities and the associated GMDB and
GMWB riders with an affiliated captive reinsurer, as well as
actual separate account returns being significantly below our
aggregated estimated return for the first quarter of 2009,
partially offset by actual returns being greater than our
aggregated estimated return for the period from April 1, 2009 to
December 31, 2009. Also included in the unlock was $(49) related
to DAC recoverability impairment associated with the decision to
suspend sales in the U.K. variable annuity businessThe most significant contributors to the Unlock amount recorded
during the twelve months ended December 31, 2008 were actual
separate account returns significantly below our aggregated
estimated return. Furthermore, the Company reduced its 20 year
projected separate account return assumption from 7.8% to 7.2% in
the U.S. Retirement Plans reduced its estimate of future fees as
plans met contractual size limits (breakpoints), causing a lower
fee schedule to apply, and the Company increased its assumption
for future deposits by existing plan participants[2]
    
    The most significant contributor to the adjustments was the effect
of declining interest rates, resulting in unrealized gains on
securities classified in AOCI. Other includes a $34 decrease as a
result of the disposition of DAC from the sale of the Hartford
Investments Canada Corporation.[3]
    
    For the year ended December 31, 2010 the effect of adopting new
accounting guidance for embedded credit derivatives resulted in a
decrease to retained earnings and, as a result, a DAC benefit. In
addition, an offsetting amount was recorded in unrealized losses
as unrealized losses decreased upon adoption of the new accounting
guidance.For the year ended December 31, 2009 the effect of adopting new
accounting guidance for investments other- than- temporarily
impaired resulted in an increase to retained earnings and, as a
result, a DAC charge. In addition, an offsetting amount was
recorded in unrealized losses as unrealized losses increased upon
adoption of the new accounting guidance.
   F-51




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 7. Goodwill
 Accounting Policy
   Results
  December 31, 2010
    
    
    December 31, 2009Accumulated
    
    
    Carrying
    
    
    
    
    
    
    Accumulated
    
    
    CarryingGross
    
    
    Impairments
    
    
    Value
    
    
    Gross
    
    
    Impairments
    
    
    ValueGlobal Annuity
    
    $
    184
    
    
    $
    (184
    )
    
    $
    
    
    
    $
    184
    
    
    $
    (184
    )
    
    $
    Life Insurance
    
    
    224
    
    
    
    
    
    
    
    224
    
    
    
    224
    
    
    
    
    
    
    
    224Retirement Plans
    
    
    87
    
    
    
    
    
    
    
    87
    
    
    
    87
    
    
    
    
    
    
    
    87Mutual Funds
    
    
    159
    
    
    
    
    
    
    
    159
    
    
    
    159
    
    
    
    
    
    
    
    159Total Goodwill
    
    $
    654
    
    
    $
    (184
    )
    
    $
    470
    
    
    $
    654
    
    
    $
    (184
    )
    
    $
    470
      F-52




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 8. Separate Accounts, Death Benefits and Other Insurance Benefit Features
 Accounting Policy
     Results
  GMDB
    
    
    UL Secondary GuaranteesLiability balance as of January 1, 2010
    
    $
    1,304
    
    
    $
    76Incurred
    
    
    286
    
    
    
    39Paid
    
    
    (350
    )
    
    
    Unlock
    
    
    (125
    )
    
    
    (2
    )Liability balance as of December 31, 2010
    
    $
    1,115
    
    
    $
    113Reinsurance recoverable asset, as of January 1, 2010
    
    $
    802
    
    
    $
    22Incurred
    
    
    125
    
    
    
    8Paid
    
    
    (177
    )
    
    
    Unlock
    
    
    (64
    )
    
    
    Reinsurance recoverable asset, as of December 31, 2010
    
    $
    686
    
    
    $
    30
 GMDB
    
    
    UL Secondary GuaranteesLiability balance as of January 1, 2009
    
    $
    882
    
    
    $
    40Incurred
    
    
    378
    
    
    
    41Unlock
    
    
    547
    
    
    
    (5
    )Paid
    
    
    (503
    )
    
    
    Liability balance as of December 31, 2009
    
    $
    1,304
    
    
    $
    76Reinsurance recoverable asset, as of January 1, 2009
    
    $
    595
    
    
    $
    16Incurred
    
    
    183
    
    
    
    6Paid
    
    
    (255
    )
    
    
    Unlock
    
    
    279
    
    
    
    Reinsurance recoverable asset, as of December 31, 2009
    
    $
    802
    
    
    $
    22
   F-53




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 8. Separate Accounts, Death Benefits and Other Insurance Benefit Features (continued)
  Breakdown of Variable Annuity Account Value by GMDB Type at December 31, 2010
 Retained NetAccount
    
    
    Net Amount
    
    
    Amount
    
    
    Weighted AverageValue
    
    
    at Risk
    
    
    at Risk
    
    
    Attained Age ofMaximum anniversary value (MAV)  [1]
    
    (AV)
    
    

(NAR) [9]
    
    

(RNAR) [9]
    
    
    AnnuitantMAV only
    
    $
    25,546
    
    
    $
    5,526
    
    
    $
    433
    
    
    
    68With 5% rollup [2]
    
    
    1,752
    
    
    
    472
    
    
    
    34
    
    
    
    68With Earnings Protection Benefit Rider (EPB) [3]
    
    
    6,524
    
    
    
    883
    
    
    
    21
    
    
    
    64With 5% rollup & EPB
    
    
    724
    
    
    
    157
    
    
    
    6
    
    
    
    67Total MAV
    
    
    34,546
    
    
    
    7,038
    
    
    
    494Asset Protection Benefit (APB) [4]
    
    
    27,840
    
    
    
    2,703
    
    
    
    525
    
    
    
    65Lifetime Income Benefit (LIB)  Death Benefit [5]
    
    
    1,319
    
    
    
    88
    
    
    
    26
    
    
    
    63Reset [6] (5-7 years)
    
    
    3,699
    
    
    
    243
    
    
    
    126
    
    
    
    68Return of Premium (ROP) [7] /Other
    
    
    23,427
    
    
    
    674
    
    
    
    190
    
    
    
    65Subtotal U.S. GMDB [8]
    
    $
    90,831
    
    
    $
    10,746
    
    
    $
    1,361
    
    
    
    66Less: General Account Value with U.S. GMDB
    
    
    6,865Subtotal Separate Account Liabilities with GMDB
    
    
    83,966Separate Account Liabilities without U.S. GMDB
    
    
    75,776Total Separate Account Liabilities
    
    $
    159,742Japan
GMDB [10], [11]
    
    $
    17,911
    
    
    $
    4,190
    
    
    $
    
    
    
    
    67Japan
GMIB [10], 11]
    
    $
    17,681
    
    
    $
    3,916
    
    
    $
    
    
    
    
    67
 (1)
    
    MAV: the GMDB is the greatest of current AV, net premiums paid and the highest AV on any
anniversary before age 80 (adjusted for withdrawals).(2)
    
    Rollup: the GMDB is the greatest of the MAV, current AV, 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 GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the
contracts growth. The contracts growth is AV less premiums net of withdrawals, subject to
a cap of 200% of premiums net of withdrawals.(4)
    
    APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the
greater of net premiums and MAV (each adjusted for premiums in the past 12 months).(5)
    
    LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a
benefit amount that ratchets over time, generally based on market performance.(6)
    
    Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to
seven year anniversary AV before age 80 (adjusted for withdrawals).(7)
    
    ROP: the GMDB is the greater of current AV and net premiums paid.(8)
    
    AV includes the contract holders investment in the separate account and the general account.(9)
    
    NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced
for reinsurances. NAR and RNAR are highly sensitive to equity market movements and increase
when equity markets decline.(10)
    
    Assumed GMDB includes a ROP and MAV (before age 80) paid in a single lump sum. GMIB is a
guarantee to return initial investment, adjusted for earnings liquidity, paid through a
fixed annuity, after a minimum deferral period of 10, 15 or 20 years. The guaranteed
remaining balance (GRB) related to the Japan GMIB was $20.9 billion and $19.1 billion
as of December 31, 2010 and 2009, respectively. The GRB related to the Japan GMAB and GMWB
was $570.0 and $522.2 as of December 31, 2010 and December 31, 2009. These liabilities are
not included in the Separate Account as they are not legally insulated from the general
account liabilities of the insurance enterprise. As of December 31, 2010, 100% of the AV and
100% of RNAR is reinsured to an affiliate. See Note 16 Transaction with Affiliates for
further discussion.(11)
    
    Policies with a guaranteed living benefit (a GMWB in
the US or a GMIB in Japan) also have a
guaranteed death benefit. The NAR for each benefit is shown, however these benefits are not
additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is
released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR
is released.
   December 31,
    
    
    December 31,Asset type
    
    2010
    
    
    2009Equity securities (including mutual funds)(1)
    
    $
    75,601
    
    
    $
    75,720Cash and cash equivalents
    
    
    8,365
    
    
    
    9,298Total
    
    $
    83,966
    
    
    $
    85,018
 (1)
    
    As of December 31, 2010 and December 31, 2009,
approximately 15% and 16%, respectively, of the equity
securities above were invested in fixed income securities
through these funds and approximately 85% and 84%,
respectively, were invested in equity securities.
  F-54




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 9. Sales Inducements
 Accounting Policy
  Results
  2010
    
    
    2009
    
    
    2008Balance, beginning of period
    
    $
    194
    
    
    $
    533
    
    
    $
    459Sales inducements deferred
    
    
    10
    
    
    
    43
    
    
    
    137Unlock
    
    
    (9
    )
    
    
    (286
    )
    
    
    (43
    )Amortization charged to income
    
    
    2
    
    
    
    (96
    )
    
    
    (20
    )Balance, end of period
    
    $
    197
    
    
    $
    194
    
    
    $
    533
 10. Commitments and Contingencies
 Accounting Policy
  Litigation
     F-55




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 10. Commitments and Contingencies
 Mutual Fund Fees Litigation
 Structured Settlement Class Action Litigation 
 Derivative Commitments
  Lease Commitments
  2011
    
    $
    132012
    
    
    92013
    
    
    62014
    
    
    32015
    
    
    Thereafter
    
    
    Total
    
    $
    31
 Unfunded Commitments
   F-56




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 10. Commitments and Contingencies
 Guaranty Fund and Other Insurance-related Assessments
   11. Income Tax
 Accounting Policy
   Results
  For the years ended December 31,2010
    
    
    2009
    
    
    2008Income Tax Expense (Benefit)Current - U.S. Federal
    
    $
    49
    
    
    $
    300
    
    
    $
    (682
    )- International
    
    
    5
    
    
    
    
    
    
    
    Total Current
    
    
    54
    
    
    
    300
    
    
    
    (682
    )Deferred - U.S. Federal Excluding NOL Carryforward
    
    
    175
    
    
    
    (2,387
    )
    
    
    (779
    )- Net Operating Loss Carryforward
    
    
    (1
    )
    
    
    688
    
    
    
    (719
    )Total Deferred
    
    
    174
    
    
    
    (1,699
    )
    
    
    (1,498
    )Total Income tax expense (benefit)
    
    $
    228
    
    
    $
    (1,399
    )
    
    $
    (2,180
    )
  F-57




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 11. Income Tax (continued)
  Deferred Tax Assets
    
    2010
    
    
    2009Tax basis deferred policy acquisition costs
    
    $
    531
    
    
    $
    596Net unrealized loss on investments
    
    
    
    
    
    
    1,258Investment-related items
    
    
    2,140
    
    
    
    1,637NOL Carryover
    
    
    83
    
    
    
    80Minimum tax credit
    
    
    542
    
    
    
    514Capital Loss Carryforward
    
    
    
    
    
    
    256Foreign tax credit carryovers
    
    
    
    
    
    
    50Depreciable & Amortizable assets
    
    
    48
    
    
    
    59Other
    
    
    1
    
    
    
    35Total Deferred Tax Assets
    
    
    3,345
    
    
    
    4,485Valuation Allowance
    
    
    (139
    )
    
    
    (80
    )Net Deferred Tax Assets
    
    
    3,206
    
    
    
    4,405Deferred Tax LiabilitiesFinancial statement deferred policy acquisition costs and reserves
    
    
    (1,000
    )
    
    
    (1,302
    )Net unrealized loss on investments
    
    
    (5
    )
    
    
    Employee benefits
    
    
    (33
    )
    
    
    (37
    )Other
    
    
    (30
    )
    
    
    Total Deferred Tax Liabilities
    
    
    (1,068
    )
    
    
    (1,339
    )Total Deferred Tax Asset
    
    $
    2,138
    
    
    $
    3,066
        F-58




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 11. Income Tax (continued)
  For the years ended December 31,2010
    
    
    2009
    
    
    2008Tax provision at the U.S. federal statutory rate
    
    
    329
    
    
    $
    (1,243
    )
    
    $
    (2,005
    )Dividends received deduction
    
    
    (145
    )
    
    
    (181
    )
    
    
    (176
    )Penalties
    
    
    
    
    
    
    
    
    
    
    Foreign related investments
    
    
    3
    
    
    
    28
    
    
    
    3Valuation Allowance
    
    
    58
    
    
    
    31
    
    
    
    31Other
    
    
    (17
    )
    
    
    (34
    )
    
    
    (33
    )Total
    
    $
    228
    
    
    $
    (1,399
    )
    
    $
    (2,180
    )
 12. Debt
 Consumer Notes
   13. Statutory Results
   For the years ended December 31,2010
    
    
    2009
    
    
    2008Combined statutory net income (loss)
    
    $
    208
    
    
    $
    1,866
    
    
    $
    (4,512
    )Statutory capital and surplus
    
    $
    5,832
    
    
    $
    5,365
    
    
    $
    4,073
   F-59




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 13. Statutory Results (continued)
  Dividends
    14. Pension Plans, Postretirement, Health Care and Life Insurance Benefit and Savings Plans
 Pension Plans
  Investment and Savings Plan
  15. Stock Compensation Plans
   F-60




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 16. Transactions with Affiliates
 Parent Company Transactions
    Reinsurance Assumed from Affiliates
      F-61




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 16. Transactions with Affiliates (continued)
 Reinsurance Ceded to Affiliates
  
    
    Direct written variable annuities and the associated GMDB and GMWB riders.
 
    
    Variable annuity contract rider benefits written by HLIKK, which are reinsured to HLAI.
 
    
    Annuity contracts and riders written by Union Security Insurance Company, which are
reinsured to HLAI.
 
    
    Variable annuity contract rider benefits written by HLL, which are reinsured to HLAI as of
November 1, 2010
 
    
    Annuitizations of, and certain other settlement options offered under, deferred annuity
contracts.
    2010
    
    
    2009 [1]Fee income and other
    
    $
    
    
    
    $
    84Earned premiums
    
    
    (56
    )
    
    
    (62
    )Net realized gains (losses)
    
    
    546
    
    
    
    (629
    )Total revenues
    
    
    490
    
    
    
    (607
    )Benefits, losses and loss adjustment expenses
    
    
    (40
    )
    
    
    (51
    )Amortization of deferred policy acquisition costs and present value of future profits
    
    
    
    
    
    
    1,883Insurance operating costs and other expenses
    
    
    (348
    )
    
    
    (9
    )Total expenses
    
    
    (388
    )
    
    
    1,823Income (loss) before income taxes
    
    
    878
    
    
    
    (2,430
    )Income tax expense (benefit)
    
    
    308
    
    
    
    (851
    )Net income (loss)
    
    $
    570
    
    
    $
    (1,579
    )
 [1]
    
    At inception of the contract, HLIC recognized in net income the unlock of the unearned
revenue reserve, sales inducement asset and deferred policy acquisition costs related to the
direct U.S. variable annuity business of HLAI as well as the impact of remitting the premiums
and reserves to WRR. 2009 figures illustrate the transactions impact at inception on the
Companys Statement of Operations and the fourth quarter of 2009 activity.
   F-62




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 17. Restructuring, Severance and Other Costs
   Severance benefits
    
    $
    19Asset impairment charges
    
    
    26Other contract termination charges
    
    
    5Total restructuring, severance and other costs for the year ended December 31, 2009
    
    $
    50
  18. Sale of Joint Venture
 Sale of Joint Venture Interest in ICATU Hartford Seguros, S.A.
  19. Discontinued Operations
   For the years ended December 31,2010
    
    
    2009
    
    
    2008RevenuesFee income and other
    
    $
    36
    
    
    $
    29
    
    
    $
    32Net realized capital losses
    
    
    
    
    
    
    (1
    )
    
    
    Total revenues
    
    
    36
    
    
    
    28
    
    
    
    32Benefits, losses and expensesInsurance operating and other expenses
    
    
    28
    
    
    
    24
    
    
    
    29Amortization of deferred policy acquisition costs and present value of future profits
    
    
    17
    
    
    
    11
    
    
    
    10Total benefits, losses and expenses
    
    
    45
    
    
    
    35
    
    
    
    39Loss before income taxes
    
    
    (9
    )
    
    
    (7
    )
    
    
    (7
    )Income tax benefit
    
    
    (3
    )
    
    
    (2
    )
    
    
    (2
    )Loss from operations of discontinued operations, net of tax
    
    
    (6
    )
    
    
    (5
    )
    
    
    (5
    )Net realized capital gain on disposal, net of tax
    
    
    37
    
    
    
    
    
    
    
    Income (loss) from discontinued operations, net of tax
    
    $
    31
    
    
    $
    (5
    )
    
    $
    (5
    )
  F-63




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
 20. Quarterly Results For 2010 and 2009

(Unaudited)
 Three Months EndedMarch 31,
    
    
    June 30,
    
    
    September 30,
    
    
    December 31,2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Total revenues
    
    $
    1,247
    
    
    $
    3,143
    
    
    $
    2,204
    
    
    $
    1,709
    
    
    $
    1,229
    
    
    $
    384
    
    
    $
    1,301
    
    
    $
    836Total benefits, losses and expenses
    
    $
    1,237
    
    
    $
    3,514
    
    
    $
    2,393
    
    
    $
    1,399
    
    
    $
    689
    
    
    $
    1,544
    
    
    $
    713
    
    
    $
    3,156Income (loss) from continuing
operations, net of tax
    
    $
    (7
    )
    
    $
    (200
    )
    
    $
    (84
    )
    
    $
    215
    
    
    $
    379
    
    
    $
    (714
    )
    
    $
    433
    
    
    $
    (1,443
    )Income (loss) from discontinued
operations, net of tax
    
    $
    (1
    )
    
    $
    (8
    )
    
    $
    (1
    )
    
    $
    2
    
    
    $
    (3
    )
    
    $
    4
    
    
    $
    36
    
    
    $
    (3
    )Net income (loss)
    
    $
    (8
    )
    
    $
    (208
    )
    
    $
    (85
    )
    
    $
    217
    
    
    $
    376
    
    
    $
    (710
    )
    
    $
    469
    
    
    $
    (1,446
    )Less: Net income (loss)
attributable to the noncontrolling
interest
    
    $
    1
    
    
    $
    5
    
    
    $
    3
    
    
    $
    1
    
    
    $
    2
    
    
    $
    3
    
    
    $
    2
    
    
    $
    1Net income (loss) attributable to
Hartford Life Insurance Company
    
    $
    (9
    )
    
    $
    (213
    )
    
    $
    (88
    )
    
    $
    216
    
    
    $
    374
    
    
    $
    (713
    )
    
    $
    467
    
    
    $
    (1,447
    )
  F-64




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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, 2010Amount atwhich shown onType of Investment
    
    Cost
    
    
    Fair Value
    
    
    Balance SheetFixed maturitiesBonds and notesU.S. government and government agencies and
authorities (guaranteed and sponsored)
    
    $
    6,074
    
    
    $
    6,040
    
    
    $
    6,040States, municipalities and political subdivisions
    
    
    1,149
    
    
    
    1,032
    
    
    
    1,032Foreign governments
    
    
    963
    
    
    
    1,002
    
    
    
    1,002Public utilities
    
    
    4,661
    
    
    
    4,880
    
    
    
    4,880All other corporate bonds
    
    
    21,273
    
    
    
    22,035
    
    
    
    22,035All other mortgage-backed and asset-backed securities
    
    
    11,203
    
    
    
    9,845
    
    
    
    9,845Total fixed maturities, available-for-sale
    
    
    45,323
    
    
    
    44,834
    
    
    
    44,834Fixed maturities, at fair value using fair value option
    
    
    820
    
    
    
    639
    
    
    
    639Total fixed maturities
    
    
    46,143
    
    
    
    45,473
    
    
    
    45,473Equity securitiesCommon stocksIndustrial, miscellaneous and all other
    
    
    146
    
    
    
    205
    
    
    
    205Non-redeemable preferred stocks
    
    
    174
    
    
    
    135
    
    
    
    135Total equity securities, available-for-sale
    
    
    320
    
    
    
    340
    
    
    
    340Equity securities, trading
    
    
    2,037
    
    
    
    2,279
    
    
    
    2,279Total equity securities
    
    
    2,357
    
    
    
    2,619
    
    
    
    2,619Mortgage loans
    
    
    3,244
    
    
    
    3,272
    
    
    
    3,244Policy loans
    
    
    2,128
    
    
    
    2,164
    
    
    
    2,128Investments in partnerships and trusts
    
    
    838
    
    
    
    838
    
    
    
    838Futures, options and miscellaneous
    
    
    1,069
    
    
    
    1,461
    
    
    
    1,461Short-term investments
    
    
    3,489
    
    
    
    3,489
    
    
    
    3,489Total investments
    
    $
    59,268
    
    
    $
    59,316
    
    
    $
    59,252
  S-1




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 SCHEDULE III
 SUPPLEMENTARY INSURANCE INFORMATION
 (In millions)
 Deferred PolicyAcquisition Costs
    
    
    
    
    
    
    
    
    
    
    Otherand Present
    
    
    Future Policy Benefits,
    
    
    
    
    
    
    PolicyholderValue of Future
    
    
    Unpaid Losses and Loss
    
    
    Unearned
    
    
    Funds andSegment
    
    Profits
    
    
    Adjustment Expenses
    
    
    Premiums
    
    
    Benefits PayableAs of December 31, 2010Global Annuity
    
    $
    1,409
    
    
    $
    9,326
    
    
    $
    80
    
    
    $
    26,353Life Insurance
    
    
    2,655
    
    
    
    999
    
    
    
    14
    
    
    
    8,513Retirement Plans
    
    
    842
    
    
    
    458
    
    
    
    3
    
    
    
    6,841Mutual Funds
    
    
    43
    
    
    
    
    
    
    
    
    
    
    
    4Other
    
    
    
    
    
    
    602
    
    
    
    16
    
    
    
    3,936Consolidated
    
    $
    4,949
    
    
    $
    11,385
    
    
    $
    113
    
    
    $
    45,647As of December 31, 2009Global Annuity
    
    $
    2,057
    
    
    $
    9,474
    
    
    $
    70
    
    
    $
    29,239Life Insurance
    
    
    2,653
    
    
    
    886
    
    
    
    13
    
    
    
    6,190Retirement Plans
    
    
    980
    
    
    
    293
    
    
    
    
    
    
    
    6,156Mutual Funds
    
    
    89
    
    
    
    
    
    
    
    
    
    
    
    6Other
    
    
    
    
    
    
    665
    
    
    
    19
    
    
    
    4,354Consolidated
    
    $
    5,779
    
    
    $
    11,318
    
    
    $
    102
    
    
    $
    45,945
  S-2




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE III
SUPPLEMENTARY INSURANCE INFORMATION (continued)
 Amortization of
    
    
    InsuranceEarned
    
    
    
    
    
    
    Benefits, Losses
    
    
    Deferred Policy
    
    
    OperatingPremiums, Fee
    
    
    Net
    
    
    and Loss
    
    
    Acquisition Costs
    
    
    Costs andIncome and
    
    
    Investment
    
    
    Adjustment
    
    
    and Present Value
    
    
    Other
    
    
    Net WrittenSegment
    
    Other
    
    
    Income
    
    
    Expenses
    
    
    of Future Profits
    
    
    Expenses [1]
    
    
    PremiumsFor the year ended
December 31, 2010Global Annuity
    
    $
    1,802
    
    
    $
    1,808
    
    
    $
    2,056
    
    
    $
    15
    
    
    $
    323
    
    
    
    N/ALife Insurance
    
    
    993
    
    
    
    485
    
    
    
    796
    
    
    
    122
    
    
    
    249
    
    
    
    N/ARetirement Plans
    
    
    359
    
    
    
    364
    
    
    
    278
    
    
    
    27
    
    
    
    340
    
    
    
    N/AMutual Funds
    
    
    580
    
    
    
    (1
    )
    
    
    
    
    
    
    51
    
    
    
    385
    
    
    
    N/AOther
    
    
    332
    
    
    
    203
    
    
    
    56
    
    
    
    
    
    
    
    334
    
    
    
    Consolidated
    
    $
    4,066
    
    
    $
    2,859
    
    
    $
    3,186
    
    
    $
    215
    
    
    $
    1,631
    
    
    
    N/AFor the year ended
December 31, 2009Global Annuity
    
    $
    1,992
    
    
    $
    1,929
    
    
    $
    2,964
    
    
    $
    3,297
    
    
    $
    640
    
    
    
    N/ALife Insurance
    
    
    1,017
    
    
    
    317
    
    
    
    659
    
    
    
    315
    
    
    
    211
    
    
    
    N/ARetirement Plans
    
    
    324
    
    
    
    315
    
    
    
    269
    
    
    
    56
    
    
    
    346
    
    
    
    N/AMutual Funds
    
    
    437
    
    
    
    (16
    )
    
    
    
    
    
    
    50
    
    
    
    315
    
    
    
    N/AOther
    
    
    330
    
    
    
    303
    
    
    
    167
    
    
    
    (2
    )
    
    
    326
    
    
    
    N/AConsolidated
    
    $
    4,100
    
    
    $
    2,848
    
    
    $
    4,059
    
    
    $
    3,716
    
    
    $
    1,838
    
    
    
    N/AFor the year ended
December 31, 2008Global Annuity
    
    $
    2,908
    
    
    $
    1,539
    
    
    $
    2,600
    
    
    $
    1,268
    
    
    $
    897
    
    
    
    N/ALife Insurance
    
    
    911
    
    
    
    313
    
    
    
    633
    
    
    
    168
    
    
    
    228
    
    
    
    N/ARetirement Plans
    
    
    338
    
    
    
    342
    
    
    
    271
    
    
    
    91
    
    
    
    336
    
    
    
    N/AMutual Funds
    
    
    553
    
    
    
    (12
    )
    
    
    
    
    
    
    86
    
    
    
    390
    
    
    
    N/AOther
    
    
    397
    
    
    
    160
    
    
    
    298
    
    
    
    (3
    )
    
    
    257
    
    
    
    N/AConsolidated
    
    $
    5,107
    
    
    $
    2,342
    
    
    $
    3,802
    
    
    $
    1,610
    
    
    $
    2,108
    
    
    
    N/A
 [1]
    
    Includes dividends and goodwill impairment.N/A
    
     Not applicable to life insurance pursuant to Regulation S-X.
  S-3




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 SCHEDULE IV
 REINSURANCE
 (In millions)
 Assumed
    
    
    
    
    
    
    Percentage ofCeded to
    
    
    From
    
    
    
    
    
    
    AmountGross
    
    
    Other
    
    
    Other
    
    
    Net
    
    
    AssumedAmount
    
    
    Companies
    
    
    Companies
    
    
    Amount
    
    
    to NetFor the year ended December 31, 2010Life insurance in force
    
    $
    359,644
    
    
    $
    150,446
    
    
    $
    2,027
    
    
    $
    211,225
    
    
    
    1
    %Insurance RevenuesLife insurance and annuities
    
    $
    4,440
    
    
    $
    546
    
    
    $
    69
    
    
    $
    3,963
    
    
    
    2
    %Accident and health insurance
    
    
    316
    
    
    
    213
    
    
    
    
    
    
    
    103
    
    
    
    Total insurance Revenues
    
    $
    4,756
    
    
    $
    759
    
    
    $
    69
    
    
    $
    4,066
    
    
    
    2
    %For the year ended December 31, 2009Life insurance in force
    
    $
    356,432
    
    
    $
    145,639
    
    
    $
    2,157
    
    
    $
    212,950
    
    
    
    1
    %Insurance RevenuesLife insurance and annuities
    
    $
    4,552
    
    
    $
    628
    
    
    $
    70
    
    
    $
    3,994
    
    
    
    2
    %Accident and health insurance
    
    
    338
    
    
    
    232
    
    
    
    
    
    
    
    106
    
    
    
    Total insurance Revenues
    
    $
    4,890
    
    
    $
    860
    
    
    $
    70
    
    
    $
    4,100
    
    
    
    2
    %For the year ended December 31, 2008Life insurance in force
    
    $
    353,030
    
    
    $
    142,912
    
    
    $
    2,264
    
    
    $
    212,382
    
    
    
    1
    %Insurance RevenuesLife insurance and annuities
    
    $
    5,436
    
    
    $
    446
    
    
    $
    48
    
    
    $
    5,038
    
    
    
    1
    %Accident and health insurance
    
    
    305
    
    
    
    236
    
    
    
    
    
    
    
    69
    
    
    
    Total insurance Revenues
    
    $
    5,741
    
    
    $
    682
    
    
    $
    48
    
    
    $
    5,107
    
    
    
    1
    %
  S-4




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
 
 SCHEDULE V
 VALUATION AND QUALIFYING ACCOUNTS
 (In millions)
 Charged to
    
    
    
    
    
    
    Write-offs/Balance
    
    
    Costs and
    
    
    Translation
    
    
    Payments/
    
    
    BalanceJanuary 1,
    
    
    Expenses
    
    
    Adjustment
    
    
    Other
    
    
    December 31,2010Valuation allowance on deferred tax asset
    
    $
    80
    
    
    $
    59
    
    
    $
    
    
    
    $
    
    
    
    $
    139Valuation allowance on mortgage loans
    
    
    260
    
    
    
    108
    
    
    
    
    
    
    
    (306
    )
    
    
    622009Valuation allowance on deferred tax asset
    
    $
    49
    
    
    $
    31
    
    
    $
    
    
    
    $
    
    
    
    $
    80Valuation allowance on mortgage loans
    
    
    13
    
    
    
    292
    
    
    
    
    
    
    
    (45
    )
    
    
    2602008Valuation allowance on deferred tax asset
    
    $
    19
    
    
    $
    30
    
    
    $
    
    
    
    $
    
    
    
    $
    49Valuation allowance on mortgage loans
    
    
    
    
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    13
  S-5




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##### Table of Contents



SIGNATURES
  HARTFORD LIFE INSURANCE COMPANY/s/      Beth A. BombaraBeth A. BombaraChief Accounting Officer   Signature
    
    Title
    
    Date/s/ David N. Levenson

David N. Levenson
    
    Chairman, President, Chief Executive Officer
    
    February 25, 2011/s/ Glenn D. Lammey

Glenn D. Lammey
    
    Executive Vice President, Chief Financial
Officer and Director
    
    February 25, 2011/s/ Beth A. Bombara

Beth A. Bombara
    
    Chief Accounting Officer
    
    February 25, 2011/s/ Gregory McGreevey

Gregory McGreevey
    
    Director
    
    February 25, 2011
  II-1




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##### Table of Contents



HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
 FORM 10-K
 
 EXHIBITS INDEX
 The exhibits attached to this Form 10-K are those that are required by Item 601 of Regulation S-K,
except where such exhibit may be omitted pursuant to General Instruction I(2)(b).
 Exhibit No.
    
    Description3.01
    
    
    Restated Certificate of Incorporation of Hartford Life Insurance Company (incorporated by
reference to Exhibit 3.01 of Hartford Life Insurance Companys Form 10-K for the year ended
December 31, 2008).3.02
    
    
    By-Laws of Hartford Life Insurance Company (incorporated by reference to Exhibit 3.02 to
Hartford Life Insurance Companys Form 10-K filed for the year ended December 31, 2008).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
    
    
    Intercompany Liquidity Agreement between The Hartford Financial Services Group, Inc., Hartford
Life and Accident Insurance Company and certain affiliates, including Hartford Life
Insurance Company, effective December 31, 2010 (incorporated by reference to Exhibit 10.1 of
Hartford Life Insurance Companys Current Report on Form 8-K, filed on January 5, 2011).12.01
    
    
    Computation of Ratio of Earnings to Fixed Charges is filed herewith.23.01
    
    
    Consent of Deloitte & Touche, LLP, filed herewith.31.01
    
    
    Certification of David N. Levenson, pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.02
    
    
    Certification of Glenn D. Lammey, pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.01
    
    
    Certification of David N. Levenson, pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.01
    
    
    Certification of Glenn D. Lammey, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  II-2