Net investment income decreased for the year ended December 31, 2014 as compared to the prior year due to lower income from fixed maturities, partially offset by an increase in income from limited partnerships. For further discussion, see MD&A - Investments Results, Net Investment Income (Loss).
Other, net gain for the year ended December 31, 2013 was partially related to gains of $71 on interest derivatives largely associated with fixed rate bonds sold as part of the Individual Life and Retirement Plans business dispositions. For further information on the business dispositions, see Note 2 - Business Dispositions of Notes to the Consolidated Financial Statements. Additional gains included $295 for the year ended December 31, 2013 related to transactional foreign currency re-valuation primarily associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, due to depreciation of the Japanese yen versus the U.S. dollar.
The Company’s risk management function is part of The Hartford’s overall risk management program. The Hartford maintains an enterprise risk management function (“ERM”) that is charged with providing analysis of The Hartford’s risks on an individual and aggregated basis and with ensuring that The Hartford’s risks remain within its risk appetite and tolerances. The Hartford has established the Enterprise Risk and Capital Committee (“ERCC”) that includes The Hartford's CEO, President, Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, General Counsel and others as deemed necessary by the committee chair. The ERCC is responsible for managing The Hartford’s risks and overseeing the enterprise risk management program.
The Company’s investment contracts and certain insurance product liabilities, other than non-guaranteed separate accounts, include asset accumulation vehicles such as fixed annuities and guaranteed investment contracts.
In addition to the credit impairments recognized in earnings, the Company recognized non-credit impairments in other comprehensive income of $2 for the year ended December 31, 2014, predominantly concentrated in CMBS and corporate securities. These non-credit impairments represent the difference between fair value and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to impairment, rather than at current market implied credit spreads. These non-credit impairments primarily represent increases in market liquidity premiums and credit spread widening that occurred after the securities were purchased, as well as a discount for variable-rate coupons which are paying less than at purchase date. In general, larger liquidity premiums and wider credit spreads are the result of deterioration of the underlying collateral performance of the securities, as well as the risk premium required to reflect future uncertainty in the real estate market.
Until April 1, 2014, HLAI, a wholly-owned subsidiary of the Company, ceded certain variable annuity contracts and their associated riders as well as certain payout annuities issued by HLAI or assumed by it to White River Life Reinsurance Company ("WRR"), an affiliate captive reinsurer which was dissolved on April 30, 2014. Upon dissolution, WRR repaid an intercompany note payable to The Hartford in the amount of $655 and returned $345 in capital to The Hartford, all of which was contributed as capital to HLAI to support the recaptured risks. Effective April 1, 2014, the Company recaptured all reinsured risks from WRR to HLAI. For further information regarding the WRR reinsurance agreement, see Note 12 - Transactions with Affiliates of Notes to Consolidated Financial Statements.
Year ended December 31, 2014 compared to Year-ended December 31, 2013