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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
(MARK ONE)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995
/ / 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 2-89516
HARTFORD LIFE INSURANCE COMPANY
06-0974148
Incorporated in (I.R.S. Employer
the State of Connecticut Identification No.)
P.O. BOX 2999, HARTFORD, CONNECTICUT 06104-2999
(Principal Executive Offices)
TELEPHONE NUMBER 203-843-3492
Indicate by check mark whether the registrant (1) has filed all reports to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days. Yes __X__ No_____.
As of May 12, 1995 there were outstanding 1,000 shares of common stock,
$5,690 par value per share, of the registrant, all of which were directly owned
by Hartford Life and Accident Insurance Company.
The registrant meets the conditions set forth in General Instruction H (1)
(a) and (b) of Form 10-Q and is therefore filing this form with the reduced
disclosure format.
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HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION:
PAGE
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ITEM 1. FINANCIAL STATEMENTS:
Consolidated Statements of Income --
Three Months Ended March 31, 1995 and 1994...... 3
Consolidated Balance Sheets --
March 31, 1995 and December 31, 1994............ 4
Consolidated Statements of Cash Flows --
Three Months Ended March 31, 1995 and 1994...... 5
ITEM 2. MANAGEMENT'S NARRATIVE ANALYSIS OF
RESULTS OF OPERATIONS*
Three Months Ended March 31, 1995 and 1994...... 6
PART II. OTHER INFORMATION:*
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K......... 7
Signature......................................... 8
Exhibit Index..................................... 9
(*) Item prepared in accordance with General Instruction H (2) of Form 10-Q.
(2)
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following unaudited financial statements, reflect, in the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, the results of operations
and the cash flows for the periods presented. Interim results are not indicative
of the results which may be expected for any other interim period or the full
year. For a description of accounting policies, see Notes to Consolidated
Financial Statements in the 1994 Form 10-K.
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31,
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1995 1994
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(UNAUDITED)
<S> <C> <C>
REVENUES:
Premiums and other considerations.................................................... $ 450 $ 305
Net investment income................................................................ 339 271
Net realized gains on investments.................................................... 1 3
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790 579
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BENEFITS, CLAIMS AND EXPENSES:
Benefits, claims and claim adjustment expenses....................................... 366 275
Amortization of deferred policy acquisition costs.................................... 42 42
Dividends to policyholders........................................................... 228 139
Other insurance expenses............................................................. 108 65
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744 521
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INCOME BEFORE INCOME TAX............................................................. 46 58
Income tax expense................................................................... 15 20
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NET INCOME........................................................................... $ 31 $ 38
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</TABLE>
(3)
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HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
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<CAPTION>
MARCH 31, DECEMBER 31,
1995 1994
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(UNAUDITED)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities, available for sale, at fair value.............. $13,756 $13,429
Equity securities, at fair value................................. 73 68
Mortgage loans, at outstanding principal balance................. 307 316
Policy loans, at outstanding balance............................. 3,469 2,614
Other investments................................................ 106 107
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17,711 16,534
Cash............................................................. 45 20
Premiums and amounts receivable.................................. 170 160
Reinsurance recoverable.......................................... 5,707 5,466
Accrued investment income........................................ 351 378
Deferred policy acquisition costs................................ 1,917 1,809
Deferred income tax.............................................. 537 590
Other assets..................................................... 158 83
Separate account assets.......................................... 25,495 22,809
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$52,091 $47,849
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LIABILITIES AND STOCKHOLDER'S EQUITY
Future policy benefits........................................... $ 1,989 $ 1,890
Other policyholder funds......................................... 22,465 21,328
Other liabilities................................................ 1,052 1,000
Separate account liabilities..................................... 25,495 22,809
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51,001 47,027
Common stock - authorized 1,000 shares, $5,690 par value, issued
and outstanding 1,000 shares.................................... 6 6
Capital surplus.................................................. 826 826
Unrealized loss on securities, net of tax........................ (417) (654)
Retained earnings................................................ 675 644
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1,090 822
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$52,091 $47,849
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</TABLE>
(4)
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HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31,
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1995 1994
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(UNAUDITED)
<S> <C> <C>
OPERATING ACTIVITIES:
NET INCOME................................................................................ $ 31 $ 38
Adjustments to net income:
Net realized investment gains before tax.................................................. (1) (3)
Net policyholder investment losses (gains) before tax..................................... 0 0
Net deferred policy acquisition costs..................................................... (108) (103)
Net amortization of premium on fixed maturities........................................... 1 15
Deferred income tax benefits.............................................................. (75) (50)
Decrease in premiums and amounts receivable............................................... 14 14
(Increase) decrease in other assets....................................................... (130) 14
(Increase) decrease in reinsurance recoverable............................................ (36) 10
Increase in liability for future policy benefits.......................................... 99 26
Increase in other liabilities............................................................. 140 138
Decrease (increase) in accrued investment income.......................................... 26 (24)
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CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES.......................................... (39) 75
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INVESTING ACTIVITIES:
Purchases of fixed maturity investments................................................... (1,080) (3,837)
Proceeds from sales of fixed maturity investments......................................... 751 2,190
Maturities and principal paydowns of long-term investments................................ 290 901
Net purchases of other investments........................................................ (927) (53)
Net sales (purchases) of short-term investments........................................... 98 598
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CASH USED FOR INVESTING ACTIVITIES........................................................ (868) (201)
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FINANCING ACTIVITIES:
Net receipts from investment and UL-type contracts credited to policyholder account
balances................................................................................. 932 129
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CASH PROVIDED BY FINANCING ACTIVITIES..................................................... 932 129
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NET INCREASE IN CASH...................................................................... 25 3
Cash at beginning of period............................................................... 20 1
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CASH AT END OF PERIOD..................................................................... $ 45 $ 4
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</TABLE>
(5)
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ITEM 2. MANAGEMENT'S NARRATIVE ANALYSIS OF
RESULTS OF OPERATIONS
(IN MILLIONS)
<TABLE>
<CAPTION>
ILAD AMS SPECIALTY TOTAL
---------- ---------- ---------- ----------
1995 1994 1995 1994 1995 1994 1995 1994
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues................................ $190 $155 $206 $200 $394 $224 $790 $579
Benefits, claims, expenses and taxes.... 155 132 215 189 389 220 759 541
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Net Income (Loss)....................... $35 $23 $(9) $11 $5 $4 $31 $38
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INDIVIDUAL LIFE AND ANNUITY DIVISION (ILAD)
Growth in fixed and variable annuity sales, as well as several assumption
reinsurance transactions in the last several years have increased the assets
under management in this segment to over $25 billion through March 1995. New
deposits of fixed and variable annuities in the first quarter of 1995 were
approximately $2 billion, but are not reported as revenues, an increase of 29%
over the prior period. The premiums, management and maintenance fees and cost of
insurance associated with this growing policyholder base continue to be the
source of ILAD's increased revenues, $134 million and $111 million in 1995 and
1994, respectively.
ASSET MANAGEMENT SERVICES (AMS)
This segment, consistent with the industry, has experienced a decline in net
investment income due to interest rate drops. The guaranteed rate contract (GRC)
line was particularly impacted by investment prepayment activity in excess of
expectations. Additionally, since interest credited to contractholders is fixed,
expenses continue to rise as investment income declines. Although income for
this line will continue to be impacted from these prepayments, hedging
strategies are in place that limit volatility against future interest rate
movements.
SPECIALTY
The growth of the Specialty lines is based primarily on increased sales of
corporate owned life insurance. New deposit premiums (not reported as revenues)
during the quarter were $1.3 billion compared to $500 million in 1994. Revenues
increased due to the continued growth in this line of business resulting in
increases in cost of insurance fees, maintenance fees and interest earned on
policy loans. In part, this reflects the 1994 recapture of reinsurance
previously ceded to a third party. The corresponding increase in benefits,
claims and expenses is primarily due to increases in dividends to policyholders,
as a significant portion of this block is written on a participating basis.
(6)
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See Exhibit Index
(b) None.
(7)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Hartford Life Insurance Company
(REGISTRANT)
by STEPHEN P. MINIHAN
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Stephen P. Minihan
ASSISTANT VICE PRESIDENT &
CONTROLLER
(CHIEF ACCOUNTING OFFICER)
May 12, 1995
(8)
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EXHIBIT INDEX
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<CAPTION>
EXHIBIT
NUMBER DESCRIPTION LOCATION
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<C> <S> <C>
(2) Plan of acquisition, reorganization, arrangement, liquidation or succession None
(4) Instruments defining the rights of security holders, including indentures None
(11) Statement re computation of per share earnings None
(15) Letter re unaudited interim financial information None
(18) Letter re change in accounting principles None
(19) Previously unfiled documents None
(20) Report furnished to security holders None
(23) Published report regarding matters submitted to vote of security holders None
(24) Consents of experts and counsel None
(25) Power of attorney None
(28) Additional exhibits None
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(9)
