================================================================================
FORM 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the year ended December 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ______________
Commission file number 0-19277
A. Full title of Plan and the address of the Plan, if different from that
of the issuer named below:
THE HARTFORD INVESTMENT AND SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Hartford Plaza, Hartford, Connecticut 06115-1900
================================================================================
<PAGE>
THE HARTFORD INVESTMENT AND SAVINGS PLAN
CONTENTS
DECEMBER 30, 1999 AND 1998
Pages
-----
Report of Independent Public Accountants F-1
Statements of Net Assets Available for Benefits as of
December 30, 1999 and 1998 F-2
Statements of Changes in Net Assets Available for Benefits
for the Years Ended December 30, 1999 and 1998 F-3
Notes to Financial Statements and Supplemental Schedules F-4 - F-9
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 30, 1999 F-10 - F-12
Item 27b - Schedule of Loans or Fixed Income Obligations
as of December 30, 1999 F-13
Item 27d - Schedule of Reportable Transactions - For the
year ended December 30, 1999 F-14
Signature F-15
Exhibit 1 - Consent of Independent Public Accountants F-16
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Hartford Financial Services Group, Inc.:
We have audited the accompanying Statements of Net Assets Available for Benefits
of The Hartford Investment and Savings Plan as of December 30, 1999 and 1998,
and the related Statements of Changes in Net Assets Available for Benefits for
the years then ended. These financial statements and the schedules referred to
below are the responsibility of the Plan Administrator. Our responsibility is to
express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of The Hartford
Investment and Savings Plan as of December 30, 1999 and 1998, and the changes in
net assets available for benefits for the years then ended, in conformity with
accounting principles generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules on pages F-10
through F-14 are presented for purposes of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
June 23, 2000
F-1
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 30, 1999 and 1998
($ IN THOUSANDS)
---------------------------------------------------------------------------------------------------------------------------------
1999 1998
---------------------------------------------------------------------------------------------------------------------------------
Non- Non-
Member Member Member Member
Total Directed Directed Total Directed Directed
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
The Hartford common stock (13,908,210
and 14,226,085 shares) $ 654,555 $ 492,880 $ 161,675 $ 794,000 $ 601,852 $ 192,148
Hartford Life common stock (1,634,984
and 1,383,950 shares) 70,304 40,003 30,301 80,788 51,866 28,922
Standard & Poor's 500 index portfolio 298,957 -- 298,957 250,491 -- 250,491
Mutual funds 204,421 -- 204,421 127,858 -- 127,858
Pooled temporary investments 16,523 9,968 6,555 26,221 12,051 14,170
Investment in group annuity contracts, at
contract value 285,834 -- 285,834 273,244 -- 273,244
Loans receivable 37,889 -- 37,889 40,115 -- 40,115
Dividends and interest receivable 5,002 2,651 2,351 4,765 2,522 2,243
Contributions receivable 3,533 1,180 2,353 3,339 1,211 2,128
----------------------------------------------------------------------------------
TOTAL ASSETS 1,577,018 546,682 1,030,336 1,600,821 669,502 931,319
----------------------------------------------------------------------------------
LIABILITIES
Interfund transfers pending -- 167 (167) -- 116 (116)
Unsettled net security purchases (sales) 1,515 (280) 1,795 163 -- 163
----------------------------------------------------------------------------------
TOTAL LIABILITIES 1,515 (113) 1,628 163 116 47
----------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 1,575,503 $ 546,795 $ 1,028,708 $ 1,600,658 $ 669,386 $ 931,272
-----------------------------------------------==================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-2
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 30, 1999 and 1998
($ IN THOUSANDS)
----------------------------------------------------------------------------------------------------------------------------------
1999 1998
----------------------------------------------------------------------------------------------------------------------------------
Non- Non-
Member Member Member Member
Total Directed Directed Total Directed Directed
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized gains (losses) $ (53,745) $ (99,677) $ 45,932 $ 177,866 $ 100,132 $ 77,734
Dividends and interest 40,281 10,541 29,740 35,306 9,001 26,305
----------------------------------------------------------------------------------
Total investment income (loss) (13,464) (89,136) 75,672 213,172 109,133 104,039
Interest on participant loans 3,555 162 3,393 3,482 191 3,291
Repayment of participant loans -- 1,354 (1,354) -- 1,615 (1,615)
Employee contributions 60,873 -- 60,873 57,217 -- 57,217
Employer contributions, net of forfeitures 25,465 24,944 521 23,875 23,485 390
Rollovers 8,302 -- 8,302 6,830 -- 6,830
Other, net (141) (5,784) 5,643 34 495 (461)
----------------------------------------------------------------------------------
TOTAL ADDITIONS (DEDUCTIONS) 84,590 (68,460) 153,050 304,610 134,919 169,691
----------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Interfund transfers -- (14,107) 14,107 -- 191,580 (191,580)
Loans to participants -- (859) 859 -- (1,247) 1,247
Administrative expense (2,765) (1,111) (1,654) (2,634) (937) (1,697)
Benefits paid to members (106,980) (38,054) (68,926) (88,572) (31,042) (57,530)
----------------------------------------------------------------------------------
TOTAL ADDITIONS (DEDUCTIONS) (109,745) (54,131) (55,614) (91,206) 158,354 (249,560)
----------------------------------------------------------------------------------
NET INCREASE (DECREASE) (25,155) (122,591) 97,436 213,404 293,273 (79,869)
----------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,600,658 669,386 931,272 1,387,254 376,113 1,011,141
----------------------------------------------------------------------------------
END OF YEAR $ 1,575,503 $ 546,795 $ 1,028,708 $ 1,600,658 $ 669,386 $ 931,272
------------------------------------------------==================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-3
<PAGE>
THE HARTFORD INVESTMENT AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 30, 1999 AND 1998
(DOLLAR AMOUNTS IN THOUSANDS)
NOTE 1. DESCRIPTION OF THE PLAN
The Hartford Financial Services Group, Inc., a Delaware corporation, and its
consolidated subsidiaries ("The Hartford" or the "Company") provide property and
casualty and life insurance products to both individual and commercial customers
in the United States and internationally.
The Hartford was a wholly-owned subsidiary of ITT Corporation ("ITT" which was
renamed ITT Industries, Inc.). On December 19, 1995, ITT distributed all of the
outstanding shares of The Hartford to ITT shareholders of record in an action
known herein as the "Distribution". Through the date of the Distribution,
eligible employees of the Company participated in the ITT Investment and Savings
Plan for Salaried Employees ("ITT Plan"). Subsequent to the Distribution, the
Company established The Hartford Investment and Savings Plan (the "Plan") for
the benefit of eligible employees of The Hartford. The accounts of employees who
had participated in the ITT Plan were transferred to the Plan. On the date of
Distribution holders of common stock of ITT, including the ITT Plan, received
one share of ITT Destinations, Inc. (renamed "ITT Corporation") common stock,
one share of ITT Industries, Inc. common stock and one share of The Hartford
common stock for each share of ITT common stock held. Shares in each of The
Hartford, ITT Corporation and ITT Industries, Inc. have been held in separate
funds. In February 1998, ITT Corporation was acquired by Starwood Hotels &
Resorts Worldwide, Inc. ("Starwood") and the ITT Corporation Company Stock Fund
became the Starwood Stock Fund. Both the ITT Industries and Starwood Stock Funds
were terminated on September 1, 1998. The balances in those two funds were
transferred to The Hartford Company Stock Fund or for employees of Hartford
Life, Inc. ("Hartford Life" or "HLI"), the holding company parent of The
Hartford's significant life insurance subsidiaries, Hartford Life Company Stock
Fund.
On May 21, 1998, The Hartford's Board of Directors authorized a two-for-one
stock split effected in the form of a 100% stock dividend distributed on July
15, 1998 to shareholders of record as of June 24, 1998. Share information has
been restated on a retroactive basis to reflect the effect of the stock split.
Information with regard to eligibility, contributions, distributions, vesting,
trustees, withdrawals, restoration, loans, fund redistribution and definitions
of all capitalized terms are contained in the Plan's information document, which
has been distributed to the participants.
General
-------
The Plan is a defined contribution plan covering all full-time and some
part-time employees of the Company who have six months or more of service and
who have attained age 19. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA").
The Trust, as defined in the Plan document, is the aggregate funds held by the
Trustee, Bankers Trust Company, under the trust agreement or agreements
established for the purposes of this Plan or the aggregate funds held under an
insurance contract or contracts established with The Hartford.
Contributions
-------------
Plan members may generally elect to save 2% to 16% of base salary. Members may
designate their savings as before-tax, after-tax or a combination of both.
Members who are highly compensated employees may be limited to less than 16% due
to the operation of certain tests required under the Internal Revenue Code of
1986 (the "Code"), as amended.
An amount equal to 50% of a member's Basic Savings is matched by the Company.
Basic Savings are contributions which are not in excess of the first 6% of base
salary. Member's savings in excess of 6% of base salary are supplemental savings
that are not matched by Company contributions. In addition, the Company
allocates 0.5% of base salary to the Floor Company Contribution Account of each
eligible employee. Matching Company contributions
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES (Continued)
and Floor Company contributions are invested in The Hartford Company Stock Fund
or, for employees of Hartford Life, Hartford Life Company Stock Fund.
Effective December 30, 1999 for the 2000 Plan year and December 30, 1998 for the
1999 Plan year, the Company guaranteed a fixed minimum contribution (based on a
percentage of the amount of employer contributions normally made) that
represents the employee salary deferral contributions and matching contributions
for the subsequent Plan year. If actual contributions are less than the
guaranteed fixed minimum amount at the end of the Plan year, an additional
matching contribution would be made to the participants. The minimum
contribution was met for the 1999 Plan year.
Administrative Costs
--------------------
The Trust, as defined by the Plan, pays for the administrative expenses of the
Plan up to 0.25% of the market value of Trust assets. The Company continues to
pay certain Plan administrative expenses which cannot be paid by the Trust.
Member Accounts
---------------
Each member's account is credited with that member's contributions and
allocations of (a) the Company's contribution and (b) Plan earnings, and is
charged with an allocation of administrative expenses. Allocations are based on
member earnings or account balances, as defined. The benefit to which a member
is entitled is the benefit that can be provided from that member's vested
account.
Vesting
-------
Vesting in the Company-matched contributions begins one year after employment at
20% and increases 20% each consecutive year until the fifth consecutive year of
employment when 100% is vested. Notwithstanding the foregoing statement, a
member becomes fully vested in such member's Company contribution account upon
retirement, disability, death, or upon reaching age 65, or the complete
discontinuance of Company contributions or upon termination of the Plan. Floor
contributions are 100% vested when allocated to each member's account.
Investment Options
------------------
Contributions of member savings are invested in any one or more of the funds
listed below in multiples of 1%, as elected by the member.
[1] THE HARTFORD This fund's investment objective is to seek long-term
COMPANY STOCK capital appreciation by investing in the common stock of
FUND The Hartford.
[1] HARTFORD LIFE This fund's investment objective is to seek long-term
COMPANY STOCK capital appreciation by investing in the class A common
FUND stock of Hartford Life, Inc. (see Note 9.)
[1] INDEX FUND This fund's investment objective is to seek investment
results that track the overall performance of the stocks
in the Standard & Poor's ("S&P") 500 Stock Index by
investing in stocks in the S&P 500 Stock Index.
[1] STABLE VALUE This fund's investment objective is to seek a stable and
FUND predictable rate of return and preservation of capital
by investing in group annuity contracts issued by a
diversified group of high-quality life insurance
companies, including an affiliate, Hartford Life,
deposit agreements issued by a diversified group of
high-quality banks, U.S. government obligations and
asset-backed securities.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES (Continued)
[1] ADVISERS FUND This fund's investment objective is to seek long-term
total return by investing primarily in the stocks of
U.S. companies, bonds and other debt securities, and
money market instruments.
[1] BOND INCOME This fund's investment objective is to seek a high level
STRATEGY FUND of current income consistent with a competitive total
return as compared with bond funds with similar
investment objectives and policies by investing
primarily in investment-grade bonds.
[1] MONEY MARKET This fund's investment objective is to seek maximum
FUND current income consistent with liquidity and
preservation of capital by investing in cash, cash
equivalents and high-quality debt securities.
[1] DIVIDEND & This fund's investment objective is to seek current
GROWTH FUND income and growth of capital by investing primarily in
large, well-known U.S. companies that pay above-average
dividends.
[1] INTERNATIONAL This fund's investment objective is to seek long-term
OPPORTUNITIES growth of capital by investing primarily in the stocks
FUND of large non-U.S. companies.
[1] CAPITAL This fund's investment objective is to seek capital
APPRECIATION appreciation by investing primarily in the stocks of
FUND small, medium and large U.S. companies.
[1] SMALL COMPANY This fund's investment objective is to seek capital
FUND appreciation by investing primarily in stocks of U.S.
companies with market capitalization of less than $2
billion that the portfolio manager believes have
above-average earnings growth potential.
[1],[2] MIDCAP FUND This fund's investment objective is to seek capital
appreciation by investing primarily in stock with market
capitalization in the range represented by the S&P
MidCap 400 index.
[1],[3] HIGH YEALD This fund's investment objective is to seek high
FUND current income with growth of capital as a secondary
consideration by investing primarily in securities
considered to be below investment grade quality.
[1],[3] GLOBAL This fund's objective is to seek growth of capital
LEADERS FUND by investing in stocks of U.S. and non-U.S. companies
that are leaders in their industries as indicated by an
established market presence and a strong global,
regional, or country competitive position.
[1] Indicates party-in-interest with certain subsidiaries of The Hartford.
See Note 8 for further discussion.
[2] MidCap Fund became effective on April 1, 1998.
[3] High Yield Fund and Global Leaders Fund became effective January 1,
1999.
Participant Loans
-----------------
Members may borrow from their fund accounts a minimum of $1,000 to a maximum
equal to the lesser of $50,000 or 50 percent of their vested account balances.
Loan transactions are treated as transfers to (from) the investment fund from
(to) the loan fund. Loan terms range from one to five years, or up to 15 years
for the purchase of a primary residence. The loan is secured by the balance in
the member's account and bears interest at the prime rate (as published in the
Wall Street Journal) plus 1% and remains fixed for the term of the loan. The
interest rate is determined quarterly.
Payment of Benefits
-------------------
On termination of service due to death, disability, retirement, or other
reasons, members may elect to receive either a lump sum amount equal to the
value of the vested interest in their respective accounts or, subject to certain
conditions,
F-6
<PAGE>
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES (Continued)
annual installments over a period not greater than twenty years. Members may
also elect to defer distributions subject to certain conditions.
Forfeitures
-----------
Forfeitures of the nonvested portion of any member's Company contributions are
applied to reduce future Company contributions. Forfeitures were immaterial for
the years ended December 30, 1999 and 1998.
NOTE 2. ACCOUNTING POLICIES
The financial statements have been prepared using the accrual basis of
accounting. The preparation of financial statements in conformity with
accounting principles generally accepted in the United States and the Department
of Labor Rules and Regulations for Reporting and Disclosure under ERISA requires
management of the Plan to make estimates and assumptions that affect the
reported amounts of assets and liabilities and contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expense during the reporting period. Actual results could differ from those
estimates.
The Accounting Standards Executive Committee issued Statement of Position (SOP)
99-3, "Accounting For And Reporting of Certain Defined Contribution Plan
Investments and Other Disclosure Matters", which eliminates the requirement for
a defined contribution plan to disclose member directed investment programs. SOP
99-3 was adopted for the 1999 Plan year financial statements and as such, the
1998 financial statements have been reclassified to eliminate the member
directed fund investment program disclosures.
NOTE 3. INVESTMENTS
The following investments represented 5 percent or more of the Plan's net
assets.
<TABLE>
<CAPTION>
December 30,
---------------------------------
1999 1998
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Hartford Financial Services Group, Inc. common stock (13,908,210 and
14,226,085 shares) $ 654,555* $ 794,000*
S&P 500 Index Portfolio Hartford GA-6226 298,957 250,491
Stable Value Fund - group annuity contracts 285,834 273,244
---------------------------------------------------------------------------------------------------------------------
<FN>
* - Includes non-member directed assets
</FN>
</TABLE>
For the years ended December 30, 1999 and 1998, the Plan's investments
(depreciated) appreciated as follows:
<TABLE>
<CAPTION>
December 30,
---------------------------------
1999 1998
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Hartford Financial Services Group, Inc. common stock $ (115,737) $ 119,495
Hartford Life, Inc. common stock (22,016) 14,883
Standard & Poor's 500 index portfolio 50,819 55,441
Mutual funds 33,189 10,899
ITT Corporation common stock -- (28,620)
ITT Industries, Inc. common stock -- 5,768
---------------------------------------------------------------------------------------------------------------------
</TABLE>
F-7
<PAGE>
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES (Continued)
NOTE 4. VALUATION OF INVESTMENTS
Plan investments, except group annuity contracts, are reported at fair value.
The fair value of the underlying common stock of The Hartford Company Stock Fund
and Hartford Life Company Stock Fund are based on quoted market prices.
Interests in mutual funds and pooled investment funds are valued at the
redemption price established by the trustee or the investment manager of the
respective fund.
The Plan has entered into numerous traditional and synthetic group annuity
contracts primarily with insurance carriers. These contracts, which are included
in the Stable Value Fund, are fully benefit responsive and are included in the
financial statements at contract value, which approximates fair value. Contract
value represents contributions made under the contract, plus earnings, less Plan
withdrawals and administrative expenses. As of December 30, 1999, the estimated
fair value of the group annuity contracts was $273,442. The average yield and
weighted average crediting interest rate on these contracts was 6.20% and 6.16%,
respectively, for the year ended December 30, 1999, and 6.43% and 6.35%,
respectively, for the year ended December 30, 1998. Crediting interest rate
resets are generally made quarterly for synthetic contracts and are reset based
on formulas which may use market value, book value, duration and yield. A
synthetic group annuity contract is an investment contract that simulates the
performance of a traditional group annuity contract through the use of financial
instruments. A key difference between a synthetic group annuity contract and a
traditional group annuity contract is that the Plan owns the assets underlying
the synthetic group annuity contract. Traditional group annuity contracts have
fixed crediting interest rates.
NOTE 5. FEDERAL INCOME TAX
On February 25, 1998, a favorable determination was received from the Internal
Revenue Service as to the tax-qualified status of the Plan. While the Plan has
been amended subsequent to the receipt of the determination letter, the Plan
administrator believes that the Plan is designed and is being operated in
compliance with applicable provisions of the Code and other applicable law, and
there have been no amendments, changes or events, which have occurred, which
could affect the Plan's qualified status. Accordingly, no provision for income
taxes has been made in the Plan's financial statements.
NOTE 6. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to suspend, reduce, or partially or completely discontinue its
contributions at any time and to terminate the Plan, the trust agreement and the
Trust hereunder subject to the provisions of ERISA. In the event of termination
or partial termination of the Plan or complete discontinuance of contributions,
the interest of affected members shall automatically become nonforfeitable.
NOTE 7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
As of December 30, 1999 and 1998, the following is a reconciliation of net
assets available for plan benefits according to the accompanying financial
statements to Form 5500:
<TABLE>
<CAPTION>
1999 1998
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net assets available for plan benefits per financial statements $ 1,575,503 $ 1,600,658
Amounts allocated to withdrawing members (378) (254)
---------------------------------------------------------------------------------------------------------------------
Net assets available for plan benefits per Form 5500 $ 1,575,125 $ 1,600,404
=====================================================================================================================
</TABLE>
F-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES (Continued)
The following is a reconciliation of benefits paid to members according to the
accompanying financial statements to Form 5500:
<TABLE>
<CAPTION>
1999 1998
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Benefits paid to members per financial statements $ 106,980 $ 88,572
Amounts allocated to withdrawing members at end of year 378 254
Amounts allocated to withdrawing members at beginning of year (254) (650)
---------------------------------------------------------------------------------------------------------------------
Benefits paid to members per Form 5500 $ 107,104 $ 88,176
=====================================================================================================================
</TABLE>
Amounts allocated to withdrawing members are recorded on Form 5500 for benefit
claims that have been processed and approved for payment prior to the end of the
Plan year, but not paid as of that date.
NOTE 8. PARTY-IN-INTEREST TRANSACTIONS
Certain Plan investments are held in funds managed by Bankers Trust Company, the
Trustee, as defined by the Plan, and certain subsidiaries of The Hartford. Fees
paid by the Plan for Trustee, custodial and investment management services
provided by Bankers Trust Company amounted to $561 and $464 for the years ended
December 30, 1999 and 1998, respectively. Fees paid by the Plan to certain
subsidiaries of the Company for investment management services, the issuance of
group annuity contracts and print services amounted to $85 and $65 for the years
ended December 30, 1999 and 1998, respectively. In addition, certain Plan
investments are shares of The Hartford common stock and Hartford Life common
stock. Since The Hartford is the Plan Sponsor, these transactions qualify as
party-in-interest transactions.
NOTE 9. SUBSEQUENT EVENT
On June 27, 2000, The Hartford completed a merger of the outstanding shares of
Hartford Life that the Company did not already own. As a result, HLI became a
wholly-owned subsidiary of The Hartford. While Hartford Life will continue to
exist as a company, Hartford Life stock will no longer be listed or traded on
the New York Stock Exchange. Proceeds received by the Plan from the merger will
be used to purchase shares of The Hartford common stock by the trustee as soon
as practicable. Once the purchase of shares is completed, all assets remaining
in Hartford Life Company Stock Fund will be transferred to The Hartford Company
Stock Fund. After the purchase of HLI shares is completed, future employee
contributions directed to Hartford Life Company Stock Fund that have not been
previously used to buy HLI stock will be redirected to The Hartford Company
Stock Fund. Future employer contributions will be invested automatically in The
Hartford Company Stock Fund.
F-9
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
PLAN# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 30, 1999
($ IN THOUSANDS)
(C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY
DATE, RATE OF INTEREST, COLLATERAL, PAR OR (E) CURRENT
(A) (B) IDENTITY OF PARTY MATURITY VALUE (D) COST VALUE
--- --------------------- -------------- -------- -----
<S> <C> <C> <C> <C>
The Hartford Company Stock Fund
-------------------------------
* The Hartford Financial
Services Group, Inc. Common Stock $ 387,873 $ 654,555
* Bankers Trust Company BT Pyramid Directed Account Cash Fund -
STIF 12,014 12,014
-------------- --------------
SUBTOTAL 399,887 666,569
-------------- --------------
Hartford Life Company Stock Fund
--------------------------------
* Hartford Life Common Stock 78,086 70,304
* Bankers Trust Company BT Pyramid Directed Account
Cash Fund - STIF 1,620 1,620
-------------- --------------
SUBTOTAL 79,706 71,924
-------------- --------------
Index Fund
----------
* Hartford Life Insurance S&P 500 Index Portfolio Hartford - GA - 6226,
Company S/A BI 125,198 298,957
-------------- --------------
SUBTOTAL 125,198 298,957
-------------- --------------
Stable Value Fund
-----------------
* Bankers Trust Company BT Pyramid Discretionary Account Cash Fund - STIF
2,889 2,889
Caisse des Depots et Group Annuity Contract
Consignations #BR302-01, 6.98%, 01/01/2002 17,936 17,936
Continental Assurance Group Annuity Contract
Company #24022, 6.58%, 12/31/2001 8,827 8,827
Jackson National Life Group Annuity Contract
Insurance Company #1226, 5.00%, 08/07/2001 2,500 2,500
Metropolitan Life Group Annuity Contract
Insurance Company #24543, 5.78%, 11/30/2003 6,843 6,843
Monumental Life Group Annuity Contract
Insurance Company #ADA00212TR, 6.38% * * 67,266 67,266
Morgan Guaranty Group Annuity Contract
Trust Company #AITTH01, 6.24% * * 67,834 67,834
Principal Life Insurance Group Annuity Contract
Company #GA 4-36623, 5.78%, 01/21/2004 9,444 9,444
Sun America Life Group Annuity Contract
Insurance Company #4670, 6.81%, 10/16/2001 3,580 3,580
<FN>
* Indicates party-in-interest.
** These synthetic portfolios have no final maturity. Final maturity is
based on the underlying assets in the bond portfolios.
</FN>
</TABLE>
The accompanying notes are an integral part of this schedule.
F-10
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
PLAN# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 30, 1999
($ IN THOUSANDS)
(CONTINUED)
(C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY
DATE, RATE OF INTEREST, COLLATERAL, PAR OR (E) CURRENT
(A) (B) IDENTITY OF PARTY MATURITY VALUE (D) COST VALUE
--- --------------------- -------------- -------- -----
<S> <C> <C> <C> <C>
Transamerica Group Annuity Contract
Insurance Company #76592, 5.86%, 09/25/2010 $ 53,343 $ 53,343
Union Bank of Group Annuity Contract
Switzerland #3024, 6.18% * * 48,261 48,261
-------------- --------------
Subtotal 288,723 288,723
-------------- --------------
Advisers Fund
-------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Advisers Fund #BL416645786 50,822 65,808
-------------- --------------
Subtotal 50,822 65,808
-------------- --------------
Bond Income Strategy Fund
-------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Bond Income Strategy Fund 6,920 6,531
-------------- --------------
Subtotal 6,920 6,531
-------------- --------------
Money Market Fund
-----------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Money Market Fund 8,803 8,803
-------------- --------------
Subtotal 8,803 8,803
-------------- --------------
Dividend & Growth Fund
----------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Dividend & Growth Fund 16,115 17,869
-------------- --------------
Subtotal 16,115 17,869
-------------- --------------
International Opportunities Fund
--------------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. International Opportunities Fund 11,414 14,306
-------------- --------------
Subtotal 11,414 14,306
-------------- --------------
Capital Appreciation Fund
-------------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Capital Appreciation Fund 34,348 49,574
-------------- --------------
Subtotal 34,348 49,574
-------------- --------------
<FN>
* Indicates party-in-interest.
** These synthetic portfolios have no final maturity. Final maturity is
based on the underlying assets in the bond portfolios.
</FN>
</TABLE>
The accompanying notes are an integral part of this schedule.
F-11
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
PLAN# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 30, 1999
($ IN THOUSANDS)
(CONTINUED)
(C) DESCRIPTION OF INVESTMENT INCLUDING MATURITY
DATE, RATE OF INTEREST, COLLATERAL, PAR OR (E) CURRENT
(A) (B) IDENTITY OF PARTY MATURITY VALUE (D) COST VALUE
--- --------------------- -------------- -------- -----
<S> <C> <C> <C> <C>
Small Company Fund
------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Small Company Fund $ 16,887 $ 24,561
-------------- --------------
Subtotal 16,887 24,561
-------------- --------------
MidCap Fund
-----------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. MidCap Fund 9,232 11,913
-------------- --------------
Subtotal 9,232 11,913
-------------- --------------
High Yield Fund
---------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. High Yield Fund 1,284 1,239
-------------- --------------
Subtotal 1,284 1,239
-------------- --------------
Global Leaders Fund
-------------------
* The Hartford Financial Hartford Mutual Funds, Inc.
Services Group, Inc. Global Leaders Fund 3,033 3,817
-------------- --------------
Subtotal 3,033 3,817
-------------- --------------
Loan Fund
---------
* Loans to Participants Loans Receivable from Participants, maturing at
various dates bearing interest at rates from
7.0% - 11.5% -- 37,889
-------------- --------------
Subtotal -- 37,889
-------------- --------------
Total $ 1,052,372 $ 1,568,483
============== ==============
<FN>
* Indicates party-in-interest.
</FN>
</TABLE>
The accompanying notes are an integral part of this schedule.
F-12
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
AS OF DECEMBER 30, 1999
(b) Identity and (c) Original (d) Principal (e) Interest
Address of Amount of Received During Received During
(a) Obligor Loan Reporting Year Reporting Year
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
* Active Employee
residing in CT $1,400 $395 $122
* Active Employee
residing in CT 16,306 3,189 1,100
* Active Employee
residing in CT 42,188 1,652 1,438
* Active Employee
residing in CT 6,650 1,380 534
* Active Employee
residing in PA 1,000 767 147
----------------------------------------------------------------------------------------
Total
----------------------------------------------------------------------------------------
<FN>
* Indicates party-in-interest.
** Information for split between principal and interest unavailable.
</FN>
</TABLE>
The accompanying notes are an integral part of this schedule.
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
AS OF DECEMBER 30, 1999
(Continued)
(b) Identity and (f) Unpaid (h) Arrears
Address of Principal Balance (g) Detailed Description of (Principal +
(a) Obligor at end of Year Loan Interest) **
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Participant Loan at 9.75%
* Active Employee secured by participant's
residing in CT $633 account balance $222
Participant Loan at 9.25%
* Active Employee secured by participant's
residing in CT 9,354 account balance 1,360
Participant Loan at 7.0%
* Active Employee secured by participant's
residing in CT 30,047 account balance 1,327
Participant Loan at 9.5%
* Active Employee secured by participant's
residing in CT 4,274 account balance 349
Participant Loan at 9.5%
* Active Employee secured by participant's
residing in PA -- account balance 92
---------------------------------------------------------------------------------------------------
Total $44,308 $3,350
---------------------------------------------------------------------------------------------------
<FN>
* Indicates party-in-interest.
** Information for split between principal and interest unavailable.
</FN>
</TABLE>
The accompanying notes are an integral part of this schedule.
F-13
<PAGE>
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 30, 1999
($ IN THOUSANDS)
(c) (e) (f)
(a) (b) Purchase (d) Selling Lease Expense
Identity of Party Description of Asset Price Price Rental Incurred
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Bankers Trust Company BT Pyramid Directed Account Cash
Fund - STIF $ -- $158,478 $-- $--
Bankers Trust Company BT Pyramid Directed Account Cash
Fund - STIF 156,175 -- -- --
Bankers Trust Company BT Pyramid Discretionary Account
Cash Fund - STIF -- 75,764 -- --
Bankers Trust Company BT Pyramid Discretionary Account
Cash Fund - STIF 68,370 -- -- --
The Hartford Financial The Hartford Financial Services
Services Group, Inc. Group, Inc. Common Stock -- 75,437 -- --
The Hartford Financial The Hartford Financial Services
Services Group, Inc. Group, Inc. Common Stock 56,159 -- -- --
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this schedule.
<TABLE>
<CAPTION>
EIN# 06-0383750
Plan# 100
THE HARTFORD INVESTMENT AND SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 30, 1999
($ IN THOUSANDS)
(Continued)
(h)
(g) Current Value of (i)
(a) (b) Cost of Assets on Transaction Net
Identity of Party Description of Asset Asset Date Gain
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bankers Trust Company BT Pyramid Directed Account Cash
Fund - STIF $158,478 $158,478 $ --
Bankers Trust Company BT Pyramid Directed Account Cash
Fund - STIF 156,175 156,175 --
Bankers Trust Company BT Pyramid Discretionary Account
Cash Fund - STIF 75,764 75,764 --
Bankers Trust Company BT Pyramid Discretionary Account
Cash Fund - STIF 68,370 68,370 --
The Hartford Financial The Hartford Financial Services
Services Group, Inc. Group, Inc. Common Stock 37,013 75,437 38,424
The Hartford Financial The Hartford Financial Services
Services Group, Inc. Group, Inc. Common Stock 56,159 56,159 --
------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this schedule.
F-14
<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE PENSION
FUND TRUST AND INVESTMENT COMMITTEE OF THE HARTFORD INVESTMENT AND SAVINGS PLAN
HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED
HEREUNTO DULY AUTHORIZED.
THE HARTFORD INVESTMENT AND SAVINGS PLAN
----------------------------------------
(NAME OF PLAN)
BY: /S/ FRANCIS A. DORION
---------------------------------------
(FRANCIS A. DORION, PLAN ADMINISTRATOR)
JUNE 28, 2000
-------------
(DATE)
F-15
<PAGE>
EXHIBIT 1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Hartford Financial Services Group, Inc.:
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K into the Company's previously filed
registration statement on Form S-8 (Registration No. 33-80663).
ARTHUR ANDERSEN LLP
Hartford, Connecticut
June 28, 2000
F-16
