-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CaFwcWtpQlDvheJJnGM5ic91pqgK9W9Yc/xcN2ym/zWo/5y20AlJFDZkpd5+eyB6 SxPKOCFN8e1VyxpksemYVw== 0001104659-08-029042.txt : 20080501 0001104659-08-029042.hdr.sgml : 20080501 20080501153714 ACCESSION NUMBER: 0001104659-08-029042 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080501 DATE AS OF CHANGE: 20080501 EFFECTIVENESS DATE: 20080501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD LIFE INSURANCE CO SEPARATE ACCOUNT 11 CENTRAL INDEX KEY: 0001140019 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-72042 FILM NUMBER: 08794486 BUSINESS ADDRESS: STREET 1: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06102 BUSINESS PHONE: 8608435910 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD LIFE INSURANCE CO SEPARATE ACCOUNT 403 DATE OF NAME CHANGE: 20010504 0001140019 S000002559 HARTFORD LIFE INSURANCE CO SEPARATE ACCOUNT 11 C000055035 Premier Solutions State of Connecticut 497 1 a08-4494_2497.txt 497 GROUP VARIABLE ANNUITY CONTRACTS [THE HARTFORD LOGO] SEPARATE ACCOUNT ELEVEN STATE OF CONNECTICUT This prospectus describes information you should know before you purchase or become a Participant under a group variable annuity contract (the "Contract" or "Contracts"). Please read it carefully before you purchase or become a Participant under the Contract. Hartford Life Insurance Company issues the Contracts for use in certain retirement programs adopted according to the Internal Revenue Code. You or your Employer allocate your plan Contribution to "Sub-Accounts." Sub-Accounts are subdivisions of one of our Separate Accounts that we establish to keep your Contributions separate from our company assets. The Sub-Accounts purchase shares of mutual funds that have investment strategies ranging from conservative to aggressive. You choose the Sub-Accounts that meet your investment goals and risk tolerance. For more information on the mutual funds see the section entitled "The Funds." For Contracts issued in connection with Employer-sponsored retirement programs, the Contract Owner decides which Sub-Accounts described in this Prospectus are available to Participants. As a result, if you are a Participant in an Employer-sponsored retirement program, you may not be able to allocate Contributions to all of the Sub-Accounts described in this Prospectus. For additional information describing which Sub-Accounts are available to you, please refer to the materials describing your Employer's program. Depending on which Sub-Accounts you select, the underlying mutual funds may be retail mutual funds that are available to the public, or mutual funds that are only available to insurance company separate accounts. Because your Contributions purchase Sub-Accounts, YOU DO NOT INVEST DIRECTLY IN ANY OF THE MUTUAL FUNDS. For a list of the Sub-Accounts available under the Contract, see the section entitled "The Funds." The Contracts may contain a General Account option. The General Account option has certain restrictions. The General Account option and these restrictions are not described in this Prospectus. The General Account option is not required to be registered with the Securities and Exchange Commission ("SEC"). If you decide to become a Contract Owner or a Participant, you should keep this prospectus for your records. You can also call us at 1-800-528-9009 to get a Statement of Additional Information, free of charge. The Statement of Additional Information contains more information about the Contract, and like this prospectus, is filed with the SEC. We have included a Table of Contents for the Statement of Additional Information at the end of this prospectus. The SEC doesn't approve or disapprove these securities or determine if the information in this prospectus is truthful or complete. Anyone who represents that the SEC does these things may be guilty of a criminal offense. This Prospectus and the Statement of Additional Information can also be obtained from the SEC's website (http://www.sec.gov). This group variable annuity contract IS NOT: - - A bank deposit or obligation - - Federally insured - - Endorsed by any bank or governmental agency - -------------------------------------------------------------------------------- Prospectus Dated: May 1, 2008 Statement of Additional Information Dated: May 1, 2008 TABLE OF CONTENTS
SECTION PAGE - -------------------------------------------------------------------------------- GLOSSARY OF SPECIAL TERMS 3 FEE TABLE 5 SUMMARY 13 PERFORMANCE RELATED INFORMATION 15 HARTFORD LIFE INSURANCE COMPANY 15 THE SEPARATE ACCOUNT 16 THE FUNDS 16 GENERAL ACCOUNT OPTION 20 CONTRACT CHARGES 20 Contingent Deferred Sales Charge 20 Annual Maintenance Fee 21 Is there ever a time when the Contingent Deferred Sales Charge 21 or Annual Maintenance Fee do not apply? Mortality and Expense Risk and Administrative Charge 21 Premium Taxes 23 Transfer Fee 23 Experience Rating under the Contracts 23 Negotiated Charges and Fees 23 Charges of the Funds 23 Plan Related Expenses 23 THE CONTRACTS 23 The Contracts Offered 23 Assignments 24 Pricing and Crediting of Contributions 24 What is a Surrender Charge Offset? 24 May I make changes in the amounts of my Contribution? 24 Dollar Cost Averaging 28 May I request a loan from my Participant Account? 28 How do I know what my Participant Account is worth? 29 How are the underlying Fund shares valued? 29 DEATH BENEFITS 30 Determination of the Beneficiary 30 Death before the Annuity Commencement Date 30 Death on or after the Annuity Commencement Date 30 SETTLEMENT PROVISIONS 31 Can payment of the Surrender value ever be postponed beyond the 31 seven-day period? May I Surrender once Annuity Payouts have started? 31 How do I elect an Annuity Commencement Date and Annuity payout 32 option? What is the minimum amount that I may select for an Annuity 32 payout? How are Contributions made to establish an Annuity Account? 32 Can a Contract be suspended by a Contract Owner? 32 Annuity Payment Options 32 Systematic Withdrawal Option 33 How are Variable Annuity payouts determined? 34 FEDERAL TAX CONSIDERATIONS 35 A. General 35 B. Taxation of Hartford and the Separate Account 35 C. Diversification of the Separate Account 35 D. Tax Ownership of the Assets in the Separate Account 36 E. Non-Natural Persons as Owners 36 F. Annuity Purchases by Nonresident Aliens and Foreign 37 Corporations G. Generation Skipping Transfer Tax 37 MORE INFORMATION 46 Can a Contract be modified? 46 Can Hartford waive any rights under a Contract? 46 How Contracts are sold? 46 Who is the custodian of the Separate Account's assets? 48 Are there any material legal proceedings affecting the Separate 48 Account? APPENDIX I -- ACCUMULATION UNIT VALUES 49 TABLE OF CONTENTS FOR STATEMENT OF ADDITIONAL INFORMATION 51
2 GLOSSARY OF SPECIAL TERMS ACCUMULATION PERIOD: The period before the start of Annuity payouts. ACCUMULATION UNIT: A unit of measure used to calculate Separate Account values before we begin to make Annuity payouts to you. ADMINISTRATIVE OFFICE: Located at 200 Hopmeadow Street, Simsbury, CT 06089. The mailing address for correspondence concerning this Contract is P.O. Box 1583, Hartford, CT 06144-1583, except for overnight or express mail packages, which should be sent to: Attention: IPD/Retirement Plan Service Center, 200 Hopmeadow Street, Simsbury, CT 06089. ANNUAL MAINTENANCE FEE: An annual charge for establishing and maintaining a Participant's Account under a Contract. ANNUITANT: The person on whose life Annuity payouts are based. ANNUITANT'S ACCOUNT: An account established at the beginning of the Annuity Period for making Annuity payouts under the Contracts. ANNUITY: A series of payments for life or another designated period. ANNUITY COMMENCEMENT DATE: The date we start to make Annuity payouts to you. ANNUITY PERIOD: The period during which we make Annuity payouts to you. ANNUITY UNIT: A unit of measure in the Separate Account used to calculate the value of Variable Annuity payouts we make to you. BENEFICIARY: The person or persons designated to receive Contract values in the event of the Participant's or Annuitant's death. CODE: The Internal Revenue Code of 1986, as amended. COMMISSION: Securities and Exchange Commission. CONTRACT OWNER: The Employer or entity owning the Contract. CONTRACT YEAR: A period of 12 months beginning with the effective date of the Contract or with any anniversary of the effective date. CONTRIBUTION(S): The amount(s) paid or transferred or rolled over to us by the Contract Owner on behalf of Participants pursuant to the terms of the Contracts. DATE OF COVERAGE: The date on which we receive the application on behalf of a Participant. EMPLOYER: An employer maintaining a Tax Sheltered Annuity plan, a Deferred Compensation Plan, or an Individual Retirement Annuity plan for its employees. FIXED ANNUITY: An Annuity providing for guaranteed payments which remain fixed in amount throughout the payment period and which do not vary with the investment experience of a separate account. GENERAL ACCOUNT: Our General Account that consists of all of our company assets, including any money you have invested in the General Account option. The assets of the General Account are available to the creditors of Hartford. HARTFORD, WE OR US: Hartford Life Insurance Company. MINIMUM DEATH BENEFIT: The minimum amount payable upon the death of a Participant prior to age 65 and before Annuity payments have started. PARTICIPANT (ALSO, "YOU"): Any employee of an Employer electing to participate in a Contract. PARTICIPANT ACCOUNT: An account to which the General Account values and the Separate Account Accumulation Units are allocated on behalf of a Participant under a Contract. PARTICIPANT'S CONTRACT YEAR: A period of twelve (12) months beginning with the Date of Coverage of a Participant and each successive 12-month period. 3 PREMIUM TAX: A tax charged by a state or municipality on premiums, purchase payments or Contract values. RELATED CONTRACT: Another contract or funding vehicle under your plan that may be considered when determining charges or benefits under the Contract described in this prospectus. Your Employer and Hartford agree as to whether another contract or funding vehicle is eligible as a Related Contract. SUB-ACCOUNT VALUE: The value on or before the Annuity Commencement Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for that Sub-Account. SURRENDER: Any partial or complete withdrawal of Contract values. TAX SHELTERED ANNUITY (ALSO "TAX DEFERRED ANNUITY"): An Annuity Contract purchased by an Employer on behalf of its employees that qualifies for special tax treatment under section 403(b) of the Code. VALUATION DAY: Every day the New York Stock Exchange is open for trading. The value of the Separate Account is determined at the close of the New York Stock Exchange (generally 4:00 p.m. Eastern Time). VALUATION PERIOD: The period between the close of business on successive Valuation Days. VARIABLE ANNUITY: An Annuity providing for payments varying in amount in accordance with the investment experience of the assets held in the underlying securities of the Separate Account. 4 FEE TABLE THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT OR, IF YOU ARE A PARTICIPANT, WHEN OPENING, HOLDING AND SURRENDERING A PARTICIPANT ACCOUNT UNDER THE CONTRACT. IN ADDITION TO THE FEES DESCRIBED BELOW, THE CONTRACT OWNER MAY DIRECT US TO DEDUCT ADDITIONAL FEES FOR CERTAIN PLAN RELATED EXPENSES (SEE "PLAN RELATED EXPENSES" UNDER THE SECTION ENTITLED "CONTRACT CHARGES"). IF YOU ARE A CONTRACT OWNER, THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU PURCHASE THE CONTRACT OR SURRENDER THE CONTRACT. IF YOU ARE A PARTICIPANT, THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU OPEN A PARTICIPANT ACCOUNT OR SURRENDER A PARTICIPANT ACCOUNT UNDER THE CONTRACT. CHARGES FOR STATE PREMIUM TAXES MAY ALSO BE DEDUCTED WHEN YOU CONTRIBUTE TO THE CONTRACT, UPON SURRENDER OR WHEN WE START TO MAKE ANNUITY PAYOUTS. CONTRACT OWNER TRANSACTION EXPENSES Sales Load Imposed on Purchases (as a percentage of premium payments) None Transfer Fee (1) $5 Contingent Deferred Sales Charge (as a percentage of amounts surrendered) (2) During First Year 5% During Second Year 4% During Third Year 3% During Fourth Year 2% During Fifth Year 1% During Sixth Year and thereafter 0%
- ------------ (1) The Transfer Fee applies to each transfer in excess of 12 made in a Participant Contract Year. Currently we do not charge the $5 Transfer Fee. The Transfer Fee does not apply to Contracts issued in New York. (2) Each Participant Account has its own Contingent Deferred Sales Charge schedule. The percentage of the Contingent Deferred Sales Charge depends on the number of Participant's Contract Years completed with respect to the Participant's Account before the Surrender. We waive the Contingent Deferred Sales Charge on certain types of Surrenders. See the Contingent Deferred Sales Charge in the Charges and Fees Section of this prospectus. THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY AND ON A DAILY BASIS DURING THE TIME THAT YOU OWN THE CONTRACT OR HAVE A PARTICIPANT ACCOUNT UNDER THE CONTRACT, NOT INCLUDING FEES AND EXPENSES OF THE UNDERLYING FUNDS. ANNUAL MAINTENANCE FEE (3) $30
MAXIMUM SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average daily Sub-Account value) (4) BEFORE ANNUITY COMMENCEMENT DATE:
RANGE OF MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE FOR AGGREGATE PARTICIPANT ACCOUNTSUNDER A CONTRACT CHARGE - -------------------------------------------------------------------------------------------------------------- $0 to $3,499,999.99 1.25% $3,500,000.00 to $4,999,999.99 1.05% $5,000,000.00 to $24,999,999.99 0.85% $25,000,000.00 to $34,999,999.99 0.75% $35,000,000.00 to $49,999,999.99 0.65% $50,000,000.00 to $69,999,999.99 0.50% $70,000,000.00 to $84,999,999.99 0.35% $85,000,000.00 to $99,999,999.99 0.15% $100,000,000.00 and over 0.00% AFTER ANNUITY COMMENCEMENT DATE: All Participant Accounts 1.25%
- ------------ (3) The Annual Maintenance Fee is deducted from the Participant's Account at the end of each calendar quarter and is equal to an annual charge of $30. It is deducted proportionally from the investment options in use at the time of the charge. 5 (4) The Mortality and Expense Risk and Administrative Charge can be reduced (see "Experience Rating Under the Contracts" and "Negotiated Charges and Fees.") We may eliminate or change the Transfer Fee, Contingent Deferred Sales Charge, Mortality and Expense Risk and Administrative Charge and Annual Maintenance Fee. See "Experience Rating Under the Contracts" and "Negotiated Charges and Fees." We may also deduct a charge for Premium Taxes at the time of Surrender. THIS TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL ANNUAL FUND OPERATING EXPENSES CHARGED BY THE UNDERLYING FUNDS THAT YOU MAY PAY ON A DAILY BASIS DURING THE TIME THAT YOU OWN THE CONTRACT OR HAVE A PARTICIPANT ACCOUNT UNDER THE CONTRACT. MORE DETAIL CONCERNING EACH UNDERLYING FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND.
MINIMUM MAXIMUM - -------------------------------------------------------------------------------------------------- TOTAL ANNUAL FUND OPERATING EXPENSES 0.33% 1.28% (these are expenses that are deducted from Fund assets, including management fees, Rule 12b-1 distribution and/or service fees, and other expenses)
THE NEXT TABLE SHOWS THE TOTAL ANNUAL FUND OPERATING EXPENSES FOR EACH UNDERLYING FUND AS OF ITS YEAR END. ACTUAL FEES AND EXPENSES FOR THE UNDERLYING FUNDS VARY DAILY. AS A RESULT, THE FEES AND EXPENSES FOR ANY GIVEN DAY MAY BE GREATER OR LESS THAN THE TOTAL ANNUAL FUND OPERATING EXPENSES LISTED BELOW. MORE DETAIL CONCERNING EACH UNDERLYING FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. THE INFORMATION PRESENTED, INCLUDING ANY EXPENSE REIMBURSEMENT ARRANGEMENTS, IS BASED ON PUBLICLY-AVAILABLE INFORMATION AND IS QUALIFIED IN ITS ENTIRETY BY THE THEN CURRENT PROSPECTUS FOR EACH UNDERLYING FUND. THESE EXPENSES MAY VARY FROM YEAR TO YEAR. ANNUAL FUND OPERATING EXPENSES AS OF THE FUND'S YEAR END (As a percentage of net assets)
DISTRIBUTION ACQUIRED AND/OR FUND MANAGEMENT SERVICE (12B-1) OTHER FEES AND FUNDING OPTION FEE FEES* EXPENSES EXPENSES - --------------------------------------------------------------------------------------------------------------------- RETAIL MUTUAL FUNDS: AIM Small Cap Growth Fund -- Class A 0.690% 0.250% 0.290% N/A Massachusetts Investors Growth Stock 0.330% 0.350% 0.250% N/A Fund --Class A MFS(R) Core Equity Fund -- Class A 0.590% 0.250% 0.310% N/A MFS(R) Mid Cap Growth Fund -- Class A 0.750% 0.250% 0.270% N/A MFS(R) Value Fund --Class A 0.600% 0.350% 0.180% N/A Mutual Shares Fund --Class A 0.570% 0.340% 0.270% N/A Templeton Foreign Fund - - Class A 0.590% 0.250% 0.320% N/A Van Kampen Equity and Income Fund -- 0.350% 0.250% 0.160% N/A Class A AIM SECTOR FUNDS AIM Financial Services Fund -- 0.700% 0.250% 0.330% N/A Investor Class AIM Leisure Fund --Investor Class 0.680% 0.250% 0.300% 0.010% JANUS ADVISER SERIES Janus Adviser Worldwide Fund -- Class 0.610% N/A 0.190% N/A I TOTAL CONTRACTUAL NET TOTAL ANNUAL FEE WAIVER ANNUAL OPERATING AND/OR EXPENSE OPERATING FUNDING OPTION EXPENSES REIMBURSEMENT EXPENSES - -------------------------------------- --------------------------------------------------------- RETAIL MUTUAL FUNDS: AIM Small Cap Growth Fund -- Class A 1.230% N/A 1.230% (1) Massachusetts Investors Growth Stock 0.930% N/A 0.930% Fund --Class A MFS(R) Core Equity Fund -- Class A 1.150% N/A 1.150% (2) MFS(R) Mid Cap Growth Fund -- Class A 1.270% N/A 1.270% MFS(R) Value Fund --Class A 1.130% 0.020% 1.110% (3) Mutual Shares Fund --Class A 1.180% N/A 1.180% Templeton Foreign Fund - - Class A 1.160% N/A 1.160% Van Kampen Equity and Income Fund -- 0.760% N/A 0.760% Class A AIM SECTOR FUNDS AIM Financial Services Fund -- 1.280% N/A 1.280% (4) Investor Class AIM Leisure Fund --Investor Class 1.240% N/A 1.240% (4) JANUS ADVISER SERIES Janus Adviser Worldwide Fund -- Class 0.800% 0.140% 0.660% (5) I
6
DISTRIBUTION ACQUIRED AND/OR FUND MANAGEMENT SERVICE (12B-1) OTHER FEES AND FUNDING OPTION FEE FEES* EXPENSES EXPENSES - --------------------------------------------------------------------------------------------------------------------- INSURANCE COMPANY DEDICATED MUTUAL FUNDS: HARTFORD SERIES FUND, INC. Hartford Advisers HLS Fund -- Class 0.600% N/A 0.030% N/A IA Hartford Dividend and Growth HLS Fund 0.640% N/A 0.030% N/A --Class IA Hartford Index HLS Fund -- Class IA 0.300% N/A 0.030% N/A Hartford Small Company HLS Fund -- 0.670% N/A 0.030% N/A Class IA Hartford Stock HLS Fund -- Class IA 0.460% N/A 0.030% N/A Hartford Total Return Bond HLS Fund 0.460% N/A 0.030% N/A -- Class IA TOTAL CONTRACTUAL NET TOTAL ANNUAL FEE WAIVER ANNUAL OPERATING AND/OR EXPENSE OPERATING FUNDING OPTION EXPENSES REIMBURSEMENT EXPENSES - -------------------------------------- --------------------------------------------------------- INSURANCE COMPANY DEDICATED MUTUAL FUNDS: HARTFORD SERIES FUND, INC. Hartford Advisers HLS Fund -- Class 0.630% N/A 0.630% IA Hartford Dividend and Growth HLS Fund 0.670% N/A 0.670% --Class IA Hartford Index HLS Fund -- Class IA 0.330% N/A 0.330% Hartford Small Company HLS Fund -- 0.700% N/A 0.700% Class IA Hartford Stock HLS Fund -- Class IA 0.490% N/A 0.490% Hartford Total Return Bond HLS Fund 0.490% N/A 0.490% -- Class IA
* The 12b-1 fees deducted from these classes cover certain distribution, shareholder support and administrative services provided by intermediaries (the insurance company, broker dealer or other service provider). NOTES (1) Except as otherwise noted, figures shown in the table are for the year ended December 31, 2007 and are expressed as a percentage of the Fund's average daily net assets. There is no guarantee that actual expenses will be the same as those shown in the table. (2) MFS has agreed in writing to bear the fund's expenses such that Total Annual Fund Operating Expenses, determined without giving effect to the expense offset arrangement described above, do not exceed annually for Class A shares, 1.86%. This written agreement excludes interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, and will continue until at least February 28, 2009. (3) MFS has agreed in writing to reduce its management fee to 0.53% annually between $7.5 billion and $10 billion, 0.50% annually between $10 billion and $12.5 billion, and 0.45% annually in excess of $12.5 billion until at least December 1, 2012. (4) There is no guarantee that actual expenses will be the same as those shown in the table. (5) Annual Fund Operating Expenses are stated both with and without contractual expense waivers by Janus. Janus has contractually agreed to waive certain Fund's total operating expenses (excluding the distribution and shareholder servicing fees, administrative services fee, brokerage commissions, interest, dividends, taxes, and extraordinary expenses) to certain limits until at least December 1, 2009. The expense waivers shown reflect the application of such limits. Included in Other Expenses is an administrative services fee of 0.25% of the average daily net assets of Class S Shares to compensate Janus Services LLC for providing, or arranging for the provision of, recordkeeping, subaccounting, and administrative services to retirement or pension plan participants or other underlying investors investing through institutional channels. The "Management Fee" is the investment advisory fee rate paid by each Fund to Janus Capital as of the end of the fiscal year. For Worldwide Fund this fee may go up or down monthly based on the Fund's performance relative to its benchmark index. Other Expenses may include networking and/or omnibus account fees charged by intermediaries with respect to processing orders in Fund shares. 7 EXAMPLE THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THE EXAMPLES REFLECT A DEDUCTION FOR ANY CONTINGENT DEFERRED SALES CHARGE, ANNUAL MAINTENANCE FEE, MAXIMUM SEPARATE ACCOUNT ANNUAL EXPENSES AT EACH EXPENSE LEVEL AND THE HIGHEST TOTAL ANNUAL FUND OPERATING EXPENSES OF THE UNDERLYING FUNDS. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF ANY APPLICABLE PREMIUM TAXES, INCOME TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT. THE EXAMPLES DO NOT REFLECT ANY DEDUCTION FOR CONTRACT OWNER DIRECTED PLAN RELATED EXPENSES. IF A DEDUCTION FOR PLAN RELATED EXPENSES APPLIED, EXPENSES WOULD BE HIGHER. THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. IN THE FOLLOWING EXAMPLE TABLE, HARTFORD ASSUMES A CONTRACT VALUE OF $10,000 TO ILLUSTRATE THE CHARGES THAT WOULD BE DEDUCTED. THE EXAMPLES ASSUME THE ANNUAL MAINTENANCE FEE WILL ALWAYS BE DEDUCTED IF THE CONTRACT OR PARTICIPANT ACCOUNT IS SURRENDERED. WE CHANGE THE ANNUAL MAINTENANCE FEE FOR A $10,000 CONTRACT VALUE INTO A PERCENTAGE TO MORE EASILY CALCULATE THE CHARGES. THE PERCENTAGE WE USE IS 0.30%. THE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR AND ASSUMES THE HIGHEST TOTAL ANNUAL FUND OPERATING EXPENSES. ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, BASED ON THESE ASSUMPTIONS, YOUR COSTS WOULD BE: EXAMPLE -- 1.25% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $763 3 years $1,182 5 years $1,603 10 years $3,156
(2) If you annuitize at the end of the applicable time period: 1 year $259 3 years $854 5 years $1,473 10 years $3,126
(3) If you do not Surrender your Contract: 1 year $289 3 years $884 5 years $1,503 10 years $3,156
8 EXAMPLE -- 1.05% MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $742 3 years $1,122 5 years $1,501 10 years $2,955
(2) If you annuitize at the end of the applicable time period: 1 year $239 3 years $793 5 years $1,371 10 years $2,925
(3) If you do not Surrender your Contract: 1 year $269 3 years $823 5 years $1,401 10 years $2,955
EXAMPLE -- 0.85% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $722 3 years $1,062 5 years $1,398 10 years $2,750
(2) If you annuitize at the end of the applicable time period: 1 year $218 3 years $732 5 years $1,268 10 years $2,720
(3) If you do not Surrender your Contract: 1 year $248 3 years $762 5 years $1,298 10 years $2,750
9 EXAMPLE -- 0.75% MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $712 3 years $1,031 5 years $1,346 10 years $2,646
(2) If you annuitize at the end of the applicable time period: 1 year $208 3 years $701 5 years $1,216 10 years $2,616
(3) If you do not Surrender your Contract: 1 year $238 3 years $731 5 years $1,246 10 years $2,646
EXAMPLE -- 0.65% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $701 3 years $1,000 5 years $1,295 10 years $2,541
(2) If you annuitize at the end of the applicable time period: 1 year $198 3 years $670 5 years $1,165 10 years $2,511
(3) If you do not Surrender your Contract: 1 year $228 3 years $700 5 years $1,195 10 years $2,541
10 EXAMPLE -- 0.50% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $686 3 years $953 5 years $1,216 10 years $2,382
(2) If you annuitize at the end of the applicable time period: 1 year $182 3 years $623 5 years $1,086 10 years $2,352
(3) If you do not Surrender your Contract: 1 year $212 3 years $653 5 years $1,116 10 years $2,382
EXAMPLE -- 0.35% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $671 3 years $907 5 years $1,138 10 years $2,220
(2) If you annuitize at the end of the applicable time period: 1 year $167 3 years $577 5 years $1,008 10 years $2,190
(3) If you do not Surrender your Contract: 1 year $197 3 years $607 5 years $1,038 10 years $2,220
11 EXAMPLE -- 0.15% MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $650 3 years $844 5 years $1,032 10 years $2,000
(2) If you annuitize at the end of the applicable time period: 1 year $147 3 years $574 5 years $902 10 years $1,970
(3) If you do not Surrender your Contract: 1 year $177 3 years $544 5 years $932 10 years $2,000
EXAMPLE -- 0.00% MORTALITY AND EXPENSE RISK AND ADMINISTRATION CHARGE (1) If you Surrender your Contract at the end of the applicable time period: 1 year $635 3 years $797 5 years $952 10 years $1,833
(2) If you annuitize at the end of the applicable time period: 1 year $131 3 years $467 5 years $822 10 years $1,803
(3) If you do not Surrender your Contract: 1 year $161 3 years $497 5 years $852 10 years $1,833
CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- When Contributions are credited to your Sub-Accounts, they are converted into Accumulation Units by dividing the amount of your Contributions, minus any Premium Taxes, by the Accumulation Unit Value for that day. For more information on how Accumulation Unit Values are calculated see "How do I know what my Participant Account is worth?". Please refer to Appendix I for information regarding Accumulation Unit Values. Accumulation Unit Values may be obtained, free of charge, by calling us at 1-800-528-9009. 12 SUMMARY WHAT ARE THE CONTRACTS? The Contracts are group variable annuity contracts. They are issued in connection with certain Employer programs allowing employee participation and special tax treatment under the Code. WHAT IS THE ACCUMULATION PERIOD? During the Accumulation Period, under the Contracts, the Employer makes Contributions to the Contracts that are used to purchase variable Separate Account interests. Contributions allocated to purchase variable interests may, after the deductions described in this prospectus, be invested in selected Sub-Accounts of a Separate Account. During the Accumulation Period, Participants may allocate monies held in a Separate Account among the available Sub-Accounts of the Separate Account. There may be restrictions under certain circumstances. WHAT IS THE CONTINGENT DEFERRED SALES CHARGE UNDER THE CONTRACT? We do not deduct sales charges at the time Contributions are made to the Contract. We deduct a Contingent Deferred Sales Charge from Surrenders of or from the Contract. The percentage of the Contingent Deferred Sales Charge depends on the number of Participant's Contract Years completed with respect to a Participant's Account before the Surrender. It is a percentage of the amount Surrendered.
CONTINGENT DEFERRED SALES CHARGE AS A PERCENT OF PARTICIPANT PARTICIPANT'S CONTRACT YEARS ACCOUNT - -------------------------------------------------------------------------------- During the First Year 5% During the Second Year 4% During the Third Year 3% During the Fourth Year 2% During the Fifth Year 1% During the Sixth Year and thereafter 0%
We may reduce the amount or term of the Contingent Deferred Sales Charge (see "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). No deduction for Contingent Deferred Sales Charges will be made in certain cases. WHAT CHARGES WILL I PAY ON AN ANNUAL BASIS? MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE: Because we assume certain risks under the Contract, and we provide certain administrative services, we deduct a daily charge against all Contract values held in the Separate Account during the life of the Contract. This is the charge for mortality and expense risk and administrative undertakings. We deduct this charge at an annual rate from the average daily net assets of the Separate Account. The Mortality and Expense Risk and Administrative Charge can be reduced (See "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). Before the Annuity Commencement Date, the rate of the Mortality and Expense Risk and Administrative Charge depends on the amount of the aggregate Participant Accounts and equals:
MORTALITY AND EXPENSE RISK AND AGGREGATE PARTICIPANT ACCOUNTS ADMINISTRATIVE CHARGE - -------------------------------------------------------------------------------- $0 to $3,499,999.99 1.25% $3,500,000.00 to $4,999,999.99 1.05% $5,000,000.00 to $24,999,999.99 0.85% $25,000,000.00 to $34,999,999.99 0.75% $35,000,000.00 to $49,999,999.99 0.65% $50,000,000.00 to $69,999,999.99 0.50% $70,000,000.00 to $84,999,999.99 0.35% $85,000,000.00 to $99,999,999.99 0.15% $100,000,000.00 and over 0.00%
After the Annuity Commencement Date, the rate of the Mortality and Expense Risk and Administrative Charge for all Participant Accounts is 1.25%. 13 ANNUAL MAINTENANCE FEE: We deduct an Annual Maintenance Fee from the value of each Participant Account under a Contract. The maximum Annual Maintenance Fee is $30 per year, but this fee may be reduced or waived (see "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). IS THERE A DEDUCTION FOR PREMIUM TAXES? We deduct during the Accumulation Period and at the time of annuitization, as appropriate, for the payment of any Premium Taxes levied against the Contract by a state or other governmental entity. The Premium Tax rate varies by state or municipality and currently ranges from 0% - 3.5%. IS THERE A DEATH BENEFIT? We will pay a Minimum Death Benefit if a Participant dies before the earlier of the Participant's 65th birthday or the Annuity Commencement Date. PARTICIPANT ACCOUNT LOANS You can request a loan from your Participant Account under certain plans. To obtain a loan, you enter into a loan agreement with Hartford that describes all the terms, conditions, fees or charges of your loan. Your Employer's plan may further restrict the amount of your Participant Account available for a loan. Participant Account loans may not be available in all states or in all Contracts, or may be subject to other restrictions. WHAT IS THE ANNUITY PERIOD? At the end of the Accumulation Period, you can allocate Contract values held less Premium Taxes, if applicable, with respect to your Participant Account to establish Annuitants' Accounts to provide Fixed and/or Variable Annuities under the Contract. WHAT ANNUITY PAYOUT OPTIONS ARE AVAILABLE? When you purchase an Annuity, you may choose one of the following Annuity payout options, or receive a lump sum payment: LIFE ANNUITY where we make monthly Annuity payments for as long as the Annuitant lives. - - Payments under this option stop upon the death of the Annuitant, even if the Annuitant dies after one payment. LIFE ANNUITY WITH 120, 180 OR 240 MONTHLY PAYMENTS CERTAIN where we make monthly payments for the life of the Annuitant with the provision that payments will be made for a minimum of 120, 180 or 240 months, as elected. If, at the death of the Annuitant, payments have been made for less than the minimum elected number of months, then any remaining guaranteed monthly payments will be paid to the Beneficiary unless other provisions have been made and approved by us. UNIT REFUND LIFE ANNUITY where we make monthly payments during the life of the Annuitant and when the Annuitant dies, we pay any remaining value to the Beneficiary. See Annuity payout Option 3 for a discussion of how the remaining value is determined. JOINT AND LAST SURVIVOR ANNUITY where we make monthly payments during the joint lifetime of the Annuitant and a designated individual (called the joint Annuitant) and then throughout the remaining lifetime of the survivor. - - When the Annuity is purchased, the Annuitant elects what percentage (50%, 66 2/3%, or 100%) of the monthly Annuity payout will continue to be paid to the survivor. - - It is possible for an Annuitant and joint Annuitant to receive only one payment in the event of the common or simultaneous death of the Annuitant and joint Annuitant prior to the due date for the second payment. PAYMENTS FOR A DESIGNATED PERIOD where we agree to make monthly payments for the number of years selected. Under the Contracts, the minimum number of years is five. In the event of the Annuitant's death prior to the end of the designated period, the present value of any then remaining payments will be paid in one sum to the Beneficiary unless other provisions have been made and approved by us. - - This option does not involve life contingencies and does not provide any mortality guarantee. Surrenders by the Annuitant are subject to the limitations set forth in the contract and we may deduct a Contingent Deferred Sales Charge. UNDER ANY OF THE ANNUITY PAYOUT OPTIONS ABOVE, EXCEPT THE PAYMENTS FOR A DESIGNATED PERIOD OPTION (ON A VARIABLE BASIS), NO SURRENDERS ARE PERMITTED BY THE ANNUITANT AFTER ANNUITY PAYOUTS COMMENCE. 14 PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance related information concerning its Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. Certain Funds available through Separate Account Eleven are retail mutual funds that publish performance related information in newspapers, magazines, the internet and other media. Performance information published by a retail mutual fund will be different than the performance information published by Separate Account Eleven because performance information of a retail mutual fund does not include the expenses charged by Separate Account Eleven. When a Sub-Account advertises its STANDARDIZED TOTAL RETURN, it will usually be calculated from the date of either the Separate Account's inception or the Sub-Account's inception, whichever is later, for one year, five years, and ten years or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period (assuming the deduction of any contingent deferred sales charge which would be payable if the investment were redeemed at the end of the period). Total return figures reflect a deduction for all total fund operating expenses, the contingent deferred sales charge, the highest charge for mortality and expense risk and administrative undertakings, if applicable, and the highest Annual Maintenance Fee. A Separate Account may also advertise NON-STANDARD TOTAL RETURNS THAT PRE-DATE THE INCEPTION DATE OF THE SEPARATE ACCOUNT. These non-standardized total returns are calculated by assuming that the Sub-Accounts have been in existence for the same periods as the underlying Funds and by taking deductions for charges equal to those currently assessed against the Sub-Accounts. This figure will usually be calculated for one year, five years, and ten years or other periods. Non-standardized total return figures reflect a deduction for total fund operating expenses, the actual charge for mortality, and expense risk and administrative undertakings, if applicable, and do not take into account contingent deferred sales charges or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized total returns. If applicable, a Sub-Account may advertise YIELD IN ADDITION TO TOTAL RETURN. The yield will be computed in the following manner: the net investment income per unit earned during a recent 30 day period is divided by the unit value on the last day of the period. This figure reflects the recurring charges on the Separate Account level including the charge for mortality, expense risk, administrative undertakings and the Annual Maintenance Fee. A money market Sub-Account may advertise YIELD AND EFFECTIVE YIELD. The yield of the Sub-Account is based upon the income earned by the Sub-Account over a seven-day period and then annualized, i.e. the income earned in the period is assumed to be earned every seven days over a 52-week period and stated as a percentage of the investment. Effective yield is calculated similarly but when annualized, the income earned by the investment is compounded in the course of a 52-week period. Yield and effective yield reflect the recurring charges on the Separate Account level. We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for such alternatives. HARTFORD LIFE INSURANCE COMPANY Hartford Life Insurance Company is a stock life insurance company engaged in the business of writing life insurance and annuities, both individual and group, in every state as well as the District of Columbia. We were originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our offices are located in Simsbury, Connecticut; however, our mailing address is P.O. Box 1583, Hartford, CT 06144-1583. We are ultimately controlled by The Hartford Financial Services Group, Inc., one of the largest financial service providers in the United States. 15 THE SEPARATE ACCOUNT We set aside and invest assets of the Contract in the Separate Account. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940. This registration does not involve supervision by the Commission of the management or the investment practices of the Separate Account or Hartford. The Separate Account meets the definition of "separate account" under federal securities law. The Separate Account holds only assets for variable annuity contracts. The Separate Account: - Holds assets for the benefit of Participants and Contract Owners, and the persons entitled to the payments described in the Contract. - Is not subject to the liabilities arising out of any other business Hartford may conduct. However, all obligations under the Contract are general corporate obligations of Hartford. - Is not affected by the rate of return of Hartford's General Account or by the investment performance of any of Hartford's other separate accounts. - May be subject to liabilities from a Sub-Account of the Separate Account that holds assets of other contracts offered by the Separate Account which are not described in this prospectus. - Is credited with income and gains, and takes losses, whether or not realized, from the assets it holds. WE DO NOT GUARANTEE THE INVESTMENT RESULTS OF THE SEPARATE ACCOUNT. THERE IS NO ASSURANCE THAT THE VALUE OF YOUR PARTICIPANT ACCOUNT WILL EQUAL THE TOTAL OF THE CONTRIBUTIONS MADE TO YOUR PARTICIPANT ACCOUNT. In a low interest rate environment, yields for Money Market Sub-Accounts, after deduction of the Mortality and Expense Risk Charge and Administrative Expense Charge, may be negative even though the underlying Fund's yield, before deducting for such charges, is positive. If you, or participants, allocate a portion of the value of a Contract to a Money Market Sub-Account, that portion of the value of the Contract may decrease in value. Separate Account Eleven was established on December 1, 2000. THE FUNDS The Separate Account is divided into "Sub-Accounts." Each Sub-Account invests in an underlying Fund. You choose the Funds that fit your investment goals and risk tolerance. Each Fund has its own investment objective, so each Fund is subject to different risks and expenses. For more complete information about each Fund, including risks and expenses, call us at 1-800-528-9009 to obtain each Fund's prospectus. Before investing, you should carefully read each Fund's prospectus along with this prospectus. We do not guarantee the investment results of any of the underlying Funds. THE FUNDS MAY NOT BE AVAILABLE IN ALL STATES OR IN ALL CONTRACTS. Some of the Funds are retail mutual funds that are also directly available to the public without a Separate Account. If you were to purchase these Funds directly from a broker or mutual fund company, you would not receive the death benefit or incur the expenses of the Separate Account. Some of the Funds are mutual funds that are dedicated exclusively for purchase by insurance company separate accounts. These Funds are not available directly to the public.
SUB-ACCOUNT INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER - --------------------------------------------------------------------------------------------------------------------------------- RETAIL MUTUAL FUNDS AIM Small Cap Growth Fund -- Class A To provide long-term growth of capital Invesco Aim Advisors, Inc. Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. Massachusetts Investors Growth Stock Fund -- Long-term growth of capital and future Massachusetts Financial Services Class A income rather than current income Company
16
SUB-ACCOUNT INVESTMENT OBJECTIVE SUMMARY INVESTMENT ADVISER/SUB-ADVISER - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) Core Equity Fund -- Class A (1) Capital appreciation Massachusetts Financial Services Company MFS(R) Mid Cap Growth Fund -- Class A Long-term growth of capital Massachusetts Financial Services Company MFS(R) Value Fund -- Class A Capital appreciation and reasonable Massachusetts Financial Services income Company Mutual Shares Fund -- Class A Capital appreciation, with income as a Franklin Mutual Advisers, LLC secondary goal Templeton Foreign Fund -- Class A Long-term growth of capital Templeton Global Advisors Limited Van Kampen Equity and Income Fund -- Class A To seek the highest possible income Van Kampen Asset Management consistent with safety of principal. Long term growth of capital is an important secondary investment objective AIM SECTOR FUNDS AIM Financial Services Fund -- Investor Class Capital growth Invesco Aim Advisors, Inc. Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM Leisure Fund -- Investor Class Capital growth Invesco Aim Advisors, Inc. Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. JANUS ADVISER SERIES Janus Adviser Worldwide Fund -- Class I Long-term growth of capital consistent Janus Capital Management LLC with preservation of capital INSURANCE COMPANY DEDICATED MUTUAL FUNDS: HARTFORD SERIES FUND, INC. Hartford Advisers HLS Fund -- Class IA Maximum long-term total return HL Investment Advisors, LLC Sub-advised by Wellington Management Company, LLP Hartford Dividend and Growth HLS Fund -- Class High level of current income HL Investment Advisors, LLC IA consistent with growth of capital Sub-advised by Wellington Management Company, LLP Hartford Index HLS Fund -- Class IA Seeks to provide investment results HL Investment Advisors, LLC which approximate the price and yield Sub-advised by Hartford Investment performance of publicly traded common Management Company stocks in the aggregate Hartford Small Company HLS Fund -- Class IA Growth of capital HL Investment Advisors, LLC Sub-advised by Wellington Management Company, LLP and Hartford Investment Management Company Hartford Stock HLS Fund -- Class IA Long-term growth of capital HL Investment Advisors, LLC Sub-advised by Wellington Management Company, LLP Hartford Total Return Bond HLS Fund -- Class IA Competitive total return, with income HL Investment Advisors, LLC as a secondary objective Sub-advised by Hartford Investment Management Company
(1) Formerly MFS(R) Capital Opportunities Fund -- Class A 17 MIXED AND SHARED FUNDING: Shares of the Funds that are dedicated to insurance company separate accounts are sold to our other separate accounts and our insurance company affiliates or other unaffiliated insurance companies to serve as the underlying investment for both variable annuity contracts and variable life insurance contracts, a practice known as "mixed and shared funding." As a result, there is a possibility that a material conflict may arise between the interests of Contract Owners, and of owners of other contracts whose contract values are allocated to one or more of these other separate accounts investing in any one of the Funds. In the event of any such material conflicts, we will consider what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another Fund. There are certain risks associated with mixed and shared funding. These risks are disclosed in the Funds' prospectus. VOTING RIGHTS: We are the legal owners of all Fund shares held in the Separate Account and we have the right to vote at the Fund's shareholder meetings. To the extent required by federal securities laws or regulations, we will: - Notify the Contract Owner of any Fund shareholders' meeting if the shares held for the Contract may be voted; - Send proxy materials and a form of instructions to the Contract Owner that may be used to tell us how to vote the Fund shares held for the Contract; - Arrange for the handling and tallying of proxies received from Contract Owners; - Vote all Fund shares attributable to a Contract according to instructions received from the Contract Owner; and - Vote all Fund shares for which no voting instructions are received in the same proportion as shares for which instructions have been received. Voting all Fund shares for which no voting instructions are received in the same proportion as shares for which voting instructions have been received may result in a small number of Contract Owners determining the outcome of a proposal subject to a shareholder vote. If any federal securities laws or regulations, or their present interpretation, change to permit us to vote Fund shares on our own, we may decide to do so. Contract Owners may attend any shareholder meeting at which shares held for their Contract may be voted. During the Annuity Period under a Contract, the number of votes will decrease as the assets held to fund the Annuity benefits will decrease. SUBSTITUTION, ADDITION OR DELETION OF FUNDS, SEPARATE ACCOUNTS AND/OR SUB-ACCOUNTS: We reserve the right, subject to any applicable law, to substitute the shares of any other registered investment company for the shares of any Fund held by the Separate Account. Substitution may occur if shares of the Fund(s) become unavailable or due to changes in applicable law or interpretations of law or as we deem appropriate. Current law requires notification to you of any such substitution and approval of the Securities and Exchange Commission. We also reserve the right, subject to any applicable law, to offer additional Sub-Accounts with differing investment objectives, and to make existing Sub-Account options unavailable under the Contracts in the future. We may offer additional separate account options from time to time under these Contracts. Such new options will be subject to the then in effect charges, fees, and or transfer restrictions for the Contracts for such additional separate accounts. FEES AND PAYMENTS RECEIVED BY HARTFORD FROM THE FUND FAMILIES: We want you to know that Hartford receives substantial fees and payments with respect to the underlying funds that are offered as Sub-Accounts to your Plan through the Contract. We consider these fees and payments, among a number of other factors, when deciding to include a fund to the menu of Funds that we offer through the Contract. These fees and payments are received by Hartford under agreements between Hartford and the principal underwriters, transfer agents, investment advisers and/or other entities related to the Funds in amounts up to 0.50% of assets invested in a Fund. These fees and payments may include asset based sales compensation and service fees under distribution and/or servicing plans adopted by funds pursuant to Rule 12b-1 under the Investment Company Act of 1940. They may also include administrative service fees and additional payments, expense reimbursements and compensation sometimes referred to as "revenue sharing" payments. Hartford receives these fees and payments for its own account and expects to make a profit on the amount of the fees and payments that exceed Hartford's own expenses, including our expenses of paying compensation to broker-dealers, financial institutions and other persons for selling the Contracts. 18 We also want you to understand that not all fund families pay the same amount of fees and compensation to us and not all funds pay according to the same formula. Because of this, the amount of the fees and payments received by Hartford varies by fund and Hartford may receive greater or less fees and payments depending on which variable investment options your Plan selects. For Example: As one of its selected investment options in its Group Variable Annuity Contract, the Any Company Retirement Plan maintains an average balance of $100,000 in an investment option investing in shares of a hypothetical mutual fund during the year. If the fund's principal underwriter pays Hartford a Rule 12b-1 fee at a rate of 0.50% of assets annually, and the fund's transfer agent pays Hartford an administrative service fee at a rate of 0.25% of assets annually, Hartford would receive $500 in 12b-1 fees and $250 in administrative service fees, for a total of $750 for that year due to the Plan's investment in the fund. If the Plan maintained an average balance of $100,000 in an investment option investing in a different fund during the year where that fund's principal underwriter pays Hartford a Rule 12b-1 fee at a rate of 0.25% of assets annually, and the fund's transfer agent pays Hartford an administrative services fee at a rate of $12 per Plan Participant Account invested in the investment option investing in the fund, and there are 20 participants with an account balance invested in that investment option, Hartford would receive $250 in 12b-1 fees and $240 in administrative service fees, for a total of $490 for that year due to the Plan's investment in the fund. You should also know that the principal underwriters of certain funds have chosen to offer for sale, and Hartford has selected, fund share classes with asset based sales charges and/or service fees that may or may not be higher than other available share classes of the same fund. As a result of any higher asset based fees and charges paid by investors in such share classes, the amount of fees and payments that might otherwise need to be paid by such fund principal underwriters or their affiliates to Hartford would decrease. Some of the Sub-Accounts available in the Contract invest in Funds that are part of our own affiliated family of funds. In addition to any fees and payments Hartford may receive with respect to those funds, one or more of our affiliates receives compensation from the funds, including among other things a management fee and 12b-1 fees from the funds. For information on which underlying funds pay Hartford such fees and at what level, please visit our website at retire.hartfordlife.com or call 1-800-874-2502, Option 4. Written information will be provided upon request. ENDORSEMENT FEES PAID BY HARTFORD: Hartford pays fees to the organizations listed below in exchange for an endorsement of our Contract. As part of the endorsement, Hartford is invited to participate in various programs, conferences and meetings offered through these organizations in order to allow us to market our Contract. Hartford also pays additional fees in order to sponsor certain programs offered through these organizations including the "Top Cop Awards" program and an annual "Pension and Benefits Seminar" offered to members of these organizations. For additional information on the amount of fees and payments made by Hartford, please call 1-800-874-2502, Option 4. Written information will be provided upon request. Organizations Receiving Endorsement Fee Payments from Hartford: 1. Peace Officers Research Association of California; 2. The National Association of Police Officers; 3. Florida Police Benevolent Association, Inc.; 4. Police Benevolent & Protective Association of Illinois; and 5. Combined Law Enforcement Association of Texas. PAYMENTS TO INDUSTRY AND TRADE ORGANIZATIONS: As an active member of the retirement industry, Hartford makes payments to various industry and trade organizations. These payments are made in connection with Hartford's membership, sponsorship or participation in events of these organizations. Hartford makes these payments in order to communicate its position on retirement industry issues and further its position as an industry leader. 19 GENERAL ACCOUNT OPTION IMPORTANT INFORMATION YOU SHOULD KNOW: THE PORTION OF THE CONTRACT RELATING TO THE GENERAL ACCOUNT OPTION IS NOT REGISTERED UNDER THE SECURITIES ACT OF 1933 ("1933 ACT") AND THE GENERAL ACCOUNT OPTION IS NOT REGISTERED AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 ("1940 ACT"). NEITHER THE GENERAL ACCOUNT OPTION NOR ANY INTEREST IN THE GENERAL ACCOUNT OPTION IS SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 1940 ACT, AND THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION HAS NOT REVIEWED THE DISCLOSURE REGARDING THE GENERAL ACCOUNT OPTION. The General Account option is part of our General Account that includes our company assets. Contributions and Contract values allocated to the General Account option are available to our general creditors. DECLARED RATE OF INTEREST: We credit interest on Contributions made to the General Account at a rate we declare for any period of time that we determine. We may change the declared interest rate from time to time at our discretion. GUARANTEED RATE OF INTEREST: We guarantee a minimum rate of interest. The declared interest rate will not be less than the minimum guaranteed rate of interest. DISTRIBUTIONS AND TRANSFERS: We generally process distributions and transfers from the General Account within a reasonable period of time after we receive a Participant request at our Administrative Office. However, under certain conditions, transfers from the General Account may be limited or deferred. Distributions may be subject to a contingent deferred sales charge and may be deferred. CONTRACT CHARGES CONTINGENT DEFERRED SALES CHARGE: The purpose of the Contingent Deferred Sales Charge is to cover expenses relating to the sale and distribution of the Contracts, including: - the cost of preparing sales literature, - commissions and other compensation paid to distributing organizations and their sales personnel, and - other distribution related activities. If the Contingent Deferred Sales Charge is not sufficient to cover sales and distribution expenses, we pay those expenses from our general assets, including surplus. Surplus might include profits resulting from unused mortality and expense risk charges. There is no deduction for the Contingent Deferred Sales Charge at the time Contributions are made to the Contract. The Contingent Deferred Sales Charge is deducted from Surrenders of or from the Contract. The percentage of the Contingent Deferred Sales Charge depends on the number of Participant's Contract Years completed with respect to a Participant's Account before the Surrender. It is a percentage of the amount Surrendered.
CONTINGENT DEFERRED PARTICIPANT'S CONTRACT YEARS SALES CHARGE - -------------------------------------------------------------------------------- During the First Year 5% During the Second Year 4% During the Third Year 3% During the Fourth Year 2% During the Fifth Year 1% During the Sixth Year and thereafter 0%
We may reduce the amount or term of the Contingent Deferred Sales Charge (see "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). 20 When you request a full Surrender, the Contingent Deferred Sales Charge is deducted from the amount Surrendered and the balance is paid to you. - - Example: You request a full Surrender when the value of your Participant Account is $1,000 and the applicable Contingent Deferred Sales Charge is 5%: Your Sub-Account(s) will be surrendered by $1,000 and you will receive $950 (i.e., the $1,000 Surrender less the 5% Contingent Deferred Sales Charge). If you request a partial Surrender and ask for a specific dollar amount, the Contingent Deferred Sales Charge will be calculated on the total amount that must be withdrawn from your Sub-Account(s) to provide you with the amount requested. - - Example: You ask for $1,000 when the applicable Contingent Deferred Sales Charge is 5%: Your Sub-Account(s) will be reduced by $1,052.63 (i.e., a total withdrawal of $1,052.63 made up of $52.63 in Contingent Deferred Sales Charge plus the $1,000 you requested). The net amount of $1,000 is paid to you. ANNUAL MAINTENANCE FEE: We deduct an Annual Maintenance Fee from the value of each Participant Account under a Contract. The maximum Annual Maintenance Fee is $30 per year, but this fee may be reduced or waived (see "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). We deduct one-quarter of the Annual Maintenance Fee on the last business day of each calendar quarter. However, if you Surrender the value of your Participant Account in full at any time before the last business day of the calendar quarter, we will deduct one quarter of the Annual Maintenance Fee from the proceeds of the Surrender. We do not deduct the Annual Maintenance Fee during the Annuity Period under a Contract. We deduct the Annual Maintenance Fee on a pro rata basis from the value of the Sub-Accounts chosen with respect to a Participant Account. IS THERE EVER A TIME WHEN THE CONTINGENT DEFERRED SALES CHARGE OR ANNUAL MAINTENANCE FEE DO NOT APPLY? We do not deduct the Contingent Deferred Sales Charge and Annual Maintenance Fee from a Surrender from Participant's Account under a Contract in the event of the Participant's: - death, - disability, within the meaning of Code section 72(m)(7) (provided that any such disability would entitle the Participant to receive social security disability benefits), - for 403(b) Contracts, confinement in a nursing home, provided the Participant is confined immediately following at least 90 days of continuous confinement in a hospital or long term care facility, - severance from employment with the Employer on or after the Participant Contract Year 5 for Participants age 59 1/2 or older, - financial hardship (e.g., an immediate and heavy financial need of the Participant other than purchase of a principal residence or payment for post-secondary education), or - in the event that a Participant Account is paid out under one of the available Annuity payout options under the Contracts or under the Systematic Withdrawal Option (except that a Surrender out of Annuity payout option 5 is subject to Contingent Deferred Sales Charges, if applicable). Some of the foregoing events may not apply to Participants under an Individual Retirement Annuity. If you are otherwise eligible to make a withdrawal from your Participant Account under the terms of your Employer's plan, you can withdraw, on a non-cumulative basis, up to 10% of the value of your Participant Account, without application of a Contingent Deferred Sales Charge for each Participant Contract Year after the first Participant Contract Year. The minimum amount you can withdraw under this provision is $250. No deduction for the Contingent Deferred Sales Charge will apply to a transfer to a Related Participant Directed Account Option. A "Related Participant Directed Account Option" is a separate Participant directed investment account under your Employer's plan that your Employer identifies and we accept for the purpose of participant-directed transfers of amounts from the Contract for investment outside of the Contract. The Related Participant Directed Account Option may not be available in all states. MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE: For providing administrative services, and for assuming mortality and expense risks under the Contract, we deduct a daily charge at an annual rate against all Contract values in the Separate Accounts during the life of the Contract. The rate of the charge depends on the aggregate level of Participant Accounts within the Contract anticipated by your Employer within 24 months of initial purchase by your Employer. IF THE ACTUAL AGGREGATE LEVEL OF PARTICIPANT ACCOUNTS WITHIN THE CONTRACT IS LESSER 21 THAN THE ANTICIPATED LEVEL, WE MAY INCREASE THE MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE. IN NO EVENT WILL THE CHARGE EXCEED 1.25%. BEFORE ANNUITY COMMENCEMENT DATE
MORTALITY AND EXPENSE RISK AND AGGREGATE LEVEL OF PARTICIPANT ACCOUNTS ADMINISTRATIVE CHARGE - -------------------------------------------------------------------------------- $0 to $3,499,999.99 1.25% $3,500,000.00 to $4,999,999.99 1.05% $5,000,000.00 to $24,999,999.99 0.85% $25,000,000.00 to $34,999,999.99 0.75% $35,000,000.00 to $49,999,999.99 0.65% $50,000,000.00 to $69,999,999.99 0.50% $70,000,000.00 to $84,999,999.99 0.35% $85,000,000.00 to $99,999,999.99 0.15% $100,000,000.00 and over 0.00%
AFTER ANNUITY COMMENCEMENT DATE
MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE - -------------------------------------------------------------------------------- All Participants 1.25%
When your Employer purchases the Contract, your Employer chooses one of the following two methods that the mortality and expense risk and administrative charge is deducted under the Contract: METHOD ONE: The mortality and expense risk and administrative charge is deducted daily. It is assessed as a percentage of the net asset value of each Fund when Accumulation Unit or Annuity Unit values are determined each day. METHOD TWO: The mortality and expense risk and administrative charge is deducted each calendar quarter. It is assessed as a percentage of the average daily assets of the Sub-Accounts during the calendar quarter. The charge is deducted from your Participant Account by redeeming the Accumulation Units or Annuity Units in proportion to the dollar amount of the charge. Method Two is not available to Contracts issued in New York. The mortality and expense risk and administrative charge compensates us for providing administrative services and for assuming mortality and expense risks under the Contracts. We assume two types of mortality risk and an expense risk: MORTALITY RISK DURING THE ACCUMULATION PERIOD: During the period your Contributions are accumulating, we are required to cover any difference between the Minimum Death Benefit paid and the Participant Account value. These differences may occur during periods of declining value or in periods where the Contingent Deferred Sales Charges would have been applicable. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates. MORTALITY RISK DURING THE ANNUITY PERIOD: Once Annuity payouts have begun, we may be required to make Annuity payouts as long as the Annuitant is living, regardless of how long the Annuitant lives. The risk that we bear during this period is that the actual mortality rates, in aggregate, may be lower than the expected mortality rates. EXPENSE RISK: We also bear an expense risk that the Contingent Deferred Sales Charges collected before the Annuity Commencement Date may not be enough to cover the actual cost of selling, distributing and administering the Contract. Although variable Annuity payouts will fluctuate with the performance of the underlying Fund selected, your Annuity payouts will NOT be affected by (a) the actual mortality experience of our Annuitants, or (b) our actual expenses if they are greater than the deductions stated in the Contract. Because we cannot be certain how long our Annuitants will live, we charge this percentage fee based on the mortality tables currently in use. This charge enables us to keep our commitments and to pay you as planned. We also provide various administrative support services for Plans. These services include recordkeeping, statements of account, internet and automated voice response account access, and participant educational materials., including the fees paid to distributors. If the mortality and expense risk and administrative charge under a Contract is insufficient to cover actual costs incurred by us, we will bear the loss. If the mortality and expense risk and administrative charge exceeds these costs, we will keep the excess as profit. We may use these profits, as well as revenue sharing and Rule 12b-1 fees received from 22 certain Funds, for any proper corporate purpose including, among other things, payment of sales expenses, including the fees paid to distributors. We expect to make a profit from the mortality and expense risk and administrative charge. We may reduce the mortality and expense risk and administrative charge under the Contracts (see "Experience Rating under the Contracts" and "Negotiated Charges and Fees"). PREMIUM TAXES: We deduct a charge for Premium Tax, if applicable, imposed by a state or other governmental entity. Certain states and municipalities impose a Premium Tax, generally ranging up to 3.50%. In some cases, Premium Taxes are deducted at the time purchase payments are made; in other cases Premium Tax is assessed at the time of annuitization. We will pay Premium Taxes at the time imposed under applicable law. At our sole discretion, we may deduct Premium Taxes at the time we pay such taxes to the applicable taxing authorities, at the time the Contract is surrendered, at the time a death benefit is paid, or at the time a Participant annuitizes. TRANSFER FEE: You can transfer your Participant Account values between or among the Sub-Accounts up to 12 times per Participant Contract Year. A Transfer Fee of $5 may apply to each transfer in excess of 12 made in a Participant Contract Year. We do not currently charge the $5 Transfer Fee. The Transfer Fee does not apply to Contracts issued in New York. EXPERIENCE RATING UNDER THE CONTRACTS: We may apply experience credits under a Contract based on investment, administrative, mortality or other factors, including, but not limited to: (1) the total number of Participants, (2) the sum of all Participants' Account values, (3) the allocation of Contract values between the General Account and the Separate Account under the Contract, (4) present or anticipated levels of Contributions, distributions, transfers, administrative expenses or commissions, and (5) whether we are the exclusive annuity contract provider. Experience credits can take the form of a reduction in the deduction for mortality, expense risk and administrative undertakings, a reduction in the term or amount of any applicable Contingent Deferred Sales Charges, an increase in the rate of interest credited under the Contract, a reduction in the amount of the Annual Maintenance Fee, a reduction in the amount of the Transfer Fee, or any combination of the foregoing. We may apply experience credits either prospectively or retrospectively. We may apply and allocate experience credits in such manner as we deem appropriate. Any such credit will not be unfairly discriminatory against any person, including the affected Contract Owners or Participants. Experience credits have been given in certain cases. Participants in Contracts receiving experience credits will receive notification regarding such credits. Experience credits may be discontinued at our sole discretion in the event of a change in applicable factors. For Contracts issued in New York, we may only apply experience credits prospectively. NEGOTIATED CHARGES AND FEES: The charges and fees described in this section vary from Contract to Contract, depending on plan characteristics. The Contract Owner can negotiate charges and fees. This flexibility allows us and the Contract Owner to custom design a charge and fee structure that meets the financial goals of both the Contract Owner and Hartford. CHARGES OF THE FUNDS: The investment performance of each Fund reflects the management fee that the Fund pays to its investment manager as well as other operating expenses that the Fund incurs. Investment management fees are generally daily fees computed as a percentage of a Fund's average daily net assets as an annual rate. Please read the prospectus for each Fund for complete details. PLAN RELATED EXPENSES: The Contract Owner may direct us to deduct amounts from the assets under a Contract to pay certain administrative expenses or other Plan related expenses including, but not limited to, fees to consultants, auditors and other Plan service providers. We will deduct and pay such amounts to the Contract Owner or as directed by the Contract Owner. We may agree to include these amounts as an adjustment to the charge for administrative undertakings for the Separate Account. THE CONTRACTS THE CONTRACTS OFFERED: The Contracts are group variable annuity contracts offered to: - Tax deferred annuity programs adopted according to Section 403(b) of the Code by public school systems and certain tax-exempt organizations described in Section 501(c)(3) of the Code; - Deferred compensation plans as defined in Section 457 of the Code sponsored by governmental employers or by certain tax exempt organizations described in Section 501(c)(3) of the Code; - Retirement plans qualified under Sections 401(a) or 403(a) of the Code; and 23 - Individual Retirement Annuity programs adopted according to Section 408 of the Code. The Contracts are not available for issuance except as described above. ASSIGNMENTS: The Contract and a Participant's interest in a Contract cannot be assigned, transferred or pledged. PRICING AND CREDITING OF CONTRIBUTIONS: We credit initial Contributions to your Participant Account within two Valuation Days of our receipt of a properly completed application and the initial Contribution at our Administrative Office. If the application or other information accompanying the initial Contribution is incomplete when received, we will hold the money in a non-interest bearing account for up to five Valuation Days while we try to obtain complete information. If we cannot obtain the information within five Valuation Days, we will either return the Contribution and explain why it could not be processed or keep the Contribution if the Participant authorizes us to keep it until the necessary information is provided. Subsequent Contributions properly designated for your Participant Account that are received prior to the close of the New York Stock Exchange will be invested on the same Valuation Day. Subsequent Contributions properly designated for your Participant Account that are received on a Non-Valuation Day or after the close of the New York Stock Exchange will be invested on the next Valuation Day. MAY I CANCEL MY CERTIFICATE? For certificates issued in Massachusetts, New York, North Carolina and Utah in connection with 403(b) Contracts, you have a limited right to return your certificate for cancellation. We urge you to closely examine its provisions. If for any reason you are not satisfied with your certificate, simply return it within the timeframe specified after you receive it with a written request for cancellation that indicates your tax-withholding instructions. We will not deduct any Contingent Deferred Sales Charges during this time. We may require additional information before we can cancel your certificate. You bear the investment risk from the time the certificate is issued until we receive your complete cancellation request. The amount we pay you upon cancellation depends on the requirements of the state where you purchased your certificate. WHAT IS A SURRENDER CHARGE OFFSET? You may be eligible to receive a credit to your Participant Account if you elect to make a Contribution that is transferred from a contract of another carrier within your Plan. The credit is equal to the surrender charge you incurred from the other carrier when you make the transfer, and is limited to a maximum credit of 7%. To be eligible, you must transfer the Contribution initially to the General Account, but you may reallocate the amount afterwards as permitted by the Contract. Your Employer may also be eligible for a Group Surrender Charge Offset if the initial payment made to the Contract consists of a transfer of funds held by the plan under an investment vehicle issued by another carrier. If, by reason of the transfer, the plan has paid, or will pay, a surrender charge, market value adjustment or other discontinuance penalty to the other carrier, Hartford will reimburse the plan not to exceed 7% of transferred assets. MAY I MAKE CHANGES IN THE AMOUNTS OF MY CONTRIBUTION? Yes. There is a $30 minimum amount for initial Contributions or subsequent Contributions that may be made on behalf of a Participant Account under a Contract, unless the Employer's plan provides otherwise, in which case the minimum amount shall not be less than $10. If the Plan adopted by the Contract Owner so provides, the Contract permits the allocation of Contributions, in multiples of 1% among the several Sub-Accounts of the Separate Account. The minimum amount that may be allocated to any Sub-Account in a Separate Account shall not be less than $10. Such changes must be requested in the form and manner prescribed by us. CAN YOU TRANSFER FROM ONE SUB-ACCOUNT TO ANOTHER? During those phases of your Contract when transfers are permissible, you may make transfers between Sub-Accounts according to the following policies and procedures, as they may be amended from time to time. 24 WHAT IS A SUB-ACCOUNT TRANSFER? A Sub-Account transfer is a transaction requested by you that involves reallocating part or all of your Participant Account value among the Funds available in your Contract. Your transfer request will be processed as of the end of the Valuation Day that it is received in good order. Otherwise, your request will be processed on the following Valuation Day. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly reporting any inaccuracy or discrepancy to us and your Registered Representative. Any oral communication should be re-confirmed in writing. WHAT HAPPENS WHEN YOU REQUEST A SUB-ACCOUNT TRANSFER? Many Participants request Sub-Account transfers. Some request transfers into (purchases) a particular Sub-Account, and others request transfers out of (redemptions) a particular Sub-Account. In addition, some Participants allocate Contributions to Sub-Accounts, and others request Surrenders. We combine all the daily requests to transfer out of a Sub-Account along with all Surrenders from that Sub-Account and determine how many shares of that Fund we would need to sell to satisfy all Participants' "transfer-out" requests. At the same time, we also combine all the daily requests to transfer into a particular Sub-Account or Contributions allocated to that Sub-Account and determine how many shares of that Fund we would need to buy to satisfy all Participants' "transfer-in" requests. In addition, many of the Funds that are available as investment options in our variable annuity products are also available as investment options in variable life insurance policies, retirement plans, funding agreements and other products offered by us or our affiliates. Each day, investors and participants in these other products engage in similar transfer transactions. We take advantage of our size and available technology to combine sales of a particular Fund for many of the variable annuities, variable life insurance policies, retirement plans, funding agreements or other products offered by us or our affiliates. We also combine many of the purchases of that particular Fund for many of the products we offer. We then "net" these trades by offsetting purchases against redemptions. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. This means that we sometimes reallocate shares of a Fund rather than buy new shares or sell shares of the Fund. For example, if we combine all transfer-out (redemption) requests and Surrenders of a stock Fund Sub-Account with all other sales of that Fund from all our other products, we may have to sell $1 million dollars of that Fund on any particular day. However, if other Participants and the owners of other products offered by us, want to transfer-in (purchase) an amount equal to $300,000 of that same Fund, then we would send a sell order to the Fund for $700,000 (a $1 million sell order minus the purchase order of $300,000) rather than making two or more transactions. WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? FIRST, YOU MAY MAKE ONLY ONE SUB-ACCOUNT TRANSFER REQUEST EACH DAY. WE LIMIT EACH PARTICIPANTS TO ONE SUB-ACCOUNT TRANSFER REQUEST EACH VALUATION DAY. We count all Sub-Account transfer activity that occurs on any one Valuation Day as one "Sub-Account transfer," however, you cannot transfer the same Participant Account value more than once a Valuation Day. FOR EXAMPLE: - If the only transfer you make on a day is a transfer of $10,000 from one Sub-Account into another Sub-Account, it would count as one Sub-Account transfer. - If, however, on a single day you transfer $10,000 out of one Sub-Account into five other Sub-Accounts (dividing the $10,000 among the five other Sub-Accounts however you chose), that day's transfer activity would count as one Sub-Account transfer. - Likewise, if on a single day you transferred $10,000 out of one Sub-Account into ten other Sub-Accounts (dividing the $10,000 among the ten other Sub-Account however you chose), that day's transfer activity would count as one Sub-Account transfer. - Conversely, if you have $10,000 in Participant Account value distribution among 10 different Sub-Accounts and you request to transfer the Participant Account value in all those Sub-Accounts into one Sub-Account, that would also count as one Sub-Account transfer. - However, you cannot transfer the same Participant Account value more than once in one day. That means if you have $10,000 in a Money Market Fund Sub-Account and you transfer all $10,000 into a Stock Fund 25 Sub-Account, on that same day you could not then transfer the $10,000 out of the Stock Fund Sub-Account into another Sub-Account. SECOND, YOU ARE ALLOWED TO SUBMIT A TOTAL OF 20 SUB-ACCOUNT TRANSFERS EACH CALENDAR YEAR (the "Transfer Rule") by U.S. Mail, Voice Response Unit, Internet, telephone, same day mail or courier service. Once you reach the maximum number of Sub-Account transfers, you may only submit any additional Sub-Account transfer requests (and any trade cancellation requests) in writing through U.S. Mail or overnight delivery service. In other words, Voice Response Unit, Internet or telephone transfer requests will not be honored. We may, but are not obligated to, notify you when you are in jeopardy of approaching these limits. For example, we will send you a letter after your 10th Sub-Account transfer to remind you about the Transfer Rule. After your 20th transfer request, our computer system will not allow you to do another Sub-Account transfer by telephone, Voice Response Unit or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service. We may aggregate a Contract owner's Contracts or a Participant's Participant Accounts for the purposes of enforcing these restrictions. The Transfer Rule does not apply to Sub-Account transfers that occur automatically as part of a Company sponsored asset allocation or Dollar Cost Averaging program. Reallocations made based on a Fund merger or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law. THE CONTRACTS PROVIDE FOR A TRANSFER FEE OF $5 THAT APPLIES TO EACH TRANSFER IN EXCESS OF 12 MADE IN A PARTICIPANT CONTRACT YEAR. WE DO NOT CURRENTLY CHARGE THE $5 TRANSFER FEE. WE MAKE NO ASSURANCES THAT THE TRANSFER RULE IS OR WILL BE EFFECTIVE IN DETECTING OR PREVENTING MARKET TIMING. THIRD, POLICIES HAVE BEEN DESIGNED TO RESTRICT EXCESSIVE SUB-ACCOUNT TRANSFERS. You should not purchase or become a Participant under this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don't purchase or become a Participant under this Contract if you plan to engage in "market timing," which includes frequent transfer activity into and out of the same Fund, or frequent Sub-Account transfers in order to exploit any inefficiencies in the pricing of a Fund. Even if you do not engage in market timing, certain restrictions may be imposed on you, as discussed below: FUND TRADING POLICIES You are subject to Fund trading policies, if any. We are obligated to provide, at the Fund's request, tax identification numbers and other shareholder identifying information contained in our records to assist Funds in identifying any pattern or frequency of Sub-Account transfers that may violate their trading policy. In certain instances, we have agreed to serve as a Fund's agent to help monitor compliance with that Fund's trading policy. We are obligated to follow each Fund's instructions regarding enforcement of their trading policy. Penalties for violating these policies may include, among other things, temporarily or permanently limiting or banning Sub-Account transfers into a Fund or other funds within that fund complex. These penalties will affect a Contract Owner's or Participant's ability to purchase shares of the underlying funds. We are not authorized to grant exceptions to a Fund's trading policy. Please refer to each Fund's prospectus for more information. Fund trading policies do not apply or may be limited. For instance: - Certain types of financial intermediaries may not be required to provide us with shareholder information. - "Excepted funds" such money market funds and any Fund that affirmatively permits short-term trading of its securities may opt not to adopt this type of policy. This type of policy may not apply to any financial intermediary that a Fund treats as a single investor. - A Fund can decide to exempt categories of Contract Owners whose contracts are subject to inconsistent trading restrictions or none at all. - Non-shareholder initiated purchases or redemptions may not always be monitored. These include Sub-Account transfers that are executed: (i) automatically pursuant to a company sponsored contractual or systematic program such as transfers of assets as a result of "dollar cost averaging" programs, asset allocation programs, automatic rebalancing programs, annuity payouts, loans, or systematic withdrawal programs; (ii) as a result of the payment of a Death Benefit; (iii) as a result of any deduction of charges or fees under a Contract; or (iv) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan contributions. 26 POSSIBILITY OF UNDETECTED ABUSIVE TRADING OR MARKET TIMING. We may not be able to detect or prevent all abusive trading activities. For instance, - Since we net all the purchases and redemptions for a particular Fund for this and many of our other products, transfers by any specific market timer could be inadvertently overlooked. - Certain forms of variable annuities and types of Funds may be attractive to market timers. We can not provide assurances that we will be capable of addressing possible abuses in a timely manner. - These policies apply only to individuals and entities that own or are Participants under this Contract. However, the Funds that make up the Sub-Accounts of this Contract are available for use with many different variable life insurance policies, variable annuity products and funding agreements, and they are offered directly to certain qualified retirement plans. Some of these products and plans may have different or less restrictive transfer rules or no transfer restrictions at all. HOW ARE YOU AFFECTED BY FREQUENT SUB-ACCOUNT TRANSFERS? We are not responsible for losses or lost investment opportunities associated with the effectuation of these policies. Frequent Sub-Account transfers may result in the dilution of the value of the outstanding securities issued by a Fund as a result of increased transaction costs and lost investment opportunities typically associated with maintaining greater cash positions. This can adversely impact Fund performance and, as a result, the performance of your Participant Account. This may also lower the Death Benefit paid to your Beneficiary or lower Annuity Payouts for your payee as well as reduce value of other optional benefits available under your Contract. Separate Account investors could be prevented from purchasing Fund shares if we reach an impasse on the execution of a Fund's trading instructions. In other words, a Fund complex could refuse to allow new purchases of shares by all our variable product investors if the Fund and we can not reach a mutually acceptable agreement on how to treat an investor who, in a Fund's opinion, has violated the Fund's trading policy. In some cases, we do not have the tax identification number or other identifying information requested by a Fund in our records. In those cases, we rely on the Contract Owner to provide the information. If the Contract Owner does not provide the information, we may be directed by the Fund to restrict the Contract Owner from further purchases of Fund shares. In those cases, all Participants under a plan funded by the Contract will also be precluded from further purchases of Fund shares. GENERAL ACCOUNT OPTION TRANSFERS You may make transfers out of the General Account Option to the Sub-Accounts, subject to the transfer restrictions discussed below. All transfer allocations must be in whole numbers (e.g., 1%). For Contracts issued or amended on or after May 1, 1992: - Transfers of assets presently held in the General Account option, or which were held in the General Account option at any time during the preceding three months, to any account that we determine is a competing account, may be prohibited. We do not currently enforce this prohibition. - Similarly, transfers of assets presently held in any account during the preceding three months, that we determine is a competing account, to the General Account option, may be prohibited. We do not currently enforce this prohibition. In addition, we may limit the maximum amount transferred or Surrendered from the General Account option under a Participant Account to 1/6 of such portion of the Participant Account held in the General Account option in any one Participant Contract Year. We apply these restrictions to all transfers from the General Account Option, including all systematic transfers and Dollar Cost Averaging Programs. As a result of these limitations, it may take a longer period of time (i.e., several years) to move Participant Account values in the General Account Option to Sub-Accounts and therefore this may not provide an effective short term defensive strategy. TELEPHONE AND INTERNET TRANSFERS Transfer instructions received by telephone on any Valuation Day before the end of any Valuation Day will be carried out that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. 27 Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgement we return to you. If the time and date indicated on the acknowledgement is before the end of any Valuation Day, the instructions will be carried out that Valuation Day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgement, you should contact us as soon as possible. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly advising us of any errors within 30 days of receiving the confirmation. Telephone or Internet transfer requests may currently only be cancelled by calling us before the end of the Valuation Day you made the transfer request. We, our agents or our affiliates are NOT responsible for losses resulting from telephone or electronic requests that we believe are genuine. We will use reasonable procedures to confirm that instructions received by telephone or through our website are genuine, including a requirement that Contract Owners and Participants provide certain identification information, including a personal identification number. We record all telephone transfer instructions. We may suspend, modify, or terminate telephone or electronic transfer privileges at any time. DOLLAR COST AVERAGING: If, during the Accumulation Period, the portion of your Contract values held under the General Account option is at least $5,000, or the value of your Accumulation Units held under the Hartford Money Market HLS Sub-Account is at least $5,000, you may choose to have a specified dollar amount transferred from either the General Account option or the Hartford Money Market HLS Sub-Account, whichever meets the applicable minimum value, to other Sub-Accounts of the Separate Account at monthly, semi-monthly, quarterly, semi-annual or annual intervals ("transfer intervals"). This is known as Dollar Cost Averaging. The main objective of a Dollar Cost Averaging program is to minimize the impact of short term price fluctuations. Since the same dollar amount is transferred to other Sub-Accounts at set intervals, more units are purchased in a Sub-Account if the value per unit is low and less units are purchased if the value per unit is high. Therefore, a lower average cost per unit may be achieved over the long term. A Dollar Cost Averaging program allows investors to take advantage of market fluctuations. However, it is important to understand that Dollar Cost Averaging does not assure a profit or protect against a loss in declining markets. The minimum amount that may be transferred to any one Sub-Account at a transfer interval is $100. The transfer date will be the monthly, quarterly, semi-annual or annual anniversary, as applicable, of your first transfer under your initial Dollar Cost Averaging election. The first transfer will commence within five (5) business days after we receive your initial election either on an appropriate election form in good order or by telephone subject to the telephone transfer procedures detailed above. The dollar amount will be allocated to the Sub-Accounts that you specify, in the proportions that you specify on the appropriate election form that we provide or over our recorded telephone line. You may specify a maximum of five (5) Sub-Accounts. If, on any transfer date, your General Account value or the value of your Accumulation Units under the Money Market HLS Sub-Account, as applicable, is less than the amount you have elected to have transferred, your Dollar Cost Averaging program will end. You may cancel your Dollar Cost Averaging election by sending us a written notice at our Administrative Office or by calling one of our representatives at 1-800-528-9009 and giving us notice on our recorded telephone line. Transfers out of the General Account Option may be subject to certain restrictions. For information regarding these restrictions, please refer to "General Account Option Transfers" under the section entitled "The Contracts". MAY I REQUEST A LOAN FROM MY PARTICIPANT ACCOUNT? During the Accumulation Period, a Participant under a Tax Sheltered Annuity plan may request a loan from his or her Participant Account. Loans from a Participant's Account may not be available in all states or may be subject to restrictions. You must pay back your loan according to the payment schedule set by the terms of your loan agreement. The loan agreement describes the terms, conditions, any fees or charges of your loan. Loans will have a permanent effect on the Participant's Account because the investment results of each Sub-Account will apply only to the amount remaining in such Sub-Account. The longer a loan is outstanding, the greater the impact on the Participant's Account is likely to be. Also, if not repaid, the outstanding loan balance will reduce the death benefit otherwise payable to the Beneficiary. 28 HOW DO I KNOW WHAT MY PARTICIPANT ACCOUNT IS WORTH? Your Participant Account value reflects the sum of the amounts under your Participant Account allocated to the General Account option and the Sub-Accounts. There are two things that affect your Sub-Account value: (1) the number of Accumulation Units and (2) the Accumulation Unit value. The Sub-Account value is determined by multiplying the number of Accumulation Units by the Accumulation Unit value. Therefore, on any Valuation Day the portion of your Participant Account allocated to the Sub-Accounts will reflect the investment performance of the Sub-Accounts and will fluctuate with the performance of the underlying Funds. Contributions made or Contract values allocated to a Sub-Account are converted into Accumulation Units by dividing the amount of the Contribution or allocation, minus any Premium Taxes, by the Accumulation Unit value for that Valuation Day. The more Contributions or Contract values allocated to the Sub-Accounts under your Participant Account, the more Accumulation Units will be reflected under your Participant Account. You decrease the number of Accumulation Units in a Sub-Account under your Participant Account by requesting Surrenders, transferring money out of a Sub-Account, submitting a Death Benefit claim or by electing an annuity payout from your Participant Account. To determine the current Accumulation Unit value, we take the prior Valuation Day's Accumulation Unit value and multiply it by the Net Investment Factor for the current Valuation Day. The value of the Separate Account is determined at the close of the New York Stock Exchange (generally 4:00 p.m. Eastern Time). The Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. At the time your Employer purchases the Contract, your Employer chooses one of the following two methods to calculate the Net Investment Factor: METHOD ONE The Net Investment Factor for each Sub-Account equals: - The net asset value per share of each Fund held in the Sub-Account at the end of the current Valuation Day, divided by - The net asset value per share of each Fund held in the Sub-Account at the end of the prior Valuation Day; minus - The daily mortality and expense risk and administration charge adjusted for the number of days in the period. METHOD TWO (NOT AVAILABLE TO CONTRACTS ISSUED IN NEW YORK) The Net Investment Factor for each Sub-Account equals: - The net asset value per share of each Fund held in the Sub-Account at the end of the current Valuation Day divided by - The net asset value per share of each Fund held in the Sub-Account at the end of the prior Valuation Day. We will send you a statement for each calendar quarter, that tells you how many Accumulation Units you have, their value and your total Participant Account value. You can also call 1-800-528-9009 to obtain your Participant Account value or, where available, you may access your account information through our website at retire.hartfordlife.com. HOW ARE THE UNDERLYING FUND SHARES VALUED? The shares of the Fund are valued at net asset value on a daily basis. A complete description of the valuation method used in valuing Fund shares may be found in the underlying Funds' prospectus. 29 DEATH BENEFITS DETERMINATION OF THE BENEFICIARY: The Beneficiary is the person or persons designated to receive payment of the death benefit upon the death of the Participant. If no designated Beneficiary remains living at the death of the Participant, the Participant's estate is the Beneficiary. DEATH BEFORE THE ANNUITY COMMENCEMENT DATE: - DEATH PRIOR TO AGE 65: If the Participant dies before the Annuity Commencement Date or the Participant's attainment of age 65 (whichever comes first) the Minimum Death Benefit is payable to the Beneficiary. The Minimum Death Benefit is the greater of (a) the value of your Participant Account determined as of the day we receive Due Proof of Death and our receipt of a completed settlement instruction at our Administrative Offices or (b) 100% of the total Contributions made to your Participant Account, reduced by any prior partial Surrenders or outstanding loan indebtedness. For Contracts purchased in Illinois, the Minimum Death Benefit is the greater of (a) the value of your Participant Account determined as of the day we receive Due Proof of Death at our Administrative Offices or (b) 100% of the total Contributions made to your Participant Account, reduced by any prior partial Surrender or outstanding loan indebtedness. To the extent you have Related Contracts under your plan, we may take into consideration corresponding Participant Account Values, Contributions, Surrenders, or loan indebtedness in calculating the Minimum Death Benefit. The value of a Participant's Account on any Valuation Day before the Annuity Commencement Date will be reduced by any applicable Premium Taxes not already deducted. - DEATH ON OR AFTER AGE 65: If the Participant dies before the Annuity Commencement Date but on or after the Participant's 65th birthday, the Beneficiary(ies) will receive the value of your Participant Account (less any applicable Premium Taxes not already deducted) as of the Date we receive Due Proof of Death and our receipt of a completed settlement instruction at our Administrative Offices. For Contracts purchased in Illinois, the Beneficiary(ies) will receive the value of your Participant Account (less any applicable Premium Taxes not already deducted) as of the Date we receive Due Proof of Death at our Administrative Offices. CALCULATION OF THE DEATH BENEFIT: Except for Contracts purchased in Illinois, if the Participant dies before the Annuity Commencement Date, the death benefit will be calculated as of the date we receive Due Proof of Death and our receipt of a completed settlement instruction. THE DEATH BENEFIT REMAINS INVESTED IN THE SEPARATE ACCOUNT AND/OR GENERAL ACCOUNT OPTION ACCORDING TO YOUR LAST INSTRUCTIONS UNTIL THE PROCEEDS ARE PAID OR WE RECEIVE NEW SETTLEMENT INSTRUCTIONS FROM THE BENEFICIARY. DURING THE TIME PERIOD BETWEEN OUR RECEIPT OF DUE PROOF OF DEATH AND OUR RECEIPT OF THE COMPLETED SETTLEMENT INSTRUCTIONS, THE CALCULATED DEATH BENEFIT WILL BE SUBJECT TO MARKET FLUCTUATIONS. UPON RECEIPT OF COMPLETE SETTLEMENT INSTRUCTIONS, WE WILL CALCULATE THE PAYABLE AMOUNT. If the proceeds are taken in a single sum, payment will normally be made within seven days of our receipt of completed settlement instructions. You may apply the death benefit payment to any one of the Annuity payout options (see "Annuity Payout Options") instead of receiving the death benefit payment in a single sum. An election to receive payment of death benefits under an Annuity payout option must be made before a lump sum settlement and within one year after the death by written notice to us at our Administrative Offices. Proceeds due on death may be applied to provide variable payments, fixed payments, or a combination of variable and fixed payments. No election to provide Annuity payouts will become operative unless the initial Annuity payout is at least $20 on either a variable or fixed basis, or $20 on each basis when a combination benefit is elected. The manner in which the Annuity payouts are determined and in which they may vary from month to month are the same as applicable to a Participant's Account after retirement (see "How are Contributions made to establish my Annuity Account?"). DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE: If the Annuitant dies on or after the Annuity Commencement Date, there may be no payout at death unless the Annuitant has elected an Annuity payout option that permits the Beneficiary to elect to continue Annuity payouts or receive the commuted value. 30 SETTLEMENT PROVISIONS IMPORTANT TAX INFORMATION: THERE ARE CERTAIN RESTRICTIONS ON SECTION 403(b) TAX- SHELTERED ANNUITIES. AS OF DECEMBER 31, 1988, ALL SECTION 403(b) ANNUITIES HAVE LIMITS ON FULL AND PARTIAL SURRENDERS. CONTRIBUTIONS TO THE CONTRACT MADE AFTER DECEMBER 31, 1988 AND ANY INCREASES IN CASH VALUE AFTER DECEMBER 31, 1988 MAY NOT BE DISTRIBUTED UNLESS THE CONTRACT OWNER/EMPLOYEE HAS A) ATTAINED AGE 59 1/2, B) A SEVERANCE FROM EMPLOYMENT, C) DIED, D) BECOME DISABLED OR E) EXPERIENCED FINANCIAL HARDSHIP (CASH VALUE INCREASES MAY NOT BE DISTRIBUTED FOR HARDSHIPS PRIOR TO AGE 59 1/2 ). DISTRIBUTIONS PRIOR TO AGE 59 1/2 DUE TO FINANCIAL HARDSHIP OR SEPARATION FROM SERVICE MAY STILL BE SUBJECT TO A PENALTY TAX OF 10%. WE WILL NOT ASSUME ANY RESPONSIBILITY FOR DETERMINING WHETHER A WITHDRAWAL IS PERMISSIBLE, WITH OR WITHOUT TAX PENALTY, IN ANY PARTICULAR SITUATION; OR IN MONITORING WITHDRAWAL REQUESTS REGARDING PRE OR POST JANUARY 1, 1989 CONTRACT VALUES. ANY FULL OR PARTIAL SURRENDER DESCRIBED ABOVE MAY AFFECT THE CONTINUING TAX-QUALIFIED STATUS OF SOME CONTRACTS OR PLANS AND MAY RESULT IN ADVERSE TAX CONSEQUENCES TO THE CONTRACT OWNER. THE CONTRACT OWNER, THEREFORE, SHOULD CONSULT WITH A TAX ADVISER BEFORE UNDERTAKING ANY SUCH SURRENDER. (SEE "FEDERAL TAX CONSIDERATIONS") After termination of Contributions on behalf of a Participant prior to the selected Annuity Commencement Date for that Participant, you will have the following options: 1. CONTINUE THE PARTICIPANT'S ACCOUNT UNDER THE CONTRACT. Under this option, when the selected Annuity Commencement Date arrives, payments will begin under the selected Annuity payout option. (See "Annuity payout options"). At any time before the Annuity Commencement Date, a Participant may Surrender his or her Participant Account for a lump sum cash settlement in accordance with 3. below. 2. TO PROVIDE ANNUITY PAYOUTS IMMEDIATELY. The values in a Participant's Account may be applied, subject to contractual provisions, to provide for Fixed or Variable Annuity payouts, or a combination thereof, commencing immediately, under the selected Annuity payout option under the Contract. (See "Annuity payout options"). 3. TO SURRENDER THE PARTICIPANT'S ACCOUNT IN A SINGLE SUM. The amount received will be the value next computed after we receive a written Surrender request for complete Surrender at our Administrative Office, less any applicable Contingent Deferred Sales Charge, Annual Maintenance Fee and Premium Taxes. Payment will normally be made within seven days after we receive the written request. 4. TO REQUEST A PARTIAL SURRENDER OF THE PARTICIPANT'S ACCOUNT. Partial Surrenders are taken from the Sub-Account(s) that you specify. If you do not specify the Sub-Account(s), we will take the amount out of all applicable Sub-Account(s) on a pro rata basis. We will deduct any applicable Contingent Deferred Sales Charges from the partial Surrender (see "Contract Charges"). 5. TO BEGIN MAKING MONTHLY, QUARTERLY, SEMI-ANNUAL OR ANNUAL WITHDRAWALS WHILE ALLOWING YOUR PARTICIPANT ACCOUNT TO REMAIN IN THE ACCUMULATION PERIOD. Your Participant Account remains subject to the Annual Maintenance Fee and any fluctuations in the investment results of the Sub-Accounts or any of the underlying investments. You may transfer the values of your Participant Account from one or more Sub-Accounts or the General Account option to any other Sub-Account, the General Account option or to any combination thereof, subject to certain restrictions (See "The Contracts"). For a more complete description of the restrictions and limitations of this Option, See "Systematic Withdrawal Option." CAN PAYMENT OF THE SURRENDER VALUE EVER BE POSTPONED BEYOND THE SEVEN-DAY PERIOD? Yes. It may be postponed whenever (a) the New York Stock Exchange is closed, except for holidays or weekends, or trading on the New York Stock Exchange is restricted as determined by the Securities and Exchange Commission; (b) the Securities and Exchange Commission permits postponement and so orders; or (c) the Securities and Exchange Commission determines that an emergency exists making valuation of the amounts or disposal of securities not reasonably practicable. MAY I SURRENDER ONCE ANNUITY PAYOUTS HAVE STARTED? Once Annuity payouts have started, no Surrenders are permitted except under a variable annuity under the Annuity Payout Option 5: Payments for a Designated Period. Surrenders may be subject to a Contingent Deferred Sales Charge. 31 HOW DO I ELECT AN ANNUITY COMMENCEMENT DATE AND ANNUITY PAYOUT OPTION? A Participant selects an Annuity Commencement Date (usually between the Participant's 50th birthday and the date on which the Participant attains age 70 1/2) and an Annuity payout option. The Annuity Commencement Date may be any day of any month before or including the month of a Participant's 90th birthday, or an earlier date if prescribed by applicable law. The Annuity Commencement Date and/or the Annuity payout option may be changed from time to time, but any such change must be made at least 30 days prior to the date on which Annuity payouts are scheduled to begin. Annuity payouts will normally be made on the first business day of each month or another mutually agreed upon business day. The contract contains five Annuity payout options that may be selected on either a Fixed or Variable Annuity basis, or a combination thereof. If a Participant does not elect otherwise, we reserve the right to begin Annuity payouts at age 90 under Option 2 with 120 monthly payments certain. Annuity payouts will depend on the investment allocation of your Participant Account in effect on the Annuity Commencement Date. However, unless required by applicable law, we will not assume responsibility in determining or monitoring any required minimum distributions. (See "Federal Tax Consequences"). WHAT IS THE MINIMUM AMOUNT THAT I MAY SELECT FOR AN ANNUITY PAYOUT? The minimum Annuity payout is $20. No election may be made which results in a first payment of less than $20. If at any time Annuity payouts are or become less than $20, we have the right to change the frequency of payment to intervals that will result in payments of at least $20. HOW ARE CONTRIBUTIONS MADE TO ESTABLISH AN ANNUITY ACCOUNT? During the Annuity Period, Contract values are applied to establish Annuitant's Accounts under the Contracts to provide Fixed or Variable Annuity payouts. CAN A CONTRACT BE SUSPENDED BY A CONTRACT OWNER? A Contract may be suspended by the Contract Owner by giving us written notice at least 90 days before the effective date of the suspension at our Administrative Office. A Contract will be suspended automatically on its anniversary if the Contract Owner fails to assent to any modification of a Contract. (See "Can a Contract be modified?"). In this context, such modifications would have become effective on or before that anniversary. Upon suspension of a 403(b) Contract, we will continue to accept Contributions, subject to the terms of the Contract, as such terms are applicable to Participant's Accounts under the Contracts prior to such suspension. However, no Contributions will be accepted on behalf of any new Participant Accounts. Annuitants at the time of any suspension will continue to receive their Annuity payments. The suspension of a 403(b) Contract will not preclude a Contract Owner from applying existing Participant's Accounts to the purchase of Fixed or Variable Annuity benefits. Upon suspension of all other Contracts, Hartford will not accept future contributions. ANNUITY PAYMENT OPTIONS: OPTION 1: LIFE ANNUITY where we make monthly Annuity payouts for as long as the Annuitant lives. - - Payments under this option stop with the last monthly payment preceding the death of the Annuitant, even if the Annuitant dies after one payment. This option offers the maximum level of monthly payments of any of the other life annuity options (Options 2-4) since there is no guarantee of a minimum number of payments nor a provision for a death benefit payable to a Beneficiary. OPTION 2: LIFE ANNUITY WITH 120, 180 OR 240 MONTHLY PAYMENTS CERTAIN where we make monthly payments for the life of the Annuitant with the provision that payments will be made for a minimum of 120, 180 or 240 months, as elected. If, at the death of the Annuitant, payments have been made for less than the minimum elected number of months, then any remaining guaranteed monthly payments will be paid to the Beneficiary unless other provisions have been made and approved by us. 32 OPTION 3: UNIT REFUND LIFE ANNUITY where we make monthly payments during the life of the Annuitant terminating with the last payment due prior to the death of the Annuitant, except that an additional payment will be made to the Beneficiary if (a) below exceeds (b) below: (a) = total amount applied under the option at the Annuity Commencement Date ------------------------------------------------------------------------------------------------------------- Annuity Unit value at the Annuity Commencement Date (b) = number of Annuity Units represented by each x number of monthly Annuity payouts made monthly Annuity payout made
The amount of the additional payments is determined by multiplying the excess, if any, by the Annuity Unit value as of the date we receive Due Proof of Death. OPTION 4: JOINT AND LAST SURVIVOR ANNUITY where we make monthly payments during the joint lifetime of the Annuitant and a designated individual (called the joint Annuitant) and then throughout the remaining lifetime of the survivor, ending with the last payment prior to the death of the survivor. - - When the Annuity is purchased, the Annuitant elects what percentage (50%, 66 2/3%, 75% or 100%) of the monthly Annuity payout will continue to be paid to the survivor. - - Under this Option 4, it would be possible for an Annuitant and joint Annuitant to receive only one payment in the event of the common or simultaneous death of the Annuitant and joint Annuitant prior to the due date for the second payment. OPTION 5: PAYMENTS FOR A DESIGNATED PERIOD where we agree to make monthly payments for the number of years selected. Under the Contracts, the minimum number of years is five. In the event of the Annuitant's death prior to the end of the designated period, the present value of any then remaining payments will be paid in one sum to the Beneficiary unless other provisions have been made and approved by us. - - Option 5 does not involve life contingencies and does not provide any mortality guarantee. Surrenders are subject to the limitations set forth in the Contract and any applicable Contingent Deferred Sales Charges. (See "Contract Charges"). For Contracts issued in New York, no surrenders are permitted by the Annuitant after Annuity payments commence under Option 5. UNDER ANY OF THE ANNUITY PAYOUT OPTIONS ABOVE, EXCEPT OPTION 5 (ON A VARIABLE BASIS), NO SURRENDERS BY THE ANNUITANT ARE PERMITTED AFTER ANNUITY PAYOUTS COMMENCE. OPTIONS 2 AND 5 ARE AVAILABLE ONLY IF THE GUARANTEED ANNUITY PAYOUT PERIOD IS LESS THAN THE LIFE EXPECTANCY OF THE ANNUITANT OR THE JOINT LIFE EXPECTANCY OF THE ANNUITANT AND THEIR JOINT ANNUITANT AT THE TIME THE OPTION BECOMES EFFECTIVE. SUCH LIFE EXPECTANCY SHALL BE COMPUTED ON THE BASIS OF THE MORTALITY TABLE PRESCRIBED BY THE IRS OR, IF NONE IS PRESCRIBED, THE MORTALITY TABLE THEN IN USE BY US. WE MAY OFFER OTHER ANNUITY PAYMENT OPTIONS FROM TIME TO TIME. NOT ALL ANNUITY PAYOUT OPTIONS WILL BE AVAILABLE IN ALL STATES OR IN ALL CONTRACTS. SYSTEMATIC WITHDRAWAL OPTION: If permitted by IRS regulations and the terms of the Employer's plan, a Participant can make withdrawals while allowing his or her Participant Account to remain in the Accumulation Period under the Contract. Eligibility under this provision is limited to Participants who have terminated their employment with the Employer at the time they elect the Systematic Withdrawal Option ("SWO"). The maximum payment amount is 1.5% monthly, 4.5% quarterly, 9.0% semi-annually or 18.0% annually of the value of the Participant's Account at the time the SWO is elected. Payments are limited to 18.0% of the Participant's Account annually. The minimum payment amount is $100. SWO payments generally are taxable as ordinary income and, if made prior to age 59 1/2, an IRS tax penalty may apply. Any Sales Charge otherwise applicable is waived on SWO payments. Participants elect the specific dollar amount to be withdrawn, the frequency of payments (monthly, quarterly, semi-annually or annually) and the duration of payments (either a fixed number of payments or until the Participant's Account is depleted). The duration of payments may not extend beyond the Participant's life expectancy as of the beginning date of SWO payments or the joint and last survivor life expectancy of the Participant and the Participant's Beneficiary. Participants may not elect the SWO if there is an outstanding loan amount. 33 A Participant can change the terms of a SWO as often as four times in each calendar year, can terminate the SWO at any time, and can elect one of the five available Annuity options or a partial or full lump sum withdrawal. If a partial or full lump sum withdrawal is elected within 12 months of a SWO payment, the contingent deferred sales charge that was previously waived, if any, will be deducted from the Participant's Account upon withdrawal. SWO payments will be deducted on a pro rata basis from the General Account option and each Sub-Account to which the Participant's Account is allocated. We are not responsible for determining a withdrawal amount that satisfies the minimum distribution requirements under the Code. Participants may be required to change their SWO payment amount to comply with the minimum distribution requirements. Participants should consult a tax adviser to determine whether the amount of their SWO payments meets IRS minimum distribution requirements. For a discussion of the minimum distribution requirements applicable to Participants over age 70 1/2 see, "Federal Tax Considerations". The SWO may only be elected pursuant to an election on a form provided by us. Election of the SWO does not affect Participants' other rights under the Contracts. HOW ARE VARIABLE ANNUITY PAYOUTS DETERMINED? The value of the Annuity Unit for each Sub-Account in the Separate Account for any day is determined by multiplying the value for the preceding day by the product of (1) the Net Investment Factor (see "How do I know what my Participant Account is worth?") for the day for which the Annuity Unit value is being calculated, and (2) a factor to neutralize the assumed net investment rate discussed below. The value of the Contract is determined as the product of the value of the Accumulation Unit credited to each Sub-Account no earlier than the close of business on the fifth business day preceding the date the first Annuity payout is due and the number of Accumulation Units credited to each Sub-Account as of the date the Annuity is to commence. The first monthly payment varies according to the Annuity payout option selected. The Contract cites Annuity tables derived from the 1983a Individual Annuitant Mortality Table with an assumed interest rate ("A.I.R.") of 4.00% per annum. The total first monthly Annuity payout is determined by multiplying the value (expressed in thousands of dollars) of a Sub-Account (less any applicable Premium Taxes) by the amount of the first monthly payment per $1,000 of value obtained from the tables in the contracts. With respect to Fixed Annuities only, the current rate will be applied if it is higher than the rate under the tables in the Contract. Level Annuity payouts would be provided if the net investment rate remained constant and equal to the A.I.R. In fact, payments will vary up or down in the proportion that the net investment rate varies up or down from the A.I.R. A higher A.I.R. may produce a higher initial payment but more slowly rising and more rapidly falling subsequent payments than would a lower interest rate assumption. The amount of the first monthly Annuity payout, determined as described above, is divided by the value of an Annuity Unit for the appropriate Sub-Account not later than the fifth business day preceding the day on which the payment is due in order to determine the number of Annuity Units represented by the first payment. This number of Annuity Units remains fixed during the Annuity Period, and in each subsequent month the dollar amount of the Annuity payout is determined by multiplying this fixed number of Annuity Units by the then current Annuity Unit value. The Annuity payouts will be made on the date selected. The Annuity Unit value used in calculating the amount of the Annuity payouts will be based on an Annuity Unit value determined as of the close of business on a day not more than the fifth business day preceding the date of the Annuity payout. 34 Here is an example of how a Variable Annuity is determined: ILLUSTRATION OF ANNUITY PAYOUTS: (UNISEX) AGE 65, LIFE ANNUITY WITH 120 PAYMENTS CERTAIN A. Net amount applied $139,782.50 B. Initial monthly income per $1,000 of payment applied 6.13 C. Initial monthly payment (A x B / 1,000) $856.87 D. Annuity Unit Value 3.125 E. Number of monthly annuity units (C / D) 274.198 F. Assume annuity unit value for second month equal to 2.897 G. Second monthly payment (F x E) $794.35 H. Assume annuity unit value for third month equal to 3.415 I. Third month payment (H x E) $936.39
The above figures are simply to illustrate the calculation of a Variable Annuity and have no bearing on the actual historical record of any Separate Account. FEDERAL TAX CONSIDERATIONS WHAT ARE SOME OF THE FEDERAL TAX CONSEQUENCES WHICH AFFECT THESE CONTRACTS? A. GENERAL Since the federal tax law is complex, the tax consequences of purchasing this contract will vary depending on your situation. You may need tax or legal advice to help you determine whether purchasing this contract is right for you. Our general discussion of the tax treatment of this contract is based on our understanding of federal income tax laws as they are currently interpreted. A detailed description of all federal income tax consequences regarding the purchase of this contract cannot be made in the prospectus. We also do not discuss state, municipal or other tax laws that may apply to this contract. For detailed information, you should consult with a qualified tax adviser familiar with your situation. B. TAXATION OF HARTFORD AND THE SEPARATE ACCOUNT The Separate Account is taxed as part of Hartford which is taxed as a life insurance company under Subchapter L of Chapter 1 of the Code. Accordingly, the Separate Account will not be taxed as a "regulated investment company" under Subchapter M of Chapter 1 of the Code. Investment income and any realized capital gains on assets of the Separate Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. (See "How do I know what my Participant Account is worth?"). As a result, such investment income and realized capital gains are automatically applied to increase reserves under the Contract. Currently, no taxes are due on interest, dividends and short-term or long-term capital gain earned by the Separate Account with respect to the Contracts. Hartford is entitled to certain tax benefits related to the investment of company assets, including assets of the Separate Account. These tax benefits, which may include the foreign tax credit and the corporate dividends received deduction, are not passed back to you since Hartford is the owner of the assets from which the tax benefits are derived. C. DIVERSIFICATION OF THE SEPARATE ACCOUNT The Code requires that investments supporting your Contract be adequately diversified. Code Section 817(h) provides that a variable annuity contract will not be treated as an annuity contract for any period during which the investments made by the separate account or underlying fund are not adequately diversified. If a contract is not treated as an annuity contract, the contract owner will be subject to income tax on annual increases in cash value. The Treasury Department's diversification regulations under Code Section 817(h) require, among other things, that: - no more than 55% of the value of the total assets of the segregated asset account underlying a variable contract is represented by any one investment, 35 - no more than 70% is represented by any two investments, - no more than 80% is represented by any three investments and - no more than 90% is represented by any four investments. In determining whether the diversification standards are met, all securities of the same issuer, all interests in the same real property project, and all interests in the same commodity are each treated as a single investment. In the case of government securities, each government agency or instrumentality is treated as a separate issuer. A separate account must be in compliance with the diversification standards on the last day of each calendar quarter or within 30 days after the quarter ends. If an insurance company inadvertently fails to meet the diversification requirements, the company may still comply within a reasonable period and avoid the taxation of contract income on an ongoing basis. However, either the insurer or the contract owner must agree to pay the tax due for the period during which the diversification requirements were not met. D. TAX OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT In order for a variable annuity contract to qualify for tax income deferral, assets in the separate account supporting the contract must be considered to be owned by the insurance company, and not by the contract owner, for tax purposes. The IRS has stated in published rulings that a variable contract owner will be considered the "owner" of separate account assets for income tax purposes if the contract owner possesses sufficient incidents of ownership in those assets, such as the ability to exercise investment control over the assets. In circumstances where the variable contract owner is treated as the "tax owner" of certain separate account assets, income and gain from such assets would be includable in the variable contract owner's gross income. The Treasury Department indicated in 1986 that, in regulations or revenue rulings under Code Section 817(d) (relating to the definition of a variable contract), it would provide guidance on the extent to which contract owners may direct their investments to particular sub-accounts without being treated as tax owners of the underlying shares. Although no such regulations have been issued to date, the IRS has issued a number of rulings that indicate that this issue remains subject to a facts and circumstances test for both variable annuity and variable life insurance contracts. For instance, the IRS in Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, reiterated its position in prior rulings that, where shares in a fund offered in an insurer's separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such shares can be purchased directly by the general public or others without going through such a variable contract), such "public availability" means that such shares should be treated as owned directly by the contract owner (and not by the insurer) for tax purposes, as if such contract owner had chosen instead to purchase such shares directly (without going through the variable contract). None of the shares or other interests in the fund choices offered in our Separate Account for your Contract are available for purchase except through an insurer's variable contracts or by other permitted entities. The IRS in Rev. Rul. 2003-91 also indicated that an insurer could provide as many as 20 fund choices for its variable contract owners (each with a general investment strategy, e.g., a small company stock fund or a special industry fund) under certain circumstances, without causing such a contract owner to be treated as the tax owner of any of the underlying fund assets. The ruling does not specify the number of fund options, if any, that might prevent a variable contract owner from receiving favorable tax treatment. As a result, we believe that any owner of a Contract also should receive the same favorable tax treatment. However, there is necessarily some uncertainty here as long as the IRS continues to use a facts and circumstances test for investor control and other tax ownership issues. Therefore, we reserve the right to modify the Contract as necessary to prevent you from being treated as the tax owner of any underlying assets. E. NON-NATURAL PERSONS AS OWNERS Pursuant to Code Section 72(u), an annuity contract held by a taxpayer other than a natural person generally is not treated as an annuity contract under the Code. Instead, such a non-natural Contract Owner generally could be required to include in gross income currently for each taxable year the excess of (a) the sum of the Contract Value as of the close of the taxable year and all previous distributions under the Contract over (b) the sum of net premiums paid for the taxable year and any prior taxable year and the amount includable in gross income for any prior taxable year with respect to the Contract under Section 72(u). However, Section 72(u) does not apply to: - A contract the nominal owner of which is a non-natural person but the beneficial owner of which is a natural person (e.g., where the non-natural owner holds the contract as an agent for the natural person), 36 - A contract acquired by the estate of a decedent by reason of such decedent's death, - Certain contracts acquired with respect to tax-qualified retirement arrangements, - Certain contracts held in structured settlement arrangements that may qualify under Code Section 130, or - A single premium immediate annuity contract under Code Section 72(u)(4), which provides for substantially equal periodic payments and an annuity starting date that is no later than 1 year from the date of the contract's purchase. A non-natural Contract Owner that is a tax-exempt entity for federal tax purposes (e.g., a tax-qualified retirement trust or a Charitable Remainder Trust) generally would not be subject to federal income tax as a result of such current gross income under Code Section 72(u). However, such a tax-exempt entity, or any annuity contract that it holds, may need to satisfy certain tax requirements in order to maintain its qualification for such favorable tax treatment. See, e.g., IRS Tech. Adv. Memo. 9825001 for certain Charitable Remainder Trusts. Pursuant to Code Section 72(s), if the Contract Owner is a non-natural person, the primary annuitant is treated as the "holder" in applying the required distribution rules described below. These rules require that certain distributions be made upon the death of a "holder." In addition, for a non-natural owner, a change in the primary annuitant is treated as the death of the "holder." However, the provisions of Code Section 72(s) do not apply to certain contracts held in tax-qualified retirement arrangements or structured settlement arrangements. F. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal income tax and withholding on taxable annuity distributions at a 30% rate, unless a lower treaty rate applies and any required tax forms are submitted to Hartford. If withholding applies, we are required to withhold tax at the 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. In addition, purchasers may be subject to state premium tax, other state and/or municipal taxes, and taxes that may be imposed by the purchaser's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity purchase. G. GENERATION SKIPPING TRANSFER TAX Under certain circumstances, the Code may impose a "generation skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the owner. Regulations issued under the Code may require Hartford to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS This summary does not attempt to provide more than general information about the federal income tax rules associated with use of a Contract by a tax-qualified retirement plan. State income tax rules applicable to tax-qualified retirement plans often differ from federal income tax rules, and this summary does not describe any of these differences. Because of the complexity of the tax rules, owners, participants and beneficiaries are encouraged to consult their own tax advisors as to specific tax consequences. The Contracts are available to a variety of tax-qualified retirement plans and arrangements (a "Qualified Plan" or "Plan"). Tax restrictions and consequences for Contracts or accounts under each type of Qualified Plan differ from each other and from those for Non-Qualified Contracts. In addition, individual Qualified Plans may have terms and conditions that impose additional rules. Therefore, no attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified Plans. Participants under such Qualified Plans, as well as Contract Owners, annuitants and beneficiaries, are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to terms and conditions of the Plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. Qualified Plans generally provide for the tax deferral of income regardless of whether the Qualified Plan invests in an annuity or other investment. You should consider if the Contract is a suitable investment if you are investing through a Qualified Plan. 37 The following is only a general discussion about types of Qualified Plans for which the Contracts may be available. We are not the plan administrator for any Qualified Plan. The plan administrator or custodian, whichever is applicable, (but not us) is responsible for all Plan administrative duties including, but not limited to, notification of distribution options, disbursement of Plan benefits, handling any processing and administration of Qualified Plan loans, compliance regulatory requirements and federal and state tax reporting of income/distributions from the Plan to Plan participants and, if applicable, beneficiaries of Plan participants and IRA contributions from Plan participants. Our administrative duties are limited to administration of the Contract and any disbursements of any Contract benefits to the Owner, annuitant or beneficiary of the Contract, as applicable. Our tax reporting responsibility is limited to federal and state tax reporting of income/distributions to the applicable payee and IRA contributions from the Owner of a Contract, as recorded on our books and records. If you are purchasing a Qualified Contract, you should consult with your Plan administrator and/or a qualified tax adviser. You also should consult with a qualified tax adviser and/or Plan administrator before you withdraw any portion of your Contract Value. The tax rules applicable to Qualified Contracts and Qualified Plans, including restrictions on contributions and distributions, taxation of distributions and tax penalties, vary according to the type of Qualified Plan, as well as the terms and conditions of the Plan itself. Various tax penalties may apply to contributions in excess of specified limits, plan distributions (including loans) that do not comply with specified limits, and certain other transactions relating to such Plans. Accordingly, this summary provides only general information about the tax rules associated with use of a Qualified Contract in such a Qualified Plan. In addition, some Qualified Plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions and other transactions comply with applicable tax (and non-tax) law. Because of the complexity of these rules, Owners, participants and beneficiaries are advised to consult with a qualified tax adviser as to specific tax consequences. We do not currently offer the Contracts in connection with all of the types of Qualified Plans discussed below, and may not offer the Contracts for all types of Qualified Plans in the future. 1. INDIVIDUAL RETIREMENT ANNUITIES ("IRAS"). In addition to "traditional" IRAs governed by Code Sections 408(a) and (b) ("Traditional IRAs"), there are Roth IRAs governed by Code Section 408A, SEP IRAs governed by Code Section 408(k), and SIMPLE IRAs governed by Code Section 408(p). Also, Qualified Plans under Code Section 401, 403(b) or 457(b) that include after-tax employee contributions may be treated as deemed IRAs subject to the same rules and limitations as Traditional IRAs. Contributions to each of these types of IRAs are subject to differing limitations. The following is a very general description of each type of IRA for which a Contract is available. A. TRADITIONAL IRAS Traditional IRAs are subject to limits on the amounts that may be contributed each year, the persons who may be eligible, and the time when minimum distributions must begin. Depending upon the circumstances of the individual, contributions to a Traditional IRA may be made on a deductible or non-deductible basis. Failure to make required minimum distributions ("RMDs") when the Owner reaches age 70 1/2 or dies, as described below, may result in imposition of a 50% penalty tax on any excess of the RMD amount over the amount actually distributed. In addition, any amount received before the Owner reaches age 59 1/2 or dies is subject to a 10% penalty tax on premature distributions, unless a special exception applies, as described below. Under Code Section 408(e), an IRA may not be used for borrowing (or as security for any loan) or in certain prohibited transactions, and such a transaction could lead to the complete tax disqualification of an IRA. You (or your surviving spouse if you die) may rollover funds tax-free from certain existing Qualified Plans (such as proceeds from existing insurance contracts, annuity contracts or securities) into a Traditional IRA under certain circumstances, as indicated below. However, mandatory tax withholding of 20% may apply to any eligible rollover distribution from certain types of Qualified Plans if the distribution is not transferred directly to the Traditional IRA. In addition, under Code Section 402(c)(11) a non-spouse "designated beneficiary" of a deceased Plan participant may make a tax-free "direct rollover" (in the form of a direct transfer between Plan fiduciaries, as described below in "Rollover Distributions") from certain Qualified Plans to a Traditional IRA for such beneficiary, but such Traditional IRA must be designated and treated as an "inherited IRA" that remains subject to applicable RMD rules (as if such IRA had been inherited from the deceased Plan participant). In addition, such a Plan is not required to permit such a rollover. IRAs generally may not invest in life insurance contracts. However, an annuity contract that is used as an IRA may provide a death benefit that equals the greater of the premiums paid or the contract's cash value. The Contract offers an enhanced death benefit that may exceed the greater of the Contract Value or total premium payments. The tax 38 rules are unclear as to what extent an IRA can provide a death benefit that exceeds the greater of the IRA's cash value or the sum of the premiums paid and other contributions into the IRA. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. B. SEP IRAS Code Section 408(k) provides for a Traditional IRA in the form of an employer-sponsored defined contribution plan known as a Simplified Employee Pension ("SEP") or a SEP IRA. A SEP IRA can have employer, employee and salary reduction contributions, as well as higher overall contribution limits than a Traditional IRA, but a SEP is also subject to special tax-qualification requirements (e.g., on participation, nondiscrimination and withdrawals) and sanctions. Otherwise, a SEP IRA is generally subject to the same tax rules as for a Traditional IRA, which are described above. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. C. SIMPLE IRAS The Savings Incentive Match Plan for Employees of small employers ("SIMPLE Plan") is a form of an employer-sponsored Qualified Plan that provides IRA benefits for the participating employees ("SIMPLE IRAs"). Depending upon the SIMPLE Plan, employers may make plan contributions into a SIMPLE IRA established by each eligible participant. Like a Traditional IRA, a SIMPLE IRA is subject to the 50% penalty tax for failure to make a full RMD, and to the 10% penalty tax on premature distributions, as described below. In addition, the 10% penalty tax is increased to 25% for amounts received during the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement pursuant to a SIMPLE Plan maintained by your employer under Code Section 408(p)(2). Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions, and these are subject to different tax limits from those for a Traditional IRA. Please note that the SIMPLE IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an SIMPLE IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. A SIMPLE Plan may designate a single financial institution (a Designated Financial Institution) as the initial trustee, custodian or issuer (in the case of an annuity contract) of the SIMPLE IRA set up for each eligible participant. However, any such Plan also must allow each eligible participant to have the balance in his SIMPLE IRA held by the Designated Financial Institution transferred without cost or penalty to a SIMPLE IRA maintained by a different financial institution. Absent a Designated Financial Institution, each eligible participant must select the financial institution to hold his SIMPLE IRA, and notify his employer of this selection. If we do not serve as the Designated Financial Institution for your employer's SIMPLE Plan, for you to use one of our Contracts as a SIMPLE IRA, you need to provide your employer with appropriate notification of such a selection under the SIMPLE Plan. If you choose, you may arrange for a qualifying transfer of any amounts currently held in another SIMPLE IRA for your benefit to your SIMPLE IRA with us. D. ROTH IRAS Code Section 408A permits eligible individuals to establish a Roth IRA. Contributions to a Roth IRA are not deductible, but withdrawals of amounts contributed and the earnings thereon that meet certain requirements are not subject to federal income tax. In general, Roth IRAs are subject to limitations on the amounts that may be contributed by the persons who may be eligible to contribute, certain Traditional IRA restrictions, and certain RMD rules on the death of the Contract Owner. Unlike a Traditional IRA, Roth IRAs are not subject to RMD rules during the Contract Owner's lifetime. Generally, however, upon the Owner's death the amount remaining in a Roth IRA must be distributed by the end of the fifth year after such death or distributed over the life expectancy of a designated beneficiary. The Owner of a Traditional IRA may convert a Traditional IRA into a Roth IRA under certain circumstances. The conversion of a Traditional IRA to a Roth IRA will subject the fair market value of the converted Traditional IRA to federal income tax. In addition to the amount held in the converted Traditional IRA, the fair market value may include the value of additional benefits provided by the annuity contract on the date of conversion, based on reasonable actuarial assumptions. Tax-free rollovers from a Roth IRA can be made only to another Roth IRA under limited circumstances, as indicated below. After 2007, distributions from eligible Qualified Plans can be "rolled over" directly (subject to tax) into a Roth IRA under certain circumstances. Anyone considering the purchase of a Qualified Contract as a Roth IRA or a "conversion" Roth IRA should consult with a qualified tax adviser. Please note that the Roth IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a Roth IRA, and therefore could 39 limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. 2. QUALIFIED PENSION OR PROFIT-SHARING PLAN OR SECTION 401(k) PLAN Provisions of the Code permit eligible employers to establish a tax-qualified pension or profit sharing plan (described in Section 401(a), and Section 401(k) if applicable, and exempt from taxation under Section 501(a)). Such a Plan is subject to limitations on the amounts that may be contributed, the persons who may be eligible to participate, the amounts of "incidental" death benefits, and the time when RMDs must commence. In addition, a Plan's provision of incidental benefits may result in currently taxable income to the participant for some or all of such benefits. Amounts may be rolled over tax-free from a Qualified Plan to another Qualified Plan under certain circumstances, as described below. Anyone considering the use of a Qualified Contract in connection with such a Qualified Plan should seek competent tax and other legal advice. In particular, please note that these tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. 3. TAX SHELTERED ANNUITY UNDER SECTION 403(b) ("TSA") Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations described in Code Section 501(c)(3) to purchase a "tax-sheltered annuity" ("TSA") contract and, subject to certain limitations, exclude employer contributions to a TSA from such an employee's gross income. Generally, total contributions may not exceed the lesser of an annual dollar limit (e.g., $46,000 in 2008) or 100% of the employee's "includable compensation" for the most recent full year of service, subject to other adjustments. The general annual elective deferral limit for a TSA participant after 2005 is $15,000. In addition, for years after 2006 this $15,000 limit will be indexed for cost-of-living adjustments under Code Section 402(g)(4) at $500 increments. For any such participant age 50 or older, the contribution limit after 2005 generally is increased by an additional $5,000 under Code Section 414(v). For years after 2006 this "over-50 catch-up" $5,000 limit also will be indexed for cost-of-living adjustments under Code Section 414(v)(2)(C) at $500 increments. Special provisions may allow certain employees different overall limitations. A TSA is subject to a prohibition against distributions from the TSA attributable to contributions made pursuant to a salary reduction agreement, unless such distribution is made: a. after the employee reaches age 59 1/2; b. upon the employee's separation from service; c. upon the employee's death or disability; d. in the case of hardship (and in the case of hardship, any income attributable to such contributions may not be distributed); or e. as a qualified reservist distribution upon certain calls to active duty. Please note that the TSA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a TSA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. In particular, please note that tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. In addition, a life insurance contract issued after September 23, 2007 is generally ineligible to qualify as a TSA under Reg. Section 1.403(b)-8(c)(2). 40 Amounts may be rolled over tax-free from a TSA to another TSA or Qualified Plan (or from a Qualified Plan to a TSA) under certain circumstances, as described below. However, effective for TSA contract exchanges after September 24, 2007, Reg. ' 1.403(b)-10(b) allows a TSA contract of a participant or beneficiary under a TSA Plan to be exchanged tax-free for another eligible TSA contract under that same TSA Plan, but only if all of the following conditions are satisfied: (1) such TSA Plan allows such an exchange, (2) the participant or beneficiary has an accumulated benefit after such exchange that is no less than such participant's or beneficiary's accumulated benefit immediately before such exchange (taking into account such participant's or beneficiary's accumulated benefit under both TSA contracts immediately before such exchange), (3) the second TSA contract is subject to distribution restrictions with respect to the participant that are no less stringent than those imposed on the TSA contract being exchanged, and (4) the employer for such TSA Plan enters into an agreement with the issuer of the second TSA contract under which such issuer and employer will provide each other from time to time with certain information necessary for such second TSA contract (or any other TSA contract that has contributions from such employer) to satisfy the TSA requirements under Code Section 403(b) and other federal tax requirements (e.g., plan loan conditions under Code Section 72(p) to avoid deemed distributions). Such necessary information could include information about the participant's employment, information about other Qualified Plans of such employer, and whether a severance has occurred, or hardship rules are satisfied, for purposes of the TSA distribution restrictions. Consequently, you are advised to consult with a qualified tax advisor before attempting any such TSA exchange, particularly because it requires an agreement between the employer and issuer to provide each other with certain information. In addition, after September 24, 2007 we are no longer accepting any incoming exchange request, or new contract application, for any individual TSA contract. 4. DEFERRED COMPENSATION PLANS UNDER SECTION 457 ("SECTION 457 PLANS") Certain governmental employers, or tax-exempt employers other than a governmental entity, can establish a Deferred Compensation Plan under Code Section 457. For these purposes, a "governmental employer" is a State, a political subdivision of a State, or an agency or an instrumentality of a State or political subdivision of a State. A Deferred Compensation Plan that meets the requirements of Code Section 457(b) is called an "Eligible Deferred Compensation Plan" or "Section 457(b) Plan." Code Section 457(b) limits the amount of contributions that can be made to an Eligible Deferred Compensation Plan on behalf of a participant. Generally, the limitation on contributions is the lesser of (1) 100% of a participant's includible compensation or (2) the applicable dollar amount, equal to $15,000 for 2006 and thereafter. The $15,000 limit will be indexed for cost-of-living adjustments at $500 increments. The Plan may provide for additional "catch-up" contributions during the three taxable years ending before the year in which the participant attains normal retirement age. In addition, with an eligible Deferred Compensation Plan for a governmental employer, the contribution limitation may be increased under Code Section 457(e)(18) to allow certain "catch-up" contributions for individuals who have attained age 50, but only one "catch-up" may be used in a particular year. In addition, under Code Section 457(d) a Section 457(b) Plan may not make amounts available for distribution to participants or beneficiaries before (1) the calendar year in which the participant attains age 70 1/2, (2) the participant has a severance from employment (including death), or (3) the participant is faced with an unforeseeable emergency (as determined in accordance with regulations). Under Code Section 457(g) all of the assets and income of an Eligible Deferred Compensation Plan for a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, annuity contracts and custodial accounts described in Code Section 401(f) are treated as trusts. This trust requirement does not apply to amounts under an Eligible Deferred Compensation Plan of a tax-exempt (non-governmental) employer. In addition, this trust requirement does not apply to amounts held under a Deferred Compensation Plan of a governmental employer that is not a Section 457(b) Plan. However, where the trust requirement does not apply, amounts held under a Section 457 Plan must remain subject to the claims of the employer's general creditors under Code Section 457(b)(6). 5. TAXATION OF AMOUNTS RECEIVED FROM QUALIFIED PLANS Except under certain circumstances in the case of Roth IRAs, amounts received from Qualified Contracts or Plans generally are taxed as ordinary income under Code Section 72, to the extent that they are not treated as a tax-free recovery of after-tax contributions or other "investment in the contract." For annuity payments and other amounts received after the Annuity Commencement Date from a Qualified Contract or Plan, the tax rules for determining what portion of each amount received represents a tax-free recovery of "investment in the contract" are generally the same as for Non-Qualified Contracts, as described above. For non-periodic amounts from certain Qualified Contracts or Plans, Code Section 72(e)(8) provides special rules that generally treat a portion of each amount received as a tax-free recovery of the "investment in the contract," 41 based on the ratio of the "investment in the contract" over the Contract Value at the time of distribution. However, in determining such a ratio, certain aggregation rules may apply and may vary, depending on the type of Qualified Contract or Plan. For instance, all Traditional IRAs owned by the same individual are generally aggregated for these purposes, but such an aggregation does not include any IRA inherited by such individual or any Roth IRA owned by such individual. In addition, penalty taxes, mandatory tax withholding or rollover rules may apply to amounts received from a Qualified Contract or Plan, as indicated below, and certain exclusions may apply to certain distributions (e.g., distributions from an eligible Government Plan to pay qualified health insurance premiums of an eligible retired public safety officer). Accordingly, you are advised to consult with a qualified tax adviser before taking or receiving any amount (including a loan) from a Qualified Contract or Plan. 6. PENALTY TAXES FOR QUALIFIED PLANS Unlike Non-Qualified Contracts, Qualified Contracts are subject to federal penalty taxes not just on premature distributions, but also on excess contributions and failures to make required minimum distributions ("RMDs"). Penalty taxes on excess contributions can vary by type of Qualified Plan and which person made the excess contribution (e.g., employer or an employee). The penalty taxes on premature distributions and failures to make timely RMDs are more uniform, and are described in more detail below. A. PENALTY TAXES ON PREMATURE DISTRIBUTIONS Code Section 72(t) imposes a penalty income tax equal to 10% of the taxable portion of a distribution from certain types of Qualified Plans that is made before the employee reaches age 59 1/2. However, this 10% penalty tax does not apply to a distribution that is either: (i) made to a beneficiary (or to the employee's estate) on or after the employee's death; (ii) attributable to the employee's becoming disabled under Code Section 72(m)(7); (iii) part of a series of substantially equal periodic payments (not less frequently than annually -- "SEPPs") made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and a designated beneficiary ("SEPP Exception"), and for certain Qualified Plans (other than IRAs) such a series must begin after the employee separates from service; (iv) (except for IRAs) made to an employee after separation from service after reaching age 55 (or made after age 50 in the case of a qualified public safety employee separated from certain government plans); (v) (except for IRAs) made to an alternate payee pursuant to a qualified domestic relations order under Code Section 414(p) (a similar exception for IRAs in Code Section 408(d)(6) covers certain transfers for the benefit of a spouse or ex-spouse); (vi) not greater than the amount allowable as a deduction to the employee for eligible medical expenses during the taxable year; or (vii) certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty. In addition, the 10% penalty tax does not apply to a distribution from an IRA that is either: (viii) made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions are met; (ix) not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or (x) for a qualified first-time home buyer and meets the requirements of Code Section 72(t)(8). If the taxpayer avoids this 10% penalty tax by qualifying for the SEPP Exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the employee has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. For any premature distribution from a SIMPLE IRA during the first 2 years that an individual participates in a salary reduction arrangement maintained by that individual's employer under a SIMPLE Plan, the 10% penalty tax rate is increased to 25%. 42 B. RMDS AND 50% PENALTY TAX If the amount distributed from a Qualified Contract or Plan is less than the amount of the required minimum distribution ("RMD") for the year, the participant is subject to a 50% penalty tax on the amount that has not been timely distributed. An individual's interest in a Qualified Plan generally must be distributed, or begin to be distributed, not later than the Required Beginning Date. Generally, the Required Beginning Date is April 1 of the calendar year following the later of -- (i) the calendar year in which the individual attains age 70 1/2, or (ii) (except in the case of an IRA or a 5% owner, as defined in the Code) the calendar year in which a participant retires from service with the employer sponsoring a Qualified Plan that allows such a later Required Beginning Date. The entire interest of the individual must be distributed beginning no later than the Required Beginning Date over -- (a) the life of the individual or the lives of the individual and a designated beneficiary (as specified in the Code), or (b) over a period not extending beyond the life expectancy of the individual or the joint life expectancy of the individual and a designated beneficiary. If an individual dies before reaching the Required Beginning Date, the individual's entire interest generally must be distributed within 5 years after the individual's death. However, this RMD rule will be deemed satisfied if distributions begin before the close of the calendar year following the individual's death to a designated beneficiary and distribution is over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). If such beneficiary is the individual's surviving spouse, distributions may be delayed until the deceased individual would have attained age 70 1/2. If an individual dies after RMDs have begun for such individual, any remainder of the individual's interest generally must be distributed at least as rapidly as under the method of distribution in effect at the time of the individual's death. The RMD rules that apply while the Contract Owner is alive do not apply with respect to Roth IRAs. The RMD rules applicable after the death of the Owner apply to all Qualified Plans, including Roth IRAs. In addition, if the Owner of a Traditional or Roth IRA dies and the Owner's surviving spouse is the sole designated beneficiary, this surviving spouse may elect to treat the Traditional or Roth IRA as his or her own. The RMD amount for each year is determined generally by dividing the account balance by the applicable life expectancy. This account balance is generally based upon the account value as of the close of business on the last day of the previous calendar year. RMD incidental benefit rules also may require a larger annual RMD amount. RMDs also can be made in the form of annuity payments that satisfy the rules set forth in Regulations under the Code relating to RMDs. In addition, in computing any RMD amount based on a contract's account value, such account value must include the actuarial value of certain additional benefits provided by the contract. As a result, electing an optional benefit under a Qualified Contract may require the RMD amount for such Qualified Contract to be increased each year, and expose such additional RMD amount to the 50% penalty tax for RMDs if such additional RMD amount is not timely distributed. 7. TAX WITHHOLDING FOR QUALIFIED PLANS Distributions from a Qualified Contract or Qualified Plan generally are subject to federal income tax withholding requirements. These federal income tax withholding requirements, including any "elections out" and the rate at which withholding applies, generally are the same as for periodic and non-periodic distributions from a Non-Qualified Contract, as described above, except where the distribution is an "eligible rollover distribution" (described below in "ROLLOVER DISTRIBUTIONS"). In the latter case, tax withholding is mandatory at a rate of 20% of the taxable portion of the "eligible rollover distribution," to the extent it is not directly rolled over to an IRA or other Eligible Retirement Plan (described below in "ROLLOVER DISTRIBUTIONS"). Payees cannot elect out of this mandatory 20% withholding in the case of such an "eligible rollover distribution." 43 Also, special withholding rules apply with respect to distributions from non-governmental Section 457(b) Plans, and to distributions made to individuals who are neither citizens nor resident aliens of the United States. Regardless of any "election out" (or any actual amount of tax actually withheld) on an amount received from a Qualified Contract or Plan, the payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the payee's total tax liability. 8. ROLLOVER DISTRIBUTIONS The current tax rules and limits for tax-free rollovers and transfers between Qualified Plans vary according to (1) the type of transferor Plan and transferee Plan, (2) whether the amount involved is transferred directly between Plan fiduciaries (a "direct transfer" or a "direct rollover") or is distributed first to a participant or beneficiary who then transfers that amount back into another eligible Plan within 60 days (a "60-day rollover"), and (3) whether the distribution is made to a participant, spouse or other beneficiary. Accordingly, we advise you to consult with a qualified tax adviser before receiving any amount from a Qualified Contract or Plan or attempting some form of rollover or transfer with a Qualified Contract or Plan. For instance, generally any amount can be transferred directly from one type of Qualified Plan (e.g., a TSA) to the same type of Plan for the benefit of the same individual, without limit (or federal income tax), if the transferee Plan is subject to the same kinds of restrictions as the transferor Plan (e.g., a TSA that is subject to the same kinds of salary reduction restrictions) and certain other conditions to maintain the applicable tax qualification are satisfied (e.g., as described above for TSA exchanges after September 24, 2007). Such a "direct transfer" between the same kinds of Plan is generally not treated as any form of "distribution" out of such a Plan for federal income tax purposes. By contrast, an amount distributed from one type of Plan (e.g., a TSA) into a different type of Plan (e.g., a Traditional IRA) generally is treated as a "distribution" out of the first Plan for federal income tax purposes, and therefore to avoid being subject to such tax, such a distribution must qualify either as a "direct rollover" (made directly to another Plan fiduciary) or as a "60-day rollover." The tax restrictions and other rules for a "direct rollover" and a "60-day rollover" are similar in many ways, but if any "eligible rollover distribution" made from certain types of Qualified Plan is not transferred directly to another Plan fiduciary by a "direct rollover," then it is subject to mandatory 20% withholding, even if it is later contributed to that same Plan in a "60-day rollover" by the recipient. If any amount less than 100% of such a distribution (e.g., the net amount after the 20% withholding) is transferred to another Plan in a "60-day rollover", the missing amount that is not rolled over remains subject to normal income tax plus any applicable penalty tax. Under Code Sections 402(f)(2)(A) and 3405(c)(3) an "eligible rollover distribution" (which is both eligible for rollover treatment and subject to 20% mandatory withholding absent a "direct rollover") is generally any distribution to an employee of any portion (or all) of the balance to the employee's credit in any of the following types of "Eligible Retirement Plan": (1) a Qualified Plan under Code Section 401(a) ("Qualified 401(a) Plan"), (2) a qualified annuity plan under Code Section 403(a) ("Qualified Annuity Plan"), (3) a TSA under Code Section 403(b), or (4) a governmental Section 457(b) Plan. However, an "eligible rollover distribution" does not include any distribution that is either -- a. an RMD amount; b. one of a series of substantially equal periodic payments (not less frequently than annually) made either (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary, or (ii) for a specified period of 10 years or more; or c. any distribution made upon hardship of the employee. Before making an "eligible rollover distribution," a Plan administrator generally is required under Code Section 402(f) to provide the recipient with advance written notice of the "direct rollover" and "60-day rollover" rules and the distribution's exposure to the 20% mandatory withholding if it is not made by "direct rollover." Generally, under Code Sections 402(c), 403(b)(8) and 457 (e)(16), a "direct rollover" or a "60-day rollover" of an "eligible rollover distribution" can be made to a Traditional IRA or to another Eligible Retirement Plan that agrees to accept such a rollover. However, the maximum amount of an "eligible rollover distribution" that can qualify for a tax-free "60-day rollover" is limited to the amount that otherwise would be includable in gross income. By contrast, a "direct rollover" of an "eligible rollover distribution" can include after-tax contributions as well, if the direct rollover is made either to a Traditional IRA or to another form of Eligible Retirement Plan that agrees to account separately for such a rollover, including accounting for such after-tax amounts separately from the otherwise taxable portion of this rollover. Separate accounting also is required for all amounts (taxable or not) that are rolled into a governmental Section 457(b) Plan 44 from either a Qualified Section 401(a) Plan, Qualified Annuity Plan, TSA or IRA. These amounts, when later distributed from the governmental Section 457(b) Plan, are subject to any premature distribution penalty tax applicable to distributions from such a "predecessor" Qualified Plan. Rollover rules for distributions from IRAs under Code Sections 408(d)(3) and 408A(d)(3) also vary according to the type of transferor IRA and type of transferee IRA or other Plan. For instance, generally no tax-free "direct rollover" or "60-day rollover" can be made between a "NonRoth IRA" (Traditional, SEP or SIMPLE IRA) and a Roth IRA, and a transfer from NonRoth IRA to a Roth IRA, or a "conversion" of a NonRoth IRA to a Roth IRA, is subject to special rules. In addition, generally no tax-free "direct rollover" or "60-day rollover" can be made between an "inherited IRA" (NonRoth or Roth) for a beneficiary and an IRA set up by that same individual as the original owner. Generally, any amount other than an RMD distributed from a Traditional or SEP IRA is eligible for a "direct rollover" or a "60-day rollover" to another Traditional IRA for the same individual. Similarly, any amount other than an RMD distributed from a Roth IRA is generally eligible for a "direct rollover" or a "60-day rollover" to another Roth IRA for the same individual. However, in either case such a tax-free 60-day rollover is limited to 1 per year (365-day period); whereas no 1-year limit applies to any such "direct rollover." Similar rules apply to a "direct rollover" or a "60-day rollover" of a distribution from a SIMPLE IRA to another SIMPLE IRA or a Traditional IRA, except that any distribution of employer contributions from a SIMPLE IRA during the initial 2-year period in which the individual participates in the employer's SIMPLE Plan is generally disqualified (and subject to the 25% penalty tax on premature distributions) if it is not rolled into another SIMPLE IRA for that individual. Amounts other than RMDs distributed from a Traditional or SEP IRA (or SIMPLE IRA after the initial 2-year period) also are eligible for a "direct rollover" or a "60-day rollover" to an Eligible Retirement Plan (e.g., a TSA) that accepts such a rollover, but any such rollover is limited to the amount of the distribution that otherwise would be includable in gross income (i.e., after-tax contributions are not eligible). Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a nonspouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be recontributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. 45 MORE INFORMATION CAN A CONTRACT BE MODIFIED? Subject to any federal and state regulatory restrictions, we may modify the Contracts at any time by written agreement between the Contract Owner and us. No modification will affect the amount or term of any Annuities begun prior to the effective date of the modification, unless it is required to conform the Contract to, or give the Contract Owner the benefit of, any federal or state statutes or any rule or regulation of the U.S. Treasury Department or the Internal Revenue Service. On or after the fifth anniversary of any Contract we may change, from time to time, any or all of the terms of the Contracts by giving 90 days advance written notice to the Contract Owner, except that the Annuity tables, guaranteed interest rates and the contingent deferred sales charges which are applicable at the time a Participant's Account is established under a Contract, will continue to be applicable. We reserve the right to modify the Contract at any time if such modification: (i) is necessary to make the Contract or the Separate Account comply with any law or regulation issued by a governmental agency to which we are subject; or (ii) is necessary to assure continued qualification of the contract under the Code or other federal or state laws relating to retirement annuities or annuity contracts; or (iii) is necessary to reflect a change in the operation of the Separate Account or the Sub-Account(s); or (iv) provides additional Separate Account options; or (v) withdraws Separate Account options. In the event of any such modification we will provide notice to the Contract Owner or to the payee(s) during the Annuity period. Hartford may also make appropriate endorsement in the Contract to reflect such modification. CAN HARTFORD WAIVE ANY RIGHTS UNDER A CONTRACT? We may, at our sole discretion, elect not to exercise a right or reservation specified in the Contract. If we elect not to exercise a right or reservation, we are not waiving it. We may decide to exercise a right or a reservation that we previously did not exercise. HOW CONTRACTS ARE SOLD -- We have entered into a distribution agreement with our affiliate Hartford Securities Distribution Company, Inc. ("HSD") under which HSD serves as the principal underwriter for the Contracts, which are offered on a continuous basis. HSD is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the FINRA. The principal business address of HSD is the same as ours. PLANCO Financial Services, LLC, a subsidiary of Hartford Life Insurance Company, provides marketing support for us. Woodbury Financial Services, Inc. is another affiliated broker-dealer that sells this Contract. HSD has entered into selling agreements with affiliated and unaffiliated broker-dealers, and financial institutions ("Financial Intermediaries") for the sale of the Contracts. We pay compensation to HSD for sales of the Contracts by Financial Intermediaries. HSD, in its role as principal underwriter, did not retain any underwriting commissions for the fiscal year ended December 31, 2007. Contracts will be sold by individuals who have been appointed by us as insurance agents and who are registered representatives of Financial Intermediaries ("Registered Representatives"). We list below types of arrangements that help to incentivize sales people to sell our suite of variable annuities. Not all arrangements necessarily affect each variable annuity. These types of arrangements could be viewed as creating conflicts of interest. Financial Intermediaries receive commissions (described below under "Commissions"). Certain selected Financial Intermediaries also receive additional compensation (described below under "Additional Payments"). All or a portion of the payments we make to Financial Intermediaries may be passed on to Registered Representatives according to a Financial Intermediaries' internal compensation practices. Affiliated broker-dealers also employ individuals called "wholesalers" in the sales process. Wholesalers typically receive commissions based on the type of Contract or optional benefits sold. Commissions are based on a specified amount of Premium Payments or Contract Value. COMMISSIONS For individual and group Contracts, up front commissions paid to Financial Intermediaries generally range from 1% to up to 7% of each Premium Payment you pay for your Contract. Trail commissions (fees paid for customers that maintain their Contracts generally for more than 1 year) range up to 1.20% of your Contract Value. We pay different commissions based on the Contract variation that you buy. We may pay a lower commission for sales to people over age 80. 46 Commission arrangements vary from one Financial Intermediary to another. We are not involved in determining your Registered Representative's compensation. Under certain circumstances, your Registered Representative may be required to return all or a portion of the commissions paid. Check with your Registered Representative to verify whether your account is a brokerage or an advisory account. Your interests may differ from ours and your Registered Representative (or the Financial Intermediary with which they are associated). Please ask questions to make sure you understand your rights and any potential conflicts of interest. If you are an advisory client, your Registered Representative (or the Financial Intermediary with which they are associated) can be paid both by you and by us based on what you buy. Therefore, profits, and your Registered Representative's (or their Financial Intermediary's) compensation, may vary by product and over time. Contact an appropriate person at your Financial Intermediary with whom you can discuss these differences. ADDITIONAL PAYMENTS Subject to NASD and Financial Intermediary rules, we (or our affiliates) also pay the following types of fees to among other things encourage the sale of this Contract. These additional payments could create an incentive for your Registered Representative, and the Financial Intermediary with which they are associated, to recommend products that pay them more than others, which may not necessarily be to your benefit. ADDITIONAL PAYMENT WHAT IT'S USED FOR TYPE Access Access to Registered Representatives and/or Financial Intermediaries such as one-on-one wholesaler visits or attendance at national sales meetings or similar events. Gifts & Entertainment Occasional meals and entertainment, tickets to sporting events and other gifts. Marketing Joint marketing campaigns and/or Financial Intermediary event advertising/ participation; sponsorship of Financial Intermediary sales contests and/or promotions in which participants (including Registered Representatives) receive prizes such as travel awards, merchandise and recognition; client generation expenses. Marketing Expense Pay Fund related parties for wholesaler support, training and marketing activities for certain Allowances Funds. Support Sales support through such things as providing hardware and software, operational and systems integration, links to our website from a Financial Intermediary's websites; shareholder services (including sub-accounting sponsorship of Financial Intermediary due diligence meetings; and/or expense allowances and reimbursements. Targets Pay for the achievement of sales or assets under management targets. Training Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training, and/or client or prospect seminar sponsorships. Visibility Inclusion of our products on a Financial Intermediary's "preferred list"; participation in, or visibility at, national and regional conferences; and/or articles in Financial Intermediary publications highlighting our products and services Volume Pay for the overall volume of their sales or the amount of money investing in our products.
For individual and group Contracts, as of December 31, 2007, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities: A.G. Edwards & Sons, Inc., AIG Advisors Group, Inc., (Advantage Capital, AIG Financial Advisors, American General, FSC Securities Corporation, Royal Alliance Assoc., Inc.), Bancwest Investment Services, Inc., Cadaret, Grant & Co., Inc., Capital Analyst Inc., Centaurus Financial, Inc., Citigroup, Inc. (various divisions and affiliates), Comerica Securities, Commonwealth Financial Network, Compass Brokerage, Inc., Crown Capital Securities, L.P., Cuna Brokerage Services, Inc., Cuso Financial Services, L.P., Edward D. Jones & Co., L.P., FFP Securities, Inc., First Allied Securities, Inc., First Citizens Investor Services, First Montauk Securities Corp., First Tennessee Bank, First Tennessee Brokerage, Inc., Frost Brokerage Services, Inc., Great American Advisors, Inc., H. Beck, Inc., H.D. Vest Investment Services (subsidiary of Wells Fargo & Company), Harbour Investments, Inc., Heim & Young Securities, Huntington Investment Company, Independent Financial Group LLC, Infinex Financial Group, ING Advisors Network, (Financial Network Services (or Investment) Corp., ING Financial Partners, Multi-Financial Securities, Primevest Financial Services, Inc.,), Investacorp, Inc., Investment Professionals, Inc., Investors Capital Corp., J.J.B. Hilliard, James T. Borello & Co., Janney Montgomery Scott, Inc., Jefferson Pilot Securities Corporation, Key Investment Services, LaSalle Financial 47 Services, Inc., Lincoln Financial Advisors Corp. (marketing name for Lincoln National Corp.), LPL Financial Corporation, M&T Securities, Inc., Merrill Lynch Pierce Fenner & Smith, Morgan Keegan & Company, Inc., Morgan Keegan FID Division, Morgan Stanley & Co., Inc. (various divisions and affiliates), Mutual Service Corporation, NatCity Investments, National Planning Holdings (Invest Financial Corp., Investment Centers of America, Inc., National Planning Corp., SII Investments, Inc.), Newbridge Securities Corp., NEXT Financial Group, Inc., NFP Securities, Inc., Pension Planners Securities, Inc., Prime Capital Services, Inc., Prospera Financial Services, Inc., Raymond James & Associates, Inc., Raymond James FID Division, Raymond James Financial Services, RBC Dain FID Division, RBC Dain Rauscher Inc., RDM Investment Svcs Inc., Robert W. Baird & Co. Inc., Securities America, Inc., Sigma Financial Corporation, Sorrento Pacific, Stifel Nicolaus & Company, Incorporated, Summit Brokerage Services Inc., Sun Trust Bank, TFS Securities, Inc., The Investment Center, Inc., Thurston, Springer, Miller, Herd & Titak, Inc., Triad Advisors, Inc., U.S. Bancorp Investments, Inc., UBOC Investment Services, Inc. (Union Bank of California, N.A.), UBS Financial Services, Inc., Uvest Financial Services Group Inc., Vanderbilt Securities, LLC, Wachovia Securities, LLC (various divisions), Walnut Street Securities, Inc., Wells Fargo Brokerage Services, L.L.C., WaMu Investments, Inc., Woodbury Financial Services, Inc. (an affiliate of ours), XCU Capital Corporation, Inc. Inclusion on this list does not imply that these sums necessarily constitute "special cash compensation" as defined by NASD Conduct Rule 2830(l)(4). We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify any investor whether their Registered Representative is or should be included in any such listing. For individual and group Contracts, as of December 31, 2007, we have entered into arrangements to pay Marketing Expense Allowances to the following Fund Companies (or affiliated parties) for our entire suite of variable annuities: AIM Advisors, Inc., AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investment Research and Management, Inc., American Variable Insurance Series & Capital Research and Management Company, Franklin Templeton Services, LLC, Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Putnam Retail Management Limited Partnership. Marketing Expense Allowances may vary based on the form of Contract sold and the age of the purchaser. We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify you whether any Financial Intermediary is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares. For individual and group Contracts, for the fiscal year ended December 31, 2007, Additional Payments did not in the aggregate exceed approximately $66.4 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.06% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $15.8 million or approximately 0.25% of the Premium Payments invested in a particular Fund during this period. WHO IS THE CUSTODIAN OF THE SEPARATE ACCOUNT'S ASSETS? Hartford is the custodian of the Separate Account's assets. ARE THERE ANY MATERIAL LEGAL PROCEEDINGS AFFECTING THE SEPARATE ACCOUNT? There continues to be significant federal and state regulatory activity relating to financial services companies. Like other insurance companies, we are involved in lawsuits, arbitrations, and regulatory/legal proceedings. While it is not possible to predict with certainty the ultimate outcome of any pending or future legal proceeding or regulatory action, we do not expect any of these actions to result in a material adverse effect on the Company or its Separate Accounts. HOW MAY I GET ADDITIONAL INFORMATION? Inquiries will be answered by calling 1-800-528-9009 or your sales representative or by writing to: Hartford Life Insurance Company P.O. Box 1583 Hartford, CT 06144-1583 You can also send inquiries to us electronically by Internet through our website at retire.hartfordlife.com. FINANCIAL STATEMENTS You can find financial statements of the Separate Account and Hartford in the Statement of Additional Information. To receive a copy of the Statement of Additional Information free of charge, call your representative or complete the form at the end of this prospectus and mail the form to us at the address indicated on the form. 48 APPENDIX I ACCUMULATION UNIT VALUES (FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT THE PERIOD) THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS FOR THE SEPARATE ACCOUNTS INCLUDED IN THE STATEMENT OF ADDITIONAL INFORMATION, WHICH IS INCORPORATED BY REFERENCE TO THIS PROSPECTUS. HARTFORD LIFE INSURANCE COMPANY MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE OF 0.65% (AS A PERCENTAGE OF DAILY SUB-ACCOUNT VALUE)
YEAR ENDING DECEMBER 31, 2007 2006 2005 - ----------------------------------------------------------------------------------- AIM FINANCIAL SERVICES FUND Accumulation unit value at beginning of period $14.217 $12.305 $11.765 Accumulation unit value at end of period $10.887 $14.217 $12.305 Number of accumulation units outstanding at end of period (in thousands) 6 6 24 AIM LEISURE FUND Accumulation unit value at beginning of period $15.145 $12.272 $12.506 Accumulation unit value at end of period $14.911 $15.145 $12.272 Number of accumulation units outstanding at end of period (in thousands) 12 16 43 AIM SMALL CAP GROWTH FUND Accumulation unit value at beginning of period $10.412 -- -- Accumulation unit value at end of period $11.523 -- -- Number of accumulation units outstanding at end of period (in thousands) 8 -- -- JANUS ADVISER WORLDWIDE FUND Accumulation unit value at beginning of period $12.038 $10.362 $9.833 Accumulation unit value at end of period $13.027 $12.038 $10.362 Number of accumulation units outstanding at end of period (in thousands) 4 4 9 MASSACHUSETTS INVESTORS GROWTH STOCK FUND Accumulation unit value at beginning of period $10.958 $10.262 $9.943 Accumulation unit value at end of period $12.140 $10.958 $10.262 Number of accumulation units outstanding at end of period (in thousands) 17 15 18 MFS(R) CAPITAL OPPORTUNITIES FUND Accumulation unit value at beginning of period $11.913 $10.479 $10.407 Accumulation unit value at end of period $12.901 $11.913 $10.479 Number of accumulation units outstanding at end of period (in thousands) -- 1 70 MFS(R) MID CAP GROWTH FUND Accumulation unit value at beginning of period $9.709 $9.564 $9.374 Accumulation unit value at end of period $10.561 $9.709 $9.564 Number of accumulation units outstanding at end of period (in thousands) 26 27 43 MFS(R) VALUE FUND Accumulation unit value at beginning of period $15.534 $12.957 $12.277 Accumulation unit value at end of period $16.608 $15.534 $12.957 Number of accumulation units outstanding at end of period (in thousands) 19 23 89 YEAR ENDING DECEMBER 31, 2004 2003 2002 - -------------------------------- -------------------------------------------- AIM FINANCIAL SERVICES FUND Accumulation unit value at beginning of period $10.910 $8.480 $10.000 Accumulation unit value at end of period $11.765 $10.910 $8.480 Number of accumulation units outstanding at end of period (in thousands) 20 6 5 AIM LEISURE FUND Accumulation unit value at beginning of period $11.081 $8.559 $10.000 Accumulation unit value at end of period $12.506 $11.081 $8.559 Number of accumulation units outstanding at end of period (in thousands) 34 7 4 AIM SMALL CAP GROWTH FUND Accumulation unit value at beginning of period -- -- -- Accumulation unit value at end of period -- -- -- Number of accumulation units outstanding at end of period (in thousands) -- -- -- JANUS ADVISER WORLDWIDE FUND Accumulation unit value at beginning of period $10.484 $7.829 $10.000 Accumulation unit value at end of period $9.833 $10.484 $7.829 Number of accumulation units outstanding at end of period (in thousands) 9 7 3 MASSACHUSETTS INVESTORS GROWTH STOCK FUND Accumulation unit value at beginning of period $9.129 $7.492 $10.000 Accumulation unit value at end of period $9.943 $9.129 $7.492 Number of accumulation units outstanding at end of period (in thousands) 14 9 6 MFS(R) CAPITAL OPPORTUNITIES FUND Accumulation unit value at beginning of period $9.308 $7.353 $10.000 Accumulation unit value at end of period $10.407 $9.308 $7.353 Number of accumulation units outstanding at end of period (in thousands) 73 63 44 MFS(R) MID CAP GROWTH FUND Accumulation unit value at beginning of period $8.243 $6.013 $10.000 Accumulation unit value at end of period $9.374 $8.243 $6.013 Number of accumulation units outstanding at end of period (in thousands) 33 4 3 MFS(R) VALUE FUND Accumulation unit value at beginning of period $10.738 $8.667 $10.000 Accumulation unit value at end of period $12.277 $10.738 $8.667 Number of accumulation units outstanding at end of period (in thousands) 71 30 21
49
YEAR ENDING DECEMBER 31, 2007 2006 2005 - ----------------------------------------------------------------------------------- MUTUAL SHARES FUND Accumulation unit value at beginning of period $16.067 $13.735 $12.595 Accumulation unit value at end of period $16.404 $16.067 $13.735 Number of accumulation units outstanding at end of period (in thousands) 75 68 58 TEMPLETON FOREIGN FUND Accumulation unit value at beginning of period $18.285 $15.346 $13.961 Accumulation unit value at end of period $21.299 $18.285 $15.346 Number of accumulation units outstanding at end of period (in thousands) 100 123 53 VAN KAMPEN EQUITY AND INCOME FUND Accumulation unit value at beginning of period $14.773 $13.214 $12.336 Accumulation unit value at end of period $15.156 $14.773 $13.214 Number of accumulation units outstanding at end of period (in thousands) 103 129 173 HARTFORD ADVISERS HLS FUND Accumulation unit value at beginning of period $12.379 $11.255 $10.564 Accumulation unit value at end of period $13.115 $12.379 $11.255 Number of accumulation units outstanding at end of period (in thousands) 12 12 331 HARTFORD DIVIDEND AND GROWTH HLS FUND Accumulation unit value at beginning of period $15.058 $12.593 $11.962 Accumulation unit value at end of period $16.196 $15.058 $12.593 Number of accumulation units outstanding at end of period (in thousands) 93 92 173 HARTFORD INDEX HLS FUND Accumulation unit value at beginning of period $13.170 $11.482 $11.059 Accumulation unit value at end of period $13.766 $13.170 $11.482 Number of accumulation units outstanding at end of period (in thousands) 33 34 296 HARTFORD SMALL COMPANY HLS FUND Accumulation unit value at beginning of period $17.329 $15.243 $12.679 Accumulation unit value at end of period $19.666 $17.329 $15.243 Number of accumulation units outstanding at end of period (in thousands) 66 97 57 HARTFORD STOCK HLS FUND Accumulation unit value at beginning of period $12.520 $10.991 $10.092 Accumulation unit value at end of period $13.174 $12.520 $10.991 Number of accumulation units outstanding at end of period (in thousands) 5 6 177 HARTFORD TOTAL RETURN BOND HLS FUND Accumulation unit value at beginning of period $12.850 $12.341 $12.124 Accumulation unit value at end of period $13.363 $12.850 $12.341 Number of accumulation units outstanding at end of period (in thousands) 79 63 160 YEAR ENDING DECEMBER 31, 2004 2003 2002 - -------------------------------- -------------------------------------------- MUTUAL SHARES FUND Accumulation unit value at beginning of period $11.192 $8.945 $10.000 Accumulation unit value at end of period $12.595 $11.192 $8.945 Number of accumulation units outstanding at end of period (in thousands) 3 27 14 TEMPLETON FOREIGN FUND Accumulation unit value at beginning of period $11.895 $9.173 $10.000 Accumulation unit value at end of period $13.961 $11.895 $9.173 Number of accumulation units outstanding at end of period (in thousands) 38 18 14 VAN KAMPEN EQUITY AND INCOME FUND Accumulation unit value at beginning of period $11.109 $9.153 $10.000 Accumulation unit value at end of period $12.336 $11.109 $9.153 Number of accumulation units outstanding at end of period (in thousands) 122 52 36 HARTFORD ADVISERS HLS FUND Accumulation unit value at beginning of period $10.249 $8.706 $10.000 Accumulation unit value at end of period $10.564 $10.249 $8.706 Number of accumulation units outstanding at end of period (in thousands) 317 277 240 HARTFORD DIVIDEND AND GROWTH HLS FUND Accumulation unit value at beginning of period $10.709 $8.501 $10.000 Accumulation unit value at end of period $11.962 $10.709 $8.501 Number of accumulation units outstanding at end of period (in thousands) 157 105 73 HARTFORD INDEX HLS FUND Accumulation unit value at beginning of period $10.083 $7.920 $10.000 Accumulation unit value at end of period $11.059 $10.083 $7.920 Number of accumulation units outstanding at end of period (in thousands) 274 223 182 HARTFORD SMALL COMPANY HLS FUND Accumulation unit value at beginning of period $11.376 $7.346 $10.000 Accumulation unit value at end of period $12.679 $11.376 $7.346 Number of accumulation units outstanding at end of period (in thousands) 40 3 1 HARTFORD STOCK HLS FUND Accumulation unit value at beginning of period $9.751 $7.760 $10.000 Accumulation unit value at end of period $10.092 $9.751 $7.760 Number of accumulation units outstanding at end of period (in thousands) 175 165 123 HARTFORD TOTAL RETURN BOND HLS FUND Accumulation unit value at beginning of period $11.664 $10.886 $10.000 Accumulation unit value at end of period $12.124 $11.664 $10.886 Number of accumulation units outstanding at end of period (in thousands) 141 104 77
50 TABLE OF CONTENTS FOR STATEMENT OF ADDITIONAL INFORMATION
SECTION PAGE - -------------------------------------------------------------------------------- GENERAL INFORMATION 2 Safekeeping of Assets 2 Experts 2 Non-Participating 2 Misstatement of Age or Sex 2 Principal Underwriter 2 PERFORMANCE RELATED INFORMATION 2 Total Return for all Sub-Accounts 2 Yield for Sub-Accounts 3 Money Market Sub-Accounts 3 Additional Materials 3 Performance Comparisons 3 FINANCIAL STATEMENTS
51 This form must be completed for all tax-sheltered annuities. SECTION 403(b)(11) ACKNOWLEDGMENT FORM The Hartford Variable Annuity Contract which you have recently purchased is subject to certain restrictions imposed by the Tax Reform Act of 1986. Contributions to the Contract after December 31, 1988 and any increases in cash value after December 31, 1988 may not be distributed to you unless you have: a. attained age 59 1/2 b. severance from employment c. died, or d. become disabled. Distributions of post-December 31, 1988 Contributions (excluding any income thereon) may also be made if you have experienced a financial hardship. Also there may be a 10% penalty tax for distributions made prior to age 59 1/2 because of financial hardship or separation from service. Also, please be aware that your 403(b) plan may also offer other financial alternatives other than the Hartford variable annuity. Please refer to your Plan. Please complete the following and return to: Hartford Life Insurance Company P.O. Box 1583 Hartford, CT 06144-1583 Name of Contractholder/Participant Address City or Plan/School District Date To obtain a Statement of Additional Information, complete the form below and mail to: Hartford Life Insurance Company P.O. Box 1583 Hartford CT 06144-1583 Please send a Statement of Additional Information for Separate Account Eleven (Form HV-3572-9) to me at the following address: - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City/State Zip Code PART B STATEMENT OF ADDITIONAL INFORMATION HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT ELEVEN This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the prospectus. To obtain a prospectus, send a written request to Hartford Life Insurance Company Attn: IPD/Retirement Plans Service Center, P.O. Box 1583, Hartford, CT 06144-1583 Date of Prospectus: May 1, 2008 Date of Statement of Additional Information: May 1, 2008 TABLE OF CONTENTS GENERAL INFORMATION 2 Safekeeping of Assets 2 Experts 2 Non-Participating 2 Misstatement of Age or Sex 2 Principal Underwriter 2 PERFORMANCE RELATED INFORMATION 2 Total Return for all Sub-Accounts 2 Yield for Sub-Accounts 3 Money Market Sub-Accounts 3 Additional Materials 3 Performance Comparisons 3 FINANCIAL STATEMENTS
2 HARTFORD LIFE INSURANCE COMPANY - ------------------------------------------------------------------------------- GENERAL INFORMATION SAFEKEEPING OF ASSETS Hartford holds title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from Hartford's general corporate assets. Records are maintained of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts. EXPERTS The consolidated balance sheets of Hartford Life Insurance Company (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholder's equity and cash flows for each of the three years in the period ended December 31, 2007 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008 and the statements of assets and liabilities of Hartford Life Insurance Company Separate Account Eleven (the "Account") as of December 31, 2007, and the related statements of operations and changes in net assets for the respective stated periods then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008, which reports are both included in this Statement of Additional Information. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is City Place, 32nd Floor, 185 Asylum Street, Hartford, Connecticut 06103-3402. NON-PARTICIPATING The Contract is non-participating and we pay no dividends. MISSTATEMENT OF AGE OR SEX If an Annuitant's age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest. PRINCIPAL UNDERWRITER Hartford Securities Distribution Company, Inc. ("HSD") serves as Principal Underwriter for the securities issued with respect to the Separate Account. HSD is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of the National Association of Securities Dealers, Inc. HSD is an affiliate of ours. Both HSD and Hartford are ultimately controlled by The Hartford Financial Services Group, Inc. The principal business address of HSD is the same as ours. Hartford currently pays HSD underwriting commissions for its role as Principal Underwriter of all variable annuities associated with this Separate Account. For the past two years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as Principal Underwriter has been: 2007: $5,070,354; 2006: $2,676,193; and 2005: $1,940,960. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. TOTAL RETURN FOR ALL SUB-ACCOUNTS When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of the inception of the Sub-Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, Hartford uses a hypothetical initial premium payment of $1,000.00 and deducts for the mortality and risk expense charge, the highest possible contingent deferred charge, any applicable administrative charge and the Annual Maintenance Fee. HARTFORD LIFE INSURANCE COMPANY 3 - ------------------------------------------------------------------------------- The formula Hartford uses to calculate standardized total return is P(1+T) TO THE POWER OF n = ERV. In this calculation, "P" represents a hypothetical initial premium payment of $1,000.00, "T" represents the average annual total return, "n" represents the number of years and "ERV" represents the redeemable value at the end of the period. In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the date of inception of the underlying fund for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that the contingent deferred sales charge and the Annual Maintenance Fee are not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. YIELD FOR SUB-ACCOUNTS If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance. The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period. The formula Hartford uses to calculate yield is: YIELD = 2[(a - b/cd +1) TO THE POWER OF 6 - 1]. In this calculation, "a" represents the net investment income earned during the period by the underlying fund, "b" represents the expenses accrued for the period, "c" represents the average daily number of Accumulation Units outstanding during the period and "d" represents the maximum offering price per Accumulation Unit on the last day of the period. MONEY MARKET SUB-ACCOUNTS At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance. Current yield of a money market fund Sub-Account is calculated for a seven-day period or the "base period" without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. Hartford takes a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. Hartford then subtracts an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or "BPR". Once the base period return is calculated, Hartford then multiplies it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent. The formula for this calculation is YIELD = BPR x (365/7), where BPR = (A - B)/C. "A" is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. "B" is equal to the amount that Hartford deducts for mortality and expense risk charge, any applicable administrative charge and the Annual Maintenance Fee. "C" represents the value of the Sub-Account at the beginning of the base period. Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation Hartford uses is: EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1) TO THE POWER OF 365/7] - 1. ADDITIONAL MATERIALS We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives. PERFORMANCE COMPARISONS Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract's sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE CONTRACT OWNERS OF HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT ELEVEN AND THE BOARD OF DIRECTORS OF HARTFORD LIFE INSURANCE COMPANY We have audited the accompanying statements of assets and liabilities of each of the individual Sub-Accounts disclosed in Note 1 which comprise the Hartford Life Insurance Company Separate Account Eleven (the "Account"), as of December 31, 2007, and the related statements of operations and changes in net assets for the respective stated periods then ended. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2007, by correspondence with the mutual fund companies; where replies were not received from the mutual fund companies, we performed other auditing procedures. 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 financial position of each of the individual Sub-Accounts constituting Hartford Life Insurance Company Separate Account Eleven as of December 31, 2007, the results of their operations and the changes in their net assets for the respective stated periods then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Hartford, Connecticut February 20, 2008 SA-1 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2007
AMERICAN CENTURY AMERICAN CENTURY EQUITY AMERICAN CENTURY SMALL CAP INCOME FUND ULTRA(R) FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV 467,263 -- 2,468 Class INV 402,986 -- -- Other class -- 569 -- ============ ========= ========= Cost: Class ADV $3,762,621 -- $23,938 Class INV 3,128,959 -- -- Other class -- $15,544 -- ============ ========= ========= Market Value: Class ADV $3,644,655 -- $18,633 Class INV 3,143,294 -- -- Other class -- $13,825 -- Due from Hartford Life Insurance Company 8,316 83 128 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------ --------- --------- Total Assets 6,796,265 13,908 18,761 ------------ --------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 8,316 83 128 Other liabilities -- -- -- ------------ --------- --------- Total Liabilities 8,316 83 128 ------------ --------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $6,787,949 $13,825 $18,633 ============ ========= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 407,032 1,168 1,344 Unit Fair Values # $16.68 $11.84 $13.87
# Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-2
AMERICAN CENTURY AMERICAN CENTURY AMERICAN CENTURY LARGE COMPANY AMERICAN CENTURY INFLATION-ADJUSTED EQUITY VALUE FUND VISTA(SM) FUND BOND FUND GROWTH FUND SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT (B) SUB-ACCOUNT (C) - ------------------------------------------------------------------------------------------------------------------------- ASSETS: INVESTMENTS: NUMBER OF SHARES: CLASS ADV -- 3,023 838 -- CLASS INV -- -- -- -- OTHER CLASS 54 -- -- 3 ======= ========= ======= ======= COST: CLASS ADV -- $56,128 $8,874 -- CLASS INV -- -- -- -- OTHER CLASS $424 -- -- $72 ======= ========= ======= ======= MARKET VALUE: CLASS ADV -- $63,568 $9,414 -- CLASS INV -- -- -- -- OTHER CLASS $385 -- -- $69 DUE FROM HARTFORD LIFE INSURANCE COMPANY -- 100 -- -- RECEIVABLE FROM FUND SHARES SOLD 1 -- 8 1 OTHER ASSETS -- -- -- -- ------- --------- ------- ------- TOTAL ASSETS 386 63,668 9,422 70 ------- --------- ------- ------- LIABILITIES: DUE TO HARTFORD LIFE INSURANCE COMPANY 1 -- 8 1 PAYABLE FOR FUND SHARES PURCHASED -- 100 -- -- OTHER LIABILITIES -- -- -- -- ------- --------- ------- ------- TOTAL LIABILITIES 1 100 8 1 ------- --------- ------- ------- NET ASSETS: FOR VARIABLE ANNUITY CONTRACT LIABILITIES $385 $63,568 $9,414 $69 ======= ========= ======= ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: GROUP SUB-ACCOUNTS: UNITS OWNED BY PARTICIPANTS 33 3,550 854 6 UNIT FAIR VALUES # $11.52 $17.91 $11.03 $11.83 AIM BASIC AIM EUROPEAN AIM INTERNATIONAL VALUE FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (D) - ----------------------------- ------------------------------------------------------------------- ASSETS: INVESTMENTS: NUMBER OF SHARES: CLASS ADV -- -- -- CLASS INV -- -- -- OTHER CLASS 81,087 4,194 1,985 ============ ========== ========= COST: CLASS ADV -- -- -- CLASS INV -- -- -- OTHER CLASS $2,399,896 $191,607 $68,699 ============ ========== ========= MARKET VALUE: CLASS ADV -- -- -- CLASS INV -- -- -- OTHER CLASS $2,554,238 $178,809 $63,607 DUE FROM HARTFORD LIFE INSURANCE COMPANY 284 -- -- RECEIVABLE FROM FUND SHARES SOLD -- 22 27 OTHER ASSETS -- -- -- ------------ ---------- --------- TOTAL ASSETS 2,554,522 178,831 63,634 ------------ ---------- --------- LIABILITIES: DUE TO HARTFORD LIFE INSURANCE COMPANY -- 22 27 PAYABLE FOR FUND SHARES PURCHASED 284 -- -- OTHER LIABILITIES -- -- -- ------------ ---------- --------- TOTAL LIABILITIES 284 22 27 ------------ ---------- --------- NET ASSETS: FOR VARIABLE ANNUITY CONTRACT LIABILITIES $2,554,238 $178,809 $63,607 ============ ========== ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: GROUP SUB-ACCOUNTS: UNITS OWNED BY PARTICIPANTS 184,664 15,913 4,348 UNIT FAIR VALUES # $13.83 $11.24 $14.63
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (c) Funded as of November 28, 2007. (d) Funded as of April 10, 2007. SA-3 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
AIM MID CAP AIM SMALL CAP AIM REAL CORE EQUITY FUND GROWTH FUND ESTATE FUND SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- 16,792 -- Other class 3,004 -- 42,366 ========= ========== ============ Cost: Class ADV -- -- -- Class INV -- $518,614 -- Other class $83,095 -- $1,314,059 ========= ========== ============ Market Value: Class ADV -- -- -- Class INV -- $499,717 -- Other class $70,990 -- $966,781 Due from Hartford Life Insurance Company -- 980 1,917 Receivable from fund shares sold 7 -- -- Other assets -- -- -- --------- ---------- ------------ Total Assets 70,997 500,697 968,698 --------- ---------- ------------ LIABILITIES: Due to Hartford Life Insurance Company 7 -- -- Payable for fund shares purchased -- 980 1,917 Other liabilities -- -- -- --------- ---------- ------------ Total Liabilities 7 980 1,917 --------- ---------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $70,990 $499,717 $966,781 ========= ========== ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 6,620 43,405 39,824 Unit Fair Values # $10.72 $11.51 $24.28
(e) Funded as of May 11, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-4
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN AIM SMALL CAP DOMINI SOCIAL BALANCED GROWTH AND EQUITY FUND EQUITY FUND SHARES FUND INCOME FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - ---------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 7 107 10,201 26 ======= ======= ========== ======= Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $82 $3,662 $180,559 $119 ======= ======= ========== ======= Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $80 $3,431 $170,863 $110 Due from Hartford Life Insurance Company -- -- 1,695 -- Receivable from fund shares sold 1 4 -- 2 Other assets -- -- -- -- ------- ------- ---------- ------- Total Assets 81 3,435 172,558 112 ------- ------- ---------- ------- LIABILITIES: Due to Hartford Life Insurance Company 1 4 -- 2 Payable for fund shares purchased -- -- 1,695 -- Other liabilities -- -- -- -- ------- ------- ---------- ------- Total Liabilities 1 4 1,695 2 ------- ------- ---------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $80 $3,431 $170,863 $110 ======= ======= ========== ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 7 302 12,398 9 Unit Fair Values # $11.61 $11.35 $13.78 $12.39 ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN INTERNATIONAL INTERNATIONAL GLOBAL GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 7,842 81,375 6,983 ========== ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $164,590 $1,891,269 $109,874 ========== ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $162,720 $1,804,088 $100,344 Due from Hartford Life Insurance Company -- -- 80 Receivable from fund shares sold 76 6 -- Other assets -- -- -- ---------- ------------ ---------- Total Assets 162,796 1,804,094 100,424 ---------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 76 6 -- Payable for fund shares purchased -- -- 80 Other liabilities -- -- -- ---------- ------------ ---------- Total Liabilities 76 6 80 ---------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $162,720 $1,804,088 $100,344 ========== ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 12,194 101,028 7,402 Unit Fair Values # $13.34 $17.86 $13.56
(c) Funded as of November 28, 2007. (f) Funded as of October 31, 2007. (g) Funded as of February 12, 2007. SA-5 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN CAPITAL INCOME AMCAP FUND BALANCED FUND BUILDER FUND SUB-ACCOUNT (D) SUB-ACCOUNT (E) SUB-ACCOUNT (D) - ------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 1,269 2,298 50,227 ========= ========= ============ Cost: Class ADV -- -- -- Class INV -- -- -- Other class $26,310 $46,025 $3,272,744 ========= ========= ============ Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $25,323 $44,204 $3,142,180 Due from Hartford Life Insurance Company -- -- 9,634 Receivable from fund shares sold 19 38 -- Other assets -- -- 2 --------- --------- ------------ Total Assets 25,342 44,242 3,151,816 --------- --------- ------------ LIABILITIES: Due to Hartford Life Insurance Company 19 38 -- Payable for fund shares purchased -- -- 9,634 Other liabilities -- -- -- --------- --------- ------------ Total Liabilities 19 38 9,634 --------- --------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $25,323 $44,204 $3,142,182 ========= ========= ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 2,201 3,848 257,946 Unit Fair Values # $11.51 $11.49 $12.18
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-6
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS EUROPACIFIC FUNDAMENTAL AMERICAN FUNDS THE BOND GROWTH FUND INVESTORS FUND NEW PERSPECTIVE FUND FUND OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT (I) - ------------------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 40,743 8,503 2,983 29,747 ============ ========== ========== ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $2,051,156 $373,329 $106,345 $392,162 ============ ========== ========== ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $2,039,597 $360,344 $99,886 $388,500 Due from Hartford Life Insurance Company 1,468 -- -- -- Receivable from fund shares sold -- 48 66 530 Other assets -- -- -- -- ------------ ---------- ---------- ---------- Total Assets 2,041,065 360,392 99,952 389,030 ------------ ---------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 48 66 530 Payable for fund shares purchased 1,469 -- -- -- Other liabilities -- -- -- -- ------------ ---------- ---------- ---------- Total Liabilities 1,469 48 66 530 ------------ ---------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $2,039,596 $360,344 $99,886 $388,500 ============ ========== ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 96,371 28,701 8,063 36,679 Unit Fair Values # $21.16 $12.55 $12.39 $10.59 AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE GROWTH FUND OF THE INCOME THE INVESTMENT AMERICA FUND FUND OF AMERICA COMPANY OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (J) SUB-ACCOUNT (D) - -------------------------- ---------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 205,504 47,890 8,638 ============ ========== ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $7,090,642 $982,776 $306,332 ============ ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $6,888,493 $926,191 $284,028 Due from Hartford Life Insurance Company 30,349 5,305 -- Receivable from fund shares sold -- -- 151 Other assets -- -- -- ------------ ---------- ---------- Total Assets 6,918,842 931,496 284,179 ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 151 Payable for fund shares purchased 30,349 5,305 -- Other liabilities -- -- -- ------------ ---------- ---------- Total Liabilities 30,349 5,305 151 ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $6,888,493 $926,191 $284,028 ============ ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 426,800 87,349 24,482 Unit Fair Values # $16.14 $10.60 $11.60
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. (i) Funded as of February 27, 2007. (j) Funded as of February 6, 2007. SA-7 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE NEW WASHINGTON AMERICAN ECONOMY FUND MUTUAL INVESTORS MUTUAL FUND SUB-ACCOUNT (I) SUB-ACCOUNT SUB-ACCOUNT (D) - ----------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 15,718 907 252 ========== ========= ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $458,278 $32,391 $7,598 ========== ========= ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $422,503 $30,343 $7,094 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 424 75 7 Other assets -- -- -- ---------- --------- ------- Total Assets 422,927 30,418 7,101 ---------- --------- ------- LIABILITIES: Due to Hartford Life Insurance Company 424 75 7 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- --------- ------- Total Liabilities 424 75 7 ---------- --------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $422,503 $30,343 $7,094 ========== ========= ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 38,635 2,627 623 Unit Fair Values # $10.94 $11.55 $11.39
(d) Funded as of April 10, 2007. (i) Funded as of February 27, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-8
AMERICAN FUNDS CAPITAL AMERICAN FUNDS ARIEL WORLD GROWTH & SMALLCAP APPRECIATION INCOME FUND WORLD FUND FUND ARIEL FUND SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- 820 331 Other class 98,936 4,558 -- -- ============ ========== ========= ========= Cost: Class ADV -- -- -- -- Class INV -- -- $39,474 $17,535 Other class $4,372,592 $200,773 -- -- ============ ========== ========= ========= Market Value: Class ADV -- -- -- -- Class INV -- -- $35,329 $15,360 Other class $4,393,740 $183,327 -- -- Due from Hartford Life Insurance Company 3,456 -- 55 -- Receivable from fund shares sold -- 20 -- 5 Other assets -- -- -- -- ------------ ---------- --------- --------- Total Assets 4,397,196 183,347 35,384 15,365 ------------ ---------- --------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- 20 -- 5 Payable for fund shares purchased 3,456 -- 55 -- Other liabilities -- -- -- -- ------------ ---------- --------- --------- Total Liabilities 3,456 20 55 5 ------------ ---------- --------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $4,393,740 $183,327 $35,329 $15,360 ============ ========== ========= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 249,290 13,578 3,025 1,378 Unit Fair Values # $17.63 $13.50 $11.68 $11.15 ARTISAN MID CAP LIFEPATH LIFEPATH VALUE FUND 2010 PORTFOLIO 2020 PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV 47,329 -- -- Other class -- 78,335 123,395 ========== ============ ============ Cost: Class ADV -- -- -- Class INV $934,634 -- -- Other class -- $1,059,008 $2,095,499 ========== ============ ============ Market Value: Class ADV -- -- -- Class INV $856,658 -- -- Other class -- $1,017,716 $2,035,618 Due from Hartford Life Insurance Company 2,818 1,006 5,878 Receivable from fund shares sold -- -- -- Other assets -- -- -- ---------- ------------ ------------ Total Assets 859,476 1,018,722 2,041,496 ---------- ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 2,818 1,006 5,878 Other liabilities -- -- -- ---------- ------------ ------------ Total Liabilities 2,818 1,006 5,878 ---------- ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $856,658 $1,017,716 $2,035,618 ========== ============ ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 66,429 95,722 181,737 Unit Fair Values # $12.90 $10.63 $11.20
(h) Funded as of June 4, 2007. SA-9 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
LIFEPATH LIFEPATH LIFEPATH 2030 PORTFOLIO 2040 PORTFOLIO RETIREMENT PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 120,090 72,154 9,552 ============ ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $2,021,345 $1,482,727 $108,254 ============ ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $1,919,088 $1,420,352 $105,798 Due from Hartford Life Insurance Company 5,798 2,258 445 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------ ------------ ---------- Total Assets 1,924,886 1,422,610 106,243 ------------ ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 5,798 2,258 445 Other liabilities -- -- -- ------------ ------------ ---------- Total Liabilities 5,798 2,258 445 ------------ ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $1,919,088 $1,420,352 $105,798 ============ ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 171,721 129,724 9,401 Unit Fair Values # $11.18 $10.95 $11.25
# Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-10
BLACKROCK CALVERT SOCIAL BARON SMALL GOVERNMENT INVESTMENT FUND CALVERT LARGE CAP FUND INCOME FUND EQUITY PORTFOLIO CAP GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 2,062 998 7,046 3,567 ========= ========= ========== ========= Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $49,536 $10,409 $262,864 $112,748 ========= ========= ========== ========= Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $49,133 $10,652 $272,062 $126,615 Due from Hartford Life Insurance Company 191 216 332 95 Receivable from fund shares sold -- -- -- -- Other assets -- -- -- -- --------- --------- ---------- --------- Total Assets 49,324 10,868 272,394 126,710 --------- --------- ---------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- -- Payable for fund shares purchased 191 216 332 95 Other liabilities -- -- -- -- --------- --------- ---------- --------- Total Liabilities 191 216 332 95 --------- --------- ---------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $49,133 $10,652 $272,062 $126,615 ========= ========= ========== ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 3,510 1,004 20,822 10,146 Unit Fair Values # $14.00 $10.61 $13.07 $12.48 CALVERT SOCIAL COLUMBIA MARSICO INVESTMENT INTERNATIONAL COLUMBIA MARSICO BOND FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (K) SUB-ACCOUNT (D) SUB-ACCOUNT (L) - ----------------------------- ------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 3,039 1,113 3,326 ========= ========= ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $48,352 $17,547 $75,512 ========= ========= ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $48,228 $17,879 $76,166 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 58 16 14 Other assets -- -- -- --------- --------- --------- Total Assets 48,286 17,895 76,180 --------- --------- --------- LIABILITIES: Due to Hartford Life Insurance Company 58 16 14 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- --------- --------- --------- Total Liabilities 58 16 14 --------- --------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $48,228 $17,879 $76,166 ========= ========= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 4,514 1,187 5,963 Unit Fair Values # $10.68 $15.07 $12.77
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. (k) Funded as of February 1, 2007. (l) Funded as of July 2, 2007. SA-11 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
DAVIS CRM MID CAP DAVIS NEW YORK VALUE FUND FINANCIAL FUND VENTURE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV 6,732 -- -- Other class -- 6 50,340 ========== ======= ============ Cost: Class ADV -- -- -- Class INV $195,010 -- -- Other class -- $292 $1,968,513 ========== ======= ============ Market Value: Class ADV -- -- -- Class INV $196,245 -- -- Other class -- $243 $2,014,110 Due from Hartford Life Insurance Company 80 -- 544 Receivable from fund shares sold -- -- -- Other assets -- -- -- ---------- ------- ------------ Total Assets 196,325 243 2,014,654 ---------- ------- ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 80 -- 544 Other liabilities -- -- -- ---------- ------- ------------ Total Liabilities 80 -- 544 ---------- ------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $196,245 $243 $2,014,110 ========== ======= ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 14,897 22 126,969 Unit Fair Values # $13.17 $11.21 $15.86
(a) Funded as of March 21, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-12
DREYFUS LIFETIME DAVIS GROWTH AND DREYFUS LIFETIME DREYFUS LIFETIME OPPORTUNITY FUND INCOME PORTFOLIO GROWTH PORTFOLIO INCOME PORTFOLIO SUB-ACCOUNT (M) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- 27,165 14,893 14,863 Other class 3,053 -- -- -- ========= =========== =========== =========== Cost: Class ADV -- -- -- -- Class INV -- $449,804 $241,319 $187,020 Other class $88,571 -- -- -- ========= =========== =========== =========== Market Value: Class ADV -- -- -- -- Class INV -- $443,604 $246,038 $187,569 Other class $76,910 -- -- -- Due from Hartford Life Insurance Company -- 3,954 134 -- Receivable from fund shares sold 18 -- -- 10 Other assets -- -- -- -- --------- ----------- ----------- ----------- Total Assets 76,928 447,558 246,172 187,579 --------- ----------- ----------- ----------- LIABILITIES: Due to Hartford Life Insurance Company 18 -- -- 10 Payable for fund shares purchased -- 3,954 134 -- Other liabilities -- -- -- -- --------- ----------- ----------- ----------- Total Liabilities 18 3,954 134 10 --------- ----------- ----------- ----------- NET ASSETS: For Variable Annuity Contract Liabilities $76,910 $443,604 $246,038 $187,569 ========= =========== =========== =========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 7,085 33,888 19,698 15,433 Unit Fair Values # $10.86 $13.09 $12.49 $12.15 DREYFUS PREMIER DREYFUS MIDCAP DREYFUS SMALLCAP CORE BOND FUND INDEX FUND STOCK INDEX FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 79,605 1,775 756 ============= ========= ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $1,143,340 $53,360 $18,206 ============= ========= ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $1,119,243 $50,311 $16,096 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 100 62 24 Other assets 12 -- -- ------------- --------- --------- Total Assets 1,119,355 50,373 16,120 ------------- --------- --------- LIABILITIES: Due to Hartford Life Insurance Company 100 62 24 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------- --------- --------- Total Liabilities 100 62 24 ------------- --------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $1,119,255 $50,311 $16,096 ============= ========= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 87,207 2,867 964 Unit Fair Values # $12.83 $17.55 $16.68
(m) Funded as of July 6, 2007. SA-13 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
DREYFUS PREMIER EATON VANCE EATON VANCE SMALL CAP LARGE-CAP DIVIDEND VALUE FUND VALUE FUND BUILDER FUND SUB-ACCOUNT (VV) SUB-ACCOUNT SUB-ACCOUNT (N) - ---------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class -- 12,761 3,334 ======= ========== ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $ -- $281,843 $50,527 ======= ========== ========= Market Value: Class ADV $ -- -- -- Class INV -- -- -- Other class -- $287,379 $49,282 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold -- 26 19 Other assets -- -- -- ------- ---------- --------- Total Assets -- 287,405 49,301 ------- ---------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- 26 19 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------- ---------- --------- Total Liabilities -- 26 19 ------- ---------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $ -- $287,379 $49,282 ======= ========== ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants -- 27,643 3,836 Unit Fair Values # $11.27 $10.40 $12.85
(n) Funded as of January 12, 2007. (vv) Sub-Account not funded at December 31, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-14
ALGER CAPITAL EATON VANCE EATON VANCE APPRECIATION ALGER MIDCAP WORLDWIDE HEALTH INCOME INSTITUTIONAL GROWTH SCIENCES FUND FUND OF BOSTON PORTFOLIO INSTITUTIONAL FUND SUB-ACCOUNT (N) SUB-ACCOUNT (A) SUB-ACCOUNT (K) SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 130 48,166 11,011 13,684 ======= ========== ========== ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,521 $300,167 $215,539 $287,045 ======= ========== ========== ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,336 $298,147 $240,579 $261,371 Due from Hartford Life Insurance Company -- 1,340 1,594 -- Receivable from fund shares sold -- -- -- 26 Other assets -- 1 -- -- ------- ---------- ---------- ---------- Total Assets 1,336 299,488 242,173 261,397 ------- ---------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- 26 Payable for fund shares purchased -- 1,340 1,594 -- Other liabilities -- -- -- -- ------- ---------- ---------- ---------- Total Liabilities -- 1,340 1,594 26 ------- ---------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $1,336 $298,148 $240,579 $261,371 ======= ========== ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 115 29,550 19,280 21,958 Unit Fair Values # $11.61 $10.09 $12.48 $11.90 FEDERATED FIDELITY FIDELITY FUND FOR U.S. ADVISOR EQUITY ADVISOR VALUE GOVERNMENT GROWTH FUND STRATEGIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (O) - ----------------------------- -------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 194 27,393 751 ========= ========== ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $12,756 $802,742 $5,779 ========= ========== ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $12,516 $734,416 $5,788 Due from Hartford Life Insurance Company -- 102 55 Receivable from fund shares sold 18 -- -- Other assets -- -- -- --------- ---------- ------- Total Assets 12,534 734,518 5,843 --------- ---------- ------- LIABILITIES: Due to Hartford Life Insurance Company 18 -- -- Payable for fund shares purchased -- 102 55 Other liabilities -- -- -- --------- ---------- ------- Total Liabilities 18 102 55 --------- ---------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $12,516 $734,416 $5,788 ========= ========== ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 910 42,621 531 Unit Fair Values # $13.76 $17.23 $10.89
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (o) Funded as of October 25, 2007. SA-15 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
FEDERATED FEDERATED MID CAP GROWTH FEDERATED SHORT-TERM STRATEGIES FUND KAUFMAN FUND INCOME FUND SUB-ACCOUNT (P) SUB-ACCOUNT (G) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 5 46,731 15,785 ======= ========== ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $215 $298,552 $135,135 ======= ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $210 $291,132 $131,962 Due from Hartford Life Insurance Company -- 2,203 1 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------- ---------- ---------- Total Assets 210 293,335 131,963 ------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased -- 2,203 1 Other liabilities -- -- -- ------- ---------- ---------- Total Liabilities -- 2,203 1 ------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $210 $291,132 $131,962 ======= ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 17 22,658 11,507 Unit Fair Values # $12.72 $12.85 $11.47
(g) Funded as of February 12, 2007. (p) Funded as of October 29, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-16
TEMPLETON FRANKLIN DEVELOPING FRANKLIN TEMPLETON SMALL CAP MARKETS TRUST HIGH INCOME FUND GLOBAL BOND FUND VALUE FUND SUB-ACCOUNT (A) SUB-ACCOUNT (Q) SUB-ACCOUNT (M) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 16,373 7,998 4,649 10,360 ========== ========= ========= ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $538,013 $16,559 $53,701 $466,131 ========== ========= ========= ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $499,383 $16,315 $53,090 $419,159 Due from Hartford Life Insurance Company 4,072 -- -- 8,165 Receivable from fund shares sold -- 26 6 -- Other assets -- -- -- -- ---------- --------- --------- ---------- Total Assets 503,455 16,341 53,096 427,324 ---------- --------- --------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 26 6 -- Payable for fund shares purchased 4,072 -- -- 8,165 Other liabilities -- -- -- -- ---------- --------- --------- ---------- Total Liabilities 4,072 26 6 8,165 ---------- --------- --------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $499,383 $16,315 $53,090 $419,159 ========== ========= ========= ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 36,277 1,493 4,561 31,233 Unit Fair Values # $13.77 $10.92 $11.64 $13.42 MUTUAL TEMPLETON FRANKLIN DISCOVERY FUND GROWTH FUND INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 25,546 34,049 415,036 ========== ========== ============ Cost: Class ADV -- -- -- Class INV -- -- -- Other class $846,687 $890,888 $1,120,517 ========== ========== ============ Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $819,764 $819,556 $1,074,944 Due from Hartford Life Insurance Company -- 174 -- Receivable from fund shares sold 106 -- 86 Other assets -- -- -- ---------- ---------- ------------ Total Assets 819,870 819,730 1,075,030 ---------- ---------- ------------ LIABILITIES: Due to Hartford Life Insurance Company 106 -- 86 Payable for fund shares purchased -- 174 -- Other liabilities -- -- -- ---------- ---------- ------------ Total Liabilities 106 174 86 ---------- ---------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $819,764 $819,556 $1,074,944 ========== ========== ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 63,891 52,180 93,337 Unit Fair Values # $12.83 $15.71 $11.52
(a) Funded as of March 21, 2007. (m) Funded as of July 6, 2007. (q) Funded as of July 19, 2007. SA-17 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
FRANKLIN FRANKLIN CAPITAL BALANCE SHEET MUTUAL GROWTH FUND INVESTMENT FUND BEACON FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 6 78,506 28,879 ======= ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $83 $4,480,650 $503,941 ======= ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $78 $4,550,187 $451,382 Due from Hartford Life Insurance Company -- 8 117 Receivable from fund shares sold 1 -- -- Other assets -- -- -- ------- ------------ ---------- Total Assets 79 4,550,195 451,499 ------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 1 -- -- Payable for fund shares purchased -- 8 117 Other liabilities -- -- -- ------- ------------ ---------- Total Liabilities 1 8 117 ------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $78 $4,550,187 $451,382 ======= ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 7 244,787 44,838 Unit Fair Values # $12.06 $18.59 $10.07
(r) Funded as of June 1, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-18
FRANKLIN FRANKLIN FRANKLIN FRANKLIN MUTUAL SMALL-MID CAP TEMPLETON TEMPLETON GROWTH SHARES FUND GROWTH FUND CONSERVATIVE TARGET TARGET FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 133,667 47,565 723 8,807 ============ ============ ======= ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $3,263,602 $1,680,052 $9,907 $143,182 ============ ============ ======= ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $3,361,724 $1,684,274 $9,827 $142,405 Due from Hartford Life Insurance Company -- 3,698 -- 303 Receivable from fund shares sold 308 -- 30 -- Other assets -- -- -- -- ------------ ------------ ------- ---------- Total Assets 3,362,032 1,687,972 9,857 142,708 ------------ ------------ ------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 308 -- 30 -- Payable for fund shares purchased -- 3,698 -- 303 Other liabilities -- -- -- -- ------------ ------------ ------- ---------- Total Liabilities 308 3,698 30 303 ------------ ------------ ------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $3,361,724 $1,684,274 $9,827 $142,405 ============ ============ ======= ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 204,760 126,532 858 11,736 Unit Fair Values # $16.42 $13.31 $11.45 $12.13 FRANKLIN TEMPLETON MODERATE TEMPLETON GE PREMIER TARGET FUND FOREIGN FUND GROWTH EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 31,148 308,965 370 ========== ============ ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $452,842 $3,821,809 $9,650 ========== ============ ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $446,973 $3,868,236 $8,823 Due from Hartford Life Insurance Company 420 46,316 311 Receivable from fund shares sold -- -- -- Other assets -- -- -- ---------- ------------ ------- Total Assets 447,393 3,914,552 9,134 ---------- ------------ ------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 420 46,316 311 Other liabilities -- -- -- ---------- ------------ ------- Total Liabilities 420 46,316 311 ---------- ------------ ------- NET ASSETS: For Variable Annuity Contract Liabilities $446,973 $3,868,236 $8,823 ========== ============ ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 38,294 181,192 725 Unit Fair Values # $11.67 $21.35 $12.17
(h) Funded as of June 4, 2007. SA-19 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS CAPITAL CORE FIXED GOVERNMENT GROWTH FUND INCOME FUND INCOME FUND SUB-ACCOUNT (D) SUB-ACCOUNT (S) SUB-ACCOUNT (T) - --------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 89 194 1,489 ======= ======= ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $2,039 $1,911 $21,941 ======= ======= ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $2,147 $1,935 $22,343 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 3 14 26 Other assets -- -- -- ------- ------- --------- Total Assets 2,150 1,949 22,369 ------- ------- --------- LIABILITIES: Due to Hartford Life Insurance Company 3 14 26 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------- ------- --------- Total Liabilities 3 14 26 ------- ------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $2,147 $1,935 $22,343 ======= ======= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 182 178 2,041 Unit Fair Values # $11.80 $10.85 $10.95
(d) Funded as of April 10, 2007. (s) Funded as of July 23, 2007. (t) Funded as of July 3, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-20
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GROWTH & GROWTH MID CAP SMALL CAP INCOME FUND OPPORTUNITIES FUND VALUE FUND VALUE FUND SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT (D) - ------------------------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 27,642 198 93,982 6,347 ========== ======= ============ ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $828,243 $4,686 $3,718,465 $264,493 ========== ======= ============ ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $723,936 $4,472 $3,322,278 $217,141 Due from Hartford Life Insurance Company -- -- 775 -- Receivable from fund shares sold 33 4 -- 50 Other assets -- -- -- -- ---------- ------- ------------ ---------- Total Assets 723,969 4,476 3,323,053 217,191 ---------- ------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 33 4 -- 50 Payable for fund shares purchased -- -- 775 -- Other liabilities -- -- -- -- ---------- ------- ------------ ---------- Total Liabilities 33 4 775 50 ---------- ------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $723,936 $4,472 $3,322,278 $217,141 ========== ======= ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 62,455 351 145,524 23,243 Unit Fair Values # $11.59 $12.73 $22.83 $9.34 JOHN HANCOCK GOLDMAN SACHS SMALL CAP HARTFORD ADVISERS HIGH YIELD FUND EQUITY FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 42,769 65,921 281,099 ========== ============ ============ Cost: Class ADV -- -- -- Class INV -- -- -- Other class $343,290 $1,220,368 $6,315,791 ========== ============ ============ Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $325,896 $1,493,108 $5,895,967 Due from Hartford Life Insurance Company 210 2,561 -- Receivable from fund shares sold -- -- 845 Other assets 8 -- -- ---------- ------------ ------------ Total Assets 326,114 1,495,669 5,896,812 ---------- ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- 845 Payable for fund shares purchased 210 2,561 -- Other liabilities 2 -- -- ---------- ------------ ------------ Total Liabilities 212 2,561 845 ---------- ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $325,902 $1,493,108 $5,895,967 ========== ============ ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 29,417 124,624 513,449 Unit Fair Values # $11.08 $11.98 $11.48
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. SA-21 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
HARTFORD TOTAL HARTFORD CAPITAL HARTFORD LARGECAP RETURN BOND APPRECIATION GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (U)(V)(W) SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 8,330 793,622 509,105 ========== ============ ============= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $173,527 $9,220,527 $26,374,560 ========== ============ ============= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $164,748 $8,843,325 $26,705,556 Due from Hartford Life Insurance Company -- 50,780 11,356 Receivable from fund shares sold 23 -- -- Other assets -- -- -- ---------- ------------ ------------- Total Assets 164,771 8,894,105 26,716,912 ---------- ------------ ------------- LIABILITIES: Due to Hartford Life Insurance Company 23 -- -- Payable for fund shares purchased -- 50,780 11,356 Other liabilities -- -- -- ---------- ------------ ------------- Total Liabilities 23 50,780 11,356 ---------- ------------ ------------- NET ASSETS: For Variable Annuity Contract Liabilities $164,748 $8,843,325 $26,705,556 ========== ============ ============= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 16,107 787,651 1,215,919 Unit Fair Values # $10.23 $11.23 $21.96
(u) Effective February 5, 2007, Hartford LargeCap Growth HLS Fund merged with Hartford Blue Chip Stock HLS Fund. (v) Formerly Hartford Blue Chip Stock HLS Fund. Change effective February 5, 2007. (w) Funded as of February 2, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-22
HARTFORD DIVIDEND HARTFORD GLOBAL HARTFORD GLOBAL HARTFORD GLOBAL AND GROWTH ADVISERS COMMUNICATIONS HEALTH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (X) SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 437,088 8,522 19 58,840 ============ ========== ======= ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $8,706,783 $111,558 $186 $965,835 ============ ========== ======= ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $9,765,901 $115,976 $185 $905,055 Due from Hartford Life Insurance Company -- 86 -- 944 Receivable from fund shares sold 165,796 -- 3 -- Other assets -- -- -- -- ------------ ---------- ------- ---------- Total Assets 9,931,697 116,062 188 905,999 ------------ ---------- ------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 165,796 -- 3 -- Payable for fund shares purchased -- 86 -- 944 Other liabilities -- -- -- -- ------------ ---------- ------- ---------- Total Liabilities 165,796 86 3 944 ------------ ---------- ------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $9,765,901 $115,976 $185 $905,055 ============ ========== ======= ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 1,400,616 16,564 12 49,902 Unit Fair Values # $6.97 $7.00 $16.28 $18.14 HARTFORD GLOBAL HARTFORD GLOBAL GROWTH TECHNOLOGY HARTFORD GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 5 40,214 14,425 ======= ========== ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $119 $229,394 $184,632 ======= ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $114 $275,986 $193,107 Due from Hartford Life Insurance Company -- 81 67 Receivable from fund shares sold 1 -- -- Other assets -- -- -- ------- ---------- ---------- Total Assets 115 276,067 193,174 ------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 1 -- -- Payable for fund shares purchased -- 81 67 Other liabilities -- -- -- ------- ---------- ---------- Total Liabilities 1 81 67 ------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $114 $275,986 $193,107 ======= ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 8 34,999 14,443 Unit Fair Values # $13.88 $7.89 $13.37
(r) Funded as of June 1, 2007. (x) Funded as of November 16, 2007. SA-23 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
HARTFORD GROWTH HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD INDEX GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (Y) - ------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 12,180 214,936 9,032 ========== ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $410,683 $6,598,022 $126,077 ========== ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $395,835 $6,777,105 $130,670 Due from Hartford Life Insurance Company 60 -- 29 Receivable from fund shares sold -- 73,065 -- Other assets -- -- -- ---------- ------------ ---------- Total Assets 395,895 6,850,170 130,699 ---------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 73,065 -- Payable for fund shares purchased 60 -- 29 Other liabilities -- -- -- ---------- ------------ ---------- Total Liabilities 60 73,065 29 ---------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $395,835 $6,777,105 $130,670 ========== ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 26,955 1,164,777 7,634 Unit Fair Values # $14.69 $5.82 $17.12
(y) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-24
HARTFORD INTERNATIONAL HARTFORD MONEY HARTFORD MORTGAGE OPPORTUNITIES HARTFORD MIDCAP MARKET SECURITIES HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (Z) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 100 325,021 5,398,908 78,991 ======= ============ ============ ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,797 $8,373,443 $5,398,908 $884,612 ======= ============ ============ ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,578 $8,561,783 $5,398,908 $834,895 Due from Hartford Life Insurance Company -- -- 10,796 174 Receivable from fund shares sold 4 112,177 -- -- Other assets -- -- 4 -- ------- ------------ ------------ ---------- Total Assets 1,582 8,673,960 5,409,708 835,069 ------- ------------ ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 4 112,177 -- -- Payable for fund shares purchased -- -- 10,796 174 Other liabilities -- -- -- -- ------- ------------ ------------ ---------- Total Liabilities 4 112,177 10,796 174 ------- ------------ ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $1,578 $8,561,783 $5,398,912 $834,895 ======= ============ ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 105 425,863 538,595 117,568 Unit Fair Values # $14.93 $20.10 $10.02 $7.10 HARTFORD SMALL HARTFORD SMALLCAP COMPANY GROWTH HARTFORD STOCK HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 129,983 1,860 88,263 ============ ========= ============ Cost: Class ADV -- -- -- Class INV -- -- -- Other class $2,234,574 $39,472 $4,142,122 ============ ========= ============ Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $2,419,915 $34,778 $4,158,288 Due from Hartford Life Insurance Company 5,508 3 739 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------ --------- ------------ Total Assets 2,425,423 34,781 4,159,027 ------------ --------- ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 5,508 3 739 Other liabilities -- -- -- ------------ --------- ------------ Total Liabilities 5,508 3 739 ------------ --------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $2,419,915 $34,778 $4,158,288 ============ ========= ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 350,969 3,239 333,278 Unit Fair Values # $6.89 $10.74 $12.48
(z) Funded as of September 28, 2007. SA-25 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
HARTFORD VALUE HOTCHKIS AND WILEY OPPORTUNITIES LARGE CAP AIM FINANCIAL HLS FUND VALUE FUND SERVICES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- 21,559 Other class 56,837 33,371 -- ============ ========== ========== Cost: Class ADV -- -- -- Class INV -- -- $562,510 Other class $1,100,886 $798,662 -- ============ ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- $397,971 Other class $875,110 $677,424 -- Due from Hartford Life Insurance Company -- -- 87 Receivable from fund shares sold 30 138 -- Other assets -- -- -- ------------ ---------- ---------- Total Assets 875,140 677,562 398,058 ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 30 138 -- Payable for fund shares purchased -- -- 87 Other liabilities -- -- -- ------------ ---------- ---------- Total Liabilities 30 138 87 ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $875,110 $677,424 $397,971 ============ ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 77,474 52,523 36,505 Unit Fair Values # $11.30 $12.90 $10.90
# Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-26
IVY GLOBAL AIM LEISURE AIM TECHNOLOGY NATURAL JANUS ADVISER FUND FUND RESOURCES FUND FORTY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV 13,589 10,859 -- -- Other class -- -- 12,567 74,289 ========== ========== ========== =========== Cost: Class ADV -- -- -- -- Class INV $587,635 $281,547 -- -- Other class -- -- $491,279 $2,196,884 ========== ========== ========== =========== Market Value: Class ADV -- -- -- -- Class INV $589,072 $332,173 -- -- Other class -- -- $491,358 $3,080,040 Due from Hartford Life Insurance Company 355 89 5,762 1,437 Receivable from fund shares sold -- -- -- -- Other assets -- -- -- -- ---------- ---------- ---------- ----------- Total Assets 589,427 332,262 497,120 3,081,477 ---------- ---------- ---------- ----------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- -- Payable for fund shares purchased 355 89 5,762 1,437 Other liabilities -- -- -- -- ---------- ---------- ---------- ----------- Total Liabilities 355 89 5,762 1,437 ---------- ---------- ---------- ----------- NET ASSETS: For Variable Annuity Contract Liabilities $589,072 $332,173 $491,358 $3,080,040 ========== ========== ========== =========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 40,602 38,147 34,185 172,125 Unit Fair Values # $14.51 $8.71 $14.37 $17.89 JANUS ADVISER KEELEY INTERNATIONAL JANUS ADVISER SMALL CAP GROWTH FUND WORLDWIDE FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 52,097 6,964 51,364 =========== ========== =========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $2,554,891 $196,924 $1,327,195 =========== ========== =========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $3,356,101 $251,800 $1,401,203 Due from Hartford Life Insurance Company 2,063 10 168 Receivable from fund shares sold -- -- -- Other assets -- -- -- ----------- ---------- ----------- Total Assets 3,358,164 251,810 1,401,371 ----------- ---------- ----------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 2,063 10 168 Other liabilities -- 1 -- ----------- ---------- ----------- Total Liabilities 2,063 11 168 ----------- ---------- ----------- NET ASSETS: For Variable Annuity Contract Liabilities $3,356,101 $251,799 $1,401,203 =========== ========== =========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 113,781 80,851 92,921 Unit Fair Values # $29.50 $3.11 $15.08
(n) Funded as of January 12, 2007. SA-27 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
LORD ABBETT LORD ABBETT LORD ABBETT BOND AFFILIATED FUND ALL VALUE FUND DEBENTURE FUND SUB-ACCOUNT (S) SUB-ACCOUNT (H) SUB-ACCOUNT (E) - --------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 872 1,556 7,098 ========= ========= ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $12,275 $20,807 $56,371 ========= ========= ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $12,178 $18,826 $56,217 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 29 40 11 Other assets -- -- -- --------- --------- --------- Total Assets 12,207 18,866 56,228 --------- --------- --------- LIABILITIES: Due to Hartford Life Insurance Company 29 40 11 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- --------- --------- --------- Total Liabilities 29 40 11 --------- --------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $12,178 $18,826 $56,217 ========= ========= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 1,202 1,644 5,045 Unit Fair Values # $10.13 $11.45 $11.14
(e) Funded as of May 11, 2007. (h) Funded as of June 4, 2007. (s) Funded as of July 23, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-28
LORD ABBETT LORD ABBETT LORD ABBETT AMERICA'S SMALL CAP INTERNATIONAL LEGG MASON VALUE FUND BLEND FUND CORE EQUITY FUND VALUE FUND SUB-ACCOUNT (AA) SUB-ACCOUNT (BB) SUB-ACCOUNT (CC) SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 3 43,557 3 7,681 ======= ========== ======= ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $40 $759,142 $43 $555,424 ======= ========== ======= ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $39 $708,481 $40 $527,672 Due from Hartford Life Insurance Company -- 2,753 -- 271 Receivable from fund shares sold 1 -- -- -- Other assets -- -- -- -- ------- ---------- ------- ---------- Total Assets 40 711,234 40 527,943 ------- ---------- ------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 1 -- -- -- Payable for fund shares purchased -- 2,753 -- 271 Other liabilities -- -- -- -- ------- ---------- ------- ---------- Total Liabilities 1 2,753 -- 271 ------- ---------- ------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $39 $708,481 $40 $527,672 ======= ========== ======= ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 3 52,046 4 33,785 Unit Fair Values # $11.44 $13.61 $10.26 $15.62 MARSHALL MASSACHUSETTS MID-CAP INVESTORS GROWTH MFS HIGH VALUE FUND STOCK FUND INCOME FUND SUB-ACCOUNT (DD) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ----------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 5,502 122,976 160,717 ========= ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $88,746 $1,401,978 $619,644 ========= ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $72,904 $1,885,223 $589,832 Due from Hartford Life Insurance Company -- 17,208 486 Receivable from fund shares sold 4 -- -- Other assets -- -- 1 --------- ------------ ---------- Total Assets 72,908 1,902,431 590,319 --------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 4 -- -- Payable for fund shares purchased -- 17,208 486 Other liabilities -- -- -- --------- ------------ ---------- Total Liabilities 4 17,208 486 --------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $72,904 $1,885,223 $589,833 ========= ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 7,591 162,691 40,891 Unit Fair Values # $9.60 $11.59 $14.42
(aa) Funded as of December 4, 2007. (bb) Formerly Lord Abbett Small-Cap Blend Fund. Change effective August 15, 2007. (cc) Funded as of November 14, 2007. (dd) Funded as of April 18, 2007. SA-29 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MFS INTERNATIONAL NEW MFS MID CAP MFS STRATEGIC DISCOVERY FUND GROWTH FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (EE) - --------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 7,821 62,133 2,191 ========== ========== ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $212,860 $517,730 $33,499 ========== ========== ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $190,273 $638,110 $27,523 Due from Hartford Life Insurance Company 254 192 -- Receivable from fund shares sold -- -- 7 Other assets -- -- -- ---------- ---------- --------- Total Assets 190,527 638,302 27,530 ---------- ---------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 7 Payable for fund shares purchased 254 192 -- Other liabilities -- -- -- ---------- ---------- --------- Total Liabilities 254 192 7 ---------- ---------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $190,273 $638,110 $27,523 ========== ========== ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 9,885 61,346 2,533 Unit Fair Values # $19.25 $10.40 $10.87
(ee) Funded as of October 1, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-30
MFS TOTAL MFS MFS MFS RESEARCH RETURN FUND UTILITIES FUND VALUE FUND BOND FUND SUB-ACCOUNT (FF) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (GG) - ---------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 110 157,600 69,628 1,344 ======= ============ ============ ========= Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,806 $2,404,147 $1,643,212 $13,198 ======= ============ ============ ========= Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $1,682 $3,049,352 $1,847,216 $13,277 Due from Hartford Life Insurance Company -- 1,288 1,283 -- Receivable from fund shares sold 10 -- -- 5 Other assets -- -- -- -- ------- ------------ ------------ --------- Total Assets 1,692 3,050,640 1,848,499 13,282 ------- ------------ ------------ --------- LIABILITIES: Due to Hartford Life Insurance Company 10 -- -- 5 Payable for fund shares purchased -- 1,288 1,283 -- Other liabilities -- -- -- -- ------- ------------ ------------ --------- Total Liabilities 10 1,288 1,283 5 ------- ------------ ------------ --------- NET ASSETS: For Variable Annuity Contract Liabilities $1,682 $3,049,352 $1,847,216 $13,277 ======= ============ ============ ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 149 160,706 110,740 1,239 Unit Fair Values # $11.32 $18.97 $16.68 $10.72 BLACKROCK BLACKROCK MFS CORE GLOBAL GLOBAL FINANCIAL EQUITY FUND ALLOCATION FUND SERVICES FUND SUB-ACCOUNT (HH)(II) SUB-ACCOUNT (K) SUB-ACCOUNT (N) - -------------------------- ---------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 51,511 79,720 10,967 ============ ============ ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $1,039,050 $1,591,664 $170,212 ============ ============ ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $967,366 $1,576,864 $133,466 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 38 262 14 Other assets -- -- -- ------------ ------------ ---------- Total Assets 967,404 1,577,126 133,480 ------------ ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 38 262 14 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------ ------------ ---------- Total Liabilities 38 262 14 ------------ ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $967,366 $1,576,864 $133,466 ============ ============ ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 96,381 125,380 12,488 Unit Fair Values # $10.04 $12.58 $10.69
(k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (ff) Funded as of August 20, 2007. (gg) Funded as of December 18, 2007. (hh) Effective June 22, 2007, MFS Capital Opportunities Fund merged with the MFS Core Equity Fund. (ii) From inception June 7, 2007 to December 31, 2007. SA-31 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
BLACKROCK BLACKROCK BLACKROCK LARGE CAP VALUE SMALL CAP CORE FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (L) SUB-ACCOUNT (F) SUB-ACCOUNT (JJ) - ------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 20,349 228 5,383 ========== ======= ========= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $283,383 $4,792 $81,098 ========== ======= ========= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $268,811 $4,610 $76,003 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 27 2 -- Other assets -- -- -- ---------- ------- --------- Total Assets 268,838 4,612 76,003 ---------- ------- --------- LIABILITIES: Due to Hartford Life Insurance Company 27 2 -- Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- ------- --------- Total Liabilities 27 2 -- ---------- ------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $268,811 $4,610 $76,003 ========== ======= ========= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 24,501 427 6,430 Unit Fair Values # $10.97 $10.81 $11.82
(f) Funded as of October 31, 2007. (l) Funded as of July 2, 2007. (jj) Funded as of April 17, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-32
BLACKROCK MUNDER NEUBERGER BERMAN OAKMARK MID CAP VALUE MIDCAP CORE SOCIALLY INTERNATIONAL OPPORTUNITIES FUND GROWTH FUND RESPONSIVE FUND SMALL CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 1,485 10,248 2,842 136,230 ========= ========== ========= ============ Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $26,822 $268,883 $50,564 $2,466,763 ========= ========== ========= ============ Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $22,961 $306,325 $52,289 $2,073,425 Due from Hartford Life Insurance Company 333 7 -- 122 Receivable from fund shares sold -- -- 18 -- Other assets -- -- -- -- --------- ---------- --------- ------------ Total Assets 23,294 306,332 52,307 2,073,547 --------- ---------- --------- ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- 18 -- Payable for fund shares purchased 333 7 -- 122 Other liabilities -- -- -- -- --------- ---------- --------- ------------ Total Liabilities 333 7 18 122 --------- ---------- --------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $22,961 $306,325 $52,289 $2,073,425 ========= ========== ========= ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 1,979 22,506 3,996 76,081 Unit Fair Values # $11.61 $13.61 $13.08 $27.25 OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER INTERNATIONAL APPRECIATION FUND GLOBAL FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (KK) - -------------------------- ------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 37,725 51,502 278 ============ ============ ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $1,581,179 $3,244,376 $8,669 ============ ============ ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $1,939,081 $3,736,969 $8,632 Due from Hartford Life Insurance Company 972 3,893 -- Receivable from fund shares sold -- -- 7 Other assets -- -- -- ------------ ------------ ------- Total Assets 1,940,053 3,740,862 8,639 ------------ ------------ ------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 7 Payable for fund shares purchased 972 3,893 -- Other liabilities -- 1 -- ------------ ------------ ------- Total Liabilities 972 3,894 7 ------------ ------------ ------- NET ASSETS: For Variable Annuity Contract Liabilities $1,939,081 $3,736,968 $8,632 ============ ============ ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 145,796 183,342 588 Unit Fair Values # $13.30 $20.38 $14.68
(kk) Funded as of June 13, 2007. SA-33 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
OPPENHEIMER OPPENHEIMER MAIN STREET DEVELOPING OPPENHEIMER SMALL CAP FUND MARKETS FUND EQUITY FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT (LL) - ------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 16,424 30,495 161 ========== ============ ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $370,276 $1,264,449 $1,800 ========== ============ ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $323,881 $1,483,574 $1,659 Due from Hartford Life Insurance Company -- 1,859 -- Receivable from fund shares sold 327 -- 6 Other assets -- -- -- ---------- ------------ ------- Total Assets 324,208 1,485,433 1,665 ---------- ------------ ------- LIABILITIES: Due to Hartford Life Insurance Company 327 -- 6 Payable for fund shares purchased -- 1,859 -- Other liabilities -- -- -- ---------- ------------ ------- Total Liabilities 327 1,859 6 ---------- ------------ ------- NET ASSETS: For Variable Annuity Contract Liabilities $323,881 $1,483,574 $1,659 ========== ============ ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 31,804 28,963 132 Unit Fair Values # $10.18 $51.22 $12.57
(g) Funded as of February 12, 2007. (ll) Funded as of November 19, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-34
OPPENHEIMER OPPENHEIMER OPPENHEIMER OPPENHEIMER INTERNATIONAL SMALL- & MID- CAP MAIN STREET GOLD & SPECIAL BOND FUND VALUE FUND OPPORTUNITY FUND METALS FUND SUB-ACCOUNT SUB-ACCOUNT (MM) SUB-ACCOUNT SUB-ACCOUNT (N) - ----------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 46,568 15,122 9,674 3,631 ========== ========== ========== ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $297,135 $609,733 $146,853 $117,580 ========== ========== ========== ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $296,175 $555,434 $132,631 $129,149 Due from Hartford Life Insurance Company 142 57 -- -- Receivable from fund shares sold -- -- 411 24 Other assets -- -- -- -- ---------- ---------- ---------- ---------- Total Assets 296,317 555,491 133,042 129,173 ---------- ---------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 411 24 Payable for fund shares purchased 142 57 -- -- Other liabilities 32 -- -- -- ---------- ---------- ---------- ---------- Total Liabilities 174 57 411 24 ---------- ---------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $296,143 $555,434 $132,631 $129,149 ========== ========== ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 24,830 50,714 12,410 7,193 Unit Fair Values # $11.93 $10.95 $10.69 $17.95 PIMCO PIMCO EMERGING MARKETS PIMCO TOTAL RETURN BOND FUND REAL RETURN FUND SUB-ACCOUNT (G) SUB-ACCOUNT (A) SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 20,291 16,434 131,777 ========== ========== ============ Cost: Class ADV -- -- -- Class INV -- -- -- Other class $213,185 $181,206 $1,429,822 ========== ========== ============ Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $216,910 $175,518 $1,444,279 Due from Hartford Life Insurance Company -- -- 640 Receivable from fund shares sold 41 27 -- Other assets 6 12 206 ---------- ---------- ------------ Total Assets 216,957 175,557 1,445,125 ---------- ---------- ------------ LIABILITIES: Due to Hartford Life Insurance Company 41 27 -- Payable for fund shares purchased -- -- 640 Other liabilities -- -- -- ---------- ---------- ------------ Total Liabilities 41 27 640 ---------- ---------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $216,916 $175,530 $1,444,485 ========== ========== ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 19,699 16,836 120,634 Unit Fair Values # $11.01 $10.43 $11.97
(a) Funded as of March 21, 2007. (g) Funded as of February 12, 2007. (n) Funded as of January 12, 2007. (mm) Funded as of January 3, 2007. SA-35 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
PIONEER PIONEER PIONEER SMALL CAP STRATEGIC HIGH YIELD FUND VALUE FUND INCOME FUND SUB-ACCOUNT (K) SUB-ACCOUNT (NN) SUB-ACCOUNT (OO) - ------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 9,935 3,269 30,557 ========== ========= ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $109,227 $98,595 $320,337 ========== ========= ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $104,015 $77,242 $319,325 Due from Hartford Life Insurance Company 72 -- 21,714 Receivable from fund shares sold -- 41 -- Other assets -- -- 6 ---------- --------- ---------- Total Assets 104,087 77,283 341,045 ---------- --------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 41 -- Payable for fund shares purchased 72 -- 21,714 Other liabilities 1 -- -- ---------- --------- ---------- Total Liabilities 73 41 21,714 ---------- --------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $104,014 $77,242 $319,331 ========== ========= ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 9,482 8,346 30,436 Unit Fair Values # $10.97 $9.25 $10.49
(k) Funded as of February 1, 2007. (nn) From inception January 5, 2007 to December 31, 2007. (oo) Funded as of February 16, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-36
PIONEER PUTNAM MID CAP INTERNATIONAL PUTNAM PUTNAM VALUE FUND EQUITY FUND INVESTORS FUND VISTA FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (PP) SUB-ACCOUNT (B) - ------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 362 96,566 2 22 ======= ============ ====== ======= Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $8,723 $2,453,591 $34 $260 ======= ============ ====== ======= Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $8,041 $2,657,496 $33 $253 Due from Hartford Life Insurance Company -- 139 -- -- Receivable from fund shares sold 19 -- -- 1 Other assets -- -- -- -- ------- ------------ ------ ------- Total Assets 8,060 2,657,635 33 254 ------- ------------ ------ ------- LIABILITIES: Due to Hartford Life Insurance Company 19 -- -- 1 Payable for fund shares purchased -- 139 -- -- Other liabilities -- -- -- -- ------- ------------ ------ ------- Total Liabilities 19 139 -- 1 ------- ------------ ------ ------- NET ASSETS: For Variable Annuity Contract Liabilities $8,041 $2,657,496 $33 $253 ======= ============ ====== ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 696 135,686 4 23 Unit Fair Values # $11.55 $19.59 $9.09 $10.94 LEGG MASON PUTNAM PARTNERS SMALL CAP ROYCE VALUE SMALL CAP GROWTH FUND PLUS FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - ----------------------------- ------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- 6,864 -- Other class 116 36,114 279 ======= ========== ======= Cost: Class ADV -- -- -- Class INV -- $83,580 -- Other class $2,617 515,471 $4,912 ======= ========== ======= Market Value: Class ADV -- -- -- Class INV -- $96,162 -- Other class $2,274 497,365 $4,670 Due from Hartford Life Insurance Company -- 340 -- Receivable from fund shares sold 4 -- 1 Other assets -- -- -- ------- ---------- ------- Total Assets 2,278 593,867 4,671 ------- ---------- ------- LIABILITIES: Due to Hartford Life Insurance Company 4 -- 1 Payable for fund shares purchased -- 340 -- Other liabilities -- -- -- ------- ---------- ------- Total Liabilities 4 340 1 ------- ---------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $2,274 $593,527 $4,670 ======= ========== ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 199 44,326 382 Unit Fair Values # $11.42 $13.39 $12.23
(b) Funded as of April 12, 2007. (f) Funded as of October 31, 2007. (pp) From inception April 26, 2007 to December 31, 2007. SA-37 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
DWS DREMAN SSGA HIGH RETURN S&P 500 DWS GLOBAL EQUITY FUND INDEX FUND THEMATIC FUND SUB-ACCOUNT (N) SUB-ACCOUNT SUB-ACCOUNT (QQ) - ------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 3,617 32,751 4,622 ========== ========== ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $182,030 $712,252 $153,843 ========== ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $168,256 $791,581 $132,737 Due from Hartford Life Insurance Company 25,493 3,640 -- Receivable from fund shares sold -- -- 99 Other assets -- -- -- ---------- ---------- ---------- Total Assets 193,749 795,221 132,836 ---------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 99 Payable for fund shares purchased 25,493 3,640 -- Other liabilities -- -- -- ---------- ---------- ---------- Total Liabilities 25,493 3,640 99 ---------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $168,256 $791,581 $132,737 ========== ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 15,224 64,414 12,403 Unit Fair Values # $11.05 $12.29 $10.70
(n) Funded as of January 12, 2007. (qq) From inception January 5, 2007 to December 31, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-38
LEGG MASON PARTNERS BLACKROCK THORNBURG AGGRESSIVE SMALL/MID-CAP INTERNATIONAL THORNBURG GROWTH FUND GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (RR) SUB-ACCOUNT (B) SUB-ACCOUNT (SS) SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- -- Class INV -- -- -- -- Other class 704 144 13,144 4,409 ========= ======= ========== ========== Cost: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $84,878 $2,314 $451,575 $184,964 ========= ======= ========== ========== Market Value: Class ADV -- -- -- -- Class INV -- -- -- -- Other class $82,447 $2,050 $437,431 $164,530 Due from Hartford Life Insurance Company 8,339 -- 5,493 1,091 Receivable from fund shares sold -- 2 -- -- Other assets -- -- -- -- --------- ------- ---------- ---------- Total Assets 90,786 2,052 442,924 165,621 --------- ------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 2 -- -- Payable for fund shares purchased 8,339 -- 5,493 1,091 Other liabilities -- -- -- -- --------- ------- ---------- ---------- Total Liabilities 8,339 2 5,493 1,091 --------- ------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $82,447 $2,050 $437,431 $164,530 ========= ======= ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 8,432 159 30,072 15,497 Unit Fair Values # $9.78 $12.91 $14.55 $10.62 VICTORY VICTORY THORNBURG DIVERSIFIED SPECIAL CORE GROWTH FUND STOCK FUND VALUE FUND SUB-ACCOUNT (K) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 22,826 5,645 26,782 ========== ========== ========== Cost: Class ADV -- -- -- Class INV -- -- -- Other class $449,732 $103,663 $494,619 ========== ========== ========== Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $454,700 $100,302 $489,835 Due from Hartford Life Insurance Company 9,126 57 6,659 Receivable from fund shares sold -- -- -- Other assets -- -- -- ---------- ---------- ---------- Total Assets 463,826 100,359 496,494 ---------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 9,126 57 6,659 Other liabilities -- -- -- ---------- ---------- ---------- Total Liabilities 9,126 57 6,659 ---------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $454,700 $100,302 $489,835 ========== ========== ========== DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 37,378 6,902 34,884 Unit Fair Values # $12.17 $14.53 $14.04
(b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (rr) Funded as of July 11, 2007. (ss) Funded as of April 3, 2007. SA-39 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
VAN KAMPEN SMALL CAP VAN KAMPEN GROWTH FUND COMSTOCK FUND SUB-ACCOUNT (RR) SUB-ACCOUNT - ----------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- Class INV -- -- Other class 5,311 203,714 ========= ============ Cost: Class ADV -- -- Class INV -- -- Other class $64,044 $3,985,807 ========= ============ Market Value: Class ADV -- -- Class INV -- -- Other class $62,937 $3,560,923 Due from Hartford Life Insurance Company -- 105 Receivable from fund shares sold 3 -- Other assets -- -- --------- ------------ Total Assets 62,940 3,561,028 --------- ------------ LIABILITIES: Due to Hartford Life Insurance Company 3 -- Payable for fund shares purchased -- 105 Other liabilities -- -- --------- ------------ Total Liabilities 3 105 --------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $62,937 $3,560,923 ========= ============ DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 5,124 220,381 Unit Fair Values # $12.28 $16.16
(rr) Funded as of July 11, 2007. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-40
VAN KAMPEN VAN KAMPEN VAN KAMPEN EQUITY AND GROWTH AND MID CAP INCOME FUND INCOME FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (TT) SUB-ACCOUNT (UU) - --------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 2,073,720 5,273 287 ============= ========== ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $17,755,372 $119,358 $8,819 ============= ========== ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $18,331,686 $112,059 $8,253 Due from Hartford Life Insurance Company 7,970 -- -- Receivable from fund shares sold -- 42 9 Other assets -- -- -- ------------- ---------- ------- Total Assets 18,339,656 112,101 8,262 ------------- ---------- ------- LIABILITIES: Due to Hartford Life Insurance Company -- 42 9 Payable for fund shares purchased 7,970 -- -- Other liabilities -- -- -- ------------- ---------- ------- Total Liabilities 7,970 42 9 ------------- ---------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $18,331,686 $112,059 $8,253 ============= ========== ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 1,323,884 9,960 624 Unit Fair Values # $13.85 $11.25 $13.21 VAN KAMPEN SELIGMAN LEGG MASON REAL ESTATE COMMUNICATIONS AND PARTNERS SMALL CAP SECURITIES FUND INFORMATION FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (T) - ----------------------------- -------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class ADV -- -- -- Class INV -- -- -- Other class 3,936 148 54 ========== ======= ======= Cost: Class ADV -- -- -- Class INV -- -- -- Other class $111,281 $5,537 $1,245 ========== ======= ======= Market Value: Class ADV -- -- -- Class INV -- -- -- Other class $74,589 $5,643 $1,049 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 7 -- 2 Other assets -- -- -- ---------- ------- ------- Total Assets 74,596 5,643 1,051 ---------- ------- ------- LIABILITIES: Due to Hartford Life Insurance Company 7 -- 2 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- ------- ------- Total Liabilities 7 -- 2 ---------- ------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $74,589 $5,643 $1,049 ========== ======= ======= DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD: Group Sub-Accounts: Units owned by Participants 7,418 412 99 Unit Fair Values # $10.06 $13.70 $10.63
(a) Funded as of March 21, 2007. (t) Funded as of July 3, 2007. (tt) Funded as of April 9, 2007. (uu) Funded as of June 18, 2007. SA-41 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN CENTURY AMERICAN CENTURY EQUITY AMERICAN CENTURY SMALL CAP INCOME FUND ULTRA(R) FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $166,731 $ -- $145 ----------- -------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (40,121) (116) (134) ----------- -------- -------- Net investment income (loss) 126,610 (116) 11 ----------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 9,884 (26) 22 Net realized gain on distributions 571,141 3,293 3,660 Net unrealized appreciation (depreciation) of investments during the year (628,032) (1,218) (4,526) ----------- -------- -------- Net gain (loss) on investments (47,007) 2,049 (844) ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $79,603 $1,933 $(833) =========== ======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-42
AMERICAN CENTURY AMERICAN CENTURY AMERICAN CENTURY LARGE COMPANY AMERICAN CENTURY INFLATION-ADJUSTED EQUITY VALUE FUND VISTA(SM) FUND BOND FUND GROWTH FUND SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT (B) SUB-ACCOUNT (C) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $3 $ -- $149 $ -- ----- --------- ----- ---- EXPENSE: Mortality and Expense Risk and Administrative charges (2) (349) (52) -- ----- --------- ----- ---- Net investment income (loss) 1 (349) 97 -- ----- --------- ----- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1) 676 -- -- Net realized gain on distributions 11 5,666 -- 3 Net unrealized appreciation (depreciation) of investments during the year (38) 6,397 540 (3) ----- --------- ----- ---- Net gain (loss) on investments (28) 12,739 540 -- ----- --------- ----- ---- Net increase (decrease) in net assets resulting from operations $(27) $12,390 $637 $ -- ===== ========= ===== ==== AIM BASIC AIM EUROPEAN AIM INTERNATIONAL VALUE FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (D) - ----------------------------- ---------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,698 $2,017 $282 ----------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (9,348) (265) (143) ----------- --------- -------- Net investment income (loss) (7,650) 1,752 139 ----------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 6,959 27 11 Net realized gain on distributions 375,276 11,770 2,970 Net unrealized appreciation (depreciation) of investments during the year (350,546) (12,798) (5,092) ----------- --------- -------- Net gain (loss) on investments 31,689 (1,001) (2,111) ----------- --------- -------- Net increase (decrease) in net assets resulting from operations $24,039 $751 $(1,972) =========== ========= ========
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (c) Funded as of November 28, 2007. (d) Funded as of April 10, 2007. SA-43 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AIM MID CAP AIM SMALL CAP AIM REAL CORE EQUITY FUND GROWTH FUND ESTATE FUND SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $866 $ -- $16,702 --------- --------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (114) (3,309) (5,240) --------- --------- ----------- Net investment income (loss) 752 (3,309) 11,462 --------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 2,066 (4,804) Net realized gain on distributions 11,356 52,643 183,833 Net unrealized appreciation (depreciation) of investments during the year (12,105) (8,824) (361,758) --------- --------- ----------- Net gain (loss) on investments (749) 45,885 (182,729) --------- --------- ----------- Net increase (decrease) in net assets resulting from operations $3 $42,576 $(171,267) ========= ========= ===========
(e) Funded as of May 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-44
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN AIM SMALL CAP DOMINI SOCIAL BALANCED GROWTH AND EQUITY FUND EQUITY FUND SHARES FUND INCOME FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $4 $3,535 $1 ---- ------ --------- ---- EXPENSE: Mortality and Expense Risk and Administrative charges -- (25) (1,190) -- ---- ------ --------- ---- Net investment income (loss) -- (21) 2,345 1 ---- ------ --------- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 78 693 -- Net realized gain on distributions 2 179 12,455 8 Net unrealized appreciation (depreciation) of investments during the year (2) (285) (13,335) (9) ---- ------ --------- ---- Net gain (loss) on investments -- (28) (187) (1) ---- ------ --------- ---- Net increase (decrease) in net assets resulting from operations $ -- $(49) $2,158 $ -- ==== ====== ========= ==== ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN INTERNATIONAL INTERNATIONAL GLOBAL GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- INVESTMENT INCOME: Dividends $996 $25,954 $1,166 -------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (613) (6,410) (629) -------- --------- -------- Net investment income (loss) 383 19,544 537 -------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (19) 21,161 2,993 Net realized gain on distributions 7,190 77,935 8,003 Net unrealized appreciation (depreciation) of investments during the year (1,870) (98,668) (8,610) -------- --------- -------- Net gain (loss) on investments 5,301 428 2,386 -------- --------- -------- Net increase (decrease) in net assets resulting from operations $5,684 $19,972 $2,923 ======== ========= ========
(c) Funded as of November 28, 2007. (f) Funded as of October 31, 2007. (g) Funded as of February 12, 2007. SA-45 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN CAPITAL INCOME AMCAP FUND BALANCED FUND BUILDER FUND SUB-ACCOUNT (D) SUB-ACCOUNT (E) SUB-ACCOUNT (D) - ----------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $171 $267 $18,526 ------- -------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (185) (67) (8,647) ------- -------- ----------- Net investment income (loss) (14) 200 9,879 ------- -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 28 2 (1,838) Net realized gain on distributions 1,268 978 137,362 Net unrealized appreciation (depreciation) of investments during the year (987) (1,821) (130,564) ------- -------- ----------- Net gain (loss) on investments 309 (841) 4,960 ------- -------- ----------- Net increase (decrease) in net assets resulting from operations $295 $(641) $14,839 ======= ======== ===========
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-46
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS EUROPACIFIC FUNDAMENTAL AMERICAN FUNDS THE BOND GROWTH FUND INVESTORS FUND NEW PERSPECTIVE FUND FUND OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT (I) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $30,911 $4,486 $1,527 $7,844 ---------- --------- -------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (7,298) (1,415) (258) (1,611) ---------- --------- -------- -------- Net investment income (loss) 23,613 3,071 1,269 6,233 ---------- --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (3,326) (3,474) (15) 978 Net realized gain on distributions 131,524 16,132 6,137 -- Net unrealized appreciation (depreciation) of investments during the year (20,583) (12,985) (6,459) (3,662) ---------- --------- -------- -------- Net gain (loss) on investments 107,615 (327) (337) (2,684) ---------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $131,228 $2,744 $932 $3,549 ========== ========= ======== ======== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE GROWTH FUND OF THE INCOME THE INVESTMENT AMERICA FUND FUND OF AMERICA COMPANY OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (J) SUB-ACCOUNT (D) - ----------------------------- --------------------------------------------------------------------- INVESTMENT INCOME: Dividends $49,865 $7,794 $1,392 ----------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (26,586) (1,884) (751) ----------- --------- --------- Net investment income (loss) 23,279 5,910 641 ----------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 86,006 1,507 172 Net realized gain on distributions 384,602 43,033 13,762 Net unrealized appreciation (depreciation) of investments during the year (215,909) (56,585) (22,304) ----------- --------- --------- Net gain (loss) on investments 254,699 (12,045) (8,370) ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $277,978 $(6,135) $(7,729) =========== ========= =========
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. (i) Funded as of February 27, 2007. (j) Funded as of February 6, 2007. SA-47 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE NEW WASHINGTON AMERICAN ECONOMY FUND MUTUAL INVESTORS MUTUAL FUND SUB-ACCOUNT (I) SUB-ACCOUNT SUB-ACCOUNT (D) - --------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $2,248 $301 $47 --------- -------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (898) (209) (21) --------- -------- ------ Net investment income (loss) 1,350 92 26 --------- -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (3,946) (63) (6) Net realized gain on distributions 33,850 1,643 315 Net unrealized appreciation (depreciation) of investments during the year (35,775) (2,043) (504) --------- -------- ------ Net gain (loss) on investments (5,871) (463) (195) --------- -------- ------ Net increase (decrease) in net assets resulting from operations $(4,521) $(371) $(169) ========= ======== ======
(d) Funded as of April 10, 2007. (i) Funded as of February 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-48
AMERICAN FUNDS CAPITAL AMERICAN FUNDS ARIEL WORLD GROWTH & SMALLCAP APPRECIATION INCOME FUND WORLD FUND FUND ARIEL FUND SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $57,803 $2,569 $187 $49 ---------- --------- -------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (17,849) (773) (236) (164) ---------- --------- -------- -------- Net investment income (loss) 39,954 1,796 (49) (115) ---------- --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 5,239 (2,636) (308) (653) Net realized gain on distributions 299,091 16,975 3,161 1,893 Net unrealized appreciation (depreciation) of investments during the year (30,980) (17,446) (4,450) (2,093) ---------- --------- -------- -------- Net gain (loss) on investments 273,350 (3,107) (1,597) (853) ---------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $313,304 $(1,311) $(1,646) $(968) ========== ========= ======== ======== ARTISAN MID CAP LIFEPATH LIFEPATH VALUE FUND 2010 PORTFOLIO 2020 PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------- INVESTMENT INCOME: Dividends $3,337 $15,775 $33,113 --------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (5,431) (2,206) (9,100) --------- --------- --------- Net investment income (loss) (2,094) 13,569 24,013 --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (688) 369 855 Net realized gain on distributions 96,562 29,164 71,739 Net unrealized appreciation (depreciation) of investments during the year (97,015) (41,070) (90,095) --------- --------- --------- Net gain (loss) on investments (1,141) (11,537) (17,501) --------- --------- --------- Net increase (decrease) in net assets resulting from operations $(3,235) $2,032 $6,512 ========= ========= =========
(h) Funded as of June 4, 2007. SA-49 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
LIFEPATH LIFEPATH LIFEPATH 2030 PORTFOLIO 2040 PORTFOLIO RETIREMENT PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $27,550 $16,125 $2,806 ----------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (7,443) (4,756) (752) ----------- --------- -------- Net investment income (loss) 20,107 11,369 2,054 ----------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,521) 492 (88) Net realized gain on distributions 82,732 45,249 2,438 Net unrealized appreciation (depreciation) of investments during the year (113,696) (76,617) (2,646) ----------- --------- -------- Net gain (loss) on investments (32,485) (30,876) (296) ----------- --------- -------- Net increase (decrease) in net assets resulting from operations $(12,378) $(19,507) $1,758 =========== ========= ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-50
BLACKROCK CALVERT SOCIAL BARON SMALL GOVERNMENT INVESTMENT FUND CALVERT LARGE CAP FUND INCOME FUND EQUITY PORTFOLIO CAP GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $204 $ -- $ -- ------- ----- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (321) (53) (1,664) (649) ------- ----- --------- --------- Net investment income (loss) (321) 151 (1,664) (649) ------- ----- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,366 -- (8) 1,840 Net realized gain on distributions 3,178 -- 15,873 1,364 Net unrealized appreciation (depreciation) of investments during the year 1,042 243 5,028 10,369 ------- ----- --------- --------- Net gain (loss) on investments 5,586 243 20,893 13,573 ------- ----- --------- --------- Net increase (decrease) in net assets resulting from operations $5,265 $394 $19,229 $12,924 ======= ===== ========= ========= CALVERT SOCIAL COLUMBIA MARSICO INVESTMENT INTERNATIONAL COLUMBIA MARSICO BOND FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (K) SUB-ACCOUNT (D) SUB-ACCOUNT (L) - ----------------------------- --------------------------------------------------------------- INVESTMENT INCOME: Dividends $511 $167 $34 ------ ------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (59) (85) (152) ------ ------- ------ Net investment income (loss) 452 82 (118) ------ ------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 4 (2) 34 Net realized gain on distributions 438 1,364 -- Net unrealized appreciation (depreciation) of investments during the year (124) 332 654 ------ ------- ------ Net gain (loss) on investments 318 1,694 688 ------ ------- ------ Net increase (decrease) in net assets resulting from operations $770 $1,776 $570 ====== ======= ======
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. (k) Funded as of February 1, 2007. (l) Funded as of July 2, 2007. SA-51 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DAVIS CRM MID CAP DAVIS NEW YORK VALUE FUND FINANCIAL FUND VENTURE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT - --------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,003 $1 $20,492 --------- ----- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (795) (2) (8,079) --------- ----- --------- Net investment income (loss) 208 (1) 12,413 --------- ----- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,004 -- 6,574 Net realized gain on distributions 17,616 23 -- Net unrealized appreciation (depreciation) of investments during the year (3,460) (49) 7,199 --------- ----- --------- Net gain (loss) on investments 16,160 (26) 13,773 --------- ----- --------- Net increase (decrease) in net assets resulting from operations $16,368 $(27) $26,186 ========= ===== =========
(a) Funded as of March 21, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-52
DREYFUS LIFETIME DAVIS GROWTH AND DREYFUS LIFETIME DREYFUS LIFETIME OPPORTUNITY FUND INCOME PORTFOLIO GROWTH PORTFOLIO INCOME PORTFOLIO SUB-ACCOUNT (M) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $498 $11,774 $3,965 $7,254 --------- --------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (171) (3,577) (1,770) (1,434) --------- --------- --------- -------- Net investment income (loss) 327 8,197 2,195 5,820 --------- --------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (4,626) 464 3,760 202 Net realized gain on distributions 4,930 28,542 22,929 -- Net unrealized appreciation (depreciation) of investments during the year (11,661) (20,213) (21,613) 1,934 --------- --------- --------- -------- Net gain (loss) on investments (11,357) 8,793 5,076 2,136 --------- --------- --------- -------- Net increase (decrease) in net assets resulting from operations $(11,030) $16,990 $7,271 $7,956 ========= ========= ========= ======== DREYFUS PREMIER DREYFUS MIDCAP DREYFUS SMALLCAP CORE BOND FUND INDEX FUND STOCK INDEX FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------- INVESTMENT INCOME: Dividends $50,763 $559 $101 --------- -------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (7,761) (465) (93) --------- -------- -------- Net investment income (loss) 43,002 94 8 --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (260) 4,362 549 Net realized gain on distributions 2,688 4,456 1,349 Net unrealized appreciation (depreciation) of investments during the year (17,663) (3,095) (2,104) --------- -------- -------- Net gain (loss) on investments (15,235) 5,723 (206) --------- -------- -------- Net increase (decrease) in net assets resulting from operations $27,767 $5,817 $(198) ========= ======== ========
(m) Funded as of July 6, 2007. SA-53 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DREYFUS PREMIER EATON VANCE EATON VANCE SMALL CAP LARGE-CAP DIVIDEND VALUE FUND VALUE FUND BUILDER FUND SUB-ACCOUNT (VV) SUB-ACCOUNT SUB-ACCOUNT (N) - -------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $851 $240 ----- ------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (1) (248) (88) ----- ------- -------- Net investment income (loss) (1) 603 152 ----- ------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (18) (1) 116 Net realized gain on distributions -- 1,706 3,034 Net unrealized appreciation (depreciation) of investments during the year 26 5,536 (1,245) ----- ------- -------- Net gain (loss) on investments 8 7,241 1,905 ----- ------- -------- Net increase (decrease) in net assets resulting from operations $7 $7,844 $2,057 ===== ======= ========
(n) Funded as of January 12, 2007. (vv) Sub-Account not funded at December 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-54
ALGER CAPITAL EATON VANCE EATON VANCE APPRECIATION ALGER MIDCAP WORLDWIDE HEALTH INCOME INSTITUTIONAL GROWTH SCIENCES FUND FUND OF BOSTON PORTFOLIO INSTITUTIONAL FUND SUB-ACCOUNT (N) SUB-ACCOUNT (A) SUB-ACCOUNT (K) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $3,891 $ -- $ -- ------ -------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (6) (411) (420) (193) ------ -------- --------- --------- Net investment income (loss) (6) 3,480 (420) (193) ------ -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- (2) (88) 8 Net realized gain on distributions 200 -- -- 38,361 Net unrealized appreciation (depreciation) of investments during the year (185) (2,020) 25,040 (25,662) ------ -------- --------- --------- Net gain (loss) on investments 15 (2,022) 24,952 12,707 ------ -------- --------- --------- Net increase (decrease) in net assets resulting from operations $9 $1,458 $24,532 $12,514 ====== ======== ========= ========= FEDERATED FIDELITY FIDELITY FUND FOR U.S. ADVISOR EQUITY ADVISOR VALUE GOVERNMENT GROWTH FUND STRATEGIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (O) - ----------------------------- -------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $72 ------ ---------- ---- EXPENSE: Mortality and Expense Risk and Administrative charges (33) (2,575) (9) ------ ---------- ---- Net investment income (loss) (33) (2,575) 63 ------ ---------- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 5 (830) -- Net realized gain on distributions -- 115,311 -- Net unrealized appreciation (depreciation) of investments during the year (240) (93,765) 9 ------ ---------- ---- Net gain (loss) on investments (235) 20,716 9 ------ ---------- ---- Net increase (decrease) in net assets resulting from operations $(268) $18,141 $72 ====== ========== ====
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (o) Funded as of October 25, 2007. SA-55 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FEDERATED FEDERATED MID CAP GROWTH FEDERATED SHORT-TERM STRATEGIES FUND KAUFMAN FUND INCOME FUND SUB-ACCOUNT (P) SUB-ACCOUNT (G) SUB-ACCOUNT - -------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $5,948 ---- --------- ------- EXPENSE: Mortality and Expense Risk and Administrative charges -- (690) (478) ---- --------- ------- Net investment income (loss) -- (690) 5,470 ---- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 83 243 Net realized gain on distributions 5 21,313 -- Net unrealized appreciation (depreciation) of investments during the year (5) (7,420) (556) ---- --------- ------- Net gain (loss) on investments -- 13,976 (313) ---- --------- ------- Net increase (decrease) in net assets resulting from operations $ -- $13,286 $5,157 ==== ========= =======
(g) Funded as of February 12, 2007. (p) Funded as of October 29, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-56
TEMPLETON FRANKLIN DEVELOPING FRANKLIN TEMPLETON SMALL CAP MARKETS TRUST HIGH INCOME FUND GLOBAL BOND FUND VALUE FUND SUB-ACCOUNT (A) SUB-ACCOUNT (Q) SUB-ACCOUNT (M) SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $8,336 $294 $1,735 $3,346 --------- ------ ------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,056) (37) (185) (1,906) --------- ------ ------- --------- Net investment income (loss) 7,280 257 1,550 1,440 --------- ------ ------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (633) -- 951 (2,240) Net realized gain on distributions 58,492 -- 49 15,287 Net unrealized appreciation (depreciation) of investments during the year (38,630) (244) (611) (45,552) --------- ------ ------- --------- Net gain (loss) on investments 19,229 (244) 389 (32,505) --------- ------ ------- --------- Net increase (decrease) in net assets resulting from operations $26,509 $13 $1,939 $(31,065) ========= ====== ======= ========= MUTUAL TEMPLETON FRANKLIN DISCOVERY FUND GROWTH FUND INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------- INVESTMENT INCOME: Dividends $15,227 $11,287 $18,255 --------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (2,679) (3,365) (3,397) --------- --------- --------- Net investment income (loss) 12,548 7,922 14,858 --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (2,773) (6,198) (1,222) Net realized gain on distributions 16,881 54,966 23,260 Net unrealized appreciation (depreciation) of investments during the year (26,904) (74,342) (45,575) --------- --------- --------- Net gain (loss) on investments (12,796) (25,574) (23,537) --------- --------- --------- Net increase (decrease) in net assets resulting from operations $(248) $(17,652) $(8,679) ========= ========= =========
(a) Funded as of March 21, 2007. (m) Funded as of July 6, 2007. (q) Funded as of July 19, 2007. SA-57 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FRANKLIN FRANKLIN CAPITAL BALANCE SHEET MUTUAL GROWTH FUND INVESTMENT FUND BEACON FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1 $47,231 $13,689 ---- ----------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges -- (19,705) (1,636) ---- ----------- --------- Net investment income (loss) 1 27,526 12,053 ---- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 8,806 (2,549) Net realized gain on distributions 3 400,586 24,138 Net unrealized appreciation (depreciation) of investments during the year (5) (623,162) (52,464) ---- ----------- --------- Net gain (loss) on investments (2) (213,770) (30,875) ---- ----------- --------- Net increase (decrease) in net assets resulting from operations $(1) $(186,244) $(18,822) ==== =========== =========
(r) Funded as of June 1, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-58
FRANKLIN FRANKLIN FRANKLIN FRANKLIN MUTUAL SMALL-MID CAP TEMPLETON TEMPLETON GROWTH SHARES FUND GROWTH FUND CONSERVATIVE TARGET TARGET FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $83,510 $ -- $230 $2,487 ----------- ----------- ------ -------- EXPENSE: Mortality and Expense Risk and Administrative charges (21,585) (13,239) (56) (508) ----------- ----------- ------ -------- Net investment income (loss) 61,925 (13,239) 174 1,979 ----------- ----------- ------ -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,385 8,341 (910) (2,962) Net realized gain on distributions 107,543 262,623 100 2,358 Net unrealized appreciation (depreciation) of investments during the year (135,363) (109,764) (80) (767) ----------- ----------- ------ -------- Net gain (loss) on investments (25,435) 161,200 (890) (1,371) ----------- ----------- ------ -------- Net increase (decrease) in net assets resulting from operations $36,490 $147,961 $(716) $608 =========== =========== ====== ======== FRANKLIN TEMPLETON MODERATE TEMPLETON GE PREMIER TARGET FUND FOREIGN FUND GROWTH EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------- ----------------------------------------------------------------------- INVESTMENT INCOME: Dividends $8,257 $58,989 $ -- -------- ----------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (797) (25,119) (32) -------- ----------- ------ Net investment income (loss) 7,460 33,870 (32) -------- ----------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,707) 155,115 3 Net realized gain on distributions 6,905 800,936 799 Net unrealized appreciation (depreciation) of investments during the year (5,678) (322,341) (714) -------- ----------- ------ Net gain (loss) on investments (480) 633,710 88 -------- ----------- ------ Net increase (decrease) in net assets resulting from operations $6,980 $667,580 $56 ======== =========== ======
(h) Funded as of June 4, 2007. SA-59 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS CAPITAL CORE FIXED GOVERNMENT GROWTH FUND INCOME FUND INCOME FUND SUB-ACCOUNT (D) SUB-ACCOUNT (S) SUB-ACCOUNT (T) - -------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $25 $205 ----- ---- ----- EXPENSE: Mortality and Expense Risk and Administrative charges (19) (5) (37) ----- ---- ----- Net investment income (loss) (19) 20 168 ----- ---- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1) -- -- Net realized gain on distributions 23 -- -- Net unrealized appreciation (depreciation) of investments during the year 108 24 402 ----- ---- ----- Net gain (loss) on investments 130 24 402 ----- ---- ----- Net increase (decrease) in net assets resulting from operations $111 $44 $570 ===== ==== =====
(d) Funded as of April 10, 2007. (s) Funded as of July 23, 2007. (t) Funded as of July 3, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-60
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GROWTH & GROWTH MID CAP SMALL CAP INCOME FUND OPPORTUNITIES FUND VALUE FUND VALUE FUND SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT (D) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $4,883 $ -- $15,796 $ -- ----------- ------ ----------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (2,912) (36) (9,728) (445) ----------- ------ ----------- --------- Net investment income (loss) 1,971 (36) 6,068 (445) ----------- ------ ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (3,307) 34 (17,303) (5,565) Net realized gain on distributions 82,995 569 346,855 37,518 Net unrealized appreciation (depreciation) of investments during the year (104,307) (214) (394,176) (47,352) ----------- ------ ----------- --------- Net gain (loss) on investments (24,619) 389 (64,624) (15,399) ----------- ------ ----------- --------- Net increase (decrease) in net assets resulting from operations $(22,648) $353 $(58,556) $(15,844) =========== ====== =========== ========= JOHN HANCOCK GOLDMAN SACHS SMALL CAP HARTFORD ADVISERS HIGH YIELD FUND EQUITY FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- INVESTMENT INCOME: Dividends $23,337 $ -- $131,598 --------- --------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (2,340) (10,750) (34,370) --------- --------- ----------- Net investment income (loss) 20,997 (10,750) 97,228 --------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,133) 23,881 5,205 Net realized gain on distributions -- -- 629,319 Net unrealized appreciation (depreciation) of investments during the year (19,589) 4,562 (409,432) --------- --------- ----------- Net gain (loss) on investments (20,722) 28,443 225,092 --------- --------- ----------- Net increase (decrease) in net assets resulting from operations $275 $17,693 $322,320 ========= ========= ===========
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. SA-61 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD TOTAL HARTFORD CAPITAL HARTFORD LARGECAP RETURN BOND APPRECIATION GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (U)(V)(W) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $917 $451,863 $30,160 --------- ---------- ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (1,169) (48,973) (153,343) --------- ---------- ------------ Net investment income (loss) (252) 402,890 (123,183) --------- ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 6,273 (5,657) 65,750 Net realized gain on distributions 10,198 -- 4,225,639 Net unrealized appreciation (depreciation) of investments during the year (12,894) (87,652) (540,840) --------- ---------- ------------ Net gain (loss) on investments 3,577 (93,309) 3,750,549 --------- ---------- ------------ Net increase (decrease) in net assets resulting from operations $3,325 $309,581 $3,627,366 ========= ========== ============
(u) Effective February 5, 2007, Hartford LargeCap Growth HLS Fund merged with Hartford Blue Chip Stock HLS Fund. (v) Formerly Hartford Blue Chip Stock HLS Fund. Change effective February 5, 2007. (w) Funded as of February 2, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-62
HARTFORD DIVIDEND HARTFORD GLOBAL HARTFORD GLOBAL HARTFORD GLOBAL AND GROWTH ADVISERS COMMUNICATIONS HEALTH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (X) SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $163,910 $952 $1 $946 ----------- --------- ---- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (60,978) (807) -- (5,446) ----------- --------- ---- ---------- Net investment income (loss) 102,932 145 1 (4,500) ----------- --------- ---- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 66,504 49 -- 2,706 Net realized gain on distributions 769,236 7,930 -- 124,400 Net unrealized appreciation (depreciation) of investments during the year (227,041) 5,322 (1) (80,767) ----------- --------- ---- ---------- Net gain (loss) on investments 608,699 13,301 (1) 46,339 ----------- --------- ---- ---------- Net increase (decrease) in net assets resulting from operations $711,631 $13,446 $ -- $41,839 =========== ========= ==== ========== HARTFORD GLOBAL HARTFORD GLOBAL GROWTH TECHNOLOGY HARTFORD GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $29 ---- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges -- (1,351) (1,244) ---- --------- --------- Net investment income (loss) -- (1,351) (1,215) ---- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 1,614 (124) Net realized gain on distributions 8 -- 11,955 Net unrealized appreciation (depreciation) of investments during the year (5) 22,256 10,390 ---- --------- --------- Net gain (loss) on investments 3 23,870 22,221 ---- --------- --------- Net increase (decrease) in net assets resulting from operations $3 $22,519 $21,006 ==== ========= =========
(r) Funded as of June 1, 2007. (x) Funded as of November 16, 2007. SA-63 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD GROWTH HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD INDEX GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (Y) - ----------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $150 $113,682 $863 --------- ----------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,560) (40,483) (833) --------- ----------- --------- Net investment income (loss) (1,410) 73,199 30 --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 96 31,912 3,435 Net realized gain on distributions 55,549 383,478 21,886 Net unrealized appreciation (depreciation) of investments during the year (13,371) (193,954) 1,523 --------- ----------- --------- Net gain (loss) on investments 42,274 221,436 26,844 --------- ----------- --------- Net increase (decrease) in net assets resulting from operations $40,864 $294,635 $26,874 ========= =========== =========
(y) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-64
HARTFORD INTERNATIONAL HARTFORD MONEY HARTFORD MORTGAGE OPPORTUNITIES HARTFORD MIDCAP MARKET SECURITIES HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (Z) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $12 $41,300 $197,669 $45,446 ------ ------------ ---------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (3) (41,027) (19,826) (6,082) ------ ------------ ---------- --------- Net investment income (loss) 9 273 177,843 39,364 ------ ------------ ---------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 64,613 -- (282) Net realized gain on distributions 234 1,294,803 -- -- Net unrealized appreciation (depreciation) of investments during the year (219) (230,900) -- (17,339) ------ ------------ ---------- --------- Net gain (loss) on investments 15 1,128,516 -- (17,621) ------ ------------ ---------- --------- Net increase (decrease) in net assets resulting from operations $24 $1,128,789 $177,843 $21,743 ====== ============ ========== ========= HARTFORD SMALL HARTFORD SMALLCAP COMPANY GROWTH HARTFORD STOCK HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $5,381 $75 $43,682 ---------- -------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (17,725) (258) (21,396) ---------- -------- ----------- Net investment income (loss) (12,344) (183) 22,286 ---------- -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 64,091 36 12,045 Net realized gain on distributions 363,403 2,700 603,441 Net unrealized appreciation (depreciation) of investments during the year (69,174) (3,980) (414,123) ---------- -------- ----------- Net gain (loss) on investments 358,320 (1,244) 201,363 ---------- -------- ----------- Net increase (decrease) in net assets resulting from operations $345,976 $(1,427) $223,649 ========== ======== ===========
(z) Funded as of September 28, 2007. SA-65 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD VALUE HOTCHKIS AND WILEY OPPORTUNITIES LARGE CAP AIM FINANCIAL HLS FUND VALUE FUND SERVICES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $10,713 $6,335 $8,089 ----------- ----------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (3,416) (4,255) (3,393) ----------- ----------- ----------- Net investment income (loss) 7,297 2,080 4,696 ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (466) (7,949) 1,845 Net realized gain on distributions 126,794 60,274 53,229 Net unrealized appreciation (depreciation) of investments during the year (227,163) (150,288) (177,730) ----------- ----------- ----------- Net gain (loss) on investments (100,835) (97,963) (122,656) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $(93,538) $(95,883) $(117,960) =========== =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-66
IVY GLOBAL AIM LEISURE AIM TECHNOLOGY NATURAL JANUS ADVISER FUND FUND RESOURCES FUND FORTY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $4,618 $ -- $7,249 $1,239 --------- --------- --------- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,485) (2,033) (1,107) (12,897) --------- --------- --------- ---------- Net investment income (loss) 133 (2,033) 6,142 (11,658) --------- --------- --------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 9,471 590 2 26,654 Net realized gain on distributions 43,556 -- 34,265 443 Net unrealized appreciation (depreciation) of investments during the year (61,343) 18,735 79 702,452 --------- --------- --------- ---------- Net gain (loss) on investments (8,316) 19,325 34,346 729,549 --------- --------- --------- ---------- Net increase (decrease) in net assets resulting from operations $(8,183) $17,292 $40,488 $717,891 ========= ========= ========= ========== JANUS ADVISER KEELEY INTERNATIONAL JANUS ADVISER SMALL CAP GROWTH FUND WORLDWIDE FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------- INVESTMENT INCOME: Dividends $33,376 $452 $ -- ---------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (15,157) (1,707) (5,953) ---------- --------- --------- Net investment income (loss) 18,219 (1,255) (5,953) ---------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 10,007 7,024 (10,412) Net realized gain on distributions 161,991 -- 33,808 Net unrealized appreciation (depreciation) of investments during the year 363,280 15,318 16,842 ---------- --------- --------- Net gain (loss) on investments 535,278 22,342 40,238 ---------- --------- --------- Net increase (decrease) in net assets resulting from operations $553,497 $21,087 $34,285 ========== ========= =========
(n) Funded as of January 12, 2007. SA-67 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
LORD ABBETT LORD ABBETT LORD ABBETT BOND AFFILIATED FUND ALL VALUE FUND DEBENTURE FUND SUB-ACCOUNT (S) SUB-ACCOUNT (H) SUB-ACCOUNT (E) - --------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $30 $127 $854 ----- -------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (11) (90) (189) ----- -------- ------ Net investment income (loss) 19 37 665 ----- -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1 (5,296) -- Net realized gain on distributions 254 1,805 -- Net unrealized appreciation (depreciation) of investments during the year (97) (1,981) (154) ----- -------- ------ Net gain (loss) on investments 158 (5,472) (154) ----- -------- ------ Net increase (decrease) in net assets resulting from operations $177 $(5,435) $511 ===== ======== ======
(e) Funded as of May 11, 2007. (h) Funded as of June 4, 2007. (s) Funded as of July 23, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-68
LORD ABBETT LORD ABBETT LORD ABBETT AMERICA'S SMALL CAP INTERNATIONAL LEGG MASON VALUE FUND BLEND FUND CORE EQUITY FUND VALUE FUND SUB-ACCOUNT (AA) SUB-ACCOUNT (BB) SUB-ACCOUNT (CC) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $ -- $ -- ---- ---------- ---- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges -- (4,000) -- (4,371) ---- ---------- ---- ---------- Net investment income (loss) -- (4,000) -- (4,371) ---- ---------- ---- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 3,505 -- (5,584) Net realized gain on distributions 1 83,523 3 44,811 Net unrealized appreciation (depreciation) of investments during the year (1) (47,921) (3) (82,062) ---- ---------- ---- ---------- Net gain (loss) on investments -- 39,107 -- (42,835) ---- ---------- ---- ---------- Net increase (decrease) in net assets resulting from operations $ -- $35,107 $ -- $(47,206) ==== ========== ==== ========== MARSHALL MASSACHUSETTS MID-CAP INVESTORS GROWTH MFS HIGH VALUE FUND STOCK FUND INCOME FUND SUB-ACCOUNT (DD) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $320 $6,916 $43,744 ---------- ----------- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (263) (8,463) (3,847) ---------- ----------- ---------- Net investment income (loss) 57 (1,547) 39,897 ---------- ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (12) 9,225 (1,790) Net realized gain on distributions 12,170 -- -- Net unrealized appreciation (depreciation) of investments during the year (15,842) 174,611 (34,955) ---------- ----------- ---------- Net gain (loss) on investments (3,684) 183,836 (36,745) ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations $(3,627) $182,289 $3,152 ========== =========== ==========
(aa) Funded as of December 4, 2007. (bb) Formerly Lord Abbett Small-Cap Blend Fund. Change effective August 15, 2007. (cc) Funded as of November 14, 2007. (dd) Funded as of April 18, 2007. SA-69 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MFS INTERNATIONAL NEW MFS MID CAP MFS STRATEGIC DISCOVERY FUND GROWTH FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (EE) - ------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $1,637 $ -- $143 --------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,308) (4,997) (54) --------- --------- -------- Net investment income (loss) 329 (4,997) 89 --------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 972 5,265 (1) Net realized gain on distributions 32,221 -- 4,396 Net unrealized appreciation (depreciation) of investments during the year (24,770) 51,411 (5,976) --------- --------- -------- Net gain (loss) on investments 8,423 56,676 (1,581) --------- --------- -------- Net increase (decrease) in net assets resulting from operations $8,752 $51,679 $(1,492) ========= ========= ========
(ee) Funded as of October 1, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-70
MFS TOTAL MFS MFS MFS RESEARCH RETURN FUND UTILITIES FUND VALUE FUND BOND FUND SUB-ACCOUNT (FF) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (GG) - -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $10 $48,315 $22,170 $11 ------ ---------- ---------- ---- EXPENSE: Mortality and Expense Risk and Administrative charges (5) (16,992) (11,943) (3) ------ ---------- ---------- ---- Net investment income (loss) 5 31,323 10,227 8 ------ ---------- ---------- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1 20,709 37,096 -- Net realized gain on distributions 117 157,098 125,437 -- Net unrealized appreciation (depreciation) of investments during the year (124) 332,947 (50,755) 79 ------ ---------- ---------- ---- Net gain (loss) on investments (6) 510,754 111,778 79 ------ ---------- ---------- ---- Net increase (decrease) in net assets resulting from operations $(1) $542,077 $122,005 $87 ====== ========== ========== ==== BLACKROCK BLACKROCK MFS CORE GLOBAL GLOBAL FINANCIAL EQUITY FUND ALLOCATION FUND SERVICES FUND SUB-ACCOUNT (HH)(II) SUB-ACCOUNT (K) SUB-ACCOUNT (N) - ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $27,933 $904 ----------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (5,071) (4,544) (593) ----------- --------- --------- Net investment income (loss) (5,071) 23,389 311 ----------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 206,975 (310) (4) Net realized gain on distributions 69,365 59,877 26,771 Net unrealized appreciation (depreciation) of investments during the year (183,694) (14,800) (36,746) ----------- --------- --------- Net gain (loss) on investments 92,646 44,767 (9,979) ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $87,575 $68,156 $(9,668) =========== ========= =========
(k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (ff) Funded as of August 20, 2007. (gg) Funded as of December 18, 2007. (hh) Effective June 22, 2007, MFS Capital Opportunities Fund merged with the MFS Core Equity Fund. (ii) From inception June 7, 2007 to December 31, 2007. SA-71 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
BLACKROCK BLACKROCK BLACKROCK LARGE CAP VALUE SMALL CAP CORE FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (L) SUB-ACCOUNT (F) SUB-ACCOUNT (JJ) - ----------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $ -- --------- ------ -------- EXPENSE: Mortality and Expense Risk and Administrative charges (595) (5) (164) --------- ------ -------- Net investment income (loss) (595) (5) (164) --------- ------ -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (13) (34) (10) Net realized gain on distributions 13,577 52 6,513 Net unrealized appreciation (depreciation) of investments during the year (14,572) (182) (5,095) --------- ------ -------- Net gain (loss) on investments (1,008) (164) 1,408 --------- ------ -------- Net increase (decrease) in net assets resulting from operations $(1,603) $(169) $1,244 ========= ====== ========
(f) Funded as of October 31, 2007. (l) Funded as of July 2, 2007. (jj) Funded as of April 17, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-72
BLACKROCK MUNDER NEUBERGER BERMAN OAKMARK MID CAP VALUE MIDCAP CORE SOCIALLY INTERNATIONAL OPPORTUNITIES FUND GROWTH FUND RESPONSIVE FUND SMALL CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $ -- $ -- $264 $18,187 -------- --------- ------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (131) (1,343) (221) (8,362) -------- --------- ------- ----------- Net investment income (loss) (131) (1,343) 43 9,825 -------- --------- ------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 10 1,362 (1) (5,563) Net realized gain on distributions 3,423 4,466 1,603 566,915 Net unrealized appreciation (depreciation) of investments during the year (3,766) 28,083 485 (776,223) -------- --------- ------- ----------- Net gain (loss) on investments (333) 33,911 2,087 (214,871) -------- --------- ------- ----------- Net increase (decrease) in net assets resulting from operations $(464) $32,568 $2,130 $(205,046) ======== ========= ======= =========== OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER INTERNATIONAL APPRECIATION FUND GLOBAL FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (KK) - ----------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $40,954 $59 ---------- ---------- ----- EXPENSE: Mortality and Expense Risk and Administrative charges (13,050) (25,857) (21) ---------- ---------- ----- Net investment income (loss) (13,050) 15,097 38 ---------- ---------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 29,561 35,261 -- Net realized gain on distributions 40,194 218,519 -- Net unrealized appreciation (depreciation) of investments during the year 174,355 (81,763) (37) ---------- ---------- ----- Net gain (loss) on investments 244,110 172,017 (37) ---------- ---------- ----- Net increase (decrease) in net assets resulting from operations $231,060 $187,114 $1 ========== ========== =====
(kk) Funded as of June 13, 2007. SA-73 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
OPPENHEIMER OPPENHEIMER MAIN STREET DEVELOPING OPPENHEIMER SMALL CAP FUND MARKETS FUND EQUITY FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT (LL) - --------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $720 $11,978 $5 --------- ---------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (815) (6,897) (1) --------- ---------- ------ Net investment income (loss) (95) 5,081 4 --------- ---------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (866) 3,307 -- Net realized gain on distributions 28,954 166,120 143 Net unrealized appreciation (depreciation) of investments during the year (46,395) 155,830 (141) --------- ---------- ------ Net gain (loss) on investments (18,307) 325,257 2 --------- ---------- ------ Net increase (decrease) in net assets resulting from operations $(18,402) $330,338 $6 ========= ========== ======
(g) Funded as of February 12, 2007. (ll) Funded as of November 19, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-74
OPPENHEIMER OPPENHEIMER OPPENHEIMER OPPENHEIMER INTERNATIONAL SMALL- & MID- CAP MAIN STREET GOLD & SPECIAL BOND FUND VALUE FUND OPPORTUNITY FUND METALS FUND SUB-ACCOUNT SUB-ACCOUNT (MM) SUB-ACCOUNT SUB-ACCOUNT (N) - ------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $12,293 $ -- $1,046 $2,269 --------- --------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (885) (2,075) (374) (529) --------- --------- --------- --------- Net investment income (loss) 11,408 (2,075) 672 1,740 --------- --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 16 67 (1) 34 Net realized gain on distributions 1,134 50,260 12,273 4,428 Net unrealized appreciation (depreciation) of investments during the year (971) (54,299) (14,199) 11,569 --------- --------- --------- --------- Net gain (loss) on investments 179 (3,972) (1,927) 16,031 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations $11,587 $(6,047) $(1,255) $17,771 ========= ========= ========= ========= PIMCO PIMCO EMERGING MARKETS PIMCO TOTAL RETURN BOND FUND REAL RETURN FUND SUB-ACCOUNT (G) SUB-ACCOUNT (A) SUB-ACCOUNT - ----------------------------- --------------------------------------------------------- INVESTMENT INCOME: Dividends $2,535 $2,192 $49,782 ------- -------- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (517) (371) (6,690) ------- -------- ---------- Net investment income (loss) 2,018 1,821 43,092 ------- -------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 5 (13) 61 Net realized gain on distributions 1,319 4,955 47,336 Net unrealized appreciation (depreciation) of investments during the year 3,725 (5,688) 33,392 ------- -------- ---------- Net gain (loss) on investments 5,049 (746) 80,789 ------- -------- ---------- Net increase (decrease) in net assets resulting from operations $7,067 $1,075 $123,881 ======= ======== ==========
(a) Funded as of March 21, 2007. (g) Funded as of February 12, 2007. (n) Funded as of January 12, 2007. (mm) Funded as of January 3, 2007. SA-75 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
PIONEER PIONEER PIONEER SMALL CAP STRATEGIC HIGH YIELD FUND VALUE FUND INCOME FUND SUB-ACCOUNT (K) SUB-ACCOUNT (NN) SUB-ACCOUNT (OO) - ----------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $2,629 $ -- $6,096 -------- --------- -------- EXPENSE: Mortality and Expense Risk and Administrative charges (320) (288) (471) -------- --------- -------- Net investment income (loss) 2,309 (288) 5,625 -------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (44) -- (1) Net realized gain on distributions 4,064 15,225 515 Net unrealized appreciation (depreciation) of investments during the year (5,212) (21,353) (1,012) -------- --------- -------- Net gain (loss) on investments (1,192) (6,128) (498) -------- --------- -------- Net increase (decrease) in net assets resulting from operations $1,117 $(6,416) $5,127 ======== ========= ========
(k) Funded as of February 1, 2007. (nn) From inception January 5, 2007 to December 31, 2007. (oo) Funded as of February 16, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-76
PIONEER PUTNAM MID CAP INTERNATIONAL PUTNAM PUTNAM VALUE FUND EQUITY FUND INVESTORS FUND VISTA FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (PP) SUB-ACCOUNT (B) - ---------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $34 $69,773 $ -- $ -- ------ --------- ---- ---- EXPENSE: Mortality and Expense Risk and Administrative charges (42) (8,351) -- (1) ------ --------- ---- ---- Net investment income (loss) (8) 61,422 -- (1) ------ --------- ---- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- (2,688) -- -- Net realized gain on distributions 461 413,119 -- -- Net unrealized appreciation (depreciation) of investments during the year (659) (309,359) (1) (7) ------ --------- ---- ---- Net gain (loss) on investments (198) 101,072 (1) (7) ------ --------- ---- ---- Net increase (decrease) in net assets resulting from operations $(206) $162,494 $(1) $(8) ====== ========= ==== ==== LEGG MASON PUTNAM PARTNERS SMALL CAP ROYCE VALUE SMALL CAP GROWTH FUND PLUS FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - ----------------------------- --------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $6,175 $ -- ------ --------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (20) (2,949) (5) ------ --------- ------ Net investment income (loss) (20) 3,226 (5) ------ --------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- (4,989) (83) Net realized gain on distributions 289 21,321 307 Net unrealized appreciation (depreciation) of investments during the year (323) (31,771) (242) ------ --------- ------ Net gain (loss) on investments (34) (15,439) (18) ------ --------- ------ Net increase (decrease) in net assets resulting from operations $(54) $(12,213) $(23) ====== ========= ======
(b) Funded as of April 12, 2007. (f) Funded as of October 31, 2007. (pp) From inception April 26, 2007 to December 31, 2007. SA-77 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DWS DREMAN SSGA HIGH RETURN S&P 500 DWS GLOBAL EQUITY FUND INDEX FUND THEMATIC FUND SUB-ACCOUNT (N) SUB-ACCOUNT SUB-ACCOUNT (QQ) - --------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,564 $11,659 $921 --------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (481) (6,124) (475) --------- --------- --------- Net investment income (loss) 1,083 5,535 446 --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (38) (715) 4 Net realized gain on distributions 7,548 -- 23,603 Net unrealized appreciation (depreciation) of investments during the year (13,774) 23,940 (21,106) --------- --------- --------- Net gain (loss) on investments (6,264) 23,225 2,501 --------- --------- --------- Net increase (decrease) in net assets resulting from operations $(5,181) $28,760 $2,947 ========= ========= =========
(n) Funded as of January 12, 2007. (qq) From inception January 5, 2007 to December 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-78
LEGG MASON PARTNERS BLACKROCK THORNBURG AGGRESSIVE SMALL/MID-CAP INTERNATIONAL THORNBURG GROWTH FUND GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (RR) SUB-ACCOUNT (B) SUB-ACCOUNT (SS) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $646 $260 -------- ------ --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (113) (5) (1,110) (316) -------- ------ --------- --------- Net investment income (loss) (113) (5) (464) (56) -------- ------ --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 51 -- 203 68 Net realized gain on distributions -- 341 29,282 14,630 Net unrealized appreciation (depreciation) of investments during the year (2,431) (264) (14,144) (20,434) -------- ------ --------- --------- Net gain (loss) on investments (2,380) 77 15,341 (5,736) -------- ------ --------- --------- Net increase (decrease) in net assets resulting from operations $(2,493) $72 $14,877 $(5,792) ======== ====== ========= ========= VICTORY VICTORY THORNBURG DIVERSIFIED SPECIAL CORE GROWTH FUND STOCK FUND VALUE FUND SUB-ACCOUNT (K) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $647 $1,534 -------- -------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,353) (617) (1,996) -------- -------- --------- Net investment income (loss) (1,353) 30 (462) -------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 958 15 (1,093) Net realized gain on distributions 224 9,660 19,110 Net unrealized appreciation (depreciation) of investments during the year 4,968 (4,154) (6,260) -------- -------- --------- Net gain (loss) on investments 6,150 5,521 11,757 -------- -------- --------- Net increase (decrease) in net assets resulting from operations $4,797 $5,551 $11,295 ======== ======== =========
(b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (rr) Funded as of July 11, 2007. (ss) Funded as of April 3, 2007. SA-79 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
VAN KAMPEN SMALL CAP VAN KAMPEN GROWTH FUND COMSTOCK FUND SUB-ACCOUNT (RR) SUB-ACCOUNT - --------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $53,156 -------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (136) (9,694) -------- ----------- Net investment income (loss) (136) 43,462 -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- 24,669 Net realized gain on distributions 3,302 195,083 Net unrealized appreciation (depreciation) of investments during the year (1,107) (434,672) -------- ----------- Net gain (loss) on investments 2,195 (214,920) -------- ----------- Net increase (decrease) in net assets resulting from operations $2,059 $(171,458) ======== ===========
(rr) Funded as of July 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-80
VAN KAMPEN VAN KAMPEN VAN KAMPEN EQUITY AND GROWTH AND MID CAP INCOME FUND INCOME FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (TT) SUB-ACCOUNT (UU) - ------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $406,948 $681 $ -- ----------- -------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (88,419) (277) (19) ----------- -------- ------ Net investment income (loss) 318,529 404 (19) ----------- -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 42,540 1 -- Net realized gain on distributions 697,886 4,624 722 Net unrealized appreciation (depreciation) of investments during the year (697,621) (7,299) (566) ----------- -------- ------ Net gain (loss) on investments 42,805 (2,674) 156 ----------- -------- ------ Net increase (decrease) in net assets resulting from operations $361,334 $(2,270) $137 =========== ======== ====== VAN KAMPEN SELIGMAN LEGG MASON REAL ESTATE COMMUNICATIONS AND PARTNERS SMALL CAP SECURITIES FUND INFORMATION FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (T) - ----------------------------- -------------------------------------------------------------------- INVESTMENT INCOME: Dividends $800 $ -- $ -- --------- ----- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (498) (24) (2) --------- ----- ------ Net investment income (loss) 302 (24) (2) --------- ----- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (211) (69) -- Net realized gain on distributions 19,455 -- 161 Net unrealized appreciation (depreciation) of investments during the year (36,683) 106 (196) --------- ----- ------ Net gain (loss) on investments (17,439) 37 (35) --------- ----- ------ Net increase (decrease) in net assets resulting from operations $(17,137) $13 $(37) ========= ===== ======
(a) Funded as of March 21, 2007. (t) Funded as of July 3, 2007. (tt) Funded as of April 9, 2007. (uu) Funded as of June 18, 2007. SA-81 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN CENTURY AMERICAN CENTURY EQUITY AMERICAN CENTURY SMALL CAP INCOME FUND ULTRA(R) FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $126,610 $(116) $11 Net realized gain (loss) on security transactions 9,884 (26) 22 Net realized gain on distributions 571,141 3,293 3,660 Net unrealized appreciation (depreciation) of investments during the year (628,032) (1,218) (4,526) ------------- --------- --------- Net increase (decrease) in net assets resulting from operations 79,603 1,933 (833) ------------- --------- --------- UNIT TRANSACTIONS: Purchases 1,350,216 5,968 5,648 Net transfers (180,023) -- (31) Surrenders for benefit payments and fees (1,236,778) (1,966) (907) Net loan activity (135) -- (10) ------------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions (66,720) 4,002 4,700 ------------- --------- --------- Net increase (decrease) in net assets 12,883 5,935 3,867 NET ASSETS: Beginning of year 6,775,066 7,890 14,766 ------------- --------- --------- End of year $6,787,949 $13,825 $18,633 ============= ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-82
AMERICAN CENTURY AMERICAN CENTURY AMERICAN CENTURY LARGE COMPANY AMERICAN CENTURY INFLATION-ADJUSTED EQUITY VALUE FUND VISTA(SM) FUND BOND FUND GROWTH FUND SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT (B) SUB-ACCOUNT (C) - ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $1 $(349) $97 $ -- Net realized gain (loss) on security transactions (1) 676 -- -- Net realized gain on distributions 11 5,666 -- 3 Net unrealized appreciation (depreciation) of investments during the year (38) 6,397 540 (3) ----- --------- ------- ---- Net increase (decrease) in net assets resulting from operations (27) 12,390 637 -- ----- --------- ------- ---- UNIT TRANSACTIONS: Purchases 247 32,315 4,974 69 Net transfers 168 1,739 3,818 -- Surrenders for benefit payments and fees (3) (4,197) (15) -- Net loan activity -- (2) -- -- ----- --------- ------- ---- Net increase (decrease) in net assets resulting from unit transactions 412 29,855 8,777 69 ----- --------- ------- ---- Net increase (decrease) in net assets 385 42,245 9,414 69 NET ASSETS: Beginning of year -- 21,323 -- -- ----- --------- ------- ---- End of year $385 $63,568 $9,414 $69 ===== ========= ======= ==== AIM BASIC AIM EUROPEAN AIM INTERNATIONAL VALUE FUND GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (D) - ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(7,650) $1,752 $139 Net realized gain (loss) on security transactions 6,959 27 11 Net realized gain on distributions 375,276 11,770 2,970 Net unrealized appreciation (depreciation) of investments during the year (350,546) (12,798) (5,092) ------------ ---------- --------- Net increase (decrease) in net assets resulting from operations 24,039 751 (1,972) ------------ ---------- --------- UNIT TRANSACTIONS: Purchases 485,658 95,968 17,882 Net transfers (337,133) 82,111 48,129 Surrenders for benefit payments and fees (348,177) (21) (432) Net loan activity (5) -- -- ------------ ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (199,657) 178,058 65,579 ------------ ---------- --------- Net increase (decrease) in net assets (175,618) 178,809 63,607 NET ASSETS: Beginning of year 2,729,856 -- -- ------------ ---------- --------- End of year $2,554,238 $178,809 $63,607 ============ ========== =========
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (c) Funded as of November 28, 2007. (d) Funded as of April 10, 2007. SA-83 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AIM MID CAP AIM SMALL CAP AIM REAL CORE EQUITY FUND GROWTH FUND ESTATE FUND SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $752 $(3,309) $11,462 Net realized gain (loss) on security transactions -- 2,066 (4,804) Net realized gain on distributions 11,356 52,643 183,833 Net unrealized appreciation (depreciation) of investments during the year (12,105) (8,824) (361,758) --------- ---------- ----------- Net increase (decrease) in net assets resulting from operations 3 42,576 (171,267) --------- ---------- ----------- UNIT TRANSACTIONS: Purchases 14,351 72,269 494,446 Net transfers 56,642 48,205 227,576 Surrenders for benefit payments and fees (6) (72,122) (21,354) Net loan activity -- -- (67) --------- ---------- ----------- Net increase (decrease) in net assets resulting from unit transactions 70,987 48,352 700,601 --------- ---------- ----------- Net increase (decrease) in net assets 70,990 90,928 529,334 NET ASSETS: Beginning of year -- 408,789 437,447 --------- ---------- ----------- End of year $70,990 $499,717 $966,781 ========= ========== ===========
(e) Funded as of May 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-84
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN AIM SMALL CAP DOMINI SOCIAL BALANCED GROWTH AND EQUITY FUND EQUITY FUND SHARES FUND INCOME FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - ----------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ -- $(21) $2,345 $1 Net realized gain (loss) on security transactions -- 78 693 -- Net realized gain on distributions 2 179 12,455 8 Net unrealized appreciation (depreciation) of investments during the year (2) (285) (13,335) (9) ---- -------- ----------- ----- Net increase (decrease) in net assets resulting from operations -- (49) 2,158 -- ---- -------- ----------- ----- UNIT TRANSACTIONS: Purchases 80 1,899 51,537 113 Net transfers -- 1,039 149,680 -- Surrenders for benefit payments and fees -- (1,513) (127,382) (3) Net loan activity -- (7) -- -- ---- -------- ----------- ----- Net increase (decrease) in net assets resulting from unit transactions 80 1,418 73,835 110 ---- -------- ----------- ----- Net increase (decrease) in net assets 80 1,369 75,993 110 NET ASSETS: Beginning of year -- 2,062 94,870 -- ---- -------- ----------- ----- End of year $80 $3,431 $170,863 $110 ==== ======== =========== ===== ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN INTERNATIONAL INTERNATIONAL GLOBAL GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $383 $19,544 $537 Net realized gain (loss) on security transactions (19) 21,161 2,993 Net realized gain on distributions 7,190 77,935 8,003 Net unrealized appreciation (depreciation) of investments during the year (1,870) (98,668) (8,610) ---------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 5,684 19,972 2,923 ---------- ------------ ---------- UNIT TRANSACTIONS: Purchases 120,522 748,955 41,754 Net transfers 38,131 676,479 1,302 Surrenders for benefit payments and fees (1,617) (65,773) (22,226) Net loan activity -- (79) -- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 157,036 1,359,582 20,830 ---------- ------------ ---------- Net increase (decrease) in net assets 162,720 1,379,554 23,753 NET ASSETS: Beginning of year -- 424,534 76,591 ---------- ------------ ---------- End of year $162,720 $1,804,088 $100,344 ========== ============ ==========
(c) Funded as of November 28, 2007. (f) Funded as of October 31, 2007. (g) Funded as of February 12, 2007. SA-85 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN CAPITAL INCOME AMCAP FUND BALANCED FUND BUILDER FUND SUB-ACCOUNT (D) SUB-ACCOUNT (E) SUB-ACCOUNT (D) - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(14) $200 $9,879 Net realized gain (loss) on security transactions 28 2 (1,838) Net realized gain on distributions 1,268 978 137,362 Net unrealized appreciation (depreciation) of investments during the year (987) (1,821) (130,564) --------- --------- ------------ Net increase (decrease) in net assets resulting from operations 295 (641) 14,839 --------- --------- ------------ UNIT TRANSACTIONS: Purchases 28,209 23,744 1,877,462 Net transfers -- 21,622 1,254,320 Surrenders for benefit payments and fees (3,165) (515) (4,419) Net loan activity (16) (6) (20) --------- --------- ------------ Net increase (decrease) in net assets resulting from unit transactions 25,028 44,845 3,127,343 --------- --------- ------------ Net increase (decrease) in net assets 25,323 44,204 3,142,182 NET ASSETS: Beginning of year -- -- -- --------- --------- ------------ End of year $25,323 $44,204 $3,142,182 ========= ========= ============
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-86
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS EUROPACIFIC FUNDAMENTAL AMERICAN FUNDS THE BOND GROWTH FUND INVESTORS FUND NEW PERSPECTIVE FUND FUND OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT (I) - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $23,613 $3,071 $1,269 $6,233 Net realized gain (loss) on security transactions (3,326) (3,474) (15) 978 Net realized gain on distributions 131,524 16,132 6,137 -- Net unrealized appreciation (depreciation) of investments during the year (20,583) (12,985) (6,459) (3,662) ------------ ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 131,228 2,744 932 3,549 ------------ ---------- --------- ---------- UNIT TRANSACTIONS: Purchases 829,881 354,062 72,664 348,330 Net transfers 846,409 19 29,393 46,964 Surrenders for benefit payments and fees (73,511) 3,519 (3,071) (10,292) Net loan activity (65) -- (32) (51) ------------ ---------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 1,602,714 357,600 98,954 384,951 ------------ ---------- --------- ---------- Net increase (decrease) in net assets 1,733,942 360,344 99,886 388,500 NET ASSETS: Beginning of year 305,654 -- -- -- ------------ ---------- --------- ---------- End of year $2,039,596 $360,344 $99,886 $388,500 ============ ========== ========= ========== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE GROWTH FUND OF THE INCOME THE INVESTMENT AMERICA FUND FUND OF AMERICA COMPANY OF AMERICA SUB-ACCOUNT SUB-ACCOUNT (J) SUB-ACCOUNT (D) - -------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $23,279 $5,910 $641 Net realized gain (loss) on security transactions 86,006 1,507 172 Net realized gain on distributions 384,602 43,033 13,762 Net unrealized appreciation (depreciation) of investments during the year (215,909) (56,585) (22,304) ------------ ---------- ---------- Net increase (decrease) in net assets resulting from operations 277,978 (6,135) (7,729) ------------ ---------- ---------- UNIT TRANSACTIONS: Purchases 2,968,356 467,877 188,850 Net transfers 2,082,762 467,671 103,979 Surrenders for benefit payments and fees (188,694) (3,197) (1,064) Net loan activity (434) (25) (8) ------------ ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 4,861,990 932,326 291,757 ------------ ---------- ---------- Net increase (decrease) in net assets 5,139,968 926,191 284,028 NET ASSETS: Beginning of year 1,748,525 -- -- ------------ ---------- ---------- End of year $6,888,493 $926,191 $284,028 ============ ========== ==========
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. (i) Funded as of February 27, 2007. (j) Funded as of February 6, 2007. SA-87 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS THE NEW WASHINGTON AMERICAN ECONOMY FUND MUTUAL INVESTORS MUTUAL FUND SUB-ACCOUNT (I) SUB-ACCOUNT SUB-ACCOUNT (D) - ---------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,350 $92 $26 Net realized gain (loss) on security transactions (3,946) (63) (6) Net realized gain on distributions 33,850 1,643 315 Net unrealized appreciation (depreciation) of investments during the year (35,775) (2,043) (504) ---------- --------- ------- Net increase (decrease) in net assets resulting from operations (4,521) (371) (169) ---------- --------- ------- UNIT TRANSACTIONS: Purchases 149,078 30,775 7,736 Net transfers 275,706 3,446 (229) Surrenders for benefit payments and fees 2,243 (3,782) (239) Net loan activity (3) (31) (5) ---------- --------- ------- Net increase (decrease) in net assets resulting from unit transactions 427,024 30,408 7,263 ---------- --------- ------- Net increase (decrease) in net assets 422,503 30,037 7,094 NET ASSETS: Beginning of year -- 306 -- ---------- --------- ------- End of year $422,503 $30,343 $7,094 ========== ========= =======
(d) Funded as of April 10, 2007. (i) Funded as of February 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-88
AMERICAN FUNDS CAPITAL AMERICAN FUNDS ARIEL WORLD GROWTH & SMALLCAP APPRECIATION INCOME FUND WORLD FUND FUND ARIEL FUND SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $39,954 $1,796 $(49) $(115) Net realized gain (loss) on security transactions 5,239 (2,636) (308) (653) Net realized gain on distributions 299,091 16,975 3,161 1,893 Net unrealized appreciation (depreciation) of investments during the year (30,980) (17,446) (4,450) (2,093) ------------ ---------- --------- --------- Net increase (decrease) in net assets resulting from operations 313,304 (1,311) (1,646) (968) ------------ ---------- --------- --------- UNIT TRANSACTIONS: Purchases 1,523,737 182,906 17,965 4,500 Net transfers 1,761,596 (964) (733) 3,802 Surrenders for benefit payments and fees (393,167) 2,696 (1,962) 13 Net loan activity (232) -- (6) -- ------------ ---------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 2,891,934 184,638 15,264 8,315 ------------ ---------- --------- --------- Net increase (decrease) in net assets 3,205,238 183,327 13,618 7,347 NET ASSETS: Beginning of year 1,188,502 -- 21,711 8,013 ------------ ---------- --------- --------- End of year $4,393,740 $183,327 $35,329 $15,360 ============ ========== ========= ========= ARTISAN MID CAP LIFEPATH LIFEPATH VALUE FUND 2010 PORTFOLIO 2020 PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,094) $13,569 $24,013 Net realized gain (loss) on security transactions (688) 369 855 Net realized gain on distributions 96,562 29,164 71,739 Net unrealized appreciation (depreciation) of investments during the year (97,015) (41,070) (90,095) ---------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (3,235) 2,032 6,512 ---------- ------------ ------------ UNIT TRANSACTIONS: Purchases 279,915 264,776 990,529 Net transfers (49,594) 724,931 527,719 Surrenders for benefit payments and fees (65,272) (7,342) (85,590) Net loan activity (60) (120) (50) ---------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 164,989 982,245 1,432,608 ---------- ------------ ------------ Net increase (decrease) in net assets 161,754 984,277 1,439,120 NET ASSETS: Beginning of year 694,904 33,439 596,498 ---------- ------------ ------------ End of year $856,658 $1,017,716 $2,035,618 ========== ============ ============
(h) Funded as of June 4, 2007. SA-89 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
LIFEPATH LIFEPATH LIFEPATH 2030 PORTFOLIO 2040 PORTFOLIO RETIREMENT PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $20,107 $11,369 $2,054 Net realized gain (loss) on security transactions (1,521) 492 (88) Net realized gain on distributions 82,732 45,249 2,438 Net unrealized appreciation (depreciation) of investments during the year (113,696) (76,617) (2,646) ------------ ------------ ---------- Net increase (decrease) in net assets resulting from operations (12,378) (19,507) 1,758 ------------ ------------ ---------- UNIT TRANSACTIONS: Purchases 1,086,719 618,102 62,305 Net transfers 484,918 646,919 19,236 Surrenders for benefit payments and fees (21,342) (34,837) (818) Net loan activity (95) (39) -- ------------ ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 1,550,200 1,230,145 80,723 ------------ ------------ ---------- Net increase (decrease) in net assets 1,537,822 1,210,638 82,481 NET ASSETS: Beginning of year 381,266 209,714 23,317 ------------ ------------ ---------- End of year $1,919,088 $1,420,352 $105,798 ============ ============ ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-90
BLACKROCK CALVERT SOCIAL BARON SMALL GOVERNMENT INVESTMENT FUND CALVERT LARGE CAP FUND INCOME FUND EQUITY PORTFOLIO CAP GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(321) $151 $(1,664) $(649) Net realized gain (loss) on security transactions 1,366 -- (8) 1,840 Net realized gain on distributions 3,178 -- 15,873 1,364 Net unrealized appreciation (depreciation) of investments during the year 1,042 243 5,028 10,369 --------- --------- ---------- --------- Net increase (decrease) in net assets resulting from operations 5,265 394 19,229 12,924 --------- --------- ---------- --------- UNIT TRANSACTIONS: Purchases 25,515 9,218 104,396 43,011 Net transfers (38,327) 1,072 14,192 (34,123) Surrenders for benefit payments and fees (8,635) (32) (1,463) (5,762) Net loan activity (5) -- -- (7) --------- --------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (21,452) 10,258 117,125 3,119 --------- --------- ---------- --------- Net increase (decrease) in net assets (16,187) 10,652 136,354 16,043 NET ASSETS: Beginning of year 65,320 -- 135,708 110,572 --------- --------- ---------- --------- End of year $49,133 $10,652 $272,062 $126,615 ========= ========= ========== ========= CALVERT SOCIAL COLUMBIA MARSICO INVESTMENT INTERNATIONAL COLUMBIA MARSICO BOND FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (K) SUB-ACCOUNT (D) SUB-ACCOUNT (L) - ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $452 $82 $(118) Net realized gain (loss) on security transactions 4 (2) 34 Net realized gain on distributions 438 1,364 -- Net unrealized appreciation (depreciation) of investments during the year (124) 332 654 --------- --------- --------- Net increase (decrease) in net assets resulting from operations 770 1,776 570 --------- --------- --------- UNIT TRANSACTIONS: Purchases 19,178 16,602 46,225 Net transfers 29,152 -- 28,476 Surrenders for benefit payments and fees (864) (499) 895 Net loan activity (8) -- -- --------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 47,458 16,103 75,596 --------- --------- --------- Net increase (decrease) in net assets 48,228 17,879 76,166 NET ASSETS: Beginning of year -- -- -- --------- --------- --------- End of year $48,228 $17,879 $76,166 ========= ========= =========
(d) Funded as of April 10, 2007. (e) Funded as of May 11, 2007. (k) Funded as of February 1, 2007. (l) Funded as of July 2, 2007. SA-91 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DAVIS CRM MID CAP DAVIS NEW YORK VALUE FUND FINANCIAL FUND VENTURE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $208 $(1) $12,413 Net realized gain (loss) on security transactions 2,004 -- 6,574 Net realized gain on distributions 17,616 23 -- Net unrealized appreciation (depreciation) of investments during the year (3,460) (49) 7,199 ---------- ----- ------------ Net increase (decrease) in net assets resulting from operations 16,368 (27) 26,186 ---------- ----- ------------ UNIT TRANSACTIONS: Purchases 84,657 40 1,078,553 Net transfers (32,543) 231 486,702 Surrenders for benefit payments and fees (29,682) (1) (84,099) Net loan activity (6) -- (51) ---------- ----- ------------ Net increase (decrease) in net assets resulting from unit transactions 22,426 270 1,481,105 ---------- ----- ------------ Net increase (decrease) in net assets 38,794 243 1,507,291 NET ASSETS: Beginning of year 157,451 -- 506,819 ---------- ----- ------------ End of year $196,245 $243 $2,014,110 ========== ===== ============
(a) Funded as of March 21, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-92
DREYFUS LIFETIME DAVIS GROWTH AND DREYFUS LIFETIME DREYFUS LIFETIME OPPORTUNITY FUND INCOME PORTFOLIO GROWTH PORTFOLIO INCOME PORTFOLIO SUB-ACCOUNT (M) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $327 $8,197 $2,195 $5,820 Net realized gain (loss) on security transactions (4,626) 464 3,760 202 Net realized gain on distributions 4,930 28,542 22,929 -- Net unrealized appreciation (depreciation) of investments during the year (11,661) (20,213) (21,613) 1,934 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (11,030) 16,990 7,271 7,956 ---------- ---------- ----------- ----------- UNIT TRANSACTIONS: Purchases 82,712 92,300 61,228 13,191 Net transfers -- 12,608 (37,869) (2,134) Surrenders for benefit payments and fees 5,233 (50,891) (3,774) (8,912) Net loan activity (5) (12) (9) -- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions 87,940 54,005 19,576 2,145 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets 76,910 70,995 26,847 10,101 NET ASSETS: Beginning of year -- 372,609 219,191 177,468 ---------- ---------- ----------- ----------- End of year $76,910 $443,604 $246,038 $187,569 ========== ========== =========== =========== DREYFUS PREMIER DREYFUS MIDCAP DREYFUS SMALLCAP CORE BOND FUND INDEX FUND STOCK INDEX FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------ OPERATIONS: Net investment income (loss) $43,002 $94 $8 Net realized gain (loss) on security transactions (260) 4,362 549 Net realized gain on distributions 2,688 4,456 1,349 Net unrealized appreciation (depreciation) of investments during the year (17,663) (3,095) (2,104) ------------- ---------- --------- Net increase (decrease) in net assets resulting from operations 27,767 5,817 (198) ------------- ---------- --------- UNIT TRANSACTIONS: Purchases 177,911 27,884 4,429 Net transfers 55,959 (41,176) 2,475 Surrenders for benefit payments and fees (68,265) (495) (30) Net loan activity (112) -- -- ------------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 165,493 (13,787) 6,874 ------------- ---------- --------- Net increase (decrease) in net assets 193,260 (7,970) 6,676 NET ASSETS: Beginning of year 925,995 58,281 9,420 ------------- ---------- --------- End of year $1,119,255 $50,311 $16,096 ============= ========== =========
(m) Funded as of July 6, 2007. SA-93 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DREYFUS PREMIER EATON VANCE EATON VANCE SMALL CAP LARGE-CAP DIVIDEND VALUE FUND VALUE FUND BUILDER FUND SUB-ACCOUNT (VV) SUB-ACCOUNT SUB-ACCOUNT (N) - ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1) $603 $152 Net realized gain (loss) on security transactions (18) (1) 116 Net realized gain on distributions -- 1,706 3,034 Net unrealized appreciation (depreciation) of investments during the year 26 5,536 (1,245) ------ ---------- --------- Net increase (decrease) in net assets resulting from operations 7 7,844 2,057 ------ ---------- --------- UNIT TRANSACTIONS: Purchases -- 281,664 45,454 Net transfers (876) -- 5,370 Surrenders for benefit payments and fees -- (2,176) (3,599) Net loan activity -- -- -- ------ ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (876) 279,488 47,225 ------ ---------- --------- Net increase (decrease) in net assets (869) 287,332 49,282 NET ASSETS: Beginning of year 869 47 -- ------ ---------- --------- End of year $ -- $287,379 $49,282 ====== ========== =========
(n) Funded as of January 12, 2007. (vv) Sub-Account not funded at December 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-94
ALGER CAPITAL EATON VANCE EATON VANCE APPRECIATION ALGER MIDCAP WORLDWIDE HEALTH INCOME INSTITUTIONAL GROWTH SCIENCES FUND FUND OF BOSTON PORTFOLIO INSTITUTIONAL FUND SUB-ACCOUNT (N) SUB-ACCOUNT (A) SUB-ACCOUNT (K) SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(6) $3,480 $(420) $(193) Net realized gain (loss) on security transactions -- (2) (88) 8 Net realized gain on distributions 200 -- -- 38,361 Net unrealized appreciation (depreciation) of investments during the year (185) (2,020) 25,040 (25,662) ------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 9 1,458 24,532 12,514 ------- ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 1,327 241,565 88,406 62,267 Net transfers -- 56,660 140,252 187,372 Surrenders for benefit payments and fees -- (1,529) (12,611) (1,046) Net loan activity -- (6) -- -- ------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 1,327 296,690 216,047 248,593 ------- ---------- ---------- ---------- Net increase (decrease) in net assets 1,336 298,148 240,579 261,107 NET ASSETS: Beginning of year -- -- -- 264 ------- ---------- ---------- ---------- End of year $1,336 $298,148 $240,579 $261,371 ======= ========== ========== ========== FEDERATED FIDELITY FIDELITY FUND FOR U.S. ADVISOR EQUITY ADVISOR VALUE GOVERNMENT GROWTH FUND STRATEGIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (O) - ----------------------------- -------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(33) $(2,575) $63 Net realized gain (loss) on security transactions 5 (830) -- Net realized gain on distributions -- 115,311 -- Net unrealized appreciation (depreciation) of investments during the year (240) (93,765) 9 --------- ---------- ------- Net increase (decrease) in net assets resulting from operations (268) 18,141 72 --------- ---------- ------- UNIT TRANSACTIONS: Purchases 13,559 135,146 5,717 Net transfers -- 27,822 -- Surrenders for benefit payments and fees (766) (54,087) (1) Net loan activity (9) (1) -- --------- ---------- ------- Net increase (decrease) in net assets resulting from unit transactions 12,784 108,880 5,716 --------- ---------- ------- Net increase (decrease) in net assets 12,516 127,021 5,788 NET ASSETS: Beginning of year -- 607,395 -- --------- ---------- ------- End of year $12,516 $734,416 $5,788 ========= ========== =======
(a) Funded as of March 21, 2007. (b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (o) Funded as of October 25, 2007. SA-95 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FEDERATED FEDERATED MID CAP GROWTH FEDERATED SHORT-TERM STRATEGIES FUND KAUFMAN FUND INCOME FUND SUB-ACCOUNT (P) SUB-ACCOUNT (G) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ -- $(690) $5,470 Net realized gain (loss) on security transactions -- 83 243 Net realized gain on distributions 5 21,313 -- Net unrealized appreciation (depreciation) of investments during the year (5) (7,420) (556) ----- ---------- ---------- Net increase (decrease) in net assets resulting from operations -- 13,286 5,157 ----- ---------- ---------- UNIT TRANSACTIONS: Purchases 210 206,904 14,609 Net transfers -- 70,492 5,253 Surrenders for benefit payments and fees -- 450 (38,816) Net loan activity -- -- -- ----- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 210 277,846 (18,954) ----- ---------- ---------- Net increase (decrease) in net assets 210 291,132 (13,797) NET ASSETS: Beginning of year -- -- 145,759 ----- ---------- ---------- End of year $210 $291,132 $131,962 ===== ========== ==========
(g) Funded as of February 12, 2007. (p) Funded as of October 29, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-96
TEMPLETON FRANKLIN DEVELOPING FRANKLIN TEMPLETON SMALL CAP MARKETS TRUST HIGH INCOME FUND GLOBAL BOND FUND VALUE FUND SUB-ACCOUNT (A) SUB-ACCOUNT (Q) SUB-ACCOUNT (M) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $7,280 $257 $1,550 $1,440 Net realized gain (loss) on security transactions (633) -- 951 (2,240) Net realized gain on distributions 58,492 -- 49 15,287 Net unrealized appreciation (depreciation) of investments during the year (38,630) (244) (611) (45,552) ---------- --------- --------- ---------- Net increase (decrease) in net assets resulting from operations 26,509 13 1,939 (31,065) ---------- --------- --------- ---------- UNIT TRANSACTIONS: Purchases 299,766 16,369 52,098 190,306 Net transfers 189,259 -- -- 224,941 Surrenders for benefit payments and fees (16,123) (67) (947) (2,962) Net loan activity (28) -- -- (29) ---------- --------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 472,874 16,302 51,151 412,256 ---------- --------- --------- ---------- Net increase (decrease) in net assets 499,383 16,315 53,090 381,191 NET ASSETS: Beginning of year -- -- -- 37,968 ---------- --------- --------- ---------- End of year $499,383 $16,315 $53,090 $419,159 ========== ========= ========= ========== MUTUAL TEMPLETON FRANKLIN DISCOVERY FUND GROWTH FUND INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $12,548 $7,922 $14,858 Net realized gain (loss) on security transactions (2,773) (6,198) (1,222) Net realized gain on distributions 16,881 54,966 23,260 Net unrealized appreciation (depreciation) of investments during the year (26,904) (74,342) (45,575) ---------- ----------- ------------ Net increase (decrease) in net assets resulting from operations (248) (17,652) (8,679) ---------- ----------- ------------ UNIT TRANSACTIONS: Purchases 806,600 562,106 709,063 Net transfers 9,241 274,997 379,127 Surrenders for benefit payments and fees 2,603 (117,088) (5,072) Net loan activity (5) (22) (58) ---------- ----------- ------------ Net increase (decrease) in net assets resulting from unit transactions 818,439 719,993 1,083,060 ---------- ----------- ------------ Net increase (decrease) in net assets 818,191 702,341 1,074,381 NET ASSETS: Beginning of year 1,573 117,215 563 ---------- ----------- ------------ End of year $819,764 $819,556 $1,074,944 ========== =========== ============
(a) Funded as of March 21, 2007. (m) Funded as of July 6, 2007. (q) Funded as of July 19, 2007. SA-97 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FRANKLIN FRANKLIN CAPITAL BALANCE SHEET MUTUAL GROWTH FUND INVESTMENT FUND BEACON FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $1 $27,526 $12,053 Net realized gain (loss) on security transactions -- 8,806 (2,549) Net realized gain on distributions 3 400,586 24,138 Net unrealized appreciation (depreciation) of investments during the year (5) (623,162) (52,464) ---- ------------ ---------- Net increase (decrease) in net assets resulting from operations (1) (186,244) (18,822) ---- ------------ ---------- UNIT TRANSACTIONS: Purchases 83 909,382 125,503 Net transfers -- (252,554) 347,320 Surrenders for benefit payments and fees (4) (386,495) (4,114) Net loan activity -- (81) (36) ---- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 79 270,252 468,673 ---- ------------ ---------- Net increase (decrease) in net assets 78 84,008 449,851 NET ASSETS: Beginning of year -- 4,466,179 1,531 ---- ------------ ---------- End of year $78 $4,550,187 $451,382 ==== ============ ==========
(r) Funded as of June 1, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-98
FRANKLIN FRANKLIN FRANKLIN FRANKLIN MUTUAL SMALL-MID CAP TEMPLETON TEMPLETON GROWTH SHARES FUND GROWTH FUND CONSERVATIVE TARGET TARGET FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $61,925 $(13,239) $174 $1,979 Net realized gain (loss) on security transactions 2,385 8,341 (910) (2,962) Net realized gain on distributions 107,543 262,623 100 2,358 Net unrealized appreciation (depreciation) of investments during the year (135,363) (109,764) (80) (767) ------------ ------------ --------- ---------- Net increase (decrease) in net assets resulting from operations 36,490 147,961 (716) 608 ------------ ------------ --------- ---------- UNIT TRANSACTIONS: Purchases 738,106 337,155 11,878 118,258 Net transfers 382,451 56,831 31 19,709 Surrenders for benefit payments and fees (289,487) (220,572) (1,366) 2,859 Net loan activity (283) (118) -- -- ------------ ------------ --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 830,787 173,296 10,543 140,826 ------------ ------------ --------- ---------- Net increase (decrease) in net assets 867,277 321,257 9,827 141,434 NET ASSETS: Beginning of year 2,494,447 1,363,017 -- 971 ------------ ------------ --------- ---------- End of year $3,361,724 $1,684,274 $9,827 $142,405 ============ ============ ========= ========== FRANKLIN TEMPLETON MODERATE TEMPLETON GE PREMIER TARGET FUND FOREIGN FUND GROWTH EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------ OPERATIONS: Net investment income (loss) $7,460 $33,870 $(32) Net realized gain (loss) on security transactions (1,707) 155,115 3 Net realized gain on distributions 6,905 800,936 799 Net unrealized appreciation (depreciation) of investments during the year (5,678) (322,341) (714) ---------- ---------------- ------- Net increase (decrease) in net assets resulting from operations 6,980 667,580 56 ---------- ---------------- ------- UNIT TRANSACTIONS: Purchases 366,616 750,563 7,537 Net transfers 66,091 19,066 195 Surrenders for benefit payments and fees (2,035) (1,102,368) (187) Net loan activity -- (92) -- ---------- ---------------- ------- Net increase (decrease) in net assets resulting from unit transactions 430,672 (332,831) 7,545 ---------- ---------------- ------- Net increase (decrease) in net assets 437,652 334,749 7,601 NET ASSETS: Beginning of year 9,321 3,533,487 1,222 ---------- ---------------- ------- End of year $446,973 $3,868,236 $8,823 ========== ================ =======
(h) Funded as of June 4, 2007. SA-99 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS CAPITAL CORE FIXED GOVERNMENT GROWTH FUND INCOME FUND INCOME FUND SUB-ACCOUNT (D) SUB-ACCOUNT (S) SUB-ACCOUNT (T) - --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(19) $20 $168 Net realized gain (loss) on security transactions (1) -- -- Net realized gain on distributions 23 -- -- Net unrealized appreciation (depreciation) of investments during the year 108 24 402 ------- ------- --------- Net increase (decrease) in net assets resulting from operations 111 44 570 ------- ------- --------- UNIT TRANSACTIONS: Purchases 2,103 1,919 21,804 Net transfers -- -- -- Surrenders for benefit payments and fees (66) (28) (31) Net loan activity (1) -- -- ------- ------- --------- Net increase (decrease) in net assets resulting from unit transactions 2,036 1,891 21,773 ------- ------- --------- Net increase (decrease) in net assets 2,147 1,935 22,343 NET ASSETS: Beginning of year -- -- -- ------- ------- --------- End of year $2,147 $1,935 $22,343 ======= ======= =========
(d) Funded as of April 10, 2007. (s) Funded as of July 23, 2007. (t) Funded as of July 3, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-100
GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GOLDMAN SACHS GROWTH & GROWTH MID CAP SMALL CAP INCOME FUND OPPORTUNITIES FUND VALUE FUND VALUE FUND SUB-ACCOUNT (H) SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT (D) - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,971 $(36) $6,068 $(445) Net realized gain (loss) on security transactions (3,307) 34 (17,303) (5,565) Net realized gain on distributions 82,995 569 346,855 37,518 Net unrealized appreciation (depreciation) of investments during the year (104,307) (214) (394,176) (47,352) ----------- ------- ------------ ---------- Net increase (decrease) in net assets resulting from operations (22,648) 353 (58,556) (15,844) ----------- ------- ------------ ---------- UNIT TRANSACTIONS: Purchases 746,767 4,936 1,374,611 183,441 Net transfers (3,709) -- 1,378,135 46,492 Surrenders for benefit payments and fees 3,526 (817) (202,771) 3,067 Net loan activity -- -- (237) (15) ----------- ------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 746,584 4,119 2,549,738 232,985 ----------- ------- ------------ ---------- Net increase (decrease) in net assets 723,936 4,472 2,491,182 217,141 NET ASSETS: Beginning of year -- -- 831,096 -- ----------- ------- ------------ ---------- End of year $723,936 $4,472 $3,322,278 $217,141 =========== ======= ============ ========== JOHN HANCOCK GOLDMAN SACHS SMALL CAP HARTFORD ADVISERS HIGH YIELD FUND EQUITY FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $20,997 $(10,750) $97,228 Net realized gain (loss) on security transactions (1,133) 23,881 5,205 Net realized gain on distributions -- -- 629,319 Net unrealized appreciation (depreciation) of investments during the year (19,589) 4,562 (409,432) ---------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 275 17,693 322,320 ---------- ------------ ------------ UNIT TRANSACTIONS: Purchases 123,942 275,025 526,409 Net transfers 11,012 (124,530) (86,889) Surrenders for benefit payments and fees (38,197) (274,045) (249,331) Net loan activity (22) (54) (96) ---------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 96,735 (123,604) 190,093 ---------- ------------ ------------ Net increase (decrease) in net assets 97,010 (105,911) 512,413 NET ASSETS: Beginning of year 228,892 1,599,019 5,383,554 ---------- ------------ ------------ End of year $325,902 $1,493,108 $5,895,967 ========== ============ ============
(d) Funded as of April 10, 2007. (h) Funded as of June 4, 2007. SA-101 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD TOTAL HARTFORD CAPITAL HARTFORD LARGECAP RETURN BOND APPRECIATION GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (U)(V)(W) SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(252) $402,890 $(123,183) Net realized gain (loss) on security transactions 6,273 (5,657) 65,750 Net realized gain on distributions 10,198 -- 4,225,639 Net unrealized appreciation (depreciation) of investments during the year (12,894) (87,652) (540,840) ---------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,325 309,581 3,627,366 ---------- ------------- ------------- UNIT TRANSACTIONS: Purchases 58,201 1,850,098 3,393,155 Net transfers 15,607 910,097 190,070 Surrenders for benefit payments and fees (528) (1,030,129) (2,668,822) Net loan activity -- (287) (629) ---------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 73,280 1,729,779 913,774 ---------- ------------- ------------- Net increase (decrease) in net assets 76,605 2,039,360 4,541,140 NET ASSETS: Beginning of year 88,143 6,803,965 22,164,416 ---------- ------------- ------------- End of year $164,748 $8,843,325 $26,705,556 ========== ============= =============
(u) Effective February 5, 2007, Hartford LargeCap Growth HLS Fund merged with Hartford Blue Chip Stock HLS Fund. (v) Formerly Hartford Blue Chip Stock HLS Fund. Change effective February 5, 2007. (w) Funded as of February 2, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-102
HARTFORD DIVIDEND HARTFORD GLOBAL HARTFORD GLOBAL HARTFORD GLOBAL AND GROWTH ADVISERS COMMUNICATIONS HEALTH HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (X) SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $102,932 $145 $1 $(4,500) Net realized gain (loss) on security transactions 66,504 49 -- 2,706 Net realized gain on distributions 769,236 7,930 -- 124,400 Net unrealized appreciation (depreciation) of investments during the year (227,041) 5,322 (1) (80,767) ------------- ---------- ----- ---------- Net increase (decrease) in net assets resulting from operations 711,631 13,446 -- 41,839 ------------- ---------- ----- ---------- UNIT TRANSACTIONS: Purchases 1,276,297 10,830 189 209,682 Net transfers 324,379 13,316 -- (17,657) Surrenders for benefit payments and fees (1,405,578) (3,486) (4) (67,015) Net loan activity (141) -- -- (60) ------------- ---------- ----- ---------- Net increase (decrease) in net assets resulting from unit transactions 194,957 20,660 185 124,950 ------------- ---------- ----- ---------- Net increase (decrease) in net assets 906,588 34,106 185 166,789 NET ASSETS: Beginning of year 8,859,313 81,870 -- 738,266 ------------- ---------- ----- ---------- End of year $9,765,901 $115,976 $185 $905,055 ============= ========== ===== ========== HARTFORD GLOBAL HARTFORD GLOBAL GROWTH TECHNOLOGY HARTFORD GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (R) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ -- $(1,351) $(1,215) Net realized gain (loss) on security transactions -- 1,614 (124) Net realized gain on distributions 8 -- 11,955 Net unrealized appreciation (depreciation) of investments during the year (5) 22,256 10,390 ----- ---------- ---------- Net increase (decrease) in net assets resulting from operations 3 22,519 21,006 ----- ---------- ---------- UNIT TRANSACTIONS: Purchases 113 103,352 65,012 Net transfers -- 10,570 43,390 Surrenders for benefit payments and fees (2) (13,555) (3,129) Net loan activity -- (26) -- ----- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 111 100,341 105,273 ----- ---------- ---------- Net increase (decrease) in net assets 114 122,860 126,279 NET ASSETS: Beginning of year -- 153,126 66,828 ----- ---------- ---------- End of year $114 $275,986 $193,107 ===== ========== ==========
(r) Funded as of June 1, 2007. (x) Funded as of November 16, 2007. SA-103 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD GROWTH HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD INDEX GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (Y) - ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,410) $73,199 $30 Net realized gain (loss) on security transactions 96 31,912 3,435 Net realized gain on distributions 55,549 383,478 21,886 Net unrealized appreciation (depreciation) of investments during the year (13,371) (193,954) 1,523 ---------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 40,864 294,635 26,874 ---------- ------------ ---------- UNIT TRANSACTIONS: Purchases 188,749 947,234 32,670 Net transfers 134,094 122,536 (27,438) Surrenders for benefit payments and fees (7,089) (618,099) (5,599) Net loan activity (7) (521) (13) ---------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 315,747 451,150 (380) ---------- ------------ ---------- Net increase (decrease) in net assets 356,611 745,785 26,494 NET ASSETS: Beginning of year 39,224 6,031,320 104,176 ---------- ------------ ---------- End of year $395,835 $6,777,105 $130,670 ========== ============ ==========
(y) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-104
HARTFORD INTERNATIONAL HARTFORD MONEY HARTFORD MORTGAGE OPPORTUNITIES HARTFORD MIDCAP MARKET SECURITIES HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT (Z) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $9 $273 $177,843 $39,364 Net realized gain (loss) on security transactions -- 64,613 -- (282) Net realized gain on distributions 234 1,294,803 -- -- Net unrealized appreciation (depreciation) of investments during the year (219) (230,900) -- (17,339) ------- ------------- ------------- ---------- Net increase (decrease) in net assets resulting from operations 24 1,128,789 177,843 21,743 ------- ------------- ------------- ---------- UNIT TRANSACTIONS: Purchases 1,562 1,423,629 3,721,564 103,484 Net transfers -- (69,664) 277,343 (47,732) Surrenders for benefit payments and fees (8) (1,494,356) (1,515,702) (81,789) Net loan activity -- (63) (192) (18) ------- ------------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 1,554 (140,454) 2,483,013 (26,055) ------- ------------- ------------- ---------- Net increase (decrease) in net assets 1,578 988,335 2,660,856 (4,312) NET ASSETS: Beginning of year -- 7,573,448 2,738,056 839,207 ------- ------------- ------------- ---------- End of year $1,578 $8,561,783 $5,398,912 $834,895 ======= ============= ============= ========== HARTFORD SMALL HARTFORD SMALLCAP COMPANY GROWTH HARTFORD STOCK HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(12,344) $(183) $22,286 Net realized gain (loss) on security transactions 64,091 36 12,045 Net realized gain on distributions 363,403 2,700 603,441 Net unrealized appreciation (depreciation) of investments during the year (69,174) (3,980) (414,123) ------------ --------- ------------ Net increase (decrease) in net assets resulting from operations 345,976 (1,427) 223,649 ------------ --------- ------------ UNIT TRANSACTIONS: Purchases 518,388 17,583 525,305 Net transfers (62,851) 7,301 (311,193) Surrenders for benefit payments and fees (993,113) (5,074) (418,733) Net loan activity (34) (15) (41) ------------ --------- ------------ Net increase (decrease) in net assets resulting from unit transactions (537,610) 19,795 (204,662) ------------ --------- ------------ Net increase (decrease) in net assets (191,634) 18,368 18,987 NET ASSETS: Beginning of year 2,611,549 16,410 4,139,301 ------------ --------- ------------ End of year $2,419,915 $34,778 $4,158,288 ============ ========= ============
(z) Funded as of September 28, 2007. SA-105 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
HARTFORD VALUE HOTCHKIS AND WILEY OPPORTUNITIES LARGE CAP AIM FINANCIAL HLS FUND VALUE FUND SERVICES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $7,297 $2,080 $4,696 Net realized gain (loss) on security transactions (466) (7,949) 1,845 Net realized gain on distributions 126,794 60,274 53,229 Net unrealized appreciation (depreciation) of investments during the year (227,163) (150,288) (177,730) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (93,538) (95,883) (117,960) ----------- ----------- ----------- UNIT TRANSACTIONS: Purchases 470,294 360,935 57,265 Net transfers 232,859 (29,107) 13,264 Surrenders for benefit payments and fees (24,825) (140,183) (53,238) Net loan activity (22) (54) (46) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions 678,306 191,591 17,245 ----------- ----------- ----------- Net increase (decrease) in net assets 584,768 95,708 (100,715) NET ASSETS: Beginning of year 290,342 581,716 498,686 ----------- ----------- ----------- End of year $875,110 $677,424 $397,971 =========== =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-106
IVY GLOBAL AIM LEISURE AIM TECHNOLOGY NATURAL JANUS ADVISER FUND FUND RESOURCES FUND FORTY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $133 $(2,033) $6,142 $(11,658) Net realized gain (loss) on security transactions 9,471 590 2 26,654 Net realized gain on distributions 43,556 -- 34,265 443 Net unrealized appreciation (depreciation) of investments during the year (61,343) 18,735 79 702,452 ----------- ---------- ---------- ------------ Net increase (decrease) in net assets resulting from operations (8,183) 17,292 40,488 717,891 ----------- ---------- ---------- ------------ UNIT TRANSACTIONS: Purchases 82,824 48,854 152,020 249,155 Net transfers 52,013 35,060 299,198 275,233 Surrenders for benefit payments and fees (112,260) (38,452) (348) (97,289) Net loan activity (20) (17) -- (102) ----------- ---------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions 22,557 45,445 450,870 426,997 ----------- ---------- ---------- ------------ Net increase (decrease) in net assets 14,374 62,737 491,358 1,144,888 NET ASSETS: Beginning of year 574,698 269,436 -- 1,935,152 ----------- ---------- ---------- ------------ End of year $589,072 $332,173 $491,358 $3,080,040 =========== ========== ========== ============ JANUS ADVISER KEELEY INTERNATIONAL JANUS ADVISER SMALL CAP GROWTH FUND WORLDWIDE FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $18,219 $(1,255) $(5,953) Net realized gain (loss) on security transactions 10,007 7,024 (10,412) Net realized gain on distributions 161,991 -- 33,808 Net unrealized appreciation (depreciation) of investments during the year 363,280 15,318 16,842 ------------ ----------- ------------ Net increase (decrease) in net assets resulting from operations 553,497 21,087 34,285 ------------ ----------- ------------ UNIT TRANSACTIONS: Purchases 581,206 33,779 583,894 Net transfers 625,278 66,384 97,723 Surrenders for benefit payments and fees (376,935) (113,908) (105,028) Net loan activity (82) (19) (84) ------------ ----------- ------------ Net increase (decrease) in net assets resulting from unit transactions 829,467 (13,764) 576,505 ------------ ----------- ------------ Net increase (decrease) in net assets 1,382,964 7,323 610,790 NET ASSETS: Beginning of year 1,973,137 244,476 790,413 ------------ ----------- ------------ End of year $3,356,101 $251,799 $1,401,203 ============ =========== ============
(n) Funded as of January 12, 2007. SA-107 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
LORD ABBETT LORD ABBETT LORD ABBETT BOND AFFILIATED FUND ALL VALUE FUND DEBENTURE FUND SUB-ACCOUNT (S) SUB-ACCOUNT (H) SUB-ACCOUNT (E) - --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $19 $37 $665 Net realized gain (loss) on security transactions 1 (5,296) -- Net realized gain on distributions 254 1,805 -- Net unrealized appreciation (depreciation) of investments during the year (97) (1,981) (154) --------- --------- --------- Net increase (decrease) in net assets resulting from operations 177 (5,435) 511 --------- --------- --------- UNIT TRANSACTIONS: Purchases 12,083 27,640 19,508 Net transfers -- (7,997) 36,217 Surrenders for benefit payments and fees (82) 4,618 (19) Net loan activity -- -- -- --------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions 12,001 24,261 55,706 --------- --------- --------- Net increase (decrease) in net assets 12,178 18,826 56,217 NET ASSETS: Beginning of year -- -- -- --------- --------- --------- End of year $12,178 $18,826 $56,217 ========= ========= =========
(e) Funded as of May 11, 2007. (h) Funded as of June 4, 2007. (s) Funded as of July 23, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-108
LORD ABBETT LORD ABBETT LORD ABBETT AMERICA'S SMALL CAP INTERNATIONAL LEGG MASON VALUE FUND BLEND FUND CORE EQUITY FUND VALUE FUND SUB-ACCOUNT (AA) SUB-ACCOUNT (BB) SUB-ACCOUNT (CC) SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ -- $(4,000) $ -- $(4,371) Net realized gain (loss) on security transactions -- 3,505 -- (5,584) Net realized gain on distributions 1 83,523 3 44,811 Net unrealized appreciation (depreciation) of investments during the year (1) (47,921) (3) (82,062) ---- ---------- ---- ----------- Net increase (decrease) in net assets resulting from operations -- 35,107 -- (47,206) ---- ---------- ---- ----------- UNIT TRANSACTIONS: Purchases 40 334,670 40 176,194 Net transfers -- 12,517 -- (135,816) Surrenders for benefit payments and fees (1) (58,359) -- (62,203) Net loan activity -- (15) -- (24) ---- ---------- ---- ----------- Net increase (decrease) in net assets resulting from unit transactions 39 288,813 40 (21,849) ---- ---------- ---- ----------- Net increase (decrease) in net assets 39 323,920 40 (69,055) NET ASSETS: Beginning of year -- 384,561 -- 596,727 ---- ---------- ---- ----------- End of year $39 $708,481 $40 $527,672 ==== ========== ==== =========== MARSHALL MASSACHUSETTS MID-CAP INVESTORS GROWTH MFS HIGH VALUE FUND STOCK FUND INCOME FUND SUB-ACCOUNT (DD) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $57 $(1,547) $39,897 Net realized gain (loss) on security transactions (12) 9,225 (1,790) Net realized gain on distributions 12,170 -- -- Net unrealized appreciation (depreciation) of investments during the year (15,842) 174,611 (34,955) --------- ------------ ---------- Net increase (decrease) in net assets resulting from operations (3,627) 182,289 3,152 --------- ------------ ---------- UNIT TRANSACTIONS: Purchases 15,358 377,902 115,969 Net transfers 61,330 (62,935) 7,248 Surrenders for benefit payments and fees (150) (229,012) (40,866) Net loan activity (7) (3) (16) --------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 76,531 85,952 82,335 --------- ------------ ---------- Net increase (decrease) in net assets 72,904 268,241 85,487 NET ASSETS: Beginning of year -- 1,616,982 504,346 --------- ------------ ---------- End of year $72,904 $1,885,223 $589,833 ========= ============ ==========
(aa) Funded as of December 4, 2007. (bb) Formerly Lord Abbett Small-Cap Blend Fund. Change effective August 15, 2007. (cc) Funded as of November 14, 2007. (dd) Funded as of April 18, 2007. SA-109 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MFS INTERNATIONAL NEW MFS MID CAP MFS STRATEGIC DISCOVERY FUND GROWTH FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (EE) - --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $329 $(4,997) $89 Net realized gain (loss) on security transactions 972 5,265 (1) Net realized gain on distributions 32,221 -- 4,396 Net unrealized appreciation (depreciation) of investments during the year (24,770) 51,411 (5,976) ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 8,752 51,679 (1,492) ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 61,938 60,834 1,673 Net transfers 3,220 19,155 27,345 Surrenders for benefit payments and fees (3,944) (74,207) (3) Net loan activity (12) (11) -- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 61,202 5,771 29,015 ---------- ---------- --------- Net increase (decrease) in net assets 69,954 57,450 27,523 NET ASSETS: Beginning of year 120,319 580,660 -- ---------- ---------- --------- End of year $190,273 $638,110 $27,523 ========== ========== =========
(ee) Funded as of October 1, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-110
MFS TOTAL MFS MFS MFS RESEARCH RETURN FUND UTILITIES FUND VALUE FUND BOND FUND SUB-ACCOUNT (FF) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (GG) - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $5 $31,323 $10,227 $8 Net realized gain (loss) on security transactions 1 20,709 37,096 -- Net realized gain on distributions 117 157,098 125,437 -- Net unrealized appreciation (depreciation) of investments during the year (124) 332,947 (50,755) 79 ------- ------------ ------------ --------- Net increase (decrease) in net assets resulting from operations (1) 542,077 122,005 87 ------- ------------ ------------ --------- UNIT TRANSACTIONS: Purchases 1,821 614,795 251,138 13,193 Net transfers (41) 604,443 57,188 -- Surrenders for benefit payments and fees (97) (341,019) (274,225) (3) Net loan activity -- (112) (59) -- ------- ------------ ------------ --------- Net increase (decrease) in net assets resulting from unit transactions 1,683 878,107 34,042 13,190 ------- ------------ ------------ --------- Net increase (decrease) in net assets 1,682 1,420,184 156,047 13,277 NET ASSETS: Beginning of year -- 1,629,168 1,691,169 -- ------- ------------ ------------ --------- End of year $1,682 $3,049,352 $1,847,216 $13,277 ======= ============ ============ ========= BLACKROCK BLACKROCK MFS CORE GLOBAL GLOBAL FINANCIAL EQUITY FUND ALLOCATION FUND SERVICES FUND SUB-ACCOUNT (HH)(II) SUB-ACCOUNT (K) SUB-ACCOUNT (N) - ----------------------------- --------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(5,071) $23,389 $311 Net realized gain (loss) on security transactions 206,975 (310) (4) Net realized gain on distributions 69,365 59,877 26,771 Net unrealized appreciation (depreciation) of investments during the year (183,694) (14,800) (36,746) ----------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 87,575 68,156 (9,668) ----------- ------------ ---------- UNIT TRANSACTIONS: Purchases 78,614 748,551 131,501 Net transfers (30,846) 789,825 11,878 Surrenders for benefit payments and fees (42,637) (29,635) (245) Net loan activity (21) (33) -- ----------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 5,110 1,508,708 143,134 ----------- ------------ ---------- Net increase (decrease) in net assets 92,685 1,576,864 133,466 NET ASSETS: Beginning of year 874,681 -- -- ----------- ------------ ---------- End of year $967,366 $1,576,864 $133,466 =========== ============ ==========
(k) Funded as of February 1, 2007. (n) Funded as of January 12, 2007. (ff) Funded as of August 20, 2007. (gg) Funded as of December 18, 2007. (hh) Effective June 22, 2007, MFS Capital Opportunities Fund merged with the MFS Core Equity Fund. (ii) From inception June 7, 2007 to December 31, 2007. SA-111 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
BLACKROCK BLACKROCK BLACKROCK LARGE CAP VALUE SMALL CAP CORE FUND OPPORTUNITIES FUND GROWTH FUND SUB-ACCOUNT (L) SUB-ACCOUNT (F) SUB-ACCOUNT (JJ) - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(595) $(5) $(164) Net realized gain (loss) on security transactions (13) (34) (10) Net realized gain on distributions 13,577 52 6,513 Net unrealized appreciation (depreciation) of investments during the year (14,572) (182) (5,095) ---------- ------- --------- Net increase (decrease) in net assets resulting from operations (1,603) (169) 1,244 ---------- ------- --------- UNIT TRANSACTIONS: Purchases 131,027 4,556 18,810 Net transfers 139,485 -- 57,016 Surrenders for benefit payments and fees (98) 223 (1,062) Net loan activity -- -- (5) ---------- ------- --------- Net increase (decrease) in net assets resulting from unit transactions 270,414 4,779 74,759 ---------- ------- --------- Net increase (decrease) in net assets 268,811 4,610 76,003 NET ASSETS: Beginning of year -- -- -- ---------- ------- --------- End of year $268,811 $4,610 $76,003 ========== ======= =========
(f) Funded as of October 31, 2007. (l) Funded as of July 2, 2007. (jj) Funded as of April 17, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-112
BLACKROCK MUNDER NEUBERGER BERMAN OAKMARK MID CAP VALUE MIDCAP CORE SOCIALLY INTERNATIONAL OPPORTUNITIES FUND GROWTH FUND RESPONSIVE FUND SMALL CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(131) $(1,343) $43 $9,825 Net realized gain (loss) on security transactions 10 1,362 (1) (5,563) Net realized gain on distributions 3,423 4,466 1,603 566,915 Net unrealized appreciation (depreciation) of investments during the year (3,766) 28,083 485 (776,223) --------- ---------- --------- ------------ Net increase (decrease) in net assets resulting from operations (464) 32,568 2,130 (205,046) --------- ---------- --------- ------------ UNIT TRANSACTIONS: Purchases 23,343 105,705 21,722 438,147 Net transfers (23) 58,212 7,114 (189,400) Surrenders for benefit payments and fees (1,209) (25,841) (1,218) (205,757) Net loan activity (5) (27) -- (5) --------- ---------- --------- ------------ Net increase (decrease) in net assets resulting from unit transactions 22,106 138,049 27,618 42,985 --------- ---------- --------- ------------ Net increase (decrease) in net assets 21,642 170,617 29,748 (162,061) NET ASSETS: Beginning of year 1,319 135,708 22,541 2,235,486 --------- ---------- --------- ------------ End of year $22,961 $306,325 $52,289 $2,073,425 ========= ========== ========= ============ OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER INTERNATIONAL APPRECIATION FUND GLOBAL FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (KK) - -------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(13,050) $15,097 $38 Net realized gain (loss) on security transactions 29,561 35,261 -- Net realized gain on distributions 40,194 218,519 -- Net unrealized appreciation (depreciation) of investments during the year 174,355 (81,763) (37) ------------ ------------ ------- Net increase (decrease) in net assets resulting from operations 231,060 187,114 1 ------------ ------------ ------- UNIT TRANSACTIONS: Purchases 260,197 544,389 8,645 Net transfers (67,927) 19,931 -- Surrenders for benefit payments and fees (229,521) (513,348) (14) Net loan activity (51) (124) -- ------------ ------------ ------- Net increase (decrease) in net assets resulting from unit transactions (37,302) 50,848 8,631 ------------ ------------ ------- Net increase (decrease) in net assets 193,758 237,962 8,632 NET ASSETS: Beginning of year 1,745,323 3,499,006 -- ------------ ------------ ------- End of year $1,939,081 $3,736,968 $8,632 ============ ============ =======
(kk) Funded as of June 13, 2007. SA-113 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
OPPENHEIMER OPPENHEIMER MAIN STREET DEVELOPING OPPENHEIMER SMALL CAP FUND MARKETS FUND EQUITY FUND SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT (LL) - ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(95) $5,081 $4 Net realized gain (loss) on security transactions (866) 3,307 -- Net realized gain on distributions 28,954 166,120 143 Net unrealized appreciation (depreciation) of investments during the year (46,395) 155,830 (141) ---------- ------------ ------- Net increase (decrease) in net assets resulting from operations (18,402) 330,338 6 ---------- ------------ ------- UNIT TRANSACTIONS: Purchases 188,592 367,462 1,659 Net transfers 163,030 6,458 -- Surrenders for benefit payments and fees (9,332) (163,093) (6) Net loan activity (7) (115) -- ---------- ------------ ------- Net increase (decrease) in net assets resulting from unit transactions 342,283 210,712 1,653 ---------- ------------ ------- Net increase (decrease) in net assets 323,881 541,050 1,659 NET ASSETS: Beginning of year -- 942,524 -- ---------- ------------ ------- End of year $323,881 $1,483,574 $1,659 ========== ============ =======
(g) Funded as of February 12, 2007. (ll) Funded as of November 19, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-114
OPPENHEIMER OPPENHEIMER OPPENHEIMER OPPENHEIMER INTERNATIONAL SMALL- & MID- CAP MAIN STREET GOLD & SPECIAL BOND FUND VALUE FUND OPPORTUNITY FUND METALS FUND SUB-ACCOUNT SUB-ACCOUNT (MM) SUB-ACCOUNT SUB-ACCOUNT (N) - --------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $11,408 $(2,075) $672 $1,740 Net realized gain (loss) on security transactions 16 67 (1) 34 Net realized gain on distributions 1,134 50,260 12,273 4,428 Net unrealized appreciation (depreciation) of investments during the year (971) (54,299) (14,199) 11,569 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 11,587 (6,047) (1,255) 17,771 ---------- ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 211,494 257,421 99,621 101,225 Net transfers 77,694 312,065 33,750 9,656 Surrenders for benefit payments and fees (5,861) (7,959) (748) 497 Net loan activity (30) (46) (3) -- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 283,297 561,481 132,620 111,378 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets 294,884 555,434 131,365 129,149 NET ASSETS: Beginning of year 1,259 -- 1,266 -- ---------- ---------- ---------- ---------- End of year $296,143 $555,434 $132,631 $129,149 ========== ========== ========== ========== PIMCO PIMCO EMERGING MARKETS PIMCO TOTAL RETURN BOND FUND REAL RETURN FUND SUB-ACCOUNT (G) SUB-ACCOUNT (A) SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------ OPERATIONS: Net investment income (loss) $2,018 $1,821 $43,092 Net realized gain (loss) on security transactions 5 (13) 61 Net realized gain on distributions 1,319 4,955 47,336 Net unrealized appreciation (depreciation) of investments during the year 3,725 (5,688) 33,392 --------- ---------- ----------- Net increase (decrease) in net assets resulting from operations 7,067 1,075 123,881 --------- ---------- ----------- UNIT TRANSACTIONS: Purchases 169,128 173,686 486,565 Net transfers 44,020 3,561 90,907 Surrenders for benefit payments and fees (3,270) (2,784) (70,251) Net loan activity (29) (8) (87) --------- ---------- ----------- Net increase (decrease) in net assets resulting from unit transactions 209,849 174,455 507,134 --------- ---------- ----------- Net increase (decrease) in net assets 216,916 175,530 631,015 NET ASSETS: Beginning of year -- -- 813,470 --------- ---------- ----------- End of year $216,916 $175,530 $1,444,485 ========= ========== ===========
(a) Funded as of March 21, 2007. (g) Funded as of February 12, 2007. (n) Funded as of January 12, 2007. (mm) Funded as of January 3, 2007. SA-115 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
PIONEER PIONEER PIONEER SMALL CAP STRATEGIC HIGH YIELD FUND VALUE FUND INCOME FUND SUB-ACCOUNT (K) SUB-ACCOUNT (NN) SUB-ACCOUNT (OO) - ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $2,309 $(288) $5,625 Net realized gain (loss) on security transactions (44) -- (1) Net realized gain on distributions 4,064 15,225 515 Net unrealized appreciation (depreciation) of investments during the year (5,212) (21,353) (1,012) ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 1,117 (6,416) 5,127 ---------- --------- ---------- UNIT TRANSACTIONS: Purchases 103,008 77,512 131,197 Net transfers 1,452 7,890 184,557 Surrenders for benefit payments and fees (1,546) (1,734) (1,550) Net loan activity (17) (10) -- ---------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 102,897 83,658 314,204 ---------- --------- ---------- Net increase (decrease) in net assets 104,014 77,242 319,331 NET ASSETS: Beginning of year -- -- -- ---------- --------- ---------- End of year $104,014 $77,242 $319,331 ========== ========= ==========
(k) Funded as of February 1, 2007. (nn) From inception January 5, 2007 to December 31, 2007. (oo) Funded as of February 16, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-116
PIONEER PUTNAM MID CAP INTERNATIONAL PUTNAM PUTNAM VALUE FUND EQUITY FUND INVESTORS FUND VISTA FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (PP) SUB-ACCOUNT (B) - ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(8) $61,422 $ -- $(1) Net realized gain (loss) on security transactions -- (2,688) -- -- Net realized gain on distributions 461 413,119 -- -- Net unrealized appreciation (depreciation) of investments during the year (659) (309,359) (1) (7) ------- ------------ ---- ----- Net increase (decrease) in net assets resulting from operations (206) 162,494 (1) (8) ------- ------------ ---- ----- UNIT TRANSACTIONS: Purchases 7,634 491,057 34 264 Net transfers -- 187,646 -- -- Surrenders for benefit payments and fees (33) (193,969) -- (3) Net loan activity -- (5) -- -- ------- ------------ ---- ----- Net increase (decrease) in net assets resulting from unit transactions 7,601 484,729 34 261 ------- ------------ ---- ----- Net increase (decrease) in net assets 7,395 647,223 33 253 NET ASSETS: Beginning of year 646 2,010,273 -- -- ------- ------------ ---- ----- End of year $8,041 $2,657,496 $33 $253 ======= ============ ==== ===== LEGG MASON PUTNAM PARTNERS SMALL CAP ROYCE VALUE SMALL CAP GROWTH FUND PLUS FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) - ----------------------------- ------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(20) $3,226 $(5) Net realized gain (loss) on security transactions -- (4,989) (83) Net realized gain on distributions 289 21,321 307 Net unrealized appreciation (depreciation) of investments during the year (323) (31,771) (242) ------- ---------- ------- Net increase (decrease) in net assets resulting from operations (54) (12,213) (23) ------- ---------- ------- UNIT TRANSACTIONS: Purchases 1,803 403,178 4,571 Net transfers (24) (30,268) -- Surrenders for benefit payments and fees (71) (79,312) 122 Net loan activity -- (36) -- ------- ---------- ------- Net increase (decrease) in net assets resulting from unit transactions 1,708 293,562 4,693 ------- ---------- ------- Net increase (decrease) in net assets 1,654 281,349 4,670 NET ASSETS: Beginning of year 620 312,178 -- ------- ---------- ------- End of year $2,274 $593,527 $4,670 ======= ========== =======
(b) Funded as of April 12, 2007. (f) Funded as of October 31, 2007. (pp) From inception April 26, 2007 to December 31, 2007. SA-117 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
DWS DREMAN SSGA HIGH RETURN S&P 500 DWS GLOBAL EQUITY FUND INDEX FUND THEMATIC FUND SUB-ACCOUNT (N) SUB-ACCOUNT SUB-ACCOUNT (QQ) - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $1,083 $5,535 $446 Net realized gain (loss) on security transactions (38) (715) 4 Net realized gain on distributions 7,548 -- 23,603 Net unrealized appreciation (depreciation) of investments during the year (13,774) 23,940 (21,106) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (5,181) 28,760 2,947 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 130,271 238,140 129,811 Net transfers 43,129 (20,065) 543 Surrenders for benefit payments and fees 37 (58,230) (559) Net loan activity -- (122) (5) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 173,437 159,723 129,790 ---------- ---------- ---------- Net increase (decrease) in net assets 168,256 188,483 132,737 NET ASSETS: Beginning of year -- 603,098 -- ---------- ---------- ---------- End of year $168,256 $791,581 $132,737 ========== ========== ==========
(n) Funded as of January 12, 2007. (qq) From inception January 5, 2007 to December 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-118
LEGG MASON PARTNERS BLACKROCK THORNBURG AGGRESSIVE SMALL/MID-CAP INTERNATIONAL THORNBURG GROWTH FUND GROWTH FUND VALUE FUND VALUE FUND SUB-ACCOUNT (RR) SUB-ACCOUNT (B) SUB-ACCOUNT (SS) SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(113) $(5) $(464) $(56) Net realized gain (loss) on security transactions 51 -- 203 68 Net realized gain on distributions -- 341 29,282 14,630 Net unrealized appreciation (depreciation) of investments during the year (2,431) (264) (14,144) (20,434) --------- ------- ---------- --------- Net increase (decrease) in net assets resulting from operations (2,493) 72 14,877 (5,792) --------- ------- ---------- --------- UNIT TRANSACTIONS: Purchases 23,488 1,983 260,865 80,990 Net transfers 63,177 -- 161,940 92,656 Surrenders for benefit payments and fees (1,725) (5) (243) (3,587) Net loan activity -- -- (8) -- --------- ------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 84,940 1,978 422,554 170,059 --------- ------- ---------- --------- Net increase (decrease) in net assets 82,447 2,050 437,431 164,267 NET ASSETS: Beginning of year -- -- -- 263 --------- ------- ---------- --------- End of year $82,447 $2,050 $437,431 $164,530 ========= ======= ========== ========= VICTORY VICTORY THORNBURG DIVERSIFIED SPECIAL CORE GROWTH FUND STOCK FUND VALUE FUND SUB-ACCOUNT (K) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,353) $30 $(462) Net realized gain (loss) on security transactions 958 15 (1,093) Net realized gain on distributions 224 9,660 19,110 Net unrealized appreciation (depreciation) of investments during the year 4,968 (4,154) (6,260) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 4,797 5,551 11,295 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 321,910 63,778 224,295 Net transfers 157,263 6,466 204,590 Surrenders for benefit payments and fees (29,270) (3,798) (14,054) Net loan activity -- -- -- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 449,903 66,446 414,831 ---------- ---------- ---------- Net increase (decrease) in net assets 454,700 71,997 426,126 NET ASSETS: Beginning of year -- 28,305 63,709 ---------- ---------- ---------- End of year $454,700 $100,302 $489,835 ========== ========== ==========
(b) Funded as of April 12, 2007. (k) Funded as of February 1, 2007. (rr) Funded as of July 11, 2007. (ss) Funded as of April 3, 2007. SA-119 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
VAN KAMPEN SMALL CAP VAN KAMPEN GROWTH FUND COMSTOCK FUND SUB-ACCOUNT (RR) SUB-ACCOUNT - ----------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(136) $43,462 Net realized gain (loss) on security transactions -- 24,669 Net realized gain on distributions 3,302 195,083 Net unrealized appreciation (depreciation) of investments during the year (1,107) (434,672) --------- ------------ Net increase (decrease) in net assets resulting from operations 2,059 (171,458) --------- ------------ UNIT TRANSACTIONS: Purchases 19,220 961,843 Net transfers 41,701 2,176,615 Surrenders for benefit payments and fees (43) (282,417) Net loan activity -- (290) --------- ------------ Net increase (decrease) in net assets resulting from unit transactions 60,878 2,855,751 --------- ------------ Net increase (decrease) in net assets 62,937 2,684,293 NET ASSETS: Beginning of year -- 876,630 --------- ------------ End of year $62,937 $3,560,923 ========= ============
(rr) Funded as of July 11, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-120
VAN KAMPEN VAN KAMPEN VAN KAMPEN EQUITY AND GROWTH AND MID CAP INCOME FUND INCOME FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (TT) SUB-ACCOUNT (UU) - -------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $318,529 $404 $(19) Net realized gain (loss) on security transactions 42,540 1 -- Net realized gain on distributions 697,886 4,624 722 Net unrealized appreciation (depreciation) of investments during the year (697,621) (7,299) (566) ------------- ---------- ------- Net increase (decrease) in net assets resulting from operations 361,334 (2,270) 137 ------------- ---------- ------- UNIT TRANSACTIONS: Purchases 3,344,595 114,418 8,139 Net transfers 2,774,775 -- -- Surrenders for benefit payments and fees (2,053,576) (89) (23) Net loan activity (662) -- -- ------------- ---------- ------- Net increase (decrease) in net assets resulting from unit transactions 4,065,132 114,329 8,116 ------------- ---------- ------- Net increase (decrease) in net assets 4,426,466 112,059 8,253 NET ASSETS: Beginning of year 13,905,220 -- -- ------------- ---------- ------- End of year $18,331,686 $112,059 $8,253 ============= ========== ======= VAN KAMPEN SELIGMAN LEGG MASON REAL ESTATE COMMUNICATIONS AND PARTNERS SMALL CAP SECURITIES FUND INFORMATION FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (T) - ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $302 $(24) $(2) Net realized gain (loss) on security transactions (211) (69) -- Net realized gain on distributions 19,455 -- 161 Net unrealized appreciation (depreciation) of investments during the year (36,683) 106 (196) --------- ------- ------- Net increase (decrease) in net assets resulting from operations (17,137) 13 (37) --------- ------- ------- UNIT TRANSACTIONS: Purchases 31,025 641 1,090 Net transfers 63,802 4,918 -- Surrenders for benefit payments and fees (3,835) 71 (4) Net loan activity -- -- -- --------- ------- ------- Net increase (decrease) in net assets resulting from unit transactions 90,992 5,630 1,086 --------- ------- ------- Net increase (decrease) in net assets 73,855 5,643 1,049 NET ASSETS: Beginning of year 734 -- -- --------- ------- ------- End of year $74,589 $5,643 $1,049 ========= ======= =======
(a) Funded as of March 21, 2007. (t) Funded as of July 3, 2007. (tt) Funded as of April 9, 2007. (uu) Funded as of June 18, 2007. SA-121 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2006
AMERICAN CENTURY AMERICAN CENTURY EQUITY AMERICAN CENTURY SMALL CAP INCOME FUND ULTRA(R) FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ---------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $98,996 $(85) $(42) Net realized gain (loss) on security transactions 36,673 (1,331) 107 Net realized gain on distributions 407,989 538 1,756 Net unrealized appreciation (depreciation) of investments during the year 466,118 (237) (556) ------------ --------- --------- Net increase (decrease) in net assets resulting from operations 1,009,776 (1,115) 1,265 ------------ --------- --------- UNIT TRANSACTIONS: Purchases 1,523,579 10,053 7,328 Net transfers (129,787) (13,536) 4,191 Surrenders for benefit payments and fees (465,582) -- (11) Net loan activity (70) -- -- ------------ --------- --------- Net increase (decrease) in net assets resulting from unit transactions 928,140 (3,483) 11,508 ------------ --------- --------- Net increase (decrease) in net assets 1,937,916 (4,598) 12,773 NET ASSETS: Beginning of year 4,837,150 12,488 1,993 ------------ --------- --------- End of year $6,775,066 $7,890 $14,766 ============ ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-122
AMERICAN CENTURY AIM BASIC AIM SMALL CAP AIM REAL VISTA(SM) FUND VALUE FUND GROWTH FUND ESTATE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(60) $(6,007) $(2,205) $2,782 Net realized gain (loss) on security transactions -- 1,569 (9,418) 12,637 Net realized gain on distributions 165 147,882 28,210 43,444 Net unrealized appreciation (depreciation) of investments during the year 1,028 155,915 (10,073) 14,665 --------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from operations 1,133 299,359 6,514 73,528 --------- ------------ ----------- ---------- UNIT TRANSACTIONS: Purchases 14,040 455,308 58,319 205,769 Net transfers 5,221 111,898 551,474 147,970 Surrenders for benefit payments and fees (5) (153,109) (207,518) (13,714) Net loan activity -- (11) -- (23) --------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from unit transactions 19,256 414,086 402,275 340,002 --------- ------------ ----------- ---------- Net increase (decrease) in net assets 20,389 713,445 408,789 413,530 NET ASSETS: Beginning of year 934 2,016,411 -- 23,917 --------- ------------ ----------- ---------- End of year $21,323 $2,729,856 $408,789 $437,447 ========= ============ =========== ========== ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN DOMINI SOCIAL BALANCED INTERNATIONAL EQUITY FUND SHARES FUND VALUE FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $6 $793 $5,687 Net realized gain (loss) on security transactions -- 894 5 Net realized gain on distributions -- 2,472 18,717 Net unrealized appreciation (depreciation) of investments during the year 54 4,144 11,516 ------- --------- ---------- Net increase (decrease) in net assets resulting from operations 60 8,303 35,925 ------- --------- ---------- UNIT TRANSACTIONS: Purchases 694 61,754 148,497 Net transfers 1,310 11,179 227,961 Surrenders for benefit payments and fees (2) (1,417) (887) Net loan activity -- -- (9) ------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 2,002 71,516 375,562 ------- --------- ---------- Net increase (decrease) in net assets 2,062 79,819 411,487 NET ASSETS: Beginning of year -- 15,051 13,047 ------- --------- ---------- End of year $2,062 $94,870 $424,534 ======= ========= ==========
(a) From inception, April 17, 2006 to December 31, 2006. (b) Funded as of February 28, 2006. SA-123 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
ALLIANCEBERNSTEIN AMERICAN FUNDS AMERICAN FUNDS GLOBAL EUROPACIFIC THE GROWTH FUND OF VALUE FUND GROWTH FUND AMERICA FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,016 $3,191 $3,347 Net realized gain (loss) on security transactions 1,416 1,803 756 Net realized gain on distributions 5,978 16,561 55,984 Net unrealized appreciation (depreciation) of investments during the year (919) 8,857 12,875 --------- ---------- ------------ Net increase (decrease) in net assets resulting from operations 7,491 30,412 72,962 --------- ---------- ------------ UNIT TRANSACTIONS: Purchases 16,737 192,297 849,475 Net transfers 56,000 83,003 832,697 Surrenders for benefit payments and fees (3,945) (4,245) (30,391) Net loan activity -- (8) (78) --------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions 68,792 271,047 1,651,703 --------- ---------- ------------ Net increase (decrease) in net assets 76,283 301,459 1,724,665 NET ASSETS: Beginning of year 308 4,195 23,860 --------- ---------- ------------ End of year $76,591 $305,654 $1,748,525 ========= ========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-124
AMERICAN FUNDS CAPITAL AMERICAN FUNDS ARIEL WORLD GROWTH & WASHINGTON APPRECIATION INCOME FUND MUTUAL INVESTORS FUND ARIEL FUND SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $4,730 $1 $(88) $(33) Net realized gain (loss) on security transactions (479) -- (1) -- Net realized gain on distributions 51,074 7 1,203 363 Net unrealized appreciation (depreciation) of investments during the year 52,023 (5) 583 149 ------------ ------ --------- ------- Net increase (decrease) in net assets resulting from operations 107,348 3 1,697 479 ------------ ------ --------- ------- UNIT TRANSACTIONS: Purchases 855,783 306 11,842 3,385 Net transfers 226,452 -- 44 1,787 Surrenders for benefit payments and fees (7,728) (3) (22) (5) Net loan activity (5) -- -- -- ------------ ------ --------- ------- Net increase (decrease) in net assets resulting from unit transactions 1,074,502 303 11,864 5,167 ------------ ------ --------- ------- Net increase (decrease) in net assets 1,181,850 306 13,561 5,646 NET ASSETS: Beginning of year 6,652 -- 8,150 2,367 ------------ ------ --------- ------- End of year $1,188,502 $306 $21,711 $8,013 ============ ====== ========= ======= ARTISAN MID CAP LIFEPATH LIFEPATH VALUE FUND 2010 PORTFOLIO 2020 PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,117) $387 $6,375 Net realized gain (loss) on security transactions 5,250 30 171 Net realized gain on distributions 38,253 589 -- Net unrealized appreciation (depreciation) of investments during the year 19,639 (209) 29,672 ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 62,025 797 36,218 ---------- --------- ---------- UNIT TRANSACTIONS: Purchases 402,044 12,564 535,414 Net transfers 254,535 18,262 17,586 Surrenders for benefit payments and fees (41,252) (37) (17,350) Net loan activity (5) -- -- ---------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 615,322 30,789 535,650 ---------- --------- ---------- Net increase (decrease) in net assets 677,347 31,586 571,868 NET ASSETS: Beginning of year 17,557 1,853 24,630 ---------- --------- ---------- End of year $694,904 $33,439 $596,498 ========== ========= ==========
(c) From inception, June 21, 2006 to December 31, 2006. SA-125 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
LIFEPATH LIFEPATH LIFEPATH 2030 PORTFOLIO 2040 PORTFOLIO RETIREMENT PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (D) - --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $4,096 $1,690 $387 Net realized gain (loss) on security transactions 602 32 15 Net realized gain on distributions 9,349 -- 379 Net unrealized appreciation (depreciation) of investments during the year 11,431 13,906 190 ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 25,478 15,628 971 ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 316,783 159,422 20,818 Net transfers 44,975 28,895 2,241 Surrenders for benefit payments and fees (9,307) (6,291) (707) Net loan activity -- -- (6) ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 352,451 182,026 22,346 ---------- ---------- --------- Net increase (decrease) in net assets 377,929 197,654 23,317 NET ASSETS: Beginning of year 3,337 12,060 -- ---------- ---------- --------- End of year $381,266 $209,714 $23,317 ========== ========== =========
(d) Funded as of February 9, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-126
CALVERT SOCIAL BARON SMALL INVESTMENT FUND CALVERT LARGE CRM MID CAP CAP FUND EQUITY PORTFOLIO CAP GROWTH FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(208) $(598) $(344) $415 Net realized gain (loss) on security transactions (393) 3 1,768 705 Net realized gain on distributions 8,242 5,519 -- 8,283 Net unrealized appreciation (depreciation) of investments during the year (1,682) 4,173 2,806 4,693 --------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 5,959 9,097 4,230 14,096 --------- ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 64,462 111,900 74,402 153,764 Net transfers (7,411) 14,787 12,823 4,755 Surrenders for benefit payments and fees (7,737) (516) (1,231) (16,569) Net loan activity -- -- (11) -- --------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 49,314 126,171 85,983 141,950 --------- ---------- ---------- ---------- Net increase (decrease) in net assets 55,273 135,268 90,213 156,046 NET ASSETS: Beginning of year 10,047 440 20,359 1,405 --------- ---------- ---------- ---------- End of year $65,320 $135,708 $110,572 $157,451 ========= ========== ========== ========== DAVIS DREYFUS LIFETIME NEW YORK GROWTH AND DREYFUS LIFETIME VENTURE FUND INCOME PORTFOLIO GROWTH PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $2,120 $6,881 $3,169 Net realized gain (loss) on security transactions 843 2,953 18,510 Net realized gain on distributions -- 15,151 329 Net unrealized appreciation (depreciation) of investments during the year 37,962 5,935 4,683 ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 40,925 30,920 26,691 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 411,270 114,910 41,998 Net transfers 77,939 (6,597) 13,259 Surrenders for benefit payments and fees (34,073) (37,386) (7,546) Net loan activity (6) (18) (24) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 455,130 70,909 47,687 ---------- ---------- ---------- Net increase (decrease) in net assets 496,055 101,829 74,378 NET ASSETS: Beginning of year 10,764 270,780 144,813 ---------- ---------- ---------- End of year $506,819 $372,609 $219,191 ========== ========== ==========
SA-127 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
DREYFUS LIFETIME DREYFUS PREMIER DREYFUS MIDCAP INCOME PORTFOLIO CORE BOND FUND INDEX FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $5,466 $31,677 $231 Net realized gain (loss) on security transactions 112 (3,727) 33 Net realized gain on distributions -- -- 2,200 Net unrealized appreciation (depreciation) of investments during the year 1,488 6,251 138 ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 7,066 34,201 2,602 ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 76,429 192,853 44,444 Net transfers (11,819) 30,739 7,166 Surrenders for benefit payments and fees (1,052) (47,620) (2,865) Net loan activity (2) (27) (15) ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 63,556 175,945 48,730 ---------- ---------- --------- Net increase (decrease) in net assets 70,622 210,146 51,332 NET ASSETS: Beginning of year 106,846 715,849 6,949 ---------- ---------- --------- End of year $177,468 $925,995 $58,281 ========== ========== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-128
DREYFUS PREMIER EATON VANCE ALGER MIDCAP DREYFUS SMALLCAP SMALL CAP LARGE-CAP GROWTH STOCK INDEX FUND VALUE FUND VALUE FUND INSTITUTIONAL FUND SUB-ACCOUNT SUB-ACCOUNT (D) SUB-ACCOUNT (C) SUB-ACCOUNT (C) - ----------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $7 $3 $ -- $ -- Net realized gain (loss) on security transactions -- (3) -- -- Net realized gain on distributions 355 61 1 17 Net unrealized appreciation (depreciation) of investments during the year (3) (27) -- (12) ------- ------ ---- ----- Net increase (decrease) in net assets resulting from operations 359 34 1 5 ------- ------ ---- ----- UNIT TRANSACTIONS: Purchases 7,612 835 48 262 Net transfers 1,265 105 -- -- Surrenders for benefit payments and fees (4) (105) (2) (3) Net loan activity -- -- -- -- ------- ------ ---- ----- Net increase (decrease) in net assets resulting from unit transactions 8,873 835 46 259 ------- ------ ---- ----- Net increase (decrease) in net assets 9,232 869 47 264 NET ASSETS: Beginning of year 188 -- -- -- ------- ------ ---- ----- End of year $9,420 $869 $47 $264 ======= ====== ==== ===== FIDELITY FEDERATED FRANKLIN ADVISOR VALUE SHORT-TERM SMALL CAP STRATEGIES FUND INCOME FUND VALUE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,153) $5,345 $64 Net realized gain (loss) on security transactions 3,948 37 (12) Net realized gain on distributions 71,035 -- 2,436 Net unrealized appreciation (depreciation) of investments during the year 11,409 547 (1,365) ----------- ---------- --------- Net increase (decrease) in net assets resulting from operations 84,239 5,929 1,123 ----------- ---------- --------- UNIT TRANSACTIONS: Purchases 132,531 37,836 34,477 Net transfers (203,468) (13,342) -- Surrenders for benefit payments and fees (50,131) (18,568) (507) Net loan activity (4) -- -- ----------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (121,072) 5,926 33,970 ----------- ---------- --------- Net increase (decrease) in net assets (36,833) 11,855 35,093 NET ASSETS: Beginning of year 644,228 133,904 2,875 ----------- ---------- --------- End of year $607,395 $145,759 $37,968 =========== ========== =========
(c) From inception, June 21, 2006 to December 31, 2006. (d) Funded as of February 9, 2006. SA-129 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
FRANKLIN MUTUAL FRANKLIN BALANCE SHEET DISCOVERY FUND INCOME FUND INVESTMENT FUND SUB-ACCOUNT (C) SUB-ACCOUNT (C) SUB-ACCOUNT - ---------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $20 $1 $37,406 Net realized gain (loss) on security transactions -- -- 266,243 Net realized gain on distributions 42 6 264,735 Net unrealized appreciation (depreciation) of investments during the year (19) 2 3,736 ------- ----- ------------ Net increase (decrease) in net assets resulting from operations 43 9 572,120 ------- ----- ------------ UNIT TRANSACTIONS: Purchases 1,536 560 815,493 Net transfers -- -- (79,322) Surrenders for benefit payments and fees (6) (6) (192,126) Net loan activity -- -- (84) ------- ----- ------------ Net increase (decrease) in net assets resulting from unit transactions 1,530 554 543,961 ------- ----- ------------ Net increase (decrease) in net assets 1,573 563 1,116,081 NET ASSETS: Beginning of year -- -- 3,350,098 ------- ----- ------------ End of year $1,573 $563 $4,466,179 ======= ===== ============
(c) From inception, June 21, 2006 to December 31, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-130
FRANKLIN FRANKLIN FRANKLIN MUTUAL MUTUAL SMALL-MID CAP TEMPLETON GROWTH BEACON SHARES FUND GROWTH FUND TARGET FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) - ----------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $15 $23,439 $(10,783) $13 Net realized gain (loss) on security transactions -- 40,327 3,393 -- Net realized gain on distributions 111 149,769 94,523 7 Net unrealized appreciation (depreciation) of investments during the year (95) 131,459 (7,999) (10) ------- ------------ ------------ ----- Net increase (decrease) in net assets resulting from operations 31 344,994 79,134 10 ------- ------------ ------------ ----- UNIT TRANSACTIONS: Purchases 1,507 394,053 310,035 964 Net transfers -- 133,764 (91,668) -- Surrenders for benefit payments and fees (7) (248,605) (79,209) (3) Net loan activity -- (138) (17) -- ------- ------------ ------------ ----- Net increase (decrease) in net assets resulting from unit transactions 1,500 279,074 139,141 961 ------- ------------ ------------ ----- Net increase (decrease) in net assets 1,531 624,068 218,275 971 NET ASSETS: Beginning of year -- 1,870,379 1,144,742 -- ------- ------------ ------------ ----- End of year $1,531 $2,494,447 $1,363,017 $971 ======= ============ ============ ===== FRANKLIN TEMPLETON MODERATE TEMPLETON TEMPLETON TARGET FUND GROWTH FUND FOREIGN FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $131 $1,174 $47,145 Net realized gain (loss) on security transactions -- 186 277,434 Net realized gain on distributions 106 4,866 280,308 Net unrealized appreciation (depreciation) of investments during the year (192) 3,637 (14,852) ------- ---------- ------------- Net increase (decrease) in net assets resulting from operations 45 9,863 590,035 ------- ---------- ------------- UNIT TRANSACTIONS: Purchases 9,301 86,708 712,415 Net transfers -- 4,676 86,577 Surrenders for benefit payments and fees (25) (146) (1,123,097) Net loan activity -- -- (14) ------- ---------- ------------- Net increase (decrease) in net assets resulting from unit transactions 9,276 91,238 (324,119) ------- ---------- ------------- Net increase (decrease) in net assets 9,321 101,101 265,916 NET ASSETS: Beginning of year -- 16,114 3,267,571 ------- ---------- ------------- End of year $9,321 $117,215 $3,533,487 ======= ========== =============
(c) From inception, June 21, 2006 to December 31, 2006. SA-131 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
GOLDMAN SACHS GE PREMIER MID CAP GOLDMAN SACHS GROWTH EQUITY FUND VALUE FUND HIGH YIELD FUND SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(3) $1,963 $4,534 Net realized gain (loss) on security transactions (1) 7,861 74 Net realized gain on distributions 170 29,734 -- Net unrealized appreciation (depreciation) of investments during the year (113) (861) 2,207 ------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 53 38,697 6,815 ------- ---------- ---------- UNIT TRANSACTIONS: Purchases 1,170 469,189 128,552 Net transfers -- 310,472 93,057 Surrenders for benefit payments and fees (1) (10,381) (44) Net loan activity -- (21) -- ------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 1,169 769,259 221,565 ------- ---------- ---------- Net increase (decrease) in net assets 1,222 807,956 228,380 NET ASSETS: Beginning of year -- 23,140 512 ------- ---------- ---------- End of year $1,222 $831,096 $228,892 ======= ========== ==========
(e) Funded as of February 13, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-132
JOHN HANCOCK HARTFORD TOTAL HARTFORD CAPITAL SMALL CAP HARTFORD ADVISERS RETURN BOND APPRECIATION EQUITY FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(10,148) $90,199 $287,856 $156,073 Net realized gain (loss) on security transactions 30,816 301,776 (61,724) 1,568,195 Net realized gain on distributions -- 382,713 964 2,607,688 Net unrealized appreciation (depreciation) of investments during the year 58,656 (291,650) 52,838 (1,420,195) ---------- ----------- ----------- ------------- Net increase (decrease) in net assets resulting from operations 79,324 483,038 279,934 2,911,761 ---------- ----------- ----------- ------------- UNIT TRANSACTIONS: Purchases 348,333 683,144 1,741,921 2,893,689 Net transfers (76,798) (193,600) 95,474 78,509 Surrenders for benefit payments and fees (88,832) (339,195) (1,624,766) (873,646) Net loan activity (17) (121) (138) (371) ---------- ----------- ----------- ------------- Net increase (decrease) in net assets resulting from unit transactions 182,686 150,228 212,491 2,098,181 ---------- ----------- ----------- ------------- Net increase (decrease) in net assets 262,010 633,266 492,425 5,009,942 NET ASSETS: Beginning of year 1,337,009 4,750,288 6,311,540 17,154,474 ---------- ----------- ----------- ------------- End of year $1,599,019 $5,383,554 $6,803,965 $22,164,416 ========== =========== =========== ============= HARTFORD DIVIDEND HARTFORD GLOBAL HARTFORD GLOBAL AND GROWTH ADVISERS HEALTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- --------------------------------------------------------- OPERATIONS: Net investment income (loss) $93,198 $1,645 $(3,716) Net realized gain (loss) on security transactions 196,275 -- 24,428 Net realized gain on distributions 617,270 2,789 111,311 Net unrealized appreciation (depreciation) of investments during the year 550,680 (904) (57,115) ----------- -------- ---------- Net increase (decrease) in net assets resulting from operations 1,457,423 3,530 74,908 ----------- -------- ---------- UNIT TRANSACTIONS: Purchases 1,248,498 4,298 166,835 Net transfers 109,810 73,896 63,348 Surrenders for benefit payments and fees (1,238,614) (109) (158,812) Net loan activity (176) -- (6) ----------- -------- ---------- Net increase (decrease) in net assets resulting from unit transactions 119,518 78,085 71,365 ----------- -------- ---------- Net increase (decrease) in net assets 1,576,941 81,615 146,273 NET ASSETS: Beginning of year 7,282,372 255 591,993 ----------- -------- ---------- End of year $8,859,313 $81,870 $738,266 =========== ======== ==========
SA-133 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
HARTFORD GLOBAL HARTFORD GROWTH TECHNOLOGY HARTFORD GROWTH OPPORTUNITIES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,048) $(140) $170 Net realized gain (loss) on security transactions 7,839 664 (1) Net realized gain on distributions -- 3,717 3,044 Net unrealized appreciation (depreciation) of investments during the year 5,555 (2,017) (1,474) ---------- --------- --------- Net increase (decrease) in net assets resulting from operations 12,346 2,224 1,739 ---------- --------- --------- UNIT TRANSACTIONS: Purchases 26,257 48,994 20,168 Net transfers (36,014) 12,823 17,168 Surrenders for benefit payments and fees (2,312) (220) 20 Net loan activity (15) -- -- ---------- --------- --------- Net increase (decrease) in net assets resulting from unit transactions (12,084) 61,597 37,356 ---------- --------- --------- Net increase (decrease) in net assets 262 63,821 39,095 NET ASSETS: Beginning of year 152,864 3,007 129 ---------- --------- --------- End of year $153,126 $66,828 $39,224 ========== ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-134
HARTFORD INTERNATIONAL HARTFORD LARGECAP HARTFORD INDEX CAPITAL APPRECIATION GROWTH HARTFORD MIDCAP HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $62,870 $469 $41 $40,987 Net realized gain (loss) on security transactions 444,804 108 -- 152,373 Net realized gain on distributions 641,347 6,642 -- 1,152,236 Net unrealized appreciation (depreciation) of investments during the year (338,910) 2,772 4,037 (589,857) ------------ ---------- --------- ------------ Net increase (decrease) in net assets resulting from operations 810,111 9,991 4,078 755,739 ------------ ---------- --------- ------------ UNIT TRANSACTIONS: Purchases 900,286 85,956 63,521 1,309,854 Net transfers (340,330) 2,326 7,652 (678,255) Surrenders for benefit payments and fees (809,097) (635) (93) (976,280) Net loan activity (135) -- -- (67) ------------ ---------- --------- ------------ Net increase (decrease) in net assets resulting from unit transactions (249,276) 87,647 71,080 (344,748) ------------ ---------- --------- ------------ Net increase (decrease) in net assets 560,835 97,638 75,158 410,991 NET ASSETS: Beginning of year 5,470,485 6,538 12,985 7,162,457 ------------ ---------- --------- ------------ End of year $6,031,320 $104,176 $88,143 $7,573,448 ============ ========== ========= ============ HARTFORD MONEY HARTFORD MORTGAGE HARTFORD SMALL MARKET SECURITIES COMPANY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $73,935 $80,568 $(15,237) Net realized gain (loss) on security transactions -- (28,457) 333,614 Net realized gain on distributions -- -- 397,227 Net unrealized appreciation (depreciation) of investments during the year -- (20,309) (381,194) ------------ ---------- ------------ Net increase (decrease) in net assets resulting from operations 73,935 31,802 334,410 ------------ ---------- ------------ UNIT TRANSACTIONS: Purchases 2,013,447 112,215 489,071 Net transfers 165,876 47,010 27,720 Surrenders for benefit payments and fees (759,627) (78,756) (925,352) Net loan activity (12) (20) (64) ------------ ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions 1,419,684 80,449 (408,625) ------------ ---------- ------------ Net increase (decrease) in net assets 1,493,619 112,251 (74,215) NET ASSETS: Beginning of year 1,244,437 726,956 2,685,764 ------------ ---------- ------------ End of year $2,738,056 $839,207 $2,611,549 ============ ========== ============
SA-135 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
HARTFORD SMALLCAP HARTFORD VALUE GROWTH HARTFORD STOCK OPPORTUNITIES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $8 $31,189 $2,779 Net realized gain (loss) on security transactions (11) 478,535 (2,334) Net realized gain on distributions 1,020 226,882 22,673 Net unrealized appreciation (depreciation) of investments during the year (628) (231,380) 1,334 --------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 389 505,226 24,452 --------- ------------ ---------- UNIT TRANSACTIONS: Purchases 7,788 510,144 197,222 Net transfers 6,693 (521,590) 70,464 Surrenders for benefit payments and fees (507) (139,141) (3,665) Net loan activity -- (45) -- --------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 13,974 (150,632) 264,021 --------- ------------ ---------- Net increase (decrease) in net assets 14,363 354,594 288,473 NET ASSETS: Beginning of year 2,047 3,784,707 1,869 --------- ------------ ---------- End of year $16,410 $4,139,301 $290,342 ========= ============ ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-136
HOTCHKIS AND WILEY AIM SMALL LARGE CAP AIM FINANCIAL AIM LEISURE COMPANY VALUE FUND SERVICES FUND FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $2,611 $2,687 $7,533 $(965) Net realized gain (loss) on security transactions 4,859 (7,946) (3,029) 132,213 Net realized gain on distributions 22,219 50,017 28,719 -- Net unrealized appreciation (depreciation) of investments during the year 29,867 22,529 87,561 (76,570) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 59,556 67,287 120,784 54,678 ---------- ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 523,657 75,178 57,936 13,974 Net transfers (20,701) (23,631) (26,686) (535,375) Surrenders for benefit payments and fees (47,341) (77,078) (242,850) (30,906) Net loan activity (12) (6) (11) (13) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 455,603 (25,537) (211,611) (552,320) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets 515,159 41,750 (90,827) (497,642) NET ASSETS: Beginning of year 66,557 456,936 665,525 497,642 ---------- ---------- ---------- ---------- End of year $581,716 $498,686 $574,698 $ -- ========== ========== ========== ========== JANUS ADVISER AIM TECHNOLOGY JANUS ADVISER INTERNATIONAL FUND FORTY FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- ---------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,467) $(9,421) $5,742 Net realized gain (loss) on security transactions 167 382,248 86,070 Net realized gain on distributions -- 63,352 -- Net unrealized appreciation (depreciation) of investments during the year 18,499 (269,088) 334,025 ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 17,199 167,091 425,837 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 110,813 288,337 215,001 Net transfers (13,996) (168,760) 920,761 Surrenders for benefit payments and fees (3,155) (62,326) (51,654) Net loan activity -- (17) (26) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 93,662 57,234 1,084,082 ---------- ---------- ---------- Net increase (decrease) in net assets 110,861 224,325 1,509,919 NET ASSETS: Beginning of year 158,575 1,710,827 463,218 ---------- ---------- ---------- End of year $269,436 $1,935,152 $1,973,137 ========== ========== ==========
SA-137 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
KEELEY LORD ABBETT JANUS ADVISER SMALL CAP SMALL-CAP WORLDWIDE FUND VALUE FUND BLEND FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $3,212 $(1,967) $(1,754) Net realized gain (loss) on security transactions 2,426 (7,496) (350) Net realized gain on distributions -- 8 17,131 Net unrealized appreciation (depreciation) of investments during the year 21,874 56,176 (3,090) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 27,512 46,721 11,937 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 36,527 506,960 228,660 Net transfers 42,812 220,008 137,901 Surrenders for benefit payments and fees (961) (22,764) (10,838) Net loan activity -- (12) (20) ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions 78,378 704,192 355,703 ---------- ---------- ---------- Net increase (decrease) in net assets 105,890 750,913 367,640 NET ASSETS: Beginning of year 138,586 39,500 16,921 ---------- ---------- ---------- End of year $244,476 $790,413 $384,561 ========== ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-138
MASSACHUSETTS LEGG MASON INVESTORS GROWTH MFS CAPITAL MFS HIGH VALUE FUND STOCK FUND OPPORTUNITIES FUND INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,938) $(10,408) $(4,830) $29,140 Net realized gain (loss) on security transactions 3,150 77,498 196,707 (3,771) Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 54,278 48,815 (86,015) 15,822 ---------- ------------ ---------- ----------- Net increase (decrease) in net assets resulting from operations 55,490 115,905 105,862 41,191 ---------- ------------ ---------- ----------- UNIT TRANSACTIONS: Purchases 393,469 545,495 89,583 132,206 Net transfers 147,401 (55,468) (75,031) (10,149) Surrenders for benefit payments and fees (129) (917,498) (16,888) (147,317) Net loan activity -- (19) (9) (11) ---------- ------------ ---------- ----------- Net increase (decrease) in net assets resulting from unit transactions 540,741 (427,490) (2,345) (25,271) ---------- ------------ ---------- ----------- Net increase (decrease) in net assets 596,231 (311,585) 103,517 15,920 NET ASSETS: Beginning of year 496 1,928,567 771,164 488,426 ---------- ------------ ---------- ----------- End of year $596,727 $1,616,982 $874,681 $504,346 ========== ============ ========== =========== MFS INTERNATIONAL NEW MFS MID CAP MFS DISCOVERY FUND GROWTH FUND UTILITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $562 $(4,641) $17,409 Net realized gain (loss) on security transactions 310 5,698 114,242 Net realized gain on distributions 10,338 -- -- Net unrealized appreciation (depreciation) of investments during the year 2,170 4,612 214,849 ---------- ---------- ------------ Net increase (decrease) in net assets resulting from operations 13,380 5,669 346,500 ---------- ---------- ------------ UNIT TRANSACTIONS: Purchases 28,537 78,947 244,640 Net transfers 76,495 (26,884) 22,033 Surrenders for benefit payments and fees (263) (89,651) (12,827) Net loan activity -- -- (5) ---------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions 104,769 (37,588) 253,841 ---------- ---------- ------------ Net increase (decrease) in net assets 118,149 (31,919) 600,341 NET ASSETS: Beginning of year 2,170 612,579 1,028,827 ---------- ---------- ------------ End of year $120,319 $580,660 $1,629,168 ========== ========== ============
SA-139 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
BLACKROCK MUNDER MFS MID CAP VALUE MIDCAP CORE VALUE FUND OPPORTUNITIES FUND INC. GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT (C)(G) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $9,673 $(2) $(393) Net realized gain (loss) on security transactions 105,463 -- (947) Net realized gain on distributions 48,236 96 -- Net unrealized appreciation (depreciation) of investments during the year 118,327 (95) 8,504 ------------ ------- ---------- Net increase (decrease) in net assets resulting from operations 281,699 (1) 7,164 ------------ ------- ---------- UNIT TRANSACTIONS: Purchases 198,590 1,331 71,837 Net transfers 51,751 -- 17,638 Surrenders for benefit payments and fees (348,319) (11) (802) Net loan activity (39) -- (19) ------------ ------- ---------- Net increase (decrease) in net assets resulting from unit transactions (98,017) 1,320 88,654 ------------ ------- ---------- Net increase (decrease) in net assets 183,682 1,319 95,818 NET ASSETS: Beginning of year 1,507,487 -- 39,890 ------------ ------- ---------- End of year $1,691,169 $1,319 $135,708 ============ ======= ==========
(c) From inception, June 21, 2006 to December 31, 2006. (g) Formerly Merrill Lynch Mid Cap Value Opportunities Fund. Change effective October 2, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-140
NEUBERGER BERMAN OAKMARK OPPENHEIMER SOCIALLY INTERNATIONAL CAPITAL OPPENHEIMER RESPONSIVE FUND SMALL CAP FUND APPRECIATION FUND GLOBAL FUND SUB-ACCOUNT (F) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(65) $39,760 $(12,016) $2,342 Net realized gain (loss) on security transactions 575 (40) 149,353 143,197 Net realized gain on distributions 205 280,635 -- 192,549 Net unrealized appreciation (depreciation) of investments during the year 1,240 220,728 (29,240) 140,538 --------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,955 541,083 108,097 478,626 --------- ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 20,962 406,539 291,862 587,750 Net transfers 146 (39,883) (141,519) 32,105 Surrenders for benefit payments and fees (522) (108,353) (56,862) (149,961) Net loan activity -- (6) (25) (55) --------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 20,586 258,297 93,456 469,839 --------- ------------ ------------ ------------ Net increase (decrease) in net assets 22,541 799,380 201,553 948,465 NET ASSETS: Beginning of year -- 1,436,106 1,543,770 2,550,541 --------- ------------ ------------ ------------ End of year $22,541 $2,235,486 $1,745,323 $3,499,006 ========= ============ ============ ============ OPPENHEIMER OPPENHEIMER OPPENHEIMER DEVELOPING INTERNATIONAL MAIN STREET MARKETS FUND BOND FUND OPPORTUNITY FUND SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT (C) - ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $6,621 $3 $3 Net realized gain (loss) on security transactions 3,314 -- -- Net realized gain on distributions 73,088 3 36 Net unrealized appreciation (depreciation) of investments during the year 54,584 11 (23) ---------- ------- ------- Net increase (decrease) in net assets resulting from operations 137,607 17 16 ---------- ------- ------- UNIT TRANSACTIONS: Purchases 614,727 1,249 1,259 Net transfers 149,509 -- -- Surrenders for benefit payments and fees (34,993) (7) (9) Net loan activity (48) -- -- ---------- ------- ------- Net increase (decrease) in net assets resulting from unit transactions 729,195 1,242 1,250 ---------- ------- ------- Net increase (decrease) in net assets 866,802 1,259 1,266 NET ASSETS: Beginning of year 75,722 -- -- ---------- ------- ------- End of year $942,524 $1,259 $1,266 ========== ======= =======
(c) From inception, June 21, 2006 to December 31, 2006. (f) Funded as of January 12, 2006. SA-141 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
PIONEER PUTNAM PIMCO MID CAP INTERNATIONAL REAL RETURN FUND VALUE FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT - ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $10,026 $1 $36,290 Net realized gain (loss) on security transactions 5,431 -- (160) Net realized gain on distributions 5,517 21 87,333 Net unrealized appreciation (depreciation) of investments during the year (18,693) (22) 269,900 ---------- ----- ------------ Net increase (decrease) in net assets resulting from operations 2,281 -- 393,363 ---------- ----- ------------ UNIT TRANSACTIONS: Purchases 771,052 648 332,174 Net transfers 33,738 -- 124,114 Surrenders for benefit payments and fees (2,081) (2) (89,257) Net loan activity (21) -- (7) ---------- ----- ------------ Net increase (decrease) in net assets resulting from unit transactions 802,688 646 367,024 ---------- ----- ------------ Net increase (decrease) in net assets 804,969 646 760,387 NET ASSETS: Beginning of year 8,501 -- 1,249,886 ---------- ----- ------------ End of year $813,470 $646 $2,010,273 ========== ===== ============
(c) From inception, June 21, 2006 to December 31, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-142
PUTNAM SSGA SMALL CAP ROYCE VALUE S&P 500 THORNBURG GROWTH FUND PLUS FUND INDEX FUND VALUE FUND SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) - ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1) $(875) $5,933 $ -- Net realized gain (loss) on security transactions -- (5,970) 2,662 -- Net realized gain on distributions 25 5,348 -- 3 Net unrealized appreciation (depreciation) of investments during the year (20) 29,442 55,320 -- ----- ---------- ---------- ----- Net increase (decrease) in net assets resulting from operations 4 27,945 63,915 3 ----- ---------- ---------- ----- UNIT TRANSACTIONS: Purchases 620 221,342 237,471 262 Net transfers -- 26,375 315,097 -- Surrenders for benefit payments and fees (4) (12,150) (36,640) (2) Net loan activity -- (16) (11) -- ----- ---------- ---------- ----- Net increase (decrease) in net assets resulting from unit transactions 616 235,551 515,917 260 ----- ---------- ---------- ----- Net increase (decrease) in net assets 620 263,496 579,832 263 NET ASSETS: Beginning of year -- 48,682 23,266 -- ----- ---------- ---------- ----- End of year $620 $312,178 $603,098 $263 ===== ========== ========== ===== VICTORY VICTORY DIVERSIFIED SPECIAL VAN KAMPEN STOCK FUND VALUE FUND COMSTOCK FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT - ----------------------------- -------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(33) $(45) $3,516 Net realized gain (loss) on security transactions -- 383 (97) Net realized gain on distributions 1,466 841 16,934 Net unrealized appreciation (depreciation) of investments during the year 783 1,788 10,707 --------- --------- ---------- Net increase (decrease) in net assets resulting from operations 2,216 2,967 31,060 --------- --------- ---------- UNIT TRANSACTIONS: Purchases 6,599 13,656 215,104 Net transfers 17,300 40,864 628,046 Surrenders for benefit payments and fees (3) (1,016) (14,536) Net loan activity -- -- (24) --------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 23,896 53,504 828,590 --------- --------- ---------- Net increase (decrease) in net assets 26,112 56,471 859,650 NET ASSETS: Beginning of year 2,193 7,238 16,980 --------- --------- ---------- End of year $28,305 $63,709 $876,630 ========= ========= ==========
(c) From inception, June 21, 2006 to December 31, 2006. SA-143 [This page intentionally left blank] SA-145 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006
VAN KAMPEN VAN KAMPEN EQUITY AND REAL ESTATE INCOME FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT (C) - ----------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $190,712 $ -- Net realized gain (loss) on security transactions 13,332 -- Net realized gain on distributions 557,549 25 Net unrealized appreciation (depreciation) of investments during the year 548,253 (9) ------------- ----- Net increase (decrease) in net assets resulting from operations 1,309,846 16 ------------- ----- UNIT TRANSACTIONS: Purchases 2,870,681 724 Net transfers 1,068,373 -- Surrenders for benefit payments and fees (805,603) (6) Net loan activity (187) -- ------------- ----- Net increase (decrease) in net assets resulting from unit transactions 3,133,264 718 ------------- ----- Net increase (decrease) in net assets 4,443,110 734 NET ASSETS: Beginning of year 9,462,110 -- ------------- ----- End of year $13,905,220 $734 ============= =====
(c) From inception, June 21, 2006 to December 31, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-144 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 1. ORGANIZATION: Separate Account Eleven (the "Account") is a separate investment account within Hartford Life Insurance Company (the "Company") and is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company Act of 1940, as amended. Both the Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The Account invests deposits by variable annuity contract owners of the Company in various mutual funds (the "Funds") as directed by the contract owners. The Account invests in the following sub-accounts (collectively, the "Sub-Accounts"): the American Century Equity Income Fund, American Century Ultra(R) Fund, American Century Small Cap Value Fund, American Century Large Company Value Fund, American Century VistaSM Fund, American Century Inflation-Adjusted Bond Fund, American Century Equity Growth Fund, AIM Basic Value Fund, AIM European Growth Fund, AIM International Growth Fund, AIM Mid Cap Core Equity Fund, AIM Small Cap Growth Fund, AIM Real Estate Fund, AIM Small Cap Equity Fund, Domini Social Equity Fund, AllianceBernstein Balanced Shares Fund, Al-lianceBernstein Growth and Income Fund, AllianceBernstein International Growth Fund, AllianceBernstein International Value Fund, AllianceBernstein Global Value Fund, American Funds AMCAP Fund, American Funds American Balanced Fund, American Funds Capital Income Builder Fund, American Funds EuroPacific Growth Fund, American Funds Fundamental Investors Fund, American Funds New Perspective Fund, American Funds The Bond Fund of America, American Funds The Growth Fund of America Fund, American Funds The Income Fund of America, American Funds The Investment Company of America, American Funds The New Economy Fund, American Funds Washington Mutual Investors, American Funds American Mutual Fund, American Funds Capital World Growth & Income Fund, American Funds SMALLCAP World Fund, Ariel Appreciation Fund, Ariel Fund, Artisan Mid Cap Value Fund, LifePath 2010 Portfolio, LifePath 2020 Portfolio, LifePath 2030 Portfolio, LifePath 2040 Portfolio, LifePath Retirement Portfolio, Baron Small Cap Fund, BlackRock Government Income Fund, Calvert Social Investment Fund Equity Portfolio, Calvert Large Cap Growth Fund, Calvert Social Investment Bond Fund, Columbia Marsico International Opportunities Fund, Columbia Mar-sico Growth Fund, CRM Mid Cap Value Fund, Davis Financial Fund, Davis New York Venture Fund, Davis Opportunity Fund, Dreyfus Lifetime Growth and Income Portfolio, Dreyfus Lifetime Growth Portfolio, Dreyfus Lifetime Income Portfolio, Dreyfus Pre-mier Core Bond Fund, Dreyfus MidCap Index Fund, Dreyfus SmallCap Stock Index Fund, Dreyfus Premier Small Cap Value Fund, Eaton Vance Large-Cap Value Fund, Eaton Vance Dividend Builder Fund, Eaton Vance Worldwide Health Sciences Fund, Eaton Vance Income Fund of Boston, Alger Capital Appreciation Institutional Portfolio, Alger MidCap Growth Institutional Fund, Fidelity Advisor Equity Growth Fund, Fidelity Advisor Value Strategies Fund, Federated Fund for U.S. Government Securities Fund, Federated Mid Cap Growth Strategies Fund, Federated Kaufman Fund, Federated Short-Term Income Fund, Templeton Developing Markets Trust, Franklin High Income Fund, Templeton Global Bond Fund, Franklin Small Cap Value Fund, Mutual Discovery Fund, Templeton Growth Fund, Franklin Income Fund, Franklin Capital Growth Fund, Franklin Balance Sheet Investment Fund, Mutual Beacon Fund, Franklin Mutual Shares Fund, Franklin Small-Mid Cap Growth Fund, Franklin Templeton Conservative Target, Franklin Templeton Growth Target Fund, Franklin Templeton Moderate Target Fund, Templeton Foreign Fund, GE Premier Growth Equity Fund, Goldman Sachs Capital Growth Fund, Goldman Sachs Core Fixed Income Fund, Goldman Sachs Government Income Fund, Goldman Sachs Growth & Income Fund, Goldman Sachs Growth Opportunities Fund, Goldman Sachs Mid Cap Value Fund, Goldman Sachs Small Cap Value Fund, Goldman Sachs High Yield Fund, John Hancock Small Cap Equity Fund, Hartford Advisers HLS Fund, Hartford LargeCap Growth HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Global Advisers HLS Fund, Hartford Global Communications HLS Fund, Hartford Global Health HLS Fund, Hartford Global Growth HLS Fund, Hartford Global Technology HLS Fund, Hartford Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford Index HLS Fund, Hartford International Growth HLS Fund, Hartford International Oppor-tunities HLS Fund, Hartford MidCap HLS Fund, Hartford Money Market HLS Fund, Hartford Mortgage Securities HLS Fund, Hartford Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Stock HLS Fund, Hartford Value Opportunities HLS Fund, Hotchkis and Wiley Large Cap Value Fund, AIM Financial Services Fund, AIM Leisure Fund, AIM Technology Fund, Ivy Global Natural Resources Fund, Janus Adviser Forty Fund, Janus Adviser International Growth Fund, Janus Adviser Worldwide Fund, Keeley Small Cap Value Fund, Lord Abbett Affiliated Fund, Lord Abbett All Value Fund, Lord Abbett Bond Debenture Fund, Lord SA-146 Abbett America's Value Fund, Lord Abbett Small Cap Blend Fund, Lord Abbett International Core Equity Fund, Legg Mason Value Fund, Marshall Mid-Cap Value Fund, Massachusetts Investors Growth Stock Fund, MFS High Income Fund, MFS International New Discovery Fund, MFS Mid Cap Growth Fund, MFS Strategic Value Fund, MFS Total Return Fund, MFS Utilities Fund, MFS Value Fund, MFS Research Bond Fund, MFS Core Equity Fund, BlackRock Global Allocation Fund, BlackRock Global Financial Services Fund, BlackRock Large Cap Core Fund, BlackRock Value Opportunities Fund, BlackRock Small Cap Growth Fund, BlackRock Mid Cap Value Opportunities Fund, Munder MidCap Core Growth Fund, Neuberger Berman Socially Responsive Fund, Oakmark International Small Cap Fund, Oppenheimer Capital Appreciation Fund, Oppenheimer Global Fund, Oppenheimer International Growth Fund, Oppenheimer Main Street Small Cap Fund, Oppenheimer Developing Markets Fund, Oppenheimer Equity Fund, Oppenheimer International Bond Fund, Oppenheimer Small- & Mid- Cap Value Fund, Oppenheimer Main Street Opportunity Fund, Oppenheimer Gold & Special Metals Fund, PIMCO Total Return, PIMCO Emerging Markets Bond Fund, PIMCO Real Return Fund, Pioneer High Yield Fund, Pioneer Small Cap Value Fund, Pioneer Strategic Income Fund, Pioneer Mid Cap Value Fund, Putnam International Equity Fund, Putnam Investors Fund, Putnam Vista Fund, Putnam Small Cap Growth Fund, Royce Value Plus Fund, Legg Mason Partners Small Cap Growth Fund, DWS Dreman High Return Equity Fund, SSGA S&P 500 Index Fund, DWS Global Thematic Fund, Legg Mason Partners Aggressive Growth Fund, BlackRock Small/Mid-Cap Growth Fund, Thornburg International Value Fund, Thornburg Value Fund, Thornburg Core Growth Fund, Victory Diversified Stock Fund, Victory Special Value Fund, Van Kampen Small Cap Growth Fund, Van Kampen Comstock Fund, Van Kampen Equity and Income Fund, Van Kampen Growth and Income Fund, Van Kampen Mid Cap Growth Fund, Van Kampen Real Estate Securities Fund, Seligman Communications and Information Fund, and Legg Mason Partners Small Cap Value Fund. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Account, which are in accordance with accounting principles generally accepted in the United States of America: a) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sales of securities are computed using the last in first out method. Dividend and net realized gain on distri-butions income is accrued as of the ex-dividend date. Net realized gain on distributions income represents dividends from the Funds, which are characterized as capital gains under tax regulations. b) SECURITY VALUATION -- The investments in shares of the Funds are valued at the closing net asset value per share as determined by the appropriate Fund as of December 31, 2007. c) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values calculated at the close of the business day. d) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and are taxed with, the total operations of the Company, which is taxed as an insurance company under the Internal Revenue Code. Under current law, no federal income taxes are payable with respect to the operations of the Account. e) USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Operating results in the future could vary from the amounts derived from management's estimates. f) MORTALITY RISK -- Net assets allocated to contracts in the annuity period are computed according to the 1983a Individual Annuitant Mortality Table and the Annuity 2000 Table. The Mortality Risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. g) RECLASSIFICATIONS -- Certain reclassifications have been made to the December 31, 2006 Statements of Changes in Net Assets to conform to the current year presentation. SA-147 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 h) FAIR VALUE MEASUREMENTS -- In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"). This statement defines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States, and enhances disclosures about fair value measurements. The definition focuses on the price that would be re-ceived to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). SFAS 157 provides guidance on how to measure fair value when required under existing accounting standards. SFAS 157 is effective for fiscal years beginning after November 15, 2007, with earlier application encouraged only in the initial quarter of an entity's fiscal year. The Account will adopt SFAS 157 on January 1, 2008. Adoption of this statement is not expected to have a material impact on the Account's financial statements. i) ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109 -- In July 2006, the FASB released "Accounting for Uncertainty in Income Taxes" ("FIN 48") to clarify accounting for income taxes recognized in the financial statements in accordance with FASB 109, "Accounting for Income Taxes." FIN 48 is effective for fiscal years beginning after December 15, 2006 and prescribes a comprehensive model for how an entity should recognize, measure, present and disclose in its financial statements uncertain tax positions that the entity has taken or expect to take on a tax return. Upon adoption, as of the first quarter of 2007, FIN 48 did not have an effect on the Account's financial condition. 3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES: Certain amounts are deducted from the contracts, as described below: a) MORTALITY AND EXPENSE RISK CHARGES -- The Company, as issuer of variable annuity contracts, provides the mortality and expense undertakings and, with respect to the Account, receives a maximum annual fee of up to 1.25% of the Account's average daily net assets. b) TAX EXPENSE CHARGE -- If applicable,the Company will make deductions at a maximum rate of 3.5% of the contract's value to meet premium tax requirements. An additional tax charge based on a percentage of the contract's value may be assessed on partial withdrawals or surrenders. These expenses are included in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. c) ANNUAL MAINTENANCE FEE -- An annual maintenance fee in the amount of $30 may be charged against from the contract's value each contract year. These expenses are included in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. 4. PURCHASES AND SALES OF INVESTMENTS: The cost of purchases and proceeds from sales of investments for the year ended December 31, 2007 were as follows:
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES - -------------------------------------------------------------------------------- American Century Equity Income Fund $2,473,757 $1,842,783 American Century Ultra(R) Fund 9,129 1,951 American Century Small Cap Value Fund 13,708 5,337 American Century Large Company Value Fund 492 67 American Century VistaSM Fund 47,907 12,735 American Century Inflation-Adjusted Bond Fund 8,923 49 American Century Equity Growth Fund 73 1 AIM Basic Value Fund 837,566 669,582 AIM European Growth Fund 202,830 11,250 AIM International Growth Fund 69,175 487 AIM Mid Cap Core Equity Fund 83,197 102 AIM Small Cap Growth Fund 194,738 97,052 AIM Real Estate Fund 1,132,973 237,079 AIM Small Cap Equity Fund 83 1 Domini Social Equity Fund 3,072 1,497
SA-148
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES - -------------------------------------------------------------------------------- AllianceBernstein Balanced Shares Fund $218,024 $129,390 AllianceBernstein Growth and Income Fund 122 3 AllianceBernstein International Growth Fund 166,724 2,115 AllianceBernstein International Value Fund 2,719,073 1,262,013 AllianceBernstein Global Value Fund 98,574 69,204 American Funds AMCAP Fund 29,314 3,032 American Funds American Balanced Fund 46,537 514 American Funds Capital Income Builder Fund 3,534,905 260,323 American Funds EuroPacific Growth Fund 2,250,259 492,406 American Funds Fundamental Investors Fund 606,985 230,182 American Funds New Perspective Fund 109,406 3,046 American Funds The Bond Fund of America 670,321 279,137 American Funds The Growth Fund of America Fund 8,019,619 2,749,748 American Funds The Income Fund of America 1,034,321 53,052 American Funds The Investment Company of America 331,990 25,830 American Funds The New Economy Fund 725,829 263,605 American Funds Washington Mutual Investors 35,803 3,660 American Funds American Mutual Fund 8,023 419 American Funds Capital World Growth & Income Fund 3,791,113 560,134 American Funds SMALLCAP World Fund 452,789 249,380 Ariel Appreciation Fund 23,902 5,529 Ariel Fund 20,077 9,983 Artisan Mid Cap Value Fund 414,890 155,433 LifePath 2010 Portfolio 1,096,953 71,975 LifePath 2020 Portfolio 1,699,039 170,679 LifePath 2030 Portfolio 1,944,055 291,017 LifePath 2040 Portfolio 1,347,389 60,627 LifePath Retirement Portfolio 113,902 28,689 Baron Small Cap Fund 34,288 52,884 BlackRock Government Income Fund 10,448 39 Calvert Social Investment Fund Equity Portfolio 134,689 3,354 Calvert Large Cap Growth Fund 48,165 44,331 Calvert Social Investment Bond Fund 49,269 921 Columbia Marsico International Opportunities Fund 18,596 1,047 Columbia Marsico Growth Fund 101,315 25,837 CRM Mid Cap Value Fund 133,445 93,195 Davis Financial Fund 294 2 Davis New York Venture Fund 1,856,602 363,085 Davis Opportunity Fund 357,429 264,232 Dreyfus Lifetime Growth and Income Portfolio 156,946 66,210 Dreyfus Lifetime Growth Portfolio 100,701 56,004 Dreyfus Lifetime Income Portfolio 20,007 12,041 Dreyfus Premier Core Bond Fund 311,216 99,881 Dreyfus MidCap Index Fund 61,546 70,783 Dreyfus SmallCap Stock Index Fund 19,909 11,679 Dreyfus Premier Small Cap Value Fund 1 878 Eaton Vance Large-Cap Value Fund 284,653 2,856 Eaton Vance Dividend Builder Fund 54,078 3,667
SA-149 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES - -------------------------------------------------------------------------------- Eaton Vance Worldwide Health Sciences Fund $1,527 $6 Eaton Vance Income Fund of Boston 302,578 2,409 Alger Capital Appreciation Institutional Portfolio 230,130 14,503 Alger MidCap Growth Institutional Fund 288,280 1,519 Fidelity Advisor Equity Growth Fund 13,379 628 Fidelity Advisor Value Strategies Fund 371,495 149,878 Federated Fund for U.S. Government Securities Fund 5,789 10 Federated Mid Cap Growth Strategies Fund 215 -- Federated Kaufman Fund 311,480 13,011 Federated Short-Term Income Fund 90,138 103,604 Templeton Developing Markets Trust 560,470 21,824 Franklin High Income Fund 16,655 96 Templeton Global Bond Fund 320,600 267,850 Franklin Small Cap Value Fund 557,374 128,390 Mutual Discovery Fund 1,086,395 238,527 Templeton Growth Fund 1,217,661 434,781 Franklin Income Fund 1,409,510 288,332 Franklin Capital Growth Fund 86 3 Franklin Balance Sheet Investment Fund 1,491,054 792,700 Mutual Beacon Fund 628,499 123,635 Franklin Mutual Shares Fund 1,468,151 467,919 Franklin Small-Mid Cap Growth Fund 675,696 253,085 Franklin Templeton Conservative Target 280,295 269,478 Franklin Templeton Growth Target Fund 410,494 265,331 Franklin Templeton Moderate Target Fund 716,348 271,312 Templeton Foreign Fund 4,914,086 4,412,122 GE Premier Growth Equity Fund 8,519 208 Goldman Sachs Capital Growth Fund 2,125 85 Goldman Sachs Core Fixed Income Fund 1,943 32 Goldman Sachs Government Income Fund 22,006 65 Goldman Sachs Growth & Income Fund 1,049,346 217,796 Goldman Sachs Growth Opportunities Fund 5,504 852 Goldman Sachs Mid Cap Value Fund 5,628,996 2,726,335 Goldman Sachs Small Cap Value Fund 538,588 268,530 Goldman Sachs High Yield Fund 177,972 60,230 John Hancock Small Cap Equity Fund 343,477 477,901 Hartford Advisers HLS Fund 1,322,216 405,598 Hartford LargeCap Growth HLS Fund 413,415 330,189 Hartford Total Return Bond HLS Fund 4,063,135 1,930,460 Hartford Capital Appreciation HLS Fund 8,498,853 3,482,949 Hartford Dividend and Growth HLS Fund 2,914,799 1,847,829 Hartford Global Advisers HLS Fund 32,698 3,963 Hartford Global Communications HLS Fund 189 3 Hartford Global Health HLS Fund 381,739 136,915 Hartford Global Growth HLS Fund 121 2 Hartford Global Technology HLS Fund 143,830 44,842 Hartford Growth HLS Fund 132,501 16,488 Hartford Growth Opportunities HLS Fund 378,153 8,268
SA-150
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES - -------------------------------------------------------------------------------- Hartford Index HLS Fund $1,784,984 $877,240 Hartford International Growth HLS Fund 67,562 46,026 Hartford International Opportunities HLS Fund 1,804 7 Hartford MidCap HLS Fund 3,067,733 1,913,133 Hartford Money Market HLS Fund 8,415,988 5,754,950 Hartford Mortgage Securities HLS Fund 169,048 155,738 Hartford Small Company HLS Fund 1,039,351 1,226,101 Hartford SmallCap Growth HLS Fund 28,617 6,306 Hartford Stock HLS Fund 1,172,519 751,463 Hartford Value Opportunities HLS Fund 897,769 85,372 Hotchkis and Wiley Large Cap Value Fund 472,876 218,930 AIM Financial Services Fund 195,928 120,760 AIM Leisure Fund 279,615 213,375 AIM Technology Fund 109,058 65,647 Ivy Global Natural Resources Fund 491,971 694 Janus Adviser Forty Fund 632,017 216,411 Janus Adviser International Growth Fund 1,870,712 861,059 Janus Adviser Worldwide Fund 141,388 156,410 Keeley Small Cap Value Fund 1,344,602 740,244 Lord Abbett Affiliated Fund 12,366 92 Lord Abbett All Value Fund 297,832 271,729 Lord Abbett Bond Debenture Fund 56,465 94 Lord Abbett America's Value Fund 41 1 Lord Abbett Small Cap Blend Fund 465,577 97,242 Lord Abbett International Core Equity Fund 43 -- Legg Mason Value Fund 238,437 219,848 Marshall Mid-Cap Value Fund 132,968 44,210 Massachusetts Investors Growth Stock Fund 413,569 329,154 MFS High Income Fund 229,983 107,518 MFS International New Discovery Fund 114,356 20,603 MFS Mid Cap Growth Fund 94,344 93,576 MFS Strategic Value Fund 33,688 188 MFS Total Return Fund 1,948 143 MFS Utilities Fund 1,568,270 501,634 MFS Value Fund 570,465 400,768 MFS Research Bond Fund 13,204 6 MFS Core Equity Fund 1,146,763 1,077,361 BlackRock Global Allocation Fund 1,656,085 64,111 BlackRock Global Financial Services Fund 171,100 884 BlackRock Large Cap Core Fund 291,003 7,607 BlackRock Value Opportunities Fund 11,261 6,435 BlackRock Small Cap Growth Fund 83,922 2,814 BlackRock Mid Cap Value Opportunities Fund 26,636 1,238 Munder MidCap Core Growth Fund 171,405 30,232 Neuberger Berman Socially Responsive Fund 30,443 1,180 Oakmark International Small Cap Fund 1,091,618 471,899 Oppenheimer Capital Appreciation Fund 314,812 324,995 Oppenheimer Global Fund 999,832 715,458
SA-151 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES - -------------------------------------------------------------------------------- Oppenheimer International Growth Fund $8,702 $33 Oppenheimer Main Street Small Cap Fund 389,765 18,623 Oppenheimer Developing Markets Fund 604,228 222,314 Oppenheimer Equity Fund 1,807 7 Oppenheimer International Bond Fund 302,424 6,553 Oppenheimer Small- & Mid- Cap Value Fund 618,869 9,203 Oppenheimer Main Street Opportunity Fund 146,939 1,374 Oppenheimer Gold & Special Metals Fund 123,070 5,524 PIMCO Total Return 216,140 2,960 PIMCO Emerging Markets Bond Fund 184,306 3,087 PIMCO Real Return Fund 776,201 178,917 Pioneer High Yield Fund 135,808 26,537 Pioneer Small Cap Value Fund 101,051 2,456 Pioneer Strategic Income Fund 322,971 2,633 Pioneer Mid Cap Value Fund 8,120 65 Putnam International Equity Fund 1,214,900 255,629 Putnam Investors Fund 34 -- Putnam Vista Fund 264 4 Putnam Small Cap Growth Fund 2,091 114 Royce Value Plus Fund 600,685 283,886 Legg Mason Partners Small Cap Growth Fund 11,619 6,624 DWS Dreman High Return Equity Fund 189,388 7,320 SSGA S&P 500 Index Fund 288,022 122,767 DWS Global Thematic Fund 155,102 1,263 Legg Mason Partners Aggressive Growth Fund 86,653 1,826 BlackRock Small/Mid-Cap Growth Fund 2,323 9 Thornburg International Value Fund 463,798 12,426 Thornburg Value Fund 188,626 3,993 Thornburg Core Growth Fund 513,784 65,010 Victory Diversified Stock Fund 81,192 5,055 Victory Special Value Fund 462,983 29,503 Van Kampen Small Cap Growth Fund 64,142 98 Van Kampen Comstock Fund 7,975,899 4,881,602 Van Kampen Equity and Income Fund 11,576,806 6,495,349 Van Kampen Growth and Income Fund 120,034 677 Van Kampen Mid Cap Growth Fund 8,861 42 Van Kampen Real Estate Securities Fund 115,066 4,317 Seligman Communications and Information Fund 8,452 2,846 Legg Mason Partners Small Cap Value Fund 1,250 5 --------------- -------------- $144,264,021 $62,826,054 =============== ==============
SA-152 5. CHANGES IN UNITS OUTSTANDING: The changes in units outstanding for the year ended December 31, 2007 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- American Century Equity 112,093 114,992 (2,899) Income Fund American Century Ultra(R) 552 192 360 Fund American Century Small Cap 679 360 319 Value Fund American Century Large 39 6 33 Company Value Fund American Century Vista(SM) 2,710 815 1,895 Fund American Century 855 1 854 Inflation-Adjusted Bond Fund American Century Equity 6 -- 6 Growth Fund AIM Basic Value Fund 39,160 53,262 (14,102) AIM European Growth Fund 16,692 779 15,913 AIM International Growth 4,378 30 4,348 Fund AIM Mid Cap Core Equity 6,620 -- 6,620 Fund AIM Small Cap Growth Fund 12,536 8,406 4,130 AIM Real Estate Fund 34,070 9,401 24,669 AIM Small Cap Equity Fund 7 -- 7 Domini Social Equity Fund 247 127 120 AllianceBernstein Balanced 12,957 7,618 5,339 Shares Fund AllianceBernstein Growth 9 -- 9 and Income Fund AllianceBernstein 12,381 187 12,194 International Growth Fund AllianceBernstein 154,264 81,711 72,553 International Value Fund AllianceBernstein Global 6,483 4,715 1,768 Value Fund American Funds AMCAP Fund 2,508 307 2,201 American Funds American 3,892 44 3,848 Balanced Fund American Funds Capital 279,916 21,970 257,946 Income Builder Fund American Funds EuroPacific 105,495 26,000 79,495 Growth Fund American Funds Fundamental 47,719 19,018 28,701 Investors Fund American Funds New 8,304 241 8,063 Perspective Fund American Funds The Bond 63,571 26,892 36,679 Fund of America American Funds The Growth 492,768 200,325 292,443 Fund of America Fund American Funds The Income 92,175 4,826 87,349 Fund of America American Funds The 27,002 2,520 24,482 Investment Company of America American Funds The New 60,182 21,547 38,635 Economy Fund American Funds Washington 2,922 322 2,600 Mutual Investors American Funds American 664 41 623 Mutual Fund American Funds Capital 208,255 37,177 171,078 World Growth & Income Fund American Funds SMALLCAP 32,318 18,740 13,578 World Fund Ariel Appreciation Fund 1,541 497 1,044 Ariel Fund 1,357 728 629 Artisan Mid Cap Value Fund 24,170 12,143 12,027 LifePath 2010 Portfolio 99,169 6,422 92,747 LifePath 2020 Portfolio 147,182 16,805 130,377 LifePath 2030 Portfolio 166,742 27,011 139,731 LifePath 2040 Portfolio 117,509 5,026 112,483 LifePath Retirement 7,786 505 7,281 Portfolio Baron Small Cap Fund 2,361 4,095 (1,734) BlackRock Government Income 1,007 3 1,004 Fund
SA-153 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- Calvert Social Investment 9,694 208 9,486 Fund Equity Portfolio Calvert Large Cap Growth 3,975 3,787 188 Fund Calvert Social Investment 4,597 83 4,514 Bond Fund Columbia Marsico 1,259 72 1,187 International Opportunities Fund Columbia Marsico Growth 7,993 2,030 5,963 Fund CRM Mid Cap Value Fund 8,956 7,154 1,802 Davis Financial Fund 22 -- 22 Davis New York Venture Fund 117,543 23,580 93,963 Davis Opportunity Fund 30,681 23,596 7,085 Dreyfus Lifetime Growth and 9,237 5,119 4,118 Income Portfolio Dreyfus Lifetime Growth 5,969 4,150 1,819 Portfolio Dreyfus Lifetime Income 1,121 961 160 Portfolio Dreyfus Premier Core Bond 20,918 8,303 12,615 Fund Dreyfus MidCap Index Fund 3,429 5,601 (2,172) Dreyfus SmallCap Stock 1,089 936 154 Index Fund Dreyfus Premier Small Cap -- 74 (74) Value Fund Eaton Vance Large-Cap Value 27,873 234 27,639 Fund Eaton Vance Dividend 4,079 243 3,836 Builder Fund Eaton Vance Worldwide 115 -- 115 Health Sciences Fund Eaton Vance Income Fund of 29,772 222 29,550 Boston Alger Capital Appreciation 20,508 1,228 19,280 Institutional Portfolio Alger MidCap Growth 22,023 87 21,936 Institutional Fund Fidelity Advisor Equity 964 54 910 Growth Fund Fidelity Advisor Value 14,872 9,176 5,696 Strategies Fund Federated Fund for U.S. 531 -- 531 Government Securities Fund Federated Mid Cap Growth 17 -- 17 Strategies Fund Federated Kaufman Fund 23,684 1,026 22,658 Federated Short-Term Income 7,485 9,161 (1,676) Fund Templeton Developing 37,967 1,690 36,277 Markets Trust Franklin High Income Fund 1,499 6 1,493 Templeton Global Bond Fund 28,690 24,129 4,561 Franklin Small Cap Value 37,470 8,975 28,495 Fund Mutual Discovery Fund 82,632 18,875 63,757 Templeton Growth Fund 73,291 28,749 44,542 Franklin Income Fund 118,561 25,274 93,287 Franklin Capital Growth 7 -- 7 Fund Franklin Balance Sheet 58,192 44,608 13,584 Investment Fund Mutual Beacon Fund 57,000 12,296 44,704 Franklin Mutual Shares Fund 81,314 31,031 50,283 Franklin Small-Mid Cap 32,027 18,412 13,615 Growth Fund Franklin Templeton 24,992 24,134 858 Conservative Target Franklin Templeton Growth 34,303 22,654 11,649 Target Fund Franklin Templeton Moderate 61,315 23,878 37,437 Target Fund Templeton Foreign Fund 206,817 218,387 (11,570) GE Premier Growth Equity 634 15 619 Fund Goldman Sachs Capital 188 6 182 Growth Fund Goldman Sachs Core Fixed 181 3 178 Income Fund Goldman Sachs Government 2,044 3 2,041 Income Fund
SA-154
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- Goldman Sachs Growth & 81,027 18,572 62,455 Income Fund Goldman Sachs Growth 418 67 351 Opportunities Fund Goldman Sachs Mid Cap Value 247,341 147,982 99,359 Fund Goldman Sachs Small Cap 47,943 24,700 23,243 Value Fund Goldman Sachs High Yield 14,477 5,357 9,120 Fund John Hancock Small Cap 30,082 40,027 (9,945) Equity Fund Hartford Advisers HLS Fund 54,975 38,518 16,457 Hartford LargeCap Growth 39,542 31,286 8,256 HLS Fund Hartford Total Return Bond 345,361 205,163 140,198 HLS Fund Hartford Capital 237,215 182,467 54,748 Appreciation HLS Fund Hartford Dividend and 247,744 320,874 (73,130) Growth HLS Fund Hartford Global Advisers 9,439 269 9,170 HLS Fund Hartford Global 12 -- 12 Communications HLS Fund Hartford Global Health HLS 15,898 7,141 8,757 Fund Hartford Global Growth HLS 8 -- 8 Fund Hartford Global Technology 17,476 6,213 11,263 HLS Fund Hartford Growth HLS Fund 9,927 1,339 8,588 Hartford Growth 24,303 566 23,737 Opportunities HLS Fund Hartford Index HLS Fund 221,424 194,438 26,986 Hartford International 3,057 2,912 145 Growth HLS Fund Hartford International 106 1 105 Opportunities HLS Fund Hartford MidCap HLS Fund 98,200 104,403 (6,203) Hartford Money Market HLS 883,786 712,386 171,400 Fund Hartford Mortgage 15,438 25,948 (10,510) Securities HLS Fund Hartford Small Company HLS 129,670 158,543 (28,873) Fund Hartford SmallCap Growth 2,299 575 1,724 HLS Fund Hartford Stock HLS Fund 44,358 59,663 (15,305) Hartford Value 60,770 6,199 54,571 Opportunities HLS Fund Hotchkis and Wiley Large 28,505 15,938 12,567 Cap Value Fund AIM Financial Services Fund 10,048 8,558 1,490 AIM Leisure Fund 15,180 13,320 1,860 AIM Technology Fund 13,139 8,281 4,858 Ivy Global Natural 34,212 27 34,185 Resources Fund Janus Adviser Forty Fund 47,759 15,981 31,778 Janus Adviser International 65,999 35,763 30,236 Growth Fund Janus Adviser Worldwide 74,974 91,311 (16,337) Fund Keeley Small Cap Value Fund 88,133 57,428 30,705 Lord Abbett Affiliated Fund 1,209 7 1,202 Lord Abbett All Value Fund 25,952 24,308 1,644 Lord Abbett Bond Debenture 5,047 2 5,045 Fund Lord Abbett America's Value 3 -- 3 Fund Lord Abbett Small Cap Blend 32,793 8,747 24,046 Fund Lord Abbett International 4 -- 4 Core Equity Fund Legg Mason Value Fund 11,568 13,634 (2,066) Marshall Mid-Cap Value Fund 12,005 4,414 7,591 Massachusetts Investors 42,359 34,900 7,459 Growth Stock Fund MFS High Income Fund 13,060 7,508 5,552 MFS International New 4,254 1,057 3,197 Discovery Fund
SA-155 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- MFS Mid Cap Growth Fund 9,576 8,954 622 MFS Strategic Value Fund 2,533 -- 2,533 MFS Total Return Fund 161 12 149 MFS Utilities Fund 87,219 27,192 60,027 MFS Value Fund 26,757 24,472 2,285 MFS Research Bond Fund 1,239 -- 1,239 MFS Core Equity Fund 109,131 128,750 (19,619) BlackRock Global Allocation 131,323 5,943 125,380 Fund BlackRock Global Financial 12,544 56 12,488 Services Fund BlackRock Large Cap Core 25,269 768 24,501 Fund BlackRock Value 1,024 597 427 Opportunities Fund BlackRock Small Cap Growth 6,520 90 6,430 Fund BlackRock Mid Cap Value 1,965 103 1,862 Opportunities Fund Munder MidCap Core Growth 12,859 2,346 10,513 Fund Neuberger Berman Socially 2,238 97 2,141 Responsive Fund Oakmark International Small 19,228 18,077 1,151 Cap Fund Oppenheimer Capital 23,128 25,744 (2,616) Appreciation Fund Oppenheimer Global Fund 40,336 38,173 2,163 Oppenheimer International 589 1 588 Growth Fund Oppenheimer Main Street 33,699 1,895 31,804 Small Cap Fund Oppenheimer Developing 10,071 5,574 4,497 Markets Fund Oppenheimer Equity Fund 132 -- 132 Oppenheimer International 25,262 548 24,714 Bond Fund Oppenheimer Small- & Mid- 51,480 766 50,714 Cap Value Fund Oppenheimer Main Street 12,439 138 12,301 Opportunity Fund Oppenheimer Gold & Special 7,500 307 7,193 Metals Fund PIMCO Total Return 20,042 343 19,699 PIMCO Emerging Markets Bond 17,122 286 16,836 Fund PIMCO Real Return Fund 62,162 16,347 45,815 Pioneer High Yield Fund 11,779 2,297 9,482 Pioneer Small Cap Value 8,558 212 8,346 Fund Pioneer Strategic Income 30,832 396 30,436 Fund Pioneer Mid Cap Value Fund 641 3 638 Putnam International Equity 43,423 18,137 25,286 Fund Putnam Investors Fund 4 -- 4 Putnam Vista Fund 23 -- 23 Putnam Small Cap Growth 152 8 144 Fund Royce Value Plus Fund 41,927 21,518 20,409 Legg Mason Partners Small 928 546 382 Cap Growth Fund DWS Dreman High Return 15,802 578 15,224 Equity Fund SSGA S&P 500 Index Fund 23,194 10,347 12,847 DWS Global Thematic Fund 12,486 83 12,403 Legg Mason Partners 8,607 175 8,432 Aggressive Growth Fund BlackRock Small/Mid-Cap 159 -- 159 Growth Fund Thornburg International 31,176 1,104 30,072 Value Fund Thornburg Value Fund 15,843 368 15,475 Thornburg Core Growth Fund 42,747 5,369 37,378 Victory Diversified Stock 5,103 327 4,776 Fund
SA-156
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- Victory Special Value Fund 32,048 2,279 29,769 Van Kampen Small Cap Growth 5,127 3 5,124 Fund Van Kampen Comstock Fund 506,013 349,327 156,686 Van Kampen Equity and 852,544 463,743 388,801 Income Fund Van Kampen Growth and 9,999 39 9,960 Income Fund Van Kampen Mid Cap Growth 626 2 624 Fund Van Kampen Real Estate 7,705 346 7,359 Securities Fund Seligman Communications and 619 207 412 Information Fund Legg Mason Partners Small 99 -- 99 Cap Value Fund
The changes in units outstanding for the year ended December 31, 2006 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- American Century Equity 198,565 131,671 66,894 Income Fund American Century Ultra(R) 1,030 1,440 (410) Fund American Century Small Cap 1,284 418 866 Value Fund American Century VistaSM 1,579 2 1,577 Fund AIM Basic Value Fund 58,139 24,944 33,195 AIM Small Cap Growth Fund 67,360 28,085 39,275 AIM Real Estate Fund 19,461 5,432 14,029 Domini Social Equity Fund 182 -- 182 AllianceBernstein Balanced 7,216 1,433 5,783 Shares Fund AllianceBernstein 27,565 258 27,307 International Value Fund AllianceBernstein Global 7,859 2,253 5,606 Value Fund American Funds EuroPacific 19,425 2,832 16,593 Growth Fund American Funds The Growth 152,822 20,501 132,321 Fund of America Fund American Funds Capital 79,951 2,274 77,677 World Growth & Income Fund American Funds Washington 27 -- 27 Mutual Investors Ariel Appreciation Fund 1,399 237 1,162 Ariel Fund 508 1 507 Artisan Mid Cap Value Fund 66,937 14,060 52,877 LifePath 2010 Portfolio 2,924 129 2,795 LifePath 2020 Portfolio 50,785 1,800 48,985 LifePath 2030 Portfolio 33,388 1,717 31,671 LifePath 2040 Portfolio 16,686 594 16,092 LifePath Retirement 2,226 106 2,120 Portfolio Baron Small Cap Fund 5,793 1,393 4,400 Calvert Social Investment 11,345 49 11,296 Fund Equity Portfolio Calvert Large Cap Growth 12,611 4,539 8,072 Fund CRM Mid Cap Value Fund 15,078 2,120 12,958 Davis New York Venture Fund 34,855 2,659 32,196 Dreyfus LifeTime Growth and 15,761 9,412 6,349 Income Portfolio Dreyfus Lifetime Growth 14,407 8,987 5,420 Portfolio Dreyfus Lifetime Income 9,653 4,000 5,653 Portfolio Dreyfus Premier Core Bond 28,606 14,916 13,690 Fund Dreyfus MidCap Index Fund 4,625 251 4,374 Dreyfus SmallCap Stock 793 -- 793 Index Fund Dreyfus Premier Small Cap 84 10 74 Value Fund
SA-157 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- Eaton Vance Large-Cap Value 4 -- 4 Fund Alger MidCap Growth 22 -- 22 Institutional Fund Fidelity Advisor Value 8,858 17,056 (8,198) Strategies Fund Federated Short-Term Income 3,775 3,213 562 Fund Franklin Small Cap Value 2,539 41 2,498 Fund Mutual Discovery Fund 135 1 134 Franklin Income Fund 51 1 50 Franklin Balance Sheet 119,899 90,022 29,877 Investment Fund Mutual Beacon 135 1 134 Franklin Mutual Shares Fund 71,777 53,028 18,749 Franklin Small-Mid Cap 68,814 48,677 20,137 Growth Fund Franklin Templeton Growth 87 -- 87 Target Fund Franklin Templeton Moderate 859 2 857 Target Fund Templeton Growth Fund 6,766 407 6,359 Templeton Foreign Fund 219,723 238,053 (18,330) GE Premier Growth Equity 106 -- 106 Fund Goldman Sachs Mid Cap Value 60,133 15,468 44,665 Fund Goldman Sachs High Yield 22,559 2,312 20,247 Fund John Hancock Small Cap 49,898 34,538 15,360 Equity Fund Hartford Advisers HLS Fund 408,491 372,619 35,872 Hartford Total Return Bond 461,502 497,362 (35,860) HLS Fund Hartford Capital 689,226 520,886 168,340 Appreciation HLS Fund Hartford Dividend and 533,816 735,503 (201,687) Growth HLS Fund Hartford Global Advisers 7,312 10 7,302 HLS Fund Hartford Global Health HLS 36,386 34,463 1,923 Fund Hartford Global Technology 17,095 14,328 2,767 HLS Fund Hartford Growth HLS Fund 6,927 1,340 5,587 Hartford Growth 3,229 23 3,206 Opportunities HLS Fund Hartford Index HLS Fund 643,815 841,824 (198,009) Hartford International 7,136 186 6,950 Capital Appreciation HLS Fund Hartford LargeCap Growth 6,648 9 6,639 HLS Fund Hartford MidCap HLS Fund 270,738 298,108 (27,370) Hartford Money Market HLS 318,526 109,771 208,755 Fund Hartford Mortgage 63,941 48,696 15,245 Securities HLS Fund Hartford Small Company HLS 396,893 823,808 (426,915) Fund Hartford SmallCap Growth 1,388 73 1,315 HLS Fund Hartford Stock HLS Fund 252,217 230,118 22,099 Hartford Value 34,689 11,966 22,723 Opportunities HLS Fund Hotchkis and Wiley Large 45,975 11,203 34,772 Cap Value Fund AIM Financial Services Fund 17,955 20,143 (2,188) AIM Leisure Fund 15,738 31,286 (15,548) AIM Small Company Growth 1,186 44,809 (43,623) Fund AIM Technology Fund 25,273 12,919 12,354 Janus Adviser Forty Fund 129,484 116,628 12,856 Janus Adviser International 87,019 31,878 55,141 Growth Fund Janus Adviser Worldwide 53,223 10,905 42,318 Fund Keeley Small Cap Value Fund 76,906 18,265 58,641 Lord Abbett Small-Cap Blend 31,142 4,438 26,704 Fund
SA-158
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) - -------------------------------------------------------------------------------- Legg Mason Value Fund 47,556 11,737 35,819 Massachusetts Investors 147,720 188,209 (40,489) Growth Stock Fund MFS Capital Opportunities 117,235 75,509 41,726 Fund MFS High Income Fund 17,192 19,214 (2,022) MFS International New 7,154 618 6,536 Discovery Fund MFS Mid Cap Growth Fund 18,526 22,585 (4,059) MFS Utilities Fund 55,692 29,282 26,410 MFS Value Fund 70,518 78,305 (7,787) BlackRock Mid Cap Value 118 1 117 Opportunities Fund Inc. Munder MidCap Core Growth 14,119 6,051 8,068 Fund Neuberger Berman Socially 2,836 981 1,855 Responsive Fund Oakmark International Small 24,421 14,201 10,220 Cap Fund Oppenheimer Capital 97,718 89,872 7,846 Appreciation Fund Oppenheimer Global Fund 90,850 63,174 27,676 Oppenheimer Developing 32,915 10,915 22,000 Markets Fund Oppenheimer International 117 1 116 Bond Fund Oppenheimer Main Street 110 1 109 Opportunity Fund PIMCO Real Return Fund 115,947 41,908 74,039 Pioneer Mid Cap Value Fund 58 -- 58 Putnam International Equity 31,949 9,265 22,684 Fund Putnam Small Cap Growth 55 -- 55 Fund Royce Value Plus Fund 28,786 9,119 19,667 SSgA S&P 500 Index Fund 54,986 5,699 49,287 Thornburg Value Fund 22 -- 22 Victory Diversified Stock 1,940 -- 1,940 Fund Victory Special Value Fund 5,556 1,116 4,440 Van Kampen Comstock Fund 63,455 1,204 62,251 Van Kampen Equity and 518,745 296,237 222,508 Income Fund Van Kampen Real Estate 60 1 59 Securities Fund
SA-159 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 6. FINANCIAL HIGHLIGHTS: The following is a summary of units, unit fair value, contract owners' equity, expense ratios, investment income ratios, and total return showing the minimum and maximum contract charges for which a series of each Sub-Account has outstanding units.
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AMERICAN CENTURY EQUITY INCOME FUND 2007 Lowest contract charges 9,540 $19.35 $184,611 Highest contract charges 19,702 15.23 300,113 Remaining contract charges 377,790 -- 6,303,225 2006 Lowest contract charges 11,571 19.08 220,733 Highest contract charges 17,112 15.21 260,216 Remaining contract charges 381,248 -- 6,294,117 2005 Lowest contract charges 8,235 15.99 131,697 Highest contract charges 12,978 12.91 167,508 Remaining contract charges 321,824 -- 4,537,945 2004 Lowest contract charges 5,778 15.65 90,433 Highest contract charges 4,671 12.79 59,734 Remaining contract charges 207,917 -- 2,844,697 2003 Lowest contract charges 94,582 11.79 1,115,381 Highest contract charges 911 11.54 10,504 Remaining contract charges 19,894 -- 247,592 AMERICAN CENTURY ULTRA(R) FUND 2007 Lowest contract charges 9 24.30 227 Highest contract charges 760 11.70 8,890 Remaining contract charges 399 -- 4,708 2006 Lowest contract charges 331 9.81 3,242 Highest contract charges 477 9.75 4,648 Remaining contract charges -- -- -- 2005 Lowest contract charges 1,204 10.25 12,340 Highest contract charges 14 10.23 148 Remaining contract charges -- -- -- AMERICAN CENTURY SMALL CAP VALUE FUND 2007 Lowest contract charges 259 14.07 3,645 Highest contract charges 23 13.62 317 Remaining contract charges 1,062 -- 14,671 2006 Lowest contract charges 193 14.56 2,808 Highest contract charges 17 14.22 241 Remaining contract charges 815 -- 11,717 2005 Lowest contract charges 156 12.57 1,957 Highest contract charges 3 12.49 36 Remaining contract charges -- -- -- AMERICAN CENTURY LARGE COMPANY VALUE FUND 2007 Lowest contract charges 33 11.52 385 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AMERICAN CENTURY EQUITY INCOME FUND 2007 Lowest contract charges -- 2.17% 1.43% Highest contract charges 1.25% 2.35% 0.17% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.32% 19.30% Highest contract charges 1.25% 2.24% 17.81% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.62% 2.20% Highest contract charges 1.24% 2.00% 0.93% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 2.25% 12.26% Highest contract charges 1.23% 2.57% 10.86% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% 2.97% 23.81% Highest contract charges 1.24% 3.32% 22.40% Remaining contract charges -- -- -- AMERICAN CENTURY ULTRA(R) FUND 2007 Lowest contract charges -- -- (8.82)% Highest contract charges 1.24% -- 20.02% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% -- (4.32)% Highest contract charges 1.26% -- (4.70)% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.73% -- 3.12% Highest contract charges 0.90% -- 2.94% Remaining contract charges -- -- -- AMERICAN CENTURY SMALL CAP VALUE FUND 2007 Lowest contract charges 0.34% 0.84% (3.36)% Highest contract charges 1.19% 0.80% (4.22)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.37% 1.03% 14.88% Highest contract charges 1.19% 0.46% 13.85% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 0.84% 1.81% Highest contract charges 0.23% 0.69% 1.62% Remaining contract charges -- -- -- AMERICAN CENTURY LARGE COMPANY VALUE FUND 2007 Lowest contract charges 1.12% 1.89% (2.43)% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-160
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AMERICAN CENTURY VISTA(SM) FUND 2007 Lowest contract charges 145 $23.37 $3,399 Highest contract charges 71 17.42 1,236 Remaining contract charges 3,334 -- 58,933 2006 Lowest contract charges 1,652 12.88 21,283 Highest contract charges 3 12.75 40 Remaining contract charges -- -- -- 2005 Lowest contract charges 78 11.94 934 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN CENTURY INFLATION-ADJUSTED BOND FUND 2007 Lowest contract charges 854 11.03 9,414 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN CENTURY EQUITY GROWTH FUND 2007 Lowest contract charges 6 11.83 69 Highest contract charges -- -- -- Remaining contract charges -- -- -- AIM BASIC VALUE FUND 2007 Lowest contract charges 184,664 13.83 2,554,238 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 198,766 13.73 2,729,856 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 165,571 12.18 2,016,411 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 127,412 11.58 1,475,228 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 82,013 10.48 859,436 Highest contract charges -- -- -- Remaining contract charges -- -- -- AIM EUROPEAN GROWTH FUND 2007 Lowest contract charges 11,935 10.05 119,907 Highest contract charges 3,978 14.81 58,902 Remaining contract charges -- -- -- AIM INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 4,348 14.63 63,607 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AMERICAN CENTURY VISTA(SM) FUND 2007 Lowest contract charges -- -- 38.37% Highest contract charges 1.23% -- 36.65% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% -- 7.91% Highest contract charges -- -- 7.48% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.80% -- 5.45% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN CENTURY INFLATION-ADJUSTED BOND FUND 2007 Lowest contract charges 1.23% 3.50% 9.39% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN CENTURY EQUITY GROWTH FUND 2007 Lowest contract charges 0.28% 4.13% 1.88% Highest contract charges -- -- -- Remaining contract charges -- -- -- AIM BASIC VALUE FUND 2007 Lowest contract charges 0.35% 0.06% 0.71% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 0.09% 12.77% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% -- 5.18% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% -- 10.49% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% -- 33.29% Highest contract charges -- -- -- Remaining contract charges -- -- -- AIM EUROPEAN GROWTH FUND 2007 Lowest contract charges 0.30% 5.40% 1.11% Highest contract charges 1.23% 4.59% 12.78% Remaining contract charges -- -- -- AIM INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 1.23% 2.43% 13.16% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-161 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AIM MID CAP CORE EQUITY FUND 2007 Lowest contract charges 5,539 $10.45 $57,862 Highest contract charges 1,053 12.14 12,784 Remaining contract charges 28 -- 344 AIM SMALL CAP GROWTH FUND 2007 Lowest contract charges 1,342 11.65 15,641 Highest contract charges 499 11.40 5,689 Remaining contract charges 41,564 -- 478,387 2006 Lowest contract charges 981 10.46 10,268 Highest contract charges 305 10.37 3,166 Remaining contract charges 37,989 -- 395,355 AIM REAL ESTATE FUND 2007 Lowest contract charges 2,010 22.82 45,872 Highest contract charges 4,924 23.73 116,847 Remaining contract charges 32,890 -- 804,062 2006 Lowest contract charges 61 33.63 2,033 Highest contract charges 247 28.26 6,984 Remaining contract charges 14,847 -- 428,430 2005 Lowest contract charges 1,121 21.24 23,816 Highest contract charges 5 21.00 101 Remaining contract charges -- -- -- AIM SMALL CAP EQUITY FUND 2007 Lowest contract charges 7 11.61 80 Highest contract charges -- -- -- Remaining contract charges -- -- -- DOMINI SOCIAL EQUITY FUND 2007 Lowest contract charges 180 11.39 2,060 Highest contract charges 122 11.28 1,371 Remaining contract charges -- -- -- 2006 Lowest contract charges 152 11.33 1,719 Highest contract charges 30 11.26 343 Remaining contract charges -- -- -- ALLIANCEBERNSTEIN BALANCED SHARES FUND 2007 Lowest contract charges 138 16.75 2,315 Highest contract charges 6,589 13.41 88,347 Remaining contract charges 5,671 -- 80,201 2006 Lowest contract charges 10 17.97 187 Highest contract charges 4,090 13.19 53,928 Remaining contract charges 2,959 -- 40,755 2005 Lowest contract charges 1,276 11.79 15,051 Highest contract charges -- -- -- Remaining contract charges -- -- -- ALLIANCEBERNSTEIN GROWTH AND INCOME FUND 2007 Lowest contract charges 9 12.39 110 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AIM MID CAP CORE EQUITY FUND 2007 Lowest contract charges 0.17% 3.20% 3.45% Highest contract charges 1.23% 2.46% 8.54% Remaining contract charges -- -- -- AIM SMALL CAP GROWTH FUND 2007 Lowest contract charges -- -- 11.39% Highest contract charges 1.25% -- 10.00% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 3.32% Highest contract charges 0.94% -- 2.41% Remaining contract charges -- -- -- AIM REAL ESTATE FUND 2007 Lowest contract charges -- 2.25% (32.14)% Highest contract charges 1.24% 2.29% (16.03)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 3.37% 20.58% Highest contract charges 1.24% 2.99% 34.57% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 3.19% 4.60% Highest contract charges 0.54% 3.24% 4.41% Remaining contract charges -- -- -- AIM SMALL CAP EQUITY FUND 2007 Lowest contract charges 0.71% -- 3.61% Highest contract charges -- -- -- Remaining contract charges -- -- -- DOMINI SOCIAL EQUITY FUND 2007 Lowest contract charges 0.86% 0.11% 0.60% Highest contract charges 1.23% 0.24% 0.20% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.81% 2.54% 11.63% Highest contract charges 1.16% 1.82% 11.19% Remaining contract charges -- -- -- ALLIANCEBERNSTEIN BALANCED SHARES FUND 2007 Lowest contract charges -- 3.97% (6.79)% Highest contract charges 1.24% 2.33% 1.68% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 3.74% 8.06% Highest contract charges 1.24% 2.30% 11.80% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.18% 3.05% 1.32% Highest contract charges -- -- -- Remaining contract charges -- -- -- ALLIANCEBERNSTEIN GROWTH AND INCOME FUND 2007 Lowest contract charges 0.55% 9.72% 4.20% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-162
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 4,032 $10.61 $42,778 Highest contract charges 6,878 14.68 100,974 Remaining contract charges 1,284 -- 18,968 ALLIANCEBERNSTEIN INTERNATIONAL VALUE FUND 2007 Lowest contract charges 108 26.98 2,914 Highest contract charges 11,914 15.73 187,433 Remaining contract charges 89,006 -- 1,613,741 2006 Lowest contract charges 232 15.00 3,478 Highest contract charges 921 15.13 13,932 Remaining contract charges 27,322 -- 407,124 2005 Lowest contract charges 1,168 11.17 13,047 Highest contract charges -- -- -- Remaining contract charges -- -- -- ALLIANCEBERNSTEIN GLOBAL VALUE FUND 2007 Lowest contract charges 4,265 13.34 56,886 Highest contract charges 523 13.74 7,192 Remaining contract charges 2,614 -- 36,266 2006 Lowest contract charges 2,234 13.23 29,559 Highest contract charges 232 13.76 3,193 Remaining contract charges 3,168 -- 43,839 2005 Lowest contract charges 28 10.98 308 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS AMCAP FUND 2007 Lowest contract charges 77 11.57 888 Highest contract charges 2,124 11.50 24,435 Remaining contract charges -- -- -- AMERICAN FUNDS AMERICAN BALANCED FUND 2007 Lowest contract charges 68 11.56 785 Highest contract charges 3,780 11.49 43,419 Remaining contract charges -- -- -- AMERICAN FUNDS CAPITAL INCOME BUILDER FUND 2007 Lowest contract charges 48,222 10.24 493,855 Highest contract charges 161,148 12.61 2,031,973 Remaining contract charges 48,576 -- 616,354 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- ALLIANCEBERNSTEIN INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 0.24% 1.18% 6.09% Highest contract charges 1.23% 1.55% 15.68% Remaining contract charges -- -- -- ALLIANCEBERNSTEIN INTERNATIONAL VALUE FUND 2007 Lowest contract charges -- 2.07% 5.26% Highest contract charges 1.23% 2.77% 3.95% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.33% 6.44% 33.71% Highest contract charges 1.24% 11.30% 32.51% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 7.67% 14.41% Highest contract charges -- -- -- Remaining contract charges -- -- -- ALLIANCEBERNSTEIN GLOBAL VALUE FUND 2007 Lowest contract charges 0.35% 1.01% 0.80% Highest contract charges 1.24% 1.45% (0.10)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 7.21% 26.44% Highest contract charges 1.24% 3.71% 25.31% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.12% 6.04% 10.13% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS AMCAP FUND 2007 Lowest contract charges 0.95% 3.43% 6.19% Highest contract charges 1.24% 1.13% 5.77% Remaining contract charges -- -- -- AMERICAN FUNDS AMERICAN BALANCED FUND 2007 Lowest contract charges 0.74% 3.58% 5.33% Highest contract charges 1.20% 4.74% 4.91% Remaining contract charges -- -- -- AMERICAN FUNDS CAPITAL INCOME BUILDER FUND 2007 Lowest contract charges 0.27% 1.10% 2.41% Highest contract charges 1.23% 2.37% 8.89% Remaining contract charges -- -- --
SA-163 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- CALVERT SOCIAL INVESTMENT FUND EQUITY PORTFOLIO 2007 Lowest contract charges 10 $38.61 $387 Highest contract charges 2,657 11.79 31,332 Remaining contract charges 18,155 -- 240,343 2006 Lowest contract charges 10,883 12.02 130,791 Highest contract charges 453 10.86 4,917 Remaining contract charges -- -- -- 2005 Lowest contract charges 40 11.00 440 Highest contract charges -- -- -- Remaining contract charges -- -- -- CALVERT LARGE CAP GROWTH FUND 2007 Lowest contract charges 1 35.50 50 Highest contract charges 1,848 12.44 22,990 Remaining contract charges 8,297 -- 103,575 2006 Lowest contract charges 5,043 11.03 55,609 Highest contract charges 533 11.13 5,929 Remaining contract charges 4,382 -- 49,034 2005 Lowest contract charges 1,886 10.79 20,359 Highest contract charges -- -- -- Remaining contract charges -- -- -- CALVERT SOCIAL INVESTMENT BOND FUND 2007 Lowest contract charges 65 10.47 685 Highest contract charges 1,514 10.88 16,471 Remaining contract charges 2,935 -- 31,072 COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND 2007 Lowest contract charges 1,187 15.07 17,879 Highest contract charges -- -- -- Remaining contract charges -- -- -- COLUMBIA MARSICO GROWTH FUND 2007 Lowest contract charges 1,549 12.83 19,883 Highest contract charges 4,414 12.75 56,283 Remaining contract charges -- -- -- CRM MID CAP VALUE FUND 2007 Lowest contract charges 12,493 13.21 165,084 Highest contract charges 1,438 12.91 18,566 Remaining contract charges 966 -- 12,595 2006 Lowest contract charges 12,372 12.03 148,860 Highest contract charges 471 11.86 5,589 Remaining contract charges 252 -- 3,002 2005 Lowest contract charges 137 10.27 1,405 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- CALVERT SOCIAL INVESTMENT FUND EQUITY PORTFOLIO 2007 Lowest contract charges -- -- 3.51% Highest contract charges 1.23% -- 8.57% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% -- 9.23% Highest contract charges 1.24% -- 8.80% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.99% -- 0.01% Highest contract charges -- -- -- Remaining contract charges -- -- -- CALVERT LARGE CAP GROWTH FUND 2007 Lowest contract charges -- -- 12.02% Highest contract charges 1.23% -- 11.84% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 4.19% Highest contract charges 1.25% -- 3.25% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 8.26% Highest contract charges -- -- -- Remaining contract charges -- -- -- CALVERT SOCIAL INVESTMENT BOND FUND 2007 Lowest contract charges 0.19% 3.54% 4.65% Highest contract charges 1.17% 5.88% 5.33% Remaining contract charges -- -- -- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND 2007 Lowest contract charges 1.23% 2.43% 18.51% Highest contract charges -- -- -- Remaining contract charges -- -- -- COLUMBIA MARSICO GROWTH FUND 2007 Lowest contract charges 0.83% 0.38% 13.02% Highest contract charges 1.22% 0.23% 12.57% Remaining contract charges -- -- -- CRM MID CAP VALUE FUND 2007 Lowest contract charges 0.35% 0.51% 9.83% Highest contract charges 1.24% 0.71% 8.84% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 1.09% 16.54% Highest contract charges 1.25% 0.74% 15.50% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.21% 5.66% -- Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-168
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- DAVIS FINANCIAL FUND 2007 Lowest contract charges 22 $11.21 $243 Highest contract charges -- -- -- Remaining contract charges -- -- -- DAVIS NEW YORK VENTURE FUND 2007 Lowest contract charges 1,319 40.01 52,791 Highest contract charges 25,106 15.44 387,542 Remaining contract charges 100,544 -- 1,573,777 2006 Lowest contract charges 13 38.52 465 Highest contract charges 1,895 14.89 28,221 Remaining contract charges 31,098 -- 478,133 2005 Lowest contract charges 810 13.30 10,764 Highest contract charges -- -- -- Remaining contract charges -- -- -- DAVIS OPPORTUNITY FUND 2007 Lowest contract charges 6,531 10.86 70,933 Highest contract charges 554 10.79 5,977 Remaining contract charges -- -- -- DREYFUS LIFETIME GROWTH AND INCOME PORTFOLIO 2007 Lowest contract charges 1,851 13.33 24,670 Highest contract charges 11,354 13.09 148,596 Remaining contract charges 20,683 -- 270,338 2006 Lowest contract charges 6,449 11.88 76,645 Highest contract charges 10,476 12.56 131,623 Remaining contract charges 12,845 -- 164,341 2005 Lowest contract charges 5,378 11.71 62,958 Highest contract charges 7,258 11.44 83,007 Remaining contract charges 10,785 -- 124,815 2004 Lowest contract charges 4,198 11.28 47,366 Highest contract charges 4,149 11.09 46,010 Remaining contract charges 3,218 -- 35,960 2003 Lowest contract charges 4,347 10.59 46,056 Highest contract charges 554 10.48 5,799 Remaining contract charges 265 -- 2,787 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- DAVIS FINANCIAL FUND 2007 Lowest contract charges 1.34% 0.41% (6.49)% Highest contract charges -- -- -- Remaining contract charges -- -- -- DAVIS NEW YORK VENTURE FUND 2007 Lowest contract charges -- 2.14% 3.87% Highest contract charges 1.23% 2.17% 3.67% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 3.12% 14.30% Highest contract charges 1.24% 2.77% 13.69% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 2.60% 6.20% Highest contract charges -- -- -- Remaining contract charges -- -- -- DAVIS OPPORTUNITY FUND 2007 Lowest contract charges 0.83% 2.72% (2.26)% Highest contract charges 1.23% 1.53% (2.65)% Remaining contract charges -- -- -- DREYFUS LIFETIME GROWTH AND INCOME PORTFOLIO 2007 Lowest contract charges -- 3.94% 5.48% Highest contract charges 1.25% 2.89% 4.17% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.50% 6.94% 10.68% Highest contract charges 1.25% 3.24% 9.85% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 5.35% 3.76% Highest contract charges 1.24% 5.71% 3.14% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 1.86% 6.50% Highest contract charges 1.24% 2.59% 5.86% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 2.02% 19.06% Highest contract charges 1.23% 5.09% 18.34% Remaining contract charges -- -- --
SA-169 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- DREYFUS LIFETIME GROWTH PORTFOLIO 2007 Lowest contract charges 468 $12.49 $5,850 Highest contract charges 3,868 13.66 52,853 Remaining contract charges 15,362 -- 187,335 2006 Lowest contract charges 468 11.93 5,587 Highest contract charges 5,019 13.21 66,313 Remaining contract charges 12,392 -- 147,291 2005 Lowest contract charges 6,267 11.79 73,913 Highest contract charges 4,475 11.52 51,567 Remaining contract charges 1,717 -- 19,333 2004 Lowest contract charges 3,726 11.05 41,182 Highest contract charges 3,038 10.86 32,998 Remaining contract charges 106 -- 1,120 2003 Lowest contract charges 3,344 10.11 33,800 Highest contract charges 1,431 9.99 14,300 Remaining contract charges -- -- -- DREYFUS LIFETIME INCOME PORTFOLIO 2007 Lowest contract charges 2,305 12.14 27,983 Highest contract charges 546 11.60 6,338 Remaining contract charges 12,582 -- 153,248 2006 Lowest contract charges 1,962 11.59 22,729 Highest contract charges 989 11.16 11,027 Remaining contract charges 12,322 -- 143,712 2005 Lowest contract charges 2,692 10.97 29,531 Highest contract charges 527 10.72 5,646 Remaining contract charges 6,401 -- 71,669 2004 Lowest contract charges 2,231 10.92 24,377 Highest contract charges 176 10.74 1,886 Remaining contract charges 4,232 -- 47,279 2003 Lowest contract charges 1,878 10.66 20,027 Highest contract charges 6 10.54 61 Remaining contract charges 964 -- 10,533 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- DREYFUS LIFETIME GROWTH PORTFOLIO 2007 Lowest contract charges -- 1.64% 4.71% Highest contract charges 1.25% 1.29% 3.41% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 4.98% 16.12% Highest contract charges 1.25% 2.31% 14.68% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 2.52% 6.72% Highest contract charges 1.24% 2.49% 6.08% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% -- 9.34% Highest contract charges 1.24% -- 8.69% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 0.30% 27.61% Highest contract charges 1.23% 0.49% 26.84% Remaining contract charges -- -- -- DREYFUS LIFETIME INCOME PORTFOLIO 2007 Lowest contract charges 0.50% 4.20% 4.77% Highest contract charges 1.25% 3.04% 3.98% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.50% 9.30% 4.88% Highest contract charges 1.25% 5.21% 4.10% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 4.44% 0.42% Highest contract charges 1.24% 6.04% (0.18)% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 3.12% 2.42% Highest contract charges 1.15% 4.17% 1.81% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 3.43% 7.01% Highest contract charges 0.38% 11.42% 6.37% Remaining contract charges -- -- --
SA-170
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- DREYFUS PREMIER CORE BOND FUND 2007 Lowest contract charges 4,286 $14.17 $60,743 Highest contract charges 6,401 12.11 77,513 Remaining contract charges 76,520 -- 980,999 2006 Lowest contract charges 2,868 13.67 39,194 Highest contract charges 6,142 11.82 72,626 Remaining contract charges 65,582 -- 814,175 2005 Lowest contract charges 1,589 13.03 20,698 Highest contract charges 4,496 11.41 51,311 Remaining contract charges 54,817 -- 643,840 2004 Lowest contract charges 2,764 12.81 35,426 Highest contract charges 3,430 11.37 38,983 Remaining contract charges 10,652 -- 123,372 2003 Lowest contract charges 6,642 11.21 74,448 Highest contract charges 612 11.08 6,786 Remaining contract charges 494 -- 5,600 DREYFUS MIDCAP INDEX FUND 2007 Lowest contract charges 958 28.35 27,152 Highest contract charges 68 12.02 822 Remaining contract charges 1,841 -- 22,337 2006 Lowest contract charges 52 29.25 1,529 Highest contract charges 33 11.31 378 Remaining contract charges 4,954 -- 56,374 2005 Lowest contract charges 665 10.45 6,949 Highest contract charges -- -- -- Remaining contract charges -- -- -- DREYFUS SMALLCAP STOCK INDEX FUND 2007 Lowest contract charges 515 21.30 10,970 Highest contract charges 449 11.39 5,126 Remaining contract charges -- -- -- 2006 Lowest contract charges 4 23.53 100 Highest contract charges 158 11.49 1,819 Remaining contract charges 649 -- 7,501 2005 Lowest contract charges 18 10.16 188 Highest contract charges -- -- -- Remaining contract charges -- -- -- DREYFUS PREMIER SMALL CAP VALUE FUND 2007 Lowest contract charges -- 11.27 -- Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 74 11.73 869 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- DREYFUS PREMIER CORE BOND FUND 2007 Lowest contract charges -- 5.12% 3.70% Highest contract charges 1.25% 5.12% 2.41% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 4.71% 4.92% Highest contract charges 1.25% 4.72% 3.61% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 4.56% 1.66% Highest contract charges 1.24% 4.32% 0.40% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 4.22% 3.85% Highest contract charges 1.22% 4.13% 2.56% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 3.62% 6.64% Highest contract charges 1.23% 3.57% 6.00% Remaining contract charges -- -- -- DREYFUS MIDCAP INDEX FUND 2007 Lowest contract charges -- 1.40% (3.08)% Highest contract charges 1.24% 0.16% 6.23% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 6.43% 4.69% Highest contract charges 1.06% 4.00% 8.50% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 3.79% 4.73% Highest contract charges -- -- -- Remaining contract charges -- -- -- DREYFUS SMALLCAP STOCK INDEX FUND 2007 Lowest contract charges -- 0.83% (9.48)% Highest contract charges 0.85% 0.46% (1.46)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 8.49% 9.75% Highest contract charges 1.21% 2.91% 13.27% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.32% 2.38% 2.35% Highest contract charges -- -- -- Remaining contract charges -- -- -- DREYFUS PREMIER SMALL CAP VALUE FUND 2007 Lowest contract charges -- -- -- Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.20% 12.57% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-171 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AMERICAN FUNDS EUROPACIFIC GROWTH FUND 2007 Lowest contract charges 158 $20.37 $3,223 Highest contract charges 31,282 20.52 641,943 Remaining contract charges 64,931 -- 1,394,430 2006 Lowest contract charges 8,310 18.41 153,014 Highest contract charges 2,111 17.52 37,001 Remaining contract charges 6,455 -- 115,639 2005 Lowest contract charges 229 14.88 3,413 Highest contract charges 54 14.61 782 Remaining contract charges -- -- -- AMERICAN FUNDS FUNDAMENTAL INVESTORS FUND 2007 Lowest contract charges 28,701 12.55 360,344 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS NEW PERSPECTIVE FUND 2007 Lowest contract charges 2,902 10.59 30,727 Highest contract charges 1,478 13.34 19,722 Remaining contract charges 3,683 -- 49,437 AMERICAN FUNDS THE BOND FUND OF AMERICA 2007 Lowest contract charges 8 10.69 88 Highest contract charges 33,659 10.59 356,325 Remaining contract charges 3,012 -- 32,087 AMERICAN FUNDS THE GROWTH FUND OF AMERICA FUND 2007 Lowest contract charges 43,566 33.52 1,460,349 Highest contract charges 106,492 13.76 1,465,852 Remaining contract charges 276,742 -- 3,962,292 2006 Lowest contract charges 404 32.45 13,121 Highest contract charges 10,002 12.60 126,057 Remaining contract charges 123,951 -- 1,609,347 2005 Lowest contract charges 1,797 11.75 21,103 Highest contract charges 239 11.54 2,757 Remaining contract charges -- -- -- AMERICAN FUNDS THE INCOME FUND OF AMERICA 2007 Lowest contract charges 14,044 9.75 136,910 Highest contract charges 13,599 11.57 157,318 Remaining contract charges 59,706 -- 631,963 AMERICAN FUNDS THE INVESTMENT COMPANY OF AMERICA 2007 Lowest contract charges 459 9.77 4,490 Highest contract charges 14,231 11.61 165,177 Remaining contract charges 9,792 -- 114,361 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AMERICAN FUNDS EUROPACIFIC GROWTH FUND 2007 Lowest contract charges -- 3.37% 18.58% Highest contract charges 1.24% 4.37% 17.11% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 4.44% 21.00% Highest contract charges 1.25% 3.44% 19.92% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.85% 4.90% 16.94% Highest contract charges 1.27% 13.50% 16.72% Remaining contract charges -- -- -- AMERICAN FUNDS FUNDAMENTAL INVESTORS FUND 2007 Lowest contract charges 1.23% 3.91% 11.76% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS NEW PERSPECTIVE FUND 2007 Lowest contract charges 0.30% 7.28% 4.68% Highest contract charges 1.24% 2.87% 14.19% Remaining contract charges -- -- -- AMERICAN FUNDS THE BOND FUND OF AMERICA 2007 Lowest contract charges -- 8.55% 2.35% Highest contract charges 1.23% 5.83% 1.74% Remaining contract charges -- -- -- AMERICAN FUNDS THE GROWTH FUND OF AMERICA FUND 2007 Lowest contract charges -- 2.47% 3.30% Highest contract charges 1.24% 1.72% 9.22% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.79% 6.39% Highest contract charges 1.24% 2.07% 9.25% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 2.55% 8.23% Highest contract charges 1.17% 2.65% 8.03% Remaining contract charges -- -- -- AMERICAN FUNDS THE INCOME FUND OF AMERICA 2007 Lowest contract charges 0.24% 2.14% (2.52)% Highest contract charges 1.24% 3.03% 2.11% Remaining contract charges -- -- -- AMERICAN FUNDS THE INVESTMENT COMPANY OF AMERICA 2007 Lowest contract charges 0.30% 1.90% (2.38)% Highest contract charges 1.23% 2.12% 4.22% Remaining contract charges -- -- --
SA-164
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AMERICAN FUNDS THE NEW ECONOMY FUND 2007 Lowest contract charges 10,489 $10.38 $108,873 Highest contract charges 7,535 12.79 96,345 Remaining contract charges 20,611 -- 217,285 AMERICAN FUNDS WASHINGTON MUTUAL INVESTORS 2007 Lowest contract charges 135 11.65 1,578 Highest contract charges 2,492 11.54 28,765 Remaining contract charges -- -- -- 2006 Lowest contract charges 27 11.28 306 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS AMERICAN MUTUAL FUND 2007 Lowest contract charges 623 11.39 7,094 Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS CAPITAL WORLD GROWTH & INCOME FUND 2007 Lowest contract charges 56 57.26 3,209 Highest contract charges 49,662 17.22 855,269 Remaining contract charges 199,572 -- 3,535,262 2006 Lowest contract charges 312 41.76 13,028 Highest contract charges 10,635 14.90 158,414 Remaining contract charges 67,265 -- 1,017,060 2005 Lowest contract charges 369 12.44 4,594 Highest contract charges 166 12.38 2,058 Remaining contract charges -- -- -- AMERICAN FUNDS SMALLCAP WORLD FUND 2007 Lowest contract charges 13,578 13.50 183,327 Highest contract charges -- -- -- Remaining contract charges -- -- -- ARIEL APPRECIATION FUND 2007 Lowest contract charges 91 43.06 3,928 Highest contract charges 2,934 10.71 31,401 Remaining contract charges -- -- -- 2006 Lowest contract charges 1 48.33 30 Highest contract charges 1,980 10.95 21,681 Remaining contract charges -- -- -- 2005 Lowest contract charges 819 9.96 8,150 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AMERICAN FUNDS THE NEW ECONOMY FUND 2007 Lowest contract charges 0.24% 0.80% 3.80% Highest contract charges 1.24% 1.54% 9.59% Remaining contract charges -- -- -- AMERICAN FUNDS WASHINGTON MUTUAL INVESTORS 2007 Lowest contract charges 0.68% 2.09% 2.94% Highest contract charges 1.24% 1.75% 2.33% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.78% 2.62% 13.08% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS AMERICAN MUTUAL FUND 2007 Lowest contract charges 1.21% 2.71% 1.63% Highest contract charges -- -- -- Remaining contract charges -- -- -- AMERICAN FUNDS CAPITAL WORLD GROWTH & INCOME FUND 2007 Lowest contract charges -- 2.90% 17.07% Highest contract charges 1.24% 2.46% 15.62% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.80% 14.60% Highest contract charges 1.24% 1.63% 20.33% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 1.87% 11.09% Highest contract charges 1.19% 1.86% 10.89% Remaining contract charges -- -- -- AMERICAN FUNDS SMALLCAP WORLD FUND 2007 Lowest contract charges 1.23% 4.09% 15.26% Highest contract charges -- -- -- Remaining contract charges -- -- -- ARIEL APPRECIATION FUND 2007 Lowest contract charges -- 1.27% (10.90)% Highest contract charges 0.84% 0.60% (2.23)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.17% 3.45% Highest contract charges 0.85% 0.08% 10.01% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.91% (0.09)% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-165 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- ARIEL FUND 2007 Lowest contract charges 28 $46.39 $1,291 Highest contract charges 16 10.32 165 Remaining contract charges 1,334 -- 13,904 2006 Lowest contract charges 688 10.69 7,362 Highest contract charges 61 10.63 651 Remaining contract charges -- -- -- 2005 Lowest contract charges 242 9.77 2,367 Highest contract charges -- -- -- Remaining contract charges -- -- -- ARTISAN MID CAP VALUE FUND 2007 Lowest contract charges 548 18.10 9,925 Highest contract charges 2,313 11.38 26,321 Remaining contract charges 63,568 -- 820,412 2006 Lowest contract charges 197 20.18 3,982 Highest contract charges 596 11.34 6,760 Remaining contract charges 53,609 -- 684,162 2005 Lowest contract charges 1,459 11.58 16,897 Highest contract charges 66 10.05 660 Remaining contract charges -- -- -- LIFEPATH 2010 PORTFOLIO 2007 Lowest contract charges 2,004 13.19 26,426 Highest contract charges 4,238 11.25 47,691 Remaining contract charges 89,480 -- 943,599 2006 Lowest contract charges 1,689 11.28 19,047 Highest contract charges 104 10.96 1,138 Remaining contract charges 1,182 -- 13,254 2005 Lowest contract charges 180 10.27 1,853 Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH 2020 PORTFOLIO 2007 Lowest contract charges 339 16.98 5,761 Highest contract charges 26,728 11.46 306,192 Remaining contract charges 154,670 -- 1,723,665 2006 Lowest contract charges 136 11.53 1,555 Highest contract charges 250 11.26 2,810 Remaining contract charges 50,974 -- 592,133 2005 Lowest contract charges 2,375 10.37 24,630 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- ARIEL FUND 2007 Lowest contract charges -- 0.59% (10.46)% Highest contract charges 1.22% 0.07% (2.93)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% -- 9.42% Highest contract charges 1.22% -- 8.98% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.91% (1.86)% Highest contract charges -- -- -- Remaining contract charges -- -- -- ARTISAN MID CAP VALUE FUND 2007 Lowest contract charges -- 0.40% (10.31)% Highest contract charges 1.25% 0.38% 0.39% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.78% 7.63% Highest contract charges 1.24% 0.51% 12.78% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.18% 0.69% Highest contract charges 1.11% 0.50% 0.93% Remaining contract charges -- -- -- LIFEPATH 2010 PORTFOLIO 2007 Lowest contract charges -- 6.18% (2.44)% Highest contract charges 1.24% 4.49% 2.63% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.51% 8.78% 9.60% Highest contract charges 0.70% 5.45% 8.47% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 4.55% 3.05% Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH 2020 PORTFOLIO 2007 Lowest contract charges -- 5.28% (2.86)% Highest contract charges 1.23% 3.26% 1.78% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.34% 5.50% 12.62% Highest contract charges 0.70% 5.05% 10.53% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 3.97% 4.11% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-166
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- LIFEPATH 2030 PORTFOLIO 2007 Lowest contract charges 458 $16.19 $7,411 Highest contract charges 8,344 11.61 96,846 Remaining contract charges 162,919 -- 1,814,831 2006 Lowest contract charges 910 11.82 10,763 Highest contract charges 516 11.48 5,923 Remaining contract charges 30,564 -- 364,580 2005 Lowest contract charges 319 10.45 3,337 Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH 2040 PORTFOLIO 2007 Lowest contract charges 1,595 20.32 32,420 Highest contract charges 7,684 11.73 90,174 Remaining contract charges 120,445 -- 1,297,758 2006 Lowest contract charges 51 12.05 603 Highest contract charges 290 11.68 3,385 Remaining contract charges 16,900 -- 205,726 2005 Lowest contract charges 1,149 10.50 12,060 Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH RETIREMENT PORTFOLIO 2007 Lowest contract charges 325 11.46 3,730 Highest contract charges 2,126 11.14 23,686 Remaining contract charges 6,950 -- 78,382 2006 Lowest contract charges 41 10.97 448 Highest contract charges 54 10.83 583 Remaining contract charges 2,025 -- 22,286 BARON SMALL CAP FUND 2007 Lowest contract charges 206 15.07 3,102 Highest contract charges 955 12.42 11,864 Remaining contract charges 2,349 -- 34,167 2006 Lowest contract charges 3,768 12.29 46,313 Highest contract charges 228 11.26 2,567 Remaining contract charges 1,248 -- 16,440 2005 Lowest contract charges 844 11.90 10,047 Highest contract charges -- -- -- Remaining contract charges -- -- -- BLACKROCK GOVERNMENT INCOME FUND 2007 Lowest contract charges 4 10.67 47 Highest contract charges 1,000 10.61 10,605 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- LIFEPATH 2030 PORTFOLIO 2007 Lowest contract charges -- 7.13% (4.20)% Highest contract charges 1.23% 2.82% 1.11% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 4.05% 14.72% Highest contract charges 0.69% 5.05% 12.07% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 2.39% 4.95% Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH 2040 PORTFOLIO 2007 Lowest contract charges -- 3.20% (2.78)% Highest contract charges 1.24% 2.91% 0.51% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.31% 5.81% 16.56% Highest contract charges 0.69% 4.39% 13.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 2.21% 5.46% Highest contract charges -- -- -- Remaining contract charges -- -- -- LIFEPATH RETIREMENT PORTFOLIO 2007 Lowest contract charges -- 5.85% (1.12)% Highest contract charges 1.24% 3.70% 2.88% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.14% 4.52% 8.42% Highest contract charges 0.68% 5.89% 7.52% Remaining contract charges -- -- -- BARON SMALL CAP FUND 2007 Lowest contract charges -- -- 11.69% Highest contract charges 1.23% -- 10.31% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 11.44% Highest contract charges 1.24% -- 10.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 2.18% Highest contract charges -- -- -- Remaining contract charges -- -- -- BLACKROCK GOVERNMENT INCOME FUND 2007 Lowest contract charges -- 4.49% 3.20% Highest contract charges 1.23% 4.69% 2.79% Remaining contract charges -- -- --
SA-167 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- EATON VANCE LARGE-CAP VALUE FUND 2007 Lowest contract charges 23,336 $9.97 $232,639 Highest contract charges 3,351 12.69 42,528 Remaining contract charges 956 -- 12,212 2006 Lowest contract charges 4 11.68 47 Highest contract charges -- -- -- Remaining contract charges -- -- -- EATON VANCE DIVIDEND BUILDER FUND 2007 Lowest contract charges 1,946 10.56 20,544 Highest contract charges 192 15.12 2,898 Remaining contract charges 1,698 -- 25,840 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND 2007 Lowest contract charges 115 11.61 1,336 Highest contract charges -- -- -- Remaining contract charges -- -- -- EATON VANCE INCOME FUND OF BOSTON 2007 Lowest contract charges 19,677 9.76 192,064 Highest contract charges 7,933 10.73 85,120 Remaining contract charges 1,940 -- 20,964 ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO 2007 Lowest contract charges 13,843 11.67 161,535 Highest contract charges 665 16.01 10,639 Remaining contract charges 4,772 -- 68,405 ALGER MIDCAP GROWTH INSTITUTIONAL FUND 2007 Lowest contract charges 20,843 11.68 243,513 Highest contract charges 532 15.96 8,491 Remaining contract charges 583 -- 9,367 2006 Lowest contract charges 22 12.01 264 Highest contract charges -- -- -- Remaining contract charges -- -- -- FIDELITY ADVISOR EQUITY GROWTH FUND 2007 Lowest contract charges 910 13.76 12,516 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- EATON VANCE LARGE-CAP VALUE FUND 2007 Lowest contract charges 0.28% 1.63% (0.31)% Highest contract charges 1.20% 1.41% 8.62% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.19% 2.07% 13.95% Highest contract charges -- -- -- Remaining contract charges -- -- -- EATON VANCE DIVIDEND BUILDER FUND 2007 Lowest contract charges 0.28% 0.91% 5.57% Highest contract charges 1.19% 1.79% 21.34% Remaining contract charges -- -- -- EATON VANCE WORLDWIDE HEALTH SCIENCES FUND 2007 Lowest contract charges 0.85% -- 5.59% Highest contract charges -- -- -- Remaining contract charges -- -- -- EATON VANCE INCOME FUND OF BOSTON 2007 Lowest contract charges 0.28% 4.86% (2.39)% Highest contract charges 1.22% 7.93% 0.96% Remaining contract charges -- -- -- ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO 2007 Lowest contract charges 0.24% -- 16.69% Highest contract charges 1.13% -- 29.99% Remaining contract charges -- -- -- ALGER MIDCAP GROWTH INSTITUTIONAL FUND 2007 Lowest contract charges 0.30% -- 16.83% Highest contract charges 1.24% -- 32.89% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.64% -- 15.34% Highest contract charges -- -- -- Remaining contract charges -- -- -- FIDELITY ADVISOR EQUITY GROWTH FUND 2007 Lowest contract charges 1.23% -- 24.53% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-172
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- FIDELITY ADVISOR VALUE STRATEGIES FUND 2007 Lowest contract charges 42,621 $17.23 $734,416 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 36,925 16.45 607,395 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 45,123 14.28 644,228 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 34,707 14.02 486,509 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 24,743 12.30 304,423 Highest contract charges -- -- -- Remaining contract charges -- -- -- FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES FUND 2007 Lowest contract charges 465 10.90 5,070 Highest contract charges 66 10.83 718 Remaining contract charges -- -- -- FEDERATED MID CAP GROWTH STRATEGIES FUND 2007 Lowest contract charges 17 12.72 210 Highest contract charges -- -- -- Remaining contract charges -- -- -- FEDERATED KAUFMAN FUND 2007 Lowest contract charges 6,246 10.84 67,706 Highest contract charges 7,575 13.57 102,770 Remaining contract charges 8,837 -- 120,656 FEDERATED SHORT-TERM INCOME FUND 2007 Lowest contract charges 11,507 11.47 131,962 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 13,183 11.06 145,759 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 12,621 10.61 133,904 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 12,205 10.42 127,130 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 10,212 10.24 104,535 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- FIDELITY ADVISOR VALUE STRATEGIES FUND 2007 Lowest contract charges 0.35% -- 4.75% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 15.22% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% -- 1.85% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% -- 13.93% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% -- 59.43% Highest contract charges -- -- -- Remaining contract charges -- -- -- FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES FUND 2007 Lowest contract charges 0.85% 7.06% 4.82% Highest contract charges 1.17% 6.38% 4.40% Remaining contract charges -- -- -- FEDERATED MID CAP GROWTH STRATEGIES FUND 2007 Lowest contract charges 0.27% -- 17.04% Highest contract charges -- -- -- Remaining contract charges -- -- -- FEDERATED KAUFMAN FUND 2007 Lowest contract charges 0.29% -- 6.77% Highest contract charges 1.22% -- 19.90% Remaining contract charges -- -- -- FEDERATED SHORT-TERM INCOME FUND 2007 Lowest contract charges 0.35% 4.36% 3.72% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 4.12% 4.21% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% 3.24% 1.86% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% 2.69% 1.76% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% 2.61% 0.75% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-173 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- TEMPLETON DEVELOPING MARKETS TRUST 2007 Lowest contract charges 14,788 $11.88 $175,690 Highest contract charges 4,989 16.95 84,550 Remaining contract charges 16,500 -- 239,143 FRANKLIN HIGH INCOME FUND 2007 Lowest contract charges 1,164 10.94 12,743 Highest contract charges 329 10.87 3,572 Remaining contract charges -- -- -- TEMPLETON GLOBAL BOND FUND 2007 Lowest contract charges 4,561 11.64 53,090 Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN SMALL CAP VALUE FUND 2007 Lowest contract charges 69 13.60 935 Highest contract charges 8,112 13.21 107,191 Remaining contract charges 23,052 -- 311,033 2006 Lowest contract charges 2,334 13.88 32,401 Highest contract charges 404 13.76 5,567 Remaining contract charges -- -- -- 2005 Lowest contract charges 240 11.99 2,875 Highest contract charges -- -- -- Remaining contract charges -- -- -- MUTUAL DISCOVERY FUND 2007 Lowest contract charges 1,927 10.11 19,488 Highest contract charges 47,510 12.90 612,670 Remaining contract charges 14,454 -- 187,606 2006 Lowest contract charges 134 11.77 1,573 Highest contract charges -- -- -- Remaining contract charges -- -- -- TEMPLETON GROWTH FUND 2007 Lowest contract charges 1,641 24.07 39,507 Highest contract charges 17,587 15.19 267,157 Remaining contract charges 32,952 -- 512,892 2006 Lowest contract charges 46 25.66 1,191 Highest contract charges 1,056 15.05 15,900 Remaining contract charges 6,536 -- 100,124 2005 Lowest contract charges 1,263 12.59 15,911 Highest contract charges 16 12.51 203 Remaining contract charges -- -- -- FRANKLIN INCOME FUND 2007 Lowest contract charges 10,151 10.20 103,541 Highest contract charges 56,175 11.65 654,632 Remaining contract charges 27,011 -- 316,771 2006 Lowest contract charges 50 11.20 563 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- TEMPLETON DEVELOPING MARKETS TRUST 2007 Lowest contract charges 0.24% 2.59% 18.81% Highest contract charges 1.23% 5.48% 27.17% Remaining contract charges -- -- -- FRANKLIN HIGH INCOME FUND 2007 Lowest contract charges 0.83% 7.08% 2.31% Highest contract charges 1.20% 7.06% 1.90% Remaining contract charges -- -- -- TEMPLETON GLOBAL BOND FUND 2007 Lowest contract charges 1.24% 11.59% 9.48% Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN SMALL CAP VALUE FUND 2007 Lowest contract charges 0.31% 1.76% (3.12)% Highest contract charges 1.24% 1.91% (3.99)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 1.11% 15.82% Highest contract charges 1.22% 3.02% 15.35% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.72% 2.70% Highest contract charges -- -- -- Remaining contract charges -- -- -- MUTUAL DISCOVERY FUND 2007 Lowest contract charges 0.24% 2.86% 1.14% Highest contract charges 1.23% 6.23% 9.58% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.74% 8.59% 16.75% Highest contract charges -- -- -- Remaining contract charges -- -- -- TEMPLETON GROWTH FUND 2007 Lowest contract charges -- 2.07% (6.20)% Highest contract charges 1.23% 3.69% 0.92% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 4.15% 11.86% Highest contract charges 1.24% 3.45% 20.30% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 5.45% 6.24% Highest contract charges 0.72% 1.94% 6.04% Remaining contract charges -- -- -- FRANKLIN INCOME FUND 2007 Lowest contract charges 0.44% 4.65% 2.01% Highest contract charges 1.23% 5.15% 4.01% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.74% 1.85% 13.48% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-174
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- FRANKLIN CAPITAL GROWTH FUND 2007 Lowest contract charges 7 $12.06 $78 Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN BALANCE SHEET INVESTMENT FUND 2007 Lowest contract charges 165,040 18.65 3,078,551 Highest contract charges 1,984 17.69 35,110 Remaining contract charges 77,763 -- 1,436,526 2006 Lowest contract charges 161,281 19.37 3,123,864 Highest contract charges 1,208 18.54 22,394 Remaining contract charges 68,714 -- 1,319,921 2005 Lowest contract charges 135,720 16.71 2,267,247 Highest contract charges 575 16.13 9,276 Remaining contract charges 65,031 -- 1,073,575 2004 Lowest contract charges 101,637 15.12 1,536,307 Highest contract charges 187 14.73 2,757 Remaining contract charges 46,750 -- 700,651 2003 Lowest contract charges 70,941 12.11 858,768 Highest contract charges 177 11.90 2,101 Remaining contract charges 26,079 -- 313,949 MUTUAL BEACON FUND 2007 Lowest contract charges 37,344 9.75 363,987 Highest contract charges 2,464 11.61 28,619 Remaining contract charges 5,030 -- 58,776 2006 Lowest contract charges 134 11.45 1,531 Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN MUTUAL SHARES FUND 2007 Lowest contract charges 3,085 17.23 53,162 Highest contract charges 29,452 16.01 471,581 Remaining contract charges 172,223 -- 2,836,981 2006 Lowest contract charges 1,082 16.73 18,096 Highest contract charges 10,793 15.75 169,946 Remaining contract charges 142,602 -- 2,306,405 2005 Lowest contract charges 1,155 14.18 16,384 Highest contract charges 5,546 13.51 74,945 Remaining contract charges 129,027 -- 1,779,050 2004 Lowest contract charges 3,860 12.90 49,780 Highest contract charges 2,459 12.44 30,594 Remaining contract charges 58,169 -- 736,157 2003 Lowest contract charges 15,293 11.23 171,677 Highest contract charges 667 11.10 7,403 Remaining contract charges 27,350 -- 306,091 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- FRANKLIN CAPITAL GROWTH FUND 2007 Lowest contract charges 0.64% 2.87% 7.82% Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN BALANCE SHEET INVESTMENT FUND 2007 Lowest contract charges 0.35% 0.96% (3.70)% Highest contract charges 1.24% 1.19% (4.56)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 1.41% 15.95% Highest contract charges 1.25% 1.61% 14.91% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% 0.88% 10.52% Highest contract charges 1.23% 0.72% 9.53% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% 0.96% 24.87% Highest contract charges 1.25% 0.85% 23.75% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% 0.50% 29.13% Highest contract charges 1.24% 0.42% 27.97% Remaining contract charges -- -- -- MUTUAL BEACON FUND 2007 Lowest contract charges 0.44% 3.41% (2.30)% Highest contract charges 1.23% 6.29% 1.40% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.70% 6.59% 14.93% Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN MUTUAL SHARES FUND 2007 Lowest contract charges -- 2.89% 2.97% Highest contract charges 1.24% 4.07% 1.69% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.91% 17.98% Highest contract charges 1.25% 2.10% 16.51% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.41% 9.98% Highest contract charges 1.24% 1.87% 8.62% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 2.20% 13.50% Highest contract charges 1.24% 2.17% 12.09% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 1.55% 25.36% Highest contract charges 1.24% 1.92% 24.62% Remaining contract charges -- -- --
SA-175 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- FRANKLIN SMALL-MID CAP GROWTH FUND 2007 Lowest contract charges 1,123 $10.62 $11,929 Highest contract charges 18,020 14.48 260,979 Remaining contract charges 107,389 -- 1,411,366 2006 Lowest contract charges 1,980 9.51 18,829 Highest contract charges 12,829 13.13 168,471 Remaining contract charges 98,108 -- 1,175,717 2005 Lowest contract charges 921 8.84 8,147 Highest contract charges 8,770 12.37 108,461 Remaining contract charges 83,089 -- 1,028,134 2004 Lowest contract charges 1,910 8.00 15,278 Highest contract charges 2,728 11.33 30,907 Remaining contract charges 26,838 -- 303,676 2003 Lowest contract charges 7,020 7.08 49,691 Highest contract charges 539 10.15 5,467 Remaining contract charges 5,990 -- 61,007 FRANKLIN TEMPLETON CONSERVATIVE TARGET 2007 Lowest contract charges 18 10.34 189 Highest contract charges 840 11.48 9,638 Remaining contract charges -- -- -- FRANKLIN TEMPLETON GROWTH TARGET FUND 2007 Lowest contract charges 38 10.32 391 Highest contract charges 11,494 12.14 139,528 Remaining contract charges 204 -- 2,486 2006 Lowest contract charges 87 11.12 971 Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN TEMPLETON MODERATE TARGET FUND 2007 Lowest contract charges 2,305 10.34 23,831 Highest contract charges 35,306 11.76 415,054 Remaining contract charges 683 -- 8,088 2006 Lowest contract charges 857 10.88 9,321 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- FRANKLIN SMALL-MID CAP GROWTH FUND 2007 Lowest contract charges -- -- 11.67% Highest contract charges 1.25% -- 10.28% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 7.52% Highest contract charges 1.25% -- 6.19% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.21% 10.55% Highest contract charges 1.24% 0.19% 9.17% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 13.04% Highest contract charges 1.24% -- 11.63% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 37.68% Highest contract charges 1.24% -- 35.97% Remaining contract charges -- -- -- FRANKLIN TEMPLETON CONSERVATIVE TARGET 2007 Lowest contract charges 0.04% 7.26% 3.41% Highest contract charges 1.24% 4.98% 6.94% Remaining contract charges -- -- -- FRANKLIN TEMPLETON GROWTH TARGET FUND 2007 Lowest contract charges 0.11% 4.76% 3.23% Highest contract charges 1.24% 6.00% 9.21% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.72% 8.52% 11.36% Highest contract charges -- -- -- Remaining contract charges -- -- -- FRANKLIN TEMPLETON MODERATE TARGET FUND 2007 Lowest contract charges 0.24% 3.13% 3.41% Highest contract charges 1.22% 12.46% 8.04% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.71% 11.59% 9.17% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-176
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- TEMPLETON FOREIGN FUND 2007 Lowest contract charges 10,883 $21.70 $236,170 Highest contract charges 9,311 20.56 191,446 Remaining contract charges 160,998 -- 3,440,620 2006 Lowest contract charges 13,170 18.51 243,752 Highest contract charges 4,998 17.76 88,746 Remaining contract charges 174,594 -- 3,200,989 2005 Lowest contract charges 11,230 15.43 173,314 Highest contract charges 3,613 14.99 54,163 Remaining contract charges 196,249 -- 3,040,094 2004 Lowest contract charges 10,348 13.95 144,341 Highest contract charges 1,559 13.72 21,398 Remaining contract charges 118,064 -- 1,664,995 2003 Lowest contract charges 9,857 11.81 116,381 Highest contract charges 195 11.76 2,292 Remaining contract charges 33,467 -- 401,125 GE PREMIER GROWTH EQUITY FUND 2007 Lowest contract charges 595 12.39 7,375 Highest contract charges 130 11.16 1,448 Remaining contract charges -- -- -- 2006 Lowest contract charges 72 11.90 856 Highest contract charges 34 10.77 366 Remaining contract charges -- -- -- GOLDMAN SACHS CAPITAL GROWTH FUND 2007 Lowest contract charges 182 11.80 2,147 Highest contract charges -- -- -- Remaining contract charges -- -- -- GOLDMAN SACHS CORE FIXED INCOME FUND 2007 Lowest contract charges 178 10.85 1,935 Highest contract charges -- -- -- Remaining contract charges -- -- -- GOLDMAN SACHS GOVERNMENT INCOME FUND 2007 Lowest contract charges 1,532 10.97 16,798 Highest contract charges 509 10.90 5,545 Remaining contract charges -- -- -- GOLDMAN SACHS GROWTH & INCOME FUND 2007 Lowest contract charges 1,979 11.66 23,075 Highest contract charges 60,476 11.59 700,861 Remaining contract charges -- -- -- GOLDMAN SACHS GROWTH OPPORTUNITIES FUND 2007 Lowest contract charges 351 12.73 4,472 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- TEMPLETON FOREIGN FUND 2007 Lowest contract charges -- 1.41% 17.25% Highest contract charges 1.24% 1.94% 15.79% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.29% 19.93% Highest contract charges 1.24% 2.00% 18.44% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 2.18% 10.63% Highest contract charges 1.24% 2.25% 9.26% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 2.05% 18.14% Highest contract charges 1.24% 2.62% 16.67% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 3.51% 30.51% Highest contract charges 1.25% 2.79% 28.90% Remaining contract charges -- -- -- GE PREMIER GROWTH EQUITY FUND 2007 Lowest contract charges 0.83% -- 4.09% Highest contract charges 1.26% -- 3.68% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.79% -- 7.74% Highest contract charges 1.10% -- 7.31% Remaining contract charges -- -- -- GOLDMAN SACHS CAPITAL GROWTH FUND 2007 Lowest contract charges 1.24% -- 8.22% Highest contract charges -- -- -- Remaining contract charges -- -- -- GOLDMAN SACHS CORE FIXED INCOME FUND 2007 Lowest contract charges 1.20% 5.60% 5.09% Highest contract charges -- -- -- Remaining contract charges -- -- -- GOLDMAN SACHS GOVERNMENT INCOME FUND 2007 Lowest contract charges 0.82% 4.54% 6.12% Highest contract charges 1.07% 6.62% 5.70% Remaining contract charges -- -- -- GOLDMAN SACHS GROWTH & INCOME FUND 2007 Lowest contract charges 0.83% 1.41% 0.56% Highest contract charges 1.24% 2.07% 0.16% Remaining contract charges -- -- -- GOLDMAN SACHS GROWTH OPPORTUNITIES FUND 2007 Lowest contract charges 1.24% -- 17.85% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-177 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- GOLDMAN SACHS MID CAP VALUE FUND 2007 Lowest contract charges 40,131 $35.35 $1,418,630 Highest contract charges 35,767 17.64 630,855 Remaining contract charges 69,626 -- 1,272,793 2006 Lowest contract charges 23,232 18.11 420,808 Highest contract charges 1,938 17.36 33,629 Remaining contract charges 20,995 -- 376,659 2005 Lowest contract charges 1,476 15.43 22,775 Highest contract charges 24 15.20 365 Remaining contract charges -- -- -- GOLDMAN SACHS SMALL CAP VALUE FUND 2007 Lowest contract charges 15,331 8.83 135,399 Highest contract charges 5,030 10.30 51,832 Remaining contract charges 2,882 -- 29,910 GOLDMAN SACHS HIGH YIELD FUND 2007 Lowest contract charges 2,694 7.62 20,525 Highest contract charges 4,025 11.13 44,788 Remaining contract charges 22,698 -- 260,589 2006 Lowest contract charges 581 8.11 4,711 Highest contract charges 1,792 11.08 19,850 Remaining contract charges 17,924 -- 204,331 2005 Lowest contract charges 50 10.29 512 Highest contract charges -- -- -- Remaining contract charges -- -- -- JOHN HANCOCK SMALL CAP EQUITY FUND 2007 Lowest contract charges 592 12.70 7,517 Highest contract charges 10,902 11.80 128,612 Remaining contract charges 113,130 -- 1,356,979 2006 Lowest contract charges 4,435 12.52 55,513 Highest contract charges 10,528 11.78 123,984 Remaining contract charges 119,606 -- 1,419,522 2005 Lowest contract charges 5,888 11.72 68,984 Highest contract charges 7,792 11.16 86,962 Remaining contract charges 105,529 -- 1,181,063 2004 Lowest contract charges 9,725 10.82 105,267 Highest contract charges 1,943 10.44 20,287 Remaining contract charges 64,251 -- 677,084 2003 Lowest contract charges 7,443 9.59 71,381 Highest contract charges 88 9.37 825 Remaining contract charges 26,594 -- 253,111 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- GOLDMAN SACHS MID CAP VALUE FUND 2007 Lowest contract charges -- 1.73% (8.49)% Highest contract charges 1.24% 1.14% 1.63% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 1.78% 15.21% Highest contract charges 1.24% 1.14% 14.18% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 1.12% 2.82% Highest contract charges 1.09% 2.19% 2.63% Remaining contract charges -- -- -- GOLDMAN SACHS SMALL CAP VALUE FUND 2007 Lowest contract charges 0.29% -- (11.68)% Highest contract charges 1.32% -- (6.88)% Remaining contract charges -- -- -- GOLDMAN SACHS HIGH YIELD FUND 2007 Lowest contract charges -- 8.03% (6.04)% Highest contract charges 1.24% 8.09% 0.44% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 8.43% 3.18% Highest contract charges 1.23% 9.16% 9.91% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.75% 7.73% 0.98% Highest contract charges -- -- -- Remaining contract charges -- -- -- JOHN HANCOCK SMALL CAP EQUITY FUND 2007 Lowest contract charges -- -- 1.43% Highest contract charges 1.25% -- 0.17% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 6.84% Highest contract charges 1.25% -- 5.51% Remaining contract charges -- -- -- 2005 Lowest contract charges -- -- 8.23% Highest contract charges 1.24% -- 6.89% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 12.86% Highest contract charges 1.24% -- 11.46% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 48.91% Highest contract charges 1.22% -- 47.07% Remaining contract charges -- -- --
SA-178
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND 2007 Lowest contract charges 362,272 $12.26 $4,442,024 Highest contract charges 13 11.55 146 Remaining contract charges 151,164 -- 1,453,797 2006 Lowest contract charges 3,473 8.41 29,219 Highest contract charges 26,191 12.02 314,863 Remaining contract charges 467,328 -- 5,039,472 2005 Lowest contract charges 2,588 7.60 19,666 Highest contract charges 22,512 11.00 247,542 Remaining contract charges 436,020 -- 4,483,080 2004 Lowest contract charges 1,659 7.09 11,759 Highest contract charges 8,902 10.38 92,426 Remaining contract charges 341,170 -- 3,513,834 2003 Lowest contract charges 709 6.83 4,841 Highest contract charges 3,830 10.13 38,814 Remaining contract charges 312,655 -- 3,073,019 HARTFORD LARGECAP GROWTH HLS FUND 2007 Lowest contract charges 4,070 10.27 41,808 Highest contract charges 2,952 10.18 30,060 Remaining contract charges 9,085 -- 92,880 HARTFORD TOTAL RETURN BOND HLS FUND 2007 Lowest contract charges 23,464 11.15 261,525 Highest contract charges 53,428 12.90 689,202 Remaining contract charges 710,759 -- 7,892,598 2006 Lowest contract charges 36 11.24 408 Highest contract charges 33,412 12.48 416,950 Remaining contract charges 614,005 -- 6,386,607 2005 Lowest contract charges 15,621 7.50 117,199 Highest contract charges 23,637 12.06 284,996 Remaining contract charges 644,055 -- 5,909,345 2004 Lowest contract charges 23,979 7.32 175,595 Highest contract charges 16,931 11.92 201,768 Remaining contract charges 402,199 -- 3,873,094 2003 Lowest contract charges 18,734 7.00 131,125 Highest contract charges 1,184 11.53 13,659 Remaining contract charges 221,716 -- 2,258,111 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD ADVISERS HLS FUND 2007 Lowest contract charges 0.50% 2.29% 6.10% Highest contract charges 1.19% 12.49% 5.05% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.78% 10.70% Highest contract charges 1.25% 2.59% 9.33% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 3.68% 7.24% Highest contract charges 1.24% 4.05% 5.90% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 2.49% 3.74% Highest contract charges 1.24% 2.57% 2.46% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 6.94% 18.49% Highest contract charges 1.23% 4.30% 17.02% Remaining contract charges -- -- -- HARTFORD LARGECAP GROWTH HLS FUND 2007 Lowest contract charges 0.33% 0.60% 3.01% Highest contract charges 1.18% 0.66% 2.14% Remaining contract charges -- -- -- HARTFORD TOTAL RETURN BOND HLS FUND 2007 Lowest contract charges -- 16.49% (0.82)% Highest contract charges 1.24% 6.02% 3.37% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 31.32% (0.27)% Highest contract charges 1.25% 5.78% 3.50% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 5.61% 2.45% Highest contract charges 1.24% 7.70% 1.18% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 4.31% 4.62% Highest contract charges 1.24% 4.85% 3.33% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 5.09% 7.85% Highest contract charges 1.23% 2.86% 6.51% Remaining contract charges -- -- --
SA-179 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND 2007 Lowest contract charges 28,702 $28.14 $807,786 Highest contract charges 95,577 20.92 1,999,641 Remaining contract charges 1,091,640 -- 23,898,129 2006 Lowest contract charges 25,295 24.09 609,349 Highest contract charges 81,866 18.13 1,484,519 Remaining contract charges 1,054,010 -- 20,070,548 2005 Lowest contract charges 24,527 20.66 506,677 Highest contract charges 60,900 15.75 958,902 Remaining contract charges 907,404 -- 15,688,895 2004 Lowest contract charges 22,293 17.88 398,581 Highest contract charges 30,537 13.80 421,356 Remaining contract charges 591,800 -- 8,534,187 2003 Lowest contract charges 5,932 14.98 88,854 Highest contract charges 4,897 11.71 57,326 Remaining contract charges 418,173 -- 5,050,402 HARTFORD DIVIDEND AND GROWTH HLS FUND 2007 Lowest contract charges 371,850 4.23 1,572,885 Highest contract charges 4,616 12.29 56,743 Remaining contract charges 1,024,150 -- 8,136,273 2006 Lowest contract charges 402,975 3.91 1,574,554 Highest contract charges 62,620 14.62 915,770 Remaining contract charges 1,008,151 -- 6,368,989 2005 Lowest contract charges 414,211 3.25 1,344,677 Highest contract charges 42,791 12.30 526,464 Remaining contract charges 1,218,431 -- 5,411,231 2004 Lowest contract charges 439,959 3.06 1,347,928 Highest contract charges 20,087 11.76 236,170 Remaining contract charges 633,200 -- 3,282,368 2003 Lowest contract charges 450,807 2.73 1,228,562 Highest contract charges 5,094 10.59 53,948 Remaining contract charges 243,432 -- 1,492,430 HARTFORD GLOBAL ADVISERS HLS FUND 2007 Lowest contract charges 7,710 1.59 12,227 Highest contract charges 1,631 1.95 3,176 Remaining contract charges 7,223 -- 100,573 2006 Lowest contract charges 6,700 12.04 80,696 Highest contract charges 694 1.69 1,174 Remaining contract charges -- -- -- 2005 Lowest contract charges 11 11.16 128 Highest contract charges 81 1.57 127 Remaining contract charges -- -- -- HARTFORD GLOBAL COMMUNICATIONS HLS FUND 2007 Lowest contract charges 7 16.31 128 Highest contract charges 5 16.21 57 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND 2007 Lowest contract charges -- 0.13% 16.83% Highest contract charges 1.25% 0.13% 15.38% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.59% 16.62% Highest contract charges 1.25% 1.57% 15.17% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.92% 15.55% Highest contract charges 1.24% 1.15% 14.11% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 0.45% 19.36% Highest contract charges 1.24% 0.47% 17.88% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 2.40% 42.38% Highest contract charges 1.24% 1.34% 40.61% Remaining contract charges -- -- -- HARTFORD DIVIDEND AND GROWTH HLS FUND 2007 Lowest contract charges -- 1.71% 8.26% Highest contract charges 1.23% 3.16% 6.64% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.82% 20.36% Highest contract charges 1.25% 2.10% 18.87% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.85% 5.96% Highest contract charges 1.24% 2.31% 4.64% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.40% 12.42% Highest contract charges 1.24% 2.01% 11.03% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 2.47% 26.80% Highest contract charges 1.23% 5.01% 25.22% Remaining contract charges -- -- -- HARTFORD GLOBAL ADVISERS HLS FUND 2007 Lowest contract charges 0.35% 4.01% 16.18% Highest contract charges 1.24% 1.19% 15.14% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 3.49% 7.91% Highest contract charges 1.27% 4.80% 7.48% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.48% 6.04% 4.19% Highest contract charges 0.69% 13.82% 4.00% Remaining contract charges -- -- -- HARTFORD GLOBAL COMMUNICATIONS HLS FUND 2007 Lowest contract charges 0.33% 4.12% 22.03% Highest contract charges 0.70% 4.01% 21.54% Remaining contract charges -- -- --
SA-180
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND 2007 Lowest contract charges 2,526 $20.24 $51,123 Highest contract charges 1,084 11.93 12,935 Remaining contract charges 46,292 -- 840,997 2006 Lowest contract charges 3,430 19.07 65,415 Highest contract charges 3,908 14.89 58,170 Remaining contract charges 33,807 -- 614,681 2005 Lowest contract charges 8,372 17.15 143,592 Highest contract charges 2,807 13.56 38,054 Remaining contract charges 28,043 -- 410,347 2004 Lowest contract charges 7,924 15.25 120,886 Highest contract charges 973 12.21 11,881 Remaining contract charges 13,509 -- 170,085 2003 Lowest contract charges 11,585 13.52 156,673 Highest contract charges 122 10.96 1,341 Remaining contract charges 7,816 -- 87,774 HARTFORD GLOBAL GROWTH HLS FUND 2007 Lowest contract charges 8 13.88 114 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL TECHNOLOGY HLS FUND 2007 Lowest contract charges 4,122 7.01 28,908 Highest contract charges 941 13.08 12,303 Remaining contract charges 29,936 -- 234,775 2006 Lowest contract charges 3,784 6.16 23,303 Highest contract charges 1,692 12.56 21,256 Remaining contract charges 18,260 -- 108,567 2005 Lowest contract charges 5,747 5.58 32,074 Highest contract charges 1,296 11.52 14,940 Remaining contract charges 13,926 -- 105,850 2004 Lowest contract charges 5,746 5.02 28,855 Highest contract charges 750 10.50 7,869 Remaining contract charges 3,660 -- 34,952 2003 Lowest contract charges 2,183 4.95 10,817 Highest contract charges 411 10.49 4,314 Remaining contract charges 1,903 -- 19,598 HARTFORD GROWTH HLS FUND 2007 Lowest contract charges 11,935 13.58 162,062 Highest contract charges 2,059 12.34 25,414 Remaining contract charges 449 -- 5,631 2006 Lowest contract charges 4,058 11.73 47,591 Highest contract charges 1,797 10.70 19,237 Remaining contract charges -- -- -- 2005 Lowest contract charges 239 11.31 2,706 Highest contract charges 29 10.36 301 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND 2007 Lowest contract charges -- 0.11% 6.12% Highest contract charges 1.23% -- 4.54% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.07% 11.19% Highest contract charges 1.25% 0.07% 9.80% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.07% 12.43% Highest contract charges 1.24% 0.10% 11.03% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 0.05% 12.80% Highest contract charges 1.23% 0.05% 11.40% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 32.31% Highest contract charges 1.21% 0.06% 30.67% Remaining contract charges -- -- -- HARTFORD GLOBAL GROWTH HLS FUND 2007 Lowest contract charges 0.53% -- 23.19% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL TECHNOLOGY HLS FUND 2007 Lowest contract charges -- -- 13.86% Highest contract charges 1.24% -- 12.17% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 10.35% Highest contract charges 1.25% -- 8.98% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.28% 11.15% Highest contract charges 1.24% 0.32% 9.77% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 1.35% Highest contract charges 1.25% -- 0.09% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 61.50% Highest contract charges 1.21% -- 59.50% Remaining contract charges -- -- -- HARTFORD GROWTH HLS FUND 2007 Lowest contract charges 0.84% 0.02% 15.79% Highest contract charges 1.25% 0.02% 15.33% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.13% 3.73% Highest contract charges 1.21% 0.46% 3.31% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.82% -- 3.78% Highest contract charges 1.10% -- 4.07% Remaining contract charges -- -- --
SA-181 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD GROWTH OPPORTUNITIES HLS FUND 2007 Lowest contract charges 7 $32.75 $227 Highest contract charges 1,157 14.25 16,494 Remaining contract charges 25,791 -- 379,114 2006 Lowest contract charges 1,925 12.22 23,517 Highest contract charges 1,293 12.15 15,707 Remaining contract charges -- -- -- 2005 Lowest contract charges 12 10.98 129 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INDEX HLS FUND 2007 Lowest contract charges 40,807 2.33 94,979 Highest contract charges 37 11.69 431 Remaining contract charges 1,123,933 -- 6,681,695 2006 Lowest contract charges 80,493 2.21 178,087 Highest contract charges 22,763 12.79 291,150 Remaining contract charges 1,034,535 -- 5,562,083 2005 Lowest contract charges 160,752 1.92 308,048 Highest contract charges 16,751 11.22 187,913 Remaining contract charges 1,158,297 -- 4,974,524 2004 Lowest contract charges 387,561 1.83 710,677 Highest contract charges 3,130 10.87 34,027 Remaining contract charges 596,893 -- 3,597,324 2003 Lowest contract charges 415,789 1.66 690,656 Highest contract charges 771 9.97 7,690 Remaining contract charges 307,143 -- 2,387,558 HARTFORD INTERNATIONAL GROWTH HLS FUND 2007 Lowest contract charges 4,259 16.77 71,431 Highest contract charges 1,605 16.70 26,797 Remaining contract charges 1,770 -- 32,442 2006 Lowest contract charges 4,082 13.58 55,450 Highest contract charges 1,649 13.64 22,506 Remaining contract charges 1,758 -- 26,220 2005 Lowest contract charges 539 12.12 6,538 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2007 Lowest contract charges 105 14.93 1,578 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD GROWTH OPPORTUNITIES HLS FUND 2007 Lowest contract charges -- 1.15% 8.71% Highest contract charges 1.23% 0.03% 27.72% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 3.16% 11.11% Highest contract charges 1.25% 2.59% 10.66% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.68% 1.51% 9.81% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INDEX HLS FUND 2007 Lowest contract charges -- 1.60% 5.20% Highest contract charges 1.15% 4.87% 3.64% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.77% 15.46% Highest contract charges 1.25% 1.99% 14.02% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.68% 4.50% Highest contract charges 1.24% 3.00% 3.21% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.29% 10.39% Highest contract charges 1.24% 1.90% 9.02% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 2.95% 28.13% Highest contract charges 1.22% 3.76% 26.54% Remaining contract charges -- -- -- HARTFORD INTERNATIONAL GROWTH HLS FUND 2007 Lowest contract charges 0.35% 0.75% 23.48% Highest contract charges 1.24% 0.57% 22.37% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.34% 2.97% 23.65% Highest contract charges 1.24% 2.07% 22.54% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 2.24% 11.56% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2007 Lowest contract charges 1.22% 4.41% 25.53% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-182
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD MIDCAP HLS FUND 2007 Lowest contract charges 30,209 $20.14 $608,253 Highest contract charges 9,075 19.49 176,897 Remaining contract charges 386,579 -- 7,776,633 2006 Lowest contract charges 38,813 17.46 677,806 Highest contract charges 7,368 17.12 126,139 Remaining contract charges 385,885 -- 6,769,503 2005 Lowest contract charges 57,023 15.63 891,160 Highest contract charges 5,221 15.51 80,988 Remaining contract charges 397,192 -- 6,190,309 2004 Lowest contract charges 51,043 13.38 683,051 Highest contract charges 3,900 13.45 52,462 Remaining contract charges 300,088 -- 4,032,505 2003 Lowest contract charges 64,115 11.49 736,875 Highest contract charges 1,825 11.70 21,349 Remaining contract charges 166,302 -- 1,929,554 HARTFORD MONEY MARKET HLS FUND 2007 Lowest contract charges 39,182 12.28 481,072 Highest contract charges 20,558 10.54 216,595 Remaining contract charges 478,855 -- 4,701,245 2006 Lowest contract charges 20,032 11.70 234,358 Highest contract charges 2,947 10.43 30,747 Remaining contract charges 344,216 -- 2,472,951 2005 Lowest contract charges 31,471 11.17 351,645 Highest contract charges 1,869 10.09 18,856 Remaining contract charges 125,100 -- 873,936 2004 Lowest contract charges 27,397 10.86 297,663 Highest contract charges 901 9.93 8,951 Remaining contract charges 84,492 -- 382,618 2003 Lowest contract charges 3,346 10.76 36,017 Highest contract charges 553 9.96 5,507 Remaining contract charges 59,663 -- 291,173 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD MIDCAP HLS FUND 2007 Lowest contract charges -- 0.49% 15.30% Highest contract charges 1.25% 0.56% 13.87% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.87% 11.74% Highest contract charges 1.25% 1.32% 10.36% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.41% 16.78% Highest contract charges 1.24% 0.45% 15.33% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 0.24% 16.44% Highest contract charges 1.24% 0.36% 14.99% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 0.43% 37.67% Highest contract charges 1.24% 0.38% 35.96% Remaining contract charges -- -- -- HARTFORD MONEY MARKET HLS FUND 2007 Lowest contract charges -- 4.77% 4.95% Highest contract charges 1.24% 4.50% 3.38% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 4.57% 4.70% Highest contract charges 1.25% 4.64% 3.40% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 2.85% 2.84% Highest contract charges 1.24% 2.95% 1.57% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.07% 0.94% Highest contract charges 1.24% 0.87% (0.31)% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 0.65% 0.75% Highest contract charges 1.24% 0.69% (0.50)% Remaining contract charges -- -- --
SA-183 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND 2007 Lowest contract charges 31,758 $13.39 $425,340 Highest contract charges 7,804 11.70 91,334 Remaining contract charges 78,006 -- 318,221 2006 Lowest contract charges 31,038 13.02 404,081 Highest contract charges 6,805 11.46 78,001 Remaining contract charges 90,235 -- 357,125 2005 Lowest contract charges 34,723 11.35 394,075 Highest contract charges 5,637 11.09 62,507 Remaining contract charges 72,473 -- 270,374 2004 Lowest contract charges 35,215 11.16 392,986 Highest contract charges 2,977 10.97 32,650 Remaining contract charges 17,599 -- 64,688 2003 Lowest contract charges 29,945 10.79 323,031 Highest contract charges 2,135 10.67 22,775 Remaining contract charges 10,099 -- 35,957 HARTFORD SMALL COMPANY HLS FUND 2007 Lowest contract charges 78,833 3.09 243,241 Highest contract charges 16,537 18.98 313,951 Remaining contract charges 255,599 -- 1,862,723 2006 Lowest contract charges 73,234 2.70 197,822 Highest contract charges 13,308 16.83 223,964 Remaining contract charges 293,300 -- 2,189,763 2005 Lowest contract charges 56,311 2.36 132,933 Highest contract charges 10,022 14.89 149,250 Remaining contract charges 740,424 -- 2,403,581 2004 Lowest contract charges 72,607 1.95 141,647 Highest contract charges 6,048 12.46 75,366 Remaining contract charges 543,279 -- 1,456,616 2003 Lowest contract charges 42,938 1.74 74,670 Highest contract charges 134 11.25 1,504 Remaining contract charges 175,438 -- 328,496 HARTFORD SMALLCAP GROWTH HLS FUND 2007 Lowest contract charges 20 18.71 382 Highest contract charges 113 10.98 1,238 Remaining contract charges 3,106 -- 33,158 2006 Lowest contract charges 1,220 10.85 13,228 Highest contract charges 2 11.35 24 Remaining contract charges 293 -- 3,158 2005 Lowest contract charges 200 10.24 2,047 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND 2007 Lowest contract charges 0.50% 5.44% 2.88% Highest contract charges 1.25% 5.54% 2.11% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.50% 11.91% 4.15% Highest contract charges 1.25% 10.86% 3.37% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 3.95% 1.70% Highest contract charges 1.24% 3.48% 1.09% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 4.82% 3.45% Highest contract charges 1.25% 4.75% 2.83% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 3.08% 1.63% Highest contract charges 1.24% 4.31% 1.02% Remaining contract charges -- -- -- HARTFORD SMALL COMPANY HLS FUND 2007 Lowest contract charges -- 0.22% 14.23% Highest contract charges 1.25% 0.26% 12.81% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.21% 14.43% Highest contract charges 1.25% 0.21% 13.00% Remaining contract charges -- -- -- 2005 Lowest contract charges -- -- 21.01% Highest contract charges 1.24% -- 19.51% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 12.18% Highest contract charges 1.24% -- 10.79% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 55.87% Highest contract charges 1.19% -- 53.94% Remaining contract charges -- -- -- HARTFORD SMALLCAP GROWTH HLS FUND 2007 Lowest contract charges -- 0.50% (10.03)% Highest contract charges 1.14% 0.07% (3.31)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 1.00% 5.95% Highest contract charges -- 0.76% 9.37% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.85% 1.26% 3.10% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-184
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- HARTFORD STOCK HLS FUND 2007 Lowest contract charges 4,847 $24.60 $119,222 Highest contract charges 14,660 12.72 186,430 Remaining contract charges 313,771 -- 3,852,636 2006 Lowest contract charges 6,122 23.22 142,174 Highest contract charges 17,386 12.16 211,404 Remaining contract charges 325,075 -- 3,785,723 2005 Lowest contract charges 6,926 20.26 140,301 Highest contract charges 13,384 10.74 143,729 Remaining contract charges 306,174 -- 3,500,677 2004 Lowest contract charges 13,437 18.48 248,299 Highest contract charges 10,145 9.92 100,629 Remaining contract charges 243,921 -- 2,505,508 2003 Lowest contract charges 30,746 17.74 545,412 Highest contract charges 3,433 9.64 33,099 Remaining contract charges 214,639 -- 2,116,921 HARTFORD VALUE OPPORTUNITIES HLS FUND 2007 Lowest contract charges 2,786 15.42 42,960 Highest contract charges 1,402 10.93 15,323 Remaining contract charges 73,286 -- 816,827 2006 Lowest contract charges 1,208 19.74 23,836 Highest contract charges 557 12.15 6,771 Remaining contract charges 21,138 -- 259,735 2005 Lowest contract charges 180 10.36 1,869 Highest contract charges -- -- -- Remaining contract charges -- -- -- HOTCHKIS AND WILEY LARGE CAP VALUE FUND 2007 Lowest contract charges 31,337 13.02 407,939 Highest contract charges 7,308 12.60 92,075 Remaining contract charges 13,878 -- 177,410 2006 Lowest contract charges 25,797 14.64 377,580 Highest contract charges 2,610 14.29 37,311 Remaining contract charges 11,549 -- 166,825 2005 Lowest contract charges 4,623 12.85 59,395 Highest contract charges 561 12.76 7,162 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- HARTFORD STOCK HLS FUND 2007 Lowest contract charges -- 0.96% 5.90% Highest contract charges 1.25% 0.94% 4.59% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.20% 14.65% Highest contract charges 1.25% 1.55% 13.23% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.32% 9.62% Highest contract charges 1.24% 2.09% 8.26% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.12% 4.17% Highest contract charges 1.24% 1.47% 2.88% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 1.60% 26.47% Highest contract charges 1.24% 2.28% 24.90% Remaining contract charges -- -- -- HARTFORD VALUE OPPORTUNITIES HLS FUND 2007 Lowest contract charges -- 1.20% (21.86)% Highest contract charges 1.23% 2.82% (7.69)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 3.86% 4.26% Highest contract charges 1.24% 6.97% 17.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.82% 2.87% 4.18% Highest contract charges -- -- -- Remaining contract charges -- -- -- HOTCHKIS AND WILEY LARGE CAP VALUE FUND 2007 Lowest contract charges 0.35% 0.82% (11.06)% Highest contract charges 1.24% 0.96% (11.86)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 1.79% 13.00% Highest contract charges 1.25% 1.34% 11.99% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 1.85% 0.10% Highest contract charges 1.18% 3.79% (0.08)% Remaining contract charges -- -- --
SA-185 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AIM FINANCIAL SERVICES FUND 2007 Lowest contract charges 87 $11.05 $956 Highest contract charges 1,074 10.51 11,292 Remaining contract charges 35,344 -- 385,723 2006 Lowest contract charges 87 14.33 1,241 Highest contract charges 1,257 13.81 17,355 Remaining contract charges 33,671 -- 480,090 2005 Lowest contract charges 24,260 12.30 298,512 Highest contract charges 1,472 12.02 17,698 Remaining contract charges 11,471 -- 140,726 2004 Lowest contract charges 19,858 11.76 233,622 Highest contract charges 948 11.56 10,964 Remaining contract charges 4,130 -- 48,540 2003 Lowest contract charges 880 10.79 9,489 Highest contract charges 209 10.79 2,258 Remaining contract charges 15,031 -- 164,087 AIM LEISURE FUND 2007 Lowest contract charges 920 16.37 15,064 Highest contract charges 3,361 14.39 48,387 Remaining contract charges 36,321 -- 525,621 2006 Lowest contract charges 920 16.52 15,201 Highest contract charges 940 14.71 13,831 Remaining contract charges 36,882 -- 545,666 2005 Lowest contract charges 42,514 12.27 521,718 Highest contract charges 1,278 11.99 15,319 Remaining contract charges 10,498 -- 128,488 2004 Lowest contract charges 113 13.46 1,515 Highest contract charges 1,433 12.29 17,620 Remaining contract charges 36,315 -- 454,135 2003 Lowest contract charges 7,021 11.08 77,799 Highest contract charges 307 10.96 3,362 Remaining contract charges 19,932 -- 221,164 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AIM FINANCIAL SERVICES FUND 2007 Lowest contract charges -- 1.66% (22.92)% Highest contract charges 1.25% 1.67% (23.88)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 6.32% 16.29% Highest contract charges 1.25% 1.09% 14.85% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 1.52% 4.59% Highest contract charges 1.24% 1.60% 3.96% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 1.60% 7.84% Highest contract charges 1.23% 1.60% 7.19% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 0.94% 29.50% Highest contract charges 1.24% 0.77% 27.89% Remaining contract charges -- -- -- AIM LEISURE FUND 2007 Lowest contract charges -- 0.74% (0.90)% Highest contract charges 1.25% 1.02% (2.13)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 9.52% 24.22% Highest contract charges 1.25% 1.89% 22.67% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 1.15% (1.87)% Highest contract charges 1.25% 1.01% (2.46)% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 13.60% Highest contract charges 1.23% 1.91% 12.19% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% -- 29.46% Highest contract charges 1.25% -- 28.69% Remaining contract charges -- -- --
SA-186
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- AIM TECHNOLOGY FUND 2007 Lowest contract charges 9,394 $9.86 $92,609 Highest contract charges 976 9.29 9,063 Remaining contract charges 27,777 -- 230,501 2006 Lowest contract charges 7,228 9.21 66,598 Highest contract charges 605 8.76 5,294 Remaining contract charges 25,456 -- 197,544 2005 Lowest contract charges 3,384 8.41 28,442 Highest contract charges 276 8.06 2,223 Remaining contract charges 17,275 -- 127,910 2004 Lowest contract charges 3,722 8.29 30,832 Highest contract charges 90 8.02 721 Remaining contract charges 9,402 -- 69,613 2003 Lowest contract charges 7,345 3.93 28,828 Highest contract charges 3 7.85 20 Remaining contract charges 6,975 -- 52,466 IVY GLOBAL NATURAL RESOURCES FUND 2007 Lowest contract charges 17,428 11.98 208,712 Highest contract charges 9,342 16.82 157,125 Remaining contract charges 7,415 -- 125,521 JANUS ADVISER FORTY FUND 2007 Lowest contract charges 2,118 20.86 44,175 Highest contract charges 3,754 19.38 72,763 Remaining contract charges 166,253 -- 2,963,102 2006 Lowest contract charges 4,818 15.39 74,129 Highest contract charges 2,906 14.48 42,067 Remaining contract charges 132,623 -- 1,818,956 2005 Lowest contract charges 6,032 13.96 84,231 Highest contract charges 1,658 13.30 22,057 Remaining contract charges 119,801 -- 1,604,539 2004 Lowest contract charges 11,205 12.18 136,524 Highest contract charges 349 11.75 4,101 Remaining contract charges 92,341 -- 1,099,845 2003 Lowest contract charges 11,079 10.36 114,750 Highest contract charges 229 10.12 2,313 Remaining contract charges 76,382 -- 780,693 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- AIM TECHNOLOGY FUND 2007 Lowest contract charges 0.35% -- 7.00% Highest contract charges 1.25% -- 6.04% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 9.62% Highest contract charges 1.25% -- 8.63% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% -- 1.45% Highest contract charges 1.24% -- 0.54% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% -- 3.01% Highest contract charges 1.22% -- 2.09% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 43.17% Highest contract charges 0.25% -- 41.39% Remaining contract charges -- -- -- IVY GLOBAL NATURAL RESOURCES FUND 2007 Lowest contract charges 0.30% 7.51% 17.46% Highest contract charges 1.23% 5.79% 41.94% Remaining contract charges -- -- -- JANUS ADVISER FORTY FUND 2007 Lowest contract charges -- 0.03% 35.57% Highest contract charges 1.24% 0.05% 33.89% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.06% 10.18% Highest contract charges 1.25% 0.10% 8.81% Remaining contract charges -- -- -- 2005 Lowest contract charges -- -- 14.60% Highest contract charges 1.24% -- 13.18% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 17.64% Highest contract charges 1.25% -- 16.18% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 18.92% Highest contract charges 1.25% -- 17.44% Remaining contract charges -- -- --
SA-187 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- JANUS ADVISER INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 22,025 $30.57 $673,255 Highest contract charges 14,261 28.40 405,076 Remaining contract charges 77,495 -- 2,277,770 2006 Lowest contract charges 20,379 24.23 493,832 Highest contract charges 7,470 22.80 170,311 Remaining contract charges 55,696 -- 1,308,994 2005 Lowest contract charges 1,390 16.76 23,282 Highest contract charges 3,269 15.96 52,186 Remaining contract charges 23,745 -- 387,750 2004 Lowest contract charges 396 12.72 5,035 Highest contract charges 582 12.27 7,142 Remaining contract charges 7,038 -- 87,865 2003 Lowest contract charges 6,538 10.48 68,543 Highest contract charges -- -- -- Remaining contract charges -- -- -- JANUS ADVISER WORLDWIDE FUND 2007 Lowest contract charges 2,238 12.13 27,131 Highest contract charges 636 12.58 8,003 Remaining contract charges 77,977 -- 216,665 2006 Lowest contract charges 2,238 11.13 24,910 Highest contract charges 505 11.69 5,908 Remaining contract charges 94,445 -- 213,658 2005 Lowest contract charges 8,505 10.36 88,129 Highest contract charges 348 10.12 3,522 Remaining contract charges 46,017 -- 46,935 2004 Lowest contract charges 8,551 9.83 84,079 Highest contract charges 250 9.66 2,417 Remaining contract charges 25,466 -- 24,696 2003 Lowest contract charges 3,862 9.45 36,498 Highest contract charges 137 9.34 1,281 Remaining contract charges 38,442 -- 35,900 KEELEY SMALL CAP VALUE FUND 2007 Lowest contract charges 10,941 27.28 298,476 Highest contract charges 6,012 13.78 82,850 Remaining contract charges 75,968 -- 1,019,877 2006 Lowest contract charges 35 26.08 920 Highest contract charges 1,225 13.02 15,957 Remaining contract charges 60,956 -- 773,536 2005 Lowest contract charges 3,432 11.05 37,923 Highest contract charges 143 11.03 1,577 Remaining contract charges -- -- -- LORD ABBETT AFFILIATED FUND 2007 Lowest contract charges 925 9.74 9,014 Highest contract charges 244 11.44 2,789 Remaining contract charges 33 -- 375 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- JANUS ADVISER INTERNATIONAL GROWTH FUND 2007 Lowest contract charges -- 1.14% 26.14% Highest contract charges 1.24% 1.40% 24.58% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.08% 44.63% Highest contract charges 1.25% 0.98% 42.84% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.22% 31.73% Highest contract charges 1.24% 1.23% 30.10% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.39% 19.85% Highest contract charges 1.20% 2.65% 18.36% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 1.18% 33.90% Highest contract charges -- -- -- Remaining contract charges -- -- -- JANUS ADVISER WORLDWIDE FUND 2007 Lowest contract charges -- 0.18% 8.92% Highest contract charges 1.25% 0.19% 7.57% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 47.84% 16.93% Highest contract charges 1.25% 2.54% 15.48% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.65% 0.81% 5.38% Highest contract charges 1.25% 0.93% 4.75% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 0.69% 4.06% Highest contract charges 1.24% 0.45% 3.43% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 0.78% 22.04% Highest contract charges 1.24% 0.98% 21.31% Remaining contract charges -- -- -- KEELEY SMALL CAP VALUE FUND 2007 Lowest contract charges -- -- 4.60% Highest contract charges 1.23% -- 5.84% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- (40.23)% Highest contract charges 1.24% -- 18.07% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 11.27% Highest contract charges 1.14% -- 11.07% Remaining contract charges -- -- -- LORD ABBETT AFFILIATED FUND 2007 Lowest contract charges 0.28% 1.07% (2.57)% Highest contract charges 1.22% 2.16% 2.27% Remaining contract charges -- -- --
SA-188
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- LORD ABBETT ALL VALUE FUND 2007 Lowest contract charges 1,020 $11.47 $11,703 Highest contract charges 624 11.40 7,123 Remaining contract charges -- -- -- LORD ABBETT BOND DEBENTURE FUND 2007 Lowest contract charges 199 11.24 2,236 Highest contract charges 8 11.07 84 Remaining contract charges 4,838 -- 53,897 LORD ABBETT AMERICA'S VALUE FUND 2007 Lowest contract charges 3 11.44 39 Highest contract charges -- -- -- Remaining contract charges -- -- -- LORD ABBETT SMALL CAP BLEND FUND 2007 Lowest contract charges 3,544 15.16 53,732 Highest contract charges 1,553 11.77 18,285 Remaining contract charges 46,949 -- 636,464 2006 Lowest contract charges 3,656 13.88 50,744 Highest contract charges 53 13.58 716 Remaining contract charges 24,291 -- 333,101 2005 Lowest contract charges 1,286 13.06 16,796 Highest contract charges 10 12.99 125 Remaining contract charges -- -- -- LORD ABBETT INTERNATIONAL CORE EQUITY FUND 2007 Lowest contract charges 4 10.26 40 Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON VALUE FUND 2007 Lowest contract charges 65 68.70 4,433 Highest contract charges 3,089 15.09 46,616 Remaining contract charges 30,631 -- 476,623 2006 Lowest contract charges 7 79.36 476 Highest contract charges 583 16.26 9,480 Remaining contract charges 35,261 -- 586,771 2005 Lowest contract charges 32 15.64 496 Highest contract charges -- -- -- Remaining contract charges -- -- -- MARSHALL MID-CAP VALUE FUND 2007 Lowest contract charges 7,276 9.53 69,330 Highest contract charges 315 11.35 3,574 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- LORD ABBETT ALL VALUE FUND 2007 Lowest contract charges 0.83% 2.60% 6.46% Highest contract charges 1.78% 0.92% 6.04% Remaining contract charges -- -- -- LORD ABBETT BOND DEBENTURE FUND 2007 Lowest contract charges 0.65% 4.13% 4.65% Highest contract charges 0.59% 5.60% 3.96% Remaining contract charges -- -- -- LORD ABBETT AMERICA'S VALUE FUND 2007 Lowest contract charges -- 16.35% 2.06% Highest contract charges -- -- -- Remaining contract charges -- -- -- LORD ABBETT SMALL CAP BLEND FUND 2007 Lowest contract charges 0.35% -- 9.24% Highest contract charges 1.01% -- 8.40% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 5.50% Highest contract charges 1.24% -- 4.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 4.79% Highest contract charges 0.67% -- 4.59% Remaining contract charges -- -- -- LORD ABBETT INTERNATIONAL CORE EQUITY FUND 2007 Lowest contract charges -- 4.98% 2.64% Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON VALUE FUND 2007 Lowest contract charges -- -- (13.43)% Highest contract charges 1.24% -- (7.21)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 6.57% Highest contract charges 1.24% -- 5.24% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% -- 4.98% Highest contract charges -- -- -- Remaining contract charges -- -- -- MARSHALL MID-CAP VALUE FUND 2007 Lowest contract charges 0.44% 0.55% (5.41)% Highest contract charges 1.23% 0.80% (0.50)% Remaining contract charges -- -- --
SA-189 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- MASSACHUSETTS INVESTORS GROWTH STOCK FUND 2007 Lowest contract charges 553 $9.20 $5,084 Highest contract charges 3,414 11.72 40,011 Remaining contract charges 158,724 -- 1,840,128 2006 Lowest contract charges 329 8.25 2,713 Highest contract charges 2,649 10.64 28,188 Remaining contract charges 152,254 -- 1,586,081 2005 Lowest contract charges 88,402 10.38 917,820 Highest contract charges 2,384 10.03 23,898 Remaining contract charges 104,935 -- 986,849 2004 Lowest contract charges 90,317 10.03 905,806 Highest contract charges 1,624 9.77 15,873 Remaining contract charges 89,006 -- 810,861 2003 Lowest contract charges 57,554 9.18 528,363 Highest contract charges 667 9.03 6,019 Remaining contract charges 23,780 -- 203,952 MFS HIGH INCOME FUND 2007 Lowest contract charges 6,336 14.91 94,435 Highest contract charges 5,503 14.59 80,274 Remaining contract charges 29,052 -- 415,124 2006 Lowest contract charges 5,323 14.65 77,984 Highest contract charges 4,709 14.52 68,388 Remaining contract charges 25,307 -- 357,974 2005 Lowest contract charges 3,511 13.28 46,628 Highest contract charges 5,696 13.32 75,896 Remaining contract charges 28,154 -- 365,902 2004 Lowest contract charges 4,257 12.98 55,243 Highest contract charges 6,586 13.18 86,828 Remaining contract charges 7,615 -- 98,928 2003 Lowest contract charges 408 11.86 4,839 Highest contract charges 298 12.20 3,636 Remaining contract charges 3,087 -- 37,203 MFS INTERNATIONAL NEW DISCOVERY FUND 2007 Lowest contract charges 351 24.33 8,545 Highest contract charges 512 12.70 6,501 Remaining contract charges 9,022 -- 175,227 2006 Lowest contract charges 20 27.34 551 Highest contract charges 59 18.63 1,106 Remaining contract charges 6,609 -- 118,662 2005 Lowest contract charges 152 14.27 2,170 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- MASSACHUSETTS INVESTORS GROWTH STOCK FUND 2007 Lowest contract charges -- 0.48% 11.51% Highest contract charges 1.25% 0.42% 10.12% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 7.48% Highest contract charges 1.25% -- 6.14% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% -- 3.52% Highest contract charges 1.25% -- 2.59% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% 0.48% 9.25% Highest contract charges 1.25% 0.56% 8.27% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% -- 22.22% Highest contract charges 1.24% -- 21.12% Remaining contract charges -- -- -- MFS HIGH INCOME FUND 2007 Lowest contract charges -- 7.70% 1.72% Highest contract charges 1.25% 7.75% 0.45% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 7.28% 10.35% Highest contract charges 1.25% 7.19% 8.98% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 7.73% 2.34% Highest contract charges 1.25% 7.72% 1.07% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 7.79% 9.42% Highest contract charges 1.24% 7.81% 8.06% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 7.86% 22.83% Highest contract charges 1.23% 7.84% 21.30% Remaining contract charges -- -- -- MFS INTERNATIONAL NEW DISCOVERY FUND 2007 Lowest contract charges -- 1.23% (11.01)% Highest contract charges 1.23% 2.09% 7.40% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 4.23% 14.68% Highest contract charges 1.25% 4.46% 25.28% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 1.64% 16.04% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-190
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- MFS MID CAP GROWTH FUND 2007 Lowest contract charges 71 $10.97 $783 Highest contract charges 12,062 10.19 122,974 Remaining contract charges 49,213 -- 514,353 2006 Lowest contract charges 71 10.02 715 Highest contract charges 9,957 9.43 93,881 Remaining contract charges 50,696 -- 486,064 2005 Lowest contract charges 982 9.81 9,628 Highest contract charges 9,325 9.34 87,125 Remaining contract charges 54,476 -- 515,826 2004 Lowest contract charges 477 9.55 4,555 Highest contract charges 9,031 9.21 83,207 Remaining contract charges 38,674 -- 360,269 2003 Lowest contract charges 3,829 8.24 31,559 Highest contract charges 545 8.15 4,444 Remaining contract charges 20,647 -- 163,168 MFS STRATEGIC VALUE FUND 2007 Lowest contract charges 13 10.93 142 Highest contract charges 2,520 10.87 27,381 Remaining contract charges -- -- -- MFS TOTAL RETURN FUND 2007 Lowest contract charges 149 11.32 1,682 Highest contract charges -- -- -- Remaining contract charges -- -- -- MFS UTILITIES FUND 2007 Lowest contract charges 5,572 20.91 116,484 Highest contract charges 9,248 27.43 253,702 Remaining contract charges 145,886 -- 2,679,166 2006 Lowest contract charges 3,312 16.39 54,279 Highest contract charges 6,119 21.77 133,231 Remaining contract charges 91,248 -- 1,441,658 2005 Lowest contract charges 859 12.46 10,706 Highest contract charges 4,750 16.76 79,600 Remaining contract charges 68,660 -- 938,521 2004 Lowest contract charges 9,060 14.78 133,898 Highest contract charges 113 14.53 1,639 Remaining contract charges 815 -- 8,454 2003 Lowest contract charges 5,611 11.45 64,248 Highest contract charges 49 11.32 559 Remaining contract charges 156 -- 1,254 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- MFS MID CAP GROWTH FUND 2007 Lowest contract charges -- -- 9.49% Highest contract charges 1.25% -- 8.13% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 2.18% Highest contract charges 1.25% -- 0.91% Remaining contract charges -- -- -- 2005 Lowest contract charges -- -- 2.69% Highest contract charges 1.25% -- 1.41% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 14.47% Highest contract charges 1.24% -- 13.05% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% -- 37.09% Highest contract charges 1.24% -- 36.27% Remaining contract charges -- -- -- MFS STRATEGIC VALUE FUND 2007 Lowest contract charges 0.47% 3.96% (3.19)% Highest contract charges 1.20% 3.19% (3.57)% Remaining contract charges -- -- -- MFS TOTAL RETURN FUND 2007 Lowest contract charges 1.20% 2.97% 3.56% Highest contract charges -- -- -- Remaining contract charges -- -- -- MFS UTILITIES FUND 2007 Lowest contract charges -- 1.98% 27.58% Highest contract charges 1.24% 2.09% 26.00% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.82% 31.55% Highest contract charges 1.25% 2.20% 29.92% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.57% 16.83% Highest contract charges 1.23% 1.59% 15.38% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.65% 1.40% 29.06% Highest contract charges 1.25% 1.38% 28.29% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 1.95% 35.10% Highest contract charges 1.16% 2.19% 34.30% Remaining contract charges -- -- --
SA-191 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- MFS VALUE FUND 2007 Lowest contract charges 3,244 $17.25 $55,977 Highest contract charges 7,245 16.03 116,150 Remaining contract charges 100,251 -- 1,675,089 2006 Lowest contract charges 2,140 16.03 34,312 Highest contract charges 6,655 15.09 100,403 Remaining contract charges 99,660 -- 1,556,454 2005 Lowest contract charges 850 13.29 11,289 Highest contract charges 4,225 12.66 53,477 Remaining contract charges 111,167 -- 1,442,721 2004 Lowest contract charges 2,607 12.51 32,615 Highest contract charges 2,173 12.07 26,225 Remaining contract charges 81,177 -- 997,875 2003 Lowest contract charges 30,412 10.74 326,560 Highest contract charges 373 10.62 3,965 Remaining contract charges 24,719 -- 268,735 MFS RESEARCH BOND FUND 2007 Lowest contract charges 1,239 10.72 13,277 Highest contract charges -- -- -- Remaining contract charges -- -- -- MFS CORE EQUITY FUND 2007 Lowest contract charges 85,859 10.04 861,933 Highest contract charges 490 10.00 4,901 Remaining contract charges 10,032 -- 100,532 BLACKROCK GLOBAL ALLOCATION FUND 2007 Lowest contract charges 46,656 11.70 546,045 Highest contract charges 78,724 13.09 1,030,819 Remaining contract charges -- -- -- BLACKROCK GLOBAL FINANCIAL SERVICES FUND 2007 Lowest contract charges 1,378 9.10 12,539 Highest contract charges 5 10.82 57 Remaining contract charges 11,105 -- 120,870 BLACKROCK LARGE CAP CORE FUND 2007 Lowest contract charges 10,397 9.57 99,474 Highest contract charges 14,104 12.01 169,337 Remaining contract charges -- -- -- BLACKROCK VALUE OPPORTUNITIES FUND 2007 Lowest contract charges 427 10.81 4,610 Highest contract charges -- -- -- Remaining contract charges -- -- -- BLACKROCK SMALL CAP GROWTH FUND 2007 Lowest contract charges 2,862 10.74 30,748 Highest contract charges 957 12.60 12,053 Remaining contract charges 2,611 -- 33,202 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- MFS VALUE FUND 2007 Lowest contract charges -- 1.28% 7.61% Highest contract charges 1.25% 1.21% 6.28% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 1.63% 20.67% Highest contract charges 1.25% 1.40% 19.17% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 1.34% 6.22% Highest contract charges 1.24% 1.32% 4.90% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 1.28% 15.08% Highest contract charges 1.23% 1.42% 13.65% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.65% 1.28% 23.89% Highest contract charges 1.25% 1.31% 23.15% Remaining contract charges -- -- -- MFS RESEARCH BOND FUND 2007 Lowest contract charges 0.88% 3.08% 2.42% Highest contract charges -- -- -- Remaining contract charges -- -- -- MFS CORE EQUITY FUND 2007 Lowest contract charges 0.28% -- 0.39% Highest contract charges 0.70% -- (0.04)% Remaining contract charges -- -- -- BLACKROCK GLOBAL ALLOCATION FUND 2007 Lowest contract charges 0.49% 6.54% 15.85% Highest contract charges 1.24% 5.68% 15.26% Remaining contract charges -- -- -- BLACKROCK GLOBAL FINANCIAL SERVICES FUND 2007 Lowest contract charges 0.24% 1.03% (9.01)% Highest contract charges 0.70% 7.01% (7.75)% Remaining contract charges -- -- -- BLACKROCK LARGE CAP CORE FUND 2007 Lowest contract charges 0.29% -- (3.14)% Highest contract charges 1.24% -- 3.56% Remaining contract charges -- -- -- BLACKROCK VALUE OPPORTUNITIES FUND 2007 Lowest contract charges 1.09% -- (2.58)% Highest contract charges -- -- -- Remaining contract charges -- -- -- BLACKROCK SMALL CAP GROWTH FUND 2007 Lowest contract charges 0.44% -- 5.80% Highest contract charges 1.23% -- 12.63% Remaining contract charges -- -- --
SA-192
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- BLACKROCK MID CAP VALUE OPPORTUNITIES FUND 2007 Lowest contract charges 338 $11.70 $3,951 Highest contract charges 1,641 11.59 19,010 Remaining contract charges -- -- -- 2006 Lowest contract charges 117 11.30 1,319 Highest contract charges -- -- -- Remaining contract charges -- -- -- MUNDER MIDCAP CORE GROWTH FUND 2007 Lowest contract charges 29 29.89 863 Highest contract charges 1,216 13.45 16,353 Remaining contract charges 21,261 -- 289,109 2006 Lowest contract charges 4,640 11.43 53,029 Highest contract charges 151 11.29 1,707 Remaining contract charges 7,202 -- 80,972 2005 Lowest contract charges 3,925 10.16 39,890 Highest contract charges -- -- -- Remaining contract charges -- -- -- NEUBERGER BERMAN SOCIALLY RESPONSIVE FUND 2007 Lowest contract charges 79 18.40 1,454 Highest contract charges 893 12.61 11,263 Remaining contract charges 3,024 -- 39,572 2006 Lowest contract charges 1,193 12.25 14,616 Highest contract charges 501 11.90 5,967 Remaining contract charges 161 -- 1,958 OAKMARK INTERNATIONAL SMALL CAP FUND 2007 Lowest contract charges 76,081 27.25 2,073,425 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 74,930 29.83 2,235,486 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 64,710 22.19 1,436,106 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 42,376 18.37 778,258 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 21,822 14.29 311,896 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- BLACKROCK MID CAP VALUE OPPORTUNITIES FUND 2007 Lowest contract charges 0.64% -- 3.22% Highest contract charges 1.24% -- 2.60% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.71% -- 10.63% Highest contract charges -- -- -- Remaining contract charges -- -- -- MUNDER MIDCAP CORE GROWTH FUND 2007 Lowest contract charges -- -- 18.89% Highest contract charges 1.24% -- 19.15% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% -- 11.19% Highest contract charges 1.25% 0.02% 10.20% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 1.88% 2.94% Highest contract charges -- -- -- Remaining contract charges -- -- -- NEUBERGER BERMAN SOCIALLY RESPONSIVE FUND 2007 Lowest contract charges -- 0.85% 3.37% Highest contract charges 1.24% 0.65% 5.98% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 0.30% 13.82% Highest contract charges 1.24% 0.10% 12.80% Remaining contract charges -- -- -- OAKMARK INTERNATIONAL SMALL CAP FUND 2007 Lowest contract charges 0.35% 0.76% (8.65)% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 2.52% 34.43% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% 4.03% 20.84% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% 1.81% 28.50% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% 1.21% 51.88% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-193 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND 2007 Lowest contract charges 1,158 $13.89 $16,078 Highest contract charges 9,661 12.91 124,686 Remaining contract charges 134,977 -- 1,798,317 2006 Lowest contract charges 1,757 12.21 21,449 Highest contract charges 8,741 11.49 100,411 Remaining contract charges 137,914 -- 1,623,463 2005 Lowest contract charges 1,530 11.36 17,381 Highest contract charges 10,282 10.82 111,251 Remaining contract charges 128,754 -- 1,415,138 2004 Lowest contract charges 14,302 10.85 155,141 Highest contract charges 10,584 10.46 110,749 Remaining contract charges 84,838 -- 900,910 2003 Lowest contract charges 6,519 10.19 66,429 Highest contract charges 317 9.95 3,160 Remaining contract charges 57,938 -- 583,153 OPPENHEIMER GLOBAL FUND 2007 Lowest contract charges 5,339 87.12 465,094 Highest contract charges 21,962 17.83 391,687 Remaining contract charges 156,041 -- 2,880,187 2006 Lowest contract charges 5,128 82.21 421,554 Highest contract charges 18,295 17.04 311,784 Remaining contract charges 157,756 -- 2,765,668 2005 Lowest contract charges 4,523 70.04 316,809 Highest contract charges 13,944 14.70 204,996 Remaining contract charges 135,036 -- 2,028,736 2004 Lowest contract charges 6,143 61.53 377,955 Highest contract charges 4,419 13.08 57,796 Remaining contract charges 61,498 -- 818,175 2003 Lowest contract charges 9,014 51.85 467,356 Highest contract charges 534 11.16 5,957 Remaining contract charges 24,737 -- 279,289 OPPENHEIMER INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 412 14.73 6,065 Highest contract charges 176 14.59 2,567 Remaining contract charges -- -- -- OPPENHEIMER MAIN STREET SMALL CAP FUND 2007 Lowest contract charges 6,651 8.98 59,752 Highest contract charges 10,348 10.53 108,939 Remaining contract charges 14,805 -- 155,190 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND 2007 Lowest contract charges -- -- 13.77% Highest contract charges 1.25% -- 12.35% Remaining contract charges -- -- -- 2006 Lowest contract charges -- -- 7.50% Highest contract charges 1.25% -- 6.17% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.57% 4.70% Highest contract charges 1.25% 0.67% 3.40% Remaining contract charges -- -- -- 2004 Lowest contract charges -- -- 6.46% Highest contract charges 1.24% -- 5.13% Remaining contract charges -- -- -- 2003 Lowest contract charges -- -- 29.46% Highest contract charges 1.23% -- 27.85% Remaining contract charges -- -- -- OPPENHEIMER GLOBAL FUND 2007 Lowest contract charges -- 1.11% 5.97% Highest contract charges 1.25% 1.14% 4.65% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.81% 17.38% Highest contract charges 1.25% 0.87% 15.92% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 0.71% 13.83% Highest contract charges 1.24% 1.01% 12.42% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 0.54% 18.67% Highest contract charges 1.24% 0.90% 17.20% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 1.37% 43.07% Highest contract charges 1.23% 2.71% 41.30% Remaining contract charges -- -- -- OPPENHEIMER INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 0.63% 1.92% 11.65% Highest contract charges 1.22% 2.91% 10.99% Remaining contract charges -- -- -- OPPENHEIMER MAIN STREET SMALL CAP FUND 2007 Lowest contract charges 0.24% 0.31% (10.15)% Highest contract charges 1.23% 0.57% (2.77)% Remaining contract charges -- -- --
SA-194
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- OPPENHEIMER DEVELOPING MARKETS FUND 2007 Lowest contract charges 15,227 $51.81 $788,849 Highest contract charges 505 49.67 25,080 Remaining contract charges 13,231 -- 669,645 2006 Lowest contract charges 13,772 38.84 534,909 Highest contract charges 288 37.57 10,814 Remaining contract charges 10,406 -- 396,801 2005 Lowest contract charges 2,424 30.72 74,449 Highest contract charges 42 30.39 1,273 Remaining contract charges -- -- -- OPPENHEIMER EQUITY FUND 2007 Lowest contract charges 112 12.59 1,410 Highest contract charges 20 12.51 249 Remaining contract charges -- -- -- OPPENHEIMER INTERNATIONAL BOND FUND 2007 Lowest contract charges 4,953 10.80 53,505 Highest contract charges 6,896 12.15 83,800 Remaining contract charges 12,981 -- 158,838 2006 Lowest contract charges 116 10.83 1,259 Highest contract charges -- -- -- Remaining contract charges -- -- -- OPPENHEIMER SMALL- & MID- CAP VALUE FUND 2007 Lowest contract charges 15,666 9.63 150,913 Highest contract charges 4,036 12.72 51,355 Remaining contract charges 31,012 -- 353,166 OPPENHEIMER MAIN STREET OPPORTUNITY FUND 2007 Lowest contract charges 6,239 9.52 59,424 Highest contract charges 6,171 11.86 73,207 Remaining contract charges -- -- -- 2006 Lowest contract charges 109 11.60 1,266 Highest contract charges -- -- -- Remaining contract charges -- -- -- OPPENHEIMER GOLD & SPECIAL METALS FUND 2007 Lowest contract charges 5,433 17.98 97,702 Highest contract charges 1,760 17.87 31,447 Remaining contract charges -- -- -- PIMCO TOTAL RETURN 2007 Lowest contract charges 5,490 10.75 59,017 Highest contract charges 7,094 11.07 78,536 Remaining contract charges 7,115 -- 79,363 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- OPPENHEIMER DEVELOPING MARKETS FUND 2007 Lowest contract charges 0.35% 1.00% 33.39% Highest contract charges 1.24% 1.12% 32.20% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 4.29% 24.75% Highest contract charges 1.25% 2.36% 23.63% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 3.87% 26.98% Highest contract charges 1.13% 8.64% 26.75% Remaining contract charges -- -- -- OPPENHEIMER EQUITY FUND 2007 Lowest contract charges 0.83% 4.52% 9.79% Highest contract charges 0.91% -- 9.36% Remaining contract charges -- -- -- OPPENHEIMER INTERNATIONAL BOND FUND 2007 Lowest contract charges 0.24% 7.39% 8.02% Highest contract charges 1.23% 10.25% 12.23% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.70% 2.16% 9.14% Highest contract charges -- -- -- Remaining contract charges -- -- -- OPPENHEIMER SMALL- & MID- CAP VALUE FUND 2007 Lowest contract charges 0.24% -- (3.67)% Highest contract charges 1.23% -- 7.78% Remaining contract charges -- -- -- OPPENHEIMER MAIN STREET OPPORTUNITY FUND 2007 Lowest contract charges 0.29% 3.91% (3.68)% Highest contract charges 1.23% 2.09% 2.28% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.68% 2.05% 12.70% Highest contract charges -- -- -- Remaining contract charges -- -- -- OPPENHEIMER GOLD & SPECIAL METALS FUND 2007 Lowest contract charges 0.84% 4.00% 29.18% Highest contract charges 1.23% 3.54% 28.66% Remaining contract charges -- -- -- PIMCO TOTAL RETURN 2007 Lowest contract charges 0.29% 2.69% 7.50% Highest contract charges 1.23% 4.70% 7.24% Remaining contract charges -- -- --
SA-195 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- PIMCO EMERGING MARKETS BOND FUND 2007 Lowest contract charges 12,976 $10.14 $131,589 Highest contract charges 3,860 11.38 43,941 Remaining contract charges -- -- -- PIMCO REAL RETURN FUND 2007 Lowest contract charges 4,574 10.96 50,134 Highest contract charges 14,467 11.74 169,836 Remaining contract charges 101,593 -- 1,224,515 2006 Lowest contract charges 1,490 10.65 15,867 Highest contract charges 9,362 10.70 100,127 Remaining contract charges 63,967 -- 697,476 2005 Lowest contract charges 533 10.92 5,817 Highest contract charges 247 10.85 2,684 Remaining contract charges -- -- -- PIONEER HIGH YIELD FUND 2007 Lowest contract charges 6,593 10.70 70,558 Highest contract charges 2,821 11.58 32,669 Remaining contract charges 68 -- 787 PIONEER SMALL CAP VALUE FUND 2007 Lowest contract charges 954 8.78 8,374 Highest contract charges 7,392 9.32 68,868 Remaining contract charges -- -- -- PIONEER STRATEGIC INCOME FUND 2007 Lowest contract charges 5,032 10.32 51,920 Highest contract charges 4,878 10.88 53,070 Remaining contract charges 20,526 -- 214,341 PIONEER MID CAP VALUE FUND 2007 Lowest contract charges 696 11.55 8,041 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 58 11.10 646 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- PIMCO EMERGING MARKETS BOND FUND 2007 Lowest contract charges 0.29% 3.24% 3.57% Highest contract charges 1.24% 5.47% 3.90% Remaining contract charges -- -- -- PIMCO REAL RETURN FUND 2007 Lowest contract charges -- 4.56% 2.91% Highest contract charges 1.24% 4.40% 9.76% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.32% (3.88)% Highest contract charges 1.23% 2.21% (1.39)% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 6.81% 1.66% Highest contract charges 1.15% 6.13% 1.47% Remaining contract charges -- -- -- PIONEER HIGH YIELD FUND 2007 Lowest contract charges 0.49% 4.51% 5.25% Highest contract charges 1.19% 4.83% 5.61% Remaining contract charges -- -- -- PIONEER SMALL CAP VALUE FUND 2007 Lowest contract charges 0.24% -- (12.22)% Highest contract charges 0.49% -- (7.75)% Remaining contract charges -- -- -- PIONEER STRATEGIC INCOME FUND 2007 Lowest contract charges 0.24% 4.12% 3.19% Highest contract charges 1.16% 7.59% 4.77% Remaining contract charges -- -- -- PIONEER MID CAP VALUE FUND 2007 Lowest contract charges 1.24% 1.01% 4.01% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 0.77% 3.09% 12.75% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-196
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- PUTNAM INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 133,952 $19.67 $2,634,889 Highest contract charges 260 12.97 3,365 Remaining contract charges 1,474 -- 19,242 2006 Lowest contract charges 110,400 18.21 2,010,273 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 87,716 14.25 1,249,886 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 58,900 12.70 748,137 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 43,087 10.97 472,504 Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM INVESTORS FUND 2007 Lowest contract charges 4 9.09 33 Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM VISTA FUND 2007 Lowest contract charges 23 10.94 253 Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM SMALL CAP GROWTH FUND 2007 Lowest contract charges 2 11.49 19 Highest contract charges 197 11.42 2,255 Remaining contract charges -- -- -- 2006 Lowest contract charges 55 11.25 620 Highest contract charges -- -- -- Remaining contract charges -- -- -- ROYCE VALUE PLUS FUND 2007 Lowest contract charges 430 13.81 5,938 Highest contract charges 5,641 13.74 77,508 Remaining contract charges 38,255 -- 510,081 2006 Lowest contract charges 2 14.09 32 Highest contract charges 290 13.48 3,908 Remaining contract charges 23,625 -- 308,238 2005 Lowest contract charges 4,250 11.45 48,682 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- PUTNAM INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 0.35% 2.91% 8.03% Highest contract charges 1.20% 35.01% 7.06% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 2.66% 27.79% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 0.35% 2.63% 12.18% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 0.35% 1.74% 15.83% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 0.35% 2.39% 27.69% Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM INVESTORS FUND 2007 Lowest contract charges -- -- (9.12)% Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM VISTA FUND 2007 Lowest contract charges 1.05% -- 2.35% Highest contract charges -- -- -- Remaining contract charges -- -- -- PUTNAM SMALL CAP GROWTH FUND 2007 Lowest contract charges -- -- 1.90% Highest contract charges 1.24% -- 1.49% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.63% -- 8.90% Highest contract charges -- -- -- Remaining contract charges -- -- -- ROYCE VALUE PLUS FUND 2007 Lowest contract charges -- 2.43% (1.99)% Highest contract charges 1.24% 1.45% 1.95% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 0.24% 17.12% Highest contract charges 1.25% 0.11% 17.87% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% -- -- Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-197 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- LEGG MASON PARTNERS SMALL CAP GROWTH FUND 2007 Lowest contract charges 382 $12.23 $4,670 Highest contract charges -- -- -- Remaining contract charges -- -- -- DWS DREMAN HIGH RETURN EQUITY FUND 2007 Lowest contract charges 3,104 9.24 28,682 Highest contract charges 6,841 11.48 78,566 Remaining contract charges 5,279 -- 61,008 SSGA S&P 500 INDEX FUND 2007 Lowest contract charges 343 24.17 8,294 Highest contract charges 3,150 12.11 38,134 Remaining contract charges 60,921 -- 745,153 2006 Lowest contract charges 1,771 11.76 20,823 Highest contract charges 2,426 11.63 28,213 Remaining contract charges 47,370 -- 554,062 2005 Lowest contract charges 2,280 10.20 23,266 Highest contract charges -- -- -- Remaining contract charges -- -- -- DWS GLOBAL THEMATIC FUND 2007 Lowest contract charges 12,403 10.70 132,737 Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON PARTNERS AGGRESSIVE GROWTH FUND 2007 Lowest contract charges 7,641 9.63 73,602 Highest contract charges 791 11.18 8,845 Remaining contract charges -- -- -- BLACKROCK SMALL/MID-CAP GROWTH FUND 2007 Lowest contract charges 147 12.92 1,898 Highest contract charges 12 12.80 152 Remaining contract charges -- -- -- THORNBURG INTERNATIONAL VALUE FUND 2007 Lowest contract charges 6,680 11.34 75,783 Highest contract charges 16,983 15.42 261,890 Remaining contract charges 6,409 -- 99,758 THORNBURG VALUE FUND 2007 Lowest contract charges 8,161 9.89 80,702 Highest contract charges 1,787 12.75 22,778 Remaining contract charges 5,549 -- 61,050 2006 Lowest contract charges 22 12.17 263 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- LEGG MASON PARTNERS SMALL CAP GROWTH FUND 2007 Lowest contract charges 1.10% -- 8.32% Highest contract charges -- -- -- Remaining contract charges -- -- -- DWS DREMAN HIGH RETURN EQUITY FUND 2007 Lowest contract charges 0.29% 3.71% (6.09)% Highest contract charges 1.21% 3.17% (2.37)% Remaining contract charges -- -- -- SSGA S&P 500 INDEX FUND 2007 Lowest contract charges -- 1.40% 3.78% Highest contract charges 1.24% 1.58% 4.10% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.35% 3.11% 15.20% Highest contract charges 1.23% 2.45% 14.16% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.82% 2.09% 2.60% Highest contract charges -- -- -- Remaining contract charges -- -- -- DWS GLOBAL THEMATIC FUND 2007 Lowest contract charges 0.49% 0.95% 4.78% Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON PARTNERS AGGRESSIVE GROWTH FUND 2007 Lowest contract charges 0.24% -- (3.68)% Highest contract charges 0.46% -- (0.04)% Remaining contract charges -- -- -- BLACKROCK SMALL/MID-CAP GROWTH FUND 2007 Lowest contract charges 0.61% -- 14.68% Highest contract charges 0.77% -- 14.00% Remaining contract charges -- -- -- THORNBURG INTERNATIONAL VALUE FUND 2007 Lowest contract charges 0.29% -- 9.99% Highest contract charges 1.22% 0.59% 25.92% Remaining contract charges -- -- -- THORNBURG VALUE FUND 2007 Lowest contract charges 0.24% 0.34% (1.12)% Highest contract charges 1.22% 0.42% 4.74% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.64% 0.95% 18.43% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-198
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- THORNBURG CORE GROWTH FUND 2007 Lowest contract charges 482 $10.16 $4,898 Highest contract charges 14,423 13.27 191,418 Remaining contract charges 22,473 -- 258,384 VICTORY DIVERSIFIED STOCK FUND 2007 Lowest contract charges 4 17.77 69 Highest contract charges 1,234 14.36 17,720 Remaining contract charges 5,664 -- 82,513 2006 Lowest contract charges 2,114 13.31 28,145 Highest contract charges 12 13.17 160 Remaining contract charges -- -- -- 2005 Lowest contract charges 186 11.79 2,193 Highest contract charges -- -- -- Remaining contract charges -- -- -- VICTORY SPECIAL VALUE FUND 2007 Lowest contract charges 155 18.29 2,832 Highest contract charges 5,501 13.91 76,527 Remaining contract charges 29,228 -- 410,476 2006 Lowest contract charges 5,045 12.46 62,843 Highest contract charges 70 12.38 866 Remaining contract charges -- -- -- 2005 Lowest contract charges 675 10.73 7,238 Highest contract charges -- -- -- Remaining contract charges -- -- -- VAN KAMPEN SMALL CAP GROWTH FUND 2007 Lowest contract charges 1,527 11.20 17,115 Highest contract charges 3,587 12.74 45,709 Remaining contract charges 10 -- 113 VAN KAMPEN COMSTOCK FUND 2007 Lowest contract charges 155,849 17.48 2,724,238 Highest contract charges 44,462 12.84 570,794 Remaining contract charges 20,070 -- 265,891 2006 Lowest contract charges 13 19.25 222 Highest contract charges 2,029 13.25 26,887 Remaining contract charges 61,653 -- 849,521 2005 Lowest contract charges 1,405 11.76 16,529 Highest contract charges 39 11.56 451 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- THORNBURG CORE GROWTH FUND 2007 Lowest contract charges 0.24% -- 1.61% Highest contract charges 1.22% -- 9.91% Remaining contract charges -- -- -- VICTORY DIVERSIFIED STOCK FUND 2007 Lowest contract charges -- 1.19% (1.55)% Highest contract charges 1.23% 1.13% 9.00% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 0.58% 12.92% Highest contract charges 1.04% 0.66% 12.47% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.81% 0.79% 3.97% Highest contract charges -- -- -- Remaining contract charges -- -- -- VICTORY SPECIAL VALUE FUND 2007 Lowest contract charges -- 0.89% 7.08% Highest contract charges 1.22% 0.72% 12.34% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 0.62% 16.13% Highest contract charges 1.17% 0.66% 15.67% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% -- 7.67% Highest contract charges -- -- -- Remaining contract charges -- -- -- VAN KAMPEN SMALL CAP GROWTH FUND 2007 Lowest contract charges 0.24% -- 12.05% Highest contract charges 1.21% -- 19.68% Remaining contract charges -- -- -- VAN KAMPEN COMSTOCK FUND 2007 Lowest contract charges -- 1.70% (9.20)% Highest contract charges 1.24% 2.21% (3.11)% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 2.89% 8.09% Highest contract charges 1.24% 2.44% 14.62% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.81% 3.88% 2.73% Highest contract charges 1.38% 2.72% 2.54% Remaining contract charges -- -- --
SA-199 SEPARATE ACCOUNT ELEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY - ---------------------------------------------------------------------------------------------- VAN KAMPEN EQUITY AND INCOME FUND 2007 Lowest contract charges 292,260 $8.84 $2,583,577 Highest contract charges 65,003 14.63 951,084 Remaining contract charges 966,621 -- 14,797,025 2006 Lowest contract charges 55 9.12 503 Highest contract charges 48,359 14.35 693,820 Remaining contract charges 886,669 -- 13,210,897 2005 Lowest contract charges 31,974 13.55 433,278 Highest contract charges 27,921 12.91 360,456 Remaining contract charges 652,680 -- 8,668,376 2004 Lowest contract charges 32,952 12.57 414,162 Highest contract charges 9,123 12.12 110,619 Remaining contract charges 389,213 -- 4,826,622 2003 Lowest contract charges 28,433 11.25 319,731 Highest contract charges 2,653 10.98 29,143 Remaining contract charges 250,789 -- 2,798,255 VAN KAMPEN GROWTH AND INCOME FUND 2007 Lowest contract charges 1,205 9.37 11,285 Highest contract charges 1,322 11.45 15,140 Remaining contract charges 7,433 -- 85,634 VAN KAMPEN MID CAP GROWTH FUND 2007 Lowest contract charges 509 13.23 6,734 Highest contract charges 115 13.14 1,519 Remaining contract charges -- -- -- VAN KAMPEN REAL ESTATE SECURITIES FUND 2007 Lowest contract charges 555 8.18 4,535 Highest contract charges 1,687 10.16 17,138 Remaining contract charges 5,176 -- 52,916 2006 Lowest contract charges 59 12.45 734 Highest contract charges -- -- -- Remaining contract charges -- -- -- SELIGMAN COMMUNICATIONS AND INFORMATION FUND 2007 Lowest contract charges 412 13.70 5,643 Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON PARTNERS SMALL CAP VALUE FUND 2007 Lowest contract charges 7 10.68 74 Highest contract charges 35 10.59 369 Remaining contract charges 57 -- 606 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** - -------------------------------------- ---------------------------------------------------- VAN KAMPEN EQUITY AND INCOME FUND 2007 Lowest contract charges -- 2.28% (3.07)% Highest contract charges 1.25% 2.39% 1.98% Remaining contract charges -- -- -- 2006 Lowest contract charges -- 3.86% 5.07% Highest contract charges 1.25% 2.35% 11.13% Remaining contract charges -- -- -- 2005 Lowest contract charges -- 2.09% 7.82% Highest contract charges 1.24% 2.09% 6.48% Remaining contract charges -- -- -- 2004 Lowest contract charges -- 2.29% 11.77% Highest contract charges 1.24% 2.60% 10.38% Remaining contract charges -- -- -- 2003 Lowest contract charges -- 3.06% 22.16% Highest contract charges 1.24% 2.87% 20.64% Remaining contract charges -- -- -- VAN KAMPEN GROWTH AND INCOME FUND 2007 Lowest contract charges 0.28% 2.41% (6.33)% Highest contract charges 1.22% 1.93% 1.28% Remaining contract charges -- -- -- VAN KAMPEN MID CAP GROWTH FUND 2007 Lowest contract charges 0.83% -- 21.33% Highest contract charges 1.21% -- 20.85% Remaining contract charges -- -- -- VAN KAMPEN REAL ESTATE SECURITIES FUND 2007 Lowest contract charges 0.25% 1.78% (18.25)% Highest contract charges 1.23% 1.38% (18.37)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.66% 1.01% 23.00% Highest contract charges -- -- -- Remaining contract charges -- -- -- SELIGMAN COMMUNICATIONS AND INFORMATION FUND 2007 Lowest contract charges 1.22% -- 13.50% Highest contract charges -- -- -- Remaining contract charges -- -- -- LEGG MASON PARTNERS SMALL CAP VALUE FUND 2007 Lowest contract charges -- -- (3.18)% Highest contract charges 1.27% -- (3.76)% Remaining contract charges -- -- --
* This represents the annualized contract expenses of the Account for the year indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the Funds and charges made directly to contract owner accounts through the redemption of units. ** These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the Fund, net of management fees assessed by the Fund's manager, divided by the average net assets. These ratios exclude those SA-200 expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the Fund in which the Sub-Account invests. *** This represents the total return for the year indicated and reflects a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the year indicated or from the effective date through the end of the reporting period. # Unit fair value amounts represent an average of individual unit fair values, which differ within each Sub-Account. Summary of Separate Account expense charges, including Mortality and Expense Risk Charges, Riders (if applicable) and Annual Maintenance Fees assessed. These fees are either assessed as a direct reduction in unit values or through redemption of units for all contracts contained within the Account. MORTALITY AND EXPENSE RISK CHARGES: The Company will charge an expense at a maximum rate of 1.25% of the contract's value for mortality and expense risks undertaken by the Company. These charges are a reduction in unit values. ANNUAL MAINTENANCE FEE: An annual maintenance fee, up to a maximum of $30, may be charged against the contract's value each contract year. However, this fee is not applicable to contracts with values of $50,000 or more, as determined on the most recent contract anniversary. These expenses are included in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. These charges are redemption of units. SA-201 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of Hartford Life Insurance Company Hartford, Connecticut We have audited the accompanying consolidated balance sheets of Hartford Life Insurance Company and its subsidiaries (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2007. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, 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, such consolidated financial statements present fairly, in all material respects, the financial position of Hartford Life Insurance Company and its subsidiaries as of December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Hartford, Connecticut February 20, 2008 F-1 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 (IN MILLIONS) - -------------------------------------------------------------------------------- REVENUES Fee income and other $3,509 $3,113 $2,811 Earned premiums 983 547 449 Net investment income 3,048 2,728 2,569 Net realized capital gains (losses) (934) (299) 75 -------- -------- -------- TOTAL REVENUES 6,606 6,089 5,904 -------- -------- -------- BENEFITS, CLAIMS AND EXPENSES Benefits, loss and loss adjustment expenses 3,980 3,205 3,008 Insurance expenses and other 1,192 853 798 Amortization of deferred policy acquisition costs and present value of future profits 515 1,175 945 Dividends to policyholders 11 22 37 -------- -------- -------- TOTAL BENEFITS, LOSSES AND EXPENSES 5,698 5,255 4,788 -------- -------- -------- Income before income tax expense 908 834 1,116 Income tax expense 168 103 207 -------- -------- -------- NET INCOME $740 $731 $909 -------- -------- --------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-2 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2007 2006 (IN MILLIONS, EXCEPT FOR SHARE DATA) - -------------------------------------------------------------------------------- ASSETS Investments Fixed maturities, available for sale, at fair value (amortized cost of $46,208 and $43,846) $45,611 $44,646 Equity securities, available for sale, at fair value (cost of $763 and $267) 722 275 Equity securities, held for trading, at fair value -- 1 Policy loans, at outstanding balance 2,016 2,009 Mortgage loans on real estate 4,166 2,631 Short-term investments 752 694 Other investments 1,726 1,023 ----------- ----------- TOTAL INVESTMENTS 54,993 51,279 ----------- ----------- Cash 281 186 Premiums receivable and agents' balances 28 29 Reinsurance recoverables 1,730 1,393 Deferred policy acquisition costs and present value of future profits 8,393 7,334 Goodwill 186 186 Other assets 1,348 1,120 Separate account assets 199,253 179,943 ----------- ----------- TOTAL ASSETS $266,212 $241,470 ----------- ----------- LIABILITIES Reserve for future policy benefits $9,396 $8,209 Other policyholder funds 42,377 40,191 Consumer Notes 809 258 Deferred income taxes 124 491 Other liabilities 6,621 4,718 Separate account liabilities 199,253 179,943 ----------- ----------- TOTAL LIABILITIES 258,580 233,810 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES, NOTE 10 -- -- STOCKHOLDER'S EQUITY Common stock -- 1,000 shares authorized, issued and outstanding, par value $5,690 6 6 Capital surplus 2,888 2,586 Accumulated other comprehensive income Net unrealized capital gains on securities, net of tax (469) 290 Foreign currency translation adjustments -- 1 ----------- ----------- TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME (469) 291 ----------- ----------- Retained earnings 5,207 4,777 ----------- ----------- TOTAL STOCKHOLDER'S EQUITY 7,632 7,660 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $266,212 $241,470 ----------- -----------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-3 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) NET NET (LOSS) UNREALIZED GAIN ON CAPITAL GAINS CASH FLOW FOREIGN COMMON (LOSSES) ON HEDGING CURRENCY STOCK CAPITAL SECURITIES, INSTRUMENTS, TRANSLATION SURPLUS NET OF TAX NET OF TAX ADJUSTMENTS (IN MILLIONS) - -------------------------------------------------------------------------------------------------------------------------------- 2007 Balance, December 31, 2006 $6 $2,586 $500 $(210) $1 Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (832) Net gains on cash flow hedging instruments 73 Cumulative translation adjustments (1) Total other comprehensive income Total comprehensive income Capital contribution from parent 302 Dividends declared Cumulative effect of Accounting Changes, net of tax --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2007 $6 $2,888 $(332) $(137) $ -- --- ------ ------ ------ ----- 2006 Balance, December 31, 2005 $6 $2,405 $577 $(113) $(1) Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (77) Net loss on cash flow hedging instruments (97) Cumulative translation adjustments 2 Total other comprehensive income Total comprehensive income Capital contribution from parent 181 Dividends declared --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2006 $6 $2,586 $500 $(210) $1 --- ------ ------ ------ ----- 2005 Balance, December 31, 2004 $6 $2,240 $1,124 $(184) $(1) Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (547) Net gains on cash flow hedging instruments 71 Total other comprehensive income Total comprehensive income Capital contribution from parent 165 Dividends declared --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2005 $6 $2,405 $577 $(113) $(1) --- ------ ------ ------ ----- TOTAL RETAINED STOCKHOLDER'S EARNINGS EQUITY (IN MILLIONS) - ---------------------------------- --------------------------------------- 2007 Balance, December 31, 2006 $4,777 $7,660 ------ Comprehensive income Net income 740 740 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (832) Net gains on cash flow hedging instruments 73 Cumulative translation adjustments (1) ------ Total other comprehensive income (760) ------ Total comprehensive income (20) Capital contribution from parent 302 Dividends declared (307) (307) Cumulative effect of Accounting Changes, net of tax (3) (3) ------ ------ BALANCE, DECEMBER 31, 2007 $5,207 $7,632 ------ ------ 2006 Balance, December 31, 2005 $4,463 $7,337 ------ Comprehensive income Net income 731 731 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (77) Net loss on cash flow hedging instruments (97) Cumulative translation adjustments 2 ------ Total other comprehensive income (172) ------ Total comprehensive income 559 Capital contribution from parent 181 Dividends declared (417) (417) ------ ------ BALANCE, DECEMBER 31, 2006 $4,777 $7,660 ------ ------ 2005 Balance, December 31, 2004 $4,064 $7,249 ------ Comprehensive income Net income 909 909 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (547) Net gains on cash flow hedging instruments 71 ------ Total other comprehensive income (476) ------ Total comprehensive income 433 Capital contribution from parent 165 Dividends declared (510) (510) ------ ------ BALANCE, DECEMBER 31, 2005 $4,463 $7,337 ------ ------
(1) Net change in unrealized capital gain on securities is reflected net of tax provision (benefit) and other items of $448, $(42) and $(295) for the years ended December 31, 2007, 2006 and 2005, respectively. Net (loss) gain on cash flow hedging instruments is net of tax provision (benefit) of $(39), $(52) and $38 for the years ended December 31, 2007, 2006 and 2005, 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 $(140), $(75), and $26 for the years ended December 31, 2007, 2006 and 2005, respectively. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-4 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 (IN MILLIONS) - -------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $740 $731 $909 Adjustments to reconcile net income to net cash provided by operating activities Amortization of deferred policy acquisition costs and present value of future profits 515 1,175 945 Additions to deferred policy acquisition costs and present value of future profits (1,400) (1,351) (1,226) Change in: Reserve for future policy benefits, unpaid losses and loss adjustment expenses 1,187 836 129 Reinsurance recoverables (236) (47) 177 Receivables 190 11 (3) Payables and accruals 560 210 385 Accrued and deferred income taxes (102) 340 36 Net realized capital losses (gains) 934 299 (75) Depreciation and amortization 438 404 239 Other, net (267) 157 (228) --------- --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES $2,559 $2,765 $1,288 --------- --------- --------- INVESTING ACTIVITIES Proceeds from the sale/maturity/prepayment of: Fixed Maturities and Short-term Investments, available for sale $15,892 $19,517 $19,727 Equity securities, available-for-sale 296 249 38 Mortgage loans 958 301 354 Partnerships 175 91 169 Payments for the purchase of: Fixed Maturities and Short-term Investments, available for sale (18,780) (22,017) (21,511) Equity securities, available-for-sale (484) (455) (60) Mortgage loans (2,492) (1,574) (915) Partnerships (607) (496) (337) Change in policy loans, net (6) (39) 647 Change in payables for collateral under securities lending, net 1,306 788 (276) Change in all other, net (587) (713) (193) --------- --------- --------- NET CASH USED FOR INVESTING ACTIVITIES $(4,329) $(4,348) $(2,357) --------- --------- --------- FINANCING ACTIVITIES Deposits and other additions to investment and universal life-type contracts 32,396 26,991 25,383 Withdrawals and other deductions from investment and universal life-type contracts (30,433) (26,687) (24,888) Net transfers (to)/from separate accounts related to investment and universal life-type contracts (606) 1,382 852 Capital contributions 270 -- 129 Dividends paid $(305) $(300) $(498) Proceeds from issuance of consumer notes 551 258 -- --------- --------- --------- NET CASH PROVIDED BY FINANCING ACTIVITIES $1,873 $1,644 $978 --------- --------- --------- Impact of foreign exchange (8) 1 (1) Net (decrease) increase in cash 95 62 (92) Cash -- beginning of year 186 124 216 --------- --------- --------- Cash -- end of year $281 $186 $124 --------- --------- --------- Supplemental Disclosure of Cash Flow Information: Net Cash Paid During the Year for: Income taxes $125 $(163) $149
F-5 SUPPLEMENTAL SCHEDULE OF NONCASH OPERATING AND FINANCING ACTIVITIES: THE COMPANY RECAPTURED AN INDEMNITY REINSURANCE ARRANGEMENT WITH HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY IN 2005. IN CONJUNCTION WITH THIS TRANSACTION, THE COMPANY RECORDED A NONCASH CAPITAL CONTRIBUTION OF $36 AND A RELATED EXTINGUISHMENT OF THE REINSURANCE RECOVERABLE LIABILITY. THE COMPANY MADE NONCASH DIVIDENDS OF $2 AND RECEIVED A NONCASH CAPITAL CONTRIBUTIONS OF $20 FROM ITS PARENT COMPANY DURING 2007 RELATED TO THE GUARANTEED MINIMUM INCOME AND ACCUMULATION BENEFIT REINSURANCE AGREEMENTS WITH HARTFORD LIFE INSURANCE K.K. THE COMPANY MADE NONCASH DIVIDENDS OF $117 AND RECEIVED A NONCASH CAPITAL CONTRIBUTIONS OF $154 FROM ITS PARENT COMPANY DURING 2006 RELATED TO THE GUARANTEED MINIMUM INCOME BENEFIT REINSURANCE AGREEMENT WITH HARTFORD LIFE INSURANCE K.K. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-6 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 These consolidated financial statements include Hartford Life Insurance Company and its wholly-owned subsidiaries (collectively, "Hartford Life Insurance Company" or the "Company"), Hartford Life and Annuity Insurance Company ("HLAI") and Hartford International Life Reassurance Corporation ("HLRe"). The Company is a wholly-owned subsidiary of Hartford Life and Accident Insurance Company ("HLA"), which is a wholly-owned subsidiary of Hartford Life, Inc. ("Hartford Life"). Hartford Life is a direct wholly-owned subsidiary of Hartford Holdings, Inc., a direct wholly-owned subsidiary of The Hartford Financial Services Group, Inc. ("The Hartford"), the Company's ultimate parent company. Along with its parent, HLA, the Company is a financial services and insurance group which provides (a) investment products, such as individual variable annuities and fixed market value adjusted annuities and retirement plan services; (b) individual life insurance; (c) group benefits products such as group life and group disability insurance that is directly written by the Company and is substantially ceded to its parent, HLA, (d) private placement life insurance and (e) assumes fixed market value adjusted annuities, guaranteed minimum income benefits ("GMIB"), guaranteed minimum accumulation benefits ("GMAB") and guaranteed minimum death benefits ("GMDB") from Hartford Life's international operations. The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. CONSOLIDATION The consolidated financial statements include the accounts of Hartford Life Insurance Company in which the Company directly or indirectly has a controlling financial interest and those variable interest entities ("VIE") in which the Company is the primary beneficiary. The Company determines if it is the primary beneficiary using both qualitative and quantitative analyses. Entities in which Hartford Life Insurance Company does not have a controlling financial interest but in which the Company has significant influence over the operating and financing decisions are reported using the equity method. All material intercompany transactions and balances between Hartford Life Insurance Company and its subsidiaries and affiliates have been eliminated. For further discussions on variable interest entities see Note 3. USE OF ESTIMATES The preparation of financial statements, in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; the evaluation of other-than-temporary impairments on investments in available-for-sale securities; living benefits required to be fair valued; and contingencies relating to corporate litigation and regulatory matters. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year presentation. ADOPTION OF NEW ACCOUNTING STANDARDS ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109 The Financial Accounting Standards Board ("FASB") issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" ("FIN 48"), dated June 2006. FIN 48 requires companies to recognize the tax benefit of an uncertain tax position only when the position is "more likely than not" to be sustained assuming examination by tax authorities. The amount recognized represents the largest amount of tax benefit that is greater than 50% likely of being realized. A liability is recognized for any benefit claimed, or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) on the excess. The Company adopted the provisions of FIN 48 on January 1, 2007. As a result of the adoption, the Company recognized an $11 decrease in the liability for unrecognized tax benefits and a corresponding increase in the January 1, 2007 balance of retained earnings. The Company had no unrecognized tax benefits as of January 1, 2007. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not booked any such amounts. The Company classifies interest and penalties (if applicable) as income tax expense in the financial statements. F-7 AMENDMENT OF FASB INTERPRETATION NO. 39 In April 2007, the FASB issued FASB Staff Position No. FIN 39-1, "Amendment of FASB Interpretation No. 39" ("FSP FIN 39-1"). FSP FIN 39-1 amends FIN 39, "Offsetting of Amounts Related to Certain Contacts", by permitting a reporting entity to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement that have been offset in the statement of financial position in accordance with FIN 39. FSP FIN 39-1 also amends FIN 39 by modifying certain terms. FSP FIN 39-1 is effective for reporting periods beginning after November 15, 2007, with early application permitted. The Company early adopted FSP FIN 39-1 on December 31, 2007, by electing to offset cash collateral against amounts recognized for derivative instruments under master netting arrangements. The effect of applying FSP FIN 39-1 is recorded as a change in accounting principle through retrospective application. The effect on the consolidated balance sheet as of December 31, 2006 was a decrease of $171 in the derivative payable included in other liabilities, and corresponding decrease of $1 and $170, respectively, in other investments and derivative receivable included in other assets. See Note 4 for further discussions on the adoption of FSP FIN 39-1. ACCOUNTING FOR CERTAIN HYBRID FINANCIAL INSTRUMENTS -- AN AMENDMENT OF FASB STATEMENTS NO. 133 AND 140 In February 2006, the FASB issued Statement of Financial Accounting Standard ("SFAS") No. 155, "Accounting for Certain Hybrid Financial Instruments -- an amendment of FASB Statements No. 133 and 140" ("SFAS 155"). This statement amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"), and SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" and resolves issues addressed in SFAS 133 Implementation Issue No. D1, "Application of Statement 133 to Beneficial Interests in Securitized Financial Assets". SFAS 155: (a) permits fair value remeasurement for any hybrid financial instrument (asset or liability) that contains an embedded derivative that otherwise would require bifurcation; (b) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (c) establishes a requirement to evaluate beneficial interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (d) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and, (e) eliminates restrictions on a qualifying special-purpose entity's ability to hold passive derivative financial instruments that pertain to beneficial interests that are or contain a derivative financial instrument. SFAS 155 also requires presentation within the financial statements that identifies those hybrid financial instruments for which the fair value election has been applied and information on the income statement impact of the changes in fair value of those instruments. The Company began applying SFAS 155 to all financial instruments acquired, issued or subject to a remeasurement event beginning January 1, 2007. SFAS 155 did not have an effect on the Company's consolidated financial condition and results of operations upon adoption on January 1, 2007. ACCOUNTING BY INSURANCE ENTERPRISES FOR DEFERRED ACQUISITION COSTS ("DAC") IN CONNECTION WITH MODIFICATIONS OR EXCHANGES OF INSURANCE CONTRACTS In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs ("DAC") in Connection with Modifications or Exchanges of Insurance Contracts", ("SOP 05-1"). SOP 05-1 provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverages that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract must be written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract should be accounted for as a continuation of the replaced contract. The Company adopted SOP 05-1 on January 1, 2007 and recognized the cumulative effect of the adoption of SOP 05-1 as a reduction in retained earnings of $14, after-tax. THE MEANING OF OTHER-THAN-TEMPORARY IMPAIRMENT AND ITS APPLICATION TO CERTAIN INVESTMENTS In November 2005, the FASB released FASB Staff Position Nos. FAS 115-1 and FAS 124-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments" ("FSP 115-1"), which effectively replaces Emerging Issues Task Force No. 03-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments" ("EITF 03-1"). FSP 115-1 contains a three-step model for evaluating impairments and carries forward the disclosure requirements in EITF 03-1 pertaining to securities in an unrealized loss position. Under the model, any security in an unrealized loss position is considered impaired; an evaluation is made to determine whether the impairment is other-than-temporary; and, if an impairment is considered other-than-temporary, a realized loss is recognized to write the security's cost or amortized cost basis down to fair value. FSP 115-1 references existing other-than-temporary impairment guidance for determining when an impairment is other-than-temporary and clarifies that subsequent to the recognition of an other- F-8 than-temporary impairment loss for debt securities, an investor shall account for the security using the constant effective yield method. FSP 115-1 is effective for reporting periods beginning after December 15, 2005, with earlier application permitted. The Company adopted FSP 115-1 upon issuance. The adoption did not have a material effect on the Company's consolidated financial condition or results of operations. FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS BUSINESS COMBINATIONS In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations" ("SFAS 141(R)"). This statement replaces SFAS No. 141, "Business Combinations" ("SFAS 141") and establishes the principles and requirements for how the acquirer in a business combination: (a) measures and recognizes the identifiable assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity, (b) measures and recognizes positive goodwill acquired or a gain from bargain purchase (negative goodwill), and (c) determines the disclosure information that is decision-useful to users of financial statements in evaluating the nature and financial effects of the business combination. Some of the significant changes to the existing accounting guidance on business combinations made by SFAS 141(R) include the following: - - Most of the identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree shall be measured at their acquisition-date fair values rather than SFAS 141's requirement to allocate the cost of an acquisition to individual assets acquired and liabilities assumed based on their estimated fair values; - - Acquisition-related costs incurred by the acquirer shall be expensed in the periods in which the costs are incurred rather than included in the cost of the acquired entity; - - Goodwill shall be measured as the excess of the consideration transferred, including the fair value of any contingent consideration, plus the fair value of any noncontrolling interest in the acquiree, over the fair values of the acquired identifiable net assets, rather than measured as the excess of the cost of the acquired entity over the estimated fair values of the acquired identifiable net assets; - - Contractual pre-acquisition contingencies are to be recognized at their acquisition date fair values and noncontractual pre-acquisition contingencies are to be recognized at their acquisition date fair values only if it is more likely than not that the contingency gives rise to an asset or liability, whereas SFAS 141 generally permits the deferred recognition of pre-acquisition contingencies until the recognition criteria of SFAS No. 5, "Accounting for Contingencies" are met; and - - Contingent consideration shall be recognized at the acquisition date rather than when the contingency is resolved and consideration is issued or becomes issuable. SFAS 141(R) is effective for and shall be applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, with earlier adoption prohibited. Assets and liabilities that arose from business combinations with acquisition dates prior to the SFAS 141(R) effective date shall not be adjusted upon adoption of SFAS 141(R) with certain exceptions for acquired deferred tax assets and acquired income tax positions. The Company expects to adopt SFAS 141(R) on January 1, 2009, and has not yet determined the effect of SFAS 141(R) on its consolidated financial statements. NONCONTROLLING INTERESTS IN CONSOLIDATED FINANCIAL STATEMENTS, AN AMENDMENT OF ARB NO. 51 In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements" ("SFAS 160"). This statement amends Accounting Research Bulletin No. 51, "Consolidated Financial Statements" ("ARB 51"). Noncontrolling interest refers to the minority interest portion of the equity of a subsidiary that is not attributable directly or indirectly to a parent. SFAS 160 establishes accounting and reporting standards that require for-profit entities that prepare consolidated financial statements to: (a) present noncontrolling interests as a component of equity, separate from the parent's equity, (b) separately present the amount of consolidated net income attributable to noncontrolling interests in the income statement, (c) consistently account for changes in a parent's ownership interests in a subsidiary in which the parent entity has a controlling financial interest as equity transactions, (d) require an entity to measure at fair value its remaining interest in a subsidiary that is deconsolidated, (e) require an entity to provide sufficient disclosures that identify and clearly distinguish between interests of the parent and interests of noncontrolling owners. SFAS 160 applies to all for-profit entities that prepare consolidated financial statements, and affects those for-profit entities that have outstanding noncontrolling interests in one or more subsidiaries or that deconsolidate a subsidiary. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 with earlier adoption prohibited. The Company expects to adopt SFAS 160 on January 1, 2009 and has not yet determined the effect of SFAS 160 on its consolidated financial statements. F-9 CLARIFICATION OF THE SCOPE OF THE AUDIT AND ACCOUNTING GUIDE "INVESTMENT COMPANIES" AND ACCOUNTING BY PARENT COMPANIES AND EQUITY METHOD INVESTORS FOR INVESTMENTS IN INVESTMENT COMPANIES In June 2007, the AICPA issued Statement of Position 07-1, "Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies" ("SOP 07-1"). SOP 07-1 provides guidance for determining whether an entity is within the scope of the AICPA Audit and Accounting Guide Investment Companies ("the Guide"). This statement also addresses whether the specialized industry accounting principles of the Guide should be retained by a parent company in consolidation or by an investor that has the ability to exercise significant influence over the investment company and applies the equity method of accounting to its investment in the entity. In addition, SOP 07-1 includes certain disclosure requirements for parent companies and equity method investors in investment companies that retain investment company accounting in the parent company's consolidated financial statements or the financial statements of an equity method investor. SOP 07-1 is effective for fiscal years beginning on or after December 15, 2007, with earlier application encouraged; however, in November 2007, the FASB decided to (1) delay indefinitely the effective date of the SOP and (2) prohibit adoption of the SOP for an entity that has not early adopted the SOP. The Company did not early adopt SOP 07-1. SOP 07-1 as currently issued is not expected to have an impact on the Company's consolidated financial condition or results of operations. FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities, Including an amendment of FASB Statement No. 115" ("SFAS 159"). The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported net income caused by measuring related assets and liabilities differently. This statement permits entities to choose, at specified election dates, to measure eligible items at fair value (i.e., the fair value option). Items eligible for the fair value option include certain recognized financial assets and liabilities, rights and obligations under certain insurance contracts that are not financial instruments, host financial instruments resulting from the separation of an embedded nonfinancial derivative instrument from a nonfinancial hybrid instrument, and certain commitments. Business entities shall report unrealized gains and losses on items for which the fair value option has been elected in net income. The fair value option: (a) may be applied instrument by instrument, with certain exceptions; (b) is irrevocable (unless a new election date occurs); and (c) is applied only to entire instruments and not to portions of instruments. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007, although early adoption is permitted under certain conditions. Companies shall report the effect of the first remeasurement to fair value as a cumulative-effect adjustment to the opening balance of retained earnings. On January 1, 2008, the Company did not elect to apply the provisions of SFAS 159 to financial assets and liabilities. FAIR VALUE MEASUREMENTS FAIR VALUE UNDER SFAS NO. 157 On January 1, 2008, the Company adopted SFAS 157, which was issued by the Financial Accounting Standards Board in September 2006. For financial statement elements currently required to be measured at fair value, SFAS 157 redefines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States and enhances disclosures about fair value measurements. The new definition of fair value focuses on the price that would be received to sell the asset or paid to transfer the liability regardless of whether an observable liquid market price existed (an exit price). An exit price valuation will include margins for risk even if they are not observable. As the Company is released from risk, the margins for risk will also be released through net realized capital gains (losses) in net income. SFAS 157 provides guidance on how to measure fair value, when required, under existing accounting standards. SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels ("Level 1, 2, and 3"). 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 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 3 Unobservable inputs reflecting the reporting entity's estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). ACCOUNTING FOR GUARANTEED BENEFITS OFFERED WITH VARIABLE ANNUITIES Many of the variable annuity contracts issued or reinsured by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Those benefits are accounted for under Statement of Financial Accounting Standard No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") or AICPA Statement of Position No. 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts ("SOP 03-1"). Guaranteed minimum benefits often meet the definition of an embedded derivative F-10 under SFAS 133 as they have notional amounts (the guaranteed balance) and underlyings (the investment fund options), they require no initial net investment and they may have terms that require or permit net settlement. However, certain guaranteed minimum benefits settle only upon a single insurable event, such as death (guaranteed minimum death benefits "GMDB") or living (life contingent portion of guaranteed minimum withdrawal benefits "GMWB"), and as such are scoped out of SFAS 133 under the "insurance contract exception". Guaranteed minimum benefits that do not meet the requirements of SFAS 133 are accounted for as insurance benefits under SOP 03-1. GUARANTEED BENEFITS ACCOUNTED FOR UNDER SOP 03-1 The GMDBs issued by the Company and certain GMDBs reinsured by the Company are accounted for under SOP 03-1. In addition, the Company's GMWB "for life" allows policyholders to receive the guaranteed annual withdrawal amount for as long as they are alive even if the guaranteed remaining balance ("GRB") is exhausted. Payments beyond the GRB are considered life contingent insurance benefits and are accounted for under SOP 03-1. Benefit guarantee liabilities accounted for under SOP 03-1, absent an unlocking event as described in the "Critical Accounting Estimates" within Management's Discussion and Analysis, do not result in a change in value that is immediately reflected in net income. Under SOP 03-1, the income statement reflects the current period increase in the liability due to the deferral of a percentage of current period revenues. The percentage is determined by dividing the present value of expected claims by the present value of expected revenues using best estimate assumptions over a range of market scenarios discounted at a rate consistent with that used in the Company's DAC models. Current period revenues are impacted by the actual increase or decrease in account value. Claims recorded against the liability have no immediate impact on the income statement unless those claims exceed the liability. Periodically, the Company unlocks its benefit assumptions, including the benefit deferral rate. The impact of this change is reflected in benefits, losses and loss adjustment expenses, in net income. In the U.S., the Company sells variable annuity contracts that, in addition to the living benefits described above, offer various guaranteed death benefits. Declines in the equity market may increase the Company's net exposure to death benefits under these contracts. The Company's total gross exposure (i.e., before reinsurance) to these U.S. guaranteed death benefits is often referred to as the net amount at risk. However, the Company will incur these guaranteed death benefit payments in the future only if the policyholder has an in-the-money guaranteed death benefit at their time of death. Effective July 31, 2006, an existing reinsurance agreement between a subsidiary of the Company, Hartford Life and Annuity Insurance Company ("HLAI") and Hartford Life, Insurance. KK ("HLIKK"), a wholly owned Japanese subsidiary of Hartford Life, Inc. ("Hartford Life"), was modified to include the GMDB on covered contracts that have an associated GMIB rider. The modified reinsurance agreement applies to all contracts, GMIB product and GMDB riders in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB product issued prior to April 1, 2005, which were recaptured. Declines in equity markets as well as a strengthening of Japanese Yen in comparison to the U.S. dollar may increase the Company's exposure to these guaranteed benefits. For the guaranteed death benefits, the Company pays the greater of account value at death or a guaranteed death benefit which, depending on the contract, may be based upon the premium paid and/or the maximum anniversary value established no later than age 80, as adjusted for withdrawals under the terms of the contract. The following table provides the account value, net amount at risk and reserve amount, at December 31, 2007, for each type of guaranteed death and living benefit sold by the Company that is accounted for under SOP 03-1:
ACCOUNT NET AMOUNT SOP 03-1 VALUE (1) AT RISK RESERVE (2) - -------------------------------------------------------------------------------- U.S. Guaranteed Minimum Death Benefits $126,834 $5,106 $527 Guaranteed Minimum Death Benefits Assumed 30,724 380 4 Life Contingent Portion of "for Life" GMWBs 10,272 (*) (*) ----------- -------- ------ TOTAL $ 167,830 $ 5,486 $ 531 ----------- -------- ------
(1) Policies with "for Life" GMWB riders include both benefits accounted for under SFAS 133 and SOP 03-1 and thus are included this table and the SFAS 133 table below. However, benefits payable are generally mutually exclusive (e.g., for a given contract, only the death or living benefits, but not both are payable at one time) (See Note 8). (2) Before reinsurance. The Company uses reinsurance to manage its exposure to the mortality and equity risk associated with GMDB. Reinsurance of GMDB is accounted for under SOP 03-1. After reinsurance, the net amount at risk for U.S. GMDB is $976. After reinsurance, the net SOP 03-1 reserve for U.S. GMDB is $202. (*) Amounts are insignificant at December 31, 2007. GUARANTEED BENEFITS ACCOUNTED AT FAIR VALUE UNDER SFAS 133 The non-life contingent portion of GMWBs issued by the Company meet the definition of an embedded derivative under SFAS 133, and as such are recorded at fair value with changes in fair value recorded in net realized capital gains (losses) in net income. In bifurcating the embedded derivative, the Company attributes to the derivative a portion of total fees collected F-11 from the contract holder. Those fees attributed are set equal to the present value of future claims expected to be paid for the guaranteed living benefit embedded derivative at the inception of the contract (the "Attributed Fees"). The excess of total fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract recorded in fee income. In subsequent valuations, both the present value of future claims expected to be paid and the present value of attributed fees expected to be collected are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. GMWBs provide the policyholder with a guaranteed remaining balance ("GRB") if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. For most of the Company's GMWB for life riders, the GRB is reset on an annual basis to the maximum anniversary account value subject to a cap. If the GRB exceeds the account value for any policy, the contract is "in-the-money" by the difference between the GRB and the account value. The sum of the in-the-money and out-of-the-money contracts is comparable to net amount at risk. Certain GMIBs and guaranteed minimum accumulation benefits ("GMAB") reinsured by the Company meet the definition a freestanding derivative, even though in-form they are reinsurance. Accordingly, the following GMIB and GMAB reinsurance agreements are recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income: - - REINSURED GMIB: Effective August 31, 2005, HLAI entered into a reinsurance agreement with HLIKK where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMIB product issued by HLIKK on its variable annuity business. Effective July 31, 2006, the agreement was modified to include a tiered reinsurance premium structure. The modified reinsurance agreement applies to all contracts, GMIBs in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB product issued prior to April 1, 2005, which were recaptured. - - REINSURED GMAB: Effective September 30, 2007, HLAI entered into another reinsurance agreement where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMAB riders issued by HLIKK on certain of its variable annuity business. Due to the significance of the non-observable inputs associated with pricing the reinsurance of the GMIB and GMAB products that are free standing derivatives, the initial difference between the transaction price and the modeled value was recorded in additional paid-in capital because the reinsurance arrangements are between entities that are commonly controlled by The Hartford Financial Services Group, Inc. ("The Hartford"). The following table provides the account value, SFAS 133 fair value and GRB, at December 31, 2007, for each type of guaranteed living benefit liability sold or reinsured by the Company that is accounted for under SFAS 133, by rider fee:
(ASSET) GUARANTEED ACCOUNT LIABILITY REMAINING VALUE (1) FAIR VALUE BALANCE - ------------------------------------------------------------------------------------------ U.S. GUARANTEED MINIMUM WITHDRAWAL BENEFITS 46,088 553 34,622 NON-LIFE CONTINGENT PORTION OF "FOR LIFE" GUARANTEED MINIMUM WITHDRAWAL BENEFITS 10,272 154 10,230 REINSURED GUARANTEED LIVING BENEFITS Guaranteed Minimum Income Benefits 16,289 72 15,297 Guaranteed Minimum Accumulation Benefits 2,734 (2) 2,768 --------- ------ --------- Subtotal 19,023 70 18,065 --------- ------ --------- TOTAL $ 75,383 $ 777 $ 62,917 --------- ------ ---------
(1) "For life" GMWB policies, and their related account values, include both benefits accounted for under SFAS 133 and SOP 03-1 and thus are included in this SFAS 133 table and the SOP 03-1 table above. However, benefits payable are generally mutually exclusive (e.g., for a given contract, only the death or living benefits, but not both are payable at one time). (2) The magnitude of the SFAS 133 fair value, at December 31, 2007, was highly dependent upon the size of the block of business for guaranteed living benefits that are required to be fair valued, and the market conditions at the date of valuation, in particular high implied volatilities and low risk-free interest rates. If implied volatilities were lower and risk-free interest rates were higher at December 31, 2007, the SFAS 133 fair value would have been lower and vice versa. F-12 DERIVATIVES THAT HEDGE CAPITAL MARKETS RISK FOR GUARANTEED MINIMUM BENEFITS ACCOUNTED FOR AS DERIVATIVES Changes in capital markets or policyholder behavior may increase or decrease the Company's exposure to benefits under the guarantees. The Company uses derivative transactions, including GMWB reinsurance (described below) which meets the definition of a derivative under SFAS 133 and customized derivative transactions, to mitigate some of that exposure. Derivatives are recorded at fair value with changes in fair value recorded in net realized capital gains (losses) in net income. GMWB REINSURANCE For all U.S. GMWB contracts in effect through July 2003, the Company entered into a reinsurance arrangement to offset its exposure to the GMWB for the remaining lives of those contracts. Substantially all of the Company's reinsurance capacity was utilized as of the third quarter of 2003. Substantially all U.S. GMWB riders sold since July 2003, are not covered by reinsurance. CUSTOMIZED DERIVATIVES In June and July of 2007, the Company entered into two customized swap contracts to hedge certain risk components for the remaining term of certain blocks of non-reinsured GMWB riders. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company at the inception of the derivative transactions. Due to the significance of the non-observable inputs associated with pricing these derivatives, the initial difference between the transaction price and modeled value was deferred in accordance with EITF No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" ("EITF 02-3") and included in Other Assets in the Condensed Consolidated Balance Sheets. OTHER DERIVATIVE INSTRUMENTS The Company uses other hedging instruments to hedge its unreinsured GMWB exposure. These instruments include interest rate futures and swaps, variance swaps, S&P 500 and NASDAQ index put options and futures contracts. The Company also uses EAFE Index swaps to hedge GMWB exposure to international equity markets. The following table provides the notional amount and SFAS 133 fair value at December 31, 2007, for each type of derivative asset held by the Company to hedge capital markets risk for guaranteed living benefit sold by the Company:
NOTIONAL FAIR AMOUNT VALUE (IN MILLIONS) - -------------------------------------------------------------------------- Reinsurance $6,579 $128 Customized Derivatives 12,784 50 --------- ------ Other Derivative Instruments 8,573 592 --------- ------ TOTAL $ 27,936 $ 770 --------- ------
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARD NO. 157, "FAIR VALUE MEASUREMENTS" ("SFAS 157") Fair values for GMWB embedded derivatives, reinsured GMIB and GMAB freestanding derivatives and customized derivatives that hedge certain equity markets exposure for GMWB contracts are calculated based upon internally developed models because active, observable markets do not exist for those items. Below is a description of the Company's fair value methodologies for guaranteed benefit liabilities, the related reinsurance and customized derivatives, all accounted for under SFAS 133, prior to the adoption of SFAS 157 and subsequent to adoption of SFAS 157. PRE-SFAS 157 FAIR VALUE Prior to January 1, 2008, the Company used the guidance prescribed in SFAS 133 and other related accounting literature on fair value which represented the amount for which a financial instrument could be exchanged in a current transaction between knowledgeable, unrelated willing parties. However, under that accounting literature, when an estimate of fair value is made for liabilities where no market observable transactions exist for that liability or similar liabilities, market risk margins are only included in the valuation if the margin is identifiable, measurable and significant. If a reliable estimate of market risk margins is not obtainable, the present value of expected future cash flows, discounted at the risk free rate of interest, may be the best available estimate of fair value in the circumstances ("Pre-SFAS 157 Fair Value"). The Pre-SFAS 157 Fair Value is calculated based on actuarial and capital market assumptions related to projected cashflows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior such as lapses, fund selection, resets and withdrawal utilization (for the customized derivatives, policyholder behavior is prescribed in the derivative contract). Because of the dynamic and complex nature of these cashflows, best estimate assumptions and a Monte Carlo stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates and a blend of observable implied index volatility levels are used. Estimating these cashflows involves numerous estimates and subjective judgments including those regarding F-13 expected markets rates of return, market volatility, correlations of market index returns to funds, fund performance, discount rates and policyholder behavior. At each valuation date, the Company assumes expected returns based on risk-free rates as represented by the current LIBOR forward curve rates; forward market volatility assumptions for each underlying index based primarily on a blend of observed market "implied volatility" data; correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; three years of history for fund regression; and current risk-free spot rates as represented by the current LIBOR spot curve to determine the present value of expected future cash flows produced in the stochastic projection process. As GMWB obligations are relatively new in the marketplace, actual policyholder behavior experience is limited. As a result, estimates of future policyholder behavior are subjective and based on analogous internal and external data. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model. The Company's SFAS 157 fair value is calculated as an aggregation of the following components: Pre-SFAS 157 Fair Value, Actively-Managed Volatility Adjustment, Credit Standing Adjustment, Market Illiquidity Premium and Behavior Risk Margin. The resulting aggregation is reconciled or calibrated, if necessary, to market information that is, or may be, available to the Company, but may not be observable by other market participants, including reinsurance discussions and transactions. The Company believes the aggregation of each of these components, as necessary and as reconciled or calibrated to the market information available to the Company, results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to market participants in an active liquid market, if one existed, for those market participants to assume the risks associated with the guaranteed minimum benefits, the related reinsurance and customized derivatives, required to be fair valued. Each of the components described below are unobservable in the market place and require subjectivity by the Company in determining their value. - - ACTIVELY-MANAGED VOLATILITY ADJUSTMENT. This component incorporates the basis differential between the observable index implied index volatilities used to calculate the Pre-SFAS 157 component and the actively-managed funds underlying the variable annuity product. The Actively-Managed Volatility Adjustment is calculated using historical fund and weighted index volatilities. - - CREDIT STANDING ADJUSTMENT. This component makes an adjustment that market participants would make to reflect the risk that GMWB obligations or the GMWB reinsurance recoverables will not be fulfilled ("nonperformance risk"). SFAS 157 explicitly requires nonperformance risk to be reflected in fair value. The Company calculates the Credit Standing Adjustment by using default rates provided by rating agencies, adjusted for market recoverability. - - MARKET ILLIQUIDITY PREMIUM. This component makes an adjustment that market participants would require to reflect that GMWB obligations are illiquid and have no market observable exit prices in the capital markets. The Market Illiquidity Premium was determined using inputs that are identified in customized derivative transactions that the Company has entered into to hedge GMWB related risks. - - BEHAVIOR RISK MARGIN. This component adds a margin that market participants would require for the risk that the Company's assumptions about policyholder behavior used in the Pre-SFAS 157 model could differ from actual experience. The Behavior Risk Margin is calculated by taking the difference between adverse policyholder behavior assumptions and the best estimate assumptions used in the Pre-SFAS 157 model using the Company's long-term view on interest rates and volatility. The adverse assumptions incorporate adverse dynamic lapse behavior, greater utilization of the withdrawal features, and the potential for contract holders to shift their investment funds into more aggressive investments when allowed. SFAS 157 TRANSITION Pending the release and potential impact of adopting the proposed FASB Staff Position, "Measuring Liabilities under FASB Statement No. 157", if any, the Company expects the impact of adopting SFAS 157 for guaranteed benefits accounted for under SFAS 133 and the related reinsurance, to be recorded in the first quarter of 2008, will be a reduction to net income of $250-$350, after the effects of DAC amortization and income taxes. In addition, net realized capital gains and losses that will be recorded in 2008 and future years are also likely to be more volatile than amounts recorded in prior years. Furthermore, adoption of SFAS 157 will result in lower variable annuity fee income for new business issued in 2008 as fees attributed to the embedded derivative will increase consistent with incorporating additional risk margins and other indicia of "exit value" in the valuation of the embedded derivative. The Company is still evaluating potential changes to its hedging program as a result of the adoption of SFAS 157. However, based on analysis to date, the Company does not expect significant changes in any of its hedging targets. The loss deferred in accordance with EITF 02-3 of $51 for the customized derivatives used to hedge a portion of the GMWB risk will be recognized in retained earnings upon the adoption of SFAS 157. In addition, the change in value of the customized derivatives due to the initial adoption of SFAS 157 of $35 will also be recorded in retained earnings with subsequent changes in fair value recorded in net realized capital gains (losses) in net income. The Company's adoption of SFAS 157 will not materially impact the fair values of other derivative instruments used to hedge guaranteed minimum benefits, as those instruments are F-14 composed primarily of Level 1 and Level 2 inputs and as a result, the Company was already using market observable transactions to value those hedging instruments. Additionally, the adoption of SFAS 157 will not have a significant impact on the fair values of the Company's other financial instruments. INVESTMENTS The Company's investments in fixed maturities, which include bonds, redeemable preferred stock and commercial paper; and certain equity securities, which include common and non-redeemable preferred stocks, are classified as "available-for-sale" and accordingly, are carried at fair value with the after-tax difference from cost or amortized cost, as adjusted for the effect of deducting the life and pension policyholders' share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments, reflected in stockholder's equity as a component of accumulated other comprehensive income ("AOCI"). Policy loans are carried at outstanding balance, which approximates fair value. Mortgage loans on real estate are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances, if any. Short-term investments are carried at amortized cost, which approximates fair value. Other investments primarily consist of limited partnership interests and other alternative investments and derivatives instruments. Limited partnerships are accounted for under the equity method and accordingly the Company's share of earnings are included in net investment income. Derivatives instruments are carried at fair value. VALUATION OF FIXED MATURITIES The fair value for fixed maturity securities is largely determined by one of three primary pricing methods: third party pricing service market prices, independent broker quotations or pricing matrices. Security pricing is applied using a hierarchy or "waterfall" approach whereby prices are first sought from third party pricing services with the remaining unpriced securities submitted to independent brokers for prices or lastly priced via a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flows and prepayments speeds. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third party pricing services will normally derive the security prices through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the asset-backed securities ("ABS"), collaterized mortgage obligations ("CMOs"), and mortgage-backed securities ("MBS") pricing are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. Actual prepayment experience may vary from these estimates Prices from third party pricing services are often unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain of the Company's securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. A pricing matrix is used to price securities for which the Company is unable to obtain either a price from a third party pricing service or an independent broker quotation. The pricing matrix begins with current spread levels to determine the market price for the security. The credit spreads, as assigned by a nationally recognized rating agency, incorporate the issuer's credit rating and a risk premium, if warranted, due to the issuer's industry and the security's time to maturity. The issuer-specific yield adjustments, which can be positive or negative, are updated twice annually, as of June 30 and December 31, by an independent third party source and are intended to adjust security prices for issuer-specific factors. The matrix-priced securities at December 31, 2007 and 2006 primarily consisted of non-144A private placements and have an average duration of 4.7 and 5.0 years, respectively. The Company assigns a credit rating to these securities based upon an internal analysis of the issuer's financial strength. The Company performs a monthly analysis on the prices received from third parties to assess if the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of third party pricing services methodologies, review of pricing statistics and trends, back testing recent trades, and monitoring of trading volumes. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon available market data, the price received from the third party is adjusted accordingly. F-15 The following table presents the fair value of fixed maturity securities by pricing source as of December 31, 2007 and 2006.
PERCENTAGE PERCENTAGE 2007 OF TOTAL 2006 OF TOTAL FAIR VALUE FAIR VALUE FAIR VALUE FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- Priced via third party pricing services $35,892 78.7% $37,190 83.3% Priced via independent broker quotations 5,931 13.0% 3,567 8.0% Priced via matrices 3,526 7.7% 3,810 8.5% Priced via other methods 262 0.6% 79 0.2% --------- ------- --------- ------- TOTAL $45,611 100.0% $44,646 100.0% --------- ------- --------- -------
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between knowledgeable, unrelated willing parties using inputs, including assumptions and estimates, a market participant would utilize. As such, the estimated fair value of a financial instrument may differ significantly from the amount that could be realized if the security was sold immediately. OTHER-THAN-TEMPORARY IMPAIRMENTS ON AVAILABLE-FOR-SALE SECURITIES One of the significant estimates inherent in the valuation of investments is the evaluation of investments for other-than-temporary impairments. The evaluation of impairments is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer's financial condition or near term recovery prospects, the effects of changes in interest rates or credit spreads and the recovery period. The Company's accounting policy requires that a decline in the value of a security below its cost or amortized cost basis be assessed to determine if the decline is other-than-temporary. If the security is deemed to be other-than-temporarily impaired, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost or amortized cost basis of the security. In addition, for securities expected to be sold, an other-than-temporary impairment charge is recognized if the Company does not expect the fair value of a security to recover to cost or amortized cost prior to the expected date of sale. The fair value of the other-than-temporarily impaired investment becomes its new cost basis. The Company has a security monitoring process overseen by a committee of investment and accounting professionals ("the committee") that identifies securities that, due to certain characteristics, as described below, are subjected to an enhanced analysis on a quarterly basis. Securities not subject to EITF Issue No. 99-20, "Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continued to Be Held by a Transferor in Securitized Financial Assets" ("non-EITF Issue No. 99-20 securities") that are in an unrealized loss position, are reviewed at least quarterly to determine if an other-than-temporary impairment is present based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether a decline in value for non-EITF Issue No. 99-20 securities is other-than-temporary include: (a) the length of time and the extent to which the fair value has been or is expected to be less than cost or amortized cost, (b) the financial condition, credit rating and near-term prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. For certain securitized financial assets with contractual cash flows including ABS, EITF Issue No. 99-20 requires the Company to periodically update its best estimate of cash flows over the life of the security. If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both timing and amount, an other-than-temporary impairment charge is recognized. The Company also considers its intent and ability to retain a temporarily impaired security until recovery. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. Each quarter, during this analysis, the Company asserts its intent and ability to retain until recovery those securities judged to be temporarily impaired. Once identified, these securities are systematically restricted from trading unless approved by the committee. The committee will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer's creditworthiness, a change in regulatory requirements or a major business combination or major disposition. MORTGAGE LOAN IMPAIRMENTS Mortgage loans on real estate are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual F-16 terms of the loan agreement. For mortgage loans that are determined to be impaired, a valuation allowance is established for the difference between the carrying amount and the Company's share of either (a) the present value of the expected future cash flows discounted at the loan's original effective interest rate, (b) the loan's observable market price or (c) the fair value of the collateral. Changes in valuation allowances are recorded in net realized capital gains and losses. NET REALIZED CAPITAL GAINS AND LOSSES Net realized capital gains and losses from investment sales, after deducting the life and pension policyholders' share for certain products, are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, and the change in value of derivatives in certain fair-value hedge relationships. Impairments are recognized as net realized capital losses when investment losses in value are deemed other-than-temporary. Recoveries of principle received by the Company in excess of expected realizable value from securities previously recorded as other-than-temporarily impaired are included in net realized capital gains. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. NET INVESTMENT INCOME Interest income from fixed maturities and mortgage loans on real estate is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For high credit quality securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future principal repayments using the retrospective method. For non-highly rated securitized financial assets any yield adjustments are made using the prospective method. Prepayment fees on fixed maturities and mortgage loans are recorded in net investment income when earned. For limited partnerships, the equity method of accounting is used to recognize the Company's share of earnings. For fixed maturities that have had an other-than-temporary impairment loss, the Company amortizes the new cost basis to par or to the estimated future value over the expected remaining life of the security by adjusting the security's yield. DERIVATIVE INSTRUMENTS Overview The Company utilizes a variety of derivative instruments, including swaps, caps, floors, forwards, futures and options through one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread including issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. For a further discussion of derivative instruments, see the Derivative Instruments section of Note 3. The Company's derivative transactions are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the consolidated balance sheets at fair value. As of December 31, 2007 and 2006, approximately 89% and 82% of derivatives, respectively, based upon notional values, were priced by valuation models, which utilize independent market data, while the remaining 11% and 18%, respectively, were priced by broker quotations. The derivatives are valued using mid-market level inputs that are predominantly observable in the market place. Inputs used to value derivatives include, but are not limited to, interest swap rates, foreign currency forward and spot rates, credit spreads, interest and equity volatility and equity index levels. The Company performs a monthly analysis on the derivative valuation which includes both quantitative and qualitative analysis. Examples of procedures performed include, but are not limited to, review of pricing statistics and trends, back testing recent trades, analyzing changes in the market environment and monitoring trading volume. This discussion on derivative pricing excludes the GMWB rider and associated reinsurance contracts as well as the reinsurance contracts associated with the GMIB and GMAB products, which are discussed in the preceding paragraphs under "Accounting for Guaranteed Benefits Offered with Variable Annuities" section. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability ("fair-value" hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability ("cash-flow" hedge), (3) a foreign-currency fair value or cash-flow hedge ("foreign-currency" hedge), (4) a hedge of a net investment in a foreign operation ("net investment" hedge) or (5) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks which do not qualify for hedge accounting. Fair-Value Hedges Changes in the fair value of a derivative that is designated and qualifies as a fair-value hedge, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings with any F-17 differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense ("periodic derivative net coupon settlements") are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Cash-Flow Hedges Changes in the fair value of a derivative that is designated and qualifies as a cash-flow hedge are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the consolidated statements of income in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Foreign-Currency Hedges Changes in the fair value of derivatives that are designated and qualify as foreign-currency hedges are recorded in either current period earnings or AOCI, depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge, respectively. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Net Investment in a Foreign Operation Hedges Changes in fair value of a derivative used as a hedge of a net investment in a foreign operation, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within AOCI. Cumulative changes in fair value recorded in AOCI are reclassified into earnings upon the sale or complete, or substantially complete, liquidation of the foreign entity. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Other Investment and/or Risk Management Activities The Company's other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair-value, cash-flow, foreign-currency or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses, both at the hedge's inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the "Change in Variable Cash Flows Method", the "Change in Fair Value Method", the "Hypothetical Derivative Method", or the "Dollar Offset Method". Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is dedesignated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. F-18 When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item. Embedded Derivatives The Company purchases and issues financial instruments and products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk The Company's derivative counterparty exposure policy establishes market-based credit limits, favors long-term financial stability and creditworthiness and typically requires credit enhancement/credit risk reducing agreements. Credit risk is measured as the amount owed to the Company based on current market conditions and potential payment obligations between the Company and its counterparties. Credit exposures are generally quantified daily, netted by counterparty for each legal entity of the Company, and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the exposure policy thresholds which do not exceed $10. The Company also minimizes the credit risk in derivative instruments by entering into transactions with high quality counterparties rated A2/A or better, which are monitored by the Company's internal compliance unit and reviewed frequently by senior management. In addition, the compliance unit monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company also maintains a policy of requiring that derivative contracts, other than exchange traded contracts, currency forward contracts, and certain embedded derivatives, be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty and permits right of offset. To date, the Company has not incurred any losses on derivative instruments due to counterparty nonperformance. Product Derivatives and Risk Management The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit ("GMWB") rider. The Company has also assumed, through reinsurance, from HLIKK GMIB and GMAB. The fair value of the GMWB, GMIB and GMAB is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. Because of the dynamic and complex nature of these cash flows, best estimate assumptions and stochastic techniques under a variety of market return scenarios are used. Estimating these cash flows involves numerous estimates and subjective judgments including those regarding expected market rates of return, market volatility, correlations of market returns and discount rates. At each valuation date, the Company assumes expected returns based on risk-free rates; market volatility assumptions for each underlying index based on a blend of observed market "implied volatility" data and annualized standard deviations of monthly returns using the most recent 20 years of observed market performance correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; and current risk-free spot rates, to determine the present value of expected future cash flows produced in the stochastic projection process. Changes in capital market assumptions can significantly change the value of the GMWB, GMIB, and GMAB. In valuing the embedded derivative, the Company attributes to the derivative a portion of the fees collected from the contract holder equal to the present value of future GMWB claims (the "Attributed Fees"). All changes in the fair value of the embedded GMWB derivative are recorded in net realized capital gains and losses. The excess of fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract recorded in fee income. Upon adoption of SFAS 157, the Company will revise many of the assumptions used to value GMWB, GMIB and GMAB. For contracts issued prior to July 2003, the Company has a reinsurance arrangement in place to transfer its risk of loss due to GMWB. This arrangement is recognized as a derivative and carried at fair value in reinsurance recoverables. Changes in the fair value of the reinsurance agreement is recorded in net realized capital gains and losses. As of July 2003, the Company had substantially exhausted all of its reinsurance capacity, with respect to contracts issued after July 2003, and began hedging its exposure to the GMWB rider using a sophisticated program involving interest rate futures, Standard and Poor's ("S&P") 500 and NASDAQ index put options and futures contracts and Europe, Australasia and Far East ("EAFE") Index swaps to hedge GMWB exposure to international equity markets. During 2007, the Company also purchased customized derivative instruments to hedge capital market risks associated with GMWB. For the years ended December 31, 2007, 2006 and 2005, net realized capital gains and losses included the change in market value of the embedded derivative related to the GMWB F-19 and GMAB liability, the derivative reinsurance arrangement and the related derivative contracts that were purchased as economic hedges, the net effect of which was a $283 loss, $26 loss and $46 loss, before deferred policy acquisition costs and tax effects, respectively. A contract is 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money', the Company's exposure, after reinsurance, as of December 31, 2007, was $139. However, the only ways the contract holder can monetize the excess of the GRB over the account value of the contract is upon death or if their account value is reduced to zero through a combination of a series of withdrawals that do not exceed a specific percentage of the premiums paid per year and market declines. If the account value is reduced to zero, the contract holder will receive a period certain annuity equal to the remaining GRB. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more or less than $139. SEPARATE ACCOUNTS The Company maintains separate account assets and liabilities, which are reported at fair value. Separate accounts include contracts, wherein the policyholder assumes the investment risk. Separate account assets are segregated from other investments and investment income and gains and losses accrue directly to the policyholder. DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS The deferred policy acquisition costs asset and present value of future profits ("PVFP") intangible asset (hereafter, referred to collectively as "DAC") related to investment contracts and universal life-type contracts (including variable annuities) are amortized in the same way, over the estimated life of the contracts acquired using the retrospective deposit method. Under the retrospective deposit method, acquisition costs are amortized in proportion to the present value of estimated gross profits ("EGPs"). EGPs are also used to amortize other assets and liabilities on the Company's balance sheet, such as sales inducement assets and unearned revenue reserves ("URR"). Components of EGPs are used to determine reserves for guaranteed minimum death, income and universal life secondary guarantee benefits accounted for and collectively referred to as "SOP 03-1 reserves". At December 31, 2007 and 2006, the carrying value of the Company's DAC asset was $8.4 billion and $7.3 billion, respectively. At December 31, 2007, the sales inducement, unearned revenue reserves, and SOP 03-1 balances were $445, $1.0 billion and $550, respectively. At December 31, 2006, the sales inducement, unearned revenue reserves and SOP 03-1 reserves were $397, $769 and $483, respectively. For most contracts, the Company estimates gross profits over a 20 year horizon as estimated profits emerging subsequent to year 20 are immaterial. The Company uses other amortization bases for amortizing DAC, such as gross costs (net of reinsurance), as a replacement for EGPs when EGPs are expected to be negative for multiple years of the contract's life. Actual gross profits, in a given reporting period, that vary from management's initial estimates result in increases or decreases in the rate of amortization, commonly referred to as a "true-up", which are recorded in the current period. The true-up recorded for the years ended December 31, 2007, 2006 and 2005 was an increase to amortization of $0, $45 and $27, respectively. Products sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, and are, to a large extent, a function of future account value projections for individual variable annuity products and to a lesser extent for variable universal life products. The projection of future account values requires the use of certain assumptions. The assumptions considered to be important in the projection of future account value, and hence the EGPs, include separate account fund performance, which is impacted by separate account fund mix, less fees assessed against the contract holder's account balance, surrender and lapse rates, interest margin, mortality and hedging costs. The assumptions are developed as part of an annual process and are dependent upon the Company's current best estimates of future events. The Company's current separate account return assumption is approximately 8% (after fund fees, but before mortality and expense charges). Beginning in 2007, the Company estimated gross profits using the mean of EGPs derived from a set of stochastic scenarios that have been calibrated to our estimated separate account return as compared to prior years where we used a single deterministic estimation. Estimating future gross profits is a complex process requiring considerable judgment and the forecasting of events well into the future. The estimation process, the underlying assumptions and the resulting EGPs, are evaluated regularly. During the third quarter of 2007 and the fourth quarter of 2006, the Company refined its estimation process for DAC amortization and completed a comprehensive study of assumptions. The Company plans to complete a comprehensive assumption study and refine its estimate of future gross profits during the third quarter of each successive year. Upon completion of an assumption study, the Company revises its assumptions to reflect its current best estimate, thereby changing its estimate of projected account values and the related EGPs in the DAC, sales inducement and unearned revenue reserve amortization models as well as the SOP 03-1 reserving models. The DAC asset, as well as the sales inducement asset, unearned revenue reserves and SOP 03-1 reserves are adjusted with an offsetting benefit or charge to income to reflect such changes in the period of the revision, a process known as "unlocking". An unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable F-20 compared to previous estimates. An unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. In addition to when a comprehensive assumption study is completed, revisions to best estimate assumptions used to estimate future gross profits are necessary when the EGPs in the Company's models fall outside of an independently determined reasonable range of EGPs. The Company performs a quantitative process each quarter to determine the reasonable range of EGPs. This process involves the use of internally developed models, which run a large number of stochastically determined scenarios of separate account fund performance. Incorporated in each scenario are assumptions with respect to lapse rates, mortality, and expenses, based on the Company's most recent assumption study. These scenarios are run for the Company's individual variable annuity businesses, the Company's Retirement Plans businesses and for the Company's individual variable universal life business and are used to calculate statistically significant ranges of reasonable EGPs. The statistical ranges produced from the stochastic scenarios are compared to the present value of EGPs used in the Company's models. If EGPs used in the Company's models fall outside of the statistical ranges of reasonable EGPs, an "unlock" would be necessary. If EGPs used in the Company's models fall inside of the statistical ranges of reasonable EGPs, the Company will not solely rely on the results of the quantitative analysis to determine the necessity of an unlock. In addition, the Company considers, on a quarterly basis, other qualitative factors such as market, product, regulatory and policyholder behavior trends and may also revise EGPs if those trends are expected to be significant and were not or could not be included in the statistically significant ranges of reasonable EGPs. UNLOCK RESULTS During the third quarter of 2007 and the fourth quarter of 2006, the Company completed an annual, comprehensive study of assumptions underlying EGPs, resulting in an "unlock". The study covered all assumptions, including mortality, lapses, expenses, hedging costs, and separate account returns, in substantially all product lines. The new best estimate assumptions were applied to the current in-force to project future gross profits. The after-tax impact on the Company's assets and liabilities as a result of the unlock during the third quarter of 2007 was as follows:
Unearned Death Sales DAC and Revenue Benefit Inducement PVFP Reserves Reserves (1) Assets Total (2) - --------------------------------------------------------------------------------------------------------------------------------- SEGMENT AFTER-TAX (CHARGE) BENEFIT Retail $181 $(5) $(4) $9 $181 Retirement Plans (9) -- -- -- (9) Institutional 1 -- -- -- 1 Individual Life 24 (8) -- -- 16 ------ ----- ---- ---- ------ TOTAL $197 $(13) $(4) $9 $189 ------ ----- ---- ---- ------
(1) As a result of the unlock, death benefit reserves, in Retail, decreased $4, pre-tax, offset by a decrease of $10,pre-tax, in reinsurance recoverables. (2) The following were the most significant contributors to the unlock amounts recorded during the third quarter of 2007: - Actual separate account returns were above our aggregated estimated return. - During the third quarter of 2007, the Company estimated gross profits using the mean of EGPs derived from a set of stochastic scenarios that have been calibrated to our estimated separate account return as compared to prior year where we used a single deterministic estimation. The impact of this change in estimation was a benefit of $20, after-tax, for variable annuities. - As part of its continual enhancement to its assumption setting processes and in connection with its assumption study, the Company included dynamic lapse behavior assumptions. Dynamic lapses reflect that lapse behavior will be different depending upon market movements. The impact of this assumption change along with other base lapse rate changes was an approximate benefit of $40, after-tax, for variable annuities. As a result of the unlock in the third quarter of 2007, the Company expects an immaterial change to total Company DAC amortization in 2008. F-21 The after-tax impact on the Company's assets and liabilities as a result of the unlock during the fourth quarter of 2006 was as follows:
Unearned Death Sales DAC and Revenue Benefit Inducement PVFP Reserves Reserves (1) Assets Total - --------------------------------------------------------------------------------------------------------------------------------- SEGMENT AFTER-TAX (CHARGE) BENEFIT Retail $(116) $5 $(10) $3 $(118) Retirement Plans 20 -- -- -- 20 Individual Life (46) 30 -- -- (16) ------- ---- ----- ---- ------- TOTAL $(142) $35 $(10) $3 $(114) ------- ---- ----- ---- -------
(1) As a result of the unlock, death benefit reserves, in the Retail, increased $294, offset by an increase of $279 in reinsurance recoverables. An "unlock" only revises EGPs to reflect current best estimate assumptions. The Company must also test the aggregate recoverability of the DAC and sales inducement assets by comparing the amounts deferred to the present value of total EGPs. In addition, the Company routinely stress tests its DAC and sales inducement assets for recoverability against severe declines in its separate account assets, which could occur if the equity markets experienced a significant sell-off, as the majority of policyholders' funds in the separate accounts is invested in the equity market. As of December 31, 2007, the Company believed individual variable annuity separate account assets could fall, through a combination of negative market returns, lapses and mortality, by at least 54%, before portions of its DAC and sales inducement assets would be unrecoverable. RESERVE FOR FUTURE POLICY BENEFITS AND UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Liabilities for the Company's group life and disability contracts as well its individual term life insurance policies include amounts for unpaid losses and future policy benefits. Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported. Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued. The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company's earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company's actual experience when appropriate. In particular, for the Company's group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company's experience, incorporating factors such as gender, elimination period and diagnosis. These reserves are computed such that they are expected to meet the Company's future policy obligations. Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company's policy obligations at their maturities or in the event of an insured's death. Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company's reserve levels and related future operations and, as such, provisions for adverse deviation are built into the long-tailed liability assumptions. Certain contracts classified as universal life-type may also include additional death or other insurance benefit features, such as guaranteed minimum death benefits offered with variable annuity contracts or no lapse guarantees offered with universal life insurance contracts. An additional liability is established for these benefits by estimating the expected present value of the benefits in excess of the projected account value in proportion to the present value of total expected assessments. Excess benefits are accrued as a liability as actual assessments are recorded. Determination of the expected value of excess benefits and assessments are based on a range of scenarios and assumptions including those related to market rates of return and volatility, contract surrender rates and mortality experience. Revisions to assumptions are made consistent with the Company's process for an unlock. See Life Deferred Policy Acquisition Costs and Present value of Future Benefits in this Note. OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE The Company has classified its fixed and variable annuities, 401(k), certain governmental annuities, private placement life insurance ("PPLI"), variable universal life insurance, universal life insurance and interest sensitive whole life insurance as universal life-type contracts. The liability for universal life-type contracts is equal to the balance that accrues to the benefit of the policyholders as of the financial statement date (commonly referred to as the account value), including credited interest, amounts that have been assessed to compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on termination of the contract. F-22 The Company has classified its institutional and governmental products, without life contingencies, including funding agreements, certain structured settlements and guaranteed investment contracts, as investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through the financial statement date. Contract holder funds include funding agreements held by VIE issuing medium-term notes. REVENUE RECOGNITION For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders' account balances and are recognized in the period in which services are provided. For the Company's traditional life and group disability products premiums are recognized as revenue when due from policyholders. FOREIGN CURRENCY TRANSLATION Foreign currency translation gains and losses are reflected in stockholder's equity as a component of accumulated other comprehensive income. The Company's assumed foreign balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. DIVIDENDS TO POLICYHOLDERS Policyholder dividends are paid to certain policies, which are referred to as participating policies. Such dividends are accrued using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Participating life insurance in-force accounted for 7%, 3% and 3% as of December 31, 2007, 2006 and 2005, respectively, of total life insurance in-force. Dividends to policyholders were $11, $22 and $37 for the years ended December 31, 2007, 2006 and 2005, respectively. There were no additional amounts of income allocated to participating policyholders. If limitations exist on the amount of net income from participating life insurance contracts that may be distributed to stockholder's, the policyholder's share of net income on those contracts that cannot be distributed is excluded from stockholder's equity by a charge to operations and a credit to a liability. REINSURANCE Through both facultative and treaty reinsurance agreements, the Company cedes a share of the risks it has underwritten to other insurance companies. Assumed reinsurance refers to the Company's acceptance of certain insurance risks that other insurance companies have underwritten. Reinsurance accounting is followed for ceded and assumed transactions when the risk transfer provisions of SFAS 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts," have been met. To meet risk transfer requirements, a reinsurance contract must include insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. Earned premiums and incurred losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables include balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. INCOME TAXES The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. 2. SEGMENT INFORMATION The Company has four reporting segments: Retail Products Group ("Retail"), Retirement Plans ("Retirement"), Institutional Solutions Group ("Institutional") and Individual Life. In 2007, the Company changed its reporting for realized gains and losses, as well as credit risk charges previously allocated between Other and each of the reporting segments. All segment data for prior reporting periods have been adjusted to reflect the current segment reporting. Retail offers individual variable and fixed market value adjusted ("MVA") annuities. Retirement Plans provides products and services to corporations pursuant to Section 401(k) and products and services to municipalities and not-for-profit organizations under Section 457 and 403(b) of the IRS code. F-23 Institutional primarily offers institutional liability products, including stable value products, structured settlements and institutional annuities (primarily terminal funding cases), as well as variable Private Placement Life Insurance ("PPLI") owned by corporations and high net worth individuals. Furthermore, Institutional offers additional individual products including structured settlements, single premium immediate annuities and longevity assurance. Individual Life sells a variety of life insurance products, including variable universal life, universal life, interest sensitive whole life and term life. The Company includes in an Other category its leveraged PPLI product line of business; corporate items not directly allocated to any of its reporting segments; intersegment eliminations, guaranteed minimum income benefit ("GMIB'), guaranteed minimum death benefit ("GMDB") and guaranteed minimum accumulation benefit ("GMAB") reinsurance assumed from Hartford Life Insurance KK ("HLIKK"), a related party and subsidiary of Hartford Life, as well as certain group benefit products, including group life and group disability insurance that is directly written by the Company and for which nearly half is ceded to its parent, HLA. The accounting policies of the reportable operating segments are the same as those described in the summary of significant accounting policies in Note 1. The Company evaluates performance of its segments based on revenues, net income and the segment's return on allocated capital. Each operating segment is allocated corporate surplus as needed to support its business. The following tables represent summarized financial information concerning the Company's segments.
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- REVENUES BY PRODUCT LINE REVENUES LIFE Earned premiums, fees, and other considerations RETAIL Individual annuity: Individual variable annuity $2,103 $1,835 $1,629 Fixed / MVA Annuity 1 3 (2) Other -- -- -- -------- -------- -------- Total Retail 2,104 1,838 1,627 RETIREMENT PLANS 401(k) 179 154 106 403(b)/457 50 45 43 -------- -------- -------- Total Retirement Plans 229 199 149 INSTITUTIONAL IIP 1,012 623 516 PPLI 224 103 105 -------- -------- -------- Total Institutional 1,236 726 621 INDIVIDUAL LIFE Total Individual Life 760 780 716 OTHER 163 117 147 -------- -------- -------- Total Life premiums, fees, and other considerations 4,492 3,660 3,260 Net investment income 3,048 2,728 2,569 Net realized capital losses (934) (299) 75 -------- -------- -------- TOTAL LIFE 6,606 6,089 5,904 -------- -------- --------
NET INCOME (LOSS) 2007 2006 2005 - --------------------------------------------------------------------------------- Retail $663 $397 $480 Retirement Plans 53 94 73 Institutional 7 69 107 Individual Life 169 137 157 Other (152) 34 92 ------- ------- --- TOTAL NET INCOME $740 $731 $909 ------- ------- ---
F-24
2007 2006 2005 - -------------------------------------------------------------------------------- NET INVESTMENT INCOME Retail $815 $835 $934 Retirement Plans 355 326 311 Institutional 1,226 987 784 Individual Life 331 293 272 Other 321 287 268 ------- ------- ------- TOTAL NET INVESTMENT INCOME $3,048 $2,728 $2,569 ------- ------- ------- AMORTIZATION OF DEFERRED POLICY ACQUISITION AND PRESENT VALUE OF FUTURE PROFITS Retail $316 $913 $685 Retirement Plans 58 (4) 31 Institutional 23 32 32 Individual Life 117 235 198 Other 1 (1) (1) ------- ------- ------- TOTAL AMORTIZATION OF DAC $515 $1,175 $945 ------- ------- ------- INCOME TAX EXPENSE (BENEFIT) Retail $137 $(40) $11 Retirement Plans 14 35 22 Institutional (5) 26 49 Individual Life 81 60 73 Other (1) (59) 22 52 ------- ------- ------- TOTAL INCOME TAX EXPENSE $168 $103 $207 ------- ------- -------
DECEMBER 31, 2007 2006 - -------------------------------------------------------------------------------- ASSETS Retail $135,244 $129,158 Retirement Plans 28,157 24,596 Institutional 77,990 65,897 Individual Life 15,151 13,810 Other 9,670 8,009 ----------- ----------- TOTAL ASSETS $266,212 $241,470 ----------- ----------- DAC Retail $5,182 $4,561 Retirement Plans 658 543 Institutional 143 111 Individual Life 2,411 2,119 Other (1) -- ----------- ----------- TOTAL DAC $8,393 $7,334 ----------- ----------- RESERVE FOR FUTURE POLICY BENEFITS Retail $944 $845 Retirement Plans 333 357 Institutional 6,657 5,711 Individual Life 685 575 Other 777 721 ----------- ----------- TOTAL RESERVE FOR FUTURE POLICY BENEFITS $9,396 $8,209 ----------- ----------- OTHER POLICYHOLDER FUNDS Retail $15,391 $15,008 Retirement Plans 5,591 5,544 Institutional 12,455 11,401 Individual Life 5,210 4,845 Other 3,730 3,393 ----------- ----------- TOTAL OTHER POLICYHOLDER FUNDS $42,377 $40,191 ----------- -----------
F-25 3. INVESTMENTS AND DERIVATIVE INSTRUMENTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- COMPONENTS OF NET INVESTMENT INCOME Fixed maturities (1) $2,710 $2,459 $2,275 Policy loans 132 140 142 Mortgage loans on real estate 227 126 64 Other investments 35 53 125 Gross investment income 3,104 2,778 2,606 Less: Investment expenses 56 50 37 ------- ------- ------- NET INVESTMENT INCOME $3,048 $2,728 $2,569 ------- ------- ------- COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES) Fixed maturities $(248) $(105) $57 Equity securities (46) (3) 8 Foreign currency transaction remeasurements 102 18 157 Derivatives and other (2) (742) (209) (147) ------- ------- ------- NET REALIZED CAPITAL GAINS (LOSSES) $(934) $(299) $75 ------- ------- -------
(1) Includes income on short-term bonds. (2) Primarily consists of changes in fair value on non-qualifying derivatives, changes in fair value of certain derivatives in fair value hedge relationships and hedge ineffectiveness on qualifying derivative instruments.
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- COMPONENTS OF NET UNREALIZED GAINS (LOSSES) ON AVAILABLE-FOR-SALE SECURITIES Fixed maturities $(597) $800 $986 Equity securities (42) 8 7 Net unrealized gains credited to policyholders 3 (4) (9) ------- ------- ------- Net unrealized gains (636) 804 984 Deferred income taxes and other items (304) 304 407 ------- ------- ------- Net unrealized gains (losses), net of tax -- end of year (332) 500 577 Net unrealized gains, net of tax -- beginning of year 500 577 1,124 ------- ------- ------- CHANGE IN UNREALIZED LOSSES ON AVAILABLE-FOR-SALE SECURITIES $(832) $(77) $(547) ------- ------- -------
F-26 COMPONENTS OF FIXED MATURITY INVESTMENTS
AS OF DECEMBER 31, 2007 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE - --------------------------------------------------------------------------------------------------------------------------------- BONDS AND NOTES ABS $7,602 $24 $(519) $7,107 CMOs Agency backed 793 18 (3) 808 Non-agency backed 411 4 (2) 413 Commercial mortgage-backed securities ("CMBS") 11,515 159 (572) 11,102 Corporate 21,928 807 (571) 22,164 Government/Government agencies Foreign 465 35 (2) 498 United States 516 14 (1) 529 MBS 1,750 15 (15) 1,750 States, municipalities and political subdivisions 1,226 32 (20) 1,238 Redeemable preferred stock 2 2 (2) 2 --------- -------- --------- --------- TOTAL FIXED MATURITIES $46,208 $1,110 $(1,707) $45,611 --------- -------- --------- ---------
AS OF DECEMBER 31, 2006 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE - --------------------------------------------------------------------------------------------------------------------------------- BONDS AND NOTES ABS $6,170 $38 $(41) $6,167 CMOs Agency backed 778 8 (5) 781 Non-agency backed 76 -- -- 76 Commercial mortgage-backed securities ("CMBS") 10,806 146 (71) 10,881 Corporate 21,982 911 (206) 22,687 Government/Government agencies Foreign 568 44 (4) 608 United States 542 2 (5) 539 MBS 1,808 6 (31) 1,783 States, municipalities and political subdivisions 1,114 23 (15) 1,122 Redeemable preferred stock 2 -- -- 2 --------- -------- ------- --------- TOTAL FIXED MATURITIES $43,846 $1,178 $(378) $44,646 --------- -------- ------- ---------
The amortized cost and estimated fair value of fixed maturity investments at December 31, 2007 by contractual maturity year are shown below.
AMORTIZED COST FAIR VALUE - -------------------------------------------------------------------------------- MATURITY One year or less $767 $805 Over one year through five years 7,389 7,675 Over five years through ten years 6,041 5,994 Over ten years 21,455 21,059 Subtotal 35,652 35,533 ABS, MBS, and CMOs 10,556 10,078 --------- --------- TOTAL $46,208 $45,611 --------- ---------
Estimated maturities may differ from contractual maturities due to security call or prepayment provisions because of the potential for prepayment on certain mortgage- and asset-backed securities which is why ABS, MBS, and CMOs are not categorized by contractual maturity. The CMBS are categorized by contractual maturity because they generally are not subject to prepayment risk as these securities are generally structured to include forms of call protections such as yield maintenance charges, prepayment penalties or lockouts, and defeasance. F-27 SALES OF FIXED MATURITY AND AVAILABLE-FOR-SALE EQUITY SECURITY INVESTMENTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- SALE OF FIXED MATURITIES Sale proceeds $12,415 $16,159 $15,784 Gross gains 246 210 302 Gross losses (135) (230) (218) SALE OF AVAILABLE-FOR-SALE EQUITY SECURITIES Sale proceeds $296 $249 $38 Gross gains 12 5 8 Gross losses (7) (5) -- --------- --------- ---------
CONCENTRATION OF CREDIT RISK The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company is not exposed to any concentration of credit risk of a single issuer greater than 10% of the Company's stockholder's equity other than U.S. government and certain U.S. government agencies. Other than U.S. government and U.S. government agencies, the Company's largest three exposures by issuer including multiple investment grade tranches of the same security as of December 31, 2007 were Wachovia Bank Commercial Mortgage Trust, Goldman Equity Office Properties and PARCS-R and as of December 31, 2006 were Wachovia Bank Commercial Mortgage Trust, General Electric Company, and Citigroup, Inc., which each comprise less than 1.0%, of total invested assets. Wachovia Bank Commercial Mortgage Trust, Goldman Equity Office Properties, and PARCS-R include multiple investment grade tranches. The Company's largest three exposures by sector, as of December 31, 2007 and 2006, were commercial mortgage and real estate, financial services and residential mortgages which comprised approximately 28%, 14% and 10%, respectively, for 2007 and 26%, 13% and 8%, respectively, for 2006, of total invested assets. The Company's investments in states, municipalities and political subdivisions are geographically dispersed throughout the United States. As of December 31, 2007 and 2006, the largest concentrations were in California, Oregon, and Illinois which each comprised less than 1% of total invested assets, respectively. SECURITY UNREALIZED LOSS AGING The Company has a security monitoring process overseen by a committee of investment and accounting professionals that, on a quarterly basis, identifies securities in an unrealized loss position that could potentially be other-than-temporarily impaired. For further discussion regarding the Company's other-than-temporary impairment policy, see the Investments section of Note 2. Due to the issuers' continued satisfaction of the securities' obligations in accordance with their contractual terms and the expectation that they will continue to do so, management's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in market value, as well as the evaluation of the fundamentals of the issuers' financial condition and other objective evidence, the Company believes that the prices of the securities in the sectors identified in the tables below were temporarily depressed as of December 31, 2007 and 2006. F-28 The following tables present amortized cost, fair value and unrealized losses for the Company's fixed maturity and available-for-sale equity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2007.
2007 LESS THAN 12 MONTHS 12 MONTHS OR MORE AMORTIZED FAIR UNREALIZED AMORTIZED FAIR UNREALIZED COST VALUE LOSSES COST VALUE LOSSES - ----------------------------------------------------------------------------------------------------------------------------------- ABS $6,271 $5,789 $(482) $497 460 $(37) CMOs Agency backed 270 268 (2) 60 59 (1) Non-agency backed 97 96 (1) 33 32 (1) CMBS 5,493 5,010 (483) 1,808 1,719 (89) Corporate 8,354 7,920 (434) 2,554 2,417 (137) Government/Government agencies Foreign 86 84 (2) 43 43 -- United States 136 135 (1) 7 7 -- MBS 49 48 (1) 760 746 (14) States, municipalities and political subdivisions 383 373 (10) 189 179 (10) Redeemable preferred stock 4 2 (2) -- -- -- -------- -------- -------- ------- -------- ------- TOTAL FIXED MATURITIES 21,143 19,725 (1,418) 5,951 5,662 (289) Common stock 106 102 (4) -- -- -- Non-redeemable preferred stock 509 463 (46) 20 19 (1) -------- -------- -------- ------- -------- ------- TOTAL EQUITY 615 565 (50) 20 19 (1) -------- -------- -------- ------- -------- ------- TOTAL TEMPORARILY IMPAIRED SECURITIES $21,758 $20,290 $(1,468) $5,971 $5,681 $(290) -------- -------- -------- ------- -------- -------
2007 TOTAL AMORTIZED FAIR UNREALIZED COST VALUE LOSSES - ----------------------------------------------------------------------------------- ABS $6,768 $6,249 $(519) CMOs Agency backed 330 327 (3) Non-agency backed 130 128 (2) CMBS 7,301 6,729 (572) Corporate 10,908 10,337 (571) Government/Government agencies Foreign 129 127 (2) United States 143 142 (1) MBS 809 794 (15) States, municipalities and political subdivisions 572 552 (20) Redeemable preferred stock 4 2 (2) --------- --------- --------- TOTAL FIXED MATURITIES 27,094 25,387 (1,707) Common stock 106 102 (4) Non-redeemable preferred stock 529 482 (47) --------- --------- --------- TOTAL EQUITY 635 584 (51) --------- --------- --------- TOTAL TEMPORARILY IMPAIRED SECURITIES $27,729 $25,971 $(1,758) --------- --------- ---------
As of December 31, 2007, fixed maturities, comprised of approximately 2,920 securities, accounted for approximately 97% of the Company's total unrealized loss amount. The remaining 3% primarily consisted of non-redeemable preferred stock in the financial services sector, the majority of which were in an unrealized loss position for less than six months. Other-than-temporary impairments for certain ABS and CMBS are recognized if the fair value of the security, as determined by external pricing sources, is less than its cost or amortized cost and there has been a decrease in the present value of the expected cash flows since the last reporting period. Based on management's best estimate of future cash flows, there were no such ABS and CMBS in an unrealized loss position as of December 31, 2007 that were deemed to be other-than-temporarily impaired. Fixed maturity securities in an unrealized loss position for less than twelve months were comprised of approximately 1,850 securities. The majority of these securities are investment grade fixed maturities depressed due to changes in credit spreads from the date of purchase. As of December 31, 2007, 81% were securities priced at or greater than 90% of amortized cost. The remaining securities were primarily composed of CMBS, ABS, and corporate securities in the financial services sector, of F-29 which 78% had a credit rating of A or above as of December 31, 2007. The severity of the depression resulted from credit spread widening due to tightened lending conditions and the market's flight to quality securities. Fixed maturity securities depressed for twelve months or more as of December 31, 2007 were comprised of approximately 1,160 securities, with the majority of the unrealized loss amount relating to CMBS, corporate fixed maturities within the financial services sector and ABS. A description of the events contributing to the security types' unrealized loss position and the factors considered in determining that recording an other-than-temporary impairment was not warranted are outlined below. CMBS -- The CMBS in an unrealized loss position for twelve months or more as of December 31, 2007 were primarily the result of credit spreads widening from the security purchase date. The recent price depression resulted from widening credit spreads primarily due to tightened lending conditions and the market's flight to quality securities. However, commercial real estate fundamentals still appear strong with delinquencies, defaults and losses holding to relatively low levels. Substantially all of these securities are investment grade securities with an average price of 96% of amortized cost as of December 31, 2007. Future changes in fair value of these securities are primarily dependent on sector fundamentals, credit spread movements, and changes in interest rates. CORPORATE -- Corporate securities in an unrealized loss position for twelve months or more as of December 31, 2007 were primarily the result of credit spreads widening from the security purchase date primarily due to tightened lending conditions and the market's flight to quality securities. Substantially all of these securities are investment grade securities with an average price of 96% of amortized cost. Future changes in fair value of these securities are primarily dependent on the extent of future issuer credit losses, return of liquidity, and changes in general market conditions, including interest rates and credit spread movements. MORTGAGE LOANS The carrying value of mortgage loans on real estate was $4.2 billion and $2.6 billion as of December 31, 2007 and 2006, respectively. The Company's mortgage loans are collateralized by a variety of commercial and agricultural properties. The mortgage loans are diversified both geographically throughout the United States and by property type. At December 31, 2007 and 2006, the Company held no impaired, restructured, delinquent or in-process-of-foreclosure mortgage loans. The Company had no valuation allowance for mortgage loans at December 31, 2007 and 2006. The following table presents commercial mortgage loans by region and property type. COMMERCIAL MORTGAGE LOANS ON REAL ESTATE BY REGION
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING VALUE PERCENT OF TOTAL CARRYING VALUE PERCENT OF TOTAL - ------------------------------------------------------------------------------------------------------------------------ East North Central $101 2.4% $94 3.6% East South Central -- -- -- -- Middle Atlantic 503 12.1% 470 17.9% Mountain 101 2.4% 24 0.9% New England 348 8.4% 166 6.3% Pacific 959 23.0% 523 19.9% South Atlantic 749 18.0% 551 20.9% West North Central 25 0.6% 6 0.2% West South Central 179 4.3% 100 3.8% Other (1) 1,201 28.8% 697 26.5% -------- ------- -------- ------- TOTAL $4,166 100.0% $2,631 100.0% -------- ------- -------- -------
(1) Includes multi-regional properties. COMMERCIAL MORTGAGE LOANS ON REAL ESTATE BY PROPERTY TYPE
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING VALUE PERCENT OF TOTAL CARRYING VALUE PERCENT OF TOTAL - ------------------------------------------------------------------------------------------------------------------------ Industrial $424 10.2% $298 11.3% Lodging 424 10.2% 413 15.7% Agricultural 236 5.7% 58 2.2% Multifamily 708 17.0% 250 9.5% Office 1,550 37.2% 1,130 43.0% Retail 702 16.8% 352 13.4% Other 122 2.9% 130 4.9% -------- ------- -------- ------- TOTAL $4,166 100.0% $2,631 100.0% -------- ------- -------- -------
F-30 VARIABLE INTEREST ENTITIES ("VIE") In the normal course of business, the Company becomes involved with variable interest entities primarily as a collateral manager and through normal investment activities. The Company's involvement includes providing investment management and administrative services, and holding ownership or other investment interests in the entities. The following table summarizes the total assets, liabilities and maximum exposure to loss relating to VIEs for which the Company has concluded it is the primary beneficiary. Accordingly, the results of operations and financial position of these VIEs are included along with the corresponding minority interest liabilities in the accompanying consolidated financial statements.
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING MAXIMUM EXPOSURE CARRYING MAXIMUM EXPOSURE VALUE (1) LIABILITY (2) TO LOSS (3) VALUE (1) LIABILITY (2) TO LOSS (3) - ------------------------------------------------------------------------------------------------------------------------------ Collateralized loan obligations ("CLOs") and other funds (4) $359 $199 $171 $296 $167 $136 Limited partnerships 309 121 150 103 15 75 Other investments (5) 65 -- 81 -- -- -- ----- ----- ----- ----- ----- ----- TOTAL (6) $733 $320 $402 $399 $182 $211 ----- ----- ----- ----- ----- -----
(1) The carrying value of CLOs and other funds and Other investments is equal to fair value. Limited partnerships are accounted for under the equity method. (2) Creditors have no recourse against the Company in the event of default by the VIE. (3) The maximum exposure to loss does not include changes in fair value or the Company's proportionate shares of earnings associated with limited partnerships accounted for under the equity method. The Company's maximum exposure to loss as of December 31, 2007 and 2006 based on the carrying value was $413 and $217, respectively. The Company's maximum exposure to loss as of December 31, 2007 and 2006 based on the Comany's initial co-investment or amortized cost basis was $402 and $211, respectively. (4) The Company provides collateral management services and earns a fee associated with these structures. (5) Other investments include investment structures that are backed by preferred securities. (6) As of December 31, 2007 and 2006, the Company had relationships with six and four VIEs, respectively, where the Company was the primary beneficiary. In addition to the VIEs described above, as of December 31, 2007, the Company held variable interests in four VIEs, where the Company is not the primary beneficiary and as a result, these are not consolidated by the Company. As of December 31, 2007, these VIEs included two collateralized bond obligations and two CLOs which are managed by HIMCO. These investments have been held by the Company for a period of one year. The maximum exposure to loss consisting of the Company's investments based on the amortized cost of the non-consolidated VIEs was approximately $100 as of December 31, 2007 For the year ended December 31, 2007 the Company recognized $1 of the maximum exposure to loss representing an other-than-temporary impairment recorded as a realized capital loss. HIMCO is the collateral manager for four market value CLOs (included in the VIE discussion above) that invest in senior secured bank loans through total return swaps. For two of the CLOs, the Company has determined it is the primary beneficiary and accordingly consolidates the transactions. The maximum exposure to loss for these two consolidated CLOs, which is included in the "Collateral loan obligations and other funds" line in the table above, is $74 of which the Company has recognized a realized capital loss of $19. The Company is not the primary beneficiary for the remaining two CLOs, but maintains a significant involvement in the transactions. The maximum exposure to loss for these remaining two CLOs, included in the $100 in the preceding paragraph, is $14. The CLOs have triggers that allow the total return swap counterparty to terminate the transactions if the fair value of the aggregate referenced bank loan portfolio declines below a stated level. DERIVATIVE INSTRUMENTS The Company utilizes a variety of derivative instruments, including swaps, caps, floors, forwards, futures and options to achieve one of four Company approved objectives: to hedge risk arising from interest rate, equity market, credit spread including issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. F-31 On the date the derivative contract is entered into, the Company designates the derivative as a fair-value hedge, cash-flow hedge, foreign-currency hedge, net investment hedge, or held for other investment and/or risk management purposes. The Company's derivative transactions are used in strategies permitted under the derivatives use plans required by the State of Connecticut and the State of New York insurance departments. Derivative instruments are recorded in the consolidated balance sheets at fair value. Asset and liability values are determined by calculating the net position, taking into account income accruals and cash collateral held, for each derivative counterparty by legal entity and are presented as of December 31, as follows:
ASSET VALUES LIABILITY VALUES 2007 2006 2007 2006 - -------------------------------------------------------------------------------- Other investments $446 $271 $ -- $ -- Reinsurance recoverables 128 -- -- 22 Other policyholder funds and benefits payable 2 172 801 -- Consumer notes -- -- 5 1 Other liabilities -- -- 354 589 ------ ------ -------- ------ TOTAL $576 $443 $1,160 $612 ------ ------ -------- ------
The following table summarizes the derivative instruments used by the Company and the primary hedging strategies to which they relate. Derivatives in the Company's separate accounts are not included because the associated gains and losses accrue directly to policyholders. The notional value of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of credit risk. The fair value amounts of derivative assets and liabilities are presented on a net basis as of December 31, 2007 and 2006. The total ineffectiveness of all cash-flow, fair-value and net investment hedges and total change in value of other derivative-based strategies which do not qualify for hedge accounting treatment, including periodic derivative net coupon settlements, are presented below on an after-tax basis for the years ended December 31, 2007 and 2006. F-32
HEDGE INEFFECTIVENESS, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- CASH-FLOW HEDGES Interest rate swaps Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed maturity securities to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities. Interest rate swaps are also used to hedge a portion of the Company's floating-rate guaranteed investment contracts. These derivatives convert the floating-rate guaranteed investment contract payments to a fixed rate to better match the cash receipts earned from the supporting investment portfolio. $4,019 $4,560 $73 $(19) $1 $(8) Foreign currency swaps Foreign currency swaps are used to convert foreign denominated cash flows associated with certain foreign denominated fixed maturity investments to U.S. dollars. The foreign fixed maturities are primarily denominated in euros and are swapped to minimize cash flow fluctuations due to changes in currency rates. In addition, foreign currency swaps are also used to convert foreign denominated cash flows associated with certain liability payments to U.S. dollars in order to minimize cash flow fluctuations due to changes in currency rates. 1,226 1,420 (269) (318) (1) (4) FAIR-VALUE HEDGES Interest rate swaps Interest rate swaps are used to hedge the changes in fair value of certain fixed rate liabilities and fixed maturity securities due to changes in the benchmark interest rate, LIBOR. 3,594 3,303 (38) 7 -- -- Foreign currency swaps Foreign currency swaps are used to hedge the changes in fair value of certain foreign denominated fixed rate liabilities due to changes in foreign currency rates. 696 492 25 (9) -- -- ----------- --------- ------- ------- ------- --------- TOTAL CASH-FLOW AND FAIR-VALUE HEDGES $9,535 $9,775 $(209) $(339) $ -- $(12) ----------- --------- ------- ------- ------- ---------
F-33
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- OTHER INVESTMENT AND/OR RISK MANAGEMENT ACTIVITIES Interest rate swaps, caps and floors The Company uses interest rate swaps, caps and floors to manage duration risk between assets and liabilities in certain portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value of the original swap. $6,666 $4,911 $ -- $(15) $15 $(27) Interest rate forwards The Company uses interest rate forwards to replicate the purchase of mortgage-backed securities to manage duration risk and liquidity. -- 644 -- (4) (1) 5 Foreign currency swaps and forwards The Company enters into foreign currency swaps and forwards to hedge the foreign currency exposures in certain of its foreign fixed maturity investments. 199 162 (8) (11) (5) (7) Credit default and total return swaps The Company enters into credit default swap agreements in which the Company assumes credit risk of an individual entity, referenced index or asset pool. These contracts entitle the Company to receive a periodic fee in exchange for an obligation to compensate the derivative counterparty should a credit event occur on the part of the referenced security issuers. The maximum potential future exposure to the Company is the notional value of the swap contracts, which is $1,202 and $786, after-tax, as of December 31, 2007 and 2006, respectively. 1,849 1,209 (235) (92) (83) 20 The Company also assumes credit risk through total return and credit index swaps which reference a specific index or collateral portfolio. The maximum potential future exposure to the Company for the credit index swaps is the notional value and for the total return swaps is the cash collateral associated with the transaction, which has termination triggers that limit investment losses. As of December 31, 2007 and 2006, the maximum potential future exposure to the Company from such contracts is $639 and $707, after-tax, respectively. 1,731 1,629 (62) 1 (48) 1
F-34
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- The Company enters into credit default swap agreements, in which the Company reduces credit risk to an individual entity. These contracts require the Company to pay a derivative counterparty a periodic fee in exchange for compensation from the counterparty should a credit event occur on the part of the referenced security issuer. The Company entered into these agreements as an efficient means to reduce credit exposure to specified issuers or sectors. $3,494 $1,882 $56 $(8) $38 $(6) Yen fixed annuity hedging instruments The Company enters into currency rate swaps and forwards to mitigate the foreign currency exchange rate and yen interest rate exposures associated with the yen denominated individual fixed annuity product. The associated liability is adjusted for changes in spot rates which was $(66) and $12, after-tax, as of December 31, 2007 and 2006, respectively, and offsets the derivative. 1,849 1,869 (115) (225) 34 (64) GMWB product derivatives The Company offers certain variable annuity products with a GMWB rider. The GMWB is a bifurcated embedded derivative that provides the policyholder with a GRB if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. The policyholder also has the option, after a specified time period, to reset the GRB to the then-current account value, if greater. The notional value of the embedded derivative is the GRB balance. For a further discussion, see the Derivative Instruments section of Note 2. 44,852 37,769 (707) 53 (430) 79 GMWB reinsurance contracts Reinsurance arrangements are used to offset the Company's exposure to the GMWB embedded derivative for the lives of the host variable annuity contracts. The notional amount of the reinsurance contracts is the GRB amount. 6,579 7,172 128 (22) 83 (19) GMWB hedging instruments The Company enters into derivative contracts to economically hedge exposure to the volatility associated with the portion of the GMWB liabilities which are not reinsured. These derivative contracts include customized swaps, interest rate swaps and futures, and equity swaps, put and call options, and futures, on certain indices including the S&P 500 index, EAFE index, and NASDAQ index. 21,357 8,379 642 346 167 (77)
F-35
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum benefit product reinsurance contracts Reinsurance arrangements are used to offset the Company's exposure to the GMIB and GMAB embedded derivatives for the lives of the host variable annuity contracts. The reinsurance contracts are accounted for as free-standing derivative contracts. The notional amount of the reinsurance contracts is the yen denominated GRB balance value converted at the year-end yen to U.S. dollar foreign spot exchange rate. $18,065 $11,304 $(70) $119 $(101) $(35) Equity index swaps and options The Company offers certain equity indexed products, which may contain an embedded derivative that requires bifurcation. The Company enters into S&P index swaps and options to economically hedge the equity volatility risk associated with these embedded derivatives. In addition, the Company is exposed to bifurcated options embedded in certain fixed maturity investments. 149 25 (22) (1) 1 -- Statutory reserve hedging instruments The Company purchases one and two year S&P 500 put option contracts to economically hedge the statutory reserve impact of equity risk arising primarily from GMDB and GMWB obligations against a decline in the equity markets. 661 2,220 18 29 (14) (9) Coinsurance and modified coinsurance reinsurance contract During 2007, a subsidiary insurance company entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement ("Agreement") with an affiliate reinsurance company to provide statutory surplus relief for certain life insurance policies. The Agreement is accounted for as a financing transaction for GAAP and includes a compound embedded derivative. 655 -- -- -- -- -- TOTAL OTHER INVESTMENT AND/OR RISK MANAGEMENT ACTIVITIES $108,106 $79,175 $(375) $170 $(344) $(139) ----------- --------- ------- ------- ------- --------- TOTAL DERIVATIVES (1) $117,641 $88,950 $(584) $(169) $(344) $(151) ----------- --------- ------- ------- ------- ---------
(1) Derivative change in value includes hedge ineffectiveness for cash-flow and fair-value hedges and total change in value, including periodic derivative net coupon settlements, of derivatives held for other investment and/or risk management activities. The increase in notional amount since December 31, 2006, is primarily due to an increase in embedded derivatives associated with the GMWB rider, an increase in the related GMWB hedging derivatives, and an increase in the guaranteed minimum benefit riders reinsured from a related party. The Company offers certain variable annuity products with a GMWB rider, which is accounted for as an embedded derivative. For further discussion on the GMWB rider, refer to Note 8 of Notes to Consolidated Financial Statements. For further discussion of the internal reinsurance of the guaranteed minimum benefit riders, including GMIB and GMAB products, which are accounted for as free standing derivatives, refer to Note 8 and Note 16 of Notes to Consolidated Financial Statements. F-36 The increase in notional of GMWB embedded derivatives is primarily due to additional product sales. The increase in notional of GMWB hedging derivatives primarily related to two customized swap contracts that were entered into during 2007 to hedge certain risk components for the remaining term of certain blocks of non-reinsured GMWB riders. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company. As of December 31, 2007, these swaps had a notional value of $12.8 billion and a market value of $50. Due to the significance of the non-observable inputs associated with pricing these derivatives, the initial difference between the transaction price and modeled value was deferred in accordance with EITF No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" and included in Other Assets in the Condensed Consolidated Balance Sheets. The deferred loss of $51 will be recognized in retained earnings upon the adoption of SFAS 157. In addition, the change in value of the customized derivatives due to the initial adoption of SFAS 157 of $35 will also be recorded in retained earnings with subsequent changes in fair value recorded in net realized capital gains (losses). The increase in notional of the reinsurance of guaranteed minimum benefit riders is primarily due GMIB product sales as well as depreciation of the U.S. dollar compared to the yen. Also contributing to the increase is a new reinsurance agreement entered into effective September 30, 2007, related to the GMAB rider, which is also accounted for as a free-standing derivative. The decrease in net fair value of derivative instruments since December 31, 2006, was primarily related to GMWB related derivatives, the internal reinsurance contract associated with GMIB, and credit derivatives, partially offset by the Japanese fixed annuity hedging instruments, interest rate derivatives, and foreign currency swaps. The GMWB related derivatives decreased in value primarily due to liability model assumption updates and modeling refinements made during the year, including those for dynamic lapse behavior and correlations of market returns across underlying indices as well as those to reflect newly reliable market inputs for volatility. The internal reinsurance contract associated with GMIB decreased in value primarily as a result of liability model refinements, a decrease in interest rates, and changes in equity volatility levels. Credit derivatives, including credit default swaps, credit index swaps, and bank loan total return swaps, declined in value due to credit spreads widening. Credit spreads widened primarily due to the deterioration in the U.S. housing market, tightened lending conditions, the market's flight to quality securities, as well as increased likelihood of a U.S. recession. The Japanese fixed annuity contract hedging instruments increased in value primarily due to appreciation of the Japanese yen in comparison to the U.S. dollar. Interest rate derivatives increased in value primarily due to the decline in interest rates. The fair value of foreign currency swaps hedging foreign bonds increased primarily as a result of the sale of certain swaps that were in loss positions due to the weakening of the U.S. dollar in comparison to certain foreign currencies. The total change in value for derivative-based strategies that do not qualify for hedge accounting treatment ("non-qualifying strategies"), including periodic derivative net coupon settlements, are reported in net realized capital gains (losses). For the years ended December 31, 2007 and 2006, these non-qualifying strategies resulted in after-tax net losses of $(344) and $(139), respectively. For the year ended December 31, 2007, net losses were primarily comprised of net losses on the GMWB related derivatives, net losses on credit derivatives, and net losses associated with the internal reinsurance of GMIB. The net losses on the GMWB rider embedded derivatives were primarily due to liability model assumption updates and modeling refinements made during the year, including those for dynamic lapse behavior and correlations of market returns across underlying indices, as well as other assumption updates made during the second quarter to reflect newly reliable market inputs for volatility. The net losses on credit derivatives, including credit default swaps, credit index swaps, and total return swaps, were due to credit spreads widening. The net losses associated with the internal reinsurance of GMIB were primarily driven by liability model refinements, a decrease in interest rates, and changes in equity volatility levels. For the year ended December 31, 2006, losses were largely comprised of losses on the reinsurance of GMIB, net losses on GMWB rider and hedging derivatives primarily driven by modeling refinements, net losses on interest rate derivatives due to an increase in interest rates, and net losses on the Japanese fixed annuity hedging instruments primarily due to an increase in Japan interest rates. As of December 31, 2007 and 2006, the after-tax deferred net (losses) on derivative instruments recorded in accumulated other comprehensive income (loss) ("AOCI") that are expected to be reclassified to earnings during the next twelve months are $(16) and $(8), respectively. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to interest income over the term of the investment cash flows. For the year ended December 31, 2007 and 2006, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. For the year ended December 31, 2005, after-tax net gains (losses) representing the total ineffectiveness of all cash-flow hedges was $(6) and fair-value hedges was $2, while there were no net gains (losses) on net investment hedges. F-37 SECURITIES LENDING AND COLLATERAL ARRANGEMENTS The Company participates in securities lending programs to generate additional income, whereby certain domestic fixed income securities are loaned for a specified period of time from the Company's portfolio to qualifying third parties, via two lending agents. Borrowers of these securities provide collateral of 102% of the market value of the loaned securities. Acceptable collateral may be in the form of cash or U.S. Government securities. The market value of the loaned securities is monitored and additional collateral is obtained if the market value of the collateral falls below 100% of the market value of the loaned securities. Under the terms of securities lending programs, the lending agent indemnifies the Company against borrower defaults. As of December 31, 2007 and 2006, the fair value of the loaned securities was approximately $2.1 billion and $1.6 billion, respectively, and was included in fixed maturities, equities, available for sale, and short-term investments in the consolidated balance sheets. The Company earns income from the cash collateral or receives a fee from the borrower. The Company recorded before-tax income from securities lending transactions, net of lending fees, of $6 and $2 for the years ended December 31, 2007 and 2006, respectively, which was included in net investment income. The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2007 and 2006, collateral pledged having a fair value of $355 and $441, respectively, was included in fixed maturities in the consolidated balance sheets. The classification and carrying amount of the loaned securities and the collateral pledged at December 31, 2007 and 2006, were as follows:
2007 2006 - ------------------------------------------------------------ LOANED SECURITIES AND COLLATERAL PLEDGED ABS $4 $3 CMO 21 -- CMBS 244 169 Corporate 1,554 1,339 MBS 221 152 Government/Government Agencies Foreign 14 4 United States 303 327 Short-term 1 -- Preferred stock 53 -- -------- -------- TOTAL $2,415 $1,994 -------- --------
As of December 31, 2007 and 2006, the Company had accepted collateral relating to securities lending programs and collateral arrangements consisting of cash, U.S. Government and U.S. Government agency securities with a fair value of $3.3 billion and $1.8 billion, respectively. At December 31, 2007 and 2006, cash collateral of $3.1 billion and $1.6 billion, respectively, was invested and recorded in the consolidated balance sheets in fixed maturities with a corresponding amount predominately recorded in other liabilities. At December 31, 2007 and 2006, cash received from derivative counterparties of $175 and $109, respectively, was netted against the derivative assets values in accordance with FSP FIN 39-1 and recorded in other assets. For further discussion on the adoption of FSP FIN 39-1, see Note 2. The Company is only permitted by contract to sell or repledge the noncash collateral in the event of a default by the counterparty. The Company incurred no counterparty default for the years ended December 31, 2007 and 2006. As of December 31, 2007 and 2006, noncash collateral accepted was held in separate custodial accounts. SECURITIES ON DEPOSIT WITH STATES The Company is required by law to deposit securities with government agencies in states where it conducts business. As of December 31, 2007 and 2006, the fair value of securities on deposit was approximately $14 and $9, respectively. 4. FAIR VALUE OF FINANCIAL INSTRUMENTS SFAS No. 107 "Disclosure about Fair Value of Financial Instruments", requires disclosure of fair value information of financial instruments. For certain financial instruments where quoted market prices are not available, other independent valuation techniques and assumptions are used. Because considerable judgment is used, these estimates are not necessarily indicative of amounts that could be realized in a current market exchange. SFAS No. 107 excludes certain financial instruments from disclosure, including insurance contracts other than financial guarantees and investment contracts. The Company uses the following methods and assumptions in estimating the fair value of each class of financial instrument. Fair value for fixed maturities and marketable equity securities approximates those quotations published by applicable stock exchanges or received from other reliable sources. For policy loans and short-term investments, carrying amounts approximate fair value. Fair value of other investments, which primarily consist of partnership investments, is based on external market valuations from partnership management. F-38 For mortgage loans on real estate, fair values were estimated using discounted cash flow calculations based on current incremental lending rates for similar type loans. Derivative instruments are reported at fair value based upon either pricing valuation models, which utilize market data inputs and that are obtained from independent third parties or independent broker quotations. Other policyholder funds and benefits payable fair value information is determined by estimating future cash flows, discounted at the current market rate. For further discussion of other policyholder funds and derivatives, see Note 1. Fair value of consumer notes is based on discounted cash flow calculations based on the current market rates. The carrying amount and fair values of the Company's financial instruments as of December 31, 2007 and 2006 were as follows:
2007 2006 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE - ---------------------------------------------------------------------------------------------- ASSETS Fixed maturities $45,611 $45,611 $44,646 $44,646 Equity securities 722 722 276 276 Policy loans 2,016 2,016 2,009 2,009 Mortgage loans on real estate 4,166 4,169 2,631 2,619 Short-term investments 752 752 694 694 Other investments (1) 480 480 273 273 LIABILITIES Other policyholder funds and benefits payable (2) $15,148 $15,097 $13,931 $13,186 Consumer notes 809 814 258 260 --------- ------- -- --
(1) 2007 and 2006 includes $446 and $271 of derivative related assets, respectively. (2) Excludes universal life insurance contracts, including corporate owned life insurance. 5. REINSURANCE The Company cedes insurance to other insurers in order to limit its maximum losses to diversify its exposures and provide surplus relief. Such transfers do not relieve the Company of its primary liability and, as such, failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in several reinsurance pools and associations. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. As of December 31, 2007and 2006, the Company had no reinsurance recoverables and related concentrations of credit risk greater than 10% of the Company's stockholder's equity. In accordance with normal industry practice, the Company is involved in both the cession and assumption of insurance with other insurance and reinsurance companies. As of December 31, 2007, the Company's policy for the largest amount retained on any one life doubled from $5 to $10 compared to the corresponding 2006 and 2005 periods. Insurance fees, earned premiums and other were comprised of the following:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- Gross fee income, earned premiums and other $5,173 $4,360 $4,019 Reinsurance assumed 13 19 39 Reinsurance ceded (694) (719) (798) -------- -------- -------- NET FEE INCOME, EARNED PREMIUMS AND OTHER $4,492 $3,660 $3,260 -------- -------- --------
The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements. Yearly renewable term and coinsurance arrangements result in passing all or a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments. Modified coinsurance is similar to coinsurance except that the cash and investments that support the liabilities for contract benefits are not transferred to the assuming company, and settlements are made on a net basis between the companies. Coinsurance with funds withheld is a form of coinsurance except that the investment assets that support the liabilities are withheld by the ceding company. In addition, the Company reinsures the majority of minimum death benefit guarantees as well as guaranteed minimum withdrawal benefits, on contracts issued prior to July 2003, offered in connection with its variable annuity contracts. F-39 The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. Insurance recoveries on ceded reinsurance contracts, which reduce death and other benefits were $285, $241 and $378 for the years ended December 31, 2007, 2006 and 2005, respectively. The Company also assumes reinsurance from other insurers. The Company maintains certain reinsurance agreements with HLA, whereby the Company cedes both group life and group accident and health risk. Under these treaties, the Company ceded group life premium of $132, $166 and $130 in 2007, 2006 and 2005, respectively, and accident and health premium of $243, $259 and $221, respectively, to HLA. 6. DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS Changes in deferred policy acquisition costs and present value of future profits is as follows:
2007 2006 2005 - -------------------------------------------------------------------------------- BALANCE, JANUARY 1, BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE, PRE-TAX $ 7,334 $ 7,101 $ 6,453 Cumulative effect of accounting change, pre-tax (SOP05-1) (20) -- -- BALANCE, JANUARY 1, AS ADJUSTED 7,314 7,101 6,453 Capitalization 1,400 1,351 1,226 Amortization -- Deferred policy acquisitions costs and present value of future profits (817) (1,033) (945) AMORTIZATION -- UNLOCK, PRE-TAX (1) 302 (142) -- Adjustments to unrealized gains and losses on securities available-for-sale and other 194 57 367 -------- -------- -------- BALANCE, DECEMBER 31 $8,393 $7,334 $7,101 -------- -------- --------
(1) For a discussion of unlock effects, see Unlock Results in Note 1. Estimated future net amortization expense of present value of future profits for the succeeding five years is as follows. For the years ended December 31, - -------------------------------------------------------------------------------- 2008 $27 2009 $27 2010 $25 2011 $23 2012 $22 - --------------------------------------------------------------------------------
7. GOODWILL AND OTHER INTANGIBLE ASSETS As of December 31, 2007 and December 31, 2006, the carrying amount of goodwill for the Company's Retail Products segment was $85 and for the Company's Individual Life segment was $101. The Company's goodwill impairment test performed in accordance with SFAS No. 142 "Goodwill and Other Intangible Assets", resulted in no write-downs for the years ended December 31, 2007 and 2006. For a discussion of present value of future profits that continue to be subject to amortization and aggregate amortization expense, see Note 6. 8. SEPARATE ACCOUNTS, DEATH BENEFITS AND OTHER INSURANCE BENEFIT FEATURES The Company records the variable portion of individual variable annuities, 401(k), institutional, 403(b)/457, private placement life and variable life insurance products within separate account assets and liabilities, which are reported at fair value. Separate account assets are segregated from other investments. Investment income and gains and losses from those separate account assets, which accrue directly to, and whereby investment risk is borne by the policyholder, are offset by the related liability changes within the same line item in the consolidated statements of operations. The fees earned for administrative and contract holder maintenance services performed for these separate accounts are included in fee income. During 2007, 2006 and 2005 there were no gains or losses on transfers of assets from the general account to the separate account. F-40 Many of the variable annuity and universal life ("UL") contracts issued or reinsured by the Company offer various guaranteed minimum death and withdrawal benefits and UL secondary guarantee benefits. UL secondary guarantee benefits ensure that your policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. Guaranteed minimum death benefits are offered in various forms as described in further detail throughout this Note. The Company currently reinsures a significant portion of the death benefit guarantees associated with its in-force block of business. Changes in the gross guaranteed minimum death benefit ("GMDB") and UL secondary guarantee benefits sold with annuity and/or UL products accounted for and collectively known as "SOP 03-1 reserve liabilities" are as follows:
UL SECONDARY GMDB (1) GUARANTEES (1) - -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2007 $ 476 7 Incurred 144 12 Unlock (4) -- Paid (85) -- ------ --- LIABILITY BALANCE AS OF DECEMBER 31, 2007 $531 19 ------ ---
(1) The reinsurance recoverable asset related to the GMDB was $325 as of December 31, 2007. The reinsurance recoverable asset related to the UL Secondary Guarantees was $10 as of December 31, 2007.
UL SECONDARY GMDB (1) GUARANTEES (1) - -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2006 $ 158 5 Incurred 130 2 Unlock 294 -- Paid (106) -- ------ --- LIABILITY BALANCE AS OF DECEMBER 31, 2006 $476 7 ------ ---
(1) The reinsurance recoverable asset related to the GMDB was $316 as of December 31, 2006. The reinsurance recoverable asset related to the UL Secondary Guarantees was $6 as of December 31, 2006. The net SOP 03-1 reserve liabilities are established by estimating the expected value of net reinsurance costs and death benefits in excess of the projected account balance. The excess death benefits and net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. The SOP 03-1 reserve liabilities are recorded in Future Policy Benefits on the Company's balance sheet. Changes in the SOP 03-1 liabilities are recorded in benefits, losses and loss adjustment expenses in the Company's statement of income. In a manner consistent with the Company's accounting policy for deferred acquisition costs, the Company regularly evaluates estimates used and adjusts the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. As described within the Unlock Results in Note 1, the Company unlocked its assumptions related to its SOP 03-1 reserves during the third quarter of 2007 and the fourth quarter of 2006. The determination of the SOP 03-1 reserve liabilities and their related reinsurance recoverables, are based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following assumptions were used as of December 31, 2007: GMDB: - - 1000 stochastically generated investment performance scenarios for all issue years - - For all issue years, the weighted average return is 8% after fund fees, but before mortality and expense charges; it varies by asset class with a low of 3% for cash and a high of 11% for aggressive equities. - - Discount rate of 7.5% for issue year 2002 & prior; discount rate of 7% for issue year 2003 & 2004 and discount rate of 5.6% for issue year 2005 -- 2007. - - Volatilities also vary by asset class with a low of 1% for cash, a high of 15% for aggressive equities, and a weighted average of 12%. - - 100% of the Hartford experience mortality table was used for the mortality assumptions - - Lapse rates by calendar year vary from a low of 8% to a high of 13%, with an average of 11% UL SECONDARY GUARANTEES: - - Discount rate of 4.75% for issue year 2004, discount rate of 4.50% for issue year 2005 & 2006, and discount rate of 4.25% for issue year 2007. - - 100% of the Hartford pricing mortality table for mortality assumptions. F-41 - - Lapse rates for single life policies average 3% in policy years 1-10, declining to 0% by age 95. Lapse rate for last survivor policies is 0.4%. The following table provides details concerning GMDB exposure: BREAKDOWN OF VARIABLE ANNUITY ACCOUNT VALUE BY GMDB TYPE AT DECEMBER 31, 2007
RETAINED WEIGHTED AVERAGE ACCOUNT NET AMOUNT NET AMOUNT ATTAINED AGE OF VALUE AT RISK AT RISK ANNUITANT - --------------------------------------------------------------------------------------------------------------------------------- Maximum anniversary value (MAV) (1) MAV only $47,463 $3,557 $419 65 With 5% rollup (2) 3,360 285 67 64 With Earnings Protection Benefit Rider (EPB) (3) 5,463 530 85 62 With 5% rollup & EPB 1,333 155 30 64 Total MAV 57,619 4,527 601 Asset Protection Benefit (APB) (4) 42,489 446 242 62 Lifetime Income Benefit (LIB) (5) 10,273 25 25 62 Reset (6) (5-7 years) 6,132 80 80 66 Return of Premium (7)/Other 10,321 28 28 54 ----------- -------- ------ --- TOTAL $126,834 $5,106 $976 63 ----------- -------- ------ ---
(1) MAV: the death benefit is the greatest of current account value, net premiums paid and the highest account value on any anniversary before age 80 (adjusted for withdrawals). (2) Rollup: the death benefit is the greatest of the MAV, current account value, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 or 100% of adjusted premiums. (3) EPB: the death benefit is the greatest of the MAV, current account value, or contract value plus a percentage of the contract's growth. The contract's growth is account value less premiums net of withdrawals, subject to a cap of 200% of premiums net of withdrawals. (4) APB: the death benefit is the greater of current account value or MAV, not to exceed current account value plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). (5) LIB: the death benefit is the greatest of current account value or MAV, net premiums paid, or a benefit amount that ratchets over time, generally based on market performance. (6) Reset: the death benefit is the greatest of current account value, net premiums paid and the most recent five to seven year anniversary account value before age 80 (adjusted for withdrawals). (7) Return of premium: the death benefit is the greater of current account value and net premiums paid. The Company offers certain variable annuity products with a GMWB rider. The GMWB provides the policyholder with a guaranteed remaining balance ("GRB") if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. However, annual withdrawals that exceed a specific percentage of the premiums paid may reduce the GRB by an amount greater than the withdrawals and may also impact the guaranteed annual withdrawal amount that subsequently applies after the excess annual withdrawals occur. For certain of the withdrawal benefit features, the policyholder also has the option, after a specified time period, to reset the GRB to the then-current account value, if greater. In addition, the Company has introduced features, for contracts issued beginning in the fourth quarter of 2005, that allow policyholders to receive the guaranteed annual withdrawal amount for as long as they are alive. Through this feature, the policyholder or their beneficiary will receive the GRB and the GRB is reset on an annual basis to the maximum anniversary account value subject to a cap. The GMWB represents an embedded derivative in the variable annuity contracts that is required to be reported separately from the host variable annuity contract. The GMIB and GMAB reinsurance represent free-standing derivatives and are carried at fair value and reported in other policyholder funds. See Note 16 for additional disclosure concerning reinsurance agreements. The fair value of the GMWB obligation, as well as the GMIB and GMAB obligations, assumed from a related party are calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. Because of the dynamic and complex nature of these cash flows, best estimate assumptions and stochastic techniques under a variety of market return scenarios are used. Estimating these cash flows involves numerous estimates including those regarding expected market rates of return, market volatility, correlations of market returns and discount rates. At each valuation date, the Company assumes expected returns based on risk-free rates as represented by the current LIBOR forward curve rates; market volatility assumptions for each underlying index based primarily on a blend of observed market F-42 "implied volatility"; correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; and current risk-free spot rates as represented by the current LIBOR spot curve to determine the present value of expected future cash flows produced in the stochastic projection process. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions. In addition, management regularly evaluates the valuation model, incorporating emerging valuation techniques where appropriate, including drawing on the expertise of market participants and valuation experts. During, the second quarter of 2007, the Company reflected newly reliable market inputs for volatility on Standard and Poor's ("S&P") 500, National Association of Securities Dealers Automated Quotations ("NASDAQ") and Europe, Australasia and Far East ("EAFE") index options. As of December 31, 2007 and December 31, 2006, the embedded derivative (liability) asset recorded for GMWB, before reinsurance or hedging, was $(707) and $53, respectively. During 2007, 2006 and 2005 the change in value of the GMWB, before reinsurance and hedging, reported in realized gains (losses) was $(661), $121and ($64), respectively. Included in the realized gain (loss) for the years ended December 31, 2007 and 2006 were liability model refinements, changes in policyholder behavior assumptions and changes in other assumptions to reflect newly reliable market inputs for volatility of a net $(234) and $(2), respectively. As of December 31, 2007 and 2006, $46.3 billion, or 82%, and $37.3 billion, or 77%, respectively, of account value representing substantially all of the contracts written after July 2003 with the GMWB feature, were unreinsured. In order to minimize the volatility associated with the unreinsured GMWB liabilities, the Company has established a risk management strategy. During the second and third quarter of 2007, as part of the Company's risk management strategy, the Company purchased two customized swap contracts which hedge certain capital market risk components for the remaining term of certain blocks of the non-reinsured GMWB riders. As of December 31, 2007, these swaps had a notional value of $12.8 billion. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company. The Company also uses other derivative instruments to hedge its unreinsured GMWB exposure including interest rate futures, S&P 500 and NASDAQ index options and futures contracts and EAFE Index swaps to hedge GMWB exposure to international equity markets. The total (reinsured and unreinsured) GRB as of December 31, 2007 and 2006 was $44.8 billion and $37.8 billion, respectively. A contract is 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money' the Company's exposure, after reinsurance, as of December 31, 2007 and 2006, was $139 and $8, respectively. However, the only ways the contract holder can monetize the excess of the GRB over the account value of the contract is upon death or if their account value is reduced to zero through a combination of a series of withdrawals that do not exceed a specific percentage of the premiums paid per year and market declines. If the account value is reduced to zero, the contract holder will receive a period certain annuity equal to the remaining GRB. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis, the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more or less than $139. Account balances of contracts with guarantees were invested in variable separate accounts as follows:
AS OF AS OF DECEMBER 31, DECEMBER 31, 2007 2006 - -------------------------------------------------------------------------------- ASSET TYPE Equity securities $109,354 $104,687 Cash and cash equivalents 9,975 8,931 ----------- ----------- TOTAL $119,329 $113,618 ----------- -----------
As of December 31, 2007, approximately 12% of the equity securities above were invested in fixed income securities through these funds and approximately 88% were invested in equity securities. 9. SALES INDUCEMENTS The Company currently offers enhanced crediting rates or bonus payments to contract holders on certain of its individual and group annuity products. The expense associated with offering a bonus is deferred and amortized over the life of the related contract in a pattern consistent with the amortization of deferred policy acquisition costs. Amortization expense associated with expenses previously deferred is recorded over the remaining life of the contract. Consistent with the Company's unlock, the Company unlocked the amortization of the sales inducement asset. See Note 1, for more information concerning the unlock. F-43 Changes in deferred sales inducement activity were as follows for the years ended December 31,:
2007 2006 - -------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $397 $359 Cumulative effect of accounting change, pre-tax (SOP 05-1) (1) -- BALANCE, JANUARY 1, AS ADJUSTED 396 359 Sales inducements deferred 97 84 Unlock (15) 4 Amortization charged to income (33) (50) ------ ------ BALANCE, END OF PERIOD $445 $397 ------ ------
10. COMMITMENTS AND CONTINGENCIES LITIGATION The Company is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Company accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company. The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper sales practices in connection with the sale of life insurance and other investment products; and improper fee arrangements in connection with mutual funds and structured settlements. The Company also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's consolidated results of operations or cash flows in particular quarterly or annual periods. BROKER COMPENSATION LITIGATION -- Following the New York Attorney General's filing of a civil complaint against Marsh & McLennan Companies, Inc., and Marsh, Inc. (collectively, "Marsh") in October 2004 alleging that certain insurance companies, including The Hartford, participated with Marsh in arrangements to submit inflated bids for business insurance and paid contingent commissions to ensure that Marsh would direct business to them, private plaintiffs brought several lawsuits against The Hartford predicated on the allegations in the Marsh complaint, to which The Hartford was not party. Among these is a multidistrict litigation in the United States District Court for the District of New Jersey. There are two consolidated amended complaints filed in the multidistrict litigation, one related to conduct in connection with the sale of property-casualty insurance and the other related to alleged conduct in connection with the sale of group benefits products. The Company is named in the group benefits products complaint. The complaints assert, on behalf of a putative class of persons who purchased insurance through broker defendants, claims under the Sherman Act, the Racketeer Influenced and Corrupt Organizations Act ("RICO"), state law, and in the case of the group benefits products complaint, claims under ERISA. The claims are predicated upon allegedly undisclosed or otherwise improper payments of contingent commissions to the broker defendants to steer business to the insurance company defendants. . The district court has dismissed the Sherman Act and RICO claims in both complaints for failure to state a claim and has granted the defendants' motions for summary judgment on the ERISA claims in the group-benefits products complaint . The district court further has declined to exercise supplemental jurisdiction over the state law claims, has dismissed those state law claims without prejudice, and has closed both cases. The plaintiffs have appealed the dismissal of the Sherman Act, RICO and ERISA claims. REGULATORY DEVELOPMENTS On July 23, 2007, The Hartford entered into an agreement (the "Agreement") with the New York Attorney General's Office, the Connecticut Attorney General's Office, and the Illinois Attorney General's Office to resolve (i) the previously disclosed investigations by these Attorneys General regarding, among other things, The Hartford's compensation agreements with brokers, alleged participation in arrangements to submit inflated bids, sale of fixed and individual annuities used to fund structured settlements, and marketing and sale of individual and group variable annuity products and (ii) the previously disclosed investigation by the New York Attorney General's Office of aspects of The Hartford's variable annuity and mutual fund operations related to market timing. In light of the Agreement, the Staff of the Securities and Exchange Commission has informed The Hartford that it has determined to conclude its previously disclosed investigation into market timing without taking any action. Under the terms of the Agreement, The Hartford paid $115, of which $84 represents restitution for market timing, $5 represents restitution for issues relating to the compensation of brokers, and $26 is a civil penalty. F-44 Hartford Life recorded charges of $54, after-tax, in the aggregate, none of which was attributed to the Company, through the first quarter of 2007 to establish a reserve for the market timing matters and, based on the settlement discussed above, Hartford Life recorded an additional charge of $21, after-tax, in the second quarter of 2007. In the second quarter of 2007, $75, after-tax, representing all of the charges that had been recorded at Hartford Life, was attributed to and recorded at the Company. LEASES The rent paid to Hartford Fire for operating leases entered into by the Company was $27, $35 and $35 for the years ended December 31, 2007, 2006 and 2005, respectively. Included in Hartford Fire's operating leases are the principal executive offices of Hartford Life Insurance Company, together with its parent, which are located in Simsbury, Connecticut. Rental expense for the facility located in Simsbury, Connecticut, which expires on December 31, 2007, as this operating lease will be replaced by a capital lease between its parent Company HLA and Hartford Fire Insurance Company, amounted to approximately $6, $27 and $27 for the years ended December 31, 2007, 2006 and 2005, respectively. Future minimum rental commitments on all operating leases are as follows: 2008 $17 2009 11 2010 8 2011 5 2012 2 Thereafter 2 ---- TOTAL $ 45 ----
TAX MATTERS The Company's federal income tax returns are routinely audited by the Internal Revenue Service ("IRS"). The IRS began its audit of the 2002-2003 tax years in 2005 and the Company expects the audit to be concluded in early 2008. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax- related matters for all open tax years. The separate account dividends received deduction ("DRD") is estimated for the current year using information from the prior year-end, adjusted for current year equity market performance. The estimated DRD is generally updated in the third quarter for the provision-to-filed-return adjustments, and in the fourth quarter based on current year ultimate mutual fund distributions and fee income from the Company's variable insurance products. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received by the mutual funds, amounts of distributions from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company's taxable income before the DRD. The Company recorded benefits of $155, $174 and $184 related to the separate account DRD in the year ended December 31, 2007, December 31, 2006 and December 31, 2005, respectively. The 2007 benefit included a tax of $1 related to a true-up of the prior year tax return, the 2006 benefit included a benefit of $6 related to true-ups of prior years' tax returns and the 2005 benefit included a benefit of $3 related to a true-up of the prior year tax return In Revenue Ruling 2007-61, issued on September 25, 2007, the IRS announced its intention to issue regulations with respect to certain computational aspects of the DRD on separate account assets held in connection with variable annuity contracts. Revenue Ruling 2007-61 suspended Revenue Ruling 2007-54, issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown, but they could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives. Management believes that it is highly likely that any such regulations would apply prospectively only. The Company receives a foreign tax credit ("FTC") against its U.S. tax liability for foreign taxes paid by the Company including payments from its separate account assets. The separate account FTC is estimated for the current year using information from the most recent filed return, adjusted for the change in the allocation of separate account investments to the international equity markets during the current year. The actual current year FTC can vary from the estimates due to actual FTCs passed through by the mutual funds. The Company recorded benefits of $11 and $17 related to separate account FTC in the year ended December 31, 2007 and December 31, 2006, respectively. These amounts included benefits related to true-ups of prior years' tax returns of $0 and $7 in 2007 and 2006, respectively. UNFUNDED COMMITMENTS At December 31, 2007, the Company has outstanding commitments totaling $888, of which $616 is committed to fund limited partnership investments. These capital commitments can be called by the partnership during the commitment period (on average two to five years) to fund the purchase of new investments and partnership expenses. Once the commitment F-45 period expires, the Company is under no obligation to fund the remaining unfunded commitment but may elect to do so. The remaining outstanding commitments are primarily related to various funding obligations associated with investments in mortgage and construction loans. These have a commitment period of one month to three years. GUARANTY FUND AND OTHER INSURANCE-RELATED ASSESSMENTS In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state's fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state. The Company accounts for guaranty fund and other insurance assessments in accordance with Statement of Position No. 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments". Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2007 and 2006, the liability balance was $4 and $4, respectively. As of December 31, 2007 and 2006, $12 and $13, respectively, related to premium tax offsets were included in other assets. 11. INCOME TAX The Company is included in The Hartford's consolidated Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, generally will be determined as though the Company were filing a separate Federal income tax return with current credit for net losses to the extent the losses provide a benefit in the consolidated return. Income tax expense (benefit) is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- Current $106 $115 $71 Deferred 62 (12) 136 ------ ------ ------ INCOME TAX EXPENSE $168 $103 $207 ------ ------ ------
A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- Tax provision at the U.S. federal statutory rate $318 $292 $391 Dividends received deduction (155) (174) (184) Penalties 7 -- 1 Foreign related investments (11) (10) (2) Other 9 (5) 1 ------ ------ ------ TOTAL $168 $103 $207 ------ ------ ------
F-46 Deferred tax assets (liabilities) include the following as of December 31:
2007 2006 - -------------------------------------------------------------------------------- DEFERRED TAX ASSETS Tax basis deferred policy acquisition costs $682 $568 Unrealized Loss on Investments 294 -- Other Investment-related items 455 179 Minimum tax credit 239 217 Foreign tax credit carryovers -- 7 Other 17 -- --------- --------- TOTAL DEFERRED TAX ASSETS 1,687 971 DEFERRED TAX LIABILITIES Financial statement deferred policy acquisition costs and reserves (1,775) (1,252) Net unrealized gains on equity securities -- (169) Employee benefits (36) (39) Other -- (2) --------- --------- TOTAL DEFERRED TAX LIABILITIES (1,811) (1,462) --------- --------- TOTAL DEFERRED TAX LIABILITY $(124) $(491) --------- ---------
The Company had current federal income tax (payable) receivable of $62 and $(78) as of December 31, 2007 and 2006, respectively. In management's judgment, the gross deferred tax asset will more likely than not be realized through reductions of future taxes. Accordingly, no valuation allowance has been recorded. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2002. During 2005, the Internal Revenue Service ("IRS") commenced an examination of the Company's U.S. income tax returns for 2002 through 2003 that is anticipated to be completed in early 2008. The 2004 through 2006 examination will begin in 2008. The Company anticipates that it is reasonably possible that the Internal Revenue Service will issue the 2002-2003 Revenue Agent's Report within 12 months. The Company does not anticipate that the outcome of the audit will result in a material change to its financial position. The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the adoption, the Company recognized an $11 decrease in the liability for unrecognized tax benefits and a corresponding increase in the January 1, 2007 balance of retained earnings. The Company had no balance of unrecognized tax benefits as of January 1, 2007 or December 31, 2007. The Company classifies interest and penalties (if applicable) as income tax expense in the financial statements. 12. DEBT CONSUMER NOTES On September 8, 2006, Hartford Life Insurance Company filed a shelf registration statement with the SEC (Registration Statement No. 333-137215), effective immediately, for the offering and sale of Hartford Life Income Notes SM and Hartford Life medium-term notes (collectively called "Consumer Notes"). There are no limitations on the ability to issue additional indebtedness in the form of Hartford Life Income Notes SM and Hartford Life medium-term notes. Institutional Solutions Group began issuing Consumer Notes through its Retail Investor Notes Program in September 2006. A Consumer Note is an investment product distributed through broker-dealers directly to retail investors as medium-term, publicly traded fixed or floating rate, or a combination of fixed and floating rate, notes. In addition, discount notes, amortizing notes and indexed notes may also be offered and issued. Consumer Notes are part of the Company's spread-based business and proceeds are used to purchase investment products, primarily fixed rate bonds. Proceeds are not used for general operating purposes. Consumer Notes are offered weekly with maturities up to 30 years and varying interest rates and may include a call provision. Certain Consumer Notes may be redeemed by the holder in the event of death. Redemptions are subject to certain limitations, including calendar year aggregate and individual limits equal to the greater of $1 or 1% of the aggregate principal amount of the notes and $250 thousand per individual, respectively. Derivative instruments will be utilized to hedge the Company's exposure to interest rate risk in accordance with Company policy. As of December 31, 2007 and 2006, $809 and $258 of consumer notes had been issued. As of December 31, 2007, these consumer notes have interest rates ranging from 4.75% to 6.25% for fixed notes and, for variable notes, either consumer price index plus 157 to 267 basis points, or indexed to the S&P 500, Dow Jones Industrials or the Nikkei 225. The aggregate maturities of consumer notes are as follows: $222 in 2008, $494 in 2009, $34 in 2010, $19 in 2011 and $40 thereafter. For the year ended December 31, 2007 and 2006, interest credited to holders of consumer notes was $11 and $2, respectively. F-47 13. STATUTORY RESULTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 - -------------------------------------------------------------------------------- Statutory net income $255 $777 $393 ------- ------- ------- Statutory capital and surplus $4,448 $3,276 $3,022 ------- ------- -------
A significant percentage of the consolidated statutory surplus is permanently reinvested or is subject to various state regulatory restrictions which limit the payment of dividends without prior approval. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. Under these laws, the insurance subsidiaries may only make their dividend payments out of unassigned surplus. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer's policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer's earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which The Hartford's insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances somewhat more restrictive) limitations on the payment of dividends. As of December 31, 2007, the maximum amount of statutory dividends which may be paid by the Company in 2008, without prior approval, is $445. The domestic insurance subsidiaries of the Company prepare their statutory financial statements in accordance with accounting practices prescribed by the applicable insurance department. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners ("NAIC"), as well as state laws, regulations and general administrative rules. 14. PENSION PLANS, POSTRETIREMENT, HEALTH CARE AND LIFE INSURANCE BENEFIT AND SAVINGS PLANS PENSION PLANS Hartford Life's employees are included in The Hartford's non-contributory defined benefit pension and postretirement health care and life insurance benefit plans. Defined benefit pension expense, postretirement health care and life insurance benefits expense allocated by The Hartford to the Company, was $22, $22 and $21 for the years ended December 31, 2007, 2006 and 2005, respectively. INVESTMENT AND SAVINGS PLAN Substantially all U.S. employees are eligible to participate in The Hartford's Investment and Savings Plan under which designated contributions may be invested in common stock of The Hartford or certain other investments. These contributions are matched, up to 3% of compensation, by the Company. In 2004, the Company began allocating a percentage of base salary to the Plan for eligible employees. In 2007, employees who had salaries of less than $100,000 per year received a contribution of 1.5% of base salary and employees who had salaries of $100,000 or more per year received a contribution of 0.5% of base salary. The cost to Hartford Life for this plan was approximately $11, $9 and $8 for the years ended December 31, 2007, 2006 and 2005, respectively. 15. STOCK COMPENSATION PLANS Hartford Life's employees are included in The Hartford 2005 Incentive Stock Plan and The Hartford Employee Stock Purchase Plan. The Hartford has two primary stock-based compensation plans which are described below. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by The Hartford in treasury or from shares purchased in the open market. The Hartford typically issues new shares in satisfaction of stock-based compensation. Hartford Life was allocated compensation expense of $21 million, $19 million and $15 million for the years ended December 31, 2007, 2006 and 2005, respectively. Hartford Life's income tax benefit recognized for stock-based compensation plans was $7 million, $6 million and $5 million for the years ended December 31, 2007, 2006 and 2005, respectively. Hartford Life did not capitalize any cost of stock-based compensation. STOCK PLAN In 2005, the shareholders of The Hartford approved The Hartford 2005 Incentive Stock Plan (the "2005 Stock Plan"), which superseded and replaced The Hartford Incentive Stock Plan and The Hartford Restricted Stock Plan for Non-employee Directors. The terms of the 2005 Stock Plan are substantially similar to the terms of these superseded plans. F-48 The 2005 Stock Plan provides for awards to be granted in the form of non-qualified or incentive stock options qualifying under Section 422 of the Internal Revenue Code, stock appreciation rights, restricted stock units, restricted stock, performance shares, or any combination of the foregoing. The fair values of awards granted under the 2005 Stock Plan are measured as of the grant date and expensed ratably over the awards' vesting periods, generally three years. For stock option awards granted or modified in 2006 and later, the Company began expensing awards to retirement-eligible employees hired before January 1, 2002 immediately or over a period shorter than the stated vesting period because the employees receive accelerated vesting upon retirement and therefore the vesting period is considered non-substantive. If, prior to the adoption of SFAS 123(R), the Company had been expensing stock option awards to retirement-eligible employees over the shorter of the stated vesting period or the date of retirement eligibility, then the Company would have recognized an immaterial increase in net income for the year ended December 31, 2005 and an immaterial decrease in net income for the year ended December 31, 2004. All awards provide for accelerated vesting upon a change in control of The Hartford as defined in the 2005 Stock Plan. STOCK OPTION AWARDS Under the 2005 Stock Plan, all options granted have an exercise price equal to the market price of The Hartford's common stock on the date of grant, and an option's maximum term is ten years. Certain options become exercisable over a three year period commencing one year from the date of grant, while certain other options become exercisable at the later of the three years from the date of grant or upon the attainment of specified market appreciation of The Hartford's common shares. For any year, no individual employee may receive an award of options for more than 1,000,000 shares. As of December 31, 2007, The Hartford had not issued any incentive stock options under any plans. For all options granted or modified on or after January 1, 2004, The Hartford uses a hybrid lattice/Monte-Carlo based option valuation model (the "valuation model") that incorporates the possibility of early exercise of options into the valuation. The valuation model also incorporates The Hartford's historical termination and exercise experience to determine the option value. For these reasons, the Hartford believes the valuation model provides a fair value that is more representative of actual experience than the value calculated under the Black-Scholes model. SHARE AWARDS Share awards are valued equal to the market price of The Hartford's common stock on the date of grant, less a discount for those awards that do not provide for dividends during the vesting period. Share awards granted under the 2005 Plan and outstanding include restricted stock units, restricted stock and performance shares. Generally, restricted stock units vest after three years and restricted stock vests in three to five years. Performance shares become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved over a specified period, generally three years. The maximum award of restricted stock units, restricted stock or performance shares for any individual employee in any year is 200,000 shares or units. EMPLOYEE STOCK PURCHASE PLAN In 1996, The Hartford established The Hartford Employee Stock Purchase Plan ("ESPP"). Under this plan, eligible employees of The Hartford may purchase common stock of The Hartford at a 15% discount from the lower of the closing market price at the beginning or end of the quarterly offering period. Employees purchase a variable number of shares of stock through payroll deductions elected as of the beginning of the quarter. The fair value is estimated based on the 15% discount off of the beginning stock price plus the value of three-month European call and put options on shares of stock at the beginning stock price calculated using the Black-Scholes model. 16. TRANSACTIONS WITH AFFILIATES Transactions of the Company with Hartford Fire Insurance Company, Hartford Holdings and its affiliates relate principally to tax settlements, reinsurance, insurance coverage, rental and service fees, payment of dividends and capital contributions. In addition, an affiliated entity purchased group annuity contracts from the Company to fund structured settlement periodic payment obligations assumed by the affiliated entity as part of claims settlements with property casualty insurance companies and self-insured entities. As of December 31, 2007 and 2006 the Company had $4.8 billion and $3.8 billion of reserves for claim annuities purchased by affiliated entities. For the year ended December 31, 2007, 2006 and 2005, the Company recorded earned premiums of $525, $296 and $339 for these intercompany claim annuities. Substantially all general insurance expenses related to the Company, including rent and employee benefit plan expenses are initially paid by The Hartford. Direct expenses are allocated to the Company using specific identification, and indirect expenses are allocated using other applicable methods. Indirect expenses include those for corporate areas which, depending on type, are allocated based on either a percentage of direct expenses or on utilization. Hartford Life sells fixed market value adjusted ("MVA") annuity products to customers in Japan. The yen based MVA product is written by HLIKK, a wholly owned Japanese subsidiary of Hartford Life and subsequently reinsured to the Company. As of F-49 December 31, 2007 and 2006, $1.8 billion and $1.7 billion, respectively, of the account value had been assumed by the Company. Effective August 31, 2005, a subsidiary of the Company, Hartford Life and Annuity Insurance Company ("HLAI"), entered into a reinsurance agreement with Hartford Life, Insurance KK ("HLIKK"), a wholly owned Japanese subsidiary of Hartford Life, Inc. ("Hartford Life"). Through this agreement, HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMIB riders issued by HLIKK on its variable annuity business. Effective July 31, 2006, the agreement was modified to include the GMDB on covered contracts that have an associated GMIB rider. The modified reinsurance agreement applies to all contracts, GMIB riders and GMDB riders in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB riders issued prior to April 1, 2005, which were recaptured. Additionally, a tiered reinsurance premium structure was implemented. On the date of recapture, HLAI forgave the reinsurance derivative asset of $110 and paid HLIKK $38. The net result of the recapture was recorded as a dividend of $93, after-tax. GMIB riders issued by HLIKK subsequent to April 1, 2005 continue to be reinsured by HLAI. While the form of the agreement between HLAI and HLIKK for GMIB business is reinsurance, in substance and for accounting purposes the agreement is a free standing derivative. As such, the reinsurance agreement for GMIB business is recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income. Effective September 30, 2007, HLAI entered into another reinsurance agreement where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMAB, GMIB and GMDB riders issued by HLIKK on certain of its variable annuity business. The reinsurance of the GMAB riders is accounted for as a free-standing derivative in accordance with SFAS 133. Accordingly, the reinsurance of the GMAB is recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income. The fair value of the GMAB is an asset of $2 at December 31, 2007. The initial fair value of the derivative associated with new business will be recorded as an in substance capital contribution or distribution between these related parties. As of December 31, 2007 and 2006, the fair value of the GMIB reinsurance derivative was an asset (liability) of $(72) and $119, respectively. During the year ended December 31, 2007 the Company recorded a net capital contribution (dividend) of $17 and a pre-tax realized loss of $156, representing the change in fair value of the GMIB reinsurance derivative. During the year ended December 31, 2006, the Company recorded a net capital contribution of $74 (including the net result of the recapture) and a pre-tax realized loss of $53, representing the change in fair value of the reinsurance derivative. (Included in the 2006 pre-tax loss amounts was a net $60 of losses related to changes in policyholder behavior assumptions and modeling refinements made by the Company during the year ended December 31, 2006.) The methodology for calculating the value of the reinsurance derivative's for GMIB and GMAB are consistent with the methodology used by the Company in valuing the guaranteed minimum withdrawal benefit rider sold with U.S. variable annuities. The calculation uses risk neutral Japanese capital market assumptions and includes estimates for dynamic policyholder behavior. The resulting reinsurance derivative value in Japanese yen is converted to U.S. dollars at the spot rate. Should actual policyholder behavior or capital markets experience emerge differently from these estimates, the resulting impact on the value of the reinsurance derivative could be material to the results of operations. The contracts underlying the GMIB and GMAB reinsurance contracts are 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money' the Company's exposure related to GMIB and GMAB, as of December 31, 2007 and 2006, was $130 and $0, respectively. However, for GMIB's, the only way the contract holder can monetize the excess of the GRB over the account value of the contract is upon annuitization and the amount to be paid by the Company will either be in the form of a lump sum, or over the annuity period for certain GMIB's or over the annuity period only for other GMIB's. For GMAB's the only way that contract holder can monetize the excess of the GRB over the account value of the contract is through a lump sum payment after a ten year waiting period. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis, the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more than $130. The Reinsurance Agreement for GMDB business is accounted for under SOP 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" ("SOP 03-1"). As of December 31, 2007 the liability for the assumed reinsurance of the GMDB and the net amount at risk was $4 and $380, respectively. As of December 31, 2006 the liability for the assumed reinsurance of the GMDB and the net amount at risk was immaterial. The Company has issued a guarantee to retirees and vested terminated employees ("Retirees") of The Hartford Retirement Plan for U.S. Employees ("the Plan") who retired or terminated prior to January 1, 2004. The Plan is sponsored by The Hartford. The guarantee is an irrevocable commitment to pay all accrued benefits which the Retiree or the Retiree's designated beneficiary is entitled to receive under the Plan in the event the Plan assets are insufficient to fund those benefits and The Hartford is unable to provide sufficient assets to fund those benefits. The Company believes that the likelihood that payments will be required under this guarantee is remote. F-50 Effective November 1, 2007, a subsidiary insurance company ("Ceding Company") entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement ("Agreement") with an affiliate reinsurance company ("Reinsurer") to provide statutory surplus relief for certain life insurance policies. The Agreement is accounted for as a financing transaction for GAAP. A standby unaffiliated third party Letter of Credit ("LOC") supports a portion of the statutory reserves that have been ceded to the Reinsurer. 17. QUARTERLY RESULTS FOR 2007 AND 2006 (UNAUDITED)
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2007 2006 2007 2006 2007 2006 2007 2006 - --------------------------------------------------------------------------------------------------------------------------------- Revenues $1,692 $1,623 $1,660 $1,272 $1,751 $1,523 $1,503 $1,671 Benefits, claims and expenses 1,360 1,286 1,551 1,198 1,337 1,259 1,450 1,512 Net income 262 259 110 93 290 231 78 148 ------- ------- ------- ------- ------- ------- ------- -------
F-51
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