485BPOS 1 combo2016diraccess1hla33.htm 485BPOS 2016 Director Access 1 HLA 333-45303 Combined Document


As filed with the Securities and Exchange Commission on April 21, 2016
File No. 333-45303
811-07426

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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FORM N-4
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
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PRE-EFFECTIVE AMENDMENT NO.
/ /
POST-EFFECTIVE AMENDMENT NO. 27
/X/

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 448
/X/

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE

(Exact Name of Registrant)

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY

(Name of Depositor)

P.O. BOX 2999
HARTFORD, CT 06104-2999

(Address of Depositor's Principal Offices)

(860) 547-4390

(Depositor's Telephone Number, Including Area Code)

LISA PROCH
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CT 06104-2999

(Name and Address of Agent for Service)
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APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT.
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It is proposed that this filing will become effective:
/ /
immediately upon filing pursuant to paragraph (b) of Rule 485
/X/
on May 2, 2016 pursuant to paragraph (b) of Rule 485
/ /
60 days after filing pursuant to paragraph (a)(1) of Rule 485
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on pursuant to paragraph (a)(1) of Rule 485
/ /
this post-effective amendment designates a new effective date for a previously filed post-effective amendment





PART A




 

DIRECTOR ACCESS*
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE (EST. 5/20/91)
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT TWO (EST. 6/2/86)
PO BOX 14293
LEXINGTON, KY 40512-4293
1-800-862-6668 (CONTRACT OWNERS)
1-800-862-7155 (INVESTMENT PROFESSIONALS)
www.thehartford.com/annuities
 
 
 
 
 
 
*This product was previously sold under various marketing names depending on which distribution partner sold the product and/or when the product was sold. These marketing names include: Series I/IR of Director Access and Director Choice Access.
The variable annuity products described in this prospectus are no longer for sale. In 2013, We announced that The Hartford would no longer be selling or issuing annuity products and part of the company’s long-term strategy is to reduce the liabilities associated with in-force annuity contracts. However, we continue to administer the in force annuity contracts. You should read the terms of your annuity contract, including any riders, as your contract contains the specific terms of the benefits, limitations, restrictions, costs and obligations regarding your annuity.
This variable annuity prospectus describes a contract between each Owner and joint Owner (“you”) and Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company (“us,” “we” or “our”) where you agreed to make at least one Premium Payment to us and we agreed to make a series of Annuity Payouts at a later date. This Contract is a flexible premium, tax-deferred, variable annuity offered to both individuals and groups.
At the time you purchased your Contract, you allocated your Premium Payment to “Sub-Accounts.” These are subdivisions of our Separate Account, an account that keeps your Contract assets separate from our company assets. The Sub-Accounts then purchase shares of mutual funds set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that you buy through your stockbroker or through a retail mutual fund. They may have similar investment strategies and the same portfolio managers as retail mutual funds. This Contract offers you Funds with investment strategies ranging from conservative to aggressive and you may pick those Funds that meet your investment goals and risk tolerance. The Funds described in this prospectus are part of the following Portfolio Companies: AIM Variable Insurance Funds, AllianceBernstein L.P., Hartford HLS Funds and Hartford Investment Management Company.
Please read this prospectus carefully and keep it for your records and for future reference. The Statement of Additional Information contains more information about this Contract and, like this prospectus, is filed with the Securities and Exchange Commission (“SEC” or “Commission”). Although we file this prospectus and the Statement of Additional Information with the SEC, 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 be obtained free of charge by calling us at 1-800-862-6668 or from the SEC’s website (www.sec.gov).
Pursuant to IRS Circular 230, you are hereby notified of the following: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax adviser. This product is not intended to provide tax, accounting or legal advice. Please consult with your tax accountant or attorney prior to finalizing or implementing any tax or legal strategy or for any tax, accounting or legal advice concerning your situation.
NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT AGENCY
MAY LOSE VALUE
NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE
Date of Prospectus: May 2, 2016
Date of Statement of Additional Information: May 2, 2016


2
 

Table of Contents

 
Page
Appendix II — Death Benefit — Examples
Appendix IV - ACD Deferral Option - Examples
Appendix VI - Model Investment Options



3
 

Definitions
These terms are capitalized when used throughout this prospectus. Please refer to these defined terms if you have any questions as you read your prospectus.
Account: Any of the Sub-Accounts.
Accumulation Units: If you allocate your Premium Payment to any of the Sub-Accounts, we will convert those payments into Accumulation Units in the selected Sub-Accounts. Accumulation Units are valued at the end of each Valuation Day and are used to calculate the value of your Contract prior to Annuitization.
Accumulation Unit Value: The daily price of Accumulation Units on any Valuation Day.
Administrative Office: Our overnight mailing address is: The Hartford - Annuity Service Operations, 1338 Indian Mound Drive, Mt. Sterling, KY 40353. Our standard mailing address is The Hartford - Annuity Service Operations, PO Box 14293, Lexington, KY 40512-1293.
Anniversary Value: The value equal to the Contract Value as of a Contract Anniversary, adjusted for subsequent Premium Payments and partial Surrenders.
Annual Maintenance Fee: An annual $30 charge deducted on a Contract Anniversary or upon full Surrender if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Account in which you are invested.
Annuitant: The person on whose life the Contract is issued. The Annuitant may not be changed after your Contract is issued.
Annuity Calculation Date: The date we calculate the first Annuity Payout.
Annuity Commencement Date: The later of the 10th Contract Anniversary or the date the Annuitant reaches age 90, unless you elect an earlier date.
Annuity Payout: The money we pay out after the Annuity Commencement Date for the duration and frequency you select.
Annuity Payout Option: Any of the options available for payout after the Annuity Commencement Date or death of the Contract Owner or Annuitant.
Annuity Unit: The unit of measure we use to calculate the value of your Annuity Payouts under a variable dollar amount Annuity Payout Option.
Annuity Unit Value: The daily price of Annuity Units on any Valuation Day.
Beneficiary: The person(s) entitled to receive benefits pursuant to the terms of the Contract, upon the death of any Contract Owner, joint Contract Owner or Annuitant.
Benefit Amount: The basis used to determine the maximum payout guaranteed under The Hartford’s Principal First. The initial Benefit Amount is your Premium Payments if you elected the benefit upon purchase or your Contract Value on the date we add the benefit to your Contract if you elect the benefit at a later date. The Benefit Amount is referred to as the Guaranteed Remaining Balance in your Contract.
Benefit Payment: The maximum guaranteed payment that can be made each Contract Year under The Hartford’s Principal First. The initial Benefit Payment is equal to 7% of your Premium Payments if you elect the benefit upon purchase or 7% of your Contract Value on the date we add the benefit to your Contract. The Benefit Payment can never exceed the Benefit Amount. The Benefit Payment is called Guaranteed Annual Withdrawal Benefit in your Contract.
Charitable Remainder Trust: An irrevocable trust, where an individual donor makes a gift to the trust, and in return receives an income tax deduction. In addition, the individual donor has the right to receive a percentage of the trust earnings for a specified period of time.
Code: The Internal Revenue Code of 1986, as amended.
Commuted Value: The present value of any remaining guaranteed Annuity Payouts. This amount is calculated using the Assumed Investment Return for variable dollar amount Annuity Payouts and a rate of return determined by us for fixed dollar amount Annuity Payouts.
Contingent Annuitant: The person you may designate to become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant before the original Annuitant’s death.
Contract: The individual Annuity Contract and any endorsements or riders. Group participants and some individuals may receive a certificate rather than a Contract.


4
 

Contract Anniversary: The anniversary of the date we issued your Contract. If the Contract Anniversary falls on a Non-Valuation Day, then the Contract Anniversary will be the next Valuation Day.
Contract Owner, Owner or you: The owner or holder of the Contract described in this prospectus including any joint Owner(s). We do not capitalize “you” in the prospectus.
Contract Value: The total value of the Accounts on any Valuation Day.
Contract Year: Any 12 month period between Contract Anniversaries, beginning with the date the Contract was issued.
Death Benefit: The amount payable if the Contract Owner, Joint Contract Owner or the Annuitant dies before the Annuity Commencement Date.
Deferred Annuity Commencement Date: The Annuitant’s 100th birthday.
Dollar Cost Averaging: A program that allows you to systematically make transfers between Accounts available in your Contract.
Financial Intermediary: The broker dealer through whom you purchased your contract or the investment professional who is listed in our administrative systems as the agent of record on your Contract and services your Contract.
General Account: This account holds our company assets, including any assets not allocated to a Separate Account. The assets in the General Account are available to the creditors of Hartford.
In Good Order: Certain transactions require your authorization and completion of requisite forms. Such transactions will not be considered in good order unless received by us in our Administrative Office or via telephone or facsimile. Generally, our request for documentation will be considered in good order when we receive all of the requisite information on the form required by us.
Joint Annuitant: The person on whose life Annuity Payouts are based if the Annuitant dies after Annuitization. You may name a Joint Annuitant only if your Annuity Payout Option provides for a survivor. The Joint Annuitant may not be changed.
Maximum Anniversary Value: This is the highest Anniversary Value, adjusted for subsequent Premium Payments and withdrawals, prior to the deceased’s 81st birthday or the date of death, if earlier.
Net Investment Factor: This is used to measure the investment performance of a Sub-Account from one Valuation Day to the next, and is also used to calculate your Annuity Payout amount.
Non-Valuation Day: Any day the New York Stock Exchange is not open for trading.
Payee: The person or party you designate to receive Annuity Payouts.
Premium Payment: Money sent to us to be invested in your Contract.
Premium Tax: The amount of tax, if any, charged by federal, state, or other governmental entity on Premium Payments or Contract Values. On any contract subject to a Premium Tax, We may deduct the tax on a pro-rata basis from the Sub-Accounts at the time We pay the tax to the applicable taxing authorities, at the time the contract is surrendered, at the time death benefits are paid or on the Annuity Commencement Date. The Premium Tax rate varies by state or municipality. Currently the maximum rate charged by any state is 3.5% and 1.0% in Puerto Rico.
Qualified Contract: A contract issued to qualify under Sections 401, 403 or 408 of the Internal Revenue Code.
Required Minimum Distribution: A federal requirement that an individual age 70½ and older must take a distribution from their tax-qualified retirement account by December 31, each year. For employer sponsored qualified Contracts, the individual must begin taking distributions at the age of 70½ or upon retirement, whichever comes later.
Spouse : A person related to a Contract Owner by marriage pursuant to the Code.
Sub-Account Value: The value on or before the Annuity Calculation Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for that Sub-Account.
Surrender: A complete or partial withdrawal from your Contract.
Surrender Value: The amount we pay you if you terminate your Contract before the Annuity Commencement Date. The Surrender Value is equal to the Contract Value minus any applicable charges (subject to rounding).
The Hartford’s Principal First: An option that was available at an additional charge where, if elected you make take withdrawals during the life of the Contract Owner that are guaranteed to equal your total Premium Payments as long as certain conditions are met. The guaranteed amount is different if you elected this benefit after you purchased your Contract. This benefit is called


5
 

the Guaranteed Income Benefit in your Contract. This rider/option can no longer be elected or added after you purchase your Contract.
Valuation Day: Every day the New York Stock Exchange is open for trading. Values of the Separate Account are determined as of the close of the New York Stock Exchange, generally 4:00 p.m. Eastern Time.
Valuation Period: The time span between the close of trading on the New York Stock Exchange from one Valuation Day to the next.


6
 

Fee Tables
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract.
This table describes the fees and expenses that you will pay at the time that you purchase the Contract or Surrender the Contract. Charges for state premium taxes may also be deducted when you purchase the Contract, upon Surrender or when we start to make Annuity Payouts.
 
Contract
Years 1-7
Contract
Years 8+
Contract Owner Transaction Expenses
 
 
Sales Charge Imposed on Purchases (as a percentage of Premium Payments)
None
None
Contingent Deferred Sales Charge (as a percentage of Premium Payments)
None
None
Contract Owner Periodic Expenses
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, not including fees and expenses of the Underlying Funds.
Annual Maintenance Fee (1)
$30
$30
Separate Account Annual Expenses (as a percentage of average daily Sub-Account Value)
Mortality and Expense Risk Charge
1.50%
1.25%
Total Separate Account Annual Expenses
1.50%
1.25%
Optional Charges (as a percentage of average daily Sub-Account Value)
The Hartford’s Principal First Charge (2)
0.75%
0.75%
Optional Death Benefit Charge
0.15%
0.15%
Earnings Protection Benefit Charge
0.20%
0.20%
Total Separate Account Annual Expenses with all optional charges
2.60%
2.35%
(1) An annual $30 charge deducted on a Contract Anniversary or upon full Surrender if the Contract Value at either of those times is less than $50,000. It is deducted proportionately from the Sub-Accounts in which you are invested at the time of the charge.
(2) While the maximum charge for The Hartford’s Principal First is 0.75%, the current charge for this benefit is 0.50%. This charge may increase on or after the 5th anniversary of election. See “The Contract” section for additional information.
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. More detail concerning each underlying Fund’s fees and expenses is contained in the prospectus for each Fund.
Minimum and Maximum Total Annual Underlying Fund Operating Expenses
Director Access
Minimum
Maximum
Total Annual Fund Operating Expenses
(expenses that are deducted from Underlying Fund assets,
including management fees, distribution
and/ or service fees (12b-1) fees, and other expenses.
0.32%
0.96%
Director Choice Access
Minimum
Maximum
Total Annual Fund Operating Expenses
(expenses that are deducted from Underlying Fund assets,
including management fees, distribution
and/or service fees (12b-1) fees, and other expenses
0.32%
1.21%



7
 

EXAMPLE
This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. The Example reflects a deduction for the Annual Maintenance Fee, maximum Separate Account Annual Expenses including all Optional Charges, and the highest Total Annual Fund Operating Expenses of the underlying Funds. The Example does 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. If you did not select all of the optional benefits, your expenses would be lower than those shown in the Example.
The Example 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 $40,000 to illustrate the charges that would be deducted. Our average Contract Value is $80,000, but we use a smaller Contract Value so that we can show you the highest possible deductions. The Example assumes the Annual Maintenance Fee will always be deducted if the Contract is Surrendered. If your Contract Value is $50,000 or more, Hartford waives the Annual Maintenance Fee, so the Example shows charges that are higher than you would have to pay. We change the Annual Maintenance Fee for a $40,000 Contract Value into a percentage to more easily calculate the charges. The percentage we use is 0.075%.
The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes 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:

Director Access:
(1)
If you Surrender your Contract at the end of the applicable time period:
1 year
$
395

3 years
$
1,196

5 years
$
2,013

10 years
$
4,128

(2)
If you annuitize at the end of the applicable time period:
1 year
$
288

3 years
$
1,088

5 years
$
1,903

10 years
$
4,013

(3)
If you do not Surrender your Contract:
1 year
$
395

3 years
$
1,196

5 years
$
2,013

10 years
$
4,128



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Director Choice Access:
(1)
If you Surrender your Contract at the end of the applicable time period:
1 year
$
421

3 years
$
1,271

5 years
$
2,134

10 years
$
4,349

(2)
If you annuitize at the end of the applicable time period:
1 year
$
314

3 years
$
1,163

5 years
$
2,025

10 years
$
4,236

(3)
If you do not Surrender your Contract:
1 year
$
421

3 years
$
1,271

5 years
$
2,134

10 years
$
4,349


Condensed Financial Information
When Premium Payments are credited to your Sub-Accounts, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. For more information on how Accumulation Unit Values are calculated see “How is the value of my Contract calculated before the Annuity Commencement Date?” Please refer to Appendix IV for information regarding the minimum and maximum class of Accumulation Unit Values. All classes of Accumulation Unit Values may be obtained, free of charge, by calling us at 1-800-862-6668.


9
 

Highlights
How do I purchase this Contract?
This Contract is closed to new investors. In addition, as of October 4, 2013, we no longer allow Contract Owners to reinstate their Contracts when a Contract Owner requests a Surrender (either Full or Partial). Subsequent Premium Payments must be at least $500, unless you take advantage of our InvestEase ® Program or are part of certain retirement plans.
What type of sales charges apply?
You didn’t pay a sales charge when you purchased your Contract.
Is there an Annual Maintenance Fee?
We deduct this $30 fee each year on your Contract Anniversary or when you fully Surrender your Contract, if, on either of those dates, the value of your Contract is less than $50,000.
What charges will I pay on an annual basis?
In addition to the Annual Maintenance Fee, you pay the following charges each year:
•
Mortality and Expense Risk Charge — During Contract Years 1-7, a mortality and expense risk charge is deducted daily and is equal to an annual charge of 1.50% of your Contract Value invested in the Sub-Accounts. In Contract Year 8 or at the Annuity Commencement Date, whichever comes sooner, the mortality and expense risk charge drops to 1.25% of your Contract Value invested in the Sub-Accounts.
•
Annual Fund Operating Expenses — These are charges for the underlying Funds. See the Funds’ prospectuses for more complete information.
•
The Hartford’s Principal First Charge — This rider/option can no longer be elected or added after you purchase your Contract. If you elected The Hartford’s Principal First, we deduct an additional charge on a daily basis that is based on your Contract Value invested in the Sub-Accounts. If you elected this benefit, you cannot cancel it and we continue to deduct the charge until we begin to make Annuity Payouts.
•
Optional Death Benefit Charge — If you elected the Optional Death Benefit, we deduct an additional charge on a daily basis until we begin to make Annuity Payouts that is equal to an annual charge of 0.15% of your Contract Value invested in the Sub-Accounts.
•
Earnings Protection Benefit Charge — If you elected the Earnings Protection Benefit, we deduct an additional charge on a daily basis until we begin to make Annuity Payouts that is equal to an annual charge of 0.20% of your Contract Value invested in the Sub-Accounts.
If you elect the Deferral Option, then upon the original Annuity Commencement Date, the Hartford’s Principal First, the Optional Death Benefit and the Earnings Protection Benefit riders are terminated and the associated rider charges will no longer be assessed .
Charges and fees may have a significant impact on Contract Values and the investment performance of Sub-Accounts (particularly in Contracts with lower Contract Value).
Can I take out any of my money?
You may Surrender all or part of the amounts you have invested at any time before we start making Annuity Payouts.
Once Annuity Payouts begin, you may take full or partial Surrenders under the Payments for a Period Certain, Life Annuity with Payments for a Period Certain or the Joint and Last Survivor Life Annuity with Payments for a Period Certain Annuity Options, but only if you selected the variable dollar amount Annuity Payouts.
Ø
You may have to pay income tax on the money you take out and, if you Surrender before you are age 59½, you may have to pay a federal income tax penalty
Will Hartford pay a Death Benefit?
There is a Death Benefit if the Contract Owner, joint Contract Owner or the Annuitant, if applicable, die before we begin to make Annuity Payouts. The Death Benefit amount will remain invested in the Sub-Accounts according to your last instructions and will fluctuate with the performance of the underlying Funds.
If death occurs before the Annuity Commencement Date, the
Death Benefit is the greatest of:
•
The total Premium Payments you have made to us minus the dollar amount of any partial Surrenders, or


10
 

•
The Contract Value of your Contract, or
•
Your Maximum Anniversary Value, which is described below. The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased’s 81st birthday or date of death, whichever is earlier.
If you purchased your Contract on or after May 1, 2002, the Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments:
•
Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and
•
Your Anniversary Value is reduced proportionally for any partial Surrenders. We calculate the proportion based on the amount of any partial Surrenders since the Contract Anniversary divided by your Contract Value at the time of Surrender.
If you purchased your Contract before May 1, 2002, the Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments:
•
Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and
•
Your Anniversary Value is reduced by the dollar amount of any partial Surrenders since the Contract Anniversary.
The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations.
If you elect the Deferral Option, then on and after the original Annuity Commencement Date, your Death Benefit will equal the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the calculated Death Benefit amount will be subject to market fluctuations. No other Death Benefit or optional Death Benefits apply. All optional Death Benefits and Earnings Protection Benefit and their associated charges will terminate. Please see the section titled Annuity Commencement Date Deferral Option for more information.
Optional Death Benefit — If you elected the Optional Death Benefit at an additional charge, the Death Benefit will be the greatest of:
Ø
The total Premium Payments you have made to us minus the dollar amount of any partial Surrenders;
 
 
Ø
The Contract Value of your Contract;
 
 
Ø
Your Maximum Anniversary Value; or
 
 
Ø
Your Interest Accumulation Value from the date your Optional Death Benefit is added to your Contract.
If you elected the Optional Death Benefit, you cannot cancel it.
Earnings Protection Benefit — You may have elected the Earnings Protection Benefit at an additional charge. If you elected the Earnings Protection Benefit, you cannot cancel it.
If you and your Annuitant are age 69 or under on the date the Earnings Protection Benefit is added to your Contract, the death benefit calculation is the greatest of:
•
The total Premium Payments you have made to us minus the dollar amount of any partial Surrenders, or
•
The Maximum Anniversary Value, or
•
Your Contract Value on the date we receive a death certificate or other legal document acceptable to us plus 40% of the Contract gain since the date the Earnings Protection Benefit was added to your Contract.
If you or your Annuitant are age 70 through 75 on the date the Earnings Protection Benefit is added to your Contract, the percentage of Contract gain added to your Contract Value is reduced to 25%.
Your Contract gain is limited to or “capped” at a maximum of 200% of Contract Value on the date the Earnings Protection Benefit was added to your Contract plus Premium Payments not previously withdrawn made after the Earnings Protection Benefit was added to your Contract, excluding any Premium Payments made in the 12 months before the date of death. We subtract any adjustments for partial Surrenders.
What Annuity Payout Options are available?


11
 

When it comes time for us to make payouts, you may choose one of the following Annuity Payout Options: Life Annuity, Life Annuity with a Cash Refund, Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity, Joint and Last Survivor Life Annuity with Payments for Period Certain and Payments for a Period Certain. We may make other Annuity Payout Options available at any time.
You must begin to take payments by the Annuity Commencement Date, which is before the Annuitant’s 90th birthday or the end of the 10th Contract Year, whichever comes later. As of October 4, 2013, we no longer allow Contract Owners to extend their Annuity Commencement Date even though we may have granted extensions in the past to you or other similarly situated investors. If you do not tell us what Annuity Payout Option you want before that time, we will make Automatic Annuity Payouts under the Life Annuity with Payments for a Period Certain Payout Option with a ten-year period certain payment option. Automatic Annuity Payouts will be based on the investment allocation of your Contract in effect on the Annuity Commencement Date.
On or about February 1, 2016, we will allow eligible Contract Owners to defer their Annuity Commencement Date pursuant to the provisions outlined in the Annuity Commencement Date Deferral Option section.
For Qualified Contracts, if you defer your Annuity Commencement Date, the minimum periods for the Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments for a Period Certain and Payments For a Period Certain Annuity Payout Options will be five years. For non-Qualified Contracts, if you defer your Annuity Commencement Date, the minimum periods for the Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments for a Period Certain and Payments for a Period Certain Annuity Payout Options will be ten years.
For Qualified Contracts, if you defer your Annuity Commencement Date and if, between your original Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments for a Period Certain Payout Option with period certain payments for five years. For non-Qualified Contracts, if you defer your Annuity Commencement Date and if, between your Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments For a Period Certain Payout Option with period certain payments for ten years.
Can I defer my Annuity Commencement Date?
If you are eligible, you may elect a one-time deferral of your Annuity Commencement Date. To elect this option we must receive at our Administrative Office the Annuity Commencement Date Deferral Option Form In Good Order during the Election Period. The Election Period begins when we send you the Deferral Option rider and ends on your Annuity Commencement Date. The Deferral Option rider will become effective on the Annuity Commencement Date. For more information, please see the section titled Annuity Commencement Date Deferral Option.



12
 

General Contract Information
The Company
We are a stock life insurance company. Hartford Life Insurance Company is authorized to do business in all states of the United States and the District of Columbia. Hartford Life and Annuity Insurance Company is authorized to do business in Puerto Rico, the District of Columbia, and all states of the United States except New York. Hartford Life Insurance Company was originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Hartford Life and Annuity Insurance Company was originally incorporated under the laws of Wisconsin on January 9, 1956, and subsequently redomiciled to Connecticut. Hartford Life and Annuity Insurance Company is a subsidiary of Hartford Life Insurance Company. Our corporate offices are located in Hartford, Connecticut. Neither company cross guarantees the obligations of the other. We are ultimately controlled by The Hartford Financial Services Group, Inc.
All guarantees under the Contract are subject to each issuing company’s financial strength and claims-paying capabilities. We provide information about our financial strength in reports filed with the SEC (Hartford Life Insurance Company only) and/or state insurance departments. For example, Hartford Life Insurance Company files annual reports (Form 10-K), quarterly reports (Form 10-Q) and periodic reports (Form 8-K) with the SEC. Forms 10-K and 10-Q include information such as our financial statements, management discussion and analysis of the previous year of operations, risk factors, and other information. Form 8-K reports are used to communicate important developments that are not otherwise disclosed in the other forms described above. You may read or copy these reports at the SEC’s Public Reference Room at 100 F. Street N.E., Room 1580, Washington, D.C. 20549-2001. You may also obtain reports and other information about us by contacting us using the information stated on the cover page of this prospectus, visiting our website at www.thehartford.com/annuities or visiting the SEC’s website at www.sec.gov. You may also obtain reports and other financial information about us by contacting your state insurance department.
The Separate Account
We set aside and invest the assets of some of our annuity contracts, including these Contracts, in a Separate Account. These Separate Accounts are registered as unit investment trusts under the 1940 Act. This registration does not involve supervision by the SEC of the management or the investment practices of a Separate Account or us. Separate Accounts meet the definition of “Separate Account” under federal securities law. The Separate Accounts referenced in this prospectus hold only assets for variable annuity contracts. These Separate Accounts:
•
hold assets for your benefit and the benefit of other Contract Owners, and the persons entitled to the payouts described in the Contract;
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are not subject to the liabilities arising out of any other business we may conduct;
•
are not affected by the rate of return of our General Account or by the investment performance of any of our other Separate Accounts;
•
may be subject to liabilities of other variable annuity contracts offered by this Separate Account which are not described in this prospectus; and
•
are credited with income and gains, and takes losses, whether or not realized, from the assets they hold without regard to our other income, gains or loss.
We do not guarantee the investment results of the Separate Account.
In a low interest rate environment, yields for Money Market Sub-Accounts, after deduction of the Mortality and Expense Risk Charge, Administrative Expense Charge and Charges for Optional Benefits (if applicable), may be negative even though the underlying Fund’s yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a Money Market Sub-Account or participate in an Asset Allocation Program where Contract Value is allocated to a Money Market Sub-Account under the applicable asset allocation model, that portion of your Contract Value may decrease in value.


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The Funds
At the time you purchased your Contract, you allocated your Premium Payments to Sub-Accounts. These are subdivisions of our Separate Account, an account that keeps your Contract assets separate from our company assets. The Sub-Accounts then purchase shares of mutual funds set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that you buy through your investment professional even though they may have similar investment strategies and the same portfolio managers. Each Fund has varying degrees of investment risk. Funds are also subject to separate fees and expenses such as management fees, distribution charges and operating expenses. “Master-feeder” or “fund of funds” (“feeder funds”) invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return. Please contact us to obtain a copy of the prospectuses for each Fund (or for any feeder funds). Read these prospectuses carefully before investing. We do not guarantee the investment results of any Fund. Certain Funds may not be available in all states and in all Contract classes. Please see Appendix I for additional information.
Mixed and Shared Funding — Fund shares may be sold to our other Separate Accounts, our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to 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 Owners, and other Contract Owners investing in these Funds. If a material conflict arises, we will consider what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another underlying Fund.
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 Funds’ shareholder meetings. To the extent required by federal securities laws or regulations, we will:
•
notify you of any Fund shareholders’ meeting if the shares held for your Contract may be voted;
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send proxy materials and a form of instructions that you can use to tell us how to vote the Fund shares held for your Contract;
•
arrange for the handling and tallying of proxies received from Owners;
•
vote all Fund shares attributable to your Contract according to timely instructions received from you, and
•
vote all Fund shares for which no timely voting instructions are received in the same proportion as shares for which timely voting instructions have been received.
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. You may attend any shareholder meeting at which Fund shares held for your Contract may be voted. After we begin to make Annuity Payouts to you, the number of votes you have will decrease. There is no minimum number of shares for which we must receive timely voting instructions before we vote the shares. Therefore, as a result of proportional voting, the instruction of a small number of Owners could determine the outcome of matters subject to shareholder vote.
Substitutions, Additions, or Deletions of Funds — Subject to any applicable law, we may make certain changes to the Funds offered under your Contract. We may, at our discretion, establish new Funds. New Funds may be made available to existing Owners as we deem appropriate. We may also close one or more Funds to additional Premium Payments or transfers from existing Funds. We may liquidate one or more Sub-Accounts if the board of directors of any Fund determines that such actions are prudent. Unless otherwise directed, investment instructions will be automatically updated to reflect the Fund surviving after any merger, substitution or liquidation.
We may eliminate the shares of any of the Funds from the Contract for any reason and we may substitute shares of another registered investment company for the shares of any Fund already purchased or to be purchased in the future by the Separate Account. To the extent required by the 1940 Act, substitutions of shares attributable to your interest in a Fund will not be made until we have the approval of the SEC, and we have notified you of the change.
In the event of any substitution or change, we may, by appropriate endorsement, make any changes in the Contract necessary or appropriate to reflect the substitution or change. If we decide that it is in the best interest of the Owners, the Separate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-registered under the 1940 Act in the event such registration is no longer required, or may be combined with one or more other Separate Accounts.
Fees and Payments We Receive from Funds and related parties — We receive substantial fees and payments with respect to the Funds that are offered through your Contract (sometimes referred to as revenue sharing payments). We consider these fees and payments, among a number of facts, when deciding to include a Fund that we offer through the Contract. All of the Funds that are offered through your Contract make payments to Hartford or an affiliate. We receive these payments and fees


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under agreements between us and a Fund’s principal underwriter, transfer agent, investment adviser and/or other entities related to the Funds in amounts up to 0.55% of assets invested in a Fund. These fees and payments may include asset-based sales compensation and service fees under Premium Based Charges and/or servicing plans adopted by Funds pursuant to Rule 12b-1 under the Investment Company Act of 1940. These fees and payments may also include administrative service fees and additional payments, expense reimbursements and other compensation. Hartford expects to make a profit on the amount of the fees and payments that exceed Hartford’s own expenses, including our expenses of payment compensation to broker-dealers, financial institutions and other persons for selling the Contracts.
The availability of these types of arrangements creates an incentive for us to seek and offer Funds (and classes of shares of such Funds) that pay us revenue sharing. Other Funds (or available classes of shares) may have lower fees and better overall investment performance. As of December 31, 2015, we have entered into arrangements to receive administrative service payments and/or Rule 12b-1 fees from each of the following Fund complexes (or affiliated entities):
AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investments, American Variable Insurance Series & Capital Research and Management Company, American Century Investment Services Inc., BlackRock Advisors, LLC, BlackRock Investment, LLC, Columbia Management Distributors, Inc., Fidelity Distributors Corporation, Fidelity Investments Institutional Operations Company, Franklin Templeton Services, LLC, Hartford Funds Management Company, LLC, The Huntington Funds, Invesco Advisors Inc., Invesco Distributors Inc., Lord Abbett Series Fund & Lord Abbett Distributor, LLC, MFS Fund Distributors, Inc. & Massachusetts Financial Services Company, Morgan Stanley Distribution, Inc. & Morgan Stanley Investment Management & The Universal Institutional Funds, JPMorgan Investment Advisors, Inc., Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Pacific Investment Management Company, LLC, Pioneer Variable Contracts Trust & Pioneer Investment Management, Inc. & Pioneer Funds Distributor, Inc., Prudential Investment Management Services, LLC, Putnam Retail Management Limited Partnership, The Victory Variable Insurance Funds & Victory Capital Management, Inc. & Victory Capital Advisers, Inc. and Wells Fargo Variable Trust & Wells Fargo Fund Management, LLC.
We are affiliated with Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (collectively, the HLS Funds) and HIMCO VIT Funds based on our affiliation with their investment advisers HL Investment Advisors, LLC and Hartford Investment Management Company. In addition to investment advisory fees, we, or our other insurance company affiliates, receive fees to provide, among other things, administrative, processing, accounting and shareholder services for the HLS Funds.
Not all Fund complexes 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 fees and payments received by Hartford varies by Fund and Hartford may receive greater or less fees and payments depending on the Funds you select. Revenue sharing payments and Rule 12b-1 fees did not exceed 0.40% and 0.35%, respectively, in 2015, and are not expected to exceed 0.40% and 0.35%, respectively, of the annual percentage of the average daily net assets (for instance, assuming that you invested in a Fund that paid us the maximum fees and you maintained a hypothetical average balance of $10,000, we would collect a total of $75 from that Fund). For the fiscal year ended December 31, 2015, revenue sharing payments and Rule 12b-1 fees did not collectively exceed approximately $82.6 million. These fees do not take into consideration indirect benefits received by offering HLS Funds as investment options.
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.
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. Total return calculations reflect a deduction for Total Annual Fund Operating Expenses, Separate Account Annual Expenses without any optional charge deductions, and the Annual Maintenance Fee.
The Separate Account may also advertise non-standardized total returns that pre-date the inception 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. Non-standardized total return calculations reflect a deduction for Total Annual Fund Operating Expenses and Separate Account Annual Expenses without any optional charge deductions, and do not include deduction for Contingent Deferred Sales Charge or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than the standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized returns.
If applicable, the Sub-Accounts may advertise yield in addition to total return. This yield is based on the 30-day SEC yield of the underlying Fund less the recurring charges at the Separate Account level.
A money market Sub-Account may advertise yield and effective yield. The yield of a 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 include the recurring charges at 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 systematic 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 Contract and the characteristics of and market for such alternatives.
The Contract
Purchases and Contract Value
What types of Contracts are available?
This Contract is no longer available for sale. The Contract is an individual or group tax-deferred variable annuity contract. It was designed for retirement planning purposes and was available for purchase by any individual, group or trust, including:
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Any trustee or custodian for a retirement plan qualified under Sections 401(a) or 403(a) of the Code;
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Annuity purchase plans adopted by public school systems and certain tax-exempt organizations according to Section 403(b) of the Code;
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Individual Retirement Annuities adopted according to Section 408 of the Code;
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Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state or a political subdivision of a state, and
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Certain eligible deferred compensation plans as defined in Section 457 of the Code.
The examples above represent qualified Contracts, as defined by the Code. In addition, individuals and trusts were able to purchase Contracts that were not part of a tax qualified retirement plan. These are known as non-qualified Contracts.
If you purchased the Contract for use in an IRA or other qualified retirement plan, you should consider other features of the Contract besides tax deferral, since any investment vehicle used within an IRA or other qualified plan receives tax-deferred treatment under the Code.
This prospectus describes two versions of the Contract. Series I of the Contract was sold before May 1, 2002. Series IR of the Contract is sold on or after May 1, 2002, or the date your state approved Series IR for sale, if later.
How do I purchase a Contract?
The Contract was only available for purchase through a Financial Intermediary.
Premium Payments sent to us must be made payable in U.S. dollars and checks must be drawn on U.S. banks. We do not accept cash, third party checks or double endorsed checks. We reserve the right to limit the number of checks processed at one time. If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees incurred. A check must clear our account through our Administrative Office to be considered to be in good order.
Premium Payments may not exceed $1 million without our prior approval. We reserve the right to impose special conditions on anyone who seeks our approval to exceed this limit.
How are Premium Payments applied to my Contract?
If we receive a subsequent Premium Payment before the close of the New York Stock Exchange, it will be invested on the same Valuation Day. If we receive your Premium Payment after the close of the New York Stock Exchange, it will be invested on the next Valuation Day. If we receive your subsequent Premium Payment on a Non-Valuation Day, the amount will be invested on the next Valuation Day. Unless we receive new instructions, we will invest the Premium Payment based on your last allocation instructions on record. We will send you a confirmation when we invest your Premium Payment.
It is important that you notify us if you change your address. If your mail is returned to us, we are likely to suspend future mailings until an updated address is obtained. In addition, we may rely on a third party, including the U.S. Postal Service, to update your current address. Failure to give us a current address may result in payments due and payable on your annuity


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contract being considered abandoned property under state law, and remitted to the applicable state and may result in you not receiving important notices about your Contract.
Replacement of Annuities
A "replacement" occurs when a new contract is purchased and, in connection with the sale, an existing contract is surrendered, lapsed, forfeited, assigned to the replacing insurer, otherwise terminated, or used in a financed purchase. A "financed purchase" occurs when the purchase of a new annuity contract involves the use of the funds obtained from the values of an existing annuity contract through Withdrawal, Surrender or loan.
There are circumstances in which replacing your existing annuity contract can benefit you. However, a replacement may not be in your best interest. Accordingly, you should make a careful comparison of the cost and benefits of your existing contract and the proposed contract with the assistance of your financial and tax advisers to determine whether replacement is in your best interest. You should be aware that the person selling you the new contract will generally earn a commission if you buy the new contract through a replacement. Remember that if you replace a contract with another contract, you might have to pay a surrender charge on the replaced contract, and there may be a new surrender charge period for the new contract. In addition, other charges may be higher (or lower) and the benefits may be different.
You should also note that once you have replaced your variable annuity contract, you generally cannot reinstate it even if you choose not to accept your new variable annuity contract during your "free look" period. The only exception to this rule would be if your previously issued contract was issued in a state that requires the insurer to reinstate the previously surrendered contract if the owner chooses to reject their new variable annuity contract during their "free look" period.
Description of Right to Cancel provision you had when you Purchased your Contract.
If, for any reason, you are not satisfied with your Contract, simply return it within ten days after you receive it with a written request for cancellation that indicates your tax-withholding instructions. In some states, you may be allowed more time to cancel your Contract. We may require additional information, including a signature guarantee, before we can cancel your Contract.
Unless otherwise required by state law, we will pay you your Contract Value as of the Valuation Date we receive your request to cancel and will refund any sales or contract charges incurred during the period you owned the Contract. The Contract Value may be more or less than your Premium Payments depending upon the investment performance of your Account. This means that you bear the risk of any decline in your Contract Value until we receive your notice of cancellation. In certain states, however, we are required to return your Premium Payment without deduction for any fees or charges.
How is the value of my Contract calculated before the
Annuity Commencement Date?
The Contract Value is the sum of all 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. On any Valuation Day your Contract Value reflects the investment performance of the Sub-Accounts and will fluctuate with the performance of the underlying Funds.
When Premium Payments are credited to your Sub-Accounts, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. The more Premium Payments you make to your Contract, the more Accumulation Units you will own. You decrease the number of Accumulation Units you have by requesting Surrenders, transferring money out of a Sub-Account, settling a Death Benefit claim or by annuitizing your Contract.
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 Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. The Net Investment Factor for each Sub-Account equals:
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The net asset value per share plus applicable distributions per share of each Fund at the end of the current Valuation Day; divided by
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The net asset value per share of each Fund at the end of the prior Valuation Day; multiplied by
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Contract charges including the daily expense factor for the mortality and expense risk charge and any other periodic expenses, including charges for optional benefits, adjusted for the number of days in the period.
We will send you a statement at least annually, which tells you how many Accumulation Units you have, their value and your total Contract Value.
Can I transfer from one Sub-Account to another?


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You may make transfers between the Sub-Accounts offered in this Contract according to our policies and procedures as amended from time to time. In addition, there may be investment restrictions applicable to your contract in conjunction with certain riders as described in this prospectus.
What is a Sub-Account Transfer?
A Sub-Account transfer is a transaction requested by you that involves reallocating part or all of your Contract Value among the Funds available in your Contract. Your transfer request will be processed as of the end of the Valuation Day that it received is 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 advising us of any errors within 30 days of receiving the confirmation.
What Happens When I Request a Sub-Account Transfer?
Many Contract Owners 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 Contract Owners allocate new Premium Payments 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 Contract Owners’ “transfer-out” requests. At the same time, we also combine all the daily requests to transfer into a particular Sub-Account or new Premium Payments allocated to that Sub-Account and determine how many shares of that Fund we would need to buy to satisfy all Contract Owners’ “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 Contract Owners 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 My Ability to Make a Sub-Account Transfer?
First, you may make only one Sub-Account transfer request each day. We limit each Contract Owner 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 Contract Value more than once a Valuation Day.
Examples
Transfer Request Per Valuation Day
Permissible?
Transfer $10,000 from a money market Sub-Account to a growth Sub-Account
Yes
Transfer $10,000 from a money market Sub-Account to any number of other Sub-Accounts (dividing the $10,000 among the other Sub-Accounts however you chose)
Yes
Transfer $10,000 from any number of different Sub-Accounts to any number of other Sub-Accounts
Yes
Transfer $10,000 from a money market Sub-Account to a growth Sub-Account and then, before the end of that same Valuation Day, transfer the same $10,000 from the growth Sub-Account to an international Sub-Account
No
Second, you are allowed to submit a total of 20 Sub-Account transfers each Contract Year (the “Transfer Rule”) by U.S. Mail, Internet or telephone. Once you have reached 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, 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 or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service.


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We reserve the right to aggregate your Contracts (whether currently existing or those recently surrendered) 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, substitution or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law.
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 this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don’t purchase 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:
Abusive Transfer Policy (effective until July 1, 2007):
Regardless of the number of Sub-Account transfers you have done under the Transfer Rule, you still may have your Sub-Account transfer privileges restricted if you violate the Abusive Transfer Policy.
We rely on the Funds to identify a pattern or frequency of Sub-Account transfers that the Fund wants us to investigate. Most often, the Fund will identify a particular day where it experienced a higher percentage of shares bought followed closely by a day where it experienced the almost identical percentage of shares sold. Once a Fund contacts us, we run a report that identifies all Contract Owners who transferred in or out of that Fund’s Sub-Account on the day or days identified by the Fund. We may share tax identification numbers and other shareholder identifying information contained in our records with Funds. We then review the Contracts on that list to determine whether transfer activity of each identified Contract violates our written Abusive Transfer Policy. We don't reveal the precise details of our analysis to help make it more difficult for abusive traders to adjust their behavior to escape detection.
We consider some or all of the following factors:
ü the dollar amount of the transfer;
ü the total assets of the Funds involved in the transfer;
ü the number of transfers completed in the current calendar quarter;
ü whether the transfer is part of a pattern of transfers designed to take advantage of short-term market fluctuations or market inefficiencies; or
ü the frequent trading policies and procedures of a potentially affected Fund.
If you violate the Abusive Trading Policy, we will terminate your Sub-Account transfer privileges until your next Contract Anniversary. We do not differentiate between Contract Owners when enforcing this policy.
Fund Trading Policies (effective after July 1, 2007)
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 you from making Sub-Account transfers into a Fund or other funds within that fund complex. 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:
ü Certain types of financial intermediaries may not be required to provide us with shareholder information.
ü “Excepted funds” such as 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.
ü A Fund can decide to exempt categories of contract holders whose contracts are subject to inconsistent trading restrictions or none at all.
ü 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 step-up in Contract Value pursuant to a Contract Death Benefit or guaranteed minimum withdrawal benefit; (iv) as a result of any deduction of charges or fees under a Contract; or (v) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan salary reduction contributions, or planned premium payments.


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Possibility of undetected abusive trading or market timing. We may not be able to detect or prevent all abusive trading or market timing 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 cannot 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 this Contract or have the right to make transfers (regardless of whether requests are made by you or anyone else acting on your behalf). However, the Funds that make up the Sub-Accounts of this Contract are also available for use with many different variable life insurance policies, variable annuity products and funding agreements, and are offered directly to certain qualified retirement plans. Some of these products and plans may have less restrictive transfer rules or no transfer restrictions at all.
How am I 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 Contract. 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 cannot 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.
Mail, Telephone and Internet Transfers
You may make transfers through the mail or your Financial Intermediary. You may also make transfers by calling us or through our website. Transfer instructions received by telephone before the end of any Valuation Day will be carried our at the end of that date. Otherwise, the instructions will be carried out at the end of the next Valuation Day.
Transfer instructions you send electronically are considered to be received by Hartford at the time and date stated on the electronic acknowledgment Hartford returns to you. If the time and date indicated on the acknowledgment is before the end of any Valuation Day, the instructions will be carried out that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgment, you should telephone 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 reporting any inaccuracy or discrepancy to us and your investment professional. Any verbal communication should be re-confirmed in writing.
Telephone or Internet transfer requests may currently only be canceled by calling us before the close of the New York Stock Exchange on the 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 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.
Power of Attorney
You may authorize another person to conduct financial and other transactions on your behalf by submitting a copy of a power of attorney (POA) executed by you that meets the requirements of your resident state law. Once we have the POA on file, we will accept transaction requests, including transfer instructions, subject to our transfer restrictions, from your designated agent (attorney-in-fact). We reserve the right to request an affidavit or certification from the agent that the POA is in effect when the agent makes such transactions. You may instruct us to discontinue honoring the POA at any time.
Charges and Fees


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The following charges and fees are associated with the Contract:
Mortality and Expense Risk Charge
For assuming mortality and expense risks under the Contract during Contract Years 1-7, we deduct a daily charge at an annual rate of 1.50% of Sub-Account Value. After Contract Year
7 or at the Annuity Commencement Date, whichever comes sooner, we deduct a daily charge at an annual rate of 1.25% of Sub-Account Value. The mortality and expense risk charge is broken into charges for mortality risks and for an expense risk:
•
Mortality Risk — There are two types of mortality risks that we assume, those made while your Premium Payments are accumulating and those made once Annuity Payouts have begun.
During the period your Premium Payments are accumulating, we are required to cover any difference between the Death Benefit paid and the Surrender Value. These differences may occur during periods of declining value. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates.
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 Annual Maintenance Fee 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. The mortality and expense risk charge enables us to keep our commitments and to pay you as planned.
If the mortality and expense risk charge under a Contract is insufficient to cover our actual costs, we will bear the loss. If the mortality and expense risk charge exceeds these costs, we keep the excess as profit. We may use these profits for any proper corporate purpose including, among other things payment of sales expenses. We expect to make a profit from the mortality and expense risk charge.
Annual Maintenance Fee
The Annual Maintenance Fee is a flat fee that is deducted from your Contract Value to reimburse us for expenses relating to the administrative maintenance of the Contract and the Accounts. The annual $30 charge is deducted on a Contract Anniversary or when the Contract is fully Surrendered if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Account in which you are invested.
When is the Annual Maintenance Fee Waived?
We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. In addition, we will waive one Annual Maintenance Fee for Contract Owners who own more than one Contract with a combined Contract Value between $50,000 and $100,000. If you have multiple Contracts with a combined Contract Value of $100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts. However, we may limit the number of waivers to a total of six Contracts. We also may waive the Annual Maintenance Fee under certain other conditions. We do not include contracts from our Putnam Hartford line of variable annuity contracts with the Contracts when we combine Contract Value for purposes of this waiver.
Premium Taxes
The amount of tax, if any, charged by federal, state, or other governmental entity on Premium Payments or Contract Values. On any Contract subject to a Premium Tax, we may deduct the tax on a pro-rata basis from the Sub-Accounts at the time we pay the tax to the applicable taxing authorities, at the time the Contract is surrendered, at the time death benefits are paid or on the Annuity Commencement Date. The Premium Tax rate varies by state or municipality. Currently the maximum rate charged by any state is 3.5% and 1.0% in Puerto Rico.
Charges Against the Funds
Annual Fund Operating Expenses — The Separate Account purchases shares of the Funds at net asset value. The net asset value of the Fund reflects investment advisory fees and administrative expenses already deducted from the assets of the Funds. These charges are described in the Fund prospectuses accompanying this prospectus.
The Hartford’s Principal First Charge


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We will deduct this charge on a daily basis based on your Contract Value invested in the Sub-Accounts. If you elected this benefit, you cannot cancel it and we continue to deduct the charge until we begin to make Annuity Payouts. You may elect the annuitization option at any time. If you will be subject to fee increases if you elect to step-up the Benefit Amount.
Optional Death Benefit Charge
If you elected the Optional Death Benefit, we deduct an additional charge on a daily basis until we begin to make Annuity Payouts that is equal to an annual charge of 0.15% of your Contract Value invested in the Sub-Accounts. If you elected this benefit, you cannot cancel it and we will continue to deduct the charge until we begin to make Annuity Payouts.
Earnings Protection Benefit Charge
If you elected the Earnings Protection Benefit, we deduct an additional charge on a daily basis until we begin to make Annuity Payouts that is equal to an annual charge of 0.20% of your Contract Value invested in the Sub-Accounts. If you elected this benefit, you cannot cancel it and we continue to deduct the charge until we begin to make Annuity Payouts.
If you elect the Deferral Option, then upon the original Annuity Commencement Date, the Hartford’s Principal First, the Optional Death Benefit and the Earnings Protection Benefit riders are terminated and the associated rider charges will no longer be assessed.
Other disclosure specific to Invesco V.I. Government Money Market Fund
The Invesco V.I. Government Money Market Fund will continue to use the amortized cost method of valuation to seek to maintain a stable $1.00 net asset value and does not intend to impose liquidity fees or redemption gates on Fund redemptions. The Fund's board reserves the right to impose a liquidity fee or redemption gate in the future upon prior notice to shareholders and in conformance to Rule 2a-7 of the Investment Company Act of 1940. Further detail regarding these changes is set forth in the fund's prospectus.
Reduced Fees and Charges
We may offer, in our discretion, reduced fees and charges including, but not limited to the mortality and expense risk charge, and the Annual Maintenance Fee, for certain Contracts (including employer sponsored savings plans) which may result in decreased costs and expenses. Reductions in these fees and charges will not be unfairly discriminatory against any Contract Owner.
The Hartford’s Principal First
This rider/option can no longer be elected or added after you purchase your Contract. If you elected this benefit, you cannot cancel it and we will continue to deduct the charge until we begin to make Annuity Payouts. We reserve the right to treat all Contracts issued to you by Hartford or one of its affiliates within a calendar year as one Contract for purposes of The Hartford’s Principal First. This means that if you purchased two Contracts from us in any twelve month period and elect The Hartford’s Principal First on both Contracts, withdrawals from one Contract will be treated as withdrawals from the other Contract. If you elected The Hartford’s Principal First, a company-sponsored exchage will not be considered to be a revocation or termination of the benefit.
If you elected The Hartford’s Principal First when you purchased your Contract, your initial Premium Payment is equal to the maximum payouts (the “Benefit Amount”). If you elected this option at a later date, your Contract Value on the date we added the benefit to your Contract is equal to the initial Benefit Amount. The Benefit Amount can never be more than $5 million dollars. The Benefit Amount is reduced as you take withdrawals. The Hartford’s Principal First operates as a guarantee of the Benefit Amount. Benefit Payments under The Hartford’s Principal First are treated as partial Surrenders and are deducted from your Contract Value.
Once the initial Benefit Amount has been determined, Hartford calculates the maximum guaranteed payment that may be made each year (“Benefit Payment”). The Benefit Payment is equal to 7% of the initial Benefit Amount. If you do not take 7% one year, you may not take more than 7% the next year. The Benefit Payment can be divided up and taken on any payment schedule that you request. You can continue to take Benefit Payments until the Benefit Amount has been depleted.
If you Surrender more than the Benefit Payment out of your Contract in any one year we will recalculate the Benefit Amount. If you establish The Hartford’s Principal First when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you establish the benefit at any time after purchase, we count one year as the time between the date we added the option to your Contract and your next Contract Anniversary, which could be less than a year. Anytime we re-calculate your Benefit Amount or your Benefit Payment we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year.
If, in one year, your Surrenders total more than your Benefit Payment out of your Contract we will recalculate your Benefit Amount and your Benefit Payment may be lower in the future. We recalculate your Benefit Amount by comparing the results of two calculations. First, we deduct the amount of the last Surrender from your Contract Value (“New Contract Value”) and then we deduct the amount of the last Surrender from the Benefit Amount (“New Benefit Amount”). Then we compare those results:
•
If the New Contract Value is more than or equal to the New Benefit Amount, and more than or equal to the Premium Payments invested in the Contract before the Surrender, the Benefit Payment is unchanged.
•
If the New Contract Value is more than or equal to the New Benefit Amount, but less than the Premium Payments invested in the Contract before the Surrender, we have to recalculate your Benefit Payment. Your Benefit Payment becomes 7% of the greater of your New Contract Value and New Benefit Amount.
•
If the New Contract Value is less than the New Benefit Amount, we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the “old” Benefit Payment to 7% of the New Benefit Amount and your Benefit Payment becomes the lower of those two values. Your New Benefit Amount is then equal to the New Contract Value.
Anytime you make subsequent Premium Payments to your Contract, we also re-calculate your Benefit Amount and your Benefit Payments. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment. When you make a subsequent Premium Payment, your Benefit Payments will increase by 7% of the amount of the subsequent Premium Payment.
If you change the ownership or assign this Contract to someone other than your spouse anytime after one year of electing The Hartford’s Principal First, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future.
The Benefit Amount will be recalculated to equal the lesser of:
•
The Benefit Amount immediately prior to the ownership change or assignment, or
•
The Contract Value at the time of the ownership change or
Any time after the 5th year The Hartford’s Principal First has been in effect, you may elect to “step-up” the benefit. If you choose to “step-up” the benefit, your Benefit Amount is recalculated to equal your total Contract Value. Your Benefit Payment then becomes 7% of the new Benefit Amount, and will never be less than your existing Benefit Payment. You cannot elect to “step-up” if your current Benefit Amount is higher than your Contract Value. Any time after the 5th year the “step-up” benefit has been in place, you may choose to “stepup” the benefit again. Contract Owners who become owners by virtue of the Spousal Contract Continuation provision of the Contract can “step up” without waiting for the 5th year their Contract has been in force.
We currently allow you to “step-up” on any day after the 5th year the benefit has been in effect, however, in the future we may only allow a “step-up” to occur on your Contract Anniversary. At the time you elect to “step up,” we may be charging more for The Hartford’s Principal First. Regardless of when you bought your Contract, upon “step up” we will charge you the current The Hartford’s Principal First charge. Before you decide to “step up,” you should request a current prospectus which will describe the current charge for this Benefit.
This rider protects your investment by guaranteeing Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. You may also elect “step-ups” that reset your Benefit Amount to the then prevailing Contract Value.
You or your Spouse (if Spousal Contract continuation has been chosen) may elect to step-up your Benefit Amount following the 5th Contract Year that you added this rider to your Contract and again on each fifth anniversary from the last time you elected to step-up your Benefit Amount (or upon Spousal Contract continuation, whichever is earlier). These dates are called “election dates” in this section. Your Benefit Amount will then become the Contract Value as of the close of business on the Valuation Date that you properly made this election. Each time that you exercise step-up rights, your Benefit Payment will be


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reset to 7% of the new Benefit Amount, but will never be less than your then existing Benefit Payment. You must follow certain requirements to make this election:
•
We will accept requests for a step-up in writing, verbally or electronically, if available.
•
Written elections must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of making this election. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuineness of any election.
•
We will not accept any written election request received more than 30 days prior to an election date.
•
We will not accept any Internet (if available) or telephone election requests received prior to the election date. You may not post-date your election.
•
If an election form is received in good order within the 30 days prior to an election date, the “step-up” will automatically occur on the rider anniversary (or if the rider anniversary in a Non-Valuation Day then the next following Valuation Day). If an election form is received in good order on or after an election date, the “step-up” will occur as of the close of business on the Valuation Day that the request is received by us at our Administrative Office. We reserve the right to require you to elect step-ups only on Contract Anniversaries.
•
We will not honor any election request if your Contract Value is less than your Benefit Amount effective as of the step-up effective date.
•
Your election is irrevocable. This means that if your Contract Value increases after your step-up, you cannot ask us to reset your Benefit Amount again until your next election date. The fee for this rider may also change when you make this election and will remain in effect until your next election, if any.
You can Surrender your Contract any time, even if you have The Hartford’s Principal First, however, you will receive your Contract Value at the time you request the Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount you would have received under The Hartford’s Principal First. If you still have a Benefit Amount after you Surrender all of your Contract Value or your Contract Value is reduced to zero, you will still receive a Benefit Payment through an Annuity Payout option called The Hartford’s Principal First Payout Option until your Benefit Amount is depleted. While you are receiving payments, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining payments.
If you elected The Hartford’s Principal First and later decide to annuitize your Contract, you may choose from another Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option, called The Hartford’s Principal First Payout Option, Hartford will pay a fixed dollar amount for a specific number of years (“Payout Period”). If you, the joint Contract Owner or the Annuitant should die before the Payout Period is complete the remaining payments will be made to the Beneficiary. The Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options.
If you, the joint Contract Owner or Annuitant die before you receive all the Benefit Payments guaranteed by Hartford, the Beneficiary may elect to take the remaining Benefit Payments or any of the death benefit options offered in your Contract.
If you surrender all of your Contract Value or your Contract Value is reduced to zero, but you still have a Benefit Amount, you will still receive a Benefit Payment through an Annuity Payout option called The Hartford’s Principal First Payout Option until your Benefit Amount is depleted. While you are receiving payments, you may not make additional Premium Payments, and if you die before you receive all of your payments, your beneficiary will continue to receive the remaining payments.
Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on an annual basis, usually beginning after age 70½. These withdrawals are called Required Minimum Distributions. A Required Minimum Distribution may exceed your Benefit Payment, causing a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. For qualified Contracts, The Hartford’s Principal First cannot be elected if the Contract Owner or Annuitant is age 81 or older.
For examples on how The Hartford’s Principal First is calculated, please see “Appendix III.”
Death Benefit
What is the Death Benefit and how is it calculated?
The Death Benefit is the amount we will pay if the Contract Owner, joint Contract Owner or the Annuitant dies before we begin to make annuity payouts. The Death Benefit is calculated when we receive a certified death certificate or other legal document acceptable to us.


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Unless the Beneficiary provides us with instructions to reallocate the Death Benefit among the Accounts, the calculated Death Benefit will remain invested in the same Accounts, according to the Contract Owner’s last instructions until we receive complete written settlement instructions from the Beneficiary. Therefore, the Death Benefit amount will fluctuate with the performance of the underlying Funds. When there is more than one Beneficiary, we will calculate the Accumulation Units for each Sub-Account for each Beneficiary’s portion of the proceeds.
If death occurs before the Annuity Commencement Date, the Death Benefit is the greatest of:
•
The total Premium Payments you have made to us minus the dollar amount of any partial Surrenders; or
•
The Contract Value of your Contract; or
•
The Maximum Anniversary Value, which is described below.
The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased’s 81st birthday or date of death, whichever is earlier.
If you purchased your Contract on or after May 1, 2002, the Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments:
•
Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and
•
Your Anniversary Value is reduced proportionally for any partial Surrenders. We calculate the proportion based on the amount of any partial Surrenders since the Contract Anniversary divided by your Contract Value at the time of Surrender.
If you purchased your Contract before May 1, 2002, the Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments:
•
Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and
•
Your Anniversary Value is reduced by the dollar amount of any partial Surrenders since the Contract Anniversary.
The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations.
If you elect the Deferral Option, then on and after the original Annuity Commencement Date, your Death Benefit will equal the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the calculated Death Benefit amount will be subject to market fluctuations. No other Death Benefit or optional Death Benefits apply. All optional Death Benefits and Earnings Protection Benefit and their associated charges will terminate. Please see the section titled Annuity Commencement Date Deferral Option for more information.
Optional Death Benefit — You may have elected the Optional Death Benefit for an additional charge. The Optional Death Benefit adds the Interest Accumulation Value to the Death Benefit calculation.
The Interest Accumulation Value will be:
•
Your Contract Value on the date we add the Optional Death Benefit to your Contract;
•
Plus any Premium Payments made after the Optional Death Benefit is added;
•
Minus any partial Surrenders after the Optional Death Benefit is added;
•
Compounded daily at an annual interest rate of 5%.
If you have taken any partial Surrenders, the Interest Accumulation Value will be adjusted to reduce the Optional Death Benefit proportionally for any partial Surrenders.
On or after the deceased’s 81st birthday or date of death, the Interest Accumulation Value will not continue to compound, but will be adjusted to add any Premium Payments or subtract any partial Surrenders.

The Optional Death Benefit is limited to a maximum of 200% of Contract Value on the date the Optional Death Benefit was added to your Contract plus Premium Payments not previously withdrawn made after the Optional Death Benefit was added to your Contract. We subtract proportional adjustments for any partial Surrenders. For examples on how the Optional Death Benefit is calculated see “Appendix II.”


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If you elected the Optional Death Benefit, you cannot cancel it.
Earnings Protections Benefit — You may have elected the Earnings Protection Benefit at an additional charge.
If you elected the Earnings Protection Benefit, you cannot cancel it.
If you and your Annuitant are age 69 or under on the date the Earnings Protection Benefit is added to your Contract, the Earnings Protection Benefit is the greatest of:
•
The total Premium Payments you have made to us minus the dollar amount of any partial Surrenders; or
•
The Maximum Anniversary Value; or
•
Your Contract Value on the date we receive a death certificate or other legal document acceptable to us, plus 40% of the Contract gain since the date the Earnings Protection Benefit was added to your Contract.
We determine any Contract gain by comparing your Contract Value on the date you added the Earnings Protection Benefit to your Contract to your Contract Value on the date we calculate the Death Benefit. We deduct any Premium Payments and add adjustments for any partial Surrenders made during that time.
We make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender.
Your Contract gain is limited to or “capped” at a maximum of 200% of Contract Value on the date the Earnings Protection Benefit was added to your Contract plus Premium Payments not previously withdrawn made after the Earnings Protection Benefit was added to your Contract, excluding any Premium Payments made in the 12 months before the date of death. We subtract any adjustments for partial Surrenders.
Hartford takes 40% of either the Contract gain or the capped amount and adds it back to your Contract Value to complete the Death Benefit calculation. If you or your Annuitant are age 70 through 75, we add 25% of the Contract gain or capped amount back to Contract Value to complete the Death Benefit calculation. The percentage used for the Death Benefit calculation is determined by the oldest age of you and your Annuitant at the time the Earnings Protection Benefit is added to your Contract.
For example: Assuming that:
Ÿ The Contract Value on the date we received proof of death plus 40% of the Contract gain was the greatest of the three death benefit calculations,
Ÿ You elected the Earnings Protection Benefit when you purchased your Contract,
Ÿ You made a single Premium Payment of $100,000,
Ÿ You took no partial Surrenders,
Ÿ The Contract Value on the date we receive proof of death was $400,000.
Hartford would calculate the Contract gain as follows:
Ÿ Contract Value on the date we receive proof of death equals $400,000,
Ÿ minus the Contract Value on the date the Earnings Protection Benefit was added to your Contract or $100,000 = $300,000.
To determine if the cap applies:
Ÿ Hartford calculates the Contract Value on the date the Earnings Protection Benefit was added to your Contract ($100,000),
Ÿ plus Premium Payments made since that date ($0),
Ÿ minus Premium Payments made in the 12 months prior to death ($0),
Which equals $100,000. The cap is 200% of $100,000, which is $200,000.
In this situation the cap applies, so Hartford takes 40% of $200,000 or $80,000 and adds that to the Contract Value on the date we receive proof of death and the total Death Benefit with the Earnings Protection Benefit is $480,000.
Before you purchase the Earnings Protection Benefit, you should also consider the following:
•
If your Contract has no gain when Hartford calculates the Death Benefit, Hartford will not pay an Earnings Protection Benefit.
•
Partial Surrenders can reduce or eliminate your Contract gain. So if you plan to make partial Surrenders, there may be no Earnings Protection Benefit.


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•
If you transfer ownership of your Contract to someone other than your spouse who would have been ineligible for the Earnings Protection Benefit when it was added to your Contract, the Earnings Protection Benefit charge will continue to be deducted even though no Earnings Protection Benefit will be payable.
Additional Information about the Death Benefits
For more information on how these optional benefits may affect your taxes, please see Appendix Tax the section entitled, “Federal Tax Considerations,” under sub-section entitled “Taxation of Annuities — General Provisions Affecting Contracts Not Held in Tax-Qualified Retirement Plans.”
The total death benefits payable as a result of the death of any one person under one or more deferred variable annuities issued by Hartford or its affiliates after May 1, 2002, and aggregate Premium Payments total $5 million or more, cannot exceed the greater of:
•
The aggregate Premium Payments minus any Surrenders;
•
The aggregate Contract Value plus $1 million.
However, if you add Premium Payments to any of your Contracts such that aggregate Premium Payments total to $5 million or more, the aggregate death benefit will be the greater of the maximum death benefit above or:
•
The aggregate Contract Value; plus
•
The aggregate death benefits in excess of the aggregate Contract Values at the time you added the Premium Payments to your Contracts.
Any reduction in death benefits to multiple variable annuity contracts will be in proportion to the Contract Value of each contract at the time of reduction.
How is the Death Benefit paid?
The Death Benefit may be taken in one lump sum or under any of the Annuity Payout Options then being offered by us, unless the Contract Owner has designated the manner in which the Beneficiary will receive the Death Benefit. When payment is taken in one lump sum, payment will be made within seven days of our receipt of complete instructions, except when we are permitted to defer such payment under the Investment Company Act of 1940. On the date we receive complete instructions from the Beneficiary, we will compute the Death Benefit amount to be paid out or applied to a selected Annuity Payout Option. When there is more than one Beneficiary, we will calculate the Death Benefit amount for each Beneficiary’s portion of the proceeds and then pay it out or apply it to a selected Annuity Payout Option according to each Beneficiary’s instructions. If we receive the complete instructions on a Non-Valuation Day, computations will take place on the next Valuation Day.
If the Death Benefit payment is $5,000 or more, the Beneficiary may elect to have their Death Benefit paid through our “Safe Haven Program.” Under this program, the proceeds remain in our General Account and the Beneficiary will receive a draft book. Proceeds are guaranteed by the claims paying ability of the Company; however, it is not a bank account and is not insured by Federal Deposit Insurance Corporation (FDIC), nor is it backed by any federal or state government agency. The Beneficiary can write one draft for total payment of the Death Benefit, or keep the money in the General Account and write drafts as needed. We will credit interest at a rate determined periodically in our sole discretion. We will credit interest at a rate determined periodically in our sole discretion. The interest rate is based upon the analysis of interest rates credited to funds left on deposit with other insurance companies under programs similar to The Hartford’s Safe Haven program. In determining the interest rate, we also factor in the impact of our profitability, general economic trends, competitive factors and administrative expenses. The interest rate credit is not subject to minimum interest rates prescribed by state non-forfeiture laws. For federal income tax purposes, the Beneficiary will be deemed to have received the lump sum payment on transfer of the Death Benefit amount to the General Account. The interest will be taxable to the Beneficiary in the tax year that it is credited. We may not offer the Safe Haven Program in all states and we reserve the right to discontinue offering it at any time. Although there are no direct charges for this program, we earn investment income from the proceeds. The investment income we earn is likely more than the amount of interest we credit; therefore, we make a profit from the difference.
The Beneficiary may elect, under the Annuity Proceeds Settlement Option “Death Benefit Remaining with the Company” to leave proceeds from the Death Benefit invested with us for up to five years from the date of death if death occurred before the Annuity Commencement Date. Once we receive a certified death certificate or other legal document acceptable to us, the Beneficiary can: (a) make Sub-Account transfers and (b) take Surrenders.
The Beneficiary of a non-qualified Contract or IRA may also elect the “Single Life Expectancy Only” option. This option allows the Beneficiary to take the Death Benefit in a series of payments spread over a period equal to the Beneficiary’s remaining life expectancy. Distributions are calculated based on IRS life expectancy tables. This option is subject to different limitations and conditions depending on whether the Contract is non-qualified or an IRA.


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Required Distributions — If the Contract Owner dies before the Annuity Commencement Date, the Death Benefit must be distributed within five years after death or be distributed under a distribution option or Annuity Payout Option that satisfies the Alternatives to the Required Distributions described below.
If the Contract Owner dies on or after the Annuity Commencement Date under an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value, any remaining value must be distributed at least as rapidly as under the payment method being used as of the Contract Owner’s death.
If the Contract Owner is not an individual (e.g. a trust), then the original Annuitant will be treated as the Contract Owner in the situations described above and any change in the original Annuitant will be treated as the death of the Contract Owner.
What should the Beneficiary consider?
Alternatives to the Required Distributions — The selection of an Annuity Payout Option and the timing of the selection will have an impact on the tax treatment of the Death Benefit. To receive favorable tax treatment, the Annuity Payout Option selected: (a) cannot extend beyond the Beneficiary’s life or life expectancy, and (b) must begin within one year of the date of death.
If these conditions are not met, the Death Benefit will be treated as a lump sum payment for tax purposes. This sum will be taxable in the year in which it is considered received.
Spousal Contract Continuation — If the Contract Owner dies and a Beneficiary is the Contract Owner’s spouse, that portion of the Contract for which the spouse is considered the Beneficiary will continue with the spouse as Contract Owner, unless the spouse elects to receive the Death Benefit as a lump sum payment or as an annuity payment option. If the Contract continues with the spouse as Contract Owner, we will adjust the Contract Value to the amount that we would have paid as the Death Benefit payment, had the spouse elected to receive the Death Benefit as a lump sum payment. Spousal Contract Continuation will only apply one time for each Contract.
If your spouse continues any portion of the Contract as Contract Owner and elects the Earnings Protection Benefit, Hartford will use the date the Contract is continued with your spouse as Contract Owner as the date the Earnings Protection Benefit was added to the Contract. The percentage used for the Earnings Protection Benefit will be determined by the oldest age of any remaining joint Contract Owner or Annuitant at the time the Contract is continued.
If you elect the Deferral Option and if your Spouse continues the Contract after the original Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s, if any, 100th birthday.
Who will receive the Death Benefit?
The distribution of the Death Benefit applies only when death is before the Annuity Commencement Date.
If death occurs on or after the Annuity Commencement Date, there may be no payout at death unless the Contract Owner has elected an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value.
If death occurs before the Annuity Commencement Date:
If the deceased is the . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving joint
Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit.
Contract Owner
There is no surviving joint
Contract Owner
The Annuitant is living or deceased
Designated Beneficiary receives the Death Benefit.
Contract Owner
There is no surviving joint Contract Owner and the Beneficiary predeceases the Contract Owner
The Annuitant is living or deceased
Contract Owner’s estate receives the Death Benefit.
Annuitant
The Contract Owner is living
There is no named Contingent
Annuitant
Death Benefit is paid to the Contract Owner and not the designated Beneficiary.
Annuitant
The Contract Owner is living
The Contingent Annuitant is living
Contingent Annuitant becomes the Annuitant, and the Contract continues.
If death occurs on or after the Annuity Commencement Date:


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If the deceased is the . . .
and . . .
then the . . .
Contract Owner
The Annuitant is living
Designated Beneficiary becomes the Contract
Owner.
Annuitant
The Contract Owner is living
Contract Owner receives a payout at death, if any.
Annuitant
The Annuitant is also the Contract Owner
Designated Beneficiary receives a payout at death, if any.
If you elect the Deferral Option and if the Contingent Annuitant continues the Contract after the original Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s 100th birthday.
These are the most common Death Benefit scenarios, however, there are others. Some of the Annuity Payout Options may not result in a payout at death. For more information on Annuity Payout Options, including those that may not result in a payout at death, please see the section entitled “Annuity Payouts” and the “Death Benefit” section of your Contract. If you have questions about these and any other scenarios, please contact your Registered Representative or us.
Surrenders
What kinds of Surrenders are available?
Full Surrenders before the Annuity Commencement Date — When you Surrender your Contract before the Annuity Commencement Date, the Surrender Value of the Contract will be made in a lump sum payment. The Surrender Value is the Contract Value minus any applicable Premium Taxes and the Annual Maintenance Fee. The Surrender Value may be more or less than the amount of the Premium Payments made to a Contract.
Partial Surrenders before the Annuity Commencement Date — You may request a partial Surrender of Contract Values at any time before the Annuity Commencement Date.
Both full and partial Surrenders are taken proportionally from the Sub-Accounts. There are two restrictions on partial Surrenders before the Annuity Commencement Date:
•
The partial Surrender amount must be at least equal to $100, our current minimum for partial Surrenders, and
•
The Contract must have a minimum Contract Value of $500 after the Surrender. The minimum Contract Value in New York must be $1,000 after the Surrender. We will close your Contract and pay the full Surrender Value if the Contract Value is under the minimum after the Surrender. The minimum Contract Value in Texas must be $1,000 after the surrender with no premium payments made during the prior two contract years.
Under certain circumstances Hartford had permitted certain Contract Owners to reinstate their Contracts (and certain riders) when a Contract Owner had requested a Surrender (either full or Partial) and returned the forms in good order to Hartford. As of October 4, 2013, we are no longer allowing Contract Owners to reinstate their Contracts when a Contract Owner requests a Surrender (either full or Partial).
Full Surrenders after the Annuity Commencement Date — You may Surrender your Contract on or after the Annuity Commencement Date only if you selected the Payments for a Period Certain variable dollar amount Annuity Payout Option. Under this option, we pay you the Commuted Value of your Contract. The Commuted Value is determined on the day we receive your written request for Surrender.
Partial Surrenders after the Annuity Commencement Date — Partial Surrenders are permitted after the Annuity Commencement Date if you select the Life Annuity With Payments for a Period Certain, Joint and Last Survivor Life Annuity With Payments for a Period Certain or the Payment for a Period Certain Annuity Payout Option. You may take partial Surrenders of amounts equal to the Commuted Value of the payments that we would have made during the “Period Certain” for the number of years you select under the Annuity Payout Option that we guarantee to make Annuity Payouts.
To qualify for partial Surrenders under these Annuity Payout Options you must elect a variable dollar amount Annuity Payout and you must make the Surrender request during the Period Certain.
Both full and partial Surrenders are taken proportionally from the Sub-Accounts.
If you elect to take the entire Commuted Value of the Annuity Payouts we would have made during the Period Certain, Hartford will not make any Annuity Payouts during the remaining Period Certain. If you elect to take only some of the Commuted Value of the Annuity Payouts we would have made during the Period Certain, Hartford will reduce the remaining Annuity Payouts during the remaining Period Certain. Annuity Payouts that are to be made after the Period Certain is over will not change.


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Please check with your tax adviser because there could be adverse tax consequences for partial Surrenders after the Annuity Commencement Date.
Does the Invesco V.I. Government Money Market Fund impose a fee or gate for redemption?
The Invesco V.I. Government Money Market Fund will continue to use the amortized cost method of valuation to seek to maintain a stable $1.00 net asset value and does not intend to impose liquidity fees or redemption gates on Fund redemptions.  The Fund’s board reserves the right to impose a liquidity fee or redemption gate in the future upon prior notice to shareholders and in conformance to Rule 2a-7 of the Investment Company Act of 1940.  Further detail is set forth in the Fund’s prospectus.
How do I request a Surrender?
Requests for full Surrenders terminating your Contract must be in writing. Requests for partial Surrenders can be made in writing, by telephone or via the internet. We will send your money within seven days of receiving complete instructions. However, we may postpone payment whenever: (a) the New York Stock Exchange is closed, (b) trading on the New York Stock Exchange is restricted by the SEC, (c) the SEC permits and orders postponement or (d) the SEC determines that an emergency exists to restrict valuation.
We may also postpone payment of Surrenders with respect to a money market Fund if the board of directors of the underlying money market Fund suspends redemptions from the Fund in connection with the Fund’s plan of liquidation, in compliance with rules of the SEC or an order of the SEC.
Written Requests — Complete a Surrender form or send us a letter, signed by you, stating:
•
the dollar amount that you want to receive, either before or after we withhold taxes and deduct for any applicable charges,
•
your tax withholding amount or percentage, if any, and
•
your disbursement instructions, including your mailing address.
You may submit this form via mail, fax or a request via the internet.
Unless you specify otherwise, we will provide the dollar amount you want to receive after applicable taxes and charges as the default option.
If there are joint Owners, both must authorize these transactions. For a partial Surrender, specify the Sub-Accounts that you want your Surrender to come from (this may be limited to pro-rata Surrenders if optional benefits are elected); otherwise, the Surrender will be taken in proportion to the value in each Sub-Account.
Telephone or Internet Requests — To request a partial Surrender by telephone or internet, we must have received your completed Internet Partial Withdrawal/Telephone Redemption Authorization Form. If there are joint Owners, both must sign the form. By signing the form, you authorize us to accept telephone or internet instructions for partial Surrenders from either Owner. Telephone or Internet authorization will remain in effect until we receive a written cancellation notice from you or your joint Owner, we discontinue the program, or you are no longer the Owner of the Contract. Please call us with any questions regarding restrictions on telephone or internet Surrenders.
We may record telephone calls and use other procedures to verify information and confirm that instructions are genuine. We will not be liable for losses or expenses arising from telephone instructions reasonably believed to be genuine.
We may modify the requirements for telephone and/or internet redemptions at any time.
Telephone and internet Surrender instructions received before the end of a Valuation Day will be processed at the end of that Valuation Day. Otherwise, your request will be processed at the end of the next Valuation Day.
Completing a Power of Attorney for another person to act on your behalf may prevent you from making Surrenders via telephone and internet.
What should be considered about taxes?
There are certain tax consequences associated with Surrenders:
Prior to age 59½ — If you make a Surrender prior to age 59½ there may be adverse tax consequences including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Surrendering before age 59½ may also affect the continuing tax-qualified status of some Contracts.
We do not monitor Surrender requests. To determine whether a Surrender is permissible, with or without federal income tax penalty, please consult your personal tax adviser.


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More than one Contract issued in the same calendar year — If you own more than one contract issued by us or our affiliates in the same calendar year, then these contracts may be treated as one contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. Please consult your tax adviser for additional information.
Internal Revenue Code section 403(b) annuities — As of December 31, 1988, all section 403(b) annuities have limits on full and partial Surrenders. Contributions to your Contract made after December 31, 1988 and any increases in cash value after December 31, 1988 may not be distributed unless you are: (a) age 59½, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship (cash value increases may not be distributed for hardships prior to age
59½). Distributions prior to age 59½ due to financial hardship; unemployment or retirement may still be subject to a penalty tax of 10%.
We will no longer accept any incoming 403(b) exchanges or applications for 403(b) individual annuity contracts.
We encourage you to consult with your qualified tax adviser before making any Surrenders. Please see Appendix Tax “Federal Tax Considerations” section for more information.
Annuity Commencement Date Deferral Option (“Deferral Option”)
Who is eligible to participate in the Deferral Option?
We will notify you prior to your Annuity Commencement Date of the options available to you at your Annuity Commencement Date. During the Election Period, which begins when we send you the Deferral Option rider and ends on your Annuity Commencement Date (“Election Period”), you may choose any of the available options. If one of the options available at that time is the Deferral Option and the following conditions are met, you may elect the Deferral Option:
• You have not elected the Deferral Option previously;
• The Deferral Option has not been withdrawn by The Hartford;
• We have not received a death notification on the Contract. (In addition, if a death that triggers a Death Benefit under the Contract occurs before we process your request for the Deferral Option, you and your Beneficiary(ies) will not be eligible for the Deferral Option);
• No death that triggers a Death Benefit under the Contract occurs before your Annuity Commencement Date;
• Your beneficiaries have not elected a death benefit settlement option;
• You are within 90 days of your Annuity Commencement Date and you are at least 90 years old on your Annuity Commencement Date;
• We have not previously received a separate full Surrender request from you;
• The state in which your Contract was issued has approved the Deferral Option rider;
• We must receive your signed Annuity Commencement Date Deferral Option Form in Good Order at our Administrative Office to elect the Deferral Option. We must receive the Annuity Commencement Date Deferral Option Form on any Valuation Day up to and including the Annuity Commencement Date, provided we receive it no later than 4:00 p.m. Eastern Time or, if earlier, the close of the New York Stock Exchange on the Annuity Commencement Date. If the Annuity Commencement Date falls on a non-Valuation Day we must receive it by the prior Valuation Day;
• You must not be beyond your Annuity Commencement Date or have annuitized your Contract;
• You must be a customer of a Financial Intermediary in accordance with our records;
• The Contract is not owned by a Charitable Remainder Trust (The Annuity Commencement Date of these contracts is the Annuitant's 100th birthday except in New York and Pennsylvania, where the Annuity Commencement Date is the Annuitant's 90th birthday); and
• During the Election Period, we have not received a request to process additional Premium Payments through a 1035 exchange, direct transfer or direct rollover.
If, on the Annuity Commencement Date, you are not eligible to defer your Annuity Commencement Date to the Annuitant’s 100th birthday, your Contract will annuitize using the default annuitization option outlined in your Contract unless you have provided us with In Good Order instructions to the contrary.
This supplement to your prospectus is being provided to all Contract Owners at this time, but does not signify approval of the Deferral Option rider by any state and does not mean that the Deferral Option will be available in the future even if the rider has been approved by your state. Approval by your state is not an endorsement by that state of the Deferral Option.


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If you are eligible for the Deferral Option and if you properly elect the Deferral Option, no changes will be made to your contract until the Annuity Commencement Date. On that date, the following changes will occur:
• Your Annuity Commencement Date will be deferred to the Annuitant’s 100th birthday ("the Deferred Annuity Commencement Date");
• The Death Benefit described in your Contract and any optional Death Benefits will be terminated and the new Death Benefit will be the Contract Value on the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the Death Benefit amount will be subject to market fluctuations;
• All optional Death Benefit rider charges will no longer be assessed;
• The Earnings Protection Benefit (i) will be terminated in its entirety; and (ii) the charge for that benefit will no longer be assessed;
• The Hartford’s Principal First rider, including any guaranteed income benefit, death benefit settlement option and any annuitization option under that rider (i) will be terminated in its entirety; (ii) the charge for that rider will no longer be assessed; and (iii) your contract will then be subject to the contract minimum rules. If however you are receiving Automatic Income Payments under The Hartford’s Principal First rider, you may continue to do so once the Deferral Option is effective. However, you will then be subject to the contract minimum rules. That is, if after any withdrawal, whether it be a systematic withdrawal or a one-time partial Surrender, your Contract Value falls below the contract minimum, we will close your contract and pay the full Surrender Value;
• You may not transfer money into your Contract through a 1035 exchange, direct transfer or direct rollover unless the request to transfer money was received prior to the Election Period; and
• The default annuitization option for Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a five year period certain. The default annuitization option for non-Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten year period certain. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date.
The ability to elect the Deferral Option may not be available in every State. The Deferral Option may be cancelled or withdrawn at any time by us without prior notification from us, except that we will not withdraw the option for any Contract Owner who has been offered the option at the beginning of the Election Period preceding the Annuity Commencement Date.
You are not required to elect the Deferral Option and you do not need to take any action if you do not want to elect the Deferral Option.
We encourage you to review the Deferral Option with your tax adviser regarding the tax consequences of electing the Deferral Option.
Please carefully review the Tax Considerations section of the prospectus for additional information.
This Deferral Option will not be appropriate for all Contract Owners, and it may not be in your best interest to elect the Deferral Option.
Other Considerations
• We cannot recommend whether or not the Deferral Option is the right choice for you. Please discuss the merits of the Deferral Option with your Financial Intermediary and tax adviser to be sure that the Deferral Option is suitable for you based on your particular circumstances;
• It is possible that the IRS could characterize the deferral of your annuity commencement date as a deemed exchange of your contract. Therefore, if your contract was issued prior to 1989, you should discuss the possible loss of any grandfathered rights related to your current contract with your tax adviser. In addition, if you elect the Deferral Option for more than one contract in the same year and the IRS were to characterize the deferral of your annuity commencement dates as a deemed exchange of your contracts, your contracts may be aggregated for the purposes of determining the taxability of any future distributions;
• It is possible that the selection of an Annuity Commencement Date at certain advanced ages could result in the Contract not being treated as an annuity for tax purposes; therefore, you should consult with your tax adviser;


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• Whether the advantages of deferring the Annuity Commencement Date outweigh any other option available to you at that time including liquidation or choosing an Annuity Payout Option;
• Whether the advantages of deferring the Annuity Commencement Date outweigh the disadvantages, including the loss of all Death Benefits in excess of Contract Value;
• Whether you have other assets to meet your future income needs;
• Whether you will change your mind. Once you have elected the Deferral Option, you will not have the ability to reinstate the annuitization option in The Hartford’s Principal First rider or reverse any other changes made to your Contract on the original Annuity Commencement Date;
• In your evaluation of the Deferral Option, you should consult with your Financial Intermediary and tax adviser and potentially any Beneficiaries named in the Contract;
• The Deferral Option may not be available in all states, through all Financial Intermediaries or for all contracts;
• Financial Intermediaries do not receive additional compensation if you choose the Deferral Option, but continue to receive existing compensation throughout the deferral period;
• If you choose an Annuity Payout Option, you cannot later elect the Deferral Option; and
• If you elect the Deferral Option, you may choose any then available Annuity Payout Options at or before the Deferred Annuity Commencement Date; however, you cannot elect to defer your Deferred Annuity Commencement Date further. On your Deferred Annuity Commencement Date if you have a Qualified Contract, the default Annuity Payout Option is a Life Annuity with Payments for a Period Certain Payout Option with period certain of five years. If you have a non-Qualified Contract, the default Annuity Payout Option is the Life Annuity with Payments for a Period Certain Payout Option with period certain of ten years. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date.

Annuity Payouts
This section describes what happens when we begin to make regular Annuity Payouts from your Contract. You, as the Contract Owner, should answer five questions:
•
When do you want Annuity Payouts to begin?
•
Which Annuity Payout Option do you want to use?
•
How often do you want the Payee to receive Annuity Payouts?
•
What is the Assumed Investment Return?
•
Do you want Annuity Payouts to be fixed-dollar amount or variable-dollar amount?
Please check with your Registered Representative to select the Annuity Payout Option that best meets your income needs.
As of October 4, 2013 we no longer allow Contract Owners to extend their Annuity Commencement Date even though we may have granted extensions in the past to you or other similarly situated investors.


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On or about February 1, 2016, we will allow eligible Contract Owners to defer their Annuity Commencement Date pursuant to the provisions outlined in the Annuity Commencement Date Deferral Option section.
For Qualified Contracts, if you defer your Annuity Commencement Date, the minimum periods for the Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments for a Period Certain and Payments For a Period Certain Annuity Payout Options will be five years. For non-Qualified Contracts, if you defer your Annuity Commencement Date, the minimum periods for the Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments for a Period Certain and Payments for a Period Certain Annuity Payout Options will be ten years.
For Qualified Contracts, if you defer your Annuity Commencement Date and if, between your original Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments for a Period Certain Payout Option with period certain payments for five years. For non-Qualified Contracts, if you defer your Annuity Commencement Date and if, between your Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments For a Period Certain Payout Option with period certain payments for ten years.
Proof of Survival
The payment of any annuity benefit will be subject to evidence that the Annuitant is alive on the date such payment is otherwise due.
1. When do you want Annuity Payouts to begin?
You selected an Annuity Commencement Date when you purchased your Contract or it can be selected at any time before you begin receiving Annuity Payouts. If the annuity reaches the maximum Annuity Commencement Date, which is the later of the 10th Contract Anniversary or the date the annuitant reaches age 90, (unless you choose the Deferral Option, described above) the Contract will automatically be annuitized. If you purchased your Contract in New York, you must begin Annuity Payouts before your Annuitant’s 91st birthday (unless you choose the Deferral Option, described above). If this Contract was issued to the trustee of a Charitable Remainder Trust, the Annuity Commencement Date is the Annuitant's 100th birthday except in New York and Pennsylvania, where the Annuity Commencement Date is the Annuitant’s 90th birthday.
If you elect the Deferral Option, you may defer your Annuity Commencement Date to the fifteenth day of any month before or including the month of the Annuitant’s 100th birthday. Once elected, in the event the Contingent Annuitant becomes the Annuitant and in the absence of a written election to the contrary, the Deferred Annuity Commencement Date will be the fifteenth day of the month coincident with or next following the Contingent Annuitant’s 100th birthday.
The Annuity Calculation Date is when the amount of your Annuity Payout is determined. This occurs within five Valuation Days before your selected Annuity Commencement Date.
All Annuity Payouts, regardless of frequency, will occur on the same day of the month as the Annuity Commencement Date. After the initial payout, if an Annuity Payout date falls on a Non-Valuation Day, the Annuity Payout is computed on the prior Valuation Day. If the Annuity Payout date does not occur in a given month due to a leap year or months with only 28 days (i.e. the 31st), the Annuity Payout will be computed on the last Valuation Day of the month.
2. Which Annuity Payout Option do you want to use?
Your Contract contains the Annuity Payout Options described below. The Annuity Proceeds Settlement Option is an option that can be elected by the Beneficiary and is described in the “Death Benefit” section. The Hartford’s Principal First Payout Option is available only to Contract Holders who elect The Hartford’s Principal First rider. We may at times offer other Annuity Payout Options. Once we begin to make Annuity Payouts, the Annuity Payout Option cannot be changed.
Life Annuity
We make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would receive only one Annuity Payout if the Annuitant dies after the first payout, two Annuity Payouts if the Annuitant dies after the second payout, and so forth.
Life Annuity with a Cash Refund
We will make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, if the Annuity Payouts already made are less than the Contract Value on the Annuity Commencement Date minus any Premium Tax, the remaining value will be paid to the Beneficiary. The remaining value is equal to the Contract Value minus any Premium Tax minus the Annuity Payouts already made. This option is only available for Annuity Payouts using the 5% Assumed Investment Return or fixed dollar amount Annuity Payouts.


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Life Annuity with Payments for a Period Certain
We will make Annuity Payouts as long as the Annuitant is living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus the Annuitant’s age. If the Annuitant dies before the guaranteed number of years have passed, then the Beneficiary may elect to continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum.
Joint and Last Survivor Life Annuity
We will make Annuity Payouts as long as the Annuitant and Joint Annuitant are living. When one Annuitant dies, we continue to make Annuity Payouts until that second Annuitant dies. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that:
•
Remain the same at 100%, or
•
Decrease to 66.67%, or
•
Decrease to 50%.
For variable Annuity Payouts, these percentages represent Annuity Units; for fixed Annuity Payouts, they represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive.
Joint and Last Survivor Life Annuity with Payments for a Period Certain
We will make Annuity Payouts as long as either the Annuitant or Joint Annuitant are living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus your younger Annuitant’s age. If the Annuitant and the Joint Annuitant both die before the guaranteed number of years have passed, then the Beneficiary may continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum.
When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that:
•
Remain the same at 100%, or
•
Decrease to 66.67%, or
•
Decrease to 50%.
For variable dollar amount Annuity Payouts, these percentages represent Annuity Units. For fixed dollar amount Annuity Payouts, these percentages represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive.
Payments for a Period Certain
We agree to make payments for a specified time. The minimum period that you can select is 5 years. The maximum period that you can select is 100 years minus your Annuitant’s age. If, at the death of the Annuitant, Annuity Payouts have been made for less than the time period selected, then the Beneficiary may elect to continue the remaining Annuity Payouts or receive the Commuted Value in one sum.
The Hartford’s Principal First Payout Option
If you elected The Hartford’s Principal First and later decide to annuitize your Contract, you may choose another Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Fixed Annuity Payout Option, called The Hartford’s Principal First Payout Option, Hartford will pay a fixed dollar amount for a specific number of years (“Payout Period”). If you, the joint Contract Owner or the Annuitant should die before the Payout Period is complete the remaining payments will be made to the Beneficiary. The Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount.
If you elect the Deferral Option, The Hartford’s Principal First Payout Option is not available.
Important Information:
•
You cannot Surrender your Contract once Annuity Payouts begin, unless you have selected Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments For a Period Certain, or Payments For a Period Certain variable dollar amount Annuity Payout Option.


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•
For qualified Contracts, if you elect an Annuity Payout Option with a Period Certain, the guaranteed number of years must be less than the life expectancy of the Annuitant at the time the Annuity Payouts begin. We compute life expectancy using the IRS mortality tables.
•
Automatic Annuity Payouts — If you do not elect an Annuity Payout Option, Annuity Payouts will automatically begin on the Annuity Commencement Date under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten-year period certain. Automatic Annuity Payouts will be based on the investment allocation of your Account in effect on the Annuity Commencement Date. Automatic Annuity Payouts will be based on an Assumed Investment Return equal to 5%. For Qualified Contracts, if you defer your Annuity Commencement Date and if, between your Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us what Annuity Payout Option you want, we will pay you under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a five year period certain.
3. How often do you want the Payee to receive Annuity Payouts?
In addition to selecting an Annuity Commencement Date and an Annuity Payout Option, you must also decide how often you want the Payee to receive Annuity Payouts. You may choose to receive Annuity Payouts:
•
monthly,
•
quarterly,
•
semi-annually, or
•
annually.
Once you select a frequency, it cannot be changed. If you do not make a selection, the Payee will receive monthly Annuity Payouts. You must select a frequency that results in an Annuity Payout of at least $50. If the amount falls below $50, we have the right to change the frequency to bring the Annuity Payout up to at least $50. For Contracts issued in New York, the minimum monthly Annuity Payout is $20.
4. What is the Assumed Investment Return?
The Assumed Investment Return (“AIR”) is the investment return you select before we start to make Annuity Payouts. It is a critical assumption for calculating variable dollar amount Annuity Payouts. The first Annuity Payout will be based upon the AIR. The remaining Annuity Payouts will fluctuate based on the performance of the underlying Funds.
Subject to the approval of your State, you can select one of three AIRs: 3%, 5% or 6%. The greater the AIR, the greater the initial Annuity Payout. But a higher AIR may result in smaller potential growth in future Annuity Payouts when the Sub-Accounts earn more than the AIR. On the other hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity Payouts have the potential to be greater when the Sub-Accounts earn more than the AIR.
For example, if the second monthly Annuity Payout is the same as the first, the Sub-Accounts earned exactly the same return as the AIR. If the second monthly Annuity Payout is more than the first, the Sub-Accounts earned more than the AIR. If the second Annuity Payout is less than the first, the Sub-Account earned less than the AIR.
Level variable dollar amount Annuity Payouts would be produced if the investment returns remained constant and equal to the AIR. In fact, Annuity Payouts will vary up or down as the investment rate varies up or down from the AIR. The degree of the variation depends on the AIR you select.
5. Do you want Annuity Payouts to be Fixed-Dollar Amount or Variable-Dollar Amount?
You may choose an Annuity Payout Option with fixed dollar amounts or variable dollar amounts, depending on your income needs.
Fixed Dollar Amount Annuity Payouts — Once a fixed dollar amount Annuity Payout begins, you cannot change your selection to receive variable dollar amount Annuity Payouts. You will receive equal fixed dollar amount Annuity Payouts throughout the Annuity Payout period. Fixed dollar amount Annuity Payout amounts are determined by multiplying the Contract Value, minus any applicable Premium Taxes, by an annuity rate. The annuity rate is set by us and is not less than the rate specified in the Fixed Payment Annuity tables in your Contract.
Variable Dollar Amount Annuity Payouts — Once a variable dollar amount Annuity Payout begins, you cannot change your selection to receive a fixed dollar amount Annuity Payout. A variable dollar amount Annuity Payout is based on the investment performance of the Sub-Accounts. The variable dollar amount Annuity Payouts may fluctuate with the performance of the underlying Funds. To begin making variable dollar amount Annuity Payouts, we convert the first Annuity Payout amount to a set number of Annuity Units and then price those units to determine the Annuity Payout amount. The number of Annuity Units that determines the Annuity Payout amount remains fixed unless you transfer units between Sub-Accounts.


34
 

The dollar amount of the first variable Annuity Payout depends on:
•
the Annuity Payout Option chosen,
•
the Annuitant’s attained age and gender (if applicable), and,
•
the applicable annuity purchase rates based on the 1983a
Individual Annuity Mortality table
•
the Assumed Investment Return
The total amount of the first variable dollar amount Annuity Payout is determined by dividing the Contract Value minus any applicable Premium Taxes, by $1,000 and multiplying the result by the payment factor defined in the Contract for the selected Annuity Payout Option.
The dollar amount of each subsequent variable dollar amount Annuity Payout is equal to the total of Annuity Units for each Sub-Account multiplied by Annuity Unit Value of each Sub-Account.
The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to the Accumulation Unit Value Net Investment Factor for the current Valuation Period multiplied by the Annuity Unit Factor, multiplied by the Annuity Unit Value for the preceding Valuation Period. The Annuity Unit Factor offsets the AIR used to calculate your first variable dollar amount Annuity Payout. The Annuity Unit Factor for a 3% AIR is 0.999919. The Annuity Unit Factor for a 5% AIR is 0.999866. The Annuity Unit Factor for a 6% AIR is 0.999840.
Combination Annuity Payouts — You may choose to receive a combination of fixed dollar amount and variable dollar amount Annuity Payouts as long as they total 100% of your Annuity Payout. For example, you may choose to use 40% fixed dollar amount and 60% variable dollar amount to meet your income needs. Combination annuity payouts are not available during the first two Contract Years.
Transfer of Annuity Units — After the Annuity Calculation Date, you may transfer dollar amounts of Annuity Units from one Sub-Account to another. On the day you make a transfer, the dollar amounts are equal for both Sub-Accounts and the number of Annuity Units will be different. We will transfer the dollar amount of your Annuity Units the day we receive your written request if received before the close of the New York Stock Exchange. Otherwise, the transfer will be made on the next Valuation Day. All Sub-Account transfers must comply with our Sub-Account transfer restriction policies. For more information on Sub-Account transfer restrictions please see the sub-section entitled “Can I transfer from one Sub-Account to another?” under the section entitled “The Contract.”
Other Programs Available
We may discontinue, modify or amend any of these Programs or any other Programs we establish. Any change other than termination of a Program will not affect Contract Owners currently enrolled in the Program. There is no additional charge for these programs. If you are enrolled in any of these programs while a fund merger, substitution or liquidation takes place, unless otherwise noted in any communication from us; your Contract Value invested in such underlying Fund will be transferred automatically to the designated surviving Fund in the case of mergers and any available Money Market Fund in the case of Fund liquidations. Your enrollment instructions will be automatically updated to reflect the surviving Fund or a Money Market Fund for any continued and future investments.
InvestEase® Program — InvestEase is an electronic transfer program that allows you to have money automatically transferred from your checking or savings account, and invested in your Contract. It is available for Premium Payments made after your initial Premium Payment. The minimum amount for each transfer is $50. You can elect to have transfers occur either monthly or quarterly, and they can be made into any Account available in your Contract.
Static Asset Allocation Models
This feature allows you to select an asset allocation model of Funds based on several potential factors including your risk tolerance, time horizon, investment objectives, or your preference to invest in certain funds or fund families. Based on these factors, you can select one of several asset allocation models, with each specifying percentage allocations among various Funds available under your Contract. Asset allocation models can be based on generally accepted investment theories that take into account the historic returns of different asset classes (e.g., equities, bonds or cash) over different time periods, or can be based on certain potential investment strategies that could possibly be achieved by investing in particular funds or fund families and are not based on such investment theories. Please see Appendix VI for models that are available to you.


35
 

If you choose to participate in one of these asset allocation models, you must invest all of your Premium Payment into one model. You may invest in an asset allocation model through the Dollar Cost Averaging Program where the Fixed Accumulation Feature is the source of the assets to be invested in the asset allocation model you have chosen. You can also participate in these asset allocation models while enrolled in the Automatic Income Program.
You may participate in only one asset allocation model at a time. Asset allocation models cannot be combined with other asset allocation models or with individual sub-account elections. You can switch asset allocation models up to twelve times per year. Your ability to elect or switch into and between asset allocation models may be restricted based on fund abusive trading restrictions.
You may be required to invest in an acceptable asset allocation model as a condition for electing and maintaining certain guaranteed minimum withdrawal benefits.
Your investments in an asset allocation model will be rebalanced quarterly to reflect the model’s original percentages and you may cancel your model at any time.
We have no discretionary authority or control over your investment decisions. These asset allocation models are based on then available Funds and do not include the Fixed Accumulation Feature. We make available educational information and materials (e.g., risk tolerance questionnaire, pie charts, graphs, or case studies) that can help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice as to what asset allocation model may be appropriate for you.
While we will not alter allocation percentages used in any asset allocation model, allocation weightings could be affected by mergers, liquidations, fund substitutions or closures. Individual availability of these models is subject to fund company restrictions. Please refer to What Restrictions Are There on your Ability to Make a Sub-Account Transfer? for more information.
You will not be provided with information regarding periodic updates to the Funds and allocation percentages in the asset allocation models, and we will not reallocate your Account Value based on those updates. Information on updated asset allocation models may be obtained by contacting your Registered Representative. If you wish to update your asset allocation model, you may do so by terminating your existing model and re-enrolling into a new one. Investment alternatives other than these asset allocation models are available that may enable you to invest your Contract Value with similar risk and return characteristics. When considering an asset allocation model for your individual situation, you should consider your other assets, income and investments in addition to this annuity.
Automatic Income Program — The Automatic Income Program allows you to Surrender a percentage of your total Premium Payments each Contract Year. You can Surrender from the Accounts you select systematically on a monthly, quarterly, semiannual, or annual basis. The minimum amount of each Surrender is $100. Amounts taken under this Program if received prior to age 59½, may have adverse tax consequences, including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Please see Appendix Tax for more information regarding the tax consequences associated with your Contract.
Asset Allocation Program — Asset Allocation is a program that allows you to choose an allocation for your Sub-Accounts to help you reach your investment goals. The Contract offers static model allocations with pre-selected Sub-Accounts and percentages that have been established for each type of investor ranging from conservative to aggressive. Over time, Sub-Account performance may cause your Contract’s allocation percentages to change, but under the Asset Allocation Program, your Sub-Account allocations are rebalanced to the percentages in the current model you have chosen. You can transfer freely between allocation models up to twelve times per year. You can only participate in one model at a time.
Asset Rebalancing — Asset Rebalancing is another type of asset allocation program in which you customize your Sub-Accounts to meet your investment needs. You select the Sub-Accounts and the percentages you want allocated to each Sub-Account. Based on the frequency you select, your model will automatically rebalance to the original percentages chosen. You can transfer freely between models up to twelve times per year. You can only participate in one asset rebalancing model at a time.
Dollar Cost Averaging Programs — We currently offer two different types of Dollar Cost Averaging Programs. If you enroll, you may select either the Fixed Amount DCA Program or the Earnings/Interest DCA Program. The Fixed Amount DCA Program allows you to regularly transfer an amount you select from any Sub-Account into a different Sub-Account. The Earnings/Interest DCA Program allows you to regularly transfer earnings from a Sub-Account into a different Sub-Account. For either Program, you may select transfers on a monthly or quarterly basis, but you must at least make three transfers during the Program. The Fixed Amount DCA Program begins 15 days after the Contract Anniversary the month after you enroll in the Program. The Earnings/Interest DCA Program begins at the end of the length of the transfer period you selected plus two business days. That means if you select a monthly transfer, your Earnings/Interest DCA Program


36
 

will begin one month plus two business days after your enrollment Dollar Cost Averaging Programs do not guarantee a profit or protect against investment losses.
Other Program considerations
•
You may terminate your enrollment in any Program (other than Dollar Cost Averaging Programs) at any time.
•
We may discontinue, modify or amend any of these Programs at any time. We will automatically and unilaterally amend your enrollment instructions if:
•any Fund is merged or substituted into another Fund — then your allocations will be directed to the surviving Fund;
•any Fund is liquidated — then your allocations will be directed to any available money market Fund; or
•any Fund closes to new investments — then your allocations to that Fund will be pro-rated among remaining available Funds.
You may always provide us with updated instructions following any of these events.
•
Continuous or periodic investment neither insures a profit nor protects against a loss in declining markets. Because these Programs involve continuous investing regardless of fluctuating price levels, you should carefully consider your ability to continue investing through periods of fluctuating prices.
•
These Programs may be adversely affected by Fund trading policies.
Other Information
Assignment — A non-qualified Contract may be assigned. We must be properly notified in writing of an assignment. Any Annuity Payouts or Surrenders requested or scheduled before we record an assignment will be made according to the instructions we have on record. We are not responsible for determining the validity of an assignment. Assigning a non-qualified Contract may require the payment of income taxes and certain penalty taxes. Please consult a qualified tax adviser before assigning your Contract.
A qualified Contract may not be transferred or otherwise assigned, unless allowed by applicable law.
Contract Modification — The Annuitant may not be changed. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice.
We may modify the Contract, but no modification will affect the amount or term of any Contract unless a modification is required to conform the Contract to applicable federal or state law. No modification will affect the method by which Contract Values are determined.
Speculative Investing — Do not purchase this Contract if you plan to use it, or any of its riders, for speculation, arbitrage, viatification, or any other type of collective investment scheme. When you purchased this Contract you represented and warranted that you would not use this Contract, or any of its riders, for speculation, arbitrage, viatification, or any other type of collective investment scheme.
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, HSD is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The principal business address of HSD is the same as ours. Hartford Life Distributors, LLC., a subsidiary of Hartford Life Insurance Company, provides marketing support for us.
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, 2014. Contracts were sold by individuals who were appointed by us as insurance agents and who were registered representatives of Financial Intermediaries (“Registered Representatives”).
The Core (the version of this Contract that we call “Core” has no specific marketing name) and Edge Contracts may have been sold directly to the following individuals free of any sales commission: (1) current or retired officers, directors, trustees and employees (and their families) of our ultimate corporate parent and affiliates; and (2) employees and Registered Representatives (and their families) of Financial Intermediaries. If applicable, we credited the Contract with a credit of 5.0% of the Premium
Payment. This additional percentage of Premium Payment in no way affects current or future charges, rights, benefits or account values of other Contract Owners.


37
 

We list below types of arrangements that helped 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 Intermediary’s 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
Upfront commissions paid to Financial Intermediaries generally range from 1% to up to 6.5% 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.
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 FINRA, Financial Intermediary and insurance rules, we (or our affiliates) also pay the following types of fees to among other things encourage the sale of this Contract and/or to provide inforce Contract Owner support. These additional payments could create an incentive for your investment professional, 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. In addition, some Financial Intermediaries may make a profit from fees received for inforce Contract Owner support.
Additional
Payment Type
What it’s used for
Access
Access to investment professionals 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 investment professionals) receive prizes such as travel awards, merchandise and recognition; client generation expenses.
Marketing Expense
Allowance
Pay Fund related parties for wholesaler support, training and marketing activities for certain Funds.
Inforce Contract Owner
Support
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.
Training
Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training.
Volume
Pay for the overall volume of their sales or the amount of money investing in our products.
As of December 31, 2015, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities:
AIG Advisors Group, Inc., (FSC Securities Corporation, Royal Alliance Assoc., Inc., Sagepoint Financial), Cambridge Investment Research Inc., Cetera Financial Group (Cetera Financial Specialists, LLC, Cetera Investment Services, LLC, Cetera Advisors, LLC, Cetera Advisor Networks, LLC), CCO Investment Services Corp., Citigroup Global Markets, Inc., Commonwealth Financial


38
 

Network, Crown Capital Securities, LLP, Edward D. Jones & Co., LLP, First Allied Securities, Inc., First Tennessee Brokerage Inc., Frost Brokerage Services, Inc., H.D. Vest Investment Services, Huntington Investment Company, ING Financial Partners, Investacorp, Inc., JJB Hilliard Lyons, Janney Montgomery Scott, Inc., Lincoln Financial Advisors Corp., LPL Financial Corporation, Merrill Lynch Pierce Fenner & Smith, Morgan Stanley Smith Barney, LLC, (various divisions and affiliates), Raymond James & Associates, Inc., Raymond James Financial Services, RBC Capital Markets., Robert W. Baird & Co. Inc., Securities America, Inc., U.S. Bancorp Investments, Inc., UBS Financial Services, Inc., Wells Fargo Advisors LLC (various divisions), Woodbury Financial Services, Inc.
Inclusion on this list does not imply that these sums necessarily constitute “special cash compensation” as defined by FINRA 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 investment professional is or should be included in any such listing.
As of December 31, 2015, 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: American Variable Insurance Series & Capital Research and Management Company & Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc. 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 the fiscal year ended December 31, 2015, Additional Payments did not in the aggregate exceed approximately $17.9 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.04% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $28,792 or approximately 0.14% of the Premium Payments invested in a particular Fund during this period.
Legal Proceedings
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. Certain of the lawsuits and legal actions the Company is involved in assert claims for substantial amounts. While it is not possible to predict with certainty the ultimate outcome of any pending or future case, legal proceeding or regulatory action, we do not expect the ultimate result of any of these actions to result in a material adverse effect on the Company or its Separate Accounts. 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 results of operations or cash flows in particular quarterly or annual periods.
More Information
You may call your Registered Representative if you have any questions or write or call us at the address below:

Hartford Life Insurance Company/Hartford Life and Annuity Insurance Company
PO Box 14293
Lexington, KY 40512-4293.
Telephone: (800) 862-6668 (Contract Owners)
(800) 862-7155 (Registered Representatives)



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Table of Contents to Statement of Additional Information
General Information
Safekeeping of Assets
Experts
Non-Participating
Misstatement of Age or Sex
Principal Underwriter
Performance Related Information
Total Return for all Sub-Accounts
Yield for Sub-Accounts
Money Market Sub-Accounts
Additional Materials
Performance Comparisons
Accumulation Unit Values
Financial Statement


APP TAX-1
 
 
 

Appendix Tax
Federal Tax Considerations
A. Introduction
The following summary of tax rules does not provide or constitute any tax advice. It provides only a general discussion of certain of the expected federal income tax consequences with respect to amounts contributed to, invested in or received from a Contract, based on our understanding of the existing provisions of the Internal Revenue Code (“Code”), Treasury Regulations thereunder, and public interpretations thereof by the IRS (e.g., Revenue Rulings, Revenue Procedures or Notices) or by published court decisions. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss state, local or foreign tax consequences. The term United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships, trust or estates that are subject to United States federal income tax, regardless of the source of their income. See “Nonresident Aliens and Foreign Entities” below regarding annuity purchases by, or payments to, non-U.S. Persons. Pursuant to IRS Circular 230, you are hereby notified of the following: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor. This prospectus is not intended to provide tax, accounting or legal advice. Please consult your tax accountant or attorney prior to finalizing or implementing any tax or legal strategy or for any tax, account or legal advice concerning your situation.
This summary has been prepared by us after consultation with tax counsel, but no opinion of tax counsel has been obtained. We do not make any guarantee or representation regarding any tax status (e.g., federal, state, local or foreign) of any Contract or any transaction involving a Contract. In addition, there is always a possibility that the tax treatment of an annuity contract could change by legislation or other means (such as regulations, rulings or judicial decisions). Moreover, it is always possible that any such change in tax treatment could be made retroactive (that is, made effective prior to the date of the change). Accordingly, you should consult a qualified tax adviser for complete information and advice before purchasing a Contract.
In addition, although this discussion addresses certain tax consequences if you use the Contract in various arrangements, including Charitable Remainder Trusts, tax-qualified retirement arrangements, deferred compensation plans, split-dollar insurance arrangements, or other employee benefit arrangements, this discussion is not exhaustive. The tax consequences of any such arrangement may vary depending on the particular facts and circumstances of each individual arrangement and whether the arrangement satisfies certain tax qualification or classification requirements. In addition, the tax rules affecting such an arrangement may have changed recently, e.g., by legislation or regulations that affect compensatory or employee benefit arrangements. Therefore, if you are contemplating the use of a Contract in any arrangement the value of which to you depends in part on its tax consequences, you should consult a qualified tax adviser regarding the tax treatment of the proposed arrangement and of any Contract used in it.
As used in the following sections addressing “Federal Tax Considerations,” the term “spouse” means the person to whom you are legally married, as determined under federal tax law. This may include opposite or same-sex spouses, but does not include those in domestic partnerships or civil unions which are not recognized as married for federal tax purposes. You are encouraged to consult with an accountant, lawyer or other qualified tax advisor about your own situation.
The federal, as well as state and local, tax laws and regulations require the Company to report certain transactions with respect to Your contract (such as an exchange of or a distribution from the contract) to the Internal Revenue Service and state and local tax authorities, and generally to provide You with a copy of what was reported. This copy is not intended to supplant Your own records. It is Your responsibility to ensure that what You report to the Internal Revenue Service and other relevant taxing authorities on your income tax returns is accurate based on Your books and records. You should review whatever is reported to the taxing authorities by the Company against your own records, and in consultation with your own tax advisor, and should notify the Company if You find any discrepancies in case corrections have to be made.
THE DISCUSSION SET FORTH BELOW IS INCLUDED FOR GENERAL PURPOSES ONLY. SPECIAL TAX RULES MAY APPLY WITH RESPECT TO CERTAIN SITUATIONS THAT ARE NOT DISCUSSED HEREIN. EACH POTENTIAL PURCHASER OF A CONTRACT IS ADVISED TO CONSULT WITH A QUALIFIED TAX ADVISER AS TO THE CONSEQUENCES OF ANY AMOUNTS INVESTED IN A CONTRACT UNDER APPLICABLE FEDERAL, STATE, LOCAL OR FOREIGN TAX LAW.
B. Taxation of the Company and the Separate Account
The Separate Account is taxed as part of the Company 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


APP TAX-2
 
 
 

Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. 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. The Company 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 the Company is the owner of the assets from which the tax benefits are derived.
C. Taxation of Annuities — General Provisions Affecting Contracts Not Held in Tax-Qualified Retirement Plans
Section 72 of the Code governs the taxation of annuities in general.
1. 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),
•
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,
•
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.
For tax years beginning after December 31, 2012, estates and trusts with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the estate’s or trust’s adjusted gross income for the taxable year.
2. Other Contract Owners (Natural Persons).
A Contract Owner is not taxed on increases in the value of the Contract until an amount is received or deemed received, e.g., in the form of a lump sum payment (full or partial value of a Contract) or as Annuity payments under the settlement option elected.
The provisions of Section 72 of the Code concerning distributions are summarized briefly below. Also summarized are special rules affecting distributions from Contracts obtained in a tax-free exchange for other annuity contracts or life insurance contracts which were purchased prior to August 14, 1982. For tax years beginning after December 31, 2012, individuals with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the individual’s modified adjusted gross income for the taxable year.
a. Amounts Received as an Annuity
Contract payments made periodically at regular intervals over a period of more than one full year, such that the total amount payable is determinable from the start (“amounts received as an annuity”) are includable in gross income to the extent the payments exceed the amount determined by the application of the ratio of the allocable “investment in the contract” to the total amount of the payments to be made after the start of the payments (the “exclusion ratio”) under Section 72 of the Code. Total premium payments less amounts received which were not includable in gross income equal the “investment in the contract.” The start of the payments may be the Annuity Commencement Date, or may be an annuity starting date


APP TAX-3
 
 
 

assigned should any portion less than the full Contract be converted to periodic payments from the Contract (Annuity Payouts).
i.
When the total of amounts excluded from income by application of the exclusion ratio is equal to the allocated investment in the contract for the Annuity Payout, any additional payments (including surrenders) will be entirely includable in gross income.
ii.
To the extent that the value of the Contract (ignoring any surrender charges except on a full surrender) exceeds the “investment in the contract,” such excess constitutes the “income on the contract”. It is unclear what value should be used in determining the “income on the contract.” We believe that the “income on the contract” does not include some measure of the value of certain future cash-value type benefits, but the IRS could take a contrary position and include such value in determining the “income on the contract”.
iii.
Under Section 72(a)(2) of the Code, if any amount is received as an annuity (i.e., as one of a series of periodic payments at regular intervals over more than one full year) for a period of 10 or more years, or during one or more lives, under any portion of an annuity, endowment, or life insurance contract, then that portion of the contract shall be treated as a separate contract with its own annuity starting date (otherwise referred to as a partial annuitization of the contract). This assigned annuity starting date for the new separate contract can be different from the original Annuity Commencement Date for the Contract. Also, for purposes of applying the exclusion ratio for the amounts received under the partial annuitization, the investment in the contract before receiving any such amounts shall be allocated pro rata between the portion of the Contract from which such amounts are received as an annuity and the portion of the Contract from which amounts are not received as an annuity. These provisions apply to payments received in taxable years beginning after December 31, 2010.
b. Amounts Not Received as an Annuity
i.
To the extent that the “cash value” of the Contract (ignoring any surrender charges except on a full surrender) exceeds the “investment in the contract,” such excess constitutes the “income on the contract.”
ii.
Any amount received or deemed received prior to the Annuity Commencement Date (e.g., upon a withdrawal or partial surrender), which is non-periodic and not part of a partial annuitization, is deemed to come first from any such “income on the contract” and then from “investment in the contract,” and for these purposes such “income on the contract” is computed by reference to the aggregation rule described in subparagraph 2.c. below. As a result, any such amount received or deemed received (1) shall be includable in gross income to the extent that such amount does not exceed any such “income on the contract,” and (2) shall not be includable in gross income to the extent that such amount does exceed any such “income on the contract.” If at the time that any amount is received or deemed received there is no “income on the contract” (e.g., because the gross value of the Contract does not exceed the “investment in the contract,” and no aggregation rule applies), then such amount received or deemed received will not be includable in gross income, and will simply reduce the “investment in the contract.”
iii.
Generally, non-periodic amounts received or deemed received after the Annuity Commencement Date (or after the assigned annuity starting date for a partial annuitization) are not entitled to any exclusion ratio and shall be fully includable in gross income. However, upon a full surrender after such date, only the excess of the amount received (after any surrender charge) over the remaining “investment in the contract” shall be includable in gross income (except to the extent that the aggregation rule referred to in the next subparagraph 2.c. may apply).
iv.
The receipt of any amount as a loan under the Contract or the assignment or pledge of any portion of the value of the Contract shall be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.a.
v.
In general, the transfer of the Contract, without full and adequate consideration, will be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.a. This transfer rule does not apply, however, to certain transfers of property between Spouses or incident to divorce.
vi.
In general, any amount actually received under the Contract as a Death Benefit, including an optional Death Benefit, if any, will be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.
c. Aggregation of Two or More Annuity Contracts.
Contracts issued after October 21, 1988 by the same insurer (or affiliated insurer) to the same owner within the same calendar year (other than certain contracts held in connection with tax-qualified retirement arrangements) will be aggregated and treated as one annuity contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. An annuity contract received in a tax-free exchange for another annuity contract or life insurance contract may be treated as a new contract for this purpose. We believe that for any Contracts subject to such aggregation,


APP TAX-4
 
 
 

the values under the Contracts and the investment in the contracts will be added together to determine the taxation under subparagraph 2.a., above, of amounts received or deemed received prior to the Annuity Commencement Date. Withdrawals will be treated first as withdrawals of income until all of the income from all such Contracts is withdrawn. In addition, the Treasury Department has specific authority under the aggregation rules in Code Section 72(e)(12) to issue regulations to prevent the avoidance of the income-out-first rules for non-periodic distributions through the serial purchase of annuity contracts or otherwise. As of the date of this prospectus, there are no regulations interpreting these aggregation provisions.
d. 10% Penalty Tax — Applicable to Certain Withdrawals and Annuity Payments.
i.
If any amount is received or deemed received on the Contract (before or after the Annuity Commencement Date), the Code applies a penalty tax equal to ten percent of the portion of the amount includable in gross income, unless an exception applies.
ii.
The 10% penalty tax will not apply to the following distributions:
1.
Distributions made on or after the date the recipient has attained the age of 59½.
2.
Distributions made on or after the death of the holder or where the holder is not an individual, the death of the primary annuitant.
3.
Distributions attributable to a recipient becoming disabled.
4.
A distribution that is part of a scheduled series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the recipient (or the joint lives or life expectancies of the recipient and the recipient’s designated Beneficiary).
5.
Distributions made under certain annuities issued in connection with structured settlement agreements.
6.
Distributions of amounts which are allocable to the “investment in the contract” prior to August 14, 1982 (see next subparagraph e.).
7.
Distributions purchased by an employer upon termination of certain qualified plans and held by the employer until the employee separates from service.
If the taxpayer avoids this 10% penalty tax by qualifying for the substantially equal periodic payments 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 taxpayer has reached age 59½ and (b) 5 years have elapsed since the first of these periodic payments.
e. Special Provisions Affecting Contracts Obtained Through a Tax-Free Exchange of Other Annuity or Life Insurance Contracts Purchased Prior to August 14, 1982.
If the Contract was obtained by a tax-free exchange of a life insurance or annuity Contract purchased prior to August 14, 1982, then any amount received or deemed received prior to the Annuity Commencement Date shall be deemed to come (1) first from the amount of the “investment in the contract” prior to August 14, 1982 (“pre-8/14/82 investment”) carried over from the prior Contract, (2) then from the portion of the “income on the contract” (carried over to, as well as accumulating in, the successor Contract) that is attributable to such pre-8/14/82 investment, (3) then from the remaining “income on the contract” and (4) last from the remaining “investment in the contract.” As a result, to the extent that such amount received or deemed received does not exceed such pre-8/14/82 investment, such amount is not includable in gross income. In addition, to the extent that such amount received or deemed received does not exceed the sum of (a) such pre-8/14/82 investment and (b) the “income on the contract” attributable thereto, such amount is not subject to the 10% penalty tax. In all other respects, amounts received or deemed received from such post-exchange Contracts are generally subject to the rules described in this subparagraph e.
f. Required Distributions
i.
Death of Contract Owner or Primary Annuitant
Subject to the alternative election or Spouse beneficiary provisions in ii or iii below:
1.
If any Contract Owner dies on or after the Annuity Commencement Date and before the entire interest in the Contract has been distributed, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used as of the date of such death;
2.
If any Contract Owner dies before the Annuity Commencement Date, the entire interest in the Contract shall be distributed within 5 years after such death; and


APP TAX-5
 
 
 

3.
If the Contract Owner is not an individual, then for purposes of 1. or 2. above, the primary annuitant under the Contract shall be treated as the Contract Owner, and any change in the primary annuitant shall be treated as the death of the Contract Owner. The primary annuitant is the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the Contract.
ii.
Alternative Election to Satisfy Distribution Requirements
If any portion of the interest of a Contract Owner described in i. above is payable to or for the benefit of a designated beneficiary, such beneficiary may elect to have the portion distributed over a period that does not extend beyond the life or life expectancy of the beneficiary. Such distributions must begin within a year of the Contract Owner’s death.
iii.
Spouse Beneficiary
If any portion of the interest of a Contract Owner is payable to or for the benefit of his or her Spouse, and the Annuitant or Contingent Annuitant is living, such Spouse shall be treated as the Contract Owner of such portion for purposes of section i. above. This Spousal Contract continuation shall apply only once for this Contract.
iv.
Civil Union or Domestic Partner
Upon the death of the Contract Owner prior to the Annuity Commencement Date, if the designated beneficiary is the surviving civil union or domestic partner of the Contract Owner, rather than the spouse of the Contract Owner, then such designated beneficiary is not permitted to continue the Contract as the succeeding Contract Owner. A designated beneficiary who is a same sex spouse will be permitted to continue the Contract as the succeeding Contract Owner.
g. Addition of Rider or Material Change.
The addition of a rider to the Contract, or a material change in the Contract’s provisions, could cause it to be considered newly issued or entered into for tax purposes, and thus could cause the Contract to lose certain grandfathered tax status. Please contact your tax adviser for more information.
h. Partial Exchanges.
The IRS, in Rev. Rul. 2003-76, confirmed that the owner of an annuity contract can direct its insurer to transfer a portion of the contract’s cash value directly to another annuity contract (issued by the same insurer or by a different insurer), and such a direct transfer can qualify for tax-free exchange treatment under Code Section 1035 (a “partial exchange”).
The IRS issued additional guidance, Rev. Proc. 2011-38, that addresses partial exchanges. Rev. Proc. 2011-38 modifies and supersedes Rev. Proc. 2008-24 and applies to the direct transfer of a portion of the cash surrender value of an existing annuity contract for a second annuity contract, regardless of whether the two annuity contracts are issued by the same or different companies and is effective for transfers that are completed on or after October 24, 2011. The Rev. Proc. does not apply to transactions to which the rules for partial annuitization under Code Section 72(a)(2) apply.
Under Rev. Proc. 2011-38, a transfer within the scope of the Rev. Proc. will be treated as a tax-free exchange under Section 1035 if no amount, other than an amount received as an annuity for a period of 10 years or more or during one or more lives, is received under either the original contract or the new contract during the 180 days beginning on the date of the transfer (in the case of a new contract, the date the contract is placed in-force). A subsequent direct transfer of all or a portion of either contract is not taken into account for purposes of this characterization if the subsequent transfer qualifies (or is intended to qualify) as a tax-free exchange under Code Section 1035.
If a transfer falls within the scope of the Rev. Proc. but is not described above (for example - if a distribution is made from either contract within the 180 day period), the transfer will be characterized in a manner consistent with its substance, based on general tax principles and all the facts and circumstances. The IRS will not require aggregation (under Code Section 72(e)(12)) of an original, preexisting contract with a second contract that is the subject of a tax-free exchange, even if both contracts are issued by the same insurance company, but will instead treat the contracts as separate annuity contracts. The applicability of the IRS’s partial exchange guidance to the splitting of an annuity contract is not clear. You should consult with a qualified tax adviser as to potential tax consequences before attempting any partial exchange or split of annuity contracts.
3. Diversification Requirements.
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 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:


APP TAX-6
 
 
 

•
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,
•
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 make adjustments or pay such amounts as may be required by the IRS for the period during which the diversification requirements were not met.
Fund shares may also be sold to tax-qualified plans pursuant to an exemptive order and applicable tax laws. If Fund shares are sold to non-qualified plans, or to tax-qualified plans that later lose their tax-qualified status, the affected Funds may fail the diversification requirements of Code Section 817(h), which could have adverse tax consequences for Contract Owners with premiums allocated to affected Funds. In order to prevent a Fund diversification failure from such an occurrence, the Company obtained a private letter ruling (“PLR”) from the IRS. As long as the Funds comply with certain terms and conditions contained in the PLR, Fund diversification will not be prevented if purported tax-qualified plans invest in the Funds. The Company and the Funds will monitor the Funds’ compliance with the terms and conditions contained in the PLR.
4. 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 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 life insurance contracts.
Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, indicates that, where interests in a partnership offered in an insurer’s separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such interests can be purchased directly by the general public or others without going through such a variable contract), such “public availability” means that such interests 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 interests 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.
Rev. Rul. 2003-91 indicates 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 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, although the owner of a Contract has more than 20 fund choices, 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.
D. Federal Income Tax Withholding
The portion of an amount received under a Contract that is taxable gross income to the Payee is also subject to federal income tax withholding, pursuant to Code Section 3405, which requires the following:


APP TAX-7
 
 
 

1.
Non-Periodic Distributions. The portion of a non-periodic distribution that is includable in gross income is subject to federal income tax withholding unless an individual elects not to have such tax withheld (“election out”). We will provide such an “election out” form at the time such a distribution is requested. If the necessary “election out” form is not submitted to us in a timely manner, generally we are required to withhold 10 percent of the includable amount of distribution and remit it to the IRS.
2.
Periodic Distributions (payable over a period greater than one year). The portion of a periodic distribution that is includable in gross income is generally subject to federal income tax withholding as if the Payee were a married individual claiming 3 exemptions, unless the individual elects otherwise. An individual generally may elect out of such withholding, or elect to have income tax withheld at a different rate, by providing a completed election form. We will provide such an election form at the time such a distribution is requested. If the necessary “election out” forms are not submitted to us in a timely manner, we are required to withhold tax as if the recipient were married claiming 3 exemptions, and remit this amount to the IRS.
Generally no “election out” is permitted if the distribution is delivered outside the United States and any possession of the United States. Regardless of any “election out” (or any amount of tax actually withheld) on an amount received from a Contract, 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.
E. General Provisions Affecting Qualified Retirement Plans
The Contract may be used for a number of qualified retirement plans. If the Contract is being purchased with respect to some form of qualified retirement plan, please refer to the section entitled “Information Regarding Tax-Qualified Retirement Plans” for information relative to the types of plans for which it may be used and the general explanation of the tax features of such plans.
F. Nonresident Aliens and Foreign Entities
The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. persons (such as U.S. citizens or U.S. resident aliens). Purchasers (and payees such as a purchaser’s beneficiary) that are not U.S. persons (such as a Nonresident Alien) 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 information and IRS tax forms (such as IRS Form W-8BEN) are submitted to us. If withholding tax applies, we are generally required to withhold tax at a 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. Foreign entities (such as foreign corporations, foreign partnerships, or foreign trusts) must provide the appropriate IRS tax forms (such as IRS Form W-8BEN-E or other appropriate Form W-8). If required by law, we may withhold 30% from any taxable payment in accordance with applicable requirements such as The Foreign Account Tax Compliance Act (FATCA) and applicable regulations. An updated Form W-8 is generally required to be submitted every three years. Purchasers may also 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.
G. Estate, Gift and Generation-Skipping Tax and Related Tax Considerations
Any amount payable upon a Contract Owner’s death, whether before or after the Annuity Commencement Date, is generally includable in the Contract Owner’s estate for federal estate tax purposes. Similarly, prior to the Contract Owner’s death, the payment of any amount from the Contract, or the transfer of any interest in the Contract, to a beneficiary or other person for less than adequate consideration may have federal gift tax consequences. In addition, any transfer to, or designation of, a non-Spouse beneficiary who either is (1) 37 1/2 or more years younger than a Contract Owner or (2) a grandchild (or more remote further descendant) of a Contract Owner may have federal generation-skipping-transfer (“GST”) tax consequences under Code Section 2601. Regulations under Code Section 2662 may require us to deduct any such GST tax from your Contract, or from any applicable payment, and pay it directly to the IRS. However, any federal estate, gift or GST tax payment with respect to a Contract could produce an offsetting income tax deduction for a beneficiary or transferee under Code Section 691(c) (partially offsetting such federal estate or GST tax) or a basis increase for a beneficiary or transferee under Code Section 691(c) or Section 1015(d). In addition, as indicated above in “Distributions Prior to the Annuity Commencement Date,” the transfer of a Contract for less than adequate consideration during the Contract Owner’s lifetime generally is treated as producing an amount received by such Contract Owner that is subject to both income tax and the 10% penalty tax. To the extent that such an amount deemed received causes an amount to be includable currently in such Contract Owner’s gross income, this same income amount could produce a corresponding increase in such Contract Owner’s tax basis for such Contract that is carried over to the transferee’s tax basis for such Contract under Code Section 72(e)(4)(C)(iii) and Section 1015.
H. Tax Disclosure Obligations


APP TAX-8
 
 
 

In some instances certain transactions must be disclosed to the IRS or penalties could apply. See, for example, IRS Notice 2004-67. The Code also requires certain “material advisers” to maintain a list of persons participating in such “reportable transactions,” which list must be furnished to the IRS upon request. It is possible that such disclosures could be required by Hartford The Company, the Owner(s) or other persons involved in transactions involving annuity contracts. It is the responsibility of each party, in consultation with their tax and legal advisers, to determine whether the particular facts and circumstances warrant such disclosures.
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.
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 with 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 Contract through a Qualified Plan, 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 and any applicable Qualified Plan terms. 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) may elect to provide for a separate account or annuity contract that accepts after-tax employee contributions and is treated as a “Deemed IRA” under Code Section 408(q), which is generally 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.


APP TAX-9
 
 
 

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 70½ 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 59½ 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).
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 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 contributions, and in limited circumstances 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


APP TAX-10
 
 
 

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 or other qualified plan assets may convert a Traditional IRA into a Roth IRA under certain circumstances. The conversion of a Traditional IRA or other qualified plan assets to a Roth IRA will subject the fair market value of the converted Traditional IRA to federal income tax in the year of conversion (special rules apply to 2010 conversions). 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 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 or 100% of the employee’s “includable compensation” for the most recent full year of service, subject to other adjustments. There are also legal limits on annual elective deferrals that a participant may be permitted to make under a TSA. In certain cases, such as when the participant is age 50 or older, those limits may be increased. A TSA participant should contact his plan administrator to determine applicable elective contribution limits. 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 59½;
b.
upon the employee’s separation from service;
c.
upon the employee’s death or disability;
d.
in the case of hardship (as defined in applicable law 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.


APP TAX-11
 
 
 

An employer sponsoring a TSA may impose additional restrictions on your TSA through its plan document.
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. § 1.403(b)-8(c)(2).
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, the same Regulation provides corresponding rules for a transfer from one TSA to another TSA under a different TSA Plan (e.g., for a different eligible employer). 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 $18,000 for 2016. The Plan may provide for additional “catch-up” contributions . 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 70½, (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 or Roth accounts in certain Qualified Plans, 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


APP TAX-12
 
 
 

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,” 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 59½. 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;
(vii)
certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty;
(viii)
made an account of an IRS levy on the Qualified Plan under Code Section 72(t)(2)(A)(vii); or
(ix)
made as a “direct rollover” or other timely rollover to an Eligible Retirement Plan, as described below.
In addition, the 10% penalty tax does not apply to a distribution from an IRA that is either:
(x)
made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions in Code Section 72(t)(2)(D) are met;
(xi)
not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or
(xii)
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, disability or a method change allowed by Rev. Rul. 2002-62), 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


APP TAX-13
 
 
 

made after both (a) the employee has reached age 59½ 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%.
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 70½, 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.
A special rule applies to individuals who attained age 70½ in 2009. Such individuals should consult with a qualified tax adviser before taking RMDs in 2010.
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 qualifying 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 the individual’s surviving spouse is the sole designated beneficiary, distributions may be delayed until the deceased individual would have attained age 70½.
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, particularly when distributions are made over the joint lives of the Owner and an individual other than his or her spouse. 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” from a Qualified Plan (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.”
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.


APP TAX-14
 
 
 

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 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 transfer or Plan and certain other conditions to maintain the applicable tax qualification are satisfied. 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 into a different type of Plan 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 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


APP TAX-15
 
 
 

“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 non-spouse 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 re-contributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. Other rules and exceptions may apply, so please consult with a qualified tax adviser.
9. Certain Tax Considerations with the Personal Pension Account in Qualified Plans    
Because the IRS has published no guidance on the tax treatment of arrangements resembling the Personal Pension Account, there is necessarily some uncertainty as to how an annuity contract with a Personal Pension Account will be treated in different types of Qualified Plans, and we advise you to consult with a qualified tax adviser concerning such treatment before you deposit any amount into a Personal Pension Account that is held in any Qualified Plan.    
Among such tax issues for you to consider with a qualified tax adviser in such a case are the following:    
a. Any amounts received by you (or your payee) prior to your attaining age 591⁄2 are generally subject to the penalty tax on premature distributions described above, unless such an amount received can qualify for an exception from such a penalty tax, e.g., scheduled payments that qualify for the SEPP Exception. In addition, any modification in payments qualifying for the SEPP Exception (e.g., by commutation) can have adverse penalty tax consequences, as described above.
b. The tax rules for satisfying RMD requirements vary according to both the form of Qualified Plan (e.g., NonRoth or Roth IRA) and the form of payment (e.g., periodic annuity payout or non-periodic distribution from an account value). As a result, such variations should be considered when RMD amounts need to be taken (e.g., after age 701⁄2 or death). In addition, any modification in the form or amount of such payments (e.g., by commutation) could have adverse tax consequences, if such a modification does not satisfy an IRS-recognized RMD exception (e.g., for an acceleration or other change in periodic payments under Reg. § 1.401(a) (9)-6, Q&A-1 and Q&A-14).
c. Any attempt to transfer an amount from the Benefit Balance to Sub-Accounts or the Fixed Accumulation Feature (if available) that exceeds the threshold for such a transfer will be treated by us as a form of annuitization distribution from the Personal Pension Account, and thus may not qualify as a tax-free direct transfer. Instead, such an attempted excess transfer could be treated for tax purposes as a potentially taxable distribution out of the entire annuity contract, followed by a contribution back into the same contract. While such a distribution from an IRA may qualify for 60-day rollover treatment (if it is not needed to satisfy RMD requirements), only one such tax-free 60-day rollover is allowed for any 365-day period for any individual from all of such individual’s IRAs. Failing such tax-free rollover treatment, such a distribution could be subject to both income and penalty tax, and any deemed contribution back into the contract may be subject to an excise tax on excess contributions, particularly after age 701⁄2. In addition, any such distribution from a non-IRA form of Qualified Plan may be subject to the 20% mandatory withholding tax, unless such distribution is an RMD or otherwise avoids classification as an “eligible rollover distribution,” as described above.




APP I-1
 
 
 



APPENDIX I - THE FUNDS                    

This appendix describes the investment options available by contract, including the Fund name, share class, fund objectives and the investment adviser and sub-adviser of each Fund. For additional information on each Fund, please refer to the Fund’s Prospectus.

1.
The Director Access Series I/IR

App I - 2
2.
The Director Choice Access Series I/IR                     
App I - 4



APP I-2
 
 
 


1.
The Director Access Series I/IR:
Funding
Option
Investment
Objective Summary
Investment
Adviser/Sub-Adviser
Fixed Accumulation Feature*
Preservation of capital
General Account
AIM Variable Insurance Funds
 
 
Invesco V.I. Government Money Market Fund - Series I** (formerly Invesco V.I. Money Market Fund)
Seeks to provide current income consistent with preservation of capital and liquidity
Invesco Advisers, Inc.
Hartford HLS Series Fund II, Inc.
 
 
Hartford Growth Opportunities HLS Fund - Class IA
Seeks capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small/Mid Cap Equity HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small Cap Growth HLS Fund - Class IA
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford U.S. Government Securities HLS Fund - Class IA
Seeks to maximize total return while providing shareholders with a high level of current income consistent with prudent investment risk
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Series Fund, Inc.
 
 
Hartford Balanced HLS Fund - Class IA
Seeks long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Capital Appreciation HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Disciplined Equity HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Dividend and Growth HLS Fund - Class IA
Seeks a high level of current income consistent with growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Global Growth HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Healthcare HLS Fund - Class IA(a)
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford High Yield HLS Fund - Class IA
Seeks to provide high current income, and long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford International Opportunities HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford MidCap HLS Fund - Class IA†
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford MidCap Value HLS Fund - Class IA†
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small Company HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP


APP I-3
 
 
 

Hartford Stock HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Total Return Bond HLS Fund - Class IA
Seeks a competitive total return, with income as a secondary objective
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Ultrashort Bond HLS Fund - Class IA
Seeks total return and income consistent with preserving capital and maintaining liquidity
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Value HLS Fund - Class IA
Seeks long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
HIMCO VIT
 
 
HIMCO VIT Index Fund - IA
Seeks to provide investment results which approximate the price and yield performance of publicly traded common stocks in the aggregate.
Hartford Investment Management Company
______________
*
The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature.
**
In a low interest rate environment, yields for money market funds, after deduction of Contract charges, may be negative even though the fund’s yield, before deducting for such charges, is positive. If you allocate a portion of your Contact value to a money market Sub-Account or participate in an Asset Allocation Program where Contact value is allocated to a money market Sub-Account, that portion of the value of your Contract value may decrease in value.
†
Closed to new and subsequent Premium Payments and transfers of Contract Value.
(a)
Closed to Contracts issued on or after 8/13/2004.



APP I-4
 
 
 


2.
The Director Choice Access Series I/IR:
Funding
Option
Investment
Objective Summary
Investment
Adviser/Sub-Adviser
Fixed Accumulation Feature*
Preservation of capital
General Account
AB Variable Products Series Fund, Inc.
 
 
AB VPS Growth and Income Portfolio - Class B
Seeks long-term growth of capital
AllianceBernstein, L.P.
AB VPS Intermediate Bond Portfolio - Class B
Generate income and price appreciation without assuming what the Adviser considers undue risk
AllianceBernstein, L.P.
AIM Variable Insurance Funds
 
 
Invesco V.I. Government Money Market Fund - Series I** (formerly Invesco V.I. Money Market Fund)
Seeks to provide current income consistent with preservation of capital and liquidity
Invesco Advisers, Inc.
Hartford HLS Series Fund II, Inc.
 
 
Hartford Growth Opportunities HLS Fund - Class IA
Seeks capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small/Mid Cap Equity HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small Cap Growth HLS Fund - Class IA
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford U.S. Government Securities HLS Fund - Class IA
Seeks to maximize total return while providing shareholders with a high level of current income consistent with prudent investment risk
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Series Fund, Inc.
 
 
Hartford Balanced HLS Fund - Class IA
Seeks long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Capital Appreciation HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Disciplined Equity HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Dividend and Growth HLS Fund - Class IA
Seeks a high level of current income consistent with growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Global Growth HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Healthcare HLS Fund - Class IA(a)
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford High Yield HLS Fund - Class IA
Seeks to provide high current income, and long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford International Opportunities HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP


APP I-5
 
 
 

Hartford MidCap HLS Fund - Class IA†
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford MidCap Value HLS Fund - Class IA†
Seeks long-term capital appreciation
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Small Company HLS Fund - Class IA
Seeks growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Stock HLS Fund - Class IA
Seeks long-term growth of capital
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Total Return Bond HLS Fund - Class IA
Seeks a competitive total return, with income as a secondary objective
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Ultrashort Bond HLS Fund - Class IA
Seeks total return and income consistent with preserving capital and maintaining liquidity
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
Hartford Value HLS Fund - Class IA
Seeks long-term total return
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
HIMCO VIT
 
 
HIMCO VIT Index Fund - IA
Seeks to provide investment results which approximate the price and yield performance of publicly traded common stocks in the aggregate.
Hartford Investment Management Company
______________
*
The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature.
**
In a low interest rate environment, yields for money market funds, after deduction of Contract charges, may be negative even though the fund’s yield, before deducting for such charges, is positive. If you allocate a portion of your Contact value to a money market Sub-Account or participate in an Asset Allocation Program where Contact value is allocated to a money market Sub-Account, that portion of the value of your Contract value may decrease in value.
†
Closed to new and subsequent Premium Payments and transfers of Contract Value.
(a)
Closed to Contracts issued on or after 8/13/2004.




APP II-1
 
 
 

Appendix II — Death Benefit — Examples
Example 1:
Assume you make a Premium Payment of $90,000. Assume your Maximum Anniversary Value is $95,000. Then your Contract Value on due proof of death is $102,000.
Your Maximum death benefit payable is the greatest of Total Premium Payments (adjusted for partial surrenders), Maximum Anniversary Value and Contract Value on due proof of death is $102,000.
Example 2:
Assume you make a Premium Payment of $90,000. Assume your Maximum Anniversary Value is $105,000. Then your Contract Value on due proof of death is $102,000.
Your Maximum death benefit payable is the greatest of Total Premium Payments (adjusted for partial surrenders), Maximum Anniversary Value and Contract Value on due proof of death is $105,000.
Example 3:
Your Contract does not have the 2002 Amendatory rider. Assume you make a Premium Payment of $90,000. Assume your Maximum Anniversary Value is $105,000 on the second anniversary. During the third contract year you take a partial Surrender of $20,000.
Your Total Premium Payment is reduced by the amount of the partial surrender and is $70,000. Your Maximum Anniversary Value is reduced by the amount of the partial surrender and is $85,000.
You die prior to the third anniversary and your Contract Value on due proof of death is $82,000.
Your Maximum death benefit payable is the greatest of Total Premium Payouts (adjusted for withdrawals), Maximum Anniversary Value and Contract Value on due proof of death is $85,000.
Example 4:
Your Contract does have the 2002 Amendatory rider. Assume you make a Premium Payment of $90,000. Assume your Maximum Anniversary Value is $105,000 on the second anniversary. During the third contract year you take a partial Surrender of $20,000. The Contract Value prior to the partial Surrender is $100,000.
Your Total Premium Payment is reduced by the amount of the partial surrender and is $70,000.
Due to the 2002 Amendatory Rider the Maximum Anniversary Value is adjusted proportionally for the partial surrender. The adjustment for the partial Surrender is determined by dividing the partial Surrender amount by the Contract Value prior to the Surrender and multiplying that amount by the Maximum Anniversary Value prior to the Surrender. To determine the new Maximum Anniversary Value, that total is then subtracted from the Maximum Anniversary Value prior to the Surrender.
$
20,000

partial Surrender divided by
$
100,000

Contract Value prior to Surrender equals
.2

multiplied by
$
105,000

Maximum Anniversary Value for a total of
$
21,000

to be deducted from the Interest Accumulation Value equals
$
84,000

the new Maximum Anniversary Value
You die prior to the third anniversary and your Contract Value on due proof of death is $82,000.
Your Maximum death benefit payable is the greatest of Total Premium Payouts (adjusted for withdrawals), Maximum Anniversary Value and Contract Value on due proof of death is $84,000.
Example 5
You elected the Optional Death Benefit rider
Your Contract does not have the 2002 Amendatory rider. Assume that you make a Premium Payment of $100,000. On the first Contract Anniversary assume your Contract Value is $108,000.00. The Interest Accumulation Value is $105,000 or 5% accumulation on the $100,000 Premium Payment.
$
100,000

Premium Payment
$
5,000

Interest of 5%
$
105,000

Interest Accumulation Value


APP II-2
 
 
 

If you request a partial Surrender of $10,000 the next day, your Interest Accumulation Value will change. The adjustment for the partial Surrender is determined by dividing the partial Surrender amount by the Contract Value prior to the Surrender and multiplying that amount by the Interest Accumulation Value prior to the Surrender. To determine the new Interest Accumulation Value, that total is then subtracted from the Interest Accumulation Value prior to the Surrender.
$
10,000

partial Surrender divided by
$
108,000

Contract Value prior to Surrender equals
.09259

multiplied by
$
105,000

Interest Accumulation Value for a total of
$
9,722

to be deducted from the Interest Accumulation Value equals
$
95,278

the new Interest Accumulation Value
The adjusted Maximum Anniversary Value $108,000 minus $10,000 which equals $98,000.
The adjusted Total Premium Payments is $100,000 minus $10,000 which equals $90,000. Your maximum death benefit is $98,000.
Example 6
You have elected the Optional Death Benefit
Your Contract does not have the 2002 Amendatory rider. Assume that you make a Premium Payment of $100,000. On the first Contract Anniversary assume your Contract Value is $92,000.00. The Interest Accumulation Value is $105,000 or 5% accumulation on the $100,000 Premium Payment.
$
100,000

Premium Payment
$
5,000

Interest of 5%
$
105,000

Interest Accumulation Value
If you request a partial Surrender of $10,000 the next day, your Interest Accumulation Value will change. The adjustment for the partial Surrender is determined by dividing the partial Surrender amount by the Contract Value prior to the Surrender and multiplying that amount by the Interest Accumulation Value prior to the Surrender. To determine the new Interest Accumulation Value, that total is then subtracted from the Interest Accumulation Value prior to the Surrender.
$
10,000

partial Surrender divided by
$
92,000

Contract Value prior to Surrender equals
.1087

multiplied by
$
105,000

Interest Accumulation Value for a total of
$
11,413

to be deducted from the Interest Accumulation Value equals
$
93,587

the New Interest Accumulation Value
The adjusted Maximum Anniversary Value $92,000 minus $10,000 which equals $82,000.
The adjusted Total Premium Payments is $100,000 minus $10,000 which equals $90,000.
Your maximum death benefit is $93,587.


APP III-1
 
 
 

Appendix III — The Hartford’s Principal First — Examples
Example 1: Assume you select The Hartford’s Principal First when you purchase your Contract and your initial Premium Payment is $100,000.
•
Your Benefit Amount is $100,000, which is your initial Premium Payment.
•
Your Benefit Payment is $7,000, which is 7% of your Benefit Amount.
Example 2: If you make an additional Premium Payment of $50,000, then
•
Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000).
•
Your Benefit Payment is $10,500, which is your prior Benefit Payment ($7,000) plus 7% of your additional Premium Payment ($3,500).
Example 3: Assume the same facts as Example 1. If you take the maximum Benefit Payment before the end of the first Contract Year, then
•
Your Benefit Amount becomes $93,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($7,000).
•
Your Benefit Payment for the next year remains $7,000, because you did not take more than your maximum Benefit Payment ($7,000).
Example 4: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”
Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $7,000.
Example 5: Assume the same facts as Example 1. If you Surrender $60,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($60,000) from your Benefit Amount ($100,000). This is $40,000 and is your “New Benefit Amount.”
Since the New Contract Value ($90,000) is more than or equal to the New Benefit Amount ($40,000), but less than the Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is reduced. The new Benefit Payment is 7% of the greater of your New Contract Value and New Benefit Amount, which is $6,300.
Example 6: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $80,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”
Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your “New Benefit Amount” becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment.
We recalculate the Benefit Payment by comparing the “old” Benefit Payment ($7,000) to 7% of the New Benefit Amount ($2,100). Your Benefit Payment becomes the lower of those two values, or $2,100.


APP III-2
 
 
 

Example 7: If you elect to “step up” The Hartford’s Principal First after the 5th year, assuming you have made no withdrawals, and your Contract Value at the time of step up is $200,000, then
•
We recalculate your Benefit Amount to equal your Contract Value, which is $200,000.
•
Your new Benefit Payment is equal to 7% of your new Benefit Amount, or $14,000.


APP IV-1
 
 
 

Appendix IV — ACD Deferral Option — Examples
This example is intended to help you compare the total and taxable amounts of annuity payments if you annuitize your contract on its Annuity Commencement Date to the total and taxable amounts of annuity payments if you elect the Deferral Option and either die at age 100 under circumstances which trigger payment of a Death Benefit or annuitize your contract on the Annuitant’s 100th birthday.
This example should not be considered to be a representation of the actual total or taxable amounts nor a representation of the tax consequences of receipt of those total or taxable amounts. The consequences of receipt of those total and taxable amounts depend on many factors outside the scope of this example.
This example assumes that on the Annuity Commencement Date:
The annuitant is age 90.
Your Contract Value is $250,000.
Your investment (tax basis) in your Contract is $175,000.
Your Contract is non-Qualified.
The amounts shown in this example will vary depending on the annuitization option chosen and whether you elect variable payouts, fixed payouts or a combination of variable and fixed payouts. In addition, the exclusion ratio depends on factors including your investment into the Contract, the Contract Value and the length of time that annuity payments will continue. For Payout Options which include a Life Annuity, the exclusion ratio may also depend on your life expectancy at the time annuity payments begin.
As you consider this example, please note that to make a direct comparison between the total and taxable amounts received through annuitization at the original Annuity Commencement Date (age 90) and received at the Deferred Annuity Commencement Date, you must calculate the results of investment of the amount received at age 90 for the ten-year period until age 100. Factors to consider in this calculation include:
• Your assumed net rate of return for this period;
• The amount that you would pay in taxes related to this amount; and
• Potential changes in laws including tax laws that may affect your investment and taxes.
Total and taxable amounts if you choose to annuitize your Contract on your Annuity Commencement Date:
To calculate the total and taxable amounts, this example assumes:
You elect the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option.
Your annual payment is equal to $29,637. Based on these assumptions:
Your exclusion ratio is 0.5905 ($175,000 divided by ($29,637 times 10)).
The annual excludable amount is $17,500 ($29,637 times 0.5905). The annual taxable amount is $12,137.
After 10 years, you will receive total payments of $296,370 of which $121,370 is taxable.
Total and taxable amounts if you elect the Annuity Commencement Date Deferral Option and defer your Annuity Commencement Date to age 100:
This example assumes:
Your Contract has a 4% annual growth, net of fees, compounded annually, for the next ten years.
Based on this assumption, your Contract Value at age 100 is $370,061.
If you die at age 100 and a Death Benefit is payable :
Your beneficiary receives the $370,061 Contract Value as a Death Benefit in one lump sum.
$195,061 ($370,061 minus $175,000) of the amount is taxable to the beneficiary.
If you annuitize at age 100 and elect the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option :



APP IV-2
 
 
 

This example assumes:
Your annual payment is equal to $43,870.
Based on this assumption:
Your exclusion ratio will be 0.3989 ($175,000 divided by ($43,870 times 10)).
Your annual excludable amount is $17,500 ($43,870 times 0.3989).
Your annual taxable amount is $26,370 .
After 10 years, you will receive total payments of $438,700, of which $263,700 is taxable.


APP V-1
 
 
 

Appendix V — 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 Account included in the Statement of Additional Information, which is incorporated by reference in this Prospectus.
There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The table below shows only the highest and lowest possible Accumulation Unit Value, assuming you select no optional benefits or assuming you select all optional benefits. A table showing all classes of Accumulation Unit Values corresponding to all combinations of optional benefits appears in the Statement of Additional Information, which you may obtain free of charge by contacting us at 1-800-862-6668.

Hartford Life Insurance Company
 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Balanced HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

$
1.109

Accumulation Unit Value at end of period
$
1.711

$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

Number of Accumulation Units outstanding at end of period (in thousands)
11,467

14,193

17,896

22,712

31,068

47,149

59,749

71,639

93,144

110,064

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
10.356

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.183

$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Capital Appreciation HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

$
2.026

Accumulation Unit Value at end of period
$
3.468

$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

Number of Accumulation Units outstanding at end of period (in thousands)
8,026

10,155

13,080

18,346

24,870

40,205

53,945

63,760

78,527

89,707

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
10.439

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.342

$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Disciplined Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

$
1.164

Accumulation Unit Value at end of period
$
2.201

$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

Number of Accumulation Units outstanding at end of period (in thousands)
1,640

1,925

2,448

3,314

4,745

7,563

9,597

11,304

13,392

14,292

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
10.423

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.972

$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Dividend and Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at end of period
$
2.455

$
2.207

$
1.698

$
1.517

$
1.520

$
1.363

$
1.110

$
1.667

$
1.564

$
1.319

Number of Accumulation Units outstanding at end of period (in thousands)
2.391

2.455

2.207

1.698

1.517

1.52

1.363

1.11

1.667

1.564



APP V-2
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
8,104

10,052

13,151

17,475

23,207

36,117

46,312

54,589

67,914

73,489

Accumulation Unit Value at beginning of period
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at end of period
$
21.412

$
19.455

$
15.135

$
13.675

$
13.853

$
12.559

$
10.339

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
20.621

21.412

19.455

15.135

13.675

13.853

12.559

—

—

—

Hartford Global Growth HLS Fund
—

—

—

—

—

—

—

—

—

—

Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

$
1.840

Accumulation Unit Value at end of period
$
2.783

$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

Number of Accumulation Units outstanding at end of period (in thousands)
925

1,286

1,205

1,671

2,230

3,295

4,401

5,254

6,117

7,068

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
10.535

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.742

$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Growth Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

$
1.437

Accumulation Unit Value at end of period
$
2.977

$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

Number of Accumulation Units outstanding at end of period (in thousands)
2,034

2,363

1,664

2,419

3,577

5,385

7,009

7,781

10,341

10,567

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
10.541

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
26.798

$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Healthcare HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

$
1.935

Accumulation Unit Value at end of period
$
5.512

$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

Number of Accumulation Units outstanding at end of period (in thousands)
535

634

822

1,162

1,445

2,209

3,105

3,787

4,841

5,544

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
10.977

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.487

$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford High Yield HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

$
1.273

Accumulation Unit Value at end of period
$
2.045

$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

Number of Accumulation Units outstanding at end of period (in thousands)
1,625

1,928

2,515

4,058

5,186

7,791

9,847

10,592

13,689

15,188



APP V-3
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
10.383

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
18.914

$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford International Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

$
1.159

Accumulation Unit Value at end of period
$
1.718

$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

Number of Accumulation Units outstanding at end of period (in thousands)
2,382

2,915

3,823

5,509

7,573

12,276

9,048

10,728

12,138

12,991

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
10.694

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.765

$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford MidCap HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

$
2.698

Accumulation Unit Value at end of period
$
5.443

$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

192

1,239

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
10.511

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.648

$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford MidCap Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

$
1.486

Accumulation Unit Value at end of period
$
2.723

$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

Number of Accumulation Units outstanding at end of period (in thousands)
1,335

1,651

2,269

3,251

4,308

7,576

10,202

12,937

15,838

17,937

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
11.006

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.137

$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Small Company HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

$
1.589

Accumulation Unit Value at end of period
$
2.702

$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

Number of Accumulation Units outstanding at end of period (in thousands)
658

795

951

1,475

1,912

2,957

4,038

4,872

6,351

7,593



APP V-4
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
10.454

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.176

$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Small/Mid Cap Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
10.247

$
—

$
—

Accumulation Unit Value at end of period
$
15.183

$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
34

40

49

79

123

179

202

39

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
10.308

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.247

$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford SmallCap Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

$
1.339

Accumulation Unit Value at end of period
$
2.540

$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

Number of Accumulation Units outstanding at end of period (in thousands)
1,165

1,527

1,907

2,679

3,846

6,336

8,296

9,522

11,510

12,403

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
10.643

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
29.783

$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Stock HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

$
0.998

Accumulation Unit Value at end of period
$
1.649

$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

Number of Accumulation Units outstanding at end of period (in thousands)
3,792

4,841

6,248

8,909

12,416

19,119

24,634

30,274

36,433

44,386

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
10.329

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.938

$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Total Return Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

$
1.408

Accumulation Unit Value at end of period
$
1.814

$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

Number of Accumulation Units outstanding at end of period (in thousands)
6,905

8,489

11,119

15,886

20,451

30,965

40,139

45,209

54,253

55,370



APP V-5
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
10.254

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.627

$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford U.S. Government Securities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

$
1.084

Accumulation Unit Value at end of period
$
1.205

$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

Number of Accumulation Units outstanding at end of period (in thousands)
3,169

3,967

4,989

7,504

9,335

14,426

18,893

21,343

16,797

15,848

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
10.024

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.011

$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

$
1.123

Accumulation Unit Value at end of period
$
1.088

$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

Number of Accumulation Units outstanding at end of period (in thousands)
1,890

2,451

3,408

5,636

8,892

13,301

17,349

33,533

18,898

11,450

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
9.980

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.344

$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

$
1.120

Accumulation Unit Value at end of period
$
1.967

$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

Number of Accumulation Units outstanding at end of period (in thousands)
1,899

2,119

2,665

3,623

5,257

7,982

3,881

4,480

5,896

6,406

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
10.306

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.013

$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

HIMCO VIT Index Fund (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.753

$
1.620

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.746

$
1.753

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,565

2,079

—

—

—

—

—

—

—

—



APP V-6
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.177

$
20.535

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.838

$
22.177

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Invesco V.I. Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.768

$
9.914

$
9.982

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.623

$
9.768

$
9.914

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
155

63

60

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.598

$
9.850

$
9.968

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.353

$
9.598

$
9.850

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

AB VPS Growth and Income Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.778

$
1.651

$
1.245

$
1.078

$
1.032

$
0.929

$
0.783

$
1.341

$
1.298

$
1.126

Accumulation Unit Value at end of period
$
1.776

$
1.778

$
1.651

$
1.245

$
1.078

$
1.032

$
0.929

$
0.783

$
1.341

$
1.298

Number of Accumulation Units outstanding at end of period (in thousands)
58

60

62

89

130

122

122

125

123

124

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.929

$
21.533

$
16.419

$
14.373

$
13.907

$
12.654

$
10.791

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.659

$
22.929

$
21.533

$
16.419

$
14.373

$
13.907

$
12.654

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

AB VPS Intermediate Bond Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.736

$
12.172

$
12.651

$
12.139

$
11.583

$
10.795

$
9.271

$
9.978

$
—

$
—

Accumulation Unit Value at end of period
$
12.524

$
12.736

$
12.172

$
12.651

$
12.139

$
11.583

$
10.795

$
9.271

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

6

6

7

10

10

12

8

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.410

$
12.958

$
13.617

$
13.210

$
12.745

$
12.009

$
10.427

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.042

$
13.410

$
12.958

$
13.617

$
13.210

$
12.745

$
12.009

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—


Hartford Life and Annuity Insurance Company
 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Balanced HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

$
1.109

Accumulation Unit Value at end of period
$
1.711

$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

Number of Accumulation Units outstanding at end of period (in thousands)
8,468

9,682

13,354

18,835

23,875

33,440

44,174

57,842

78,338

101,623



APP V-7
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
10.356

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.183

$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Capital Appreciation HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

$
2.026

Accumulation Unit Value at end of period
$
3.468

$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

Number of Accumulation Units outstanding at end of period (in thousands)
6,059

7,520

9,925

15,121

21,166

31,104

43,674

54,706

71,048

89,312

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
10.439

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.342

$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Disciplined Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

$
1.164

Accumulation Unit Value at end of period
$
2.201

$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

Number of Accumulation Units outstanding at end of period (in thousands)
1,802

2,260

3,168

4,588

6,493

9,914

12,879

16,222

19,282

22,373

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
10.423

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.972

$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Dividend and Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.455

$
2.207

$
1.698

$
1.517

$
1.520

$
1.363

$
1.110

$
1.667

$
1.564

$
1.319

Accumulation Unit Value at end of period
$
2.391

$
2.455

$
2.207

$
1.698

$
1.517

$
1.520

$
1.363

$
1.110

$
1.667

$
1.564

Number of Accumulation Units outstanding at end of period (in thousands)
7,409

9,070

11,974

17,734

24,723

35,244

48,321

60,344

79,874

94,746

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.412

$
19.455

$
15.135

$
13.675

$
13.853

$
12.559

$
10.339

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.621

$
21.412

$
19.455

$
15.135

$
13.675

$
13.853

$
12.559

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Global Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

$
1.840

Accumulation Unit Value at end of period
$
2.783

$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

Number of Accumulation Units outstanding at end of period (in thousands)
926

1,212

1,231

1,888

2,626

4,214

5,579

6,965

8,544

11,173

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
10.535

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.742

$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



APP V-8
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Growth Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

$
1.437

Accumulation Unit Value at end of period
$
2.977

$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

Number of Accumulation Units outstanding at end of period (in thousands)
2,340

2,744

1,645

2,198

3,248

5,173

7,574

9,413

11,870

13,070

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
10.541

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
26.798

$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Healthcare HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

$
1.935

Accumulation Unit Value at end of period
$
5.512

$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

Number of Accumulation Units outstanding at end of period (in thousands)
210

247

312

470

680

1,056

1,626

2,260

3,427

4,231

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
10.977

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.487

$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford High Yield HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

$
1.273

Accumulation Unit Value at end of period
$
2.045

$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

Number of Accumulation Units outstanding at end of period (in thousands)
1,699

2,117

3,109

4,331

6,125

8,853

12,239

11,725

15,673

18,413

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
10.383

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
18.914

$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford International Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

$
1.159

Accumulation Unit Value at end of period
$
1.718

$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

Number of Accumulation Units outstanding at end of period (in thousands)
2,690

3,156

4,031

5,862

8,404

12,719

10,470

12,954

15,019

17,722

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
10.694

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.765

$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford MidCap HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

$
2.698

Accumulation Unit Value at end of period
$
5.443

$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

646

4,155



APP V-9
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
10.511

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.648

$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford MidCap Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

$
1.486

Accumulation Unit Value at end of period
$
2.723

$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

Number of Accumulation Units outstanding at end of period (in thousands)
1,583

1,961

2,624

3,747

4,930

7,028

9,340

12,270

16,555

20,376

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
11.006

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.137

$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Small Company HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

$
1.589

Accumulation Unit Value at end of period
$
2.702

$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

Number of Accumulation Units outstanding at end of period (in thousands)
534

683

843

1,079

1,533

2,724

4,062

5,323

6,858

10,129

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
10.454

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.176

$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Small/Mid Cap Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
10.247

$
—

$
—

Accumulation Unit Value at end of period
$
15.183

$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
28

39

51

64

118

181

209

35

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
10.308

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.247

$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford SmallCap Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

$
1.339

Accumulation Unit Value at end of period
$
2.540

$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

Number of Accumulation Units outstanding at end of period (in thousands)
1,195

1,481

1,858

2,567

3,984

6,423

8,873

10,579

12,927

14,693



APP V-10
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
10.643

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
29.783

$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Stock HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

$
0.998

Accumulation Unit Value at end of period
$
1.649

$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

Number of Accumulation Units outstanding at end of period (in thousands)
3,490

4,143

5,514

8,332

12,089

17,395

23,956

30,377

39,592

52,761

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
10.329

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.938

$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Total Return Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

$
1.408

Accumulation Unit Value at end of period
$
1.814

$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

Number of Accumulation Units outstanding at end of period (in thousands)
4,816

5,906

7,800

11,659

14,842

22,959

31,267

34,083

42,139

44,222

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
10.254

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.627

$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford U.S. Government Securities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

$
1.084

Accumulation Unit Value at end of period
$
1.205

$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

Number of Accumulation Units outstanding at end of period (in thousands)
2,331

2,790

4,065

5,902

7,641

11,970

16,778

22,219

16,928

16,296

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
10.024

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.011

$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

$
1.123

Accumulation Unit Value at end of period
$
1.088

$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

Number of Accumulation Units outstanding at end of period (in thousands)
1,481

1,581

2,232

4,053

8,276

8,032

12,666

24,084

19,191

11,813



APP V-11
 
 
 

 
As of December 31,
Sub-Account
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
9.980

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.344

$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Hartford Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

$
1.120

Accumulation Unit Value at end of period
$
1.967

$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

Number of Accumulation Units outstanding at end of period (in thousands)
1,688

1,957

2,699

4,045

5,511

9,106

4,317

5,652

7,732

10,211

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
10.306

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.013

$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

HIMCO VIT Index Fund (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.753

$
1.620

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.746

$
1.753

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,024

1,240

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.177

$
20.535

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.838

$
22.177

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Invesco V.I. Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.768

$
9.914

$
9.982

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.623

$
9.768

$
9.914

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
79

125

48

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.598

$
9.850

$
9.968

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.353

$
9.598

$
9.850

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—




APP VI -1
 
 
 

Appendix VI — Model Investment Options

(Percentage allocations apply to value in the Sub-Accounts)

Available for the following Products
Director Access 1
Director Choice Access VA 1
 
As of May 2, 2016, the following models will be available to you to invest in:


Portfolio Planner Models

Fund
Ultra Conservative
Conservative
Balanced
Moderate Growth
Hartford Disciplined Equity HLS Fund
5%
6%
8%
9%
Hartford Dividend and Growth HLS Fund
4%
5%
6%
8%
Hartford Global Growth HLS Fund
4%
6%
7%
9%
Hartford Growth Opportunities HLS Fund
6%
8%
10%
11%
Hartford High Yield HLS Fund
17%
21%
19%
18%
Hartford International Opportunities HLS Fund
5%
7%
9%
11%
Hartford MidCap Value HLS Fund
1%
1%
2%
2%
Hartford Small Cap Growth HLS Fund
2%
3%
3%
4%
Hartford Small/Mid Cap Equity HLS Fund
3%
4%
5%
6%
Hartford Total Return Bond HLS Fund
26%
18%
13%
9%
Hartford U.S. Government Securities HLS Fund
27%
21%
18%
13%
Total
100%
100%
100%
100%

To obtain a Statement of Additional Information, please call us at 800-862-6668 or complete the form below and mail to:
Hartford Life Insurance Company/Hartford Life and Annuity Insurance Company
PO Box 14293
Lexington, KY 40512-4293
Please send a Statement of Additional Information to me at the following address:
 
Name
 
Address
 
City/State
Zip Code
Contract Name
Issue Date



 

Statement of Additional Information
Hartford Life and Annuity Insurance Company
Separate Account One
Director Access Series I/IR
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 and Annuity Insurance Company, P. O. Box 14293, Lexington, KY 40512-4293.
Date of Prospectus: May 2, 2016
Date of Statement of Additional Information: May 2, 2016


Table of Contents



2
Hartford Life and Annuity 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 statutory-basis financial statements of Hartford Life and Annuity Insurance Company as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015 have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report (which report expresses an unmodified opinion in accordance with accounting practices prescribed or permitted by the Insurance Department of the State of Connecticut and expresses an adverse opinion for the statutory-basis financial statements because the financial statements are not fairly presented in conformity with accounting principles generally accepted in the United States of America), and the statements of assets and liabilities of each of the individual sub-accounts which comprise Hartford Life and Annuity Insurance Company Separate Account One as of December 31, 2015, and the related statements of operations for each of the periods then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which reports are both included in the Statement of Additional Information which is part of the Registration Statement. 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 CityPlace I, 33rd 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
The Contracts, which are offered continuously, are distributed by Hartford Securities Distribution Company, Inc. (“HSD”). 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 three years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as Principal Underwriter has been: 2015 : $ 15,477,855 ; 2014 : $ 12,855,688 ; and 2013 : $ 9,458,305 .
OPERATIONAL RISKS
An investment in a Contract, Separate Account, or Fund can involve operational and information security risks arising from factors such as processing errors, inadequate or failed processes, failure in systems and technology, changes in personnel and errors caused by third-party service providers.  While we seek to minimize such events through controls and oversight, there may still be failures that could adversely affect us and your Contract’s Value. In addition, as the use of technology increases, we, a Contract, a Separate Account, or Fund may be more susceptible to operational risks through breaches in cybersecurity.  A breach in cybersecurity refers to both intentional and unintentional events that may cause us, a Contract, a Separate Account, or Fund to lose proprietary information, suffer data corruption, or operational capacity, and as a result, may incur regulatory penalties, reputational damage, and additional compliance costs associated with corrected measures and/or financial loss.  In addition, cyber security breaches of a Fund’s third party service providers or issuers of securities in which the underlying Funds invest may also subject a Fund to many of the same risks associated with direct cybersecurity breaches.
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, any applicable administrative charge and the Annual Maintenance Fee.
The formula Hartford uses to calculate standardized total return is P(1+T)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.


Hartford Life and Annuity Insurance Company
3

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. Nonstandardized total return is measured in the same manner as the standardized total return described above, except that the Annual Maintenance Fee is 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)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 × (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)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.


4
Hartford Life and Annuity Insurance Company

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 Account included in this Statement of Additional Information.
There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The tables below show all possible Accumulation Unit Values corresponding to all combinations of optional benefits. Tables showing only the highest and lowest possible Accumulation Unit Values are shown in the prospectus, which assumes you select either no optional benefits or all optional benefits.
Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Balanced HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

$
1.109

Accumulation Unit Value at end of period
$
1.711

$
1.734

$
1.603

$
1.343

$
1.217

$
1.213

$
1.098

$
0.855

$
1.270

$
1.209

Number of Accumulation Units outstanding at end of period (in thousands)
8,468

9,682

13,354

18,835

23,875

33,440

44,174

57,842

78,338

101,623

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.695

$
1.569

$
1.316

$
1.195

$
1.192

$
1.081

$
0.844

$
1.255

$
1.196

$
1.098

Accumulation Unit Value at end of period
$
1.670

$
1.695

$
1.569

$
1.316

$
1.195

$
1.192

$
1.081

$
0.844

$
1.255

$
1.196

Number of Accumulation Units outstanding at end of period (in thousands)
8,158

10,580

15,045

21,186

29,932

43,038

51,081

59,052

66,477

72,227

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.686

$
1.562

$
1.311

$
1.191

$
1.189

$
1.078

$
0.842

$
1.253

$
1.195

$
1.098

Accumulation Unit Value at end of period
$
1.661

$
1.686

$
1.562

$
1.311

$
1.191

$
1.189

$
1.078

$
0.842

$
1.253

$
1.195

Number of Accumulation Units outstanding at end of period (in thousands)
137

140

158

100

104

105

157

189

3,492

3,552

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.648

$
1.529

$
1.285

$
1.169

$
1.169

$
1.062

$
0.830

$
1.237

$
1.182

$
1.088

Accumulation Unit Value at end of period
$
1.621

$
1.648

$
1.529

$
1.285

$
1.169

$
1.169

$
1.062

$
0.830

$
1.237

$
1.182

Number of Accumulation Units outstanding at end of period (in thousands)
346

466

517

444

645

626

1,355

2,706

4,253

6,297

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.648

$
1.529

$
1.285

$
1.169

$
1.169

$
1.062

$
0.830

$
1.237

$
1.182

$
1.088

Accumulation Unit Value at end of period
$
1.621

$
1.648

$
1.529

$
1.285

$
1.169

$
1.169

$
1.062

$
0.830

$
1.237

$
1.182

Number of Accumulation Units outstanding at end of period (in thousands)
346

466

517

444

645

626

1,355

2,706

4,253

6,297

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.618

$
1.503

$
1.265

$
1.152

$
1.154

$
1.050

$
0.822

$
1.227

$
1.174

$
1.082

Accumulation Unit Value at end of period
$
1.589

$
1.618

$
1.503

$
1.265

$
1.152

$
1.154

$
1.050

$
0.822

$
1.227

$
1.174

Number of Accumulation Units outstanding at end of period (in thousands)
7,673

7,758

7,765

5,288

5,659

6,403

5,267

3,748

4,158

4,725

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.618

$
1.503

$
1.265

$
1.152

$
1.154

$
1.050

$
0.822

$
1.227

$
1.174

$
1.082

Accumulation Unit Value at end of period
$
1.589

$
1.618

$
1.503

$
1.265

$
1.152

$
1.154

$
1.050

$
0.822

$
1.227

$
1.174

Number of Accumulation Units outstanding at end of period (in thousands)
7,673

7,758

7,765

5,288

5,659

6,403

5,267

3,748

4,158

4,725

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.608

$
1.495

$
1.259

$
1.147

$
1.149

$
1.046

$
0.820

$
1.224

$
1.172

$
1.080

Accumulation Unit Value at end of period
$
1.578

$
1.608

$
1.495

$
1.259

$
1.147

$
1.149

$
1.046

$
0.820

$
1.224

$
1.172

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

78

118

160

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.587

$
1.477

$
1.245

$
1.136

$
1.139

$
1.038

$
0.814

$
1.217

$
1.166

$
1.076

Accumulation Unit Value at end of period
$
1.556

$
1.587

$
1.477

$
1.245

$
1.136

$
1.139

$
1.038

$
0.814

$
1.217

$
1.166



Hartford Life and Annuity Insurance Company
5

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
696

575

469

645

312

361

122

135

167

159

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.578

$
1.469

$
1.239

$
1.131

$
1.135

$
1.035

$
0.812

$
1.214

$
1.164

$
1.075

Accumulation Unit Value at end of period
$
1.546

$
1.578

$
1.469

$
1.239

$
1.131

$
1.135

$
1.035

$
0.812

$
1.214

$
1.164

Number of Accumulation Units outstanding at end of period (in thousands)
1,383

1,333

1,376

1,417

1,106

659

200

46

179

192

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.578

$
1.469

$
1.239

$
1.131

$
1.135

$
1.035

$
0.812

$
1.214

$
1.164

$
1.075

Accumulation Unit Value at end of period
$
1.546

$
1.578

$
1.469

$
1.239

$
1.131

$
1.135

$
1.035

$
0.812

$
1.214

$
1.164

Number of Accumulation Units outstanding at end of period (in thousands)
1,383

1,333

1,376

1,417

1,106

659

200

46

179

192

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.077

$
18.702

$
15.783

$
14.410

$
14.470

$
13.197

$
10.360

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.665

$
20.077

$
18.702

$
15.783

$
14.410

$
14.470

$
13.197

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
25

21

17

18

25

42

13

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.552

$
1.447

$
1.223

$
1.117

$
1.123

$
1.025

$
0.806

$
1.207

$
1.159

$
1.071

Accumulation Unit Value at end of period
$
1.519

$
1.552

$
1.447

$
1.223

$
1.117

$
1.123

$
1.025

$
0.806

$
1.207

$
1.159

Number of Accumulation Units outstanding at end of period (in thousands)
372

380

382

62

75

22

23

51

24

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.894

$
18.560

$
15.687

$
14.343

$
14.424

$
13.175

$
10.358

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.457

$
19.894

$
18.560

$
15.687

$
14.343

$
14.424

$
13.175

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.833

$
18.513

$
15.655

$
14.321

$
14.409

$
13.168

$
10.358

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.388

$
19.833

$
18.513

$
15.655

$
14.321

$
14.409

$
13.168

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

3

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
10.356

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.183

$
19.653

$
18.372

$
15.559

$
14.255

$
14.364

$
13.147

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Capital Appreciation HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

$
2.026

Accumulation Unit Value at end of period
$
3.468

$
3.485

$
3.296

$
2.406

$
2.064

$
2.365

$
2.060

$
1.436

$
2.679

$
2.328

Number of Accumulation Units outstanding at end of period (in thousands)
6,059

7,520

9,925

15,121

21,166

31,104

43,674

54,706

71,048

89,312

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.406

$
3.227

$
2.359

$
2.026

$
2.325

$
2.029

$
1.416

$
2.646

$
2.303

$
2.008

Accumulation Unit Value at end of period
$
3.384

$
3.406

$
3.227

$
2.359

$
2.026

$
2.325

$
2.029

$
1.416

$
2.646

$
2.303



6
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
8,658

10,858

15,258

22,024

32,959

48,310

61,893

70,952

75,289

84,461

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.389

$
3.212

$
2.349

$
2.019

$
2.318

$
2.024

$
1.413

$
2.642

$
2.301

$
2.007

Accumulation Unit Value at end of period
$
3.366

$
3.389

$
3.212

$
2.349

$
2.019

$
2.318

$
2.024

$
1.413

$
2.642

$
2.301

Number of Accumulation Units outstanding at end of period (in thousands)
44

100

110

87

91

123

95

151

1,270

1,333

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.312

$
3.144

$
2.303

$
1.982

$
2.280

$
1.993

$
1.394

$
2.610

$
2.276

$
1.988

Accumulation Unit Value at end of period
$
3.285

$
3.312

$
3.144

$
2.303

$
1.982

$
2.280

$
1.993

$
1.394

$
2.610

$
2.276

Number of Accumulation Units outstanding at end of period (in thousands)
1,034

1,125

1,265

1,311

1,208

1,311

2,515

4,392

7,274

9,430

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.312

$
3.144

$
2.303

$
1.982

$
2.280

$
1.993

$
1.394

$
2.610

$
2.276

$
1.988

Accumulation Unit Value at end of period
$
3.285

$
3.312

$
3.144

$
2.303

$
1.982

$
2.280

$
1.993

$
1.394

$
2.610

$
2.276

Number of Accumulation Units outstanding at end of period (in thousands)
1,034

1,125

1,265

1,311

1,208

1,311

2,515

4,392

7,274

9,430

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.251

$
3.091

$
2.267

$
1.955

$
2.251

$
1.971

$
1.380

$
2.589

$
2.261

$
1.978

Accumulation Unit Value at end of period
$
3.219

$
3.251

$
3.091

$
2.267

$
1.955

$
2.251

$
1.971

$
1.380

$
2.589

$
2.261

Number of Accumulation Units outstanding at end of period (in thousands)
7,653

8,517

8,933

7,321

7,757

8,886

8,084

7,265

8,120

9,899

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.251

$
3.091

$
2.267

$
1.955

$
2.251

$
1.971

$
1.380

$
2.589

$
2.261

$
1.978

Accumulation Unit Value at end of period
$
3.219

$
3.251

$
3.091

$
2.267

$
1.955

$
2.251

$
1.971

$
1.380

$
2.589

$
2.261

Number of Accumulation Units outstanding at end of period (in thousands)
7,653

8,517

8,933

7,321

7,757

8,886

8,084

7,265

8,120

9,899

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.231

$
3.073

$
2.256

$
1.946

$
2.242

$
1.964

$
1.376

$
2.582

$
2.256

$
1.974

Accumulation Unit Value at end of period
$
3.198

$
3.231

$
3.073

$
2.256

$
1.946

$
2.242

$
1.964

$
1.376

$
2.582

$
2.256

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

10

71

113

144

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.190

$
3.037

$
2.231

$
1.926

$
2.222

$
1.949

$
1.367

$
2.567

$
2.245

$
1.967

Accumulation Unit Value at end of period
$
3.154

$
3.190

$
3.037

$
2.231

$
1.926

$
2.222

$
1.949

$
1.367

$
2.567

$
2.245

Number of Accumulation Units outstanding at end of period (in thousands)
914

904

780

562

528

1,116

3,034

4,260

2,676

1,194

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.171

$
3.021

$
2.221

$
1.918

$
2.213

$
1.942

$
1.363

$
2.561

$
2.241

$
1.964

Accumulation Unit Value at end of period
$
3.134

$
3.171

$
3.021

$
2.221

$
1.918

$
2.213

$
1.942

$
1.363

$
2.561

$
2.241

Number of Accumulation Units outstanding at end of period (in thousands)
1,512

1,495

1,512

1,380

1,292

963

379

22

110

102

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.171

$
3.021

$
2.221

$
1.918

$
2.213

$
1.942

$
1.363

$
2.561

$
2.241

$
1.964

Accumulation Unit Value at end of period
$
3.134

$
3.171

$
3.021

$
2.221

$
1.918

$
2.213

$
1.942

$
1.363

$
2.561

$
2.241

Number of Accumulation Units outstanding at end of period (in thousands)
1,512

1,495

1,512

1,380

1,292

963

379

22

110

102

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.228

$
23.092

$
16.981

$
14.676

$
16.943

$
14.873

$
10.443

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.929

$
24.228

$
23.092

$
16.981

$
14.676

$
16.943

$
14.873

$
—

$
—

$
—



Hartford Life and Annuity Insurance Company
7

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
121

82

68

59

80

83

28

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
3.119

$
2.976

$
2.191

$
1.895

$
2.190

$
1.925

$
1.353

$
2.546

$
2.231

$
1.958

Accumulation Unit Value at end of period
$
3.078

$
3.119

$
2.976

$
2.191

$
1.895

$
2.190

$
1.925

$
1.353

$
2.546

$
2.231

Number of Accumulation Units outstanding at end of period (in thousands)
215

250

148

113

119

93

66

58

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.007

$
22.916

$
16.877

$
14.608

$
16.889

$
14.849

$
10.441

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.676

$
24.007

$
22.916

$
16.877

$
14.608

$
16.889

$
14.849

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.934

$
22.858

$
16.842

$
14.585

$
16.872

$
14.841

$
10.441

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.592

$
23.934

$
22.858

$
16.842

$
14.585

$
16.872

$
14.841

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
10.439

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.342

$
23.716

$
22.684

$
16.739

$
14.518

$
16.819

$
14.817

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Disciplined Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

$
1.164

Accumulation Unit Value at end of period
$
2.201

$
2.091

$
1.827

$
1.365

$
1.178

$
1.183

$
1.053

$
0.850

$
1.376

$
1.289

Number of Accumulation Units outstanding at end of period (in thousands)
1,802

2,260

3,168

4,588

6,493

9,914

12,879

16,222

19,282

22,373

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.044

$
1.788

$
1.339

$
1.157

$
1.163

$
1.037

$
0.839

$
1.359

$
1.275

$
1.153

Accumulation Unit Value at end of period
$
2.148

$
2.044

$
1.788

$
1.339

$
1.157

$
1.163

$
1.037

$
0.839

$
1.359

$
1.275

Number of Accumulation Units outstanding at end of period (in thousands)
5,138

6,844

9,782

15,132

23,037

33,845

41,349

46,491

50,555

52,393

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.033

$
1.780

$
1.333

$
1.153

$
1.159

$
1.034

$
0.837

$
1.357

$
1.274

$
1.153

Accumulation Unit Value at end of period
$
2.136

$
2.033

$
1.780

$
1.333

$
1.153

$
1.159

$
1.034

$
0.837

$
1.357

$
1.274

Number of Accumulation Units outstanding at end of period (in thousands)
72

80

87

97

103

127

138

140

139

155

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.987

$
1.743

$
1.307

$
1.132

$
1.140

$
1.018

$
0.825

$
1.341

$
1.260

$
1.142

Accumulation Unit Value at end of period
$
2.084

$
1.987

$
1.743

$
1.307

$
1.132

$
1.140

$
1.018

$
0.825

$
1.341

$
1.260

Number of Accumulation Units outstanding at end of period (in thousands)
72

48

56

58

62

74

230

685

1,119

1,467

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.987

$
1.743

$
1.307

$
1.132

$
1.140

$
1.018

$
0.825

$
1.341

$
1.260

$
1.142

Accumulation Unit Value at end of period
$
2.084

$
1.987

$
1.743

$
1.307

$
1.132

$
1.140

$
1.018

$
0.825

$
1.341

$
1.260

Number of Accumulation Units outstanding at end of period (in thousands)
72

48

56

58

62

74

230

685

1,119

1,467



8
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.951

$
1.713

$
1.287

$
1.116

$
1.126

$
1.007

$
0.818

$
1.330

$
1.252

$
1.136

Accumulation Unit Value at end of period
$
2.043

$
1.951

$
1.713

$
1.287

$
1.116

$
1.126

$
1.007

$
0.818

$
1.330

$
1.252

Number of Accumulation Units outstanding at end of period (in thousands)
1,403

1,811

1,557

959

1,131

1,346

909

601

599

745

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.951

$
1.713

$
1.287

$
1.116

$
1.126

$
1.007

$
0.818

$
1.330

$
1.252

$
1.136

Accumulation Unit Value at end of period
$
2.043

$
1.951

$
1.713

$
1.287

$
1.116

$
1.126

$
1.007

$
0.818

$
1.330

$
1.252

Number of Accumulation Units outstanding at end of period (in thousands)
1,403

1,811

1,557

959

1,131

1,346

909

601

599

745

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.939

$
1.703

$
1.280

$
1.111

$
1.121

$
1.003

$
0.815

$
1.326

$
1.249

$
1.134

Accumulation Unit Value at end of period
$
2.029

$
1.939

$
1.703

$
1.280

$
1.111

$
1.121

$
1.003

$
0.815

$
1.326

$
1.249

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

34

53

59

82

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.914

$
1.683

$
1.266

$
1.100

$
1.111

$
0.995

$
0.809

$
1.318

$
1.243

$
1.130

Accumulation Unit Value at end of period
$
2.001

$
1.914

$
1.683

$
1.266

$
1.100

$
1.111

$
0.995

$
0.809

$
1.318

$
1.243

Number of Accumulation Units outstanding at end of period (in thousands)
301

407

225

127

172

219

54

62

92

105

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.903

$
1.674

$
1.260

$
1.095

$
1.107

$
0.992

$
0.807

$
1.315

$
1.241

$
1.128

Accumulation Unit Value at end of period
$
1.989

$
1.903

$
1.674

$
1.260

$
1.095

$
1.107

$
0.992

$
0.807

$
1.315

$
1.241

Number of Accumulation Units outstanding at end of period (in thousands)
405

412

352

365

551

326

141

31

116

140

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.903

$
1.674

$
1.260

$
1.095

$
1.107

$
0.992

$
0.807

$
1.315

$
1.241

$
1.128

Accumulation Unit Value at end of period
$
1.989

$
1.903

$
1.674

$
1.260

$
1.095

$
1.107

$
0.992

$
0.807

$
1.315

$
1.241

Number of Accumulation Units outstanding at end of period (in thousands)
405

412

352

365

551

326

141

31

116

140

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.507

$
21.574

$
16.246

$
14.126

$
14.283

$
12.809

$
10.426

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.600

$
24.507

$
21.574

$
16.246

$
14.126

$
14.283

$
12.809

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

16

14

12

5

3

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.872

$
1.649

$
1.243

$
1.082

$
1.095

$
0.983

$
0.801

$
1.308

$
1.236

$
1.125

Accumulation Unit Value at end of period
$
1.953

$
1.872

$
1.649

$
1.243

$
1.082

$
1.095

$
0.983

$
0.801

$
1.308

$
1.236

Number of Accumulation Units outstanding at end of period (in thousands)
31

25

45

45

67

62

39

11

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.284

$
21.410

$
16.146

$
14.061

$
14.238

$
12.788

$
10.425

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.329

$
24.284

$
21.410

$
16.146

$
14.061

$
14.238

$
12.788

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.211

$
21.355

$
16.113

$
14.039

$
14.223

$
12.781

$
10.424

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.239

$
24.211

$
21.355

$
16.113

$
14.039

$
14.223

$
12.781

$
—

$
—

$
—



Hartford Life and Annuity Insurance Company
9

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
10.423

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.972

$
23.990

$
21.193

$
16.014

$
13.974

$
14.179

$
12.760

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Dividend and Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.455

$
2.207

$
1.698

$
1.517

$
1.520

$
1.363

$
1.110

$
1.667

$
1.564

$
1.319

Accumulation Unit Value at end of period
$
2.391

$
2.455

$
2.207

$
1.698

$
1.517

$
1.520

$
1.363

$
1.110

$
1.667

$
1.564

Number of Accumulation Units outstanding at end of period (in thousands)
7,409

9,070

11,974

17,734

24,723

35,244

48,321

60,344

79,874

94,746

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.400

$
2.160

$
1.664

$
1.490

$
1.495

$
1.342

$
1.095

$
1.647

$
1.547

$
1.306

Accumulation Unit Value at end of period
$
2.333

$
2.400

$
2.160

$
1.664

$
1.490

$
1.495

$
1.342

$
1.095

$
1.647

$
1.547

Number of Accumulation Units outstanding at end of period (in thousands)
11,611

14,978

21,133

32,068

46,957

66,956

82,112

93,125

103,592

113,106

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.388

$
2.150

$
1.658

$
1.485

$
1.490

$
1.339

$
1.092

$
1.645

$
1.545

$
1.306

Accumulation Unit Value at end of period
$
2.321

$
2.388

$
2.150

$
1.658

$
1.485

$
1.490

$
1.339

$
1.092

$
1.645

$
1.545

Number of Accumulation Units outstanding at end of period (in thousands)
449

457

473

324

333

325

361

441

1,586

1,717

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.334

$
2.105

$
1.625

$
1.458

$
1.465

$
1.319

$
1.077

$
1.624

$
1.528

$
1.294

Accumulation Unit Value at end of period
$
2.265

$
2.334

$
2.105

$
1.625

$
1.458

$
1.465

$
1.319

$
1.077

$
1.624

$
1.528

Number of Accumulation Units outstanding at end of period (in thousands)
778

866

743

754

1,004

979

2,310

3,594

6,728

8,821

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.334

$
2.105

$
1.625

$
1.458

$
1.465

$
1.319

$
1.077

$
1.624

$
1.528

$
1.294

Accumulation Unit Value at end of period
$
2.265

$
2.334

$
2.105

$
1.625

$
1.458

$
1.465

$
1.319

$
1.077

$
1.624

$
1.528

Number of Accumulation Units outstanding at end of period (in thousands)
778

866

743

754

1,004

979

2,310

3,594

6,728

8,821

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.291

$
2.069

$
1.600

$
1.437

$
1.447

$
1.304

$
1.067

$
1.611

$
1.518

$
1.287

Accumulation Unit Value at end of period
$
2.220

$
2.291

$
2.069

$
1.600

$
1.437

$
1.447

$
1.304

$
1.067

$
1.611

$
1.518

Number of Accumulation Units outstanding at end of period (in thousands)
8,066

8,854

8,930

6,896

7,658

8,013

7,389

5,515

5,558

6,842

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.291

$
2.069

$
1.600

$
1.437

$
1.447

$
1.304

$
1.067

$
1.611

$
1.518

$
1.287

Accumulation Unit Value at end of period
$
2.220

$
2.291

$
2.069

$
1.600

$
1.437

$
1.447

$
1.304

$
1.067

$
1.611

$
1.518

Number of Accumulation Units outstanding at end of period (in thousands)
8,066

8,854

8,930

6,896

7,658

8,013

7,389

5,515

5,558

6,842

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.277

$
2.057

$
1.592

$
1.430

$
1.441

$
1.299

$
1.064

$
1.607

$
1.515

$
1.285

Accumulation Unit Value at end of period
$
2.205

$
2.277

$
2.057

$
1.592

$
1.430

$
1.441

$
1.299

$
1.064

$
1.607

$
1.515

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

75

135

179

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 


10
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
2.248

$
2.033

$
1.575

$
1.416

$
1.428

$
1.289

$
1.056

$
1.598

$
1.508

$
1.280

Accumulation Unit Value at end of period
$
2.175

$
2.248

$
2.033

$
1.575

$
1.416

$
1.428

$
1.289

$
1.056

$
1.598

$
1.508

Number of Accumulation Units outstanding at end of period (in thousands)
971

950

432

552

373

349

781

1,483

909

180

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.235

$
2.022

$
1.567

$
1.410

$
1.423

$
1.285

$
1.053

$
1.594

$
1.505

$
1.278

Accumulation Unit Value at end of period
$
2.161

$
2.235

$
2.022

$
1.567

$
1.410

$
1.423

$
1.285

$
1.053

$
1.594

$
1.505

Number of Accumulation Units outstanding at end of period (in thousands)
1,932

1,829

1,750

1,646

1,690

1,045

490

13

249

324

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.235

$
2.022

$
1.567

$
1.410

$
1.423

$
1.285

$
1.053

$
1.594

$
1.505

$
1.278

Accumulation Unit Value at end of period
$
2.161

$
2.235

$
2.022

$
1.567

$
1.410

$
1.423

$
1.285

$
1.053

$
1.594

$
1.505

Number of Accumulation Units outstanding at end of period (in thousands)
1,932

1,829

1,750

1,646

1,690

1,045

490

13

249

324

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.874

$
19.805

$
15.354

$
13.824

$
13.955

$
12.607

$
10.342

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.140

$
21.874

$
19.805

$
15.354

$
13.824

$
13.955

$
12.607

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
56

58

73

59

78

41

13

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.198

$
1.992

$
1.546

$
1.393

$
1.408

$
1.273

$
1.046

$
1.584

$
1.498

$
1.274

Accumulation Unit Value at end of period
$
2.122

$
2.198

$
1.992

$
1.546

$
1.393

$
1.408

$
1.273

$
1.046

$
1.584

$
1.498

Number of Accumulation Units outstanding at end of period (in thousands)
226

235

171

104

123

102

127

147

20

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.675

$
19.654

$
15.260

$
13.760

$
13.911

$
12.587

$
10.341

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.916

$
21.675

$
19.654

$
15.260

$
13.760

$
13.911

$
12.587

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.609

$
19.604

$
15.229

$
13.739

$
13.897

$
12.580

$
10.340

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.842

$
21.609

$
19.604

$
15.229

$
13.739

$
13.897

$
12.580

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.412

$
19.455

$
15.135

$
13.675

$
13.853

$
12.559

$
10.339

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.621

$
21.412

$
19.455

$
15.135

$
13.675

$
13.853

$
12.559

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Global Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

$
1.840

Accumulation Unit Value at end of period
$
2.783

$
2.615

$
2.486

$
1.851

$
1.523

$
1.795

$
1.595

$
1.194

$
2.549

$
2.069

Number of Accumulation Units outstanding at end of period (in thousands)
926

1,212

1,231

1,888

2,626

4,214

5,579

6,965

8,544

11,173

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 


Hartford Life and Annuity Insurance Company
11

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
2.556

$
2.433

$
1.815

$
1.495

$
1.765

$
1.571

$
1.177

$
2.518

$
2.047

$
1.823

Accumulation Unit Value at end of period
$
2.716

$
2.556

$
2.433

$
1.815

$
1.495

$
1.765

$
1.571

$
1.177

$
2.518

$
2.047

Number of Accumulation Units outstanding at end of period (in thousands)
2,388

3,103

3,909

5,938

8,822

12,437

15,308

17,706

17,860

20,145

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.543

$
2.422

$
1.808

$
1.490

$
1.760

$
1.567

$
1.175

$
2.514

$
2.045

$
1.822

Accumulation Unit Value at end of period
$
2.701

$
2.543

$
2.422

$
1.808

$
1.490

$
1.760

$
1.567

$
1.175

$
2.514

$
2.045

Number of Accumulation Units outstanding at end of period (in thousands)
19

19

19

16

16

—

1

1

454

464

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.486

$
2.371

$
1.772

$
1.463

$
1.730

$
1.543

$
1.159

$
2.483

$
2.023

$
1.805

Accumulation Unit Value at end of period
$
2.636

$
2.486

$
2.371

$
1.772

$
1.463

$
1.730

$
1.543

$
1.159

$
2.483

$
2.023

Number of Accumulation Units outstanding at end of period (in thousands)
37

38

22

21

21

31

96

126

117

263

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.486

$
2.371

$
1.772

$
1.463

$
1.730

$
1.543

$
1.159

$
2.483

$
2.023

$
1.805

Accumulation Unit Value at end of period
$
2.636

$
2.486

$
2.371

$
1.772

$
1.463

$
1.730

$
1.543

$
1.159

$
2.483

$
2.023

Number of Accumulation Units outstanding at end of period (in thousands)
37

38

22

21

21

31

96

126

117

263

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.440

$
2.331

$
1.745

$
1.442

$
1.709

$
1.526

$
1.148

$
2.463

$
2.009

$
1.796

Accumulation Unit Value at end of period
$
2.584

$
2.440

$
2.331

$
1.745

$
1.442

$
1.709

$
1.526

$
1.148

$
2.463

$
2.009

Number of Accumulation Units outstanding at end of period (in thousands)
1,109

1,174

850

586

523

590

430

97

98

45

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.440

$
2.331

$
1.745

$
1.442

$
1.709

$
1.526

$
1.148

$
2.463

$
2.009

$
1.796

Accumulation Unit Value at end of period
$
2.584

$
2.440

$
2.331

$
1.745

$
1.442

$
1.709

$
1.526

$
1.148

$
2.463

$
2.009

Number of Accumulation Units outstanding at end of period (in thousands)
1,109

1,174

850

586

523

590

430

97

98

45

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.425

$
2.318

$
1.736

$
1.436

$
1.702

$
1.520

$
1.144

$
2.456

$
2.005

$
1.793

Accumulation Unit Value at end of period
$
2.566

$
2.425

$
2.318

$
1.736

$
1.436

$
1.702

$
1.520

$
1.144

$
2.456

$
2.005

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

6

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.394

$
2.290

$
1.717

$
1.422

$
1.687

$
1.508

$
1.136

$
2.442

$
1.995

$
1.786

Accumulation Unit Value at end of period
$
2.531

$
2.394

$
2.290

$
1.717

$
1.422

$
1.687

$
1.508

$
1.136

$
2.442

$
1.995

Number of Accumulation Units outstanding at end of period (in thousands)
159

171

50

30

32

56

41

3

1

3

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.380

$
2.278

$
1.709

$
1.415

$
1.680

$
1.503

$
1.133

$
2.436

$
1.992

$
1.784

Accumulation Unit Value at end of period
$
2.515

$
2.380

$
2.278

$
1.709

$
1.415

$
1.680

$
1.503

$
1.133

$
2.436

$
1.992

Number of Accumulation Units outstanding at end of period (in thousands)
200

183

159

104

195

128

78

6

6

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.380

$
2.278

$
1.709

$
1.415

$
1.680

$
1.503

$
1.133

$
2.436

$
1.992

$
1.784

Accumulation Unit Value at end of period
$
2.515

$
2.380

$
2.278

$
1.709

$
1.415

$
1.680

$
1.503

$
1.133

$
2.436

$
1.992

Number of Accumulation Units outstanding at end of period (in thousands)
200

183

159

104

195

128

78

6

6

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.070

$
21.138

$
15.861

$
13.145

$
15.613

$
13.976

$
10.538

$
—

$
—

$
—



12
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
23.314

$
22.070

$
21.138

$
15.861

$
13.145

$
15.613

$
13.976

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

1

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.341

$
2.244

$
1.686

$
1.398

$
1.663

$
1.490

$
1.125

$
2.422

$
1.983

$
1.778

Accumulation Unit Value at end of period
$
2.470

$
2.341

$
2.244

$
1.686

$
1.398

$
1.663

$
1.490

$
1.125

$
2.422

$
1.983

Number of Accumulation Units outstanding at end of period (in thousands)
30

43

31

20

26

5

3

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.869

$
20.977

$
15.764

$
13.084

$
15.564

$
13.953

$
10.537

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.067

$
21.869

$
20.977

$
15.764

$
13.084

$
15.564

$
13.953

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.803

$
20.923

$
15.732

$
13.064

$
15.547

$
13.945

$
10.536

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.985

$
21.803

$
20.923

$
15.732

$
13.064

$
15.547

$
13.945

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
10.535

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.742

$
21.604

$
20.764

$
15.635

$
13.003

$
15.499

$
13.923

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Growth Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

$
1.437

Accumulation Unit Value at end of period
$
2.977

$
2.705

$
2.406

$
1.799

$
1.439

$
1.603

$
1.384

$
1.084

$
2.026

$
1.586

Number of Accumulation Units outstanding at end of period (in thousands)
2,340

2,744

1,645

2,198

3,248

5,173

7,574

9,413

11,870

13,070

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.654

$
2.364

$
1.770

$
1.419

$
1.583

$
1.369

$
1.074

$
2.009

$
1.575

$
1.429

Accumulation Unit Value at end of period
$
2.917

$
2.654

$
2.364

$
1.770

$
1.419

$
1.583

$
1.369

$
1.074

$
2.009

$
1.575

Number of Accumulation Units outstanding at end of period (in thousands)
3,017

3,661

2,763

4,358

6,431

9,328

12,001

13,894

16,215

16,509

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.637

$
2.350

$
1.761

$
1.412

$
1.576

$
1.363

$
1.070

$
2.003

$
1.571

$
1.426

Accumulation Unit Value at end of period
$
2.897

$
2.637

$
2.350

$
1.761

$
1.412

$
1.576

$
1.363

$
1.070

$
2.003

$
1.571

Number of Accumulation Units outstanding at end of period (in thousands)
20

25

22

25

29

45

63

58

63

95

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.588

$
2.309

$
1.733

$
1.392

$
1.556

$
1.348

$
1.059

$
1.986

$
1.561

$
1.419

Accumulation Unit Value at end of period
$
2.838

$
2.588

$
2.309

$
1.733

$
1.392

$
1.556

$
1.348

$
1.059

$
1.986

$
1.561

Number of Accumulation Units outstanding at end of period (in thousands)
184

197

170

202

223

251

430

483

780

1,307

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.588

$
2.309

$
1.733

$
1.392

$
1.556

$
1.348

$
1.059

$
1.986

$
1.561

$
1.419

Accumulation Unit Value at end of period
$
2.838

$
2.588

$
2.309

$
1.733

$
1.392

$
1.556

$
1.348

$
1.059

$
1.986

$
1.561



Hartford Life and Annuity Insurance Company
13

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
184

197

170

202

223

251

430

483

780

1,307

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.540

$
2.270

$
1.706

$
1.372

$
1.536

$
1.333

$
1.049

$
1.970

$
1.550

$
1.411

Accumulation Unit Value at end of period
$
2.782

$
2.540

$
2.270

$
1.706

$
1.372

$
1.536

$
1.333

$
1.049

$
1.970

$
1.550

Number of Accumulation Units outstanding at end of period (in thousands)
2,339

2,602

1,542

1,155

1,181

1,707

1,519

982

1,315

1,381

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.540

$
2.270

$
1.706

$
1.372

$
1.536

$
1.333

$
1.049

$
1.970

$
1.550

$
1.411

Accumulation Unit Value at end of period
$
2.782

$
2.540

$
2.270

$
1.706

$
1.372

$
1.536

$
1.333

$
1.049

$
1.970

$
1.550

Number of Accumulation Units outstanding at end of period (in thousands)
2,339

2,602

1,542

1,155

1,181

1,707

1,519

982

1,315

1,381

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.524

$
2.257

$
1.697

$
1.366

$
1.530

$
1.328

$
1.046

$
1.965

$
1.547

$
1.409

Accumulation Unit Value at end of period
$
2.763

$
2.524

$
2.257

$
1.697

$
1.366

$
1.530

$
1.328

$
1.046

$
1.965

$
1.547

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

41

46

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.492

$
2.231

$
1.679

$
1.352

$
1.516

$
1.318

$
1.039

$
1.953

$
1.539

$
1.404

Accumulation Unit Value at end of period
$
2.725

$
2.492

$
2.231

$
1.679

$
1.352

$
1.516

$
1.318

$
1.039

$
1.953

$
1.539

Number of Accumulation Units outstanding at end of period (in thousands)
296

246

299

88

103

856

1,676

1,816

2,011

1,413

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.477

$
2.219

$
1.671

$
1.346

$
1.510

$
1.313

$
1.036

$
1.949

$
1.537

$
1.402

Accumulation Unit Value at end of period
$
2.708

$
2.477

$
2.219

$
1.671

$
1.346

$
1.510

$
1.313

$
1.036

$
1.949

$
1.537

Number of Accumulation Units outstanding at end of period (in thousands)
459

461

209

148

147

103

58

5

98

134

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.477

$
2.219

$
1.671

$
1.346

$
1.510

$
1.313

$
1.036

$
1.949

$
1.537

$
1.402

Accumulation Unit Value at end of period
$
2.708

$
2.477

$
2.219

$
1.671

$
1.346

$
1.510

$
1.313

$
1.036

$
1.949

$
1.537

Number of Accumulation Units outstanding at end of period (in thousands)
459

461

209

148

147

103

58

5

98

134

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.146

$
22.531

$
16.976

$
13.686

$
15.361

$
13.363

$
10.545

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.472

$
25.146

$
22.531

$
16.976

$
13.686

$
15.361

$
13.363

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
27

22

19

13

16

15

8

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.437

$
2.186

$
1.648

$
1.330

$
1.495

$
1.302

$
1.028

$
1.937

$
1.530

$
1.398

Accumulation Unit Value at end of period
$
2.660

$
2.437

$
2.186

$
1.648

$
1.330

$
1.495

$
1.302

$
1.028

$
1.937

$
1.530

Number of Accumulation Units outstanding at end of period (in thousands)
82

110

63

20

21

—

42

44

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.917

$
22.360

$
16.872

$
13.623

$
15.312

$
13.341

$
10.543

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.181

$
24.917

$
22.360

$
16.872

$
13.623

$
15.312

$
13.341

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.841

$
22.303

$
16.837

$
13.601

$
15.296

$
13.333

$
10.543

$
—

$
—

$
—



14
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
27.085

$
24.841

$
22.303

$
16.837

$
13.601

$
15.296

$
13.333

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
10.541

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
26.798

$
24.615

$
22.133

$
16.734

$
13.538

$
15.248

$
13.311

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Healthcare HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

$
1.935

Accumulation Unit Value at end of period
$
5.512

$
4.943

$
3.938

$
2.633

$
2.216

$
2.072

$
1.964

$
1.625

$
2.216

$
2.119

Number of Accumulation Units outstanding at end of period (in thousands)
210

247

312

470

680

1,056

1,626

2,260

3,427

4,231

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.835

$
3.858

$
2.583

$
2.177

$
2.039

$
1.936

$
1.604

$
2.190

$
2.098

$
1.918

Accumulation Unit Value at end of period
$
5.384

$
4.835

$
3.858

$
2.583

$
2.177

$
2.039

$
1.936

$
1.604

$
2.190

$
2.098

Number of Accumulation Units outstanding at end of period (in thousands)
67

79

115

199

321

428

602

790

995

1,148

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.807

$
3.838

$
2.571

$
2.168

$
2.032

$
1.929

$
1.599

$
2.185

$
2.094

$
1.916

Accumulation Unit Value at end of period
$
5.350

$
4.807

$
3.838

$
2.571

$
2.168

$
2.032

$
1.929

$
1.599

$
2.185

$
2.094

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

12

12

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.702

$
3.760

$
2.522

$
2.130

$
1.999

$
1.901

$
1.578

$
2.160

$
2.073

$
1.900

Accumulation Unit Value at end of period
$
5.226

$
4.702

$
3.760

$
2.522

$
2.130

$
1.999

$
1.901

$
1.578

$
2.160

$
2.073

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

11

113

155

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.702

$
3.760

$
2.522

$
2.130

$
1.999

$
1.901

$
1.578

$
2.160

$
2.073

$
1.900

Accumulation Unit Value at end of period
$
5.226

$
4.702

$
3.760

$
2.522

$
2.130

$
1.999

$
1.901

$
1.578

$
2.160

$
2.073

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

11

113

155

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.616

$
3.696

$
2.483

$
2.100

$
1.974

$
1.880

$
1.563

$
2.143

$
2.060

$
1.890

Accumulation Unit Value at end of period
$
5.122

$
4.616

$
3.696

$
2.483

$
2.100

$
1.974

$
1.880

$
1.563

$
2.143

$
2.060

Number of Accumulation Units outstanding at end of period (in thousands)
186

209

196

136

149

160

116

73

12

4

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.616

$
3.696

$
2.483

$
2.100

$
1.974

$
1.880

$
1.563

$
2.143

$
2.060

$
1.890

Accumulation Unit Value at end of period
$
5.122

$
4.616

$
3.696

$
2.483

$
2.100

$
1.974

$
1.880

$
1.563

$
2.143

$
2.060

Number of Accumulation Units outstanding at end of period (in thousands)
186

209

196

136

149

160

116

73

12

4

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.587

$
3.675

$
2.470

$
2.090

$
1.966

$
1.873

$
1.558

$
2.137

$
2.055

$
1.887

Accumulation Unit Value at end of period
$
5.088

$
4.587

$
3.675

$
2.470

$
2.090

$
1.966

$
1.873

$
1.558

$
2.137

$
2.055

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

2



Hartford Life and Annuity Insurance Company
15

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.529

$
3.632

$
2.444

$
2.070

$
1.949

$
1.859

$
1.548

$
2.124

$
2.045

$
1.880

Accumulation Unit Value at end of period
$
5.018

$
4.529

$
3.632

$
2.444

$
2.070

$
1.949

$
1.859

$
1.548

$
2.124

$
2.045

Number of Accumulation Units outstanding at end of period (in thousands)
29

32

26

75

28

28

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.502

$
3.613

$
2.432

$
2.061

$
1.941

$
1.853

$
1.543

$
2.119

$
2.042

$
1.877

Accumulation Unit Value at end of period
$
4.986

$
4.502

$
3.613

$
2.432

$
2.061

$
1.941

$
1.853

$
1.543

$
2.119

$
2.042

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

35

83

15

—

1

1

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.502

$
3.613

$
2.432

$
2.061

$
1.941

$
1.853

$
1.543

$
2.119

$
2.042

$
1.877

Accumulation Unit Value at end of period
$
4.986

$
4.502

$
3.613

$
2.432

$
2.061

$
1.941

$
1.853

$
1.543

$
2.119

$
2.042

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

35

83

15

—

1

1

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.939

$
25.641

$
17.270

$
14.643

$
13.798

$
13.176

$
10.981

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
35.354

$
31.939

$
25.641

$
17.270

$
14.643

$
13.798

$
13.176

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.429

$
3.559

$
2.399

$
2.036

$
1.921

$
1.836

$
1.532

$
2.107

$
2.032

$
1.871

Accumulation Unit Value at end of period
$
4.897

$
4.429

$
3.559

$
2.399

$
2.036

$
1.921

$
1.836

$
1.532

$
2.107

$
2.032

Number of Accumulation Units outstanding at end of period (in thousands)
15

15

15

15

16

15

—

3

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.648

$
25.446

$
17.165

$
14.575

$
13.755

$
13.154

$
10.980

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.980

$
31.648

$
25.446

$
17.165

$
14.575

$
13.755

$
13.154

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.552

$
25.381

$
17.129

$
14.552

$
13.741

$
13.147

$
10.979

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.856

$
31.552

$
25.381

$
17.129

$
14.552

$
13.741

$
13.147

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
10.977

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.487

$
31.265

$
25.188

$
17.025

$
14.485

$
13.697

$
13.125

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford High Yield HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

$
1.273

Accumulation Unit Value at end of period
$
2.045

$
2.169

$
2.147

$
2.047

$
1.818

$
1.763

$
1.541

$
1.039

$
1.411

$
1.394

Number of Accumulation Units outstanding at end of period (in thousands)
1,699

2,117

3,109

4,331

6,125

8,853

12,239

11,725

15,673

18,413



16
Hartford Life and Annuity Insurance Company

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.120

$
2.101

$
2.007

$
1.785

$
1.733

$
1.517

$
1.025

$
1.394

$
1.379

$
1.261

Accumulation Unit Value at end of period
$
1.996

$
2.120

$
2.101

$
2.007

$
1.785

$
1.733

$
1.517

$
1.025

$
1.394

$
1.379

Number of Accumulation Units outstanding at end of period (in thousands)
1,656

2,198

3,435

5,128

7,351

10,398

11,733

10,123

9,741

10,636

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.110

$
2.092

$
1.999

$
1.779

$
1.728

$
1.513

$
1.023

$
1.392

$
1.377

$
1.260

Accumulation Unit Value at end of period
$
1.985

$
2.110

$
2.092

$
1.999

$
1.779

$
1.728

$
1.513

$
1.023

$
1.392

$
1.377

Number of Accumulation Units outstanding at end of period (in thousands)
60

59

72

51

54

71

51

56

293

327

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.062

$
2.048

$
1.960

$
1.746

$
1.699

$
1.490

$
1.009

$
1.375

$
1.362

$
1.248

Accumulation Unit Value at end of period
$
1.937

$
2.062

$
2.048

$
1.960

$
1.746

$
1.699

$
1.490

$
1.009

$
1.375

$
1.362

Number of Accumulation Units outstanding at end of period (in thousands)
29

64

60

98

97

153

423

572

1,030

1,493

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.062

$
2.048

$
1.960

$
1.746

$
1.699

$
1.490

$
1.009

$
1.375

$
1.362

$
1.248

Accumulation Unit Value at end of period
$
1.937

$
2.062

$
2.048

$
1.960

$
1.746

$
1.699

$
1.490

$
1.009

$
1.375

$
1.362

Number of Accumulation Units outstanding at end of period (in thousands)
29

64

60

98

97

153

423

572

1,030

1,493

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.024

$
2.013

$
1.929

$
1.722

$
1.678

$
1.474

$
0.999

$
1.364

$
1.353

$
1.242

Accumulation Unit Value at end of period
$
1.898

$
2.024

$
2.013

$
1.929

$
1.722

$
1.678

$
1.474

$
0.999

$
1.364

$
1.353

Number of Accumulation Units outstanding at end of period (in thousands)
1,320

1,466

1,689

1,315

1,465

1,411

1,390

674

723

782

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.024

$
2.013

$
1.929

$
1.722

$
1.678

$
1.474

$
0.999

$
1.364

$
1.353

$
1.242

Accumulation Unit Value at end of period
$
1.898

$
2.024

$
2.013

$
1.929

$
1.722

$
1.678

$
1.474

$
0.999

$
1.364

$
1.353

Number of Accumulation Units outstanding at end of period (in thousands)
1,320

1,466

1,689

1,315

1,465

1,411

1,390

674

723

782

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.011

$
2.001

$
1.919

$
1.714

$
1.671

$
1.468

$
0.996

$
1.360

$
1.350

$
1.240

Accumulation Unit Value at end of period
$
1.886

$
2.011

$
2.001

$
1.919

$
1.714

$
1.671

$
1.468

$
0.996

$
1.360

$
1.350

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

21

27

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.986

$
1.978

$
1.899

$
1.697

$
1.656

$
1.457

$
0.989

$
1.352

$
1.344

$
1.235

Accumulation Unit Value at end of period
$
1.860

$
1.986

$
1.978

$
1.899

$
1.697

$
1.656

$
1.457

$
0.989

$
1.352

$
1.344

Number of Accumulation Units outstanding at end of period (in thousands)
112

141

164

66

118

87

99

112

147

122

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.974

$
1.967

$
1.890

$
1.690

$
1.650

$
1.452

$
0.987

$
1.349

$
1.341

$
1.234

Accumulation Unit Value at end of period
$
1.848

$
1.974

$
1.967

$
1.890

$
1.690

$
1.650

$
1.452

$
0.987

$
1.349

$
1.341

Number of Accumulation Units outstanding at end of period (in thousands)
458

374

404

381

400

233

46

12

97

168

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.974

$
1.967

$
1.890

$
1.690

$
1.650

$
1.452

$
0.987

$
1.349

$
1.341

$
1.234

Accumulation Unit Value at end of period
$
1.848

$
1.974

$
1.967

$
1.890

$
1.690

$
1.650

$
1.452

$
0.987

$
1.349

$
1.341

Number of Accumulation Units outstanding at end of period (in thousands)
458

374

404

381

400

233

46

12

97

168

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.723

$
20.662

$
19.855

$
17.764

$
17.354

$
15.281

$
10.387

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.389

$
20.723

$
20.662

$
19.855

$
17.764

$
17.354

$
15.281

$
—

$
—

$
—



Hartford Life and Annuity Insurance Company
17

Number of Accumulation Units outstanding at end of period (in thousands)
25

26

27

19

17

12

5

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.942

$
1.938

$
1.864

$
1.670

$
1.633

$
1.439

$
0.979

$
1.341

$
1.335

$
1.230

Accumulation Unit Value at end of period
$
1.815

$
1.942

$
1.938

$
1.864

$
1.670

$
1.633

$
1.439

$
0.979

$
1.341

$
1.335

Number of Accumulation Units outstanding at end of period (in thousands)
15

5

54

10

11

18

18

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.534

$
20.504

$
19.733

$
17.682

$
17.299

$
15.256

$
10.385

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.184

$
20.534

$
20.504

$
19.733

$
17.682

$
17.299

$
15.256

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.472

$
20.452

$
19.693

$
17.655

$
17.281

$
15.247

$
10.385

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.116

$
20.472

$
20.452

$
19.693

$
17.655

$
17.281

$
15.247

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
10.383

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
18.914

$
20.286

$
20.297

$
19.573

$
17.573

$
17.227

$
15.222

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford International Opportunities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

$
1.159

Accumulation Unit Value at end of period
$
1.718

$
1.712

$
1.808

$
1.510

$
1.275

$
1.505

$
1.334

$
1.015

$
1.784

$
1.421

Number of Accumulation Units outstanding at end of period (in thousands)
2,690

3,156

4,031

5,862

8,404

12,719

10,470

12,954

15,019

17,722

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.674

$
1.770

$
1.480

$
1.252

$
1.480

$
1.314

$
1.001

$
1.762

$
1.406

$
1.148

Accumulation Unit Value at end of period
$
1.677

$
1.674

$
1.770

$
1.480

$
1.252

$
1.480

$
1.314

$
1.001

$
1.762

$
1.406

Number of Accumulation Units outstanding at end of period (in thousands)
8,465

10,626

14,022

21,602

31,661

41,832

33,082

39,914

42,294

49,294

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.665

$
1.762

$
1.475

$
1.248

$
1.475

$
1.311

$
0.999

$
1.760

$
1.405

$
1.148

Accumulation Unit Value at end of period
$
1.668

$
1.665

$
1.762

$
1.475

$
1.248

$
1.475

$
1.311

$
0.999

$
1.760

$
1.405

Number of Accumulation Units outstanding at end of period (in thousands)
28

29

32

23

24

37

29

16

104

92

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.628

$
1.725

$
1.446

$
1.225

$
1.451

$
1.291

$
0.985

$
1.738

$
1.389

$
1.137

Accumulation Unit Value at end of period
$
1.628

$
1.628

$
1.725

$
1.446

$
1.225

$
1.451

$
1.291

$
0.985

$
1.738

$
1.389

Number of Accumulation Units outstanding at end of period (in thousands)
176

146

93

97

97

127

196

304

247

261

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.628

$
1.725

$
1.446

$
1.225

$
1.451

$
1.291

$
0.985

$
1.738

$
1.389

$
1.137

Accumulation Unit Value at end of period
$
1.628

$
1.628

$
1.725

$
1.446

$
1.225

$
1.451

$
1.291

$
0.985

$
1.738

$
1.389

Number of Accumulation Units outstanding at end of period (in thousands)
176

146

93

97

97

127

196

304

247

261

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.598

$
1.696

$
1.423

$
1.208

$
1.433

$
1.277

$
0.976

$
1.724

$
1.380

$
1.131



18
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
1.595

$
1.598

$
1.696

$
1.423

$
1.208

$
1.433

$
1.277

$
0.976

$
1.724

$
1.380

Number of Accumulation Units outstanding at end of period (in thousands)
3,053

3,289

3,199

2,030

2,044

2,020

655

134

183

13

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.598

$
1.696

$
1.423

$
1.208

$
1.433

$
1.277

$
0.976

$
1.724

$
1.380

$
1.131

Accumulation Unit Value at end of period
$
1.595

$
1.598

$
1.696

$
1.423

$
1.208

$
1.433

$
1.277

$
0.976

$
1.724

$
1.380

Number of Accumulation Units outstanding at end of period (in thousands)
3,053

3,289

3,199

2,030

2,044

2,020

655

134

183

13

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.588

$
1.686

$
1.416

$
1.202

$
1.427

$
1.272

$
0.973

$
1.719

$
1.377

$
1.129

Accumulation Unit Value at end of period
$
1.585

$
1.588

$
1.686

$
1.416

$
1.202

$
1.427

$
1.272

$
0.973

$
1.719

$
1.377

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.568

$
1.666

$
1.401

$
1.191

$
1.414

$
1.262

$
0.966

$
1.709

$
1.371

$
1.125

Accumulation Unit Value at end of period
$
1.563

$
1.568

$
1.666

$
1.401

$
1.191

$
1.414

$
1.262

$
0.966

$
1.709

$
1.371

Number of Accumulation Units outstanding at end of period (in thousands)
139

133

154

186

128

119

57

23

29

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.558

$
1.657

$
1.394

$
1.185

$
1.409

$
1.258

$
0.963

$
1.705

$
1.368

$
1.124

Accumulation Unit Value at end of period
$
1.553

$
1.558

$
1.657

$
1.394

$
1.185

$
1.409

$
1.258

$
0.963

$
1.705

$
1.368

Number of Accumulation Units outstanding at end of period (in thousands)
815

778

763

765

966

586

160

2

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.558

$
1.657

$
1.394

$
1.185

$
1.409

$
1.258

$
0.963

$
1.705

$
1.368

$
1.124

Accumulation Unit Value at end of period
$
1.553

$
1.558

$
1.657

$
1.394

$
1.185

$
1.409

$
1.258

$
0.963

$
1.705

$
1.368

Number of Accumulation Units outstanding at end of period (in thousands)
815

778

763

765

966

586

160

2

—

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.254

$
18.358

$
15.447

$
13.144

$
15.627

$
13.960

$
10.698

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.187

$
17.254

$
18.358

$
15.447

$
13.144

$
15.627

$
13.960

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

12

5

7

7

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.533

$
1.633

$
1.375

$
1.171

$
1.394

$
1.246

$
0.956

$
1.695

$
1.362

$
1.120

Accumulation Unit Value at end of period
$
1.525

$
1.533

$
1.633

$
1.375

$
1.171

$
1.394

$
1.246

$
0.956

$
1.695

$
1.362

Number of Accumulation Units outstanding at end of period (in thousands)
137

119

76

47

65

45

20

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.097

$
18.219

$
15.352

$
13.083

$
15.578

$
13.937

$
10.696

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.005

$
17.097

$
18.219

$
15.352

$
13.083

$
15.578

$
13.937

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.045

$
18.172

$
15.321

$
13.063

$
15.561

$
13.929

$
10.696

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.945

$
17.045

$
18.172

$
15.321

$
13.063

$
15.561

$
13.929

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



Hartford Life and Annuity Insurance Company
19

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
10.694

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.765

$
16.890

$
18.034

$
15.227

$
13.002

$
15.513

$
13.906

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford MidCap HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

$
2.698

Accumulation Unit Value at end of period
$
5.443

$
5.438

$
4.957

$
3.599

$
3.058

$
3.371

$
2.772

$
2.149

$
3.373

$
2.970

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

646

4,155

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.315

$
4.852

$
3.528

$
3.003

$
3.315

$
2.730

$
2.119

$
3.332

$
2.938

$
2.673

Accumulation Unit Value at end of period
$
5.312

$
5.315

$
4.852

$
3.528

$
3.003

$
3.315

$
2.730

$
2.119

$
3.332

$
2.938

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

60

437

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.289

$
4.830

$
3.514

$
2.992

$
3.305

$
2.723

$
2.115

$
3.327

$
2.935

$
2.671

Accumulation Unit Value at end of period
$
5.283

$
5.289

$
4.830

$
3.514

$
2.992

$
3.305

$
2.723

$
2.115

$
3.327

$
2.935

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

444

445

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.169

$
4.728

$
3.445

$
2.938

$
3.250

$
2.682

$
2.086

$
3.286

$
2.903

$
2.646

Accumulation Unit Value at end of period
$
5.155

$
5.169

$
4.728

$
3.445

$
2.938

$
3.250

$
2.682

$
2.086

$
3.286

$
2.903

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

81

157

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.169

$
4.728

$
3.445

$
2.938

$
3.250

$
2.682

$
2.086

$
3.286

$
2.903

$
2.646

Accumulation Unit Value at end of period
$
5.155

$
5.169

$
4.728

$
3.445

$
2.938

$
3.250

$
2.682

$
2.086

$
3.286

$
2.903

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

81

157

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.074

$
4.648

$
3.391

$
2.897

$
3.209

$
2.652

$
2.066

$
3.259

$
2.884

$
2.633

Accumulation Unit Value at end of period
$
5.053

$
5.074

$
4.648

$
3.391

$
2.897

$
3.209

$
2.652

$
2.066

$
3.259

$
2.884

Number of Accumulation Units outstanding at end of period (in thousands)
346

341

312

256

220

164

38

—

17

135

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.074

$
4.648

$
3.391

$
2.897

$
3.209

$
2.652

$
2.066

$
3.259

$
2.884

$
2.633

Accumulation Unit Value at end of period
$
5.053

$
5.074

$
4.648

$
3.391

$
2.897

$
3.209

$
2.652

$
2.066

$
3.259

$
2.884

Number of Accumulation Units outstanding at end of period (in thousands)
346

341

312

256

220

164

38

—

17

135

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
5.042

$
4.621

$
3.374

$
2.883

$
3.196

$
2.642

$
2.059

$
3.250

$
2.877

$
2.628

Accumulation Unit Value at end of period
$
5.019

$
5.042

$
4.621

$
3.374

$
2.883

$
3.196

$
2.642

$
2.059

$
3.250

$
2.877

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

2

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.978

$
4.567

$
3.337

$
2.855

$
3.168

$
2.622

$
2.046

$
3.232

$
2.864

$
2.618



20
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
4.950

$
4.978

$
4.567

$
3.337

$
2.855

$
3.168

$
2.622

$
2.046

$
3.232

$
2.864

Number of Accumulation Units outstanding at end of period (in thousands)
117

119

106

50

57

57

42

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.949

$
4.543

$
3.321

$
2.843

$
3.156

$
2.613

$
2.040

$
3.224

$
2.858

$
2.615

Accumulation Unit Value at end of period
$
4.919

$
4.949

$
4.543

$
3.321

$
2.843

$
3.156

$
2.613

$
2.040

$
3.224

$
2.858

Number of Accumulation Units outstanding at end of period (in thousands)
12

12

13

14

14

29

—

—

1

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.949

$
4.543

$
3.321

$
2.843

$
3.156

$
2.613

$
2.040

$
3.224

$
2.858

$
2.615

Accumulation Unit Value at end of period
$
4.919

$
4.949

$
4.543

$
3.321

$
2.843

$
3.156

$
2.613

$
2.040

$
3.224

$
2.858

Number of Accumulation Units outstanding at end of period (in thousands)
12

12

13

14

14

29

—

—

1

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.437

$
23.359

$
17.087

$
14.631

$
16.251

$
13.464

$
10.515

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.268

$
25.437

$
23.359

$
17.087

$
14.631

$
16.251

$
13.464

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
4.868

$
4.475

$
3.277

$
2.809

$
3.123

$
2.590

$
2.024

$
3.205

$
2.846

$
2.607

Accumulation Unit Value at end of period
$
4.831

$
4.868

$
4.475

$
3.277

$
2.809

$
3.123

$
2.590

$
2.024

$
3.205

$
2.846

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

1

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.205

$
23.182

$
16.982

$
14.563

$
16.200

$
13.441

$
10.513

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.001

$
25.205

$
23.182

$
16.982

$
14.563

$
16.200

$
13.441

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.129

$
23.123

$
16.947

$
14.541

$
16.183

$
13.434

$
10.513

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.912

$
25.129

$
23.123

$
16.947

$
14.541

$
16.183

$
13.434

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
10.511

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.648

$
24.900

$
22.946

$
16.844

$
14.473

$
16.132

$
13.412

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford MidCap Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

$
1.486

Accumulation Unit Value at end of period
$
2.723

$
2.798

$
2.625

$
1.978

$
1.607

$
1.784

$
1.453

$
1.023

$
1.736

$
1.726

Number of Accumulation Units outstanding at end of period (in thousands)
1,583

1,961

2,624

3,747

4,930

7,028

9,340

12,270

16,555

20,376

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.742

$
2.576

$
1.944

$
1.581

$
1.758

$
1.434

$
1.011

$
1.719

$
1.711

$
1.476



Hartford Life and Annuity Insurance Company
21

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
2.664

$
2.742

$
2.576

$
1.944

$
1.581

$
1.758

$
1.434

$
1.011

$
1.719

$
1.711

Number of Accumulation Units outstanding at end of period (in thousands)
913

1,143

1,736

2,391

3,303

5,179

5,382

6,708

7,097

8,236

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.723

$
2.559

$
1.932

$
1.573

$
1.750

$
1.428

$
1.007

$
1.713

$
1.706

$
1.472

Accumulation Unit Value at end of period
$
2.645

$
2.723

$
2.559

$
1.932

$
1.573

$
1.750

$
1.428

$
1.007

$
1.713

$
1.706

Number of Accumulation Units outstanding at end of period (in thousands)
69

69

71

11

11

16

12

22

286

312

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.668

$
2.511

$
1.899

$
1.548

$
1.725

$
1.409

$
0.996

$
1.696

$
1.692

$
1.462

Accumulation Unit Value at end of period
$
2.587

$
2.668

$
2.511

$
1.899

$
1.548

$
1.725

$
1.409

$
0.996

$
1.696

$
1.692

Number of Accumulation Units outstanding at end of period (in thousands)
98

115

84

97

127

247

521

826

1,566

2,297

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.668

$
2.511

$
1.899

$
1.548

$
1.725

$
1.409

$
0.996

$
1.696

$
1.692

$
1.462

Accumulation Unit Value at end of period
$
2.587

$
2.668

$
2.511

$
1.899

$
1.548

$
1.725

$
1.409

$
0.996

$
1.696

$
1.692

Number of Accumulation Units outstanding at end of period (in thousands)
98

115

84

97

127

247

521

826

1,566

2,297

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.618

$
2.469

$
1.869

$
1.526

$
1.703

$
1.394

$
0.986

$
1.683

$
1.681

$
1.455

Accumulation Unit Value at end of period
$
2.535

$
2.618

$
2.469

$
1.869

$
1.526

$
1.703

$
1.394

$
0.986

$
1.683

$
1.681

Number of Accumulation Units outstanding at end of period (in thousands)
1,613

1,797

1,929

1,464

1,428

1,621

866

946

713

677

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.618

$
2.469

$
1.869

$
1.526

$
1.703

$
1.394

$
0.986

$
1.683

$
1.681

$
1.455

Accumulation Unit Value at end of period
$
2.535

$
2.618

$
2.469

$
1.869

$
1.526

$
1.703

$
1.394

$
0.986

$
1.683

$
1.681

Number of Accumulation Units outstanding at end of period (in thousands)
1,613

1,797

1,929

1,464

1,428

1,621

866

946

713

677

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.602

$
2.454

$
1.860

$
1.519

$
1.696

$
1.388

$
0.983

$
1.678

$
1.677

$
1.452

Accumulation Unit Value at end of period
$
2.518

$
2.602

$
2.454

$
1.860

$
1.519

$
1.696

$
1.388

$
0.983

$
1.678

$
1.677

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

6

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.569

$
2.426

$
1.840

$
1.504

$
1.681

$
1.378

$
0.976

$
1.668

$
1.669

$
1.447

Accumulation Unit Value at end of period
$
2.484

$
2.569

$
2.426

$
1.840

$
1.504

$
1.681

$
1.378

$
0.976

$
1.668

$
1.669

Number of Accumulation Units outstanding at end of period (in thousands)
434

471

532

87

500

844

116

91

124

102

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.554

$
2.413

$
1.831

$
1.498

$
1.675

$
1.373

$
0.973

$
1.664

$
1.666

$
1.445

Accumulation Unit Value at end of period
$
2.468

$
2.554

$
2.413

$
1.831

$
1.498

$
1.675

$
1.373

$
0.973

$
1.664

$
1.666

Number of Accumulation Units outstanding at end of period (in thousands)
543

469

453

337

445

327

34

6

46

52

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.554

$
2.413

$
1.831

$
1.498

$
1.675

$
1.373

$
0.973

$
1.664

$
1.666

$
1.445

Accumulation Unit Value at end of period
$
2.468

$
2.554

$
2.413

$
1.831

$
1.498

$
1.675

$
1.373

$
0.973

$
1.664

$
1.666

Number of Accumulation Units outstanding at end of period (in thousands)
543

469

453

337

445

327

34

6

46

52

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.801

$
27.220

$
20.666

$
16.916

$
18.920

$
15.521

$
11.010

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.819

$
28.801

$
27.220

$
20.666

$
16.916

$
18.920

$
15.521

$
—

$
—

$
—



22
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
12

15

18

12

16

7

7

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.512

$
2.377

$
1.806

$
1.480

$
1.657

$
1.361

$
0.966

$
1.654

$
1.659

$
1.440

Accumulation Unit Value at end of period
$
2.424

$
2.512

$
2.377

$
1.806

$
1.480

$
1.657

$
1.361

$
0.966

$
1.654

$
1.659

Number of Accumulation Units outstanding at end of period (in thousands)
71

79

78

62

61

77

21

18

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.539

$
27.013

$
20.540

$
16.837

$
18.861

$
15.496

$
11.008

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.525

$
28.539

$
27.013

$
20.540

$
16.837

$
18.861

$
15.496

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.452

$
26.944

$
20.498

$
16.811

$
18.841

$
15.487

$
11.008

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.427

$
28.452

$
26.944

$
20.498

$
16.811

$
18.841

$
15.487

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
11.006

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
27.137

$
28.193

$
26.739

$
20.372

$
16.733

$
18.782

$
15.462

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Small Company HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

$
1.589

Accumulation Unit Value at end of period
$
2.702

$
2.988

$
2.833

$
1.992

$
1.748

$
1.836

$
1.502

$
1.179

$
2.015

$
1.791

Number of Accumulation Units outstanding at end of period (in thousands)
534

683

843

1,079

1,533

2,724

4,062

5,323

6,858

10,129

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.920

$
2.773

$
1.953

$
1.717

$
1.806

$
1.479

$
1.163

$
1.991

$
1.772

$
1.574

Accumulation Unit Value at end of period
$
2.637

$
2.920

$
2.773

$
1.953

$
1.717

$
1.806

$
1.479

$
1.163

$
1.991

$
1.772

Number of Accumulation Units outstanding at end of period (in thousands)
452

614

894

1,208

1,795

2,604

3,128

3,752

3,625

4,086

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.906

$
2.760

$
1.945

$
1.711

$
1.800

$
1.475

$
1.161

$
1.988

$
1.770

$
1.573

Accumulation Unit Value at end of period
$
2.622

$
2.906

$
2.760

$
1.945

$
1.711

$
1.800

$
1.475

$
1.161

$
1.988

$
1.770

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

10

90

116

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.840

$
2.702

$
1.906

$
1.679

$
1.770

$
1.453

$
1.145

$
1.963

$
1.751

$
1.559

Accumulation Unit Value at end of period
$
2.559

$
2.840

$
2.702

$
1.906

$
1.679

$
1.770

$
1.453

$
1.145

$
1.963

$
1.751

Number of Accumulation Units outstanding at end of period (in thousands)
17

22

26

34

96

90

190

333

606

824

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.840

$
2.702

$
1.906

$
1.679

$
1.770

$
1.453

$
1.145

$
1.963

$
1.751

$
1.559

Accumulation Unit Value at end of period
$
2.559

$
2.840

$
2.702

$
1.906

$
1.679

$
1.770

$
1.453

$
1.145

$
1.963

$
1.751

Number of Accumulation Units outstanding at end of period (in thousands)
17

22

26

34

96

90

190

333

606

824



Hartford Life and Annuity Insurance Company
23

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.788

$
2.656

$
1.877

$
1.656

$
1.748

$
1.437

$
1.134

$
1.947

$
1.739

$
1.551

Accumulation Unit Value at end of period
$
2.508

$
2.788

$
2.656

$
1.877

$
1.656

$
1.748

$
1.437

$
1.134

$
1.947

$
1.739

Number of Accumulation Units outstanding at end of period (in thousands)
721

937

994

474

469

514

449

359

433

484

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.788

$
2.656

$
1.877

$
1.656

$
1.748

$
1.437

$
1.134

$
1.947

$
1.739

$
1.551

Accumulation Unit Value at end of period
$
2.508

$
2.788

$
2.656

$
1.877

$
1.656

$
1.748

$
1.437

$
1.134

$
1.947

$
1.739

Number of Accumulation Units outstanding at end of period (in thousands)
721

937

994

474

469

514

449

359

433

484

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.771

$
2.641

$
1.867

$
1.648

$
1.741

$
1.431

$
1.130

$
1.942

$
1.735

$
1.548

Accumulation Unit Value at end of period
$
2.491

$
2.771

$
2.641

$
1.867

$
1.648

$
1.741

$
1.431

$
1.130

$
1.942

$
1.735

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

2

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.735

$
2.610

$
1.847

$
1.632

$
1.726

$
1.420

$
1.122

$
1.931

$
1.727

$
1.542

Accumulation Unit Value at end of period
$
2.457

$
2.735

$
2.610

$
1.847

$
1.632

$
1.726

$
1.420

$
1.122

$
1.931

$
1.727

Number of Accumulation Units outstanding at end of period (in thousands)
125

135

73

84

418

79

87

34

12

34

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.719

$
2.596

$
1.838

$
1.625

$
1.719

$
1.416

$
1.119

$
1.926

$
1.724

$
1.540

Accumulation Unit Value at end of period
$
2.442

$
2.719

$
2.596

$
1.838

$
1.625

$
1.719

$
1.416

$
1.119

$
1.926

$
1.724

Number of Accumulation Units outstanding at end of period (in thousands)
203

161

185

148

124

99

37

3

5

3

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.719

$
2.596

$
1.838

$
1.625

$
1.719

$
1.416

$
1.119

$
1.926

$
1.724

$
1.540

Accumulation Unit Value at end of period
$
2.442

$
2.719

$
2.596

$
1.838

$
1.625

$
1.719

$
1.416

$
1.119

$
1.926

$
1.724

Number of Accumulation Units outstanding at end of period (in thousands)
203

161

185

148

124

99

37

3

5

3

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.332

$
24.197

$
17.141

$
15.160

$
16.044

$
13.219

$
10.457

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.734

$
25.332

$
24.197

$
17.141

$
15.160

$
16.044

$
13.219

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
8

9

9

9

10

4

3

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.675

$
2.558

$
1.814

$
1.606

$
1.701

$
1.403

$
1.111

$
1.915

$
1.716

$
1.535

Accumulation Unit Value at end of period
$
2.398

$
2.675

$
2.558

$
1.814

$
1.606

$
1.701

$
1.403

$
1.111

$
1.915

$
1.716

Number of Accumulation Units outstanding at end of period (in thousands)
11

21

57

10

11

25

—

8

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.101

$
24.013

$
17.036

$
15.089

$
15.994

$
13.197

$
10.456

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.493

$
25.101

$
24.013

$
17.036

$
15.089

$
15.994

$
13.197

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.025

$
23.952

$
17.001

$
15.066

$
15.977

$
13.190

$
10.455

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.414

$
25.025

$
23.952

$
17.001

$
15.066

$
15.977

$
13.190

$
—

$
—

$
—



24
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
10.454

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.176

$
24.797

$
23.770

$
16.897

$
14.996

$
15.927

$
13.168

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Small/Mid Cap Equity HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
10.247

$
—

$
—

Accumulation Unit Value at end of period
$
15.183

$
16.178

$
15.607

$
11.521

$
10.093

$
10.364

$
8.360

$
5.739

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
28

39

51

64

118

181

209

35

—

—

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.013

$
15.471

$
11.438

$
10.035

$
10.320

$
8.337

$
5.732

$
10.244

$
—

$
—

Accumulation Unit Value at end of period
$
15.005

$
16.013

$
15.471

$
11.438

$
10.035

$
10.320

$
8.337

$
5.732

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
49

76

115

131

232

414

342

138

—

—

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.958

$
15.426

$
11.410

$
10.016

$
10.305

$
8.330

$
5.730

$
10.243

$
—

$
—

Accumulation Unit Value at end of period
$
14.946

$
15.958

$
15.426

$
11.410

$
10.016

$
10.305

$
8.330

$
5.730

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

1

1

1

—

—

—

—

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.795

$
15.292

$
11.328

$
9.959

$
10.261

$
8.307

$
5.723

$
10.241

$
—

$
—

Accumulation Unit Value at end of period
$
14.772

$
15.795

$
15.292

$
11.328

$
9.959

$
10.261

$
8.307

$
5.723

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

—

1

1

1

4

2

—

—

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.795

$
15.292

$
11.328

$
9.959

$
10.261

$
8.307

$
5.723

$
10.241

$
—

$
—

Accumulation Unit Value at end of period
$
14.772

$
15.795

$
15.292

$
11.328

$
9.959

$
10.261

$
8.307

$
5.723

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

—

1

1

1

4

2

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.634

$
15.158

$
11.246

$
9.901

$
10.218

$
8.284

$
5.715

$
10.238

$
—

$
—

Accumulation Unit Value at end of period
$
14.599

$
15.634

$
15.158

$
11.246

$
9.901

$
10.218

$
8.284

$
5.715

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
166

159

180

98

108

129

73

1

—

—

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.634

$
15.158

$
11.246

$
9.901

$
10.218

$
8.284

$
5.715

$
10.238

$
—

$
—

Accumulation Unit Value at end of period
$
14.599

$
15.634

$
15.158

$
11.246

$
9.901

$
10.218

$
8.284

$
5.715

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
166

159

180

98

108

129

73

1

—

—

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.581

$
15.114

$
11.219

$
9.882

$
10.203

$
8.276

$
5.713

$
10.237

$
—

$
—

Accumulation Unit Value at end of period
$
14.542

$
15.581

$
15.114

$
11.219

$
9.882

$
10.203

$
8.276

$
5.713

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 


Hartford Life and Annuity Insurance Company
25

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
15.475

$
15.026

$
11.165

$
9.844

$
10.174

$
8.261

$
5.708

$
10.236

$
—

$
—

Accumulation Unit Value at end of period
$
14.428

$
15.475

$
15.026

$
11.165

$
9.844

$
10.174

$
8.261

$
5.708

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

10

2

1

11

4

16

—

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.422

$
14.982

$
11.138

$
9.826

$
10.160

$
8.254

$
5.706

$
10.235

$
—

$
—

Accumulation Unit Value at end of period
$
14.372

$
15.422

$
14.982

$
11.138

$
9.826

$
10.160

$
8.254

$
5.706

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

11

6

2

6

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.422

$
14.982

$
11.138

$
9.826

$
10.160

$
8.254

$
5.706

$
10.235

$
—

$
—

Accumulation Unit Value at end of period
$
14.372

$
15.422

$
14.982

$
11.138

$
9.826

$
10.160

$
8.254

$
5.706

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

11

6

2

6

—

—

—

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.786

$
27.008

$
20.087

$
17.730

$
18.342

$
14.908

$
10.311

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.882

$
27.786

$
27.008

$
20.087

$
17.730

$
18.342

$
14.908

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

2

1

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.264

$
14.852

$
11.057

$
9.769

$
10.117

$
8.231

$
5.699

$
10.232

$
—

$
—

Accumulation Unit Value at end of period
$
14.204

$
15.264

$
14.852

$
11.057

$
9.769

$
10.117

$
8.231

$
5.699

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

9

—

—

3

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.534

$
26.802

$
19.964

$
17.648

$
18.285

$
14.884

$
10.310

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.608

$
27.534

$
26.802

$
19.964

$
17.648

$
18.285

$
14.884

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.450

$
26.734

$
19.923

$
17.621

$
18.265

$
14.875

$
10.309

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.517

$
27.450

$
26.734

$
19.923

$
17.621

$
18.265

$
14.875

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
10.308

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
25.247

$
27.200

$
26.531

$
19.801

$
17.539

$
18.208

$
14.851

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford SmallCap Growth HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

$
1.339

Accumulation Unit Value at end of period
$
2.540

$
2.593

$
2.487

$
1.742

$
1.507

$
1.508

$
1.121

$
0.840

$
1.363

$
1.410

Number of Accumulation Units outstanding at end of period (in thousands)
1,195

1,481

1,858

2,567

3,984

6,423

8,873

10,579

12,927

14,693

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 


26
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
2.544

$
2.444

$
1.715

$
1.485

$
1.488

$
1.108

$
0.832

$
1.352

$
1.400

$
1.332

Accumulation Unit Value at end of period
$
2.488

$
2.544

$
2.444

$
1.715

$
1.485

$
1.488

$
1.108

$
0.832

$
1.352

$
1.400

Number of Accumulation Units outstanding at end of period (in thousands)
2,879

3,761

4,986

7,905

12,051

18,305

23,510

26,912

29,836

31,735

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.528

$
2.429

$
1.706

$
1.478

$
1.482

$
1.104

$
0.829

$
1.348

$
1.397

$
1.330

Accumulation Unit Value at end of period
$
2.471

$
2.528

$
2.429

$
1.706

$
1.478

$
1.482

$
1.104

$
0.829

$
1.348

$
1.397

Number of Accumulation Units outstanding at end of period (in thousands)
28

31

31

36

39

53

87

81

82

102

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.480

$
2.387

$
1.679

$
1.456

$
1.463

$
1.091

$
0.821

$
1.337

$
1.387

$
1.322

Accumulation Unit Value at end of period
$
2.421

$
2.480

$
2.387

$
1.679

$
1.456

$
1.463

$
1.091

$
0.821

$
1.337

$
1.387

Number of Accumulation Units outstanding at end of period (in thousands)
20

42

54

64

72

71

144

262

521

864

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.480

$
2.387

$
1.679

$
1.456

$
1.463

$
1.091

$
0.821

$
1.337

$
1.387

$
1.322

Accumulation Unit Value at end of period
$
2.421

$
2.480

$
2.387

$
1.679

$
1.456

$
1.463

$
1.091

$
0.821

$
1.337

$
1.387

Number of Accumulation Units outstanding at end of period (in thousands)
20

42

54

64

72

71

144

262

521

864

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.434

$
2.347

$
1.652

$
1.436

$
1.445

$
1.079

$
0.813

$
1.326

$
1.378

$
1.316

Accumulation Unit Value at end of period
$
2.373

$
2.434

$
2.347

$
1.652

$
1.436

$
1.445

$
1.079

$
0.813

$
1.326

$
1.378

Number of Accumulation Units outstanding at end of period (in thousands)
1,044

1,014

1,787

1,007

1,053

1,180

1,113

839

858

981

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.434

$
2.347

$
1.652

$
1.436

$
1.445

$
1.079

$
0.813

$
1.326

$
1.378

$
1.316

Accumulation Unit Value at end of period
$
2.373

$
2.434

$
2.347

$
1.652

$
1.436

$
1.445

$
1.079

$
0.813

$
1.326

$
1.378

Number of Accumulation Units outstanding at end of period (in thousands)
1,044

1,014

1,787

1,007

1,053

1,180

1,113

839

858

981

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.419

$
2.333

$
1.644

$
1.429

$
1.438

$
1.075

$
0.811

$
1.322

$
1.375

$
1.313

Accumulation Unit Value at end of period
$
2.357

$
2.419

$
2.333

$
1.644

$
1.429

$
1.438

$
1.075

$
0.811

$
1.322

$
1.375

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

4

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.389

$
2.306

$
1.626

$
1.415

$
1.426

$
1.067

$
0.805

$
1.315

$
1.368

$
1.308

Accumulation Unit Value at end of period
$
2.325

$
2.389

$
2.306

$
1.626

$
1.415

$
1.426

$
1.067

$
0.805

$
1.315

$
1.368

Number of Accumulation Units outstanding at end of period (in thousands)
193

190

139

98

117

199

142

39

85

1,413

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.375

$
2.294

$
1.618

$
1.409

$
1.420

$
1.063

$
0.803

$
1.311

$
1.366

$
1.307

Accumulation Unit Value at end of period
$
2.310

$
2.375

$
2.294

$
1.618

$
1.409

$
1.420

$
1.063

$
0.803

$
1.311

$
1.366

Number of Accumulation Units outstanding at end of period (in thousands)
471

429

463

356

517

327

52

1

29

40

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.375

$
2.294

$
1.618

$
1.409

$
1.420

$
1.063

$
0.803

$
1.311

$
1.366

$
1.307

Accumulation Unit Value at end of period
$
2.310

$
2.375

$
2.294

$
1.618

$
1.409

$
1.420

$
1.063

$
0.803

$
1.311

$
1.366

Number of Accumulation Units outstanding at end of period (in thousands)
471

429

463

356

517

327

52

1

29

40

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.399

$
30.343

$
21.421

$
18.662

$
18.819

$
14.094

$
10.647

$
—

$
—

$
—



Hartford Life and Annuity Insurance Company
27

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
30.532

$
31.399

$
30.343

$
21.421

$
18.662

$
18.819

$
14.094

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

13

11

6

1

1

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.336

$
2.259

$
1.597

$
1.392

$
1.406

$
1.054

$
0.797

$
1.304

$
1.360

$
1.303

Accumulation Unit Value at end of period
$
2.269

$
2.336

$
2.259

$
1.597

$
1.392

$
1.406

$
1.054

$
0.797

$
1.304

$
1.360

Number of Accumulation Units outstanding at end of period (in thousands)
5

—

78

6

12

31

13

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.113

$
30.112

$
21.290

$
18.575

$
18.760

$
14.071

$
10.645

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.209

$
31.113

$
30.112

$
21.290

$
18.575

$
18.760

$
14.071

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.019

$
30.035

$
21.246

$
18.547

$
18.741

$
14.063

$
10.645

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.102

$
31.019

$
30.035

$
21.246

$
18.547

$
18.741

$
14.063

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
10.643

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
29.783

$
30.736

$
29.807

$
21.116

$
18.461

$
18.682

$
14.040

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Stock HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

$
0.998

Accumulation Unit Value at end of period
$
1.649

$
1.629

$
1.486

$
1.140

$
1.012

$
1.039

$
0.918

$
0.659

$
1.176

$
1.127

Number of Accumulation Units outstanding at end of period (in thousands)
3,490

4,143

5,514

8,332

12,089

17,395

23,956

30,377

39,592

52,761

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.592

$
1.454

$
1.118

$
0.994

$
1.021

$
0.904

$
0.650

$
1.161

$
1.115

$
0.989

Accumulation Unit Value at end of period
$
1.609

$
1.592

$
1.454

$
1.118

$
0.994

$
1.021

$
0.904

$
0.650

$
1.161

$
1.115

Number of Accumulation Units outstanding at end of period (in thousands)
7,738

9,689

13,826

20,227

30,905

44,568

55,757

65,756

69,008

76,641

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.584

$
1.448

$
1.114

$
0.990

$
1.018

$
0.902

$
0.648

$
1.160

$
1.114

$
0.988

Accumulation Unit Value at end of period
$
1.600

$
1.584

$
1.448

$
1.114

$
0.990

$
1.018

$
0.902

$
0.648

$
1.160

$
1.114

Number of Accumulation Units outstanding at end of period (in thousands)
249

308

315

319

326

358

370

378

958

1,066

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.548

$
1.417

$
1.092

$
0.972

$
1.001

$
0.888

$
0.639

$
1.145

$
1.102

$
0.979

Accumulation Unit Value at end of period
$
1.562

$
1.548

$
1.417

$
1.092

$
0.972

$
1.001

$
0.888

$
0.639

$
1.145

$
1.102

Number of Accumulation Units outstanding at end of period (in thousands)
173

143

212

228

245

383

756

1,689

3,150

4,131

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.548

$
1.417

$
1.092

$
0.972

$
1.001

$
0.888

$
0.639

$
1.145

$
1.102

$
0.979

Accumulation Unit Value at end of period
$
1.562

$
1.548

$
1.417

$
1.092

$
0.972

$
1.001

$
0.888

$
0.639

$
1.145

$
1.102



28
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
173

143

212

228

245

383

756

1,689

3,150

4,131

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.520

$
1.393

$
1.075

$
0.959

$
0.989

$
0.879

$
0.633

$
1.136

$
1.095

$
0.974

Accumulation Unit Value at end of period
$
1.531

$
1.520

$
1.393

$
1.075

$
0.959

$
0.989

$
0.879

$
0.633

$
1.136

$
1.095

Number of Accumulation Units outstanding at end of period (in thousands)
3,231

3,416

4,204

3,243

3,558

3,762

3,181

3,167

3,101

4,076

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.520

$
1.393

$
1.075

$
0.959

$
0.989

$
0.879

$
0.633

$
1.136

$
1.095

$
0.974

Accumulation Unit Value at end of period
$
1.531

$
1.520

$
1.393

$
1.075

$
0.959

$
0.989

$
0.879

$
0.633

$
1.136

$
1.095

Number of Accumulation Units outstanding at end of period (in thousands)
3,231

3,416

4,204

3,243

3,558

3,762

3,181

3,167

3,101

4,076

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.511

$
1.385

$
1.069

$
0.954

$
0.985

$
0.875

$
0.631

$
1.133

$
1.092

$
0.972

Accumulation Unit Value at end of period
$
1.520

$
1.511

$
1.385

$
1.069

$
0.954

$
0.985

$
0.875

$
0.631

$
1.133

$
1.092

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

24

41

70

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.491

$
1.369

$
1.058

$
0.945

$
0.976

$
0.869

$
0.627

$
1.127

$
1.087

$
0.969

Accumulation Unit Value at end of period
$
1.500

$
1.491

$
1.369

$
1.058

$
0.945

$
0.976

$
0.869

$
0.627

$
1.127

$
1.087

Number of Accumulation Units outstanding at end of period (in thousands)
551

557

274

232

253

320

335

251

107

56

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.483

$
1.362

$
1.053

$
0.941

$
0.972

$
0.866

$
0.625

$
1.124

$
1.085

$
0.967

Accumulation Unit Value at end of period
$
1.490

$
1.483

$
1.362

$
1.053

$
0.941

$
0.972

$
0.866

$
0.625

$
1.124

$
1.085

Number of Accumulation Units outstanding at end of period (in thousands)
917

900

816

557

692

513

234

10

70

64

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.483

$
1.362

$
1.053

$
0.941

$
0.972

$
0.866

$
0.625

$
1.124

$
1.085

$
0.967

Accumulation Unit Value at end of period
$
1.490

$
1.483

$
1.362

$
1.053

$
0.941

$
0.972

$
0.866

$
0.625

$
1.124

$
1.085

Number of Accumulation Units outstanding at end of period (in thousands)
917

900

816

557

692

513

234

10

70

64

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.429

$
22.446

$
17.359

$
15.521

$
16.050

$
14.299

$
10.333

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.540

$
24.429

$
22.446

$
17.359

$
15.521

$
16.050

$
14.299

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

4

8

5

8

3

3

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.458

$
1.341

$
1.038

$
0.929

$
0.962

$
0.858

$
0.621

$
1.117

$
1.080

$
0.964

Accumulation Unit Value at end of period
$
1.464

$
1.458

$
1.341

$
1.038

$
0.929

$
0.962

$
0.858

$
0.621

$
1.117

$
1.080

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

4

23

24

41

35

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.206

$
22.276

$
17.253

$
15.449

$
16.000

$
14.276

$
10.331

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.281

$
24.206

$
22.276

$
17.253

$
15.449

$
16.000

$
14.276

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.133

$
22.219

$
17.218

$
15.426

$
15.983

$
14.268

$
10.331

$
—

$
—

$
—



Hartford Life and Annuity Insurance Company
29

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
24.195

$
24.133

$
22.219

$
17.218

$
15.426

$
15.983

$
14.268

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
10.329

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
23.938

$
23.913

$
22.050

$
17.112

$
15.354

$
15.933

$
14.244

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—


Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Total Return Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

$
1.408

Accumulation Unit Value at end of period
$
1.814

$
1.853

$
1.776

$
1.828

$
1.726

$
1.637

$
1.546

$
1.364

$
1.499

$
1.454

Number of Accumulation Units outstanding at end of period (in thousands)
4,816

5,906

7,800

11,659

14,842

22,959

31,267

34,083

42,139

44,222

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.811

$
1.739

$
1.792

$
1.694

$
1.610

$
1.522

$
1.346

$
1.481

$
1.438

$
1.395

Accumulation Unit Value at end of period
$
1.771

$
1.811

$
1.739

$
1.792

$
1.694

$
1.610

$
1.522

$
1.346

$
1.481

$
1.438

Number of Accumulation Units outstanding at end of period (in thousands)
9,368

12,250

16,709

25,267

35,655

51,603

59,984

62,043

72,291

69,476

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.802

$
1.731

$
1.785

$
1.688

$
1.605

$
1.518

$
1.343

$
1.479

$
1.437

$
1.395

Accumulation Unit Value at end of period
$
1.761

$
1.802

$
1.731

$
1.785

$
1.688

$
1.605

$
1.518

$
1.343

$
1.479

$
1.437

Number of Accumulation Units outstanding at end of period (in thousands)
188

183

293

259

258

253

180

242

435

411

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.761

$
1.694

$
1.750

$
1.658

$
1.578

$
1.495

$
1.324

$
1.460

$
1.421

$
1.382

Accumulation Unit Value at end of period
$
1.719

$
1.761

$
1.694

$
1.750

$
1.658

$
1.578

$
1.495

$
1.324

$
1.460

$
1.421

Number of Accumulation Units outstanding at end of period (in thousands)
744

818

542

666

664

945

1,825

1,304

2,101

2,758

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.761

$
1.694

$
1.750

$
1.658

$
1.578

$
1.495

$
1.324

$
1.460

$
1.421

$
1.382

Accumulation Unit Value at end of period
$
1.719

$
1.761

$
1.694

$
1.750

$
1.658

$
1.578

$
1.495

$
1.324

$
1.460

$
1.421

Number of Accumulation Units outstanding at end of period (in thousands)
744

818

542

666

664

945

1,825

1,304

2,101

2,758

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.729

$
1.665

$
1.723

$
1.634

$
1.558

$
1.479

$
1.312

$
1.449

$
1.412

$
1.374

Accumulation Unit Value at end of period
$
1.684

$
1.729

$
1.665

$
1.723

$
1.634

$
1.558

$
1.479

$
1.312

$
1.449

$
1.412

Number of Accumulation Units outstanding at end of period (in thousands)
5,043

5,510

5,097

4,638

4,251

4,439

3,856

2,331

1,983

2,451

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.729

$
1.665

$
1.723

$
1.634

$
1.558

$
1.479

$
1.312

$
1.449

$
1.412

$
1.374

Accumulation Unit Value at end of period
$
1.684

$
1.729

$
1.665

$
1.723

$
1.634

$
1.558

$
1.479

$
1.312

$
1.449

$
1.412

Number of Accumulation Units outstanding at end of period (in thousands)
5,043

5,510

5,097

4,638

4,251

4,439

3,856

2,331

1,983

2,451

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.718

$
1.656

$
1.714

$
1.627

$
1.552

$
1.473

$
1.307

$
1.445

$
1.409

$
1.372

Accumulation Unit Value at end of period
$
1.673

$
1.718

$
1.656

$
1.714

$
1.627

$
1.552

$
1.473

$
1.307

$
1.445

$
1.409



30
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

2

21

68

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.696

$
1.637

$
1.695

$
1.611

$
1.538

$
1.462

$
1.299

$
1.436

$
1.402

$
1.367

Accumulation Unit Value at end of period
$
1.650

$
1.696

$
1.637

$
1.695

$
1.611

$
1.538

$
1.462

$
1.299

$
1.436

$
1.402

Number of Accumulation Units outstanding at end of period (in thousands)
602

662

548

347

361

362

297

495

303

109

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.686

$
1.628

$
1.687

$
1.604

$
1.532

$
1.457

$
1.295

$
1.433

$
1.400

$
1.365

Accumulation Unit Value at end of period
$
1.640

$
1.686

$
1.628

$
1.687

$
1.604

$
1.532

$
1.457

$
1.295

$
1.433

$
1.400

Number of Accumulation Units outstanding at end of period (in thousands)
1,035

1,045

1,053

902

797

703

325

52

217

187

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.686

$
1.628

$
1.687

$
1.604

$
1.532

$
1.457

$
1.295

$
1.433

$
1.400

$
1.365

Accumulation Unit Value at end of period
$
1.640

$
1.686

$
1.628

$
1.687

$
1.604

$
1.532

$
1.457

$
1.295

$
1.433

$
1.400

Number of Accumulation Units outstanding at end of period (in thousands)
1,035

1,045

1,053

902

797

703

325

52

217

187

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.317

$
12.863

$
13.338

$
12.685

$
12.126

$
11.535

$
10.258

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.945

$
13.317

$
12.863

$
13.338

$
12.685

$
12.126

$
11.535

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
33

35

45

67

65

51

18

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.659

$
1.604

$
1.664

$
1.585

$
1.516

$
1.444

$
1.285

$
1.424

$
1.393

$
1.361

Accumulation Unit Value at end of period
$
1.611

$
1.659

$
1.604

$
1.664

$
1.585

$
1.516

$
1.444

$
1.285

$
1.424

$
1.393

Number of Accumulation Units outstanding at end of period (in thousands)
182

324

232

183

131

55

44

43

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.196

$
12.765

$
13.256

$
12.626

$
12.088

$
11.516

$
10.256

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.808

$
13.196

$
12.765

$
13.256

$
12.626

$
12.088

$
11.516

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.156

$
12.733

$
13.229

$
12.607

$
12.075

$
11.510

$
10.256

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.762

$
13.156

$
12.733

$
13.229

$
12.607

$
12.075

$
11.510

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
10.254

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.627

$
13.036

$
12.636

$
13.148

$
12.548

$
12.037

$
11.491

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



Hartford Life and Annuity Insurance Company
31

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford U.S. Government Securities HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

$
1.084

Accumulation Unit Value at end of period
$
1.205

$
1.205

$
1.189

$
1.228

$
1.202

$
1.164

$
1.138

$
1.117

$
1.142

$
1.110

Number of Accumulation Units outstanding at end of period (in thousands)
2,331

2,790

4,065

5,902

7,641

11,970

16,778

22,219

16,928

16,296

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.182

$
1.169

$
1.208

$
1.185

$
1.148

$
1.125

$
1.106

$
1.132

$
1.102

$
1.078

Accumulation Unit Value at end of period
$
1.181

$
1.182

$
1.169

$
1.208

$
1.185

$
1.148

$
1.125

$
1.106

$
1.132

$
1.102

Number of Accumulation Units outstanding at end of period (in thousands)
6,378

7,623

10,034

14,390

19,998

29,385

35,957

40,717

40,745

36,090

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.174

$
1.162

$
1.202

$
1.179

$
1.144

$
1.121

$
1.103

$
1.129

$
1.100

$
1.076

Accumulation Unit Value at end of period
$
1.173

$
1.174

$
1.162

$
1.202

$
1.179

$
1.144

$
1.121

$
1.103

$
1.129

$
1.100

Number of Accumulation Units outstanding at end of period (in thousands)
178

173

164

140

133

126

138

173

211

195

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.152

$
1.142

$
1.183

$
1.162

$
1.129

$
1.108

$
1.092

$
1.119

$
1.092

$
1.070

Accumulation Unit Value at end of period
$
1.149

$
1.152

$
1.142

$
1.183

$
1.162

$
1.129

$
1.108

$
1.092

$
1.119

$
1.092

Number of Accumulation Units outstanding at end of period (in thousands)
333

388

368

473

861

1,082

1,798

2,377

1,501

1,811

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.152

$
1.142

$
1.183

$
1.162

$
1.129

$
1.108

$
1.092

$
1.119

$
1.092

$
1.070

Accumulation Unit Value at end of period
$
1.149

$
1.152

$
1.142

$
1.183

$
1.162

$
1.129

$
1.108

$
1.092

$
1.119

$
1.092

Number of Accumulation Units outstanding at end of period (in thousands)
333

388

368

473

861

1,082

1,798

2,377

1,501

1,811

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.131

$
1.122

$
1.165

$
1.146

$
1.115

$
1.096

$
1.081

$
1.110

$
1.085

$
1.064

Accumulation Unit Value at end of period
$
1.126

$
1.131

$
1.122

$
1.165

$
1.146

$
1.115

$
1.096

$
1.081

$
1.110

$
1.085

Number of Accumulation Units outstanding at end of period (in thousands)
2,686

2,772

2,804

2,896

2,643

2,609

2,121

1,793

1,417

1,779

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.131

$
1.122

$
1.165

$
1.146

$
1.115

$
1.096

$
1.081

$
1.110

$
1.085

$
1.064

Accumulation Unit Value at end of period
$
1.126

$
1.131

$
1.122

$
1.165

$
1.146

$
1.115

$
1.096

$
1.081

$
1.110

$
1.085

Number of Accumulation Units outstanding at end of period (in thousands)
2,686

2,772

2,804

2,896

2,643

2,609

2,121

1,793

1,417

1,779

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.124

$
1.116

$
1.159

$
1.140

$
1.110

$
1.091

$
1.078

$
1.107

$
1.083

$
1.062

Accumulation Unit Value at end of period
$
1.118

$
1.124

$
1.116

$
1.159

$
1.140

$
1.110

$
1.091

$
1.078

$
1.107

$
1.083

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

12

11

17

42

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.110

$
1.103

$
1.146

$
1.129

$
1.100

$
1.083

$
1.070

$
1.101

$
1.077

$
1.058

Accumulation Unit Value at end of period
$
1.103

$
1.110

$
1.103

$
1.146

$
1.129

$
1.100

$
1.083

$
1.070

$
1.101

$
1.077

Number of Accumulation Units outstanding at end of period (in thousands)
574

1,008

903

1,824

1,307

191

438

804

423

70

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.097

$
1.141

$
1.124

$
1.096

$
1.079

$
1.067

$
1.098

$
1.075

$
1.057

Accumulation Unit Value at end of period
$
1.096

$
1.103

$
1.097

$
1.141

$
1.124

$
1.096

$
1.079

$
1.067

$
1.098

$
1.075

Number of Accumulation Units outstanding at end of period (in thousands)
578

542

438

405

470

406

96

10

110

134



32
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.097

$
1.141

$
1.124

$
1.096

$
1.079

$
1.067

$
1.098

$
1.075

$
1.057

Accumulation Unit Value at end of period
$
1.096

$
1.103

$
1.097

$
1.141

$
1.124

$
1.096

$
1.079

$
1.067

$
1.098

$
1.075

Number of Accumulation Units outstanding at end of period (in thousands)
578

542

438

405

470

406

96

10

110

134

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.335

$
10.281

$
10.695

$
10.548

$
10.287

$
10.136

$
10.028

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.263

$
10.335

$
10.281

$
10.695

$
10.548

$
10.287

$
10.136

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
34

36

39

50

32

12

13

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.085

$
1.081

$
1.125

$
1.111

$
1.084

$
1.070

$
1.059

$
1.092

$
1.071

$
1.054

Accumulation Unit Value at end of period
$
1.077

$
1.085

$
1.081

$
1.125

$
1.111

$
1.084

$
1.070

$
1.059

$
1.092

$
1.071

Number of Accumulation Units outstanding at end of period (in thousands)
124

126

39

13

40

23

39

57

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.241

$
10.202

$
10.629

$
10.499

$
10.254

$
10.120

$
10.026

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.154

$
10.241

$
10.202

$
10.629

$
10.499

$
10.254

$
10.120

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.210

$
10.176

$
10.607

$
10.483

$
10.244

$
10.114

$
10.026

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.118

$
10.210

$
10.176

$
10.607

$
10.483

$
10.244

$
10.114

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
10.024

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
10.011

$
10.117

$
10.099

$
10.542

$
10.434

$
10.211

$
10.097

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

$
1.123

Accumulation Unit Value at end of period
$
1.088

$
1.103

$
1.118

$
1.135

$
1.152

$
1.170

$
1.188

$
1.205

$
1.197

$
1.158

Number of Accumulation Units outstanding at end of period (in thousands)
1,481

1,581

2,232

4,053

8,276

8,032

12,666

24,084

19,191

11,813

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.078

$
1.095

$
1.113

$
1.132

$
1.150

$
1.169

$
1.188

$
1.183

$
1.146

$
1.112

Accumulation Unit Value at end of period
$
1.062

$
1.078

$
1.095

$
1.113

$
1.132

$
1.150

$
1.169

$
1.188

$
1.183

$
1.146

Number of Accumulation Units outstanding at end of period (in thousands)
2,862

3,567

6,177

11,281

16,209

17,421

23,862

44,515

19,595

12,480

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.073

$
1.090

$
1.109

$
1.128

$
1.147

$
1.167

$
1.186

$
1.181

$
1.145

$
1.112

Accumulation Unit Value at end of period
$
1.056

$
1.073

$
1.090

$
1.109

$
1.128

$
1.147

$
1.167

$
1.186

$
1.181

$
1.145

Number of Accumulation Units outstanding at end of period (in thousands)
275

261

281

254

227

215

178

460

219

233

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 


Hartford Life and Annuity Insurance Company
33

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
1.048

$
1.067

$
1.087

$
1.107

$
1.128

$
1.149

$
1.169

$
1.166

$
1.132

$
1.102

Accumulation Unit Value at end of period
$
1.030

$
1.048

$
1.067

$
1.087

$
1.107

$
1.128

$
1.149

$
1.169

$
1.166

$
1.132

Number of Accumulation Units outstanding at end of period (in thousands)
47

95

38

78

96

211

856

1,576

848

955

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.048

$
1.067

$
1.087

$
1.107

$
1.128

$
1.149

$
1.169

$
1.166

$
1.132

$
1.102

Accumulation Unit Value at end of period
$
1.030

$
1.048

$
1.067

$
1.087

$
1.107

$
1.128

$
1.149

$
1.169

$
1.166

$
1.132

Number of Accumulation Units outstanding at end of period (in thousands)
47

95

38

78

96

211

856

1,576

848

955

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.029

$
1.049

$
1.070

$
1.092

$
1.114

$
1.136

$
1.158

$
1.157

$
1.125

$
1.096

Accumulation Unit Value at end of period
$
1.010

$
1.029

$
1.049

$
1.070

$
1.092

$
1.114

$
1.136

$
1.158

$
1.157

$
1.125

Number of Accumulation Units outstanding at end of period (in thousands)
1,209

1,585

2,248

2,613

2,925

1,895

1,927

1,926

1,364

724

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.029

$
1.049

$
1.070

$
1.092

$
1.114

$
1.136

$
1.158

$
1.157

$
1.125

$
1.096

Accumulation Unit Value at end of period
$
1.010

$
1.029

$
1.049

$
1.070

$
1.092

$
1.114

$
1.136

$
1.158

$
1.157

$
1.125

Number of Accumulation Units outstanding at end of period (in thousands)
1,209

1,585

2,248

2,613

2,925

1,895

1,927

1,926

1,364

724

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.023

$
1.043

$
1.064

$
1.086

$
1.109

$
1.132

$
1.155

$
1.154

$
1.122

$
1.094

Accumulation Unit Value at end of period
$
1.003

$
1.023

$
1.043

$
1.064

$
1.086

$
1.109

$
1.132

$
1.155

$
1.154

$
1.122

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

32

32

54

70

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.010

$
1.031

$
1.053

$
1.076

$
1.099

$
1.123

$
1.147

$
1.147

$
1.117

$
1.090

Accumulation Unit Value at end of period
$
0.989

$
1.010

$
1.031

$
1.053

$
1.076

$
1.099

$
1.123

$
1.147

$
1.147

$
1.117

Number of Accumulation Units outstanding at end of period (in thousands)
185

168

153

30

24

29

156

528

220

70

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.004

$
1.025

$
1.048

$
1.071

$
1.095

$
1.119

$
1.143

$
1.145

$
1.115

$
1.088

Accumulation Unit Value at end of period
$
0.983

$
1.004

$
1.025

$
1.048

$
1.071

$
1.095

$
1.119

$
1.143

$
1.145

$
1.115

Number of Accumulation Units outstanding at end of period (in thousands)
213

204

271

250

179

662

806

28

229

9

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.004

$
1.025

$
1.048

$
1.071

$
1.095

$
1.119

$
1.143

$
1.145

$
1.115

$
1.088

Accumulation Unit Value at end of period
$
0.983

$
1.004

$
1.025

$
1.048

$
1.071

$
1.095

$
1.119

$
1.143

$
1.145

$
1.115

Number of Accumulation Units outstanding at end of period (in thousands)
213

204

271

250

179

662

806

28

229

9

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.737

$
8.927

$
9.130

$
9.338

$
9.550

$
9.768

$
9.983

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.554

$
8.737

$
8.927

$
9.130

$
9.338

$
9.550

$
9.768

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

6

7

16

11

4

101

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.950

$
0.972

$
0.995

$
1.019

$
1.043

$
1.068

$
1.092

$
1.095

$
1.068

$
1.044

Accumulation Unit Value at end of period
$
0.929

$
0.950

$
0.972

$
0.995

$
1.019

$
1.043

$
1.068

$
1.092

$
1.095

$
1.068

Number of Accumulation Units outstanding at end of period (in thousands)
20

23

25

—

163

—

278

268

—

—



34
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.658

$
8.859

$
9.074

$
9.295

$
9.520

$
9.752

$
9.982

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.463

$
8.658

$
8.859

$
9.074

$
9.295

$
9.520

$
9.752

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.631

$
8.836

$
9.056

$
9.280

$
9.510

$
9.746

$
9.981

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.433

$
8.631

$
8.836

$
9.056

$
9.280

$
9.510

$
9.746

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
9.980

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
8.344

$
8.553

$
8.769

$
9.000

$
9.237

$
9.481

$
9.730

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Hartford Value HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

$
1.120

Accumulation Unit Value at end of period
$
1.967

$
2.060

$
1.878

$
1.445

$
1.253

$
1.298

$
1.149

$
0.938

$
1.443

$
1.344

Number of Accumulation Units outstanding at end of period (in thousands)
1,688

1,957

2,699

4,045

5,511

9,106

4,317

5,652

7,732

10,211

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.018

$
1.842

$
1.419

$
1.234

$
1.279

$
1.134

$
0.927

$
1.429

$
1.333

$
1.112

Accumulation Unit Value at end of period
$
1.924

$
2.018

$
1.842

$
1.419

$
1.234

$
1.279

$
1.134

$
0.927

$
1.429

$
1.333

Number of Accumulation Units outstanding at end of period (in thousands)
2,378

3,020

4,488

6,778

10,813

15,901

5,692

6,725

7,938

8,883

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.004

$
1.831

$
1.411

$
1.227

$
1.273

$
1.129

$
0.923

$
1.424

$
1.329

$
1.110

Accumulation Unit Value at end of period
$
1.910

$
2.004

$
1.831

$
1.411

$
1.227

$
1.273

$
1.129

$
0.923

$
1.424

$
1.329

Number of Accumulation Units outstanding at end of period (in thousands)
68

125

126

140

148

146

66

66

174

216

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.964

$
1.796

$
1.387

$
1.207

$
1.255

$
1.115

$
0.913

$
1.410

$
1.318

$
1.102

Accumulation Unit Value at end of period
$
1.868

$
1.964

$
1.796

$
1.387

$
1.207

$
1.255

$
1.115

$
0.913

$
1.410

$
1.318

Number of Accumulation Units outstanding at end of period (in thousands)
178

145

133

162

206

150

265

314

605

934

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.964

$
1.796

$
1.387

$
1.207

$
1.255

$
1.115

$
0.913

$
1.410

$
1.318

$
1.102

Accumulation Unit Value at end of period
$
1.868

$
1.964

$
1.796

$
1.387

$
1.207

$
1.255

$
1.115

$
0.913

$
1.410

$
1.318

Number of Accumulation Units outstanding at end of period (in thousands)
178

145

133

162

206

150

265

314

605

934

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.927

$
1.766

$
1.365

$
1.190

$
1.239

$
1.102

$
0.904

$
1.398

$
1.309

$
1.096

Accumulation Unit Value at end of period
$
1.831

$
1.927

$
1.766

$
1.365

$
1.190

$
1.239

$
1.102

$
0.904

$
1.398

$
1.309

Number of Accumulation Units outstanding at end of period (in thousands)
1,906

2,269

1,986

1,589

1,788

1,976

675

568

915

1,443

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.927

$
1.766

$
1.365

$
1.190

$
1.239

$
1.102

$
0.904

$
1.398

$
1.309

$
1.096



Hartford Life and Annuity Insurance Company
35

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at end of period
$
1.831

$
1.927

$
1.766

$
1.365

$
1.190

$
1.239

$
1.102

$
0.904

$
1.398

$
1.309

Number of Accumulation Units outstanding at end of period (in thousands)
1,906

2,269

1,986

1,589

1,788

1,976

675

568

915

1,443

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.915

$
1.756

$
1.358

$
1.185

$
1.234

$
1.098

$
0.901

$
1.395

$
1.306

$
1.094

Accumulation Unit Value at end of period
$
1.819

$
1.915

$
1.756

$
1.358

$
1.185

$
1.234

$
1.098

$
0.901

$
1.395

$
1.306

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

8

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.891

$
1.735

$
1.344

$
1.173

$
1.223

$
1.090

$
0.895

$
1.386

$
1.300

$
1.090

Accumulation Unit Value at end of period
$
1.794

$
1.891

$
1.735

$
1.344

$
1.173

$
1.223

$
1.090

$
0.895

$
1.386

$
1.300

Number of Accumulation Units outstanding at end of period (in thousands)
432

482

251

185

210

241

76

26

64

60

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.880

$
1.726

$
1.337

$
1.168

$
1.218

$
1.086

$
0.893

$
1.383

$
1.297

$
1.089

Accumulation Unit Value at end of period
$
1.782

$
1.880

$
1.726

$
1.337

$
1.168

$
1.218

$
1.086

$
0.893

$
1.383

$
1.297

Number of Accumulation Units outstanding at end of period (in thousands)
363

372

439

351

306

266

6

3

49

49

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.880

$
1.726

$
1.337

$
1.168

$
1.218

$
1.086

$
0.893

$
1.383

$
1.297

$
1.089

Accumulation Unit Value at end of period
$
1.782

$
1.880

$
1.726

$
1.337

$
1.168

$
1.218

$
1.086

$
0.893

$
1.383

$
1.297

Number of Accumulation Units outstanding at end of period (in thousands)
363

372

439

351

306

266

6

3

49

49

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.650

$
19.883

$
15.412

$
13.474

$
14.056

$
12.536

$
10.309

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.516

$
21.650

$
19.883

$
15.412

$
13.474

$
14.056

$
12.536

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
16

15

26

26

24

20

2

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.849

$
1.700

$
1.319

$
1.154

$
1.205

$
1.076

$
0.886

$
1.375

$
1.292

$
1.085

Accumulation Unit Value at end of period
$
1.751

$
1.849

$
1.700

$
1.319

$
1.154

$
1.205

$
1.076

$
0.886

$
1.375

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
229

266

106

58

47

40

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.453

$
19.732

$
15.318

$
13.412

$
14.012

$
12.516

$
10.308

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.299

$
21.453

$
19.732

$
15.318

$
13.412

$
14.012

$
12.516

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.388

$
19.681

$
15.287

$
13.391

$
13.997

$
12.509

$
10.307

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.227

$
21.388

$
19.681

$
15.287

$
13.391

$
13.997

$
12.509

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
10.306

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.013

$
21.193

$
19.532

$
15.193

$
13.329

$
13.953

$
12.488

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



36
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
HIMCO VIT Index Fund (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.753

$
1.620

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.746

$
1.753

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,024

1,240

—

—

—

—

—

—

—

—

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.714

$
1.584

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.704

$
1.714

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,010

1,409

—

—

—

—

—

—

—

—

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.705

$
1.576

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.694

$
1.705

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.667

$
1.541

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.654

$
1.667

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

72

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.667

$
1.541

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.654

$
1.667

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

72

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.636

$
1.513

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.621

$
1.636

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,435

1,257

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.636

$
1.513

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.621

$
1.636

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,435

1,257

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.626

$
1.504

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.610

$
1.626

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.605

$
1.485

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.588

$
1.605

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
297

225

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.596

$
1.477

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.578

$
1.596

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
219

250

—

—

—

—

—

—

—

—



Hartford Life and Annuity Insurance Company
37

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.596

$
1.477

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.578

$
1.596

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
219

250

—

—

—

—

—

—

—

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.656

$
20.963

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.387

$
22.656

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

4

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.570

$
1.453

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
1.550

$
1.570

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
167

69

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.449

$
20.778

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.150

$
22.449

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.381

$
20.717

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.072

$
22.381

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.177

$
20.535

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.838

$
22.177

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Invesco V.I. Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.768

$
9.914

$
9.982

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.623

$
9.768

$
9.914

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
79

125

48

—

—

—

—

—

—

—

With Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.744

$
9.905

$
9.980

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.586

$
9.744

$
9.905

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
153

344

185

—

—

—

—

—

—

—

With Earnings Protection Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.737

$
9.902

$
9.979

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.574

$
9.737

$
9.902

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 


38
Hartford Life and Annuity Insurance Company

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Accumulation Unit Value at beginning of period
$
9.714

$
9.894

$
9.977

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.536

$
9.714

$
9.894

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and Optional Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.714

$
9.894

$
9.977

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.536

$
9.714

$
9.894

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.690

$
9.885

$
9.976

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.500

$
9.690

$
9.885

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
213

198

125

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.690

$
9.885

$
9.976

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.500

$
9.690

$
9.885

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
213

198

125

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.683

$
9.882

$
9.975

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.487

$
9.683

$
9.882

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.667

$
9.876

$
9.974

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.463

$
9.667

$
9.876

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
12

7

28

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.660

$
9.873

$
9.973

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.450

$
9.660

$
9.873

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

12

4

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.660

$
9.873

$
9.973

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.450

$
9.660

$
9.873

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

12

4

—

—

—

—

—

—

—

With The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.652

$
9.870

$
9.972

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.438

$
9.652

$
9.870

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.637

$
9.864

$
9.971

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.414

$
9.637

$
9.864

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
20

11

18

—

—

—

—

—

—

—



Hartford Life and Annuity Insurance Company
39

Sub-Account
As of December 31,
 
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
With Optional Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.629

$
9.862

$
9.971

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.402

$
9.629

$
9.862

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.621

$
9.859

$
9.970

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.389

$
9.621

$
9.859

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Optional Death Benefit, Earnings Protection Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.598

$
9.850

$
9.968

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.353

$
9.598

$
9.850

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

(a) Inception date October 20, 2014.


SA-1
Hartford Life and Annuity Insurance Company




 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To The Contract Owners of Hartford Life and Annuity Insurance Company Separate Account One and the Board of Directors of Hartford Life and Annuity Insurance Company

We have audited the accompanying statements of assets and liabilities as of December 31, 2015, and the related statements of operations for each of the periods then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended for each of the following individual Sub-Accounts comprising Hartford Life and Annuity Insurance Company Separate Account One (the “Account”):

Invesco V.I. Money Market Fund
Hartford U.S. Government Securities HLS Fund
Wells Fargo VT Omega Growth Fund (Formerly Wells Fargo Advantage VT Omega Growth Fund)
Hartford Value HLS Fund
BlackRock Global Opportunities V.I. Fund
Hartford Balanced HLS Fund
BlackRock Large Cap Growth V.I. Fund
Hartford Total Return Bond HLS Fund
Jennison 20/20 Focus Fund
Hartford Capital Appreciation HLS Fund
Jennison Fund
Hartford Dividend and Growth HLS Fund
Prudential Value Portfolio
Hartford Healthcare HLS Fund
Prudential SP International Growth Portfolio
Hartford Global Growth HLS Fund
Wells Fargo VT Index Asset Allocation Fund (Formerly Wells Fargo Advantage VT Index Asset Allocation Fund)
Hartford Disciplined Equity HLS Fund
Wells Fargo VT Total Return Bond Fund (Formerly Wells Fargo Advantage VT Total Return Bond Fund)
Hartford Growth Opportunities HLS Fund
Wells Fargo VT Intrinsic Value Fund (Formerly Wells Fargo Advantage VT Intrinsic Value Fund)
Hartford High Yield HLS Fund
Wells Fargo VT International Equity Fund (Formerly Wells Fargo Advantage VT International Equity Fund)
Hartford International Opportunities HLS Fund
Wells Fargo VT Small Cap Growth Fund (Formerly Wells Fargo Advantage VT Small Cap Growth Fund)
Hartford Small/Mid Cap Equity HLS Fund
Wells Fargo VT Discovery Fund (Formerly Wells Fargo Advantage VT Discovery Fund)
Hartford MidCap HLS Fund
Wells Fargo VT Small Cap Value Fund (Formerly Wells Fargo Advantage VT Small Cap Value Fund)
Hartford MidCap Value HLS Fund
Wells Fargo VT Opportunity Fund (Formerly Wells Fargo Advantage VT Opportunity Fund)
Hartford Ultrashort Bond HLS Fund
HIMCO VIT Index Fund
Hartford Small Company HLS Fund
Hartford Global Research HLS Fund (merged with Hartford Global Growth HLS Fund)
Hartford SmallCap Growth HLS Fund
Hartford Growth HLS Fund (merged with Hartford Growth Opportunities HLS Fund)
Hartford Stock HLS Fund
Hartford Index HLS Fund (merged with HIMCO VIT Index Fund)

These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 and financial highlights 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, 2015, by correspondence with the fund managers; when replies were not received from fund managers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the individual Sub-Accounts above as of December 31, 2015, the results of their operations for each of the periods then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
Hartford, CT
April 20, 2016
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Assets and Liabilities
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. Money Market Fund
Wells Fargo VT Omega Growth Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
 
Sub-Account
Sub-Account (1)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
806,294

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

4,232,273

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

932,893,566

343,020,855

1,452,146,798

923,453,656

45,828,501

119,099,386

129,665,813

154,834,672

class IB
—

—

218,929,239

176,376,722

375,943,486

278,379,181

27,806,877

59,932,445

71,529,178

97,521,009

class II
—

—

—

—

—

—

—

—

—

—

class S1
30,544,223

—

—

—

—

—

—

—

—

—

class S2
15,630,582

—

—

—

—

—

—

—

—

—

                   Total investments
46,174,805

5,038,567

1,151,822,805

519,397,577

1,828,090,284

1,201,832,837

73,635,378

179,031,831

201,194,991

252,355,681

  Receivable for fund shares sold
24,304

423

824,558

310,337

864,445

762,987

66,698

27,596

65,862

123,118

  Other assets
4

—

—

—

16

—

—

—

2

20

 Total assets
46,199,113

5,038,990

1,152,647,363

519,707,914

1,828,954,745

1,202,595,824

73,702,076

179,059,427

201,260,855

252,478,819

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
24,304

423

824,558

310,337

864,445

762,987

66,698

27,596

65,862

123,118

  Other liabilities
—

1

61

11

—

49

5

14

—

—

 Total liabilities
24,304

424

824,619

310,348

864,445

763,036

66,703

27,610

65,862

123,118

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
46,174,809

$
5,038,566

$
1,151,822,744

$
519,397,566

$
1,828,090,300

$
1,201,832,788

$
73,635,373

$
179,031,817

$
201,194,993

$
252,355,701

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
806,292

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

4,232,274

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

932,893,534

343,020,844

1,452,146,844

923,453,622

45,828,500

119,099,376

129,665,817

154,834,683

class IB
—

—

218,929,210

176,376,722

375,943,456

278,379,166

27,806,873

59,932,441

71,529,176

97,521,018

class II
—

—

—

—

—

—

—

—

—

—

class S1
30,544,224

—

—

—

—

—

—

—

—

—

class S2
15,630,585

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
46,174,809

$
5,038,566

$
1,151,822,744

$
519,397,566

$
1,828,090,300

$
1,201,832,788

$
73,635,373

$
179,031,817

$
201,194,993

$
252,355,701

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

34,605

—

—

—

—

—

—

—

—

class 2
—

187,767

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

35,044,837

31,383,427

32,676,570

41,804,150

1,511,494

4,883,124

8,322,581

4,441,615

class IB
—

—

8,111,495

16,226,009

8,557,785

12,642,106

947,101

2,477,571

4,626,726

2,888,655

class II
—

—

—

—

—

—

—

—

—

—

class S1
30,544,223

—

—

—

—

—

—

—

—

—

class S2
15,630,582

—

—

—

—

—

—

—

—

—

  Total shares
46,174,805

222,372

43,156,332

47,609,436

41,234,355

54,446,256

2,458,595

7,360,695

12,949,307

7,330,270

 
 
 
 
 
 
 
 
 
 
 
Cost
$
46,174,805

$
5,036,808

$
851,986,917

$
532,115,513

$
1,717,269,578

$
1,037,324,568

$
41,457,077

$
133,135,107

$
180,281,422

$
251,981,840

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
  Units owned by participants #
4,729,853

782,068

308,951,687

199,769,922

284,199,549

315,684,801

12,823,057

84,343,488

87,873,107

80,244,319

  Minimum unit fair value #*
$
9.365195

$
1.240038

$
1.356393

$
1.386394

$
1.931630

$
1.805888

$
4.753061

$
1.107578

$
1.503641

$
2.588585

  Maximum unit fair value #*
$
9.799314

$
26.374297

$
19.664815

$
16.185084

$
23.929431

$
21.139771

$
34.856800

$
23.313943

$
25.599899

$
29.084931

  Contract liability
$
45,470,128

$
4,874,840

$
1,102,598,131

$
508,153,192

$
1,795,860,761

$
1,176,290,383

$
72,445,173

$
176,203,657

$
197,886,021

$
248,148,155

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
Units owned by participants #
72,812

25,676

9,095,016

3,872,489

3,488,720

5,553,021

214,171

1,348,481

1,532,007

1,385,068

Minimum unit fair value #*
$
9.635772

$
1.379533

$
1.518245

$
1.751967

$
2.155327

$
2.380944

$
5.350010

$
1.247044

$
1.692884

$
2.897763

Maximum unit fair value #*
$
9.710915

$
19.848740

$
7.584264

$
4.146593

$
20.287751

$
6.113825

$
5.831419

$
2.905922

$
2.488807

$
3.276272

Contract liability
$
704,681

$
163,726

$
49,224,613

$
11,244,374

$
32,229,539

$
25,542,405

$
1,190,200

$
2,828,160

$
3,308,972

$
4,207,546

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 (1) Formerly Wells Fargo Advantage VT Omega Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 





SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford High Yield HLS Fund
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
79,767,461

250,529,206

23,549,861

225,288,728

125,896,438

74,927,664

112,576,238

63,200,273

552,170,091

95,181,796

class IB
56,796,698

108,394,755

13,477,987

20,820,828

72,935,525

41,137,526

31,025,851

44,972,076

108,473,184

69,632,239

class II
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

                   Total investments
136,564,159

358,923,961

37,027,848

246,109,556

198,831,963

116,065,190

143,602,089

108,172,349

660,643,275

164,814,035

  Receivable for fund shares sold
156,093

159,262

9,943

166,692

73,583

203,203

230,428

88,753

181,995

87,844

  Other assets
4

—

—

—

—

—

9

3

17

—

 Total assets
136,720,256

359,083,223

37,037,791

246,276,248

198,905,546

116,268,393

143,832,526

108,261,105

660,825,287

164,901,879

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
156,093

159,262

9,943

166,692

73,583

203,203

230,428

88,753

181,995

87,844

  Other liabilities
—

9

2

6

6

24

—

—

—

30

 Total liabilities
156,093

159,271

9,945

166,698

73,589

203,227

230,428

88,753

181,995

87,874

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
136,564,163

$
358,923,952

$
37,027,846

$
246,109,550

$
198,831,957

$
116,065,166

$
143,602,098

$
108,172,352

$
660,643,292

$
164,814,005

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
79,767,466

250,529,200

23,549,860

225,288,724

125,896,442

74,927,640

112,576,245

63,200,276

552,170,109

95,181,764

class IB
56,796,697

108,394,752

13,477,986

20,820,826

72,935,515

41,137,526

31,025,853

44,972,076

108,473,183

69,632,241

class II
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
136,564,163

$
358,923,952

$
37,027,846

$
246,109,550

$
198,831,957

$
116,065,166

$
143,602,098

$
108,172,352

$
660,643,292

$
164,814,005

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
10,565,227

17,655,335

3,161,055

6,693,070

10,210,579

7,500,267

6,425,584

2,535,109

8,620,923

9,205,203

class IB
7,644,239

7,548,381

1,821,350

628,838

5,958,785

4,126,131

1,883,780

1,844,630

1,694,099

6,747,310

class II
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

  Total shares
18,209,466

25,203,716

4,982,405

7,321,908

16,169,364

11,626,398

8,309,364

4,379,739

10,315,022

15,952,513

 
 
 
 
 
 
 
 
 
 
 
Cost
$
162,135,531

$
303,406,318

$
42,953,452

$
148,800,311

$
184,136,859

$
116,283,569

$
136,274,255

$
97,957,143

$
397,367,555

$
172,358,756

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
  Units owned by participants #
62,874,056

169,727,212

2,407,949

36,630,438

72,110,103

85,445,192

49,769,404

40,342,630

161,266,261

133,659,040

  Minimum unit fair value #*
$
1.673742

$
1.147890

$
14.203900

$
2.594857

$
2.355320

$
0.852768

$
1.247626

$
2.217994

$
1.248056

$
1.048188

  Maximum unit fair value #*
$
19.389428

$
17.186883

$
25.881769

$
26.554980

$
27.819215

$
8.553504

$
22.734042

$
30.532323

$
24.540288

$
10.262828

  Contract liability
$
134,028,285

$
353,139,932

$
36,681,026

$
241,364,848

$
195,723,830

$
113,735,874

$
141,330,370

$
106,640,191

$
643,230,996

$
160,743,593

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
Units owned by participants #
1,243,724

2,326,569

22,399

704,088

1,113,872

1,453,512

802,535

591,226

2,855,860

3,331,416

Minimum unit fair value #*
$
1.884322

$
1.269262

$
15.439467

$
2.869322

$
2.645923

$
1.010075

$
1.379692

$
2.482962

$
1.380116

$
1.173399

Maximum unit fair value #*
$
2.186871

$
3.183953

$
16.038953

$
7.657558

$
3.017880

$
1.915893

$
3.972431

$
2.795136

$
10.066110

$
1.326201

Contract liability
$
2,535,878

$
5,784,020

$
346,820

$
4,744,702

$
3,108,127

$
2,329,292

$
2,271,728

$
1,532,161

$
17,412,296

$
4,070,412

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 





SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford Value HLS Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Growth V.I. Fund
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT Total Return Bond Fund
Wells Fargo VT Intrinsic Value Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (2)
Sub-Account (3)
Sub-Account (4)
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

6,403,060

4,768,911

3,865,511

class B
—

—

—

—

—

—

—

—

—

—

class I
—

916,632

913,683

—

—

—

—

—

—

—

class IA
139,108,566

—

—

—

—

—

—

—

—

—

class IB
57,175,725

—

—

—

—

—

—

—

—

—

class II
—

—

—

162,623

168,977

76,514

22,175

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

                   Total investments
196,284,291

916,632

913,683

162,623

168,977

76,514

22,175

6,403,060

4,768,911

3,865,511

  Receivable for fund shares sold
85,783

39

44

9

9

3

1

1,511

1,942

302

  Other assets
—

—

2

—

—

—

—

—

9

—

 Total assets
196,370,074

916,671

913,729

162,632

168,986

76,517

22,176

6,404,571

4,770,862

3,865,813

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
85,783

39

44

9

9

3

1

1,511

1,942

302

  Other liabilities
19

—

—

1

—

—

—

—

—

1

 Total liabilities
85,802

39

44

10

9

3

1

1,511

1,942

303

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
196,284,272

$
916,632

$
913,685

$
162,622

$
168,977

$
76,514

$
22,175

$
6,403,060

$
4,768,920

$
3,865,510

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

6,403,060

4,768,920

3,865,510

class B
—

—

—

—

—

—

—

—

—

—

class I
—

916,632

913,685

—

—

—

—

—

—

—

class IA
139,108,540

—

—

—

—

—

—

—

—

—

class IB
57,175,732

—

—

—

—

—

—

—

—

—

class II
—

—

—

162,622

168,977

76,514

22,175

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
196,284,272

$
916,632

$
913,685

$
162,622

$
168,977

$
76,514

$
22,175

$
6,403,060

$
4,768,920

$
3,865,510

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

346,674

458,990

221,392

class B
—

—

—

—

—

—

—

—

—

—

class I
—

57,290

67,232

—

—

—

—

—

—

—

class IA
8,928,663

—

—

—

—

—

—

—

—

—

class IB
3,672,172

—

—

—

—

—

—

—

—

—

class II
—

—

—

7,148

3,824

3,163

3,690

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

  Total shares
12,600,835

57,290

67,232

7,148

3,824

3,163

3,690

346,674

458,990

221,392

 
 
 
 
 
 
 
 
 
 
 
Cost
$
137,421,178

$
864,793

$
769,483

$
115,199

$
85,274

$
52,212

$
16,471

$
4,405,943

$
4,795,365

$
3,346,307

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
  Units owned by participants #
97,263,282

608,650

499,857

33,233

98,069

46,956

19,078

3,334,601

3,029,918

2,159,179

  Minimum unit fair value #*
$
1.701403

$
1.326273

$
1.428378

$
1.944031

$
1.149954

$
1.572872

$
1.080426

$
1.766382

$
1.446515

$
1.589556

  Maximum unit fair value #*
$
20.516081

$
17.084505

$
24.318337

$
22.742444

$
26.761777

$
1.655693

$
1.112596

$
19.842658

$
12.450483

$
1.857041

  Contract liability
$
191,890,276

$
907,958

$
904,971

$
155,112

$
168,977

$
76,514

$
20,858

$
6,286,732

$
4,673,763

$
3,651,166

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
Units owned by participants #
2,172,251

5,911

5,514

3,490

—

—

1,158

57,693

59,049

116,763

Minimum unit fair value #*
$
1.911236

$
1.467442

$
1.580319

$
2.151677

$
—

$
—

$
1.137329

$
1.980708

$
1.602686

$
1.782428

Maximum unit fair value #*
$
2.179247

$
1.467442

$
1.580319

$
2.151677

$
—

$
—

$
1.137329

$
2.037562

$
1.614115

$
1.857041

Contract liability
$
4,393,996

$
8,674

$
8,714

$
7,510

$
—

$
—

$
1,317

$
116,328

$
95,157

$
214,344

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 (2) Formerly Wells Fargo Advantage VT Index Asset Allocation Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (3) Formerly Wells Fargo Advantage VT Total Return Bond Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (4) Formerly Wells Fargo Advantage VT Intrinsic Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Assets and Liabilities (concluded)
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
Wells Fargo VT Discovery Fund
Wells Fargo VT Small Cap Value Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund




 
Sub-Account (5)
Sub-Account (6)
Sub-Account (7)
Sub-Account (8)
Sub-Account (9)
Sub-Account




 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
1,661,809

$
568,756

$
—

$
1,262,298

$
728,861

$
—

 
 
 
 
class 2
1,771,382

1,017,430

481,937

107,005

456,457

—

 
 
 
 
class B
—

—

—

—

—

—

 
 
 
 
class I
—

—

—

—

—

—

 
 
 
 
class IA
—

—

—

—

—

146,761,440

 
 
 
 
class IB
—

—

—

—

—

42,489,299

 
 
 
 
class II
—

—

—

—

—

—

 
 
 
 
class S1
—

—

—

—

—

—

 
 
 
 
class S2
—

—

—

—

—

—

 
 
 
 
                   Total investments
3,433,191

1,586,186

481,937

1,369,303

1,185,318

189,250,739





  Receivable for fund shares sold
586

283

2,687

221

60

33,149





  Other assets
—

—

—

—

1

2





 Total assets
3,433,777

1,586,469

484,624

1,369,524

1,185,379

189,283,890





 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
586

283

2,687

221

60

33,149





  Other liabilities
1

1

—

—

—

—





 Total liabilities
587

284

2,687

221

60

33,149





 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
3,433,190

$
1,586,185

$
481,937

$
1,369,303

$
1,185,319

$
189,250,741





 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
1,661,808

568,755

—

1,262,298

728,862

—

 
 
 
 
class 2
1,771,382

1,017,430

481,937

107,005

456,457

—

 
 
 
 
class B
—

—

—

—

—

—

 
 
 
 
class I
—

—

—

—

—

—

 
 
 
 
class IA
—

—

—

—

—

146,761,444

 
 
 
 
class IB
—

—

—

—

—

42,489,297

 
 
 
 
class II
—

—

—

—

—

—

 
 
 
 
class S1
—

—

—

—

—

—

 
 
 
 
class S2
—

—

—

—

—

—

 
 
 
 
  Total contract liabilities
$
3,433,190

$
1,586,185

$
481,937

$
1,369,303

$
1,185,319

$
189,250,741





 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
344,774

65,374

—

126,992

29,154

—

 
 
 
 
class 2
365,988

118,859

18,543

10,765

18,222

—

 
 
 
 
class B
—

—

—

—

—

—

 
 
 
 
class I
—

—

—

—

—

—

 
 
 
 
class IA
—

—

—

—

—

3,586,546

 
 
 
 
class IB
—

—

—

—

—

1,047,308

 
 
 
 
class II
—

—

—

—

—

—

 
 
 
 
class S1
—

—

—

—

—

—

 
 
 
 
class S2
—

—

—

—

—

—

 
 
 
 
  Total shares
710,762

184,233

18,543

137,757

47,376

4,633,854





 
 
 
 
 
 
 
 
 
 
 
Cost
$
3,507,809

$
1,547,679

$
455,857

$
1,214,016

$
888,029

$
174,481,616





 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 

  Units owned by participants #
1,447,314

476,271

20,796

105,967

69,677

47,817,633





  Minimum unit fair value #*
$
1.022638

$
2.109397

$
22.426308

$
12.322381

$
15.516077

$
1.282580





  Maximum unit fair value #*
$
14.272302

$
25.894774

$
25.061863

$
18.922075

$
19.376182

$
22.386920





  Contract liability
$
3,360,557

$
1,552,604

$
481,937

$
1,351,430

$
1,157,973

$
184,069,565





 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
Units owned by participants #
46,029

9,661

—

1,370

1,463

862,065





Minimum unit fair value #*
$
1.137572

$
2.337170

$
—

$
13.048552

$
16.274948

$
1.444030





Maximum unit fair value #*
$
12.935792

$
17.768604

$
—

$
13.048552

$
18.770602

$
8.214432





Contract liability
$
72,633

$
33,581

$
—

$
17,873

$
27,346

$
5,181,176





 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 (5) Formerly Wells Fargo Advantage VT International Equity Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (6) Formerly Wells Fargo Advantage VT Small Cap Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (7) Formerly Wells Fargo Advantage VT Discovery Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (8) Formerly Wells Fargo Advantage VT Small Cap Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 (9) Formerly Wells Fargo Advantage VT Opportunity Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 




SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Operations
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. Money Market Fund
Wells Fargo VT Omega Growth Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
 
Sub-Account
Sub-Account (1)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
4,526

$
—

$
21,828,232

$
16,669,689

$
16,052,126

$
22,125,237

$
—

$
826,581

$
1,415,483

$
197,727

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Mortality and expense risk charges
(641,373
)
(105,198
)
(17,555,599
)
(8,747,982
)
(28,451,908
)
(19,018,727
)
(1,153,917
)
(2,799,259
)
(3,314,991
)
(4,099,887
)
    Total expenses
(641,373
)
(105,198
)
(17,555,599
)
(8,747,982
)
(28,451,908
)
(19,018,727
)
(1,153,917
)
(2,799,259
)
(3,314,991
)
(4,099,887
)
    Net investment income (loss)
(636,847
)
(105,198
)
4,272,633

7,921,707

(12,399,782
)
3,106,510

(1,153,917
)
(1,972,678
)
(1,899,508
)
(3,902,160
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
—

150,371

61,880,671

1,228,725

68,156,717

61,529,865

6,213,757

10,224,528

16,320,252

6,360,135

  Net realized gain distributions
—

969,631

—

13,486,988

374,380,118

181,246,906

8,788,885

8,399,701

64,257,550

52,007,658

  Change in unrealized appreciation (depreciation) during the period
—

(1,017,041
)
(80,348,531
)
(34,535,481
)
(432,798,222
)
(280,139,278
)
(5,280,645
)
(5,185,880
)
(67,915,456
)
(30,206,399
)
    Net gain (loss) on investments
—

102,961

(18,467,860
)
(19,819,768
)
9,738,613

(37,362,507
)
9,721,997

13,438,349

12,662,346

28,161,394

    Net increase (decrease) in net assets resulting from operations
$
(636,847
)
$
(2,237
)
$
(14,195,227
)
$
(11,898,061
)
$
(2,661,169
)
$
(34,255,997
)
$
8,568,080

$
11,465,671

$
10,762,838

$
24,259,234

 
 
 
 
 
 
 
 
 
 
 
 (1) Formerly Wells Fargo Advantage VT Omega Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 













SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford High Yield HLS Fund
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
10,347,741

$
5,361,499

$
477,787

$
215,604

$
1,046,858

$
251,377

$
—

$
54,035

$
11,748,070

$
2,966,940

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Mortality and expense risk charges
(2,607,717
)
(6,002,881
)
(710,384
)
(3,489,452
)
(3,428,974
)
(1,950,303
)
(2,417,495
)
(1,973,905
)
(9,683,302
)
(2,858,407
)
    Total expenses
(2,607,717
)
(6,002,881
)
(710,384
)
(3,489,452
)
(3,428,974
)
(1,950,303
)
(2,417,495
)
(1,973,905
)
(9,683,302
)
(2,858,407
)
    Net investment income (loss)
7,740,024

(641,382
)
(232,597
)
(3,273,848
)
(2,382,116
)
(1,698,926
)
(2,417,495
)
(1,919,870
)
2,064,768

108,533

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(4,865,494
)
14,631,186

331,228

19,410,332

8,492,775

18,489

7,103,883

6,954,398

48,241,024

(1,654,753
)
  Net realized gain distributions
—

—

6,826,256

30,368,244

30,869,180

12,144

31,300,473

12,480,450

—

—

  Change in unrealized appreciation (depreciation) during the period
(11,738,513
)
(10,736,354
)
(9,385,842
)
(44,487,467
)
(42,121,028
)
(185,026
)
(51,235,114
)
(19,391,667
)
(41,704,628
)
1,437,984

    Net gain (loss) on investments
(16,604,007
)
3,894,832

(2,228,358
)
5,291,109

(2,759,073
)
(154,393
)
(12,830,758
)
43,181

6,536,396

(216,769
)
    Net increase (decrease) in net assets resulting from operations
$
(8,863,983
)
$
3,253,450

$
(2,460,955
)
$
2,017,261

$
(5,141,189
)
$
(1,853,319
)
$
(15,248,253
)
$
(1,876,689
)
$
8,601,164

$
(108,236
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 







SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford Value HLS Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Growth V.I. Fund
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT Total Return Bond Fund
Wells Fargo VT Intrinsic Value Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (2)
Sub-Account (3)
Sub-Account (4)
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
3,088,424

$
9,395

$
5,558

$
—

$
—

$
—

$
—

$
73,264

$
69,326

$
39,440

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Mortality and expense risk charges
(3,249,506
)
(15,953
)
(17,193
)
(2,527
)
(3,033
)
(1,265
)
(628
)
(134,830
)
(96,988
)
(85,220
)
    Total expenses
(3,249,506
)
(15,953
)
(17,193
)
(2,527
)
(3,033
)
(1,265
)
(628
)
(134,830
)
(96,988
)
(85,220
)
    Net investment income (loss)
(161,082
)
(6,558
)
(11,635
)
(2,527
)
(3,033
)
(1,265
)
(628
)
(61,566
)
(27,662
)
(45,780
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
16,260,685

71,309

61,642

1,834

1,403

500

2,776

587,468

13,136

392,419

  Net realized gain distributions
6,874,742

13,004

51,371

—

—

—

—

—

—

654,212

  Change in unrealized appreciation (depreciation) during the period
(32,634,935
)
(89,318
)
(90,335
)
6,044

15,599

(7,606
)
(1,822
)
(562,407
)
(65,499
)
(1,085,785
)
    Net gain (loss) on investments
(9,499,508
)
(5,005
)
22,678

7,878

17,002

(7,106
)
954

25,061

(52,363
)
(39,154
)
    Net increase (decrease) in net assets resulting from operations
$
(9,660,590
)
$
(11,563
)
$
11,043

$
5,351

$
13,969

$
(8,371
)
$
326

$
(36,505
)
$
(80,025
)
$
(84,934
)
 
 
 
 
 
 
 
 
 
 
 
 (2) Formerly Wells Fargo Advantage VT Index Asset Allocation Fund. Change effective December 15, 2015.
 
 
 
 
 
 (3) Formerly Wells Fargo Advantage VT Total Return Bond Fund. Change effective December 15, 2015.
 
 
 
 
 
 (4) Formerly Wells Fargo Advantage VT Intrinsic Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Operations (concluded)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
Wells Fargo VT Discovery Fund
Wells Fargo VT Small Cap Value Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund




 
Sub-Account (5)
Sub-Account (6)
Sub-Account (7)
Sub-Account (8)
Sub-Account (9)
Sub-Account




 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
163,340

$
—

$
—

$
8,584

$
4,025

$
707,070





 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Mortality and expense risk charges
(73,582
)
(32,867
)
(9,954
)
(30,900
)
(25,008
)
(2,898,531
)




    Total expenses
(73,582
)
(32,867
)
(9,954
)
(30,900
)
(25,008
)
(2,898,531
)




    Net investment income (loss)
89,758

(32,867
)
(9,954
)
(22,316
)
(20,983
)
(2,191,461
)




 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
83,937

139,761

24,978

58,695

123,083

3,256,147





  Net realized gain distributions
—

207,473

74,342

—

141,223

2,364,279





  Change in unrealized appreciation (depreciation) during the period
(95,193
)
(372,963
)
(103,569
)
(239,436
)
(298,084
)
(4,071,879
)




    Net gain (loss) on investments
(11,256
)
(25,729
)
(4,249
)
(180,741
)
(33,778
)
1,548,547





    Net increase (decrease) in net assets resulting from operations
$
78,502

$
(58,596
)
$
(14,203
)
$
(203,057
)
$
(54,761
)
$
(642,914
)




 
 
 
 
 
 
 
 
 
 
 
 (5) Formerly Wells Fargo Advantage VT International Equity Fund. Change effective December 15, 2015.
 
 
 
 
 
 (6) Formerly Wells Fargo Advantage VT Small Cap Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 (7) Formerly Wells Fargo Advantage VT Discovery Fund. Change effective December 15, 2015.
 
 
 
 
 
 (8) Formerly Wells Fargo Advantage VT Small Cap Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 (9) Formerly Wells Fargo Advantage VT Opportunity Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 



SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. Money Market Fund
Wells Fargo VT Omega Growth Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
 
Sub-Account
Sub-Account (1)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(636,847
)
$
(105,198
)
$
4,272,633

$
7,921,707

$
(12,399,782
)
$
3,106,510

$
(1,153,917
)
$
(1,972,678
)
$
(1,899,508
)
$
(3,902,160
)
  Net realized gain (loss) on security transactions
—

150,371

61,880,671

1,228,725

68,156,717

61,529,865

6,213,757

10,224,528

16,320,252

6,360,135

  Net realized gain distributions
—

969,631

—

13,486,988

374,380,118

181,246,906

8,788,885

8,399,701

64,257,550

52,007,658

  Change in unrealized appreciation (depreciation) during the period
—

(1,017,041
)
(80,348,531
)
(34,535,481
)
(432,798,222
)
(280,139,278
)
(5,280,645
)
(5,185,880
)
(67,915,456
)
(30,206,399
)
  Net increase (decrease) in net assets resulting from operations
(636,847
)
(2,237
)
(14,195,227
)
(11,898,061
)
(2,661,169
)
(34,255,997
)
8,568,080

11,465,671

10,762,838

24,259,234

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
824,352

525

5,711,498

2,891,880

7,135,639

4,787,257

119,995

890,960

1,468,725

1,858,569

  Net transfers
48,897,239

(174,373
)
(4,102,340
)
(2,755,896
)
(37,630,881
)
(22,156,902
)
(2,218,193
)
3,280,437

(3,856,025
)
10,910,076

  Surrenders for benefit payments and fees
(39,215,459
)
(956,944
)
(152,573,906
)
(75,542,338
)
(219,944,960
)
(159,796,970
)
(7,373,463
)
(20,981,428
)
(29,287,551
)
(31,880,820
)
  Other transactions
85

719

21,733

15,794

(28,917
)
8,240

915

(9,143
)
7,914

(30,079
)
  Death benefits
(4,919,850
)
(259,588
)
(38,362,894
)
(15,269,906
)
(43,295,770
)
(30,646,837
)
(1,260,566
)
(3,716,626
)
(5,777,984
)
(5,156,089
)
  Net annuity transactions
(128,039
)
(26,283
)
(1,770,774
)
(507,213
)
(2,760,786
)
(1,392,256
)
(184,397
)
61,359

(61,367
)
229,606

  Net increase (decrease) in net assets resulting from unit transactions
5,458,328

(1,415,944
)
(191,076,683
)
(91,167,679
)
(296,525,675
)
(209,197,468
)
(10,915,709
)
(20,474,441
)
(37,506,288
)
(24,068,737
)
  Net increase (decrease) in net assets
4,821,481

(1,418,181
)
(205,271,910
)
(103,065,740
)
(299,186,844
)
(243,453,465
)
(2,347,629
)
(9,008,770
)
(26,743,450
)
190,497

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
41,353,328

6,456,747

1,357,094,654

622,463,306

2,127,277,144

1,445,286,253

75,983,002

188,040,587

227,938,443

252,165,204

  End of period
$
46,174,809

$
5,038,566

$
1,151,822,744

$
519,397,566

$
1,828,090,300

$
1,201,832,788

$
73,635,373

$
179,031,817

$
201,194,993

$
252,355,701

 
 
 
 
 
 
 
 
 
 
 
 (1) Formerly Wells Fargo Advantage VT Omega Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford High Yield HLS Fund
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
7,740,024

$
(641,382
)
$
(232,597
)
$
(3,273,848
)
$
(2,382,116
)
$
(1,698,926
)
$
(2,417,495
)
$
(1,919,870
)
$
2,064,768

$
108,533

  Net realized gain (loss) on security transactions
(4,865,494
)
14,631,186

331,228

19,410,332

8,492,775

18,489

7,103,883

6,954,398

48,241,024

(1,654,753
)
  Net realized gain distributions
—

—

6,826,256

30,368,244

30,869,180

12,144

31,300,473

12,480,450

—

—

  Change in unrealized appreciation (depreciation) during the period
(11,738,513
)
(10,736,354
)
(9,385,842
)
(44,487,467
)
(42,121,028
)
(185,026
)
(51,235,114
)
(19,391,667
)
(41,704,628
)
1,437,984

  Net increase (decrease) in net assets resulting from operations
(8,863,983
)
3,253,450

(2,460,955
)
2,017,261

(5,141,189
)
(1,853,319
)
(15,248,253
)
(1,876,689
)
8,601,164

(108,236
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
725,946

2,258,869

228,880

424,057

1,275,090

788,554

808,982

892,519

3,026,196

1,070,575

  Net transfers
(7,933,877
)
4,585,315

(2,669,774
)
(3,980,559
)
(4,185,939
)
(3,186,914
)
(4,503,353
)
(4,232,241
)
(10,852,085
)
8,001,627

  Surrenders for benefit payments and fees
(21,647,930
)
(47,524,217
)
(5,155,842
)
(26,808,074
)
(24,340,326
)
(19,668,793
)
(18,108,081
)
(14,363,002
)
(78,333,541
)
(26,303,229
)
  Other transactions
2,480

(11,809
)
1,140

1,603

(498
)
6,038

(1,625
)
(9,779
)
795

5,803

  Death benefits
(3,989,417
)
(8,458,833
)
(769,872
)
(5,143,159
)
(5,357,305
)
(3,109,598
)
(3,158,564
)
(2,576,348
)
(18,212,318
)
(4,904,265
)
  Net annuity transactions
(568,938
)
(127,982
)
(111,152
)
16,721

(286,066
)
103,616

(46,853
)
(95,210
)
(415,354
)
283,680

  Net increase (decrease) in net assets resulting from unit transactions
(33,411,736
)
(49,278,657
)
(8,476,620
)
(35,489,411
)
(32,895,044
)
(25,067,097
)
(25,009,494
)
(20,384,061
)
(104,786,307
)
(21,845,809
)
  Net increase (decrease) in net assets
(42,275,719
)
(46,025,207
)
(10,937,575
)
(33,472,150
)
(38,036,233
)
(26,920,416
)
(40,257,747
)
(22,260,750
)
(96,185,143
)
(21,954,045
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
178,839,882

404,949,159

47,965,421

279,581,700

236,868,190

142,985,582

183,859,845

130,433,102

756,828,435

186,768,050

  End of period
$
136,564,163

$
358,923,952

$
37,027,846

$
246,109,550

$
198,831,957

$
116,065,166

$
143,602,098

$
108,172,352

$
660,643,292

$
164,814,005

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford Value HLS Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Growth V.I. Fund
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT Total Return Bond Fund
Wells Fargo VT Intrinsic Value Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (2)
Sub-Account (3)
Sub-Account (4)
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(161,082
)
$
(6,558
)
$
(11,635
)
$
(2,527
)
$
(3,033
)
$
(1,265
)
$
(628
)
$
(61,566
)
$
(27,662
)
$
(45,780
)
  Net realized gain (loss) on security transactions
16,260,685

71,309

61,642

1,834

1,403

500

2,776

587,468

13,136

392,419

  Net realized gain distributions
6,874,742

13,004

51,371

—

—

—

—

—

—

654,212

  Change in unrealized appreciation (depreciation) during the period
(32,634,935
)
(89,318
)
(90,335
)
6,044

15,599

(7,606
)
(1,822
)
(562,407
)
(65,499
)
(1,085,785
)
  Net increase (decrease) in net assets resulting from operations
(9,660,590
)
(11,563
)
11,043

5,351

13,969

(8,371
)
326

(36,505
)
(80,025
)
(84,934
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
673,223

156

—

—

—

—

—

—

23,441

—

  Net transfers
(5,999,279
)
65,424

(66,348
)
37,408

—

827

—

(43,338
)
105,555

(15,266
)
  Surrenders for benefit payments and fees
(26,564,219
)
(161,735
)
(159,614
)
(2,507
)
(1
)
—

(1,029
)
(1,375,877
)
(1,107,789
)
(1,388,203
)
  Other transactions
2,027

1

2

6

1

—

—

864

65

37

  Death benefits
(4,235,394
)
(9,527
)
(33,144
)
—

—

—

(10,690
)
(201,877
)
(180,220
)
(223,577
)
  Net annuity transactions
(461,527
)
8,834

8,858

(994
)
—

—

(201
)
(19,048
)
17,638

92,220

  Net increase (decrease) in net assets resulting from unit transactions
(36,585,169
)
(96,847
)
(250,246
)
33,913

—

827

(11,920
)
(1,639,276
)
(1,141,310
)
(1,534,789
)
  Net increase (decrease) in net assets
(46,245,759
)
(108,410
)
(239,203
)
39,264

13,969

(7,544
)
(11,594
)
(1,675,781
)
(1,221,335
)
(1,619,723
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
242,530,031

1,025,042

1,152,888

123,358

155,008

84,058

33,769

8,078,841

5,990,255

5,485,233

  End of period
$
196,284,272

$
916,632

$
913,685

$
162,622

$
168,977

$
76,514

$
22,175

$
6,403,060

$
4,768,920

$
3,865,510

 
 
 
 
 
 
 
 
 
 
 
 (2) Formerly Wells Fargo Advantage VT Index Asset Allocation Fund. Change effective December 15, 2015.
 
 
 
 
 
 (3) Formerly Wells Fargo Advantage VT Total Return Bond Fund. Change effective December 15, 2015.
 
 
 
 
 
 (4) Formerly Wells Fargo Advantage VT Intrinsic Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (concluded)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
Wells Fargo VT Discovery Fund
Wells Fargo VT Small Cap Value Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund




 
Sub-Account (5)
Sub-Account (6)
Sub-Account (7)
Sub-Account (8)
Sub-Account (9)
Sub-Account




 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
89,758

$
(32,867
)
$
(9,954
)
$
(22,316
)
$
(20,983
)
$
(2,191,461
)




  Net realized gain (loss) on security transactions
83,937

139,761

24,978

58,695

123,083

3,256,147





  Net realized gain distributions
—

207,473

74,342

—

141,223

2,364,279





  Change in unrealized appreciation (depreciation) during the period
(95,193
)
(372,963
)
(103,569
)
(239,436
)
(298,084
)
(4,071,879
)




  Net increase (decrease) in net assets resulting from operations
78,502

(58,596
)
(14,203
)
(203,057
)
(54,761
)
(642,914
)




 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
25,080

6,805

—

80

—

3,434,370





  Net transfers
21,867

88,641

16,755

13,287

(21,216
)
(2,540,946
)




  Surrenders for benefit payments and fees
(625,077
)
(214,890
)
(64,211
)
(262,256
)
(221,023
)
(22,591,359
)




  Other transactions
(92
)
(65
)
1

(21
)
879

(767
)




  Death benefits
(177,159
)
(175,072
)
—

(5,502
)
(63,700
)
(5,923,236
)




  Net annuity transactions
21,497

16,308

—

7,229

27,580

(500,097
)




  Net increase (decrease) in net assets resulting from unit transactions
(733,884
)
(278,273
)
(47,455
)
(247,183
)
(277,480
)
(28,122,035
)




  Net increase (decrease) in net assets
(655,382
)
(336,869
)
(61,658
)
(450,240
)
(332,241
)
(28,764,949
)




 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
4,088,572

1,923,054

543,595

1,819,543

1,517,560

218,015,690





  End of period
$
3,433,190

$
1,586,185

$
481,937

$
1,369,303

$
1,185,319

$
189,250,741





 
 
 
 
 
 
 
 
 
 
 
 (5) Formerly Wells Fargo Advantage VT International Equity Fund. Change effective December 15, 2015.
 
 
 
 
 
 (6) Formerly Wells Fargo Advantage VT Small Cap Growth Fund. Change effective December 15, 2015.
 
 
 
 
 
 (7) Formerly Wells Fargo Advantage VT Discovery Fund. Change effective December 15, 2015.
 
 
 
 
 
 (8) Formerly Wells Fargo Advantage VT Small Cap Value Fund. Change effective December 15, 2015.
 
 
 
 
 
 (9) Formerly Wells Fargo Advantage VT Opportunity Fund. Change effective December 15, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 

SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets
 
 
 
 
 
 
 
 
 
 
For the Period Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. Money Market Fund
Wells Fargo Advantage VT Omega Growth Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Global Research HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (1)
Sub-Account
Sub-Account (2)
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(589,490
)
$
(123,411
)
$
3,600,582

$
10,487,434

$
(14,042,068
)
$
3,994,487

$
261,994

$
(965,648
)
$
(1,987,132
)
$
(2,237,144
)
  Net realized gain (loss) on security transactions
—

558,020

79,514,570

4,671,427

160,616,735

128,879,784

9,923,989

7,829,418

12,722,573

23,819,939

  Net realized gain distributions
—

1,342,376

—

—

315,086,974

180,126,159

1,291,356

5,903,950

—

2,155,067

  Change in unrealized appreciation (depreciation) during the period
—

(1,652,271
)
28,675,183

13,599,945

(336,136,658
)
(152,386,653
)
(9,309,162
)
3,974,865

(2,187,973
)
6,165,397

  Net increase (decrease) in net assets resulting from operations
(589,490
)
124,714

111,790,335

28,758,806

125,524,983

160,613,777

2,168,177

16,742,585

8,547,468

29,903,259

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
768,676

8,652

8,481,834

3,507,494

8,445,869

7,828,916

92,396

179,686

1,223,844

1,278,178

  Net transfers
89,106,216

(246,373
)
(5,485,259
)
6,001,833

(55,182,539
)
(33,636,908
)
(33,763,970
)
(2,347,608
)
31,259,790

(532,904
)
  Surrenders for benefit payments and fees
(76,939,544
)
(909,940
)
(250,019,106
)
(120,975,267
)
(345,509,744
)
(251,112,686
)
(2,289,295
)
(10,399,647
)
(28,003,454
)
(41,102,559
)
  Other transactions
183

327

26,598

17,093

29,923

31,817

1,665

(4,432
)
4,797

10,426

  Death benefits
(5,312,691
)
(90,812
)
(42,424,127
)
(16,720,492
)
(45,727,904
)
(37,039,900
)
(243,184
)
(1,387,606
)
(3,655,134
)
(4,778,882
)
  Net annuity transactions
689,345

101,968

17,932,711

3,732,420

8,513,249

7,887,048

(275,050
)
252,819

1,075,460

810,483

  Net increase (decrease) in net assets resulting from unit transactions
8,312,185

(1,136,178
)
(271,487,349
)
(124,436,919
)
(429,431,146
)
(306,041,713
)
(36,477,438
)
(13,706,788
)
1,905,303

(44,315,258
)
  Net increase (decrease) in net assets
7,722,695

(1,011,464
)
(159,697,014
)
(95,678,113
)
(303,906,163
)
(145,427,936
)
(34,309,261
)
3,035,797

10,452,771

(14,411,999
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
33,630,633

7,468,211

1,516,791,668

718,141,419

2,431,183,307

1,590,714,189

34,309,261

72,947,205

177,587,816

242,350,442

  End of period
$
41,353,328

$
6,456,747

$
1,357,094,654

$
622,463,306

$
2,127,277,144

$
1,445,286,253

$
—

$
75,983,002

$
188,040,587

$
227,938,443

 
 
 
 
 
 
 
 
 
 
 
(1) Merged with Hartford Global Growth HLS Fund. Change effective June 23, 2014.
 
 
 
 
 
 
 
(2) Merged with Hartford Global Research HLS Fund. Change effective June 23, 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Period Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford Growth HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford High Yield HLS Fund
Hartford Index HLS Fund
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
 
Sub-Account (3)
Sub-Account (4)
Sub-Account
Sub-Account (5)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(858,055
)
$
(3,058,258
)
$
11,420,950

$
480,738

$
2,716,753

$
(101,189
)
$
(3,470,650
)
$
(2,433,939
)
$
(2,442,118
)
$
(2,749,750
)
  Net realized gain (loss) on security transactions
17,571,371

13,778,687

(1,361,108
)
84,719,278

22,936,904

4,005,050

28,576,179

19,813,802

54,291

16,670,266

  Net realized gain distributions
36,140,454

42,349,445

—

9,506,015

—

8,892,584

34,055,370

31,531,701

—

33,826,440

  Change in unrealized appreciation (depreciation) during the period
(49,318,720
)
(29,771,994
)
(7,543,552
)
(89,390,793
)
(49,905,235
)
(11,253,918
)
(31,553,875
)
(33,084,693
)
37,614

(38,280,372
)
  Net increase (decrease) in net assets resulting from operations
3,535,050

23,297,880

2,516,290

5,315,238

(24,251,578
)
1,542,527

27,607,024

15,826,871

(2,350,213
)
9,466,584

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
180,470

2,094,613

1,501,998

698,859

2,534,206

298,625

1,139,925

1,535,825

1,146,665

1,241,550

  Net transfers
(123,218,014
)
108,583,732

(3,888,553
)
(202,425,780
)
2,157,335

(1,416,179
)
(7,007,317
)
(5,136,011
)
(17,360
)
(6,014,871
)
  Surrenders for benefit payments and fees
(10,424,510
)
(35,499,466
)
(35,624,515
)
(26,877,060
)
(75,614,073
)
(8,989,897
)
(33,731,230
)
(38,278,288
)
(36,825,032
)
(25,848,335
)
  Other transactions
3,526

1,268

4,143

337

19,326

(2,099
)
4,132

(1,650
)
6,714

752

  Death benefits
(891,867
)
(4,291,827
)
(4,954,617
)
(3,373,608
)
(8,623,589
)
(801,616
)
(6,833,133
)
(4,611,473
)
(4,633,707
)
(3,814,683
)
  Net annuity transactions
(713,723
)
2,297,029

948,600

(4,005,140
)
1,905,789

262,920

436,457

749,242

436,362

573,632

  Net increase (decrease) in net assets resulting from unit transactions
(135,064,118
)
73,185,349

(42,012,944
)
(235,982,392
)
(77,621,006
)
(10,648,246
)
(45,991,166
)
(45,742,355
)
(39,886,358
)
(33,861,955
)
  Net increase (decrease) in net assets
(131,529,068
)
96,483,229

(39,496,654
)
(230,667,154
)
(101,872,584
)
(9,105,719
)
(18,384,142
)
(29,915,484
)
(42,236,571
)
(24,395,371
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
131,529,068

155,681,975

218,336,536

230,667,154

506,821,743

57,071,140

297,965,842

266,783,674

185,222,153

208,255,216

  End of period
$
—

$
252,165,204

$
178,839,882

$
—

$
404,949,159

$
47,965,421

$
279,581,700

$
236,868,190

$
142,985,582

$
183,859,845

 
 
 
 
 
 
 
 
 
 
 
(3) Merged with Hartford Growth Opportunities HLS Fund. Change effective June 23, 2014.
 
 
 
 
 
 
 
(4) Merged with Hartford Growth HLS Fund. Change effective June 23, 2014.
 
 
 
 
 
 
 
(5) Merged with HIMCO VIT Index Fund. Change effective October 20, 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Period Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Growth V.I. Fund
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(2,161,291
)
$
2,661,060

$
1,070,476

$
(306,246
)
$
(6,769
)
$
(13,303
)
$
(2,684
)
$
(2,732
)
$
(1,273
)
$
(751
)
  Net realized gain (loss) on security transactions
15,721,516

61,504,745

(3,271,572
)
23,134,504

112,742

72,746

9,114

11,402

7,595

7,540

  Net realized gain distributions
24,899,236

—

—

—

45,307

150,058

—

—

—

—

  Change in unrealized appreciation (depreciation) during the period
(34,043,387
)
6,466,617

4,553,658

5,976

(230,652
)
(82,265
)
(583
)
2,402

(60
)
(10,469
)
  Net increase (decrease) in net assets resulting from operations
4,416,074

70,632,422

2,352,562

22,834,234

(79,372
)
127,236

5,847

11,072

6,262

(3,680
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
801,978

3,764,460

1,197,404

1,481,060

749

—

—

—

—

—

  Net transfers
(8,774,572
)
(18,075,548
)
5,053,679

(2,929,550
)
(67,836
)
66,558

228

—

153

—

  Surrenders for benefit payments and fees
(23,747,464
)
(117,810,446
)
(41,639,349
)
(45,361,050
)
(203,662
)
(189,561
)
(14,296
)
(20,822
)
(19,794
)
(18,759
)
  Other transactions
4,303

16,829

12,226

(1,722
)
(1
)
—

(1
)
(1
)
—

—

  Death benefits
(2,159,103
)
(19,050,053
)
(6,500,662
)
(6,234,192
)
(11,743
)
(32,526
)
(15,856
)
—

—

(5,231
)
  Net annuity transactions
537,023

3,095,696

1,512,119

1,638,344

—

—

8,274

—

—

(212
)
  Net increase (decrease) in net assets resulting from unit transactions
(33,337,835
)
(148,059,062
)
(40,364,583
)
(51,407,110
)
(282,493
)
(155,529
)
(21,651
)
(20,823
)
(19,641
)
(24,202
)
  Net increase (decrease) in net assets
(28,921,761
)
(77,426,640
)
(38,012,021
)
(28,572,876
)
(361,865
)
(28,293
)
(15,804
)
(9,751
)
(13,379
)
(27,882
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
159,354,863

834,255,075

224,780,071

271,102,907

1,386,907

1,181,181

139,162

164,759

97,437

61,651

  End of period
$
130,433,102

$
756,828,435

$
186,768,050

$
242,530,031

$
1,025,042

$
1,152,888

$
123,358

$
155,008

$
84,058

$
33,769

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
 
 
 
 
Statements of Changes in Net Assets (concluded)
 
 
 
 
 
 
 
 
 
 
For the Period Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo Advantage VT Index Asset Allocation Fund
Wells Fargo Advantage VT Total Return Bond Fund
Wells Fargo Advantage VT Intrinsic Value Fund
Wells Fargo Advantage VT International Equity Fund
Wells Fargo Advantage VT Small Cap Growth Fund
Wells Fargo Advantage VT Discovery Fund
Wells Fargo Advantage VT Small Cap Value Fund
Wells Fargo Advantage VT Opportunity Fund
HIMCO VIT Index Fund
 
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (6)(7)
 
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(26,169
)
$
(28,167
)
$
(59,135
)
$
46,415

$
(39,503
)
$
(11,187
)
$
(28,697
)
$
(25,497
)
$
(640,766
)
 
  Net realized gain (loss) on security transactions
504,082

(19,404
)
345,704

105,177

172,837

50,279

217,165

130,856

855,640

 
  Net realized gain distributions
—

—

—

110,532

195,951

74,870

—

—

—

 
  Change in unrealized appreciation (depreciation) during the period
664,913

297,993

157,302

(611,260
)
(438,211
)
(131,761
)
(111,494
)
24,697

18,841,002

 
  Net increase (decrease) in net assets resulting from operations
1,142,826

250,422

443,871

(349,136
)
(108,926
)
(17,799
)
76,974

130,056

19,055,876

 
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
13,452

—

600

19,809

3,029

—

1,200

1,243

135,337

 
  Net transfers
80,469

328,954

(145,844
)
277,271

(219,700
)
(145,344
)
(111,707
)
37,976

201,553,796

 
  Surrenders for benefit payments and fees
(893,505
)
(1,583,014
)
(706,791
)
(1,307,901
)
(327,691
)
(52,492
)
(422,947
)
(190,503
)
(7,272,823
)
 
  Other transactions
224

192

(4
)
26

7

12

—

13

610

 
  Death benefits
(143,902
)
(49,843
)
(50,308
)
(209,286
)
(59,674
)
—

(64,765
)
(64,964
)
(656,997
)
 
  Net annuity transactions
45,891

73,652

36,390

44,433

15,018

—

12,969

(697
)
5,199,891

 
  Net increase (decrease) in net assets resulting from unit transactions
(897,371
)
(1,230,059
)
(865,957
)
(1,175,648
)
(589,011
)
(197,824
)
(585,250
)
(216,932
)
198,959,814

 
  Net increase (decrease) in net assets
245,455

(979,637
)
(422,086
)
(1,524,784
)
(697,937
)
(215,623
)
(508,276
)
(86,876
)
218,015,690

 
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
7,833,386

6,969,892

5,907,319

5,613,356

2,620,991

759,218

2,327,819

1,604,436

—

 
  End of period
$
8,078,841

$
5,990,255

$
5,485,233

$
4,088,572

$
1,923,054

$
543,595

$
1,819,543

$
1,517,560

$
218,015,690

 
 
 
 
 
 
 
 
 
 
 
 
(6) Funded as of October 17, 2014.
 
 
 
 
 
 
 
(7) Merged with Hartford Index HLS Fund. Change effective October 20, 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 




SEPARATE ACCOUNT ONE
Hartford Life and Annuity Insurance Company
 
 
 
 
Notes to Financial Statements
 
 
December 31, 2015
 
 
 
 
 

1. Organization:

Separate Account One (the “Account”) is a separate investment account established by Hartford Life and Annuity Insurance Company (the “Sponsor 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 Sponsor Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The contract owners of the Sponsor Company direct their deposits into various investment options (the “Sub-Accounts”) within the Account.

The Account is comprised of the following Sub-Accounts:

Invesco V.I. Money Market Fund, Wells Fargo VT Omega Growth Fund (Formerly Wells Fargo Advantage VT Omega Growth Fund), Hartford Balanced HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Healthcare HLS Fund, Hartford Global Growth HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford High Yield HLS Fund, Hartford International Opportunities HLS Fund, Hartford Small/Mid Cap Equity HLS Fund, Hartford MidCap HLS Fund, Hartford MidCap Value HLS Fund, Hartford Ultrashort Bond HLS Fund, Hartford Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Stock HLS Fund, Hartford U.S. Government Securities HLS Fund, Hartford Value HLS Fund, BlackRock Global Opportunities V.I. Fund, BlackRock Large Cap Growth V.I. Fund, Jennison 20/20 Focus Fund, Jennison Fund, Prudential Value Portfolio, Prudential SP International Growth Portfolio, Wells Fargo VT Index Asset Allocation Fund (Formerly Wells Fargo Advantage VT Index Asset Allocation Fund), Wells Fargo VT Total Return Bond Fund (Formerly Wells Fargo Advantage VT Total Return Bond Fund), Wells Fargo VT Intrinsic Value Fund (Formerly Wells Fargo Advantage VT Intrinsic Value Fund), Wells Fargo VT International Equity Fund (Formerly Wells Fargo Advantage VT International Equity Fund), Wells Fargo VT Small Cap Growth Fund (Formerly Wells Fargo Advantage VT Small Cap Growth Fund), Wells Fargo VT Discovery Fund (Formerly Wells Fargo Advantage VT Discovery Fund), Wells Fargo VT Small Cap Value Fund (Formerly Wells Fargo Advantage VT Small Cap Value Fund), Wells Fargo VT Opportunity Fund (Formerly Wells Fargo Advantage VT Opportunity Fund), and HIMCO VIT Index Fund.

The Sub-Accounts are invested in mutual funds (the “Funds”) of the same name. Each Sub-Account may invest in one or more share classes of a Fund, depending upon the product(s) available in that Sub-Account. A contract owner's unitized performance correlates with the share class associated with the contract owner's product.

If a Fund is subject to a merger by the Fund Manager, the Sub-Account invested in the surviving Fund acquires, at fair value, the net assets of the Sub-Account associated with the merging Fund on the date disclosed. For 2014, the following transfers due to fund mergers are included in net transfers on the statements of changes in net assets:
Surviving Sub-Account
Assets Received
Hartford Global Growth HLS Fund
$
35,369,687

Hartford Growth Opportunities HLS Fund
$
116,672,247

HIMCO VIT Index Fund
$
207,478,281


Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the Sponsor Company’s other assets and liabilities and are not chargeable with liabilities arising out of any other business the Sponsor Company may conduct.

2. Significant Accounting Policies:

The Account qualifies as an investment company and follows the accounting and reporting guidance as defined in Accounting Standards Codification 946, "Financial Services - Investment Companies." 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 ("U.S. GAAP"):

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 average cost method. Dividend income is either accrued daily or as of the ex-dividend date based upon the Fund. Net realized gain distributions are accrued as of the ex-dividend date. Net realized gain distributions represent those dividends from the Funds which are characterized as capital gains under tax regulations.

b) Unit Transactions - Unit transactions are executed based on the unit values calculated at the close of the business day.

c) Federal Income Taxes - The operations of the Account form a part of, and are taxed with, the total operations of the Sponsor Company, which is taxed as an insurance company under the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Sponsor Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to the contract owners. Based on this, no charge is being made currently to the Account for federal income taxes. The Sponsor Company will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts.

d) 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 as of the date of the financial statements and the reported amounts of income and expenses during the period. Actual results could differ from those estimates. The most significant estimates contained within the financial statements are the fair value measurements.

e) Mortality Risk - The mortality risk associated with net assets allocated to contracts in the annuity period is determined using certain mortality tables. The mortality risk is fully borne by the Sponsor Company and may result in additional amounts being transferred into the Account by the Sponsor Company to cover greater longevity of contract owners than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Sponsor Company. These amounts are included in net annuity transactions on the accompanying statements of changes in net assets.

f) Fair Value Measurements - The Sub-Accounts' investments are carried at fair value in the Account’s financial statements. The investments in shares of the Funds are valued at the December 31, 2015 closing net asset value as determined by the appropriate Fund Manager. For financial instruments that are carried at fair value, a hierarchy is used to place the instruments into three broad levels (Levels 1, 2 and 3) by prioritizing the inputs in the valuation techniques used to measure fair value.

Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Account has the ability to access at the measurement date. Level 1 investments include mutual funds.

Level 2: Observable inputs, other than unadjusted quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 2 investments include those that are model priced by vendors using observable inputs.

Level 3: Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.

In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

As of December 31, 2015 the Sub-Accounts invest in mutual funds which are carried at fair value and represent Level 1 investments under the fair value hierarchy levels. There were no Level 2 or Level 3 investments in the Sub-Account. The Account’s policy is to recognize transfers of securities among the levels at the beginning of the reporting period. There were no transfers among the levels for the periods ended December 31, 2015 and 2014.

g) Accounting for Uncertain Tax Positions - Management evaluates whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required at December 31, 2015. The 2012 through 2015 tax years generally remain subject to examination by U.S. Federal and most state tax authorities.

3. Administration of the Account and Related Charges:

Each Sub-Account is charged certain fees, according to contract terms, as follows:

a) Mortality and Expense Risk Charges - The Sponsor Company, as an issuer of variable annuity contracts, assesses mortality and expense risk charges for which it receives a maximum annual fee of 1.50% of the Sub-Account’s average daily net assets. These charges are reflected in the accompanying statements of operations as a reduction in unit value.

b) Annual Maintenance Fees - An annual maintenance fee up to a maximum of $30 may be charged. These charges are deducted through a redemption of units from applicable contract owners’ accounts and are reflected in surrenders for benefit payments and fees in the accompanying statements of changes in net assets.

c) Rider Charges - The Sponsor Company will make certain deductions (as a percentage of average daily Sub-Account value) for various rider charges:

MAV/EPB Death Benefit Charge maximum of 0.30%
The Hartford’s Principal First Charge maximum of 0.75%
The Hartford’s Principal First Preferred Charge maximum of 0.20%
MAV 70 Death Benefit maximum of 0.20%
Optional Death Benefit maximum of 0.15%
Earnings Protection Benefit Charge maximum of 0.20%

These charges can be assessed as a reduction in unit values or a redemption of units from applicable contract owners’ accounts as specified in the product prospectus.

d) Transactions with Related Parties - The Sponsor and its affiliates receive fees from the HLS and HIMCO VIT funds for services provided to these Funds. The fees received for these services are a maximum of 1.11% and 0.55%, respectively, of the Funds’ average daily net assets.

4. Purchases and Sales of Investments:

The cost of purchases and proceeds from sales of investments for the period ended December 31, 2015 were as follows:

Sub-Account
Purchases at Cost
Proceeds from Sales
Invesco V.I. Money Market Fund
 
$
78,524,244

$
73,702,767

Wells Fargo VT Omega Growth Fund+
 
$
1,072,512

$
1,624,022

Hartford Balanced HLS Fund
 
$
38,524,046

$
225,328,028

Hartford Total Return Bond HLS Fund
 
$
49,427,286

$
119,186,328

Hartford Capital Appreciation HLS Fund
 
$
409,620,252

$
344,165,612

Hartford Dividend and Growth HLS Fund
 
$
219,375,979

$
244,219,940

Hartford Healthcare HLS Fund
 
$
9,259,938

$
12,540,679

Hartford Global Growth HLS Fund
 
$
23,427,081

$
37,474,496

Hartford Disciplined Equity HLS Fund
 
$
78,529,698

$
53,677,956

Hartford Growth Opportunities HLS Fund
 
$
82,122,046

$
58,085,281

Hartford High Yield HLS Fund
 
$
26,469,979

$
52,141,699

Hartford International Opportunities HLS Fund
 
$
24,613,916

$
74,533,920

Hartford Small/Mid Cap Equity HLS Fund
 
$
11,006,626

$
12,889,585

Hartford MidCap HLS Fund
 
$
31,068,372

$
39,463,388

Hartford MidCap Value HLS Fund
 
$
39,197,724

$
43,605,690

Hartford Ultrashort Bond HLS Fund
 
$
14,206,246

$
40,960,062

Hartford Small Company HLS Fund
 
$
36,139,998

$
32,266,540

Hartford SmallCap Growth HLS Fund
 
$
24,099,503

$
33,922,981

Hartford Stock HLS Fund
 
$
21,659,896

$
124,381,449

Hartford U.S. Government Securities HLS Fund
 
$
26,041,991

$
47,779,279

Hartford Value HLS Fund
 
$
15,683,846

$
45,555,318

BlackRock Global Opportunities V.I. Fund
 
$
454,399

$
544,801

BlackRock Large Cap Growth V.I. Fund
 
$
89,635

$
300,147

Jennison 20/20 Focus Fund
 
$
37,657

$
6,271

Jennison Fund
 
$
—

$
3,034

Prudential Value Portfolio
 
$
929

$
1,367

Prudential SP International Growth Portfolio
 
$
11

$
12,558

Wells Fargo VT Index Asset Allocation Fund+
 
$
131,417

$
1,832,261

Wells Fargo VT Total Return Bond Fund+
 
$
274,838

$
1,443,797

Wells Fargo VT Intrinsic Value Fund+
 
$
879,867

$
1,806,221

Wells Fargo VT International Equity Fund+
 
$
503,698

$
1,147,823

Wells Fargo VT Small Cap Growth Fund+
 
$
433,963

$
537,629

Wells Fargo VT Discovery Fund+
 
$
112,528

$
95,595

Wells Fargo VT Small Cap Value Fund+
 
$
96,466

$
365,964

Wells Fargo VT Opportunity Fund+
 
$
304,228

$
461,470

HIMCO VIT Index Fund
 
$
7,919,350

$
35,868,558


+ See Note 1 for additional information related to this Sub-Account.

5. Changes in Units Outstanding:

The changes in units outstanding for the period ended December 31, 2015 were as follows:
Sub-Account
 
Units Issued
Units Redeemed
Net Increase/(Decrease)
Invesco V.I. Money Market Fund
 
8,159,084

7,590,666

568,418

Wells Fargo VT Omega Growth Fund+
 
28,618

199,966

(171,348
)
Hartford Balanced HLS Fund
 
10,175,834

62,273,568

(52,097,734
)
Hartford Total Return Bond HLS Fund
 
9,626,933

47,019,452

(37,392,519
)
Hartford Capital Appreciation HLS Fund
 
6,212,531

55,881,022

(49,668,491
)
Hartford Dividend and Growth HLS Fund
 
7,172,045

62,127,196

(54,955,151
)
Hartford Healthcare HLS Fund
 
110,362

2,082,177

(1,971,815
)
Hartford Global Growth HLS Fund
 
7,732,050

18,211,982

(10,479,932
)
Hartford Disciplined Equity HLS Fund
 
5,223,780

23,520,744

(18,296,964
)
Hartford Growth Opportunities HLS Fund
 
9,770,249

18,685,346

(8,915,097
)
Hartford High Yield HLS Fund
 
7,527,582

22,682,751

(15,155,169
)
Hartford International Opportunities HLS Fund
 
11,541,406

34,687,712

(23,146,306
)
Hartford Small/Mid Cap Equity HLS Fund
 
234,304

755,238

(520,934
)
Hartford MidCap HLS Fund
 
244,730

5,342,633

(5,097,903
)
Hartford MidCap Value HLS Fund
 
2,633,182

14,239,885

(11,606,703
)
Hartford Ultrashort Bond HLS Fund
 
10,382,329

30,638,051

(20,255,722
)
Hartford Small Company HLS Fund
 
1,906,736

10,011,011

(8,104,275
)
Hartford SmallCap Growth HLS Fund
 
4,204,158

11,776,224

(7,572,066
)
Hartford Stock HLS Fund
 
5,703,596

33,527,923

(27,824,327
)
Hartford U.S. Government Securities HLS Fund
 
16,924,218

35,762,571

(18,838,353
)
Hartford Value HLS Fund
 
3,161,299

21,073,828

(17,912,529
)
BlackRock Global Opportunities V.I. Fund
 
269,567

331,972

(62,405
)
BlackRock Large Cap Growth V.I. Fund
 
19,732

178,333

(158,601
)
Jennison 20/20 Focus Fund
 
1,705

1,138

567

Jennison Fund
 
—

—

—

Prudential Value Portfolio
 
584

60

524

Prudential SP International Growth Portfolio
 
9

11,611

(11,602
)
Wells Fargo VT Index Asset Allocation Fund+
 
31,949

897,325

(865,376
)
Wells Fargo VT Total Return Bond Fund+
 
139,029

874,326

(735,297
)
Wells Fargo VT Intrinsic Value Fund+
 
107,273

993,737

(886,464
)
Wells Fargo VT International Equity Fund+
 
113,036

422,605

(309,569
)
Wells Fargo VT Small Cap Growth Fund+
 
71,771

147,263

(75,492
)
Wells Fargo VT Discovery Fund+
 
1,476

3,309

(1,833
)
Wells Fargo VT Small Cap Value Fund+
 
6,181

23,984

(17,803
)
Wells Fargo VT Opportunity Fund+
 
10,423

26,091

(15,668
)
HIMCO VIT Index Fund
 
2,386,994

9,150,718

(6,763,724
)

+ See Note 1 for additional information related to this Sub-Account.

The changes in units outstanding for the period ended December 31, 2014 were as follows:
Sub-Account
 
Units Issued
Units Redeemed
Net Increase (Decrease)
Invesco V.I. Money Market Fund
 
12,524,683

11,684,657

840,026

Wells Fargo Advantage VT Omega Growth Fund
 
72,892

286,861

(213,969
)
Hartford Balanced HLS Fund
 
20,502,227

96,664,017

(76,161,790
)
Hartford Total Return Bond HLS Fund
 
18,244,228

69,771,474

(51,527,246
)
Hartford Capital Appreciation HLS Fund
 
14,843,371

88,107,632

(73,264,261
)
Hartford Dividend and Growth HLS Fund
 
15,924,504

102,078,863

(86,154,359
)
Hartford Global Research HLS Fund
 
211,504

2,855,123

(2,643,619
)
Hartford Healthcare HLS Fund
 
442,431

3,596,981

(3,154,550
)
Hartford Global Growth HLS Fund
 
25,783,731

24,090,676

1,693,055

Hartford Disciplined Equity HLS Fund
 
7,622,101

33,597,189

(25,975,088
)
Hartford Growth HLS Fund
 
3,053,110

73,357,218

(70,304,108
)
Hartford Growth Opportunities HLS Fund
 
53,698,480

25,224,647

28,473,833

Hartford High Yield HLS Fund
 
9,247,174

28,747,765

(19,500,591
)
Hartford Index HLS Fund
 
4,011,834

72,836,280

(68,824,446
)
Hartford International Opportunities HLS Fund
 
13,718,916

50,734,721

(37,015,805
)
Hartford Small/Mid Cap Equity HLS Fund
 
634,975

1,324,251

(689,276
)
Hartford MidCap HLS Fund
 
328,237

7,452,932

(7,124,695
)
Hartford MidCap Value HLS Fund
 
6,894,868

23,455,585

(16,560,717
)
Hartford Ultrashort Bond HLS Fund
 
16,610,738

46,539,738

(29,929,000
)
Hartford Small Company HLS Fund
 
4,495,192

16,684,482

(12,189,290
)
Hartford SmallCap Growth HLS Fund
 
5,780,045

19,014,816

(13,234,771
)
Hartford Stock HLS Fund
 
8,478,210

53,667,809

(45,189,599
)
Hartford U.S. Government Securities HLS Fund
 
20,228,126

55,283,132

(35,055,006
)
Hartford Value HLS Fund
 
6,972,207

33,453,136

(26,480,929
)
BlackRock Global Opportunities V.I. Fund
 
168,373

373,089

(204,716
)
BlackRock Large Cap Growth V.I. Fund
 
65,374

167,369

(101,995
)
Jennison 20/20 Focus Fund
 
4,270

14,799

(10,529
)
Jennison Fund
 
—

14,528

(14,528
)
Prudential Value Portfolio
 
182

12,226

(12,044
)
Prudential SP International Growth Portfolio
 
9

21,508

(21,499
)
Wells Fargo Advantage VT Index Asset Allocation Fund
 
422,340

936,142

(513,802
)
Wells Fargo Advantage VT Total Return Bond Fund
 
401,996

1,203,305

(801,309
)
Wells Fargo Advantage VT Intrinsic Value Fund
 
202,742

725,661

(522,919
)
Wells Fargo Advantage VT International Equity Fund
 
218,673

753,925

(535,252
)
Wells Fargo Advantage VT Small Cap Growth Fund
 
37,438

258,901

(221,463
)
Wells Fargo Advantage VT Discovery Fund
 
1,736

10,269

(8,533
)
Wells Fargo Advantage VT Small Cap Value Fund
 
23,225

62,210

(38,985
)
Wells Fargo Advantage VT Opportunity Fund
 
9,475

21,923

(12,448
)
HIMCO VIT Index Fund
 
58,797,848

3,354,426

55,443,422



6. Financial Highlights:

The following is a summary of units, unit fair values, net assets, expense ratios, investment income ratios, and total return ratios for each of the periods presented for the aggregate of all share classes within each Sub- Account that had outstanding units as of and for the period ended December 31, 2015. The ranges presented are calculated using the results of only the contracts with the highest and lowest expense ratios. A specific unit value or ratio may be outside of the range presented in this table due to the initial assigned unit values, combined with varying performance and/or length of time since inception of the presented expense ratios. Investment income and total return ratios are calculated for the period the related share class within the Sub-Account is active, while the expense ratio is annualized. In the case of fund mergers, the expense, investment income, and total return ratios are calculated using only the results of the surviving fund and exclude the results of the fund merged into the surviving fund.



 
 
 Units #
 Unit
Fair Value
Lowest to Highest #
 Net Assets
Expense
Ratio Lowest to Highest*
Investment
Income
Ratio Lowest to Highest**
Total Return Ratio
Lowest to Highest***
Invesco V.I. Money Market Fund
 
2015
4,802,665
$
9.365195

to
$
9.799314

$46,174,809
0.80
%
to
2.55%
0.01
%
to
0.01%
(2.51
)%
to
(0.79)%
 
2014
4,234,247
$
9.606048

to
$
9.876949

$41,353,328
0.80
%
to
2.55%
0.01
%
to
0.01%
(2.51
)%
to
(0.78)%
 
2013
3,394,221
$
9.852873

to
$
9.954980

$33,630,633
0.80
%
to
2.55%
0.01
%
to
0.01%
(1.47
)%
to
(0.45)%
Wells Fargo VT Omega Growth Fund+
 
2015
807,744
$
19.957208

to
$
26.374297

$5,038,566
1.15
%
to
2.35%
—

to
—
(0.74
)%
to
0.19%
 
2014
979,092
$
19.920292

to
$
26.249141

$6,456,747
1.15
%
to
2.55%
—

to
—
1.47
 %
to
2.68%
 
2013
1,193,061
$
19.400901

to
$
26.001572

$7,468,211
1.15
%
to
2.45%
—

to
0.14%
36.83
 %
to
38.28%
 
2012
1,630,901
$
14.029736

to
$
19.080965

$7,159,180
1.15
%
to
2.35%
—

to
—
17.95
 %
to
19.01%
 
2011
1,945,912
$
11.788274

to
$
16.176593

$7,448,683
1.15
%
to
2.35%
—

to
—
(7.56
)%
to
(6.62)%
Hartford Balanced HLS Fund
 
2015
318,046,703
$
1.850919

to
$
19.250700

$1,151,822,744
0.40
%
to
2.55%
1.31
%
to
1.31%
(2.34
)%
to
(0.22)%
 
2014
370,144,437
$
1.855045

to
$
19.712918

$1,357,094,654
0.40
%
to
2.55%
1.83
%
to
2.12%
7.03
 %
to
9.35%
 
2013
446,306,227
$
1.696400

to
$
18.418724

$1,516,791,668
0.40
%
to
2.55%
1.59
%
to
1.77%
18.14
 %
to
20.71%
 
2012
542,794,228
$
1.405407

to
$
15.590722

$1,539,860,855
0.40
%
to
2.55%
2.22
%
to
2.60%
9.20
 %
to
11.57%
 
2011
665,510,176
$
1.259611

to
$
14.276884

$1,690,727,777
0.40
%
to
2.55%
0.53
%
to
1.71%
(0.95
)%
to
1.45%
Hartford Total Return Bond HLS Fund
 
2015
203,642,411
$
1.891093

to
$
12.672052

$519,397,566
0.40
%
to
2.55%
3.06
%
to
3.12%
(3.09
)%
to
(0.98)%
 
2014
241,034,930
$
1.909886

to
$
13.076162

$622,463,306
0.40
%
to
2.55%
3.27
%
to
3.31%
3.22
 %
to
5.46%
 
2013
292,562,176
$
1.810923

to
$
12.668017

$718,141,419
0.40
%
to
2.55%
3.46
%
to
3.98%
(3.85
)%
to
(1.76)%
 
2012
388,786,525
$
1.843325

to
$
13.174951

$973,364,764
0.40
%
to
2.55%
2.57
%
to
4.02%
4.83
 %
to
7.11%
 
2011
457,697,610
$
1.721013

to
$
12.567872

$1,069,183,844
0.40
%
to
2.55%
0.22
%
to
0.22%
4.04
 %
to
6.56%
Hartford Capital Appreciation HLS Fund
 
2015
287,688,269
$
3.593428

to
$
23.016388

$1,828,090,300
0.80
%
to
2.55%
0.62
%
to
0.84%
(1.75
)%
to
0.21%
 
2014
337,356,760
$
3.585829

to
$
23.426717

$2,127,277,144
0.80
%
to
2.55%
0.75
%
to
0.84%
4.34
 %
to
6.45%
 
2013
410,621,021
$
3.368498

to
$
22.451963

$2,431,183,307
0.80
%
to
2.55%
0.82
%
to
0.87%
35.23
 %
to
37.97%
 
2012
512,020,129
$
2.441453

to
$
16.602826

$2,190,819,802
0.80
%
to
2.55%
0.94
%
to
1.38%
15.07
 %
to
17.40%
 
2011
652,417,123
$
1.501135

to
$
14.540101

$2,330,915,963
0.40
%
to
2.55%
0.28
%
to
0.80%
(13.85
)%
to
(11.76)%
Hartford Dividend and Growth HLS Fund
 
2015
321,237,822
$
2.721082

to
$
20.330445

$1,201,832,788
0.80
%
to
2.55%
1.02
%
to
1.43%
(3.89
)%
to
(1.94)%
 
2014
376,192,973
$
2.775051

to
$
21.153929

$1,445,286,253
0.80
%
to
2.55%
1.70
%
to
1.79%
9.85
 %
to
12.06%
 
2013
462,347,332
$
2.476393

to
$
19.257583

$1,590,714,189
0.80
%
to
2.55%
1.86
%
to
2.30%
28.27
 %
to
30.87%
 
2012
575,670,964
$
1.892224

to
$
15.013240

$1,517,879,193
0.80
%
to
2.55%
2.02
%
to
2.08%
10.46
 %
to
12.69%
 
2011
727,801,665
$
1.496583

to
$
13.696281

$1,688,889,798
0.40
%
to
2.55%
1.29
%
to
2.11%
(1.48
)%
to
0.91%
Hartford Healthcare HLS Fund
 
2015
13,037,228
$
6.151035

to
$
34.002148

$73,635,373
0.80
%
to
2.55%
—

to
—
10.13
 %
to
12.31%
 
2014
15,009,043
$
5.476878

to
$
30.873490

$75,983,002
0.80
%
to
2.55%
0.04
%
to
0.25%
23.80
 %
to
26.38%
 
2013
18,163,593
$
4.333651

to
$
24.937357

$72,947,205
0.80
%
to
2.55%
0.37
%
to
0.50%
47.69
 %
to
50.63%
 
2012
22,689,310
$
2.876933

to
$
16.885262

$60,500,984
0.80
%
to
2.55%
0.13
%
to
0.38%
17.30
 %
to
19.66%
 
2011
28,975,517
$
2.404168

to
$
14.395458

$64,983,686
0.80
%
to
2.55%
—

to
0.05%
5.54
 %
to
7.67%
Hartford Global Growth HLS Fund
 
2015
85,691,969
$
2.069529

to
$
22.822896

$179,031,817
0.80
%
to
2.55%
0.50
%
to
0.52%
5.32
 %
to
7.18%
 
2014
96,171,901
$
1.930927

to
$
21.670355

$188,040,587
0.80
%
to
2.55%
0.48
%
to
0.51%
4.10
 %
to
5.94%
 
2013
94,478,846
$
1.822696

to
$
20.816848

$177,587,816
0.80
%
to
2.55%
0.73
%
to
0.74%
32.87
 %
to
35.21%
 
2012
120,116,052
$
1.348049

to
$
15.667530

$166,913,960
0.80
%
to
2.55%
0.22
%
to
0.53%
20.30
 %
to
22.42%
 
2011
153,816,605
$
1.101138

to
$
13.023572

$174,866,682
0.80
%
to
2.55%
—

to
0.03%
(16.27
)%
to
(14.57)%
Hartford Disciplined Equity HLS Fund
 
2015
89,405,114
$
2.179532

to
$
25.060840

$201,194,993
0.80
%
to
2.55%
0.74
%
to
1.44%
4.15
 %
to
5.98%
 
2014
107,702,078
$
2.056488

to
$
24.063400

$227,938,443
0.80
%
to
2.55%
0.68
%
to
2.24%
13.26
 %
to
15.26%
 
2013
133,677,166
$
1.784287

to
$
21.246786

$242,350,442
0.80
%
to
2.55%
0.95
%
to
1.01%
32.40
 %
to
34.74%
 
2012
174,299,526
$
1.324286

to
$
16.047298

$232,837,326
0.80
%
to
2.55%
1.27
%
to
1.45%
14.66
 %
to
16.68%
 
2011
225,692,959
$
1.094676

to
$
13.995519

$259,096,596
0.40
%
to
2.55%
0.20
%
to
1.20%
(1.64
)%
to
0.75%
Hartford Growth Opportunities HLS Fund
 
2015
81,629,387
$
3.460506

to
$
26.893486

$252,355,701
0.40
%
to
2.55%
0.03
%
to
0.13%
8.92
 %
to
11.29%
 
2014
90,544,484
$
3.109462

to
$
24.690357

$252,165,204
0.40
%
to
2.55%
0.13
%
to
0.17%
11.27
 %
to
13.69%
 
2013
62,070,651
$
2.735071

to
$
22.189472

$155,681,975
0.40
%
to
2.55%
0.01
%
to
0.01%
32.33
 %
to
35.20%
 
2012
75,494,043
$
2.022954

to
$
16.768515

$139,064,857
0.40
%
to
2.55%
—

to
—
23.67
 %
to
26.35%
 
2011
93,080,274
$
1.540240

to
$
13.559432

$137,044,872
0.80
%
to
2.55%
—

to
—
(11.39
)%
to
(9.60)%
Hartford High Yield HLS Fund
 
2015
64,117,780
$
2.186871

to
$
18.981158

$136,564,163
0.80
%
to
2.55%
6.44
%
to
6.65%
(6.71
)%
to
(5.07)%
 
2014
79,272,949
$
2.303596

to
$
20.347426

$178,839,882
0.80
%
to
2.55%
7.37
%
to
8.40%
—

to
1.76%
 
2013
98,773,540
$
2.263745

to
$
20.348314

$218,336,536
0.80
%
to
2.55%
6.30
%
to
7.84%
3.75
 %
to
5.58%
 
2012
122,942,222
$
2.144052

to
$
19.612630

$255,551,730
0.80
%
to
2.55%
8.47
%
to
8.55%
10.26
 %
to
13.40%
 
2011
147,368,045
$
1.890687

to
$
17.600139

$270,761,365
0.80
%
to
2.55%
8.43
%
to
9.30%
1.81
 %
to
3.86%
Hartford International Opportunities HLS Fund
 
2015
172,053,781
$
1.811811

to
$
16.824799

$358,923,952
0.80
%
to
2.55%
1.41
%
to
1.65%
(0.69
)%
to
1.06%
 
2014
195,200,087
$
1.792737

to
$
16.941682

$404,949,159
0.80
%
to
2.55%
2.16
%
to
2.30%
(6.30
)%
to
(4.64)%
 
2013
232,215,892
$
1.879979

to
$
18.079868

$506,821,743
0.80
%
to
2.55%
2.14
%
to
2.49%
18.49
 %
to
20.58%
 
2012
289,448,409
$
1.559067

to
$
15.258314

$522,452,177
0.80
%
to
2.55%
1.59
%
to
1.89%
17.17
 %
to
19.24%
 
2011
373,539,860
$
1.307524

to
$
13.022272

$562,378,168
0.80
%
to
2.55%
0.03
%
to
0.04%
(16.35
)%
to
(14.66)%
Hartford Small/Mid Cap Equity HLS Fund
 
2015
2,430,348
$
16.038953

to
$
24.894745

$37,027,846
0.80
%
to
2.55%
0.96
%
to
1.20%
(7.36
)%
to
(5.49)%
 
2014
2,951,282
$
16.971289

to
$
26.873052

$47,965,421
0.80
%
to
2.55%
0.21
%
to
1.52%
2.36
 %
to
4.39%
 
2013
3,640,558
$
16.258339

to
$
26.320933

$57,071,140
0.80
%
to
2.50%
1.29
%
to
1.47%
33.70
 %
to
36.42%
 
2012
4,180,905
$
11.918226

to
$
19.686458

$48,498,557
0.80
%
to
2.50%
0.31
%
to
0.59%
12.73
 %
to
14.95%
 
2011
5,497,196
$
10.368228

to
$
17.566045

$55,971,267
0.80
%
to
2.55%
—

to
—
(3.63
)%
to
(1.92)%
Hartford MidCap HLS Fund
 
2015
37,334,526
$
5.174805

to
$
24.291157

$246,109,550
0.80
%
to
2.55%
0.08
%
to
0.08%
(1.21
)%
to
0.79%
 
2014
42,432,429
$
5.134350

to
$
24.589850

$279,581,700
0.80
%
to
2.55%
—

to
0.10%
8.30
 %
to
10.48%
 
2013
49,557,124
$
4.647111

to
$
22.706284

$297,965,842
0.80
%
to
2.55%
0.02
%
to
0.11%
35.95
 %
to
38.70%
 
2012
60,872,158
$
3.350368

to
$
16.702019

$264,557,017
0.80
%
to
2.55%
0.58
%
to
0.76%
16.14
 %
to
18.49%
 
2011
73,689,521
$
2.827567

to
$
14.380685

$272,950,569
0.80
%
to
2.55%
0.19
%
to
0.68%
(10.48
)%
to
(8.65)%
Hartford MidCap Value HLS Fund
 
2015
73,223,975
$
3.200132

to
$
27.233257

$198,831,957
0.40
%
to
2.55%
0.14
%
to
0.58%
(3.70
)%
to
(1.61)%
 
2014
84,830,678
$
3.252366

to
$
28.279521

$236,868,190
0.40
%
to
2.55%
0.51
%
to
0.68%
5.49
 %
to
7.78%
 
2013
101,391,395
$
3.017475

to
$
26.807485

$266,783,674
0.40
%
to
2.55%
1.25
%
to
1.26%
31.32
 %
to
34.17%
 
2012
121,312,313
$
2.248978

to
$
20.413988

$238,763,669
0.40
%
to
2.55%
—

to
0.89%
21.81
 %
to
24.45%
 
2011
152,517,725
$
1.731643

to
$
16.759168

$244,404,726
0.80
%
to
2.55%
0.01
%
to
0.01%
(11.09
)%
to
(9.29)%
Hartford Ultrashort Bond HLS Fund
 
2015
86,898,704
$
1.149177

to
$
8.326716

$116,065,166
0.40
%
to
2.55%
—

to
0.32%
(2.61
)%
to
(0.28)%
 
2014
107,154,426
$
1.152385

to
$
8.578740

$142,985,582
0.40
%
to
2.55%
—

to
—
(2.42
)%
to
(0.30)%
 
2013
137,083,426
$
1.155910

to
$
8.791539

$185,222,153
0.40
%
to
2.55%
—

to
—
(2.52
)%
to
(0.40)%
 
2012
197,205,033
$
1.160594

to
$
9.018619

$270,979,335
0.40
%
to
2.55%
—

to
—
(2.52
)%
to
(0.40)%
 
2011
253,806,826
$
1.165294

to
$
9.251565

$348,699,155
0.40
%
to
2.55%
—

to
—
(2.52
)%
to
(0.40)%
Hartford Small Company HLS Fund
 
2015
50,571,939
$
2.588853

to
$
22.255194

$143,602,098
0.80
%
to
2.55%
—

to
—
(10.52
)%
to
(8.94)%
 
2014
58,676,214
$
2.843139

to
$
24.872900

$183,859,845
0.80
%
to
2.55%
—

to
—
4.38
 %
to
6.22%
 
2013
70,865,504
$
2.676695

to
$
23.830247

$208,255,216
0.80
%
to
2.55%
0.09
%
to
0.14%
40.75
 %
to
43.23%
 
2012
85,716,186
$
1.868812

to
$
16.931244

$175,238,367
0.80
%
to
2.55%
—

to
—
12.73
 %
to
14.72%
 
2011
107,444,014
$
1.629049

to
$
15.019432

$190,769,905
0.80
%
to
2.55%
—

to
—
(6.05
)%
to
(4.13)%
Hartford SmallCap Growth HLS Fund
 
2015
40,933,856
$
2.952296

to
$
29.889338

$108,172,352
0.40
%
to
2.55%
0.08
%
to
0.09%
(3.05
)%
to
(0.94)%
 
2014
48,505,922
$
2.980426

to
$
30.830062

$130,433,102
0.40
%
to
2.55%
0.07
%
to
0.07%
3.17
 %
to
5.41%
 
2013
61,740,693
$
2.827391

to
$
29.882823

$159,354,863
0.40
%
to
2.55%
0.39
%
to
0.41%
41.23
 %
to
44.29%
 
2012
78,037,553
$
1.959485

to
$
21.159468

$139,451,753
0.40
%
to
2.55%
—

to
—
14.44
 %
to
16.93%
 
2011
103,870,127
$
1.612183

to
$
18.489306

$160,234,058
0.80
%
to
2.55%
—

to
—
(1.38
)%
to
0.61%
Hartford Stock HLS Fund
 
2015
164,122,121
$
1.713905

to
$
24.023479

$660,643,292
0.80
%
to
2.55%
0.23
%
to
1.70%
0.16
 %
to
1.92%
 
2014
191,946,448
$
1.681543

to
$
23.985897

$756,828,435
0.80
%
to
2.55%
1.71
%
to
9.36%
8.50
 %
to
10.42%
 
2013
237,136,047
$
1.522857

to
$
22.105924

$834,255,075
0.80
%
to
2.55%
1.82
%
to
2.39%
28.92
 %
to
31.19%
 
2012
298,415,521
$
1.160781

to
$
17.147153

$789,368,690
0.80
%
to
2.55%
1.82
%
to
1.95%
11.51
 %
to
13.47%
 
2011
385,624,897
$
1.022957

to
$
15.377877

$867,187,184
0.80
%
to
2.55%
0.23
%
to
1.30%
(3.83
)%
to
(1.88)%
Hartford U.S. Government Securities HLS Fund
 
2015
136,990,456
$
1.326201

to
$
10.046689

$164,814,005
0.80
%
to
2.55%
1.78
%
to
2.56%
(1.00
)%
to
0.75%
 
2014
155,828,809
$
1.316273

to
$
10.147667

$186,768,050
0.80
%
to
2.55%
2.55
%
to
2.86%
0.23
 %
to
2.00%
 
2013
190,883,815
$
1.290524

to
$
10.124767

$224,780,071
0.80
%
to
2.55%
1.92
%
to
2.29%
(4.16
)%
to
(2.47)%
 
2012
258,352,947
$
1.323141

to
$
10.563991

$317,962,428
0.80
%
to
2.55%
1.99
%
to
2.78%
1.09
 %
to
2.87%
 
2011
298,988,313
$
1.286224

to
$
10.450561

$356,895,093
0.80
%
to
2.55%
1.35
%
to
2.59%
1.98
 %
to
4.04%
Hartford Value HLS Fund
 
2015
99,435,533
$
2.179247

to
$
20.083965

$196,284,272
0.80
%
to
2.55%
1.34
%
to
1.50%
(5.52
)%
to
(3.85)%
 
2014
117,348,062
$
2.266609

to
$
21.257953

$242,530,031
0.80
%
to
2.55%
1.38
%
to
1.74%
8.56
 %
to
10.48%
 
2013
143,828,991
$
2.051624

to
$
19.581385

$271,102,907
0.80
%
to
2.55%
1.62
%
to
1.84%
28.62
 %
to
30.89%
 
2012
181,822,992
$
1.567439

to
$
15.224093

$263,264,891
0.80
%
to
2.55%
2.09
%
to
5.43%
14.04
 %
to
16.05%
 
2011
230,949,355
$
1.350602

to
$
13.349502

$289,724,526
0.80
%
to
2.55%
0.23
%
to
1.56%
(4.67
)%
to
(2.74)%
BlackRock Global Opportunities V.I. Fund
 
2015
614,561
$
1.467442

to
$
17.084505

$916,632
1.25
%
to
2.20%
0.07
%
to
1.11%
(1.48
)%
to
(0.54)%
 
2014
676,966
$
1.475365

to
$
17.340787

$1,025,042
1.25
%
to
2.20%
1.06
%
to
1.17%
(6.24
)%
to
(5.34)%
 
2013
881,682
$
1.558655

to
$
18.494662

$1,386,907
1.25
%
to
2.20%
0.32
%
to
0.63%
26.95
 %
to
28.16%
 
2012
1,243,869
$
1.216142

to
$
14.568218

$1,535,141
1.25
%
to
2.20%
0.95
%
to
1.16%
12.12
 %
to
13.19%
 
2011
1,237,908
$
1.074414

to
$
12.933033

$1,394,722
1.25
%
to
2.35%
1.01
%
to
1.11%
(14.43
)%
to
(13.48)%
BlackRock Large Cap Growth V.I. Fund
 
2015
505,371
$
1.580319

to
$
23.721909

$913,685
1.25
%
to
2.55%
0.61
%
to
0.64%
0.14
 %
to
1.45%
 
2014
663,972
$
1.557693

to
$
23.688282

$1,152,888
1.25
%
to
2.55%
0.46
%
to
0.54%
11.29
 %
to
12.75%
 
2013
765,967
$
1.381592

to
$
21.285115

$1,181,181
1.25
%
to
2.55%
0.70
%
to
0.72%
30.55
 %
to
32.26%
 
2012
1,090,144
$
1.044631

to
$
16.438427

$1,226,042
1.25
%
to
2.35%
1.19
%
to
1.40%
12.55
 %
to
13.79%
 
2011
1,491,129
$
0.918020

to
$
14.673667

$1,427,813
1.25
%
to
2.20%
0.84
%
to
0.87%
0.22
 %
to
1.18%
Jennison 20/20 Focus Fund
 
2015
36,723
$
1.944031

to
$
2.151677

$162,622
1.45
%
to
2.30%
—

to
—
3.46
 %
to
4.34%
 
2014
36,156
$
1.879107

to
$
2.062199

$123,358
1.45
%
to
2.30%
—

to
—
4.28
 %
to
5.17%
 
2013
46,685
$
1.802036

to
$
1.960876

$139,162
1.45
%
to
2.30%
—

to
—
26.41
 %
to
27.49%
 
2012
72,784
$
1.425493

to
$
1.509401

$127,743
1.60
%
to
2.30%
—

to
—
8.10
 %
to
8.86%
 
2011
77,035
$
1.318656

to
$
1.386548

$123,385
1.60
%
to
2.30%
—

to
—
(6.68
)%
to
(6.02)%
Jennison Fund
 
2015
98,069
$
1.233693

to
$
1.558138

$168,977
1.45
%
to
2.30%
—

to
—
8.51
 %
to
9.43%
 
2014
98,069
$
1.127362

to
$
1.436004

$155,008
1.45
%
to
2.30%
—

to
—
7.09
 %
to
8.00%
 
2013
112,597
$
1.043813

to
$
1.340935

$164,759
1.45
%
to
2.30%
—

to
—
34.00
 %
to
35.14%
 
2012
145,251
$
0.772397

to
$
1.000713

$122,468
1.45
%
to
2.30%
—

to
—
13.10
 %
to
14.06%
 
2011
214,730
$
0.677174

to
$
0.884826

$154,985
1.45
%
to
2.30%
—

to
—
(2.36
)%
to
(1.52)%
Prudential Value Portfolio
 
2015
46,956
$
1.572872

to
$
1.655693

$76,514
1.45
%
to
1.80%
—

to
—
(10.18
)%
to
(9.86)%
 
2014
46,432
$
1.751081

to
$
1.836843

$84,058
1.45
%
to
1.80%
—

to
—
7.70
 %
to
8.08%
 
2013
58,476
$
1.625821

to
$
1.699491

$97,437
1.45
%
to
1.80%
—

to
—
30.17
 %
to
30.62%
 
2012
72,428
$
1.249028

to
$
1.301074

$92,135
1.45
%
to
1.80%
0.55
%
to
0.56%
12.10
 %
to
12.49%
 
2011
117,890
$
1.114204

to
$
1.156582

$134,644
1.45
%
to
1.80%
0.52
%
to
0.55%
(7.57
)%
to
(7.24)%
Prudential SP International Growth Portfolio
 
2015
20,236
$
1.080426

to
$
1.137329

$22,175
1.45
%
to
1.80%
—

to
—
1.25
 %
to
1.60%
 
2014
31,838
$
1.021684

to
$
1.119391

$33,769
1.45
%
to
2.15%
—

to
—
(8.12
)%
to
(7.47)%
 
2013
53,337
$
1.111944

to
$
1.209775

$61,651
1.45
%
to
2.15%
—

to
—
15.99
 %
to
16.81%
 
2012
75,010
$
0.958633

to
$
1.035710

$74,636
1.45
%
to
2.15%
—

to
—
19.27
 %
to
20.11%
 
2011
90,923
$
0.790577

to
$
0.862317

$74,967
1.45
%
to
2.30%
0.45
%
to
0.45%
(17.24
)%
to
(16.54)%
Wells Fargo VT Index Asset Allocation Fund+
 
2015
3,392,294
$
2.063474

to
$
19.632756

$6,403,060
1.15
%
to
2.55%
0.99
%
to
1.03%
(1.30
)%
to
0.09%
 
2014
4,257,670
$
2.061600

to
$
19.891548

$8,078,841
1.15
%
to
2.55%
0.91
%
to
1.53%
15.09
 %
to
16.71%
 
2013
4,771,472
$
1.766455

to
$
17.283833

$7,833,386
1.15
%
to
2.55%
1.64
%
to
1.65%
16.62
 %
to
18.26%
 
2012
5,829,230
$
1.493657

to
$
14.820468

$8,172,074
1.15
%
to
2.55%
1.44
%
to
1.46%
10.19
 %
to
11.74%
 
2011
8,132,430
$
1.336704

to
$
13.449999

$10,255,917
1.15
%
to
2.55%
3.14
%
to
3.15%
3.80
 %
to
5.27%
Wells Fargo VT Total Return Bond Fund+
 
2015
3,088,967
$
1.669813

to
$
12.406404

$4,768,920
1.15
%
to
2.45%
1.29
%
to
1.29%
(2.29
)%
to
(1.01)%
 
2014
3,824,264
$
1.686827

to
$
12.696782

$5,990,255
1.15
%
to
2.45%
1.04
%
to
1.36%
3.04
 %
to
4.38%
 
2013
4,625,573
$
1.615983

to
$
12.354089

$6,969,892
1.15
%
to
2.40%
1.24
%
to
1.24%
(4.75
)%
to
(3.55)%
 
2012
5,752,665
$
1.675435

to
$
12.969731

$9,051,170
1.15
%
to
2.40%
0.34
%
to
1.45%
3.59
 %
to
4.89%
 
2011
6,535,875
$
1.443061

to
$
1.597306

$9,838,981
1.15
%
to
2.20%
2.68
%
to
2.76%
5.97
 %
to
7.08%
Wells Fargo VT Intrinsic Value Fund+
 
2015
2,275,942
$
1.589556

to
$
1.857041

$3,865,510
1.15
%
to
2.30%
0.33
%
to
0.87%
(2.79
)%
to
(1.66)%
 
2014
3,162,406
$
1.635136

to
$
1.888430

$5,485,233
1.15
%
to
2.30%
0.76
%
to
0.85%
7.80
 %
to
9.05%
 
2013
3,685,325
$
1.516779

to
$
1.731711

$5,907,319
1.15
%
to
2.30%
1.02
%
to
1.04%
27.34
 %
to
28.81%
 
2012
4,614,758
$
1.191094

to
$
1.344346

$5,802,357
1.15
%
to
2.30%
1.35
%
to
1.36%
16.75
 %
to
18.10%
 
2011
5,732,007
$
1.020168

to
$
1.138271

$6,154,961
1.15
%
to
2.30%
0.52
%
to
0.53%
(4.38
)%
to
(3.27)%
Wells Fargo VT International Equity Fund+
 
2015
1,493,343
$
12.207047

to
$
13.115614

$3,433,190
1.15
%
to
2.45%
3.92
%
to
4.17%
(0.18
)%
to
0.64%
 
2014
1,802,912
$
13.032632

to
$
14.110772

$4,088,572
1.15
%
to
2.55%
—

to
2.90%
(7.69
)%
to
(6.44)%
 
2013
2,338,164
$
13.929161

to
$
15.402728

$5,613,356
1.15
%
to
2.40%
2.20
%
to
2.38%
17.09
 %
to
18.15%
 
2012
2,922,221
$
11.788898

to
$
13.181039

$5,835,366
1.15
%
to
2.35%
1.37
%
to
1.63%
11.04
 %
to
12.18%
 
2011
3,409,293
$
10.508483

to
$
11.833521

$6,148,965
1.15
%
to
2.45%
0.30
%
to
0.65%
(14.90
)%
to
(13.91)%
Wells Fargo VT Small Cap Growth Fund+
 
2015
485,932
$
2.435065

to
$
25.894774

$1,586,185
1.15
%
to
2.45%
—

to
—
(5.23
)%
to
(3.99)%
 
2014
561,424
$
2.536339

to
$
27.324790

$1,923,054
1.15
%
to
2.45%
—

to
—
(4.25
)%
to
(3.00)%
 
2013
782,887
$
2.614760

to
$
18.439700

$2,620,991
1.15
%
to
2.40%
—

to
—
46.99
 %
to
48.52%
 
2012
903,063
$
1.573930

to
$
1.760603

$1,993,621
1.15
%
to
2.20%
—

to
—
5.52
 %
to
6.64%
 
2011
1,169,373
$
1.651001

to
$
11.876449

$2,376,964
1.15
%
to
2.45%
—

to
—
(6.66
)%
to
(5.69)%
Wells Fargo VT Discovery Fund+
 
2015
20,796
$
22.426308

to
$
25.061863

$481,937
1.15
%
to
2.20%
—

to
—
(3.61
)%
to
(2.59)%
 
2014
22,629
$
23.265550

to
$
25.728106

$543,595
1.15
%
to
2.20%
—

to
—
(1.83
)%
to
(0.79)%
 
2013
31,162
$
23.699019

to
$
25.933633

$759,218
1.15
%
to
2.20%
—

to
0.01%
40.68
 %
to
42.16%
 
2012
41,932
$
16.910459

to
$
18.242749

$733,239
1.15
%
to
2.15%
—

to
—
15.23
 %
to
16.39%
 
2011
50,732
$
14.675055

to
$
15.570971

$766,783
1.25
%
to
2.15%
—

to
—
(1.71
)%
to
(0.82)%
Wells Fargo VT Small Cap Value Fund+
 
2015
107,337
$
12.322381

to
$
14.482120

$1,369,303
1.25
%
to
2.45%
0.24
%
to
0.56%
(12.52
)%
to
(11.74)%
 
2014
125,140
$
14.022564

to
$
16.409169

$1,819,543
1.25
%
to
2.55%
—

to
0.35%
2.00
 %
to
3.16%
 
2013
164,125
$
13.795343

to
$
15.906473

$2,327,819
1.25
%
to
2.45%
0.69
%
to
0.89%
13.33
 %
to
37.95%
 
2012
199,845
$
12.290051

to
$
14.142622

$2,520,560
1.15
%
to
2.45%
0.85
%
to
1.12%
11.57
 %
to
12.69%
 
2011
232,956
$
11.015731

to
$
12.549726

$2,618,380
1.15
%
to
2.45%
0.67
%
to
0.87%
(9.31
)%
to
(8.32)%
Wells Fargo VT Opportunity Fund+
 
2015
71,140
$
15.516077

to
$
19.376182

$1,185,319
1.15
%
to
2.35%
0.17
%
to
0.40%
(5.10
)%
to
(4.19)%
 
2014
86,808
$
16.350729

to
$
20.224141

$1,517,560
1.15
%
to
2.35%
0.06
%
to
0.30%
8.13
 %
to
9.16%
 
2013
99,256
$
15.103493

to
$
18.526761

$1,604,436
1.15
%
to
2.40%
—

to
0.23%
27.89
 %
to
29.19%
 
2012
130,671
$
11.841552

to
$
14.341170

$1,647,871
1.15
%
to
2.20%
0.05
%
to
0.60%
13.28
 %
to
14.20%
 
2011
165,421
$
10.452910

to
$
12.557748

$1,835,957
1.15
%
to
2.20%
—

to
0.14%
(6.60
)%
to
4.53%
HIMCO VIT Index Fund
 
2015
48,679,698
$
1.802041

to
$
21.530825

$189,250,741
0.80
%
to
2.55%
0.35
%
to
0.42%
(1.72
)%
to
0.26%
 
2014
55,443,422
$
1.797411

to
$
21.906690

$218,015,690
0.80
%
to
2.55%
—

to
—
4.07
 %
to
5.11%



*Represents the annualized contract expenses of the Sub-Account for the period 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. Where the expense ratio is the same for each unit value, it is presented in both the lowest and highest columns.

**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 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. Where the investment income ratio is the same for each unit value, it is presented in both the lowest and highest columns.

***Represents the total return for the period 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 period indicated or from the effective date through the end of the reporting period.

# Rounded units/unit fair values. Where only one unit value exists, it is presented in both the lowest and highest columns.
+ See Note 1 for additional information related to this Sub-Account.

7. Subsequent Events:

Management has evaluated events subsequent to December 31, 2015 noting there are no subsequent events requiring adjustment or disclosure in the financial statements.



 













Hartford Life and Annuity
Insurance Company
 
Independent Auditors' Report
 
Financial Statements - Statutory-Basis
As of December 31, 2015 and 2014, and for the
Years Ended December 31, 2015, 2014 and 2013






HARTFORD LIFE AND ANNUITY INSURANCE COMPANY






CONTENTS



 
 
Page
Independent Auditors' Report
 
 
 
Financial Statements - Statutory-Basis:
 
 
Admitted Assets, Liabilities and Capital and Surplus
 
Statements of Operations
 
Statements of Changes in Capital and Surplus
 
Statements of Cash Flows
 
Notes to Statutory-Basis Financial Statements
7-49



 
Deloitte & Touche LLP
185 Asylum Street
 
Hartford, CT 06103
 
USA
 
 
 
Tel: 860-725-3000
INDEPENDENT AUDITORS' REPORT
Fax: 860-725-3500
www.deloitte.com
To the Board of Directors of
Hartford Life and Annuity Insurance Company
Hartford, Connecticut

We have audited the accompanying statutory-basis financial statements of Hartford Life and Annuity Insurance Company (the "Company"), which comprise the statutory-basis statements of admitted assets, liabilities, and capital and surplus as of December 31, 2015 and 2014, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flows for each of the three years in the period ended December 31, 2015, and the related notes to the statutory-basis financial statements.

Management’s Responsibility for the Statutory-Basis Financial Statements

Management is responsible for the preparation and fair presentation of these statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by the Insurance Department of the State of Connecticut. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these statutory-basis financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statutory-basis financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statutory-basis financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the statutory-basis financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the statutory-basis financial statements in order to design 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. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statutory-basis financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

As described in Note 2 to the statutory-basis financial statements, the statutory-basis financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Insurance Department of the State of Connecticut, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Insurance Department of the State of Connecticut.







Member of
Deloitte Touche Tohmatsu Limited


The effects on the statutory-basis financial statements of the variances between the statutory-basis of accounting described in Note 2 to the statutory-basis financial statements and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America paragraph, the statutory-basis financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2015 and 2014, or the results of its operations or its cash flows for each of the three years in the period ended December
31, 2015.

Opinion on Statutory Basis of Accounting

In our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in accordance with the accounting practices prescribed or permitted by the Insurance Department of the State of Connecticut as described in Note 2 to the statutory-basis financial statements.


April 8, 2016


HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS
(STATUTORY-BASIS)
 
As of December 31,
 
2015
 
2014
Admitted assets
 
 
 
Bonds
4,887,305,260

 
$
5,222,504,562

Common and preferred stocks
367,027,717

 
421,420,428

Mortgage loans on real estate
549,789,164

 
630,597,256

Contract loans
113,806,515

 
111,304,205

Cash and short-term investments
566,901,490

 
1,165,885,527

Derivatives
417,711,477

 
438,078,322

Other invested assets
168,473,028

 
171,326,391

Total cash and invested assets
7,071,014,651

 
8,161,116,691

 
 
 
 
Investment income due and accrued
194,004,606

 
173,342,988

Amounts recoverable for reinsurance
51,165,193

 
50,979,170

Federal income tax recoverable
384,101,352

 
314,503,230

Net deferred tax asset
233,491,340

 
268,561,509

Receivables from parent, subsidiaries and affiliates
—

 
25,391,221

Other assets
65,038,374

 
89,731,025

Separate Account assets
32,190,324,610

 
38,162,711,736

Total admitted assets
$
40,189,140,126

 
$
47,246,337,570

 
 
 
 
Liabilities
 
 
 
Aggregate reserves for future benefits
3,704,807,749

 
$
3,871,818,441

Liability for deposit-type contracts
972,209,477

 
1,172,347,898

Policy and contract claim liabilities
20,482,328

 
19,103,904

Asset valuation reserve
57,553,274

 
62,391,546

Interest maintenance reserve
10,254,682

 
24,706,940

Payables to parent, subsidiaries and affiliates
22,991,721

 
31,185,084

Accrued expense allowances and amounts
due from Separate Accounts
(176,281,093
)
 
(270,796,113
)
Collateral on derivatives
311,806,014

 
283,440,461

Other liabilities
449,709,688

 
480,530,643

Separate Account liabilities
32,190,324,610

 
38,162,711,736

Total liabilities
37,563,858,450

 
43,837,440,540

 
 
 
 
Capital and surplus
 
 
 
Common stock - par value $1,250 per share, 3,000 shares authorized,
2,000 shares issued and outstanding
2,500,000

 
2,500,000

Aggregate write-ins for other than special surplus funds
252,083,454

 
315,634,232

Gross paid-in and contributed surplus
604,455,820

 
1,605,527,920

Unassigned surplus
1,766,242,402

 
1,485,234,878

Total capital and surplus
2,625,281,676

 
3,408,897,030

 
 
 
 
Total liabilities and capital and surplus
$
40,189,140,126

 
$
47,246,337,570











See notes to financial statements.

3

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY-BASIS)

 
For the years ended December 31,
 
2015
 
2014
 
2013
 
 
 
 
 
 
Revenues
 
 
 
 
 
Premiums and annuity considerations
$
313,111,457

 
$
41,392,753,512

 
$
(2,982,594,824
)
Net investment income
237,932,132

 
260,902,958

 
347,140,114

Commissions and expense allowances on reinsurance ceded
60,644,503

 
381,657,599

 
237,724,234

Reserve adjustments on reinsurance ceded
(228,846,619
)
 
(2,550,166,630
)
 
(11,525,149,849
)
Fee income
623,264,983

 
940,123,990

 
1,091,315,212

Other revenues
(4,452,004
)
 
6,229,503

 
(32,644,968
)
Total revenues
1,001,654,452

 
40,431,500,932

 
(12,864,210,081
)
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses
 
 
 
 
 
Death and annuity benefits
418,149,979

 
427,374,112

 
320,204,707

Disability and other benefits
3,042,392

 
3,889,681

 
3,947,333

Surrenders and other fund withdrawals
5,551,496,373

 
6,345,781,545

 
(155,831,892
)
Commissions and expense allowances
226,296,463

 
286,910,347

 
452,981,544

Increase in aggregate reserves for life and accident and health policies
(166,876,864
)
 
(16,460,886
)
 
(5,487,457,401
)
General insurance expenses
79,333,619

 
111,580,027

 
87,609,648

Net transfers from Separate Accounts
(5,209,213,386
)
 
(7,825,980,171
)
 
(9,917,191,960
)
Modified coinsurance adjustment on reinsurance assumed
(142,665,330
)
 
41,005,789,588

 
(242,324,170
)
IMR adjustment on reinsurance ceded
—

 
69,971,617

 
(515,239,930
)
Other expenses
(197,464,468
)
 
(152,993,874
)
 
286,342,487

Total benefits and expenses
562,098,778

 
40,255,861,986

 
(15,166,959,634
)
 
 
 
 
 
 
Net gain from operations before federal income tax expense (benefit)
439,555,674

 
175,638,946

 
2,302,749,553

Federal income tax expense (benefit)
26,748,125

 
(294,390,300
)
 
(220,692,418
)
Net gain from operations
412,807,549

 
470,029,246

 
2,523,441,971

 
 
 
 
 
 
Net realized capital losses, after tax
(331,893,122
)
 
(374,825,322
)
 
(1,801,673,490
)
Net income
$
80,914,427

 
$
95,203,924

 
$
721,768,481






















See notes to financial statements.

4

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY-BASIS)

 
For the years ended December 31,
 
2015
 
2014
 
2013
 
 
 
 
 
 
Common stock - Par value $1,250 per share, 3,000 shares authorized,
2,000 shares issued and outstanding
 
 
 
 
 
Balance, beginning and end of year
$
2,500,000

 
$
2,500,000

 
$
2,500,000

 
 
 
 
 
 
Gross paid-in and contributed surplus
 
 
 
 
 
Balance, beginning of year
1,605,527,920

 
1,724,153,661

 
2,771,903,231

Capital return
(1,001,072,100
)
 
(118,625,741
)
 
(1,047,749,570
)
Balance, end of year
604,455,820

 
1,605,527,920

 
1,724,153,661

 
 
 
 
 
 
Aggregate write-ins for other than special surplus funds
 
 
 
 
 
Balance, beginning of year
315,634,232

 
356,288,911

 
169,606,804

Amortization and decreases of gain on inforce reinsurance
(63,550,778
)
 
(40,654,679
)
 
(215,694,859
)
Additions to gain on inforce reinsurance
—

 
—

 
402,376,966

Balance, end of year
252,083,454

 
315,634,232

 
356,288,911

 
 
 
 
 
 
Unassigned funds
 
 
 
 
 
Balance, beginning of year
1,485,234,878

 
997,664,886

 
82,204,354

 
 
 
 
 
 
Net income
80,914,427

 
95,203,924

 
721,768,481

Change in net unrealized capital gains (losses) on investments, net of tax
102,292,375

 
183,246,494

 
(154,476,512
)
Change in net unrealized foreign exchange capital gains
1,376,191

 
72,274,886

 
363,986,509

Change in net deferred income tax
122,153,376

 
(120,170,337
)
 
(375,254,834
)
Change in asset valuation reserve
4,838,272

 
(19,169,603
)
 
119,349,251

Change in nonadmitted assets
(30,567,117
)
 
276,184,628

 
240,087,637

Balance, end of year
1,766,242,402

 
1,485,234,878

 
997,664,886

 
 
 
 
 
 
Capital and surplus
 
 
 
 
 
Balance, end of year
$
2,625,281,676

 
$
3,408,897,030

 
$
3,080,607,458























See notes to financial statements.

5

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY-BASIS)
 
For the years ended December 31,
 
2015
 
2014
 
2013
 
 
 
 
 
 
Operating activities
 
 
 
 
 
Premiums and annuity considerations
$
310,103,532

 
$
213,032,252

 
$
15,820,221

Net investment income
250,518,416

 
270,311,416

 
364,733,620

Reserve adjustments on reinsurance
(228,846,619
)
 
(2,550,166,630
)
 
(11,525,149,849
)
Miscellaneous income
714,984,650

 
1,325,441,429

 
1,635,924,081

Total income
1,046,759,979

 
(741,381,533
)
 
(9,508,671,927
)
 
 
 
 
 
 
Benefits paid
5,979,381,730

 
7,687,606,724

 
(377,328,461
)
Federal income tax payments (recoveries)
90,526,623

 
(3,253,985
)
 
47,256,686

Net transfers from Separate Accounts
(5,303,728,406
)
 
(7,994,301,390
)
 
(10,148,162,354
)
Other expenses
165,759,716

 
139,984,605

 
997,622,493

Total benefits and expenses
931,939,663

 
(169,964,046
)
 
(9,480,611,636
)
Net cash provided by (used for) operating activities
114,820,316

 
(571,417,487
)
 
(28,060,291
)
 
 
 
 
 
 
Investing activities
 
 
 
 
 
Proceeds from investments sold, matured or repaid
 
 
 
 
 
Bonds
2,365,347,618

 
3,310,320,779

 
6,037,482,299

Common and preferred stocks
488,448,905

 
27,047,595

 
342,055,826

Mortgage loans
82,802,818

 
128,821,117

 
5,855,121

Derivatives and other
22,098,147

 
260,070,712

 
158,163,292

Total investment proceeds
2,958,697,488

 
3,726,260,203

 
6,543,556,538

 
 
 
 
 
 
Cost of investments acquired
 
 
 
 
 
Bonds
2,038,688,138

 
2,325,739,261

 
3,576,442,582

Common and preferred stocks
451,838,635

 
328,136,634

 
55,567,364

Mortgage loans
1,829,406

 
7,465,000

 
27,000,000

Real estate
—

 
1,985,128

 
589,238

Derivatives and other
228,276,612

 
282,240,093

 
1,270,287,989

Total investments acquired
2,720,632,791

 
2,945,566,116

 
4,929,887,173

Net increase (decrease) in contract loans
2,502,310

 
(2,313,898
)
 
(7,915,459
)
Net cash provided by investing activities
235,562,387

 
783,007,985

 
1,621,584,824

 
 
 
 
 
 
Financing and miscellaneous activities
 
 
 
 
 
(Return of) Paid-in of surplus
(1,000,000,000
)
 
262,417,164

 
(1,049,578,625
)
Funds held under reinsurance treaties with unauthorized reinsurers
—

 
—

 
(2,725,663,492
)
Collateral (paid) received on investment repurchase program
—

 
—

 
(1,614,859,275
)
Other cash provided (used)
50,633,260

 
(381,312,055
)
 
2,856,983,877

Net cash used for financing and miscellaneous activities
(949,366,740
)
 
(118,894,891
)
 
(2,533,117,515
)
 
 
 
 
 
 
Net (decrease) increase in cash and short-term investments
(598,984,037
)
 
92,695,607

 
(939,592,982
)
Cash and short-term investments, beginning of year
1,165,885,527

 
1,073,189,920

 
2,012,782,902

Cash and short-term investments, end of year
$
566,901,490

 
$
1,165,885,527

 
$
1,073,189,920

 
 
 
 
 
 
Note: Supplemental disclosures of cash flow information for non-cash transactions:
 
 
 
 
 
Non-cash proceeds from invested asset exchanges - bonds, common stock and other invested assets
(83,294,060
)
 
—

 
—

Non-cash acquisitions from invested asset exchanges - bonds, common stock and other invested assets
(83,294,060
)
 
—

 
—

IMR adjustment on reinsurance ceded
—

 
(69,971,619
)
 
515,239,930

Capital contribution from parent to settle intercompany balances related to stock compensation
1,072,101

 
(2,115,721
)
 
1,924,751

Capital contribution to subsidiary to settle intercompany balances related to stock compensation
—

 
—

 
177,694

Non-cash premiums for reinsurance recaptured or issued
—

 
(41,179,608,719
)
 
2,983,414,000

Non-cash modco adjustment for reinsurance recaptured
—

 
41,179,608,719

 
—

Non-cash return of capital to parent paid-in surplus
—

 
383,158,626

 
—

Non-cash return of capital to parent bond proceeds
—

 
(383,158,626
)
 
—

Non-cash transfer of bonds for the reinsurance transaction
—

 
—

 
(5,305,075,000
)
Non-cash transfer of contract loans for the reinsurance transaction
—

 
—

 
253,685,000

Non-cash transfer of mortgage loans for the reinsurance transaction
—

 
—

 
(184,962,000
)
Non-cash transfer of investment income for the reinsurance transaction
—

 
—

 
(63,149,000
)
Non-cash transfer of deposit liabilities for the reinsurance transaction
—

 
—

 
24,594,000

Non-cash transfer of funds withheld for the reinsurance transaction
—

 
—

 
2,768,953,000

Non-cash transfer other for the reinsurance transaction
—

 
—

 
29,910,000

See notes to financial statements.

6
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013


1. Organization and Description of Business

Hartford Life and Annuity Insurance Company (“HLAI” or the “Company”) is a wholly-owned subsidiary of Hartford Life Insurance Company (“HLIC”), which is a direct subsidiary of Hartford Life, Inc. (“HLI”). HLI is indirectly owned by The Hartford Financial Services Group, Inc. (“The Hartford”).

On March 21, 2012, the Company's ultimate parent, The Hartford, announced that it had decided to focus on its property and casualty, group benefits and mutual funds businesses. As a result, The Hartford sold its individual life and retirement plans businesses in January 2013. See Notes 6 and 12.

The Company maintains a complete line of fixed and variable annuities, universal and traditional individual life insurance and benefit products such as disability insurance.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying statutory-basis financial statements of HLAI have been prepared in conformity with statutory accounting practices prescribed or permitted by the State of Connecticut Department of Insurance (“the Department”). The Department recognizes only statutory accounting practices prescribed or permitted by the State of Connecticut for determining and reporting the financial condition and results of operations of an insurance company and for determining solvency under the State of Connecticut Insurance Law. The National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed practices by the State of Connecticut.

A difference prescribed by Connecticut state law allows the Company to receive a reinsurance reserve credit for a reinsurance treaty that provides for a limited right of unilateral cancellation by the reinsurer. Even if the Company did not obtain reinsurance reserve credit for this reinsurance treaty, the Company's risk-based capital would not have triggered a regulatory event.

A reconciliation of the Company’s net income and capital and surplus between NAIC SAP and practices prescribed by the Department is shown below for the years ended December 31:
 
State of Domicile
2015
2014
2013
Net income
 
 
 
 
1. HLAI state basis
CT
$
80,914,427

$
95,203,924

$
721,768,481

2. State prescribed practices that change NAIC SAP:
 
 
 
 
       Less: Reinsurance reserve credit (as described above)
 
(8,788,709
)
17,206,071

(180,280,857
)
 
 
(8,788,709
)
17,206,071

(180,280,857
)
3. State permitted practices that change NAIC SAP
 
—

—

—

4. Net SAP (1-2-3=4)
 
$
89,703,136

$
77,997,853

$
902,049,338

Surplus
 
 
 
 
5. HLAI state basis
CT
$
2,625,281,676

$
3,408,897,030

$
3,080,607,458

6. State prescribed practices that change NAIC SAP:
 
 
 
 
       Less: Reinsurance reserve credit (as described above)
 
135,911,291

144,700,000

127,493,929

 
 
135,911,291

144,700,000

127,493,929

7. State permitted practices that change NAIC SAP
 
—

—

—

8. NAIC SAP (5-6-7=8)
 
$
2,489,370,385

$
3,264,197,030

$
2,953,113,529

    

The Company does not follow any other prescribed or permitted statutory accounting practices that have a material effect on statutory surplus, statutory net income or risk-based capital.


7
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The preparation of financial statements in conformity with NAIC SAP 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 reported periods. Actual results could differ from those estimates. The most significant estimates include those used in determining the liability for aggregate reserves for life, accident and health, and fixed and variable annuity policies; evaluation of other-than-temporary impairments ("OTTI"); valuation of derivatives; and contingencies relating to corporate litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the statutory-basis financial statements. Although some variability is inherent in these estimates, management believes the amounts recorded are adequate.

Certain reclassifications have been made to prior year financial information to conform to the current year presentation. 

Accounting practices and procedures as prescribed or permitted by the Department are different in certain material respects from accounting principles generally accepted in the United States of America (“GAAP”). The more significant differences are:

1.
for statutory purposes, policy acquisition costs (commissions, underwriting and selling expenses, etc.) and sales inducements are charged to expense when incurred rather than capitalized and amortized for GAAP purposes;

2.
recognition of premium revenues, which for statutory purposes are generally recorded as collected or when due during the premium paying period of the contract and which for GAAP purposes, for universal life policies and investment products, generally only consist of charges assessed to policy account balances for cost of insurance, policy administration and surrenders. For GAAP, when policy charges received relate to coverage or services to be provided in the future, the charges are recognized as revenue on a pro-rata basis over the expected life and gross profit stream of the policy. Also, for GAAP purposes, premiums for traditional life insurance policies are recognized as revenues when they are due from policyholders;

3.
development of liabilities for future benefits, which for statutory purposes predominantly use interest rate and mortality assumptions prescribed by the National Association of Insurance Commissioners (“NAIC”), which may vary considerably from interest and mortality assumptions used under GAAP. Additionally for GAAP, reserves for guaranteed minimum death benefits (“GMDB”) 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, and, reserves for guaranteed withdrawal benefits are considered embedded derivatives and reported at fair value;

4.
exclusion of certain assets designated as nonadmitted assets from the Statements of Admitted Assets, Liabilities and Capital and Surplus for statutory purposes by directly charging surplus;

5.
establishment of a formula reserve for realized and unrealized losses due to default and equity risk associated with certain invested assets (Asset Valuation Reserve (“AVR”)) for statutory purposes; as well as the deferral and amortization of realized gains and losses, caused by changes in interest rates during the period the asset is held, into income over the original life to maturity of the asset sold (Interest Maintenance Reserve (“IMR”)) for statutory purposes; whereas on a GAAP basis, no such formula reserve is required and realized gains and losses are recognized in the period the asset is sold;

6.
the reporting of reserves and benefits, net of reinsurance ceded for statutory purposes; whereas on a GAAP basis, reserves are reported gross of reinsurance with reserve credits presented as recoverable assets;

7.
for statutory purposes, investments in unaffiliated bonds, other than loan-backed and structured securities, rated in NAIC classes 1 through 5 are carried at amortized cost, and unaffiliated bonds, other than loan-backed and structured securities, rated in NAIC class 6 are carried at the lower of amortized cost or fair value. Loan-backed bonds and structured securities are carried at either amortized cost or the lower of amortized cost or fair value in accordance with the provisions of Statement of Statutory Accounting Principles (“SSAP”) No. 43 - Revised ("43R") (Loan-backed and Structured Securities). GAAP requires that fixed maturities and loan-backed and structured securities be classified as "held-to-maturity,” "available-for-sale" or "trading,” based on the Company's intentions with respect to the ultimate disposition of the security and its ability to affect those intentions. The Company's bonds and loan-backed securities were classified on a GAAP basis as "available-for-sale" and accordingly, these investments and common stocks were reflected at fair value with the corresponding impact included as a separate component of Stockholder’s Equity;

8.
for statutory purposes, Separate Account liabilities are calculated using prescribed actuarial methodologies, which approximate the market value of Separate Account assets, less applicable surrender charges. The Separate Account surplus

8
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

generated by these reserving methods is recorded as an amount due to or from Separate Accounts on the Statements of Admitted Assets, Liabilities and Capital and Surplus, with changes reflected in the Statements of Operations. On a GAAP basis, Separate Account assets and liabilities must meet specific conditions to qualify as a Separate Account asset or liability. Amounts reported for Separate Account assets and liabilities are based upon the fair value of the underlying assets;

9.
the consolidation of financial statements for GAAP reporting, whereas statutory accounting requires standalone financial statements with earnings of subsidiaries reflected as changes in unrealized gains or losses in surplus;

10.
deferred income taxes, which provide for statutory/tax temporary differences, are subject to limitation and are charged directly to surplus, whereas, GAAP would include GAAP/tax temporary differences recognized as a component of net income;

11.
comprehensive income and its components are not presented in the statutory-basis financial statements;

12.
for statutory purposes derivative instruments that qualify for hedging, replication, or income generation are accounted for in a manner consistent with the hedged item, cash instrument and covered asset, respectively, which is typically amortized cost. Derivative instruments held for other investment and risk management activities, which do not receive hedge accounting treatment, receive fair value accounting for statutory purposes and are recorded at fair value with corresponding changes in value reported in unrealized gains and losses within surplus. For GAAP, derivative instruments are recorded at fair value with changes in value reported in earnings, with the exception of cash flow hedges and net investment hedges of a foreign operation, which are carried at fair value with changes in value reported as a separate component of Stockholder’s Equity. In addition, statutory accounting does not record the hedge ineffectiveness on qualified hedge positions, whereas, GAAP records the hedge ineffectiveness in earnings; and

13.
embedded derivatives for statutory accounting are not bifurcated from the host contract, whereas, GAAP accounting requires the embedded derivative to be bifurcated from the host instrument, accounted for and reported separately.

Aggregate Reserves for Life and Accident and Health Policies and Contracts and Liability for Deposit-Type Contracts

Aggregate reserves for payment of future life, health and annuity benefits are computed in accordance with applicable actuarial standards. Reserves for life insurance policies are generally based on the 1941, 1958, 1960, 1980 and 2001 Commissioner's Standard Ordinary Mortality Tables and various valuation rates ranging from 2.00% to 6.00%. Accumulation and on-benefit annuity reserves are based principally on individual and group annuity tables at various rates ranging from 3.50% to 9.50% and using the Commissioner’s Annuity Reserve Valuation Method (“CARVM”). Accident and health reserves are established using a two year preliminary term method and morbidity tables based primarily on Company experience.

For non-interest sensitive ordinary life plans, the Company waives deduction of deferred fractional premiums upon death of insured. Return of the unearned portion of the final premium is governed by the terms of the contract. The Company does not have any forms for which the cash values are in excess of the legally computed reserve.

Extra premiums are charged for substandard lives, in addition to the regular gross premiums for the true age. Mean reserves for traditional insurance products are determined by computing the regular mean reserve for the plan at the true age, and adding one-half (1/2) of the extra premium charge for the year. For plans with explicit mortality charges, mean reserves are based on appropriate multiples of standard rates of mortality.

As of December 31, 2015 and 2014, the Company had $6,043,071,722 and $9,093,545,433, respectively, of insurance in force, subject to 100% reinsurance to The Prudential Insurance Company of America (“Prudential”) effective January 1, 2013, for which the gross premiums are less than the net premiums according to the standard valuation set by the State of Connecticut. Reserves to cover the above insurance at December 31, 2015 and 2014 totaled $22,105,156 and $35,932,171, respectively, also subject to 100% reinsurance to Prudential.

The Company has established Separate Accounts to segregate the assets and liabilities of certain life insurance, pension and annuity contracts that must be segregated from the Company's General Account assets under the terms of its contracts. The assets consist primarily of marketable securities and are reported at fair value. Premiums, benefits and expenses relating to these contracts are reported in the Statements of Operations.

9
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013


An analysis of annuity actuarial reserves and deposit fund liabilities by withdrawal characteristics for General and Separate Account liabilities as of December 31, 2015 is presented below:
 
 
Separate
Separate
 
 
 
General
Accounts with
Accounts
 
% of
 
Account
Guarantees
Nonguaranteed
Total
Total
A. Subject to discretionary withdrawal
 
 
 
 
 
  1. With market value adjustment
$
26,052,459

$
—

$
—

$
26,052,459

0.08
%
  2. At book value less current surrender charge of 5% or more
25,277,496

—

—

25,277,496

0.08
%
  3. At fair value
—

—

27,421,407,463

27,421,407,463

87.02
%
  4. Total with market value adjustment or at fair value
51,329,955

—

27,421,407,463

27,472,737,418

87.18
%
  5. At book value without adjustment (minimal or no charge or adjustment)
2,170,578,550

—

—

2,170,578,550

6.89
%
B. Not subject to discretionary withdrawal
1,517,477,636

—

351,236,529

1,868,714,165

5.93
%
C. Total (gross)
3,739,386,141

—

27,772,643,992

31,512,030,133

100.00
%
D. Reinsurance ceded
160,496

—

—

160,496

 
E. Total (net)
$
3,739,225,645

$
—

$
27,772,643,992

$
31,511,869,637

 
 
 
 
 
 
 
Reconciliation of total annuity actuarial reserves and deposit fund liabilities:
 
 
 
 
 
F. Life and Accident & Health Annual Statement:
 
 
 
 
 
 1. Exhibit 5, Annuities Section, Total (net)
$
2,758,689,425

 
 
 
 
 2. Exhibit 5, Supplementary Contract Section, Total (net)
8,326,743

 
 
 
 
 3. Exhibit 7, Deposit-Type Contracts Section, Total (net)
972,209,477

 
 
 
 
 4. Subtotal
3,739,225,645

 
 
 
 
Separate Account Annual Statement:
 
 
 
 
 
 5. Exhibit 3, Annuities Section, Total (net)
27,772,643,992

 
 
 
 
 6. Exhibit 3, Supplemental Contract Section, Total (net)
—

 
 
 
 
 7. Policyholder dividend and coupon accumulations
—

 
 
 
 
 8. Policyholder premiums
—

 
 
 
 
 9. Guaranteed interest contracts
—

 
 
 
 
10. Exhibit 4, Deposit-Type Contracts Section, Total (net)
—

 
 
 
 
11. Subtotal
27,772,643,992

 
 
 
 
12. Combined total
$
31,511,869,637

 
 
 
 

Investments

Investments in unaffiliated bonds, other than loan-backed and structured securities, rated in NAIC classes 1-5 are carried at amortized cost and unaffiliated bonds rated in NAIC class 6 are carried at the lower of amortized cost or fair value. Short-term investments include all investments whose maturities, at the time of acquisition, are one year or less and are stated at amortized cost. Unaffiliated common stocks are carried at fair value. Investments in stocks of subsidiaries, controlled and affiliated (“SCA”) companies are based on the net worth of the subsidiary in accordance with SSAP No. 97 (Investment in Subsidiary, Controlled, and Affiliated Entities, a replacement of SSAP No. 88). The change in the carrying value is recorded as a change in net unrealized capital gains (losses), a component of unassigned surplus. Unaffiliated preferred stocks are carried at cost, lower of cost or amortized cost, or fair value depending on the assigned credit rating and whether the preferred stock is redeemable or non-redeemable. Mortgage loans on real estate are stated at the outstanding principal balance, less any allowances for credit losses. Loan-backed bonds and structured securities are carried at either amortized cost or the lower of amortized cost or fair value in accordance with the provisions of SSAP No. 43R. Significant changes in estimated cash flows from the original purchase assumptions are accounted for using the prospective method, except for highly rated fixed rate securities, which use the retrospective method. The Company has ownership interests in joint ventures, investment partnerships and limited liability companies. The Company carries these interests based upon audited financial statements in accordance with SSAP No. 48 (Joint Ventures, Partnerships and Limited Liability Companies). Contract loans are carried at outstanding balances, which approximates fair value.

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 fixed rate securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future repayments using

10
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

the retrospective method; however, if these investments are impaired, any yield adjustments are made using the prospective method. The Company has not elected under SSAP No. 43R to use the book value as of January 1, 1994 as the cost for applying the retrospective adjustment method to securities purchased prior to that date. Investment income on variable rate and interest only securities is determined using the prospective method. Prepayment fees on bonds and mortgage loans on real estate are recorded in net investment income when earned. Dividends are recorded as earned on the ex-dividend date. For partnership investments, income is earned when cash distributions of income are received. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield.

Due and accrued investment income amounts over 90 days past due are nonadmitted. There was no investment income due and accrued excluded from surplus at December 31, 2015 and 2014.

Net realized gains and losses from investment sales represent the difference between the sales proceeds and the cost or amortized cost of the investment sold, determined on a specific identification basis. Net realized capital gains and losses also result from termination or settlement of derivative contracts that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments are recognized within net realized capital losses when investment declines in value are deemed other-than-temporary. Foreign currency transaction gains and losses are also recognized within net realized capital gains and losses.

The AVR is designed to provide a standardized reserving process for realized and unrealized losses due to default and equity risks associated with invested assets. The AVR balances were $57,553,274 and $62,391,546 as of December 31, 2015 and 2014, respectively. Additionally, the IMR captures net realized capital gains and losses, net of applicable income taxes, resulting from changes in interest rates and amortizes these gains or losses into income over the life of the bond, preferred stock or mortgage loan sold or adjusts the IMR when an insurer reinsures a block of its in-force liabilities. The IMR balances as of December 31, 2015 and 2014 were $10,254,682, and $24,706,940, respectively. The net capital (losses) gains captured in the IMR, net of taxes, in 2015, 2014, and 2013 were $(63,512,225), $(93,764,541) and $430,558,728, respectively. In addition, an IMR adjustment of $(69,971,617) was included in the Company's Statement of Operations in 2014 as a result of the sale of the Japan variable and fixed annuity business and an IMR adjustment of $515,239,930 was included in the Company’s Statements of Operations in 2013 as a result of the Prudential reinsurance agreement (see Note 6). The amount of (expense) income amortized from the IMR net of taxes in 2015, 2014, and 2013 included in the Company’s Statements of Operations, was $(49,059,968), $(37,668,033) and $(7,459,495), respectively. Realized capital gains and losses, net of taxes, not included in the IMR are reported in the Statements of Operations.

The Company’s accounting policy requires that a decline in the value of a bond or equity security below its cost or amortized cost basis be assessed to determine if the decline is other-than-temporary. In addition, for securities expected to be sold, an OTTI charge is recognized if the Company does not expect the fair value of a security to recover to its cost or amortized cost basis prior to the expected date of sale. The previous cost basis less the impairment becomes the new cost basis. The Company has a security monitoring process overseen by a committee of investment and accounting professionals that identifies securities that, due to certain characteristics, as described below, are subjected to an enhanced analysis on a quarterly basis.

Securities that are in an unrealized loss position are reviewed at least quarterly to determine if an OTTI is present based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether a decline in value for securities not subject to SSAP No. 43R is other-than-temporary include: (a) the length of time and the extent to which the fair value has been less than cost or amortized cost, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, and (c) whether the debtor is current on contractually obligated payments. Once an impairment charge has been recorded, the Company continues to review the impaired securities for further OTTIs on an ongoing basis.

For securities that are not subject to SSAP No. 43R, if the decline in value of a bond or equity security is other-than-temporary, 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.

For certain securitized financial assets with contractual cash flows (including asset-backed securities), SSAP No. 43R requires the Company to periodically update its best estimate of cash flows over the life of the security. If management determines that its best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment are less than its amortized cost, then an OTTI charge is recognized equal to the difference between the amortized cost and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment. The Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment becomes its new cost basis. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third-

11
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. As a result, actual results may differ from estimates. Projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. In addition, if the Company does not have the intent and ability to hold a security subject to the provisions of SSAP No. 43R until the recovery of value, the security is written down to fair value.

Net realized capital losses resulting from write-downs for OTTIs on corporate and asset-backed bonds were $7,826,222, $3,447,482, and $6,200,993 for the years ended December 31, 2015, 2014 and 2013, respectively. Net realized capital losses resulting from write-downs for OTTIs on equities were $5,990,918 for the year ended December 31, 2015 and were immaterial for the years ended December 31, 2014 and 2013.

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 all amounts due according to the contractual terms of the loan agreement. For mortgage loans on real estate that are determined to be impaired, a valuation allowance is established for the difference between the carrying amount and the Company’s share of the fair value of the collateral. Additionally, a loss contingency valuation allowance is established for estimated probable credit losses on certain homogenous groups of loans. Changes in valuation allowances are recorded in net unrealized capital gains and losses. Interest income on an impaired loan is accrued to the extent it is deemed collectable and the loan continues to perform under its original or restructured terms. Interest income on defaulted loans is recognized when received. As of December 31, 2015, 2014 and 2013, the Company had immaterial impaired mortgage loans on real estate with related allowances for credit losses.

The Company utilizes a variety of over-the-counter ("OTC"), transactions cleared through a central clearing house ("OTC-cleared"), and exchange-traded derivative instruments as part of its overall risk management strategy. The types of instruments may include 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 defaults, price or foreign currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. On the date the derivative contract is entered into, the Company designates the derivative as hedging (fair value, cash flow, or net investment in a foreign operation), replication, or held for other investment and/or risk management activities, which primarily involves managing asset or liability related risks which do not qualify for hedge accounting under SSAP No. 86 (Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions). The Company’s derivative transactions are permitted uses of derivatives under the derivative use plans required by the Department.

Derivatives used in hedging relationships are accounted for in a manner consistent with the hedged item. Typically, cost paid or consideration received at inception of a contract is reported on the balance sheet as a derivative asset or liability, respectively. Periodic cash flows and accruals are recorded in a manner consistent with the hedged item.

Derivatives used in replication relationships are accounted for in a manner consistent with the cash instrument and the replicated asset. Typically, cost paid or consideration received at inception of the contract is recorded on the balance sheet as a derivative asset or liability, respectively. Periodic cash flows and accruals of income/expense are recorded as a component of derivative net investment income. Upon termination of the derivative, any gain or loss is recognized as a derivative capital gain or loss.

Derivatives used in income generation relationships are accounted for in a manner consistent with the associated covered asset. Typically, consideration received at inception of the contract is recorded on the balance sheet as a derivative liability. Upon termination, any remaining derivative liability, along with any disposition payments are recorded as a derivative capital gain or loss.

Derivatives held for other investment and/or risk management activities receive fair value accounting. The derivatives are carried on the balance sheet at fair value and the changes in fair value are recorded in derivative unrealized gains and losses. Periodic cash flows and accruals of income/expense are recorded as components of derivative net investment income.

Adoption of Accounting Standards

In 2013, the Company adopted revisions to SSAP No. 64 (Offsetting and Netting of Assets and Liabilities), SSAP No. 86 and SSAP No. 103 (Transfers and Servicing of Financial Assets and Extinguishment of Liabilities). The effects of these revisions allow offsetting of financial assets and liabilities only in certain limited circumstances and will therefore disallow netting of derivatives under master netting agreements and similar arrangements under repurchase and reverse repurchase agreements. The

12
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Company adopted these changes on January 1, 2013, and as a result both Derivative assets and Derivative liabilities increased as of January 1, 2013 by $793 million, from balances as of December 31, 2012.

3. Investments

a. Components of Net Investment Income
 
For the years ended December 31,
 
2015
2014
2013
Interest income from bonds and short-term investments
$
212,173,262

$
242,958,358

$
305,078,924

Interest income from contract loans
(860,400
)
(969,963
)
2,579,385

Interest income from mortgage loans on real estate
27,636,257

28,512,983

32,925,013

Interest and dividends from other investments
9,425,680

2,421,947

20,673,754

Gross investment income
248,374,799

272,923,325

361,257,076

Less: investment expenses
10,442,667

12,020,367

14,116,962

Net investment income
$
237,932,132

$
260,902,958

$
347,140,114


b. Components of Net Unrealized Capital Gains on Bonds and Short-Term Investments
 
As of December 31,
 
2015
2014
2013
Gross unrealized capital gains
$
189,327,113

$
341,537,427

$
276,044,680

Gross unrealized capital losses
(61,909,343
)
(21,593,952
)
(81,199,685
)
Net unrealized capital gains
127,417,770

319,943,475

194,844,995

Balance, beginning of year
319,943,475

194,844,995

1,295,566,736

Change in net unrealized capital gains on bonds and
 
 
 
   and short-term investments
$
(192,525,705
)
$
125,098,480

$
(1,100,721,741
)

c. Components of Net Unrealized Capital Losses on Common and Preferred Stocks
 
As of December 31,
 
2015
2014
2013
Gross unrealized capital gains
$
3,883,408

$
1,924,142

$
1,716,459

Gross unrealized capital losses
(23,475,228
)
(16,939,864
)
(13,368,710
)
Net unrealized capital losses
(19,591,820
)
(15,015,722
)
(11,652,251
)
Balance, beginning of year
(15,015,722
)
(11,652,251
)
(208,897,734
)
Change in net unrealized capital losses on
 
 
 
   common and preferred stocks
$
(4,576,098
)
$
(3,363,471
)
$
197,245,483



13
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

d. Components of Net Realized Capital Losses
 
For the years ended December 31,
 
2015
2014
2013
Bonds and short-term investments
$
(5,975,818
)
$
(56,301,415
)
$
659,992,430

Common stocks - unaffiliated
(13,150,711
)
(3,484,566
)
(582,355
)
Common stocks - affiliated
—

—

(615,935,478
)
Preferred stocks - unaffiliated
—

—

(227,302
)
Mortgage loans on real estate
(16,111
)
3,274,093

4,909,922

Derivatives
(384,873,378
)
(425,884,685
)
(1,515,076,501
)
Other invested assets
2,791,047

(4,996,940
)
(212,614
)
Net realized capital losses
(401,224,971
)
(487,393,513
)
(1,467,131,898
)
Capital loss tax benefit
(5,819,624
)
(18,803,650
)
(96,017,136
)
Net realized capital losses, after tax
(395,405,347
)
(468,589,863
)
(1,371,114,762
)
   Less: amounts transferred to IMR
(63,512,225
)
(93,764,541
)
430,558,728

Net realized capital losses, after tax
$
(331,893,122
)
$
(374,825,322
)
$
(1,801,673,490
)

The following table summarizes sales activity of unaffiliated bond, short-term investments and equity securities before tax and transfers to the IMR (without maturities, calls and impairments):
 
For the years ended December 31,
 
2015
2014
2013
Bonds and short-term investments
 
 
 
   Sale proceeds
$
2,154,309,992

$
2,594,305,896

$
11,338,855,187

   Gross realized capital gains on sales
24,373,425

29,569,338

812,904,415

   Gross realized capital losses on sales
(19,104,209
)
(84,893,069
)
(113,239,883
)
Unaffiliated common and preferred stock
 
 
 
   Sale proceeds
436,339,817

26,813,405

26,639,552

   Gross realized capital gains on sales
12,848,976

828,056

434,253

   Gross realized capital losses on sales
(20,611,631
)
(4,165,576
)
(671,111
)

e. Investments - Derivative Instruments

Overview

The Company utilizes a variety of OTC derivatives, including OTC-cleared transactions, and exchange-traded derivative instruments as part of its overall risk management strategy. The types of instruments may include 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 and issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. On the date the derivative contract is entered into, the Company designates the derivative as hedging (fair value, cash flow, or net investment in a foreign operation), replication, or held for other investment and/or risk management activities, which primarily involves managing asset or liability related risks which do not qualify for hedge accounting under SSAP No. 86. The Company’s derivative transactions are used in strategies permitted under the derivative use plans required by the Department.

Interest rate swaps, equity, and index swaps involve the periodic exchange of payments with other parties, at specified intervals, calculated using agreed upon rates or indices and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value.


14
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Credit default swaps entitle one party to receive a periodic fee in exchange for an obligation to compensate the other party should a credit event occur on the part of the referenced issuer.

Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash.

Financial futures are standardized commitments to either purchase or sell designated financial instruments at a future date for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash.

Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date.

Swaption contracts grant the purchaser, for a premium payment, the right to enter into an interest rate swap with the issuer on a specified future date.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using agreed upon rates and exchanged principal amounts.

The Company clears interest rate swap and certain credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid collateral, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash collateral as variation margin based on daily market value movements. In addition, OTC-cleared transactions include price alignment interest either received or paid on the variation margin, which is reflected in net investment income.


15
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Strategies

The notional value, fair value, and carrying value of derivative instruments used during the years 2015 and 2014 are disclosed in the table presented below. During the years 2015 and 2014, the Company did not transact in or hold any positions related to net investment hedges in a foreign operation or income generation transactions. The notional amounts of derivative contracts represent the basis upon which pay or receive amounts are calculated and are not reflective of credit risk. The fair value of derivative instruments are based upon widely accepted pricing valuation models which utilize independent third-party data as inputs or independent broker quotations. For the year ended December 31, 2015 and 2014, the average fair value for derivatives held for other investment and/or risk management activities were $(124,850,450) and $(55,486,958), respectively. The Company did not have any unrealized gains or losses during 2015 and 2014 representing the component of the derivative instruments gain or loss from derivatives that no longer qualify for hedge accounting.
(Amounts in thousands)
As of December 31, 2015
As of December 31, 2014
Derivative type by strategy
Notional Value
Fair Value
Carrying Value
Notional Value
Fair Value
Carrying Value
Cash flow hedges
 
 
 
 
 
 
 
Interest rate swaps
$
95,000

$
150

$
—

$
115,000

$
(84
)
$
—

 
Fixed payout annuity hedge
887,558

(356,513
)
—

1,109,580

(426,671
)
—

Fair value hedges
 
 
 
 
 
 
 
Interest rate swaps
22,870

96

—

25,300

(1
)
—

Replication transactions
 
 
 
 
 
 
 
Credit default swaps
327,000

(5,771
)
(3,931
)
54,900

(1,480
)
(1,179
)
Other investment and/or Risk Management activities
 
 
 
 
 
 
 
Credit default swaps
11,240

1,916

1,916

109,900

(575
)
(575
)
 
Credit default swaps - offsetting
207,994

(27
)
(27
)
307,419

—

—

 
Foreign currency swaps and forwards
355,290

4,255

4,255

30,000

39

39

 
GMWB hedging derivatives
7,413,043

142,031

142,031

10,157,804

170,287

170,287

 
Equity index swaps and options
290,034

15,969

15,969

300,449

2,698

2,697

 
Interest rate swaps and swaptions
—

—

—

47,000

686

686

 
Interest rate swaps - offsetting
392,010

(11,067
)
(11,067
)
392,010

(12,939
)
(12,939
)
 
Macro hedge program
4,190,401

136,597

136,597

6,383,457

140,574

140,574

Total
 
$
14,192,440

$
(72,364
)
$
285,743

$
19,032,819

$
(127,466
)
$
299,590





Cash Flow Hedges

Interest rate swaps: Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed maturity investments to fixed rates. There were no gains and (losses) in unrealized gains and losses related to cash flow hedges for the years ended December 31, 2015 and 2014 that have been discontinued because it was no longer probable that the original forecasted transactions would occur by the end of the originally specified time period.

Fixed payout annuity hedge: The Company formerly assumed certain variable annuity products with a guaranteed minimum income benefit ("GMIB") and continues to reinsure certain yen denominated fixed payout annuities. The Company invests in U.S. dollar denominated assets to support the reinsurance liability. The Company entered into pay U.S. dollar, receive yen swap contracts to hedge the currency and yen interest rate exposure between the U.S dollar denominated assets and the yen denominated fixed liability reinsurance payments.

Fair Value Hedges

Interest rate swaps: Interest rate swaps are used to hedge the changes in fair value of fixed rate maturity investments due to fluctuations in interest rates.


16
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Replication Transactions

Credit default swaps: The Company periodically enters into credit default swaps as part of replication transactions. Credit risk is hedged by buying protection on a specific entity by pairing with highly rated fixed-income securities in order to reproduce the investment characteristics of otherwise permissible investments.
 
Other Investment and/or Risk Management Activities

The table below presents realized capital gains and (losses) on derivative instruments used for other investment and/or risk management activities.
(Amounts in thousands)
Realized Gains / (Losses)
By strategy
For the year ended December 31, 2015
For the year ended December 31, 2014
For the year ended December 31, 2013
Credit default swaps
$
867

$
(178
)
$
(911
)
Credit default swaps - offsetting
(564
)
(847
)
676

Foreign currency swaps and forwards
—

(1,332
)
72

GMWB hedging derivatives
(277,539
)
(121,874
)
(321,745
)
Equity index swaps, options, and futures
3,006

—

772

Commodity options
(1,020
)
—

—

Interest rate swaps and swaptions
(836
)
(1
)
(4,649
)
Interest rate swaps - offsetting
—

(1
)
—

Macro hedge program
(13,786
)
(185,599
)
(244,645
)
International program hedging instruments
—

(65,998
)
(875,484
)
Total
$
(289,872
)
$
(375,830
)
$
(1,445,914
)

Credit default swaps: The Company enters into swap agreements in which the Company reduces or assumes credit exposure from an individual entity, referenced index or asset pool. In addition, the Company may enter into credit default swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value of the original swap.

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.

Guaranteed Minimum Withdrawal Benefits (“GMWB”) hedging derivatives: The Company utilizes GMWB hedging derivatives as part of an actively managed program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders due to changes in interest rates, equity market levels, and equity volatility. These derivatives include customized swaps, interest rates swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index.

Equity index swaps, options, and futures: The Company enters into equity index swaps and futures to hedge equity risk of equity common stock investments. The Company also enters into equity index options to economically hedge the equity risk associated with various equity indexed products.

Commodity options: During 2015, the Company purchased put option contracts on West Texas Intermediate oil futures in order to partially offset potential losses related to certain fixed maturity securities that could arise if oil prices decline substantially. The Company has since reduced its exposure to the targeted fixed maturity securities, and therefore, these options were terminated at the end of 2015.

Interest rate swaps and swaptions: The Company enters into interest rate swaps and swaptions to manage duration between assets and liabilities. In addition, the Company may enter into interest rate swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value in the original swap.

Macro hedge program: The Company utilizes equity options, swaps, futures, and foreign currency options to hedge against a decline in the equity markets and the resulting statutory surplus and capital impact primarily arising from Guaranteed Minimum Death Benefit ("GMDB") and GMWB obligations.


17
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

International program hedging instruments: The Company's international variable annuity hedge program hedged variable annuities that were offered in Japan and were reinsured from HLIKK. During 2014 this hedge program was terminated due to the sale of HLIKK. For further discussion on the sale, see Note 6 - Reinsurance.

For the years ended December 31, 2015, and 2014, the Company recognized gains of $396,380 and $8,292,209, respectively, due to cash recovered on derivative receivables that were previously written-off related to the bankruptcy of Lehman Brothers Inc. The derivative receivables were the result of the contractual collateral threshold amounts and open collateral calls prior to the bankruptcy filing as well as interest rate and credit spread movements from the date of the last collateral call to the date of the bankruptcy filing. For the year ended December 31, 2013, there were no recognized gains due to derivative receivables that were previously written-off related to the bankruptcy of Lehman Brothers Inc.

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that would be permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and commercial mortgage-backed securities ("CMBS") issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.

The following tables present the notional amount, fair value, carrying value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amount, fair value, and carrying value for credit derivatives in which the Company is assuming credit risk as of December 31:
As of December 31, 2015
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
Underlying Referenced Credit Obligation(s)
 
 
 
Credit Derivative type by derivative risk exposure
Notional Amount [2]
Fair Value
Carrying Value
Weighted Average Years to Maturity
Type
Average Credit Rating [1]
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Offsetting Carrying Value [3]
 
 
 
 
 
 
 
 
 
 
Single name credit default swaps
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
$
41,800

$
440

$
435

2 years
Corporate Credit/ Foreign Gov.
A+
$
40,800

$
(506
)
$
(506
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
160,000

869

1,380

5 years
Corporate Credit
BBB+
—

—

—

Investment grade risk exposure
229,197

(6,838
)
(5,503
)
6 years
CMBS Credit
AAA-
63,197

236

236

Credit linked notes
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
50,000

49,065

49,980

1 year
Corporate Credit
A+
—

—

—

Total
$
480,997

$
43,536

$
46,292

 
 
 
$
103,997

$
(270
)
$
(270
)

18
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

As of December 31, 2014
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
Underlying Referenced Credit Obligation(s)
 
 
 
Credit Derivative type by derivative risk exposure
Notional Amount [2]
Fair Value
Carrying Value
Weighted Average Years to Maturity
Type
Average Credit Rating [1]
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Offsetting Carrying Value [3]
 
 
 
 
 
 
 
 
 
 
Single name credit default swaps
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
$
40,000

$
726

$
726

3 years
Corporate Credit/ Foreign Gov.
A+
$
40,000

$
(726
)
$
(726
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
48,893

157

157

Less than 1 year
Corporate Credit
BBB+
41,592

(157
)
(157
)
Below investment grade
3,900

(394
)
(285
)
5 years
Corporate Credit
BBB-
—

—

—

Investment grade risk exposure
118,203

(1,468
)
(1,277
)
5 years
CMBS Credit
AA+
67,203

383

383

Credit linked notes
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
50,000

48,465

49,960

2 years
Corporate Credit
A+
—

—

—

Total
$
260,996

$
47,486

$
49,281

 
 
 
$
148,795

$
(500
)
$
(500
)

[1]
The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, Fitch, and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.
[2]
Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements, clearing house rules, and applicable law which include collateral posting requirements. There is no specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.
[3]
The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid, related to the original swap.
[4]
Includes $389,197,000 and $170,996,000 as of December 31, 2015 and 2014, respectively, of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

Credit Risk

The Company’s derivative counterparty exposure policy establishes market-based credit limits, favors long-term financial stability and creditworthiness of the counterparty and typically requires credit enhancement/credit risk reducing agreements. The Company minimizes the credit risk in derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared transactions reduce risk due to their ability to require daily variation margin, monitor the Company's ability to request additional collateral in the event of a counterparty downgrade, and act as an independent valuation source.

The Company has developed credit exposure thresholds which are based upon counterparty ratings. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. Credit exposures are generally quantified daily based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the contractual thresholds. In accordance with industry standards and the contractual agreements, collateral is typically settled on the next business day. The Company has exposure to credit risk for amounts below the exposure thresholds which are uncollateralized, as well as for market fluctuations that may occur between contractual settlement periods of collateral movements.

Counterparty exposure thresholds are developed for each of the counterparties based upon their ratings. The maximum uncollateralized threshold for a derivative counterparty is $10 million. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company also generally requires that OTC derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty.

For the years ended December 31, 2015, 2014, and 2013 the Company had no losses on derivative instruments due to counterparty nonperformance.


19
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

f. 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. As of December 31, 2015 and 2014, the Company is not exposed to any credit concentration risk of a single issuer, excluding U.S. government and certain U.S. government agencies, greater than 10% of the Company’s capital and surplus.

g. Bonds, Short-Term Investments, Common Stocks and Preferred Stocks
 
 
Gross
Gross
Estimated
Bonds and Short-Term Investments
Statement
Unrealized
Unrealized
Fair
As of December 31, 2015
Value
Gains
Losses
Value
U.S. government and government agencies and
 
 
 
  authorities:
 
 
 
 
 -Guaranteed and sponsored - excluding
 
 
 
 
    asset-backed
$
468,157,060

$
50,347,572

$
(1,615,463
)
$
516,889,169

 -Guaranteed and sponsored - asset-backed
529,632,781

16,259,294

(1,319,449
)
544,572,626

States, municipalities and political subdivisions
79,150,187

6,637,538

(380,843
)
85,406,882

International governments
91,243,603

1,115,493

(4,243,423
)
88,115,673

All other corporate - excluding asset-backed
2,865,485,577

100,563,530

(46,901,215
)
2,919,147,892

All other corporate - asset-backed
844,366,352

13,740,711

(7,448,950
)
850,658,113

Hybrid securities
9,269,700

632,025

—

9,901,725

Short-term investments
282,825,867

30,950

—

282,856,817

Total bonds and short-term investments
$
5,170,131,127

$
189,327,113

$
(61,909,343
)
$
5,297,548,897

 
 
Gross
Gross
Estimated
Common Stocks
 
Unrealized
Unrealized
Fair
As of December 31, 2015
Cost
Gains
Losses
Value
Common stocks - unaffiliated
$
343,995,735

$
3,848,518

$
(20,922,855
)
$
326,921,398

Common stocks - affiliated
40,014,377

—

(2,552,373
)
37,462,004

Total common stocks
$
384,010,112

$
3,848,518

$
(23,475,228
)
$
364,383,402

 
 
Gross
Gross
Estimated
Preferred Stocks
Statement
Unrealized
Unrealized
Fair
As of December 31, 2015
Value
Gains
Losses
Value
Preferred stocks - unaffiliated
$
2,644,315

$
34,890

$
—

$
2,679,205

Total preferred stocks
$
2,644,315

$
34,890

$
—

$
2,679,205


20
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

 
 
Gross
Gross
Estimated
Bonds and Short-Term Investments
Statement
Unrealized
Unrealized
Fair
As of December 31, 2014
Value
Gains
Losses
Value
U.S. government and government agencies and
 
 
 
  authorities:
 
 
 
 
 -Guaranteed and sponsored - excluding
 
 
 
 
    asset-backed
$
399,073,250

$
67,069,342

$
(418,269
)
$
465,724,323

 -Guaranteed and sponsored - asset-backed
731,986,335

27,803,202

(354,553
)
759,434,984

States, municipalities and political subdivisions
77,332,662

10,233,659

(291,977
)
87,274,344

International governments
114,794,516

3,157,714

(2,315,776
)
115,636,454

All other corporate - excluding asset-backed
2,767,506,704

198,303,298

(10,498,424
)
2,955,311,578

All other corporate - asset-backed
1,111,742,867

32,840,171

(7,710,005
)
1,136,873,033

Hybrid securities
20,068,228

2,130,041

—

22,198,269

Short-term investments
941,822,471

—

(4,948
)
941,817,523

Total bonds and short-term investments
$
6,164,327,033

$
341,537,427

$
(21,593,952
)
$
6,484,270,508

 
 
Gross
Gross
Estimated
Common Stocks
 
Unrealized
Unrealized
Fair
As of December 31, 2014
Cost
Gains
Losses
Value
Common stocks - unaffiliated
$
393,754,824

$
1,863,535

$
(16,012,031
)
$
379,606,328

Common stocks - affiliated
40,014,377

—

(927,833
)
39,086,544

Total common stocks
$
433,769,201

$
1,863,535

$
(16,939,864
)
$
418,692,872

 
 
Gross
Gross
Estimated
Preferred Stocks
Statement
Unrealized
Unrealized
Fair
As of December 31, 2014
Value
Gains
Losses
Value
Preferred stocks - unaffiliated
$
2,727,556

$
60,607

$
—

$
2,788,163

Total preferred stocks
$
2,727,556

$
60,607

$
—

$
2,788,163


The statement value and estimated fair value of bonds and short-term investments at December 31, 2015 by expected maturity year are shown below. Expected maturities may differ from contractual maturities due to call or prepayment provisions. Asset-backed securities (“ABS”), including mortgage-backed securities and collateralized mortgage obligations, are distributed to maturity year based on the Company’s estimate of the rate of future prepayments of principal over the remaining lives of the securities. These estimates are developed using prepayment speeds provided in broker consensus data. Such estimates are derived from prepayment speeds experienced at the interest rate levels projected for the applicable underlying collateral. Actual prepayment experience may vary from these estimates.
 
Statement
Estimated
Maturity
Value
Fair Value
Due in one year or less
$
908,703,050

$
914,661,533

Due after one year through five years
2,151,357,130

2,191,265,412

Due after five years through ten years
907,853,816

915,384,336

Due after ten years
1,202,217,131

1,276,237,616

Total
$
5,170,131,127

$
5,297,548,897


At December 31, 2015 and 2014, securities with a statement value of $3,994,399 and $3,961,274, respectively, were on deposit with government agencies as required by law in various jurisdictions in which the Company conducts business.


21
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

h. Mortgage Loans on Real Estate

The Company had one new mortgage loan on real estate with a lending rate of 3.47% during 2015 and had a maximum and minimum lending rate of 4.23% and 3.14% for loans during 2014. During 2015 and 2014, the Company did not reduce interest rates on any outstanding mortgage loans on real estate. For loans held as of December 31, 2015 and 2014, the highest loan to value percentage of any one loan at the time of loan origination, exclusive of insured, guaranteed, purchase money mortgages or construction loans was 75%. There were no taxes, assessments or amounts advanced and not included in the mortgage loan total. As of December 31, 2015 and 2014, the Company did not hold mortgages with interest more than 180 days past due. As of December 31, 2015 and 2014, there were impaired loans with a related allowance for credit losses of $173,060 and $354,506 with interest income recognized during the period the loans were impaired of $0 and $2,307,204, respectively.

i. Restructured Debt in which the Company is a Creditor

The Company had recorded investments in restructured loans of $184,551, $656,131 and $0, with realized capital losses related to these loans of $914,375, $166,985 and $0, respectively, as of December 31, 2015, 2014 and 2013.

j.
Joint Ventures, Partnerships and Limited Liability Companies

The Company has no investments in joint ventures, partnerships or limited liability companies that exceed 10% of admitted assets. The Company recognized immaterial OTTIs of for the years ended December 31, 2015, 2014 and 2013, respectively, on certain limited partnerships and one state tax credit limited liability company (LLC). The state tax credit LLC was impaired because the Company recovered a portion of the cost of the investment through receipt of tax credits and other tax benefits and not through investment activity. The LLC OTTI was determined as the difference between the remaining expected future tax credits and other tax benefits expected to be received over the life of the investment and the carrying value of the investment.

k. Security Lending, Repurchase Agreements and Other Collateral Transactions

The Company participates in securities lending programs to generate additional income. Through these programs, certain bonds within the corporate sector, foreign government/government agencies, and stocks are loaned from the Company’s portfolio to qualifying third-party borrowers in return for collateral in the form of cash or securities. Borrowers of these securities provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan for domestic and non-domestic securities, respectively. The borrower will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default, and is not reflected on the Company’s financial statements. The fair value of the loaned securities is monitored and additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements provide the counterparty the right to sell or re-pledge the securities transferred. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or bonds and is reported as Securities lending reinvested collateral assets on the balance sheet. Income associated with securities lending transactions is reported as a component of net investment income on the Company’s Summary of Operations.

As of December 31, 2015, the fair value of loaned securities was approximately $4,503,313 reported in Bonds. The associated liability for cash collateral received was $4,680,498 reported in Other liabilities, in the accompanying Statements of Admitted Assets, Liabilities and Capital and Surplus with no stated maturity date. As of December 31, 2015, the securities acquired from the use of the collateral in connection with our securities lending program were money market mutual funds with amortized cost approximating fair value of $4,680,498. The Company did not have securities lending transactions that extend beyond one year from the reporting date. The Company did not have any securities on loan as of December 31, 2014.

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental spread income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. A dollar roll is a type of repurchase transaction where a mortgage-backed security is sold with an agreement to repurchase substantially the same security at a specified time in the future. These transactions generally have a contractual maturity of 90 days or less. Therefore, the carrying amounts of these instruments approximate fair value.

As part of the repurchase agreement, the Company transfers U.S. government and government agency securities and receives cash. For the repurchase agreements, the Company obtains collateral in an amount equal to at least 95% of the fair value of the securities transferred. The agreements contain contractual provisions that require additional collateral to be transferred when necessary and

22
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or bonds. Repurchase agreements include master netting provisions that provide the counterparties the right to offset claims and apply securities held by them in respect of their obligations in the event of default. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in bonds, with the obligation to repurchase those securities recorded in other liabilities in the Statements of Admitted Assets, Liabilities and Capital and Surplus. As of December 31, 2015 and 2014, the Company had no outstanding repurchase agreements.

Reinvested proceeds from repurchase agreements and securities lending transactions consist of U.S. government and government agency securities and short-term investments. These can be sold and used to meet collateral calls in a stress scenario. In addition, the liquidity resources of most of its general account investment portfolio are available to meet any potential cash demand when securities are returned to the Company. The potential impacts of repurchase agreements and dollar rolls on the Company’s liquidity and capital position are stress tested monthly, under The Hartford's Liquidity Risk Policy.

The Company also enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2015 and 2014, securities pledged of $323,674,925 and $374,507,633, respectively, were included in Bonds and Cash and short-term investments, on the Statements of Admitted Assets, Liabilities and Capital and Surplus. The counterparties have the right to sell or re-pledge these securities. The Company also pledged cash collateral associated with derivative instruments with a statement value of $67,565,308 and $34,142,540, respectively, as of December 31, 2015 and 2014, included in Other invested assets, on the Statements of Admitted Assets, Liabilities and Capital and Surplus.

As of December 31, 2015 and 2014, the Company accepted cash collateral associated with derivative instruments with a statement value of $311,806,014 and $283,212,973, respectively, which was invested and recorded in the Statements of Admitted Assets, Liabilities and Capital and Surplus in Bonds and Cash and short-term investments with a corresponding amount recorded in collateral on derivatives. The Company also accepted securities collateral as of December 31, 2015 and 2014 of $46,205,391 and $41,741,483, respectively, of which the Company has the ability to sell or repledge $46,205,391 and $41,741,483, respectively. As of December 31, 2015 and 2014, the statement value of repledged securities totaled $0 and the Company did not sell any securities. In addition, as of December 31, 2015 and 2014, noncash collateral accepted was held in separate custodial accounts and was not included in the Company’s Statements of Admitted Assets, Liabilities and Capital and Surplus.

l. 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 OTTI policy, see 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, 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, 2015 and 2014.


23
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The following table presents amortized cost or statement value, fair value, and unrealized losses for the Company’s bond and 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, 2015:
 
Less Than 12 Months
12 Months or More
Total
 
Amortized
 
Unrealized
Amortized
 
Unrealized
Amortized
 
Unrealized
 (Amounts in thousands)
Cost
Fair Value
Losses
Cost
Fair Value
Losses
Cost
Fair Value
Losses
U.S. gov't and gov't
 
 
 
 
 
 
 
 
 
  agencies & authorities
 
 
 
 
 
 
 
 
 
  -guaranteed & sponsored
$
173,383

$
171,839

$
(1,544
)
$
7,262

$
7,191

$
(71
)
$
180,645

$
179,030

$
(1,615
)
  -guaranteed & sponsored
 
 
 
 
 
 
 
 
 
    -asset-backed
110,102

108,813

(1,289
)
484

453

(31
)
110,586

109,266

(1,320
)
States, municipalities &
 
 
 
 
 
 
 
 
 
  political subdivisions
20,932

20,551

(381
)
—

—

—

20,932

20,551

(381
)
International governments
47,538

44,786

(2,752
)
9,296

7,805

(1,491
)
56,834

52,591

(4,243
)
All other corporate
 
 
 
 
 
 
 
 
 
  including international
1,191,562

1,149,602

(41,960
)
37,646

32,705

(4,941
)
1,229,208

1,182,307

(46,901
)
All other corporate-
asset-backed
160,366

158,574

(1,792
)
264,139

258,482

(5,657
)
424,505

417,056

(7,449
)
    Total fixed maturities
1,703,883

1,654,165

(49,718
)
318,827

306,636

(12,191
)
2,022,710

1,960,801

(61,909
)
Common stock-unaffiliated
232,028

217,984

(14,044
)
41,794

34,915

(6,879
)
273,822

252,899

(20,923
)
Common stock-affiliated
—

—

—

40,014

37,462

(2,552
)
40,014

37,462

(2,552
)
    Total stocks
232,028

217,984

(14,044
)
81,808

72,377

(9,431
)
313,836

290,361

(23,475
)
Total securities
$
1,935,911

$
1,872,149

$
(63,762
)
$
400,635

$
379,013

$
(21,622
)
$
2,336,546

$
2,251,162

$
(85,384
)

The following table presents amortized cost, fair value, and unrealized losses for the Company’s bond and 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, 2014:

 
Less Than 12 Months
12 Months or More
Total
 
Amortized
 
Unrealized
Amortized
 
Unrealized
Amortized
 
Unrealized
 (Amounts in thousands)
Cost
Fair Value
Losses
Cost
Fair Value
Losses
Cost
Fair Value
Losses
U.S. gov't and gov't
 
 
 
 
 
 
 
 
 
  agencies & authorities
 
 
 
 
 
 
 
 
 
  -guaranteed & sponsored
$
44,690

$
44,538

$
(152
)
$
18,551

$
18,285

$
(266
)
$
63,241

$
62,823

$
(418
)
  -guaranteed & sponsored
 
 
 
 
 
 
 
 
 
    -asset-backed
19,261

19,190

(71
)
33,428

33,144

(284
)
52,689

52,334

(355
)
States, municipalities &
 
 
 
 
 
 
 
 
 
  political subdivisions
—

—

—

1,399

1,107

(292
)
1,399

1,107

(292
)
International governments
33,194

31,940

(1,254
)
18,005

16,943

(1,062
)
51,199

48,883

(2,316
)
All other corporate
 
 
 
 
 
 
 
 
 
  including international
451,145

442,503

(8,642
)
104,169

102,313

(1,856
)
555,314

544,816

(10,498
)
All other corporate-
asset-backed
153,486

152,841

(645
)
358,911

351,846

(7,065
)
512,397

504,687

(7,710
)
Short-term investments
2,078

2,073

(5
)
—

—

—

2,078

2,073

(5
)
    Total fixed maturities
703,854

693,085

(10,769
)
534,463

523,638

(10,825
)
1,238,317

1,216,723

(21,594
)
Common stock-unaffiliated
307,792

303,448

(4,344
)
61,484

49,816

(11,668
)
369,276

353,264

(16,012
)
Common stock-affiliated
—

—

—

40,014

39,086

(928
)
40,014

39,086

(928
)
 
—

—

—

—

—

—

—

—

—

    Total stocks
307,792

303,448

(4,344
)
101,498

88,902

(12,596
)
409,290

392,350

(16,940
)
Total securities
$
1,011,646

$
996,533

$
(15,113
)
$
635,961

$
612,540

$
(23,421
)
$
1,647,607

$
1,609,073

$
(38,534
)


24
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The Company holds 100% of the common stock of a foreign insurance subsidiary which is stated at GAAP carrying value adjusted for certain nonadmitted items and other adjustments for NAIC SAP rules if applicable. The following discussion refers to the data presented in the table above, excluding affiliated common stock. See Note 13, Subsequent Events.

As of December 31, 2015, fixed maturities, comprised of 796 securities, accounted for approximately 75% of the Company’s total unrealized loss amount. The securities were primarily related to corporate securities concentrated in the energy sector, foreign government and government agency securities, collateralized debt obligations ("CDOs"), and CMBS, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. The remaining unrealized loss amount primarily related to the Company's investment in Hartford diversified mutual funds and foreign unaffiliated common stock. As of December 31, 2015, 96% of the securities in an unrealized loss position were depressed less than 20% of amortized cost. The increase in unrealized losses during 2015 was primarily attributable to wider credit spreads and an increase in interest rates.

Most of the securities depressed for twelve months or more primarily relate to corporate securities concentrated in the energy sector, as well as structured securities with exposure to commercial and residential real estate. Corporate securities within the energy sector are primarily depressed due to a decline in oil prices. For certain commercial and residential real estate securities, current market spreads are wider than spreads at the securities' respective purchase dates. As of December 31, 2015, the Company does not have an intention to sell any securities in an unrealized loss position, and for loan-backed and structured securities, has the intent and ability to hold these securities until values recover. Furthermore, based upon the Company’s cash flow modeling and the expected continuation of contractually required principal and interest payments, the Company has deemed these securities to be temporarily impaired as of December 31, 2015.



m. Loan-backed and Structured Securities OTTIs

For the year ended December 31, 2015, the Company recognized immaterial losses for OTTIs on loan-backed and structured securities due to the intent to sell impaired securities. These securities had an amortized cost prior to recognition of the OTTI and a fair value of $388,063 and $369,750, respectively. No OTTI was recognized due to an inability or lack of intent to retain an investment in a security for a period of time sufficient to recover the amortized cost basis.

The following table summarizes OTTI recognized during 2015 for loan-backed securities held as of December 31, 2015 recorded because the present value of estimated cash flows expected to be collected was less than the amortized cost of the securities:
1
2
3
4
5
6
7
 
 
 
Book/Adj
 
 
 
 
 
 
 
 
Carrying
 
 
 
 
 
 
 
 
Value
 
 
 
 
Date of
 
 
 
Amortized
Present Value
 
 
 
Financial
 
 
 
Cost Before
of
 
Amortized
Fair
Statement
 
 
 
Current Period
Projected
Recognized
Cost After
Value at
Where
CUSIP
OTTI
Cash Flows
OTTI
OTTI
Time of OTTI
Reported
46625Y
JP
9
$
32,832

$
26,202

$
6,630

$
26,202

$
32,141

3/31/2015
52108H
NT
7
91,469

81,843

9,626

81,843

1,873

3/31/2015
61745M
3N
1
37,649

18,773

18,876

18,773

152

3/31/2015
46625M
PS
2
20,671

16,152

4,519

16,152

13,403

6/30/2015
52108H
NT
7
77,771

38,972

38,799

38,972

1,750

6/30/2015
61745M
3N
1
17,110

3,447

13,663

3,447

517

6/30/2015
52108H
NT
7
35,935

32,519

3,416

32,519

249

9/30/2015
46625M
AN
9
418,332

225,236

193,096

225,236

233,340

12/31/2015
46625Y
UM
3
71,173

39,273

31,900

39,273

4,968

12/31/2015
52108H
NT
7
30,522

28,502

2,020

28,502

249

12/31/2015
Total
 
 
 
 
$
322,545

 
 
 
 

25
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

n. Structured Notes

The following table summarizes structured notes as of December 31, 2015:
CUSIP
Identification
Actual Cost
Fair Value
Book/Adjusted
Carrying Value
Mortgage-
Referenced
Security
(Yes/No)
03938L
AM
6

$
1,396,846

$
1,068,750

$
1,346,643

NO
39483
BB
7

8,385,689

9,025,432

8,359,875

NO
30711X
AA
2

876,090

882,449

876,090

YES
V25125
BD
2

1,079,450

977,834

1,079,966

NO
37957T
AK
7

600,000

540,000

600,000

NO
580638
AB
0
924,834

932,800

911,888

NO
608190
AH
7

3,877,527

3,893,115

3,888,936

NO
62718Q
AA
3

10,994,565

11,333,267

10,997,742

NO
3137G0
AL
3

1,021,208

1,021,562

1,021,222

YES
3137G0
AX
7

245,684

245,705

245,695

YES
3137G0
EW
5

502,520

474,892

502,426

YES
3137G0
FW
4

2,500,000

2,410,425

2,500,000

YES
3137G0
GT
0
1,464,243

1,462,098

1,464,244

YES
3137G0
HF
9

1,250,000

1,249,060

1,250,000

YES
925369
AA
8

3,179,128

3,236,938

3,175,719

NO
Total
 
 
$
38,297,784

$
38,754,327

$
38,220,446

 

4. Fair Value Measurements

Fair value is determined based on the "exit price" notion which is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Certain of the following financial instruments are carried at fair value in the Company’s financial statements: bonds and stocks, derivatives, and Separate Account assets.

The Company's estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The Company categorizes its assets and liabilities measured at estimated fair value based on whether the significant inputs into the valuation are observable. The fair value hierarchy categorizes the inputs in the valuation techniques used to measure fair value into three broad Levels (Level 1, 2, or 3)

Level 1
Unadjusted 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
Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain one or more significant unobservable inputs as there is little or no observable market for these assets and liabilities, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the Company’s best estimate of amounts that could be realized in a current market exchange absent actual market exchanges.

In many situations, inputs used to measure the fair value of an asset or liability position may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. Transfers of securities among the levels occur at the beginning of

26
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

the reporting period. There were no transfers between Level 1 and Level 2 for the years ended December 31, 2015 and 2014. In most cases, both observable (e.g., changes in interest rates) and unobservable (e.g., changes in risk assumptions) inputs are used in the determination of fair values that the Company has classified within Level 3. Consequently, these values and the related gains and losses are based upon both observable and unobservable inputs. The Company’s bonds included in Level 3 are classified as such because these securities are primarily within illiquid markets and/or priced by independent brokers.

The following table presents assets and (liabilities) carried at fair value by hierarchy level:
As of December 31, 2015
 
(Amounts in thousands)
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Total
a.
Assets accounted for at fair value
 
 
 
 
 
All other corporate bonds – asset-backed
$
—

$
—

$
9

$
9

 
Common stocks - unaffiliated
326,919

—

2

326,921

 
Total bonds and stocks
326,919

—

11

326,930

 
Derivative assets
 
 
 
 
 
Credit derivatives
—

4,224

—

4,224

 
Interest rate derivatives
—

15,620

—

15,620

 
Equity derivatives
—

15,969

—

15,969

 
Foreign exchange derivatives
—

4,255

—

4,255

 
GMWB hedging instruments
—

94,068

114,393

208,461

 
Macro hedge program
—

—

169,182

169,182

 
Total derivative assets
—

134,136

283,575

417,711

 
Separate Account assets [1]
32,173,084

—

—

32,173,084

 
Total assets accounted for at fair value
$
32,500,003

$
134,136

$
283,586

$
32,917,725

b.
Liabilities accounted for at fair value
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
Credit derivatives
$
—

$
(6,267
)
$
—

$
(6,267
)
 
Interest rate derivatives
—

(26,687
)
—

(26,687
)
 
GMWB hedging instruments
—

(36,676
)
(29,753
)
(66,429
)
 
Macro hedge program
—

—

(32,585
)
(32,585
)
 
Total liabilities accounted for at fair value
$
—

$
(69,630
)
$
(62,338
)
$
(131,968
)

[1]
Excludes approximately $17.2 million of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100 (Fair Value Measurements).


27
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

As of December 31, 2014
 
(Amounts in thousands)
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Total
a.
Assets accounted for at fair value
 
 
 
 
 
All other corporate bonds – asset-backed
$
—

$
—

$
61

$
61

 
International government bonds
—

835

—

835

 
Common stocks - unaffiliated
125,489

—

190

125,679

 
Total bonds and stocks
125,489

835

251

126,575

 
Derivative assets
 
 
 
 
 
Credit derivatives
—

1,256

405

1,661

 
Interest rate derivatives
—

15,842

686

16,528

 
Equity derivatives
—

357

2,340

2,697

 
Foreign exchange derivatives
—

—

39

39

 
GMWB hedging instruments
—

86,289

151,367

237,656

 
Macro hedge program
—

—

179,497

179,497

 
Total derivative assets
—

103,744

334,334

438,078

 
Separate Account assets [1]
38,142,920

—

—

38,142,920

 
Total assets accounted for at fair value
$
38,268,409

$
104,579

$
334,585

$
38,707,573

b.
Liabilities accounted for at fair value
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
Credit derivatives
$
—

$
(2,116
)
$
(1,299
)
$
(3,415
)
 
Interest rate derivatives
—

(28,780
)
—

(28,780
)
 
GMWB hedging instruments
—

(41,002
)
(26,368
)
(67,370
)
 
Macro hedge program
—

—

(38,923
)
(38,923
)
 
Total liabilities accounted for at fair value
$
—

$
(71,898
)
$
(66,590
)
$
(138,488
)

[1]
Excludes approximately $19.8 million of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100.

Valuation Techniques, Procedures and Controls

The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices where available and where prices represent reasonable estimates of fair values. The Company also determines fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s default spreads, liquidity and, where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments listed in the preceding tables.

The fair value process is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The Valuation Committee is co-chaired by the Heads of Investment Operations and Investment Accounting and has representation from various investment sector professionals, accounting, operations, legal, compliance and risk management. The purpose of the committee is to oversee the pricing policy and procedures by ensuring objective and reliable valuation practices and pricing of financial instruments, as well as addressing fair valuation issues and approving changes to valuation methodologies and pricing sources. There are also two working groups under the Valuation Committee, a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group (“Derivatives Working Group”), which include various investment, operations, accounting and risk management professionals that meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes.

The Company also has an enterprise-wide Operational Risk Management function, led by the Chief Operational Risk Officer, which is responsible for establishing, maintaining and communicating the framework, principles and guidelines of the Company’s operational risk management program. This includes model risk management which provides an independent review of the suitability, characteristics and reliability of model inputs as well as, an analysis of significant changes to current models.


28
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Bonds and Stocks

The fair value of bonds and stocks in an active and orderly market (e.g., not distressed or forced liquidation) are determined by management using a "waterfall" approach after considering the following pricing sources: quoted prices for identical assets or liabilities, prices from third-party pricing services, independent broker quotations, or internal matrix pricing processes. Typical inputs used by these pricing sources include, but are not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and/or estimated cash flows, prepayment speeds, and default rates. Most fixed maturities do not trade daily. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third-party pricing services utilize matrix pricing to derive security prices. Matrix pricing relies on securities' relationships to other benchmark quoted securities, which trade more frequently. Pricing services utilize recently reported trades of identical or similar securities making adjustments through the reporting date based on the preceding outlined available market observable information. If there are no recently reported trades, the third-party pricing services may develop a security price using expected future cash flows based upon collateral performance and discounted at an estimated market rate. Both matrix pricing and discounted cash flow techniques develop prices by factoring in the time value for cash flows and risk.

Prices from third-party pricing services may be unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. Additionally, the majority of these independent broker quotations are non-binding.

The Company utilizes an internally developed matrix pricing process for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. The Company's process is similar to the third-party pricing services. The Company develops credit spreads each month using market based data for public securities adjusted for credit spread differentials between public and private securities which are obtained from a survey of multiple private placement brokers. The credit spreads determined through this survey approach are based upon the issuer’s financial strength and term to maturity, utilizing independent public security index and trade information and adjusting for the non-public nature of the securities. Credit spreads combined with risk-free rates are applied to contractual cash flows to develop a price.

The Securities Working Group performs ongoing analyses of the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analyses and is overseen by investment and accounting professionals. As a part of these analyses, the Company considers trading volume, new issuance activity and other factors to determine whether the market activity is significantly different than normal activity in an active market, and if so, whether transactions may not be orderly considering the weight of available evidence. If the available evidence indicates that pricing is based upon transactions that are stale or not orderly, the Company places little, if any, weight on the transaction price and will estimate fair value utilizing an internal pricing model. In addition, the Company ensures that prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models utilizing spreads, and when available, market indices. As a result of these analyses, if the Company determines that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly and approved by the Valuation Committee.

The Company conducts other specific monitoring controls around pricing. Daily analyses identify price changes over 3% for fixed maturities and 5% for equity securities and trade prices for both bonds and stocks that differ over 3% to the current day’s price. Weekly analyses identify prices that differ more than 5% from published bond prices of a corporate bond index. Monthly analyses identify price changes over 3%, prices that have not changed, and missing prices. Also on a monthly basis, a second source validation is performed on most sectors. Analyses are conducted by a dedicated pricing unit that follows up with trading and investment sector professionals and challenges prices with vendors when the estimated assumptions used differs from what the Company feels a market participant would use. Examples of other procedures performed include, but are not limited to, initial and ongoing review of third-party pricing services’ methodologies, review of pricing statistics and trends and back testing recent trades.

The Company has analyzed the third-party pricing services’ valuation methodologies and related inputs, and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Most prices provided by third-party pricing services are classified into Level 2 because the inputs used in pricing the securities are observable. Due to the lack of transparency in the process that brokers use to develop prices, most valuations that are based on brokers’ prices are classified as Level 3. Some valuations may be classified as Level 2 if the price can be corroborated with observable market data.


29
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Derivative Instruments

Derivative instruments are fair valued using pricing valuation models for OTC derivatives that utilize independent market data inputs, quoted market prices for exchange-traded derivatives and OTC-cleared derivatives, or independent broker quotations. As of December 31, 2015 and 2014, 90% and 92%, respectively, of derivatives, based upon notional values, were priced by valuation models or quoted market prices, including discounted cash flow models and option-pricing models that utilize present value techniques, or quoted market prices. The remaining derivatives were priced by broker quotations.

The Derivatives Working Group performs ongoing analyses of the valuations, assumptions, and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. The Company performs various controls on derivative valuations which include both quantitative and qualitative analyses. Analyses are conducted by a dedicated derivative pricing team that works directly with investment sector professionals to analyze impacts of changes in the market environment and investigate variances. On a daily basis, market valuations are compared to counterparty valuations for OTC derivatives. There are monthly analyses to identify market value changes greater than pre-defined thresholds, stale prices, missing prices and zero prices. Also on a monthly basis, a second source validation, typically to broker quotations, is performed for certain of the more complex derivatives and all new deals during the month. A model validation review is performed on any new models, which typically includes detailed documentation and validation to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. There is a monthly control to review changes in pricing sources to ensure that new models are not moved to production until formally approved.

The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated assets and liabilities. Therefore the realized and unrealized gains and losses on derivatives reported in Level 3 may not reflect the offsetting impact of the realized and unrealized gains and losses of the associated assets and liabilities.

Valuation Inputs for Investments

For Level 1 investments, which are comprised of exchange-traded securities and open-ended mutual funds, valuations are based on observable inputs that reflect quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date.

For the Company’s Level 2 and 3 debt securities, typical inputs used by pricing techniques include, but are not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and/or estimated cash flows, prepayment speeds, and default rates. Derivative instruments are valued using mid-market inputs that are predominantly observable in the market.

A description of additional inputs used in the Company’s Level 2 and Level 3 measurements is included in the following discussion:

Level 2
The fair values of most of the Company’s Level 2 investments are determined by management after considering prices received from third-party pricing services. These investments include most bonds and preferred stocks.

ABS, CDOs, CMBS and residential mortgage-backed securities ("RMBS") - Primary inputs also include monthly payment information, collateral performance, which varies by vintage year and includes delinquency rates, collateral valuation loss severity rates, collateral refinancing assumptions, and credit default swap indices. ABS and RMBS prices also include estimates of the rate of future principal prepayments 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.

Credit derivatives - Primary inputs include the swap yield curve and credit default swap curves.

Equity derivatives - Primary inputs include equity index levels.

Foreign exchange derivatives - Primary inputs include the swap yield curve, currency spot and forward rates, and cross currency basis curves.

Interest rate derivatives - Primary input is the swap yield curve.

30
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013


Level 3
Most of the Company’s securities classified as Level 3 include less liquid securities such as lower quality ABS, CMBS, commercial real estate (“CRE”), CDOs and RMBS primarily backed by sub-prime loans. Also included in level 3 are securities valued based on broker prices or broker spreads, without adjustments. Primary inputs for non-broker priced investments, including structured securities, are consistent with the typical inputs used in Level 2 measurements noted above, but are Level 3 due to their less liquid markets. Additionally, certain long-dated securities are priced based on third-party pricing services, including municipal securities, foreign government/government agency securities, and bank loans. Primary inputs for these long-dated securities are consistent with the typical inputs used in the preceding noted Level 1 and Level 2 measurements, but include benchmark interest rate or credit spread assumptions that are not observable in the marketplace. Also included in Level 3 are certain derivative instruments that either have significant unobservable inputs or are valued based on broker quotations. Significant inputs for these derivative contracts primarily include the typical inputs used in the Level 1 and Level 2 measurements noted above, but also may include equity and interest rate volatility, swap yield curves beyond observable limits, and commodity price curves.

Separate Account assets

Separate Account assets are primarily invested in mutual funds but also have investments in bonds and stocks. Separate Account investments are valued in the same manner, and using the same pricing sources and inputs, as the bonds and stocks held in the General Account of the Company.

Significant Unobservable Inputs for Level 3 Assets Measured at Fair Values

The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value. The tables exclude corporate securities for which fair values are predominantly based on broker quotations.
(Amounts in thousands)
December 31, 2015
Assets accounted for at fair value on a recurring basis
Fair Value
Predominant Valuation Method
Significant Unobservable Input
Minimum [1]
Maximum [1]
Weighted Average [2]
Impact of Increase in Input on Fair Value [3]
CMBS
$
9

Discounted cash flows
Spread (encompasses prepayment, default risk and loss severity)
116bps
138bps
137bps
Decrease

[1] Basis points (bps).
[2] The weighted average is determined based on the fair value of the securities.
[3] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above.
(Amounts in thousands)
December 31, 2014
Assets accounted for at fair value on a recurring basis
Fair Value
Predominant Valuation Method
Significant Unobservable Input
Minimum [1]
Maximum [1]
Weighted Average [2]
Impact of Increase in Input on Fair Value [3]
CMBS
$
61

Discounted cash flows
Spread (encompasses prepayment, default risk and loss severity)
125bps
150bps
148bps
Decrease

[1] Basis points (bps).
[2] The weighted average is determined based on the fair value of the securities.
[3] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above.

31
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

(Amounts in thousands)
December 31, 2015
Free Standing Derivatives
Fair Value
Predominant Valuation Method
Significant Unobservable Input
Minimum
Maximum
Impact of Increase in Input on Fair Value [1]
GMWB hedging instruments
 
 
 
 
 
 
Equity options
$
36,810

Option model
Equity volatility
27%
29%
Increase
Equity variance swaps
(27,129)
Option model
Equity volatility
19%
21%
Increase
Customized swaps
74,959
Discounted cash flows
Equity volatility
10%
40%
Increase
Macro hedge program
 
 
 
 
 
 
Equity options [2]
169,101
Option model
Equity volatility
14%
28%
Increase

[1] The impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.
[2] Level 3 macro hedge derivatives excludes those for which the Company bases fair value on broker quotations as noted in the following discussion.
(Amounts in thousands)
December 31, 2014
Free Standing Derivatives
Fair Value
Predominant Valuation Method
Significant Unobservable Input
Minimum
Maximum
Impact of Increase in Input on Fair Value [1]
Interest rate derivatives
 
 
 
 
 
 
Interest rate swaptions
$
686

Option model
Interest rate volatility
1%
1%
Increase
GMWB hedging instruments
 
 
 
 
 
 
Equity options
50,963

Option model
Equity volatility
22%
34%
Increase
Customized swaps
74,036

Discounted cash flows
Equity volatility
10%
40%
Increase
Macro hedge program
 
 
 
 
 
 
Equity options
140,574

Option model
Equity volatility
27%
28%
Increase

[1] The impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

Securities and derivatives for which the Company bases fair value on broker quotations predominately include corporate bonds and certain credit derivatives. Due to the lack of transparency in the process brokers use to develop prices for these investments, the Company does not have access to the significant unobservable inputs brokers use to price these securities and derivatives. The Company believes however, the types of inputs brokers may use would likely be similar to those used to price securities and derivatives for which inputs are available to the Company, and therefore may include, but not be limited to, loss severity rates, constant prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities and derivatives, generally, increases in these inputs would cause fair values to decrease. For the years ended December 31, 2015 and 2014, no significant adjustments were made by the Company to broker prices received.


32
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The tables below provides a roll-forward of financial instruments measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2015 and 2014:
 
 
 
 
Total Realized/
 
 
 
 
 
 
 
 
Unrealized Gains
 
 
 
 
 
Fair Value
Transfers
Transfers
(Losses) Included in:
 
 
 
Fair Value
 
as of
into
out of
Net
 
Purchases/
Sales/
 
as of
(Amounts in thousands)
Jan. 1, 2015
Level 3 [2]
Level 3 [2]
Income [1]
Surplus
Increases
Decreases
Settlements
Dec. 31, 2015
Assets
 
 
 
 
 
 
 
 
 
All other corporate bonds – asset-backed
$
61

$
41

$
(255
)
$
(85
)
$
94

$
256

$
—

$
(103
)
$
9

Common stocks - unaffiliated
190

—

—

32

1

—

(221
)
—

2

Total bonds and stocks
251

41

(255
)
(53
)
95

256

(221
)
(103
)
11

Derivatives
 
 
 
 
 
 
 
 
 
Credit derivatives
(894
)
—

3,224

20

—

(2,350
)
—

—

—

Commodity derivatives
—

1,386

—

(551
)
—

—

—

(835
)
—

Equity derivatives
2,340

—

—

8,067

—

—

—

(10,407
)
—

Interest rate derivatives
686

—

—

(364
)
—

236

—

(558
)
—

Foreign exchange derivatives
39

—

(39
)
—

—

—

—

—

—

GMWB hedging instruments
124,999

—

—

(19,863
)
—

—

—

(20,496
)
84,640

  Macro hedge program
140,574

—

—

(31,147
)
—

27,170

—

—

136,597

Total derivatives [3]
267,744

1,386

3,185

(43,838
)
—

25,056

—

(32,296
)
221,237

Total assets
$
267,995

$
1,427

$
2,930

$
(43,891
)
$
95

$
25,312

$
(221
)
$
(32,399
)
$
221,248


[1]
All amounts in this column are reported in net realized capital gains (losses). All amounts are before income taxes.
[2]
Transfers in and/or (out) of Level 3 are primarily attributable to changes in the availability of market observable information and changes to the bond and stock carrying value based on the lower of cost and market requirement.
[3]Derivative instruments are reported in this table on a net basis for asset/(liability) positions.
 
 
 
 
Total Realized/
 
 
 
 
 
 
 
 
Unrealized Gains
 
 
 
 
 
Fair Value
Transfers
Transfers
(Losses) Included in:
 
 
 
Fair Value
 
as of
into
out of
Net
 
Purchases/
Sales/
 
as of
(Amounts in thousands)
Jan. 1, 2014
Level 3 [2]
Level 3 [2]
Income [1]
Surplus
Increases
Decreases
Settlements
Dec. 31, 2014
Assets
 
 
 
 
 
 
 
 
 
All other corporate bonds
$
—

$
—

$
—

$
(4
)
$
2

$
2

$
—

$
—

$
—

All other corporate bonds – asset-backed
62

65

(37
)
(19
)
69

—

—

(79
)
61

Common stocks - unaffiliated
337

—

—

(147
)
—

—

—

—

190

Total bonds and stocks
399

65

(37
)
(170
)
71

2

—

(79
)
251

Derivatives
 
 
 
 
 
 
 
 
 
Credit derivatives
—

—

—

—

10

(904
)
—

—

(894
)
Equity derivatives
—

—

—

—

2,340

—

—

—

2,340

Interest rate derivatives
—

—

—

—

(500
)
1,186

—

—

686

Foreign exchange derivatives
—

39

—

—

—

—

—

—

39

GMWB hedging instruments
104,729

—

21,630

—

(12,146
)
5,095

—

5,691

124,999

Macro hedge program
139,322

—

—

—

(11,126
)
12,378

—

—

140,574

International hedging program
(17,464
)
—

3,362

—

(776
)
—

—

14,878

—

Total derivatives [3]
226,587

39

24,992

—

(22,198
)
17,755

—

20,569

267,744

Total assets
$
226,986

$
104

$
24,955

$
(170
)
$
(22,127
)
$
17,757

$
—

$
20,490

$
267,995



33
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

[1]
All amounts in this column are reported in net realized capital gains (losses). All amounts are before income taxes.
[2]
Transfers in and/or (out) of Level 3 are primarily attributable to changes in the availability of market observable information and changes to the bond and stock carrying value based on the lower of cost and market requirement.
[3]
Derivative instruments are reported in this table on a net basis for asset/(liability) positions.

Fair Values for All Financial Instruments by Levels 1, 2 and 3

The tables below reflects the fair values and admitted values of all admitted assets and liabilities that are financial instruments excluding those accounted for under the equity method (subsidiaries, joint ventures and partnerships). The fair values are also categorized into the three-level fair value hierarchy.
(Amounts in thousands)
December 31, 2015


Type of Financial Instrument
Aggregate Fair Value
Admitted Value
(Level 1)
(Level 2)
(Level 3)
Not Practicable (Carrying Value)
Assets
 
 
 
 
 
 
Bonds and short-term investments - unaffiliated
$
5,297,549

$
5,170,131

$
73,096

$
4,948,110

$
276,343

$
—

Preferred stocks - unaffiliated
2,679

2,644

—

2,679

—

—

Common stocks - unaffiliated
326,921

326,921

326,919

—

2

—

Mortgage loans on real estate
560,225

549,789

—

—

560,225

—

Derivative related assets
60,543

417,711

—

(223,031
)
283,574

—

Contract loans
113,807

113,807

—

—

113,807

—

Surplus debentures
14,002

12,907

—

14,002

—

—

Low-income housing tax credits ("LIHTC")
844

844

—

—

844

—

Securities lending reinvested collateral assets
4,680

4,680

4,680

—

—

—

Separate Account assets [1]
32,173,084

32,173,084

32,173,084

—

—

—

Total assets
$
38,554,334

$
38,772,518

$
32,577,779

$
4,741,760

$
1,234,795

$
—

Liabilities
 
 
 
 
 
 
Liability for deposit-type contracts
$
(972,209
)
$
(972,209
)
$
—

$
—

$
(972,209
)
$
—

Derivative related liabilities
(132,907
)
(131,968
)
—

(70,570
)
(62,337
)
—

Separate Account liabilities
(32,174,839
)
(32,174,839
)
(32,174,839
)
—

—

—

Total liabilities
$
(33,279,955
)
$
(33,279,016
)
$
(32,174,839
)
$
(70,570
)
$
(1,034,546
)
$
—


[1]
Excludes approximately $17.2 million, at December 31, 2015, of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100.

34
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

(Amounts in thousands)
December 31, 2014


Type of Financial Instrument
Aggregate Fair Value
Admitted Value
(Level 1)
(Level 2)
(Level 3)
Not Practicable (Carrying Value)
Assets
 
 
 
 
 
 
Bonds and short-term investments - unaffiliated
$
6,484,270

$
6,164,327

$
65,487

$
6,041,183

$
377,600

$
—

Preferred stocks - unaffiliated
2,788

2,728

—

2,788

—

—

Common stocks - unaffiliated
379,606

379,606

379,416

—

190

—

Mortgage loans on real estate
654,290

630,597

—

—

654,290

—

Derivative related assets
11,310

438,078

—

(323,010
)
334,320

—

Contract loans
111,304

111,304

—

—

111,304

—

Surplus debentures
15,010

12,965

—

15,010

—

—

LIHTC
984

984

—

—

984

—

Separate Account assets [1]
38,142,920

38,142,920

38,142,920

—

—

—

Total assets
$
45,802,482

$
45,883,509

$
38,587,823

$
5,735,971

$
1,478,688

$
—

Liabilities
 
 
 
 
 
 
Liability for deposit-type contracts
$
(1,172,348
)
$
(1,172,348
)
$
—

$
—

$
(1,172,348
)
$
—

Derivative related liabilities
(138,776
)
(138,488
)
—

(72,008
)
(66,768
)
—

Separate Account liabilities
(38,142,920
)
(38,142,920
)
(38,142,920
)
—

—

—

Total liabilities
$
(39,454,044
)
$
(39,453,756
)
$
(38,142,920
)
$
(72,008
)
$
(1,239,116
)
$
—


[1]
Excludes approximately $19.8 million, at December 31, 2014, of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100.

The valuation methodologies used to determine the fair values of bonds, stocks and derivatives are described in the above Fair Value Measurements section of this note.

The amortized cost of short-term investments approximates fair value.

Fair values for mortgage loans on real estate were estimated using discounted cash flow calculations based on current lending rates for similar type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans.

The carrying amounts of the liability for deposit-type contracts and Separate Account liabilities approximate their fair values.

During the second quarter of 2014, the Company changed the valuation technique used to estimate the fair values of contract loans. The fair values of contract loans were determined using current loan coupon rates which reflect the current rates available under the contracts. As a result, the fair values approximate the carrying value of the contract loans. Prior to the second quarter of 2014, the fair values of contract loans were estimated by utilizing discounted cash flow calculations using U.S. Treasury interest rates based on the loan durations.

At December 31, 2015 and 2014 the Company had no investments where it was not practicable to estimate fair value.


35
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

5. Income Taxes

A.
The components of the net deferred tax asset/(deferred tax liability) ("DTA"/"(DTL)") at period end and the change in those components are as follows:
1
 
 
 
2015
 
 
 
 
Ordinary
Capital
Total
 
(a)
Gross DTA
$
1,039,330,187

$
267,323,709

$
1,306,653,896

 
(b)
Statutory valuation allowance adjustments
—

—

—

 
(c)
Adjusted gross DTA
1,039,330,187

267,323,709

1,306,653,896

 
(d)
Deferred tax assets nonadmitted
403,333,664

264,486,490

667,820,154

 
(e)
Subtotal net admitted deferred tax assets
635,996,523

2,837,219

638,833,742

 
(f)
Deferred tax liabilities
405,342,402

—

405,342,402

 
(g)
Net admitted deferred tax asset/(net deferred tax liability)
$
230,654,121

$
2,837,219

$
233,491,340

2
 
 
 
2015
 
 
 
 
Ordinary
Capital
Total
 
Admission Calculation Components SSAP No. 101 :
 
 
 
 
(a)
Federal income taxes paid in prior years recoverable by carrybacks
$
—

$
—

$
—

 
(b)
Adjusted gross DTA expected to be realized
230,654,121

2,837,219

233,491,340

 
 
(1) DTAs expected to be realized after the balance sheet date
230,654,121

2,837,219

233,491,340

 
 
(2) DTAs allowed per limitation threshold
XXX

XXX

358,768,550

 
(c)
DTAs offset against DTLs
405,342,402

—

405,342,402

 
(d)
DTAs admitted as a result of application of SSAP No. 101
$
635,996,523

$
2,837,219

$
638,833,742

3
(a)
Ratio % used to determine recovery period and threshold limitation
2,784
%
 
 
 
(b)
Adjusted capital and surplus used to determine 2(b) thresholds
$
2,391,790,336

 
 
4
 
 
2015
 
 
 
 
Ordinary
Capital
 
 
Impact of Tax Planning Strategies:
 
 
 
 
(a)
Determination of adjusted gross DTA and net admitted DTA,
 
 
 
 
 
by tax character as a %.
 
 
 
 
 
(1) Adjusted gross DTAs amount from Note 5A1c
$
1,039,330,187

$
267,323,709

 
 
 
(2) % of net admitted adjusted gross DTAs by tax character attributable
 
 
 
 
 
to the impact of tax planning strategies
0
%
0
%
 
 
 
(3) Net admitted adj. gross DTAs amount from Note 5A1e
$
635,996,523

$
2,837,219

 
 
 
(4) % of net admitted adjusted gross DTAs by tax character admitted
 
 
 
 
 
because of the impact of planning strategies
45
%
2
%
 
 
(b)
Do the tax planning strategies include the use of reinsurance?
Yes________

No___X_____

 
1
 
 
 
2014
 
 
 
 
Ordinary
Capital
Total
 
(a)
Gross DTA
$
1,171,398,945

$
67,862,097

$
1,239,261,042

 
(b)
Statutory valuation allowance adjustments
—

—

—

 
(c)
Adjusted gross DTA
1,171,398,945

67,862,097

1,239,261,042

 
(d)
Deferred tax assets nonadmitted
597,093,850

40,931,560

638,025,410

 
(e)
Subtotal net admitted deferred tax assets
574,305,095

26,930,537

601,235,632

 
(f)
Deferred tax liabilities
310,358,917

22,315,206

332,674,123

 
(g)
Net admitted deferred tax asset/(net deferred tax liability)
$
263,946,178

$
4,615,331

$
268,561,509


36
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

2
 
 
 
2014
 
 
 
 
Ordinary
Capital
Total
 
Admission Calculation Components SSAP No. 101 :
 
 
 
 
(a)
Federal income taxes paid in prior years recoverable by carrybacks
$
—

$
—

$
—

 
(b)
Adjusted gross DTA expected to be realized
263,946,178

4,615,331

268,561,509

 
 
(1) DTAs expected to be realized after the balance sheet date
263,946,178

4,615,331

268,561,509

 
 
(2) DTAs allowed per limitation threshold
XXX

XXX

469,257,707

 
(c)
DTAs offset against DTLs
310,358,917

22,315,206

332,674,123

 
(d)
DTAs admitted as a result of application of SSAP No. 101
$
574,305,095

$
26,930,537

$
601,235,632

3
(a)
Ratio % used to determine recovery period and threshold limitation
3,233
%
 
 
 
(b)
Adjusted capital and surplus used to determine 2(b) thresholds
$
3,128,384,713

 
 
4
 
 
2014
 
 
 
 
Ordinary
Capital
 
 
Impact of Tax Planning Strategies:
 
 
 
 
(a)
Determination of adjusted gross DTA and net admitted DTA,
 
 
 
 
 
by tax character as a %.
 
 
 
 
 
(1) Adjusted gross DTAs amount from Note 5A1c
$
1,171,398,945

$
67,862,097

 
 
 
(2) % of net admitted adjusted gross DTAs by tax character attributable
 
 
 
 
 
to the impact of tax planning strategies
0
%
0
%
 
 
 
(3) Net admitted adj. gross DTAs amount from Note 5A1e
$
574,305,095

$
26,930,537

 
 
 
(4) % of net admitted adjusted gross DTAs by tax character admitted
 
 
 
 
 
because of the impact of planning strategies
125
%
4
%
 
 
(b)
Do the tax planning strategies include the use of reinsurance?
Yes________

No___X_____

 
1
 
 
Change During 2015
 
 
 
Ordinary
Capital
Total
 
(a)
Gross DTA
$
(132,068,758
)
$
199,461,612

$
67,392,854

 
(b)
Statutory valuation allowance adjustments
—

—

—

 
(c)
Adjusted gross DTA
(132,068,758
)
199,461,612

67,392,854

 
(d)
Deferred tax assets nonadmitted
(193,760,186
)
223,554,930

29,794,744

 
(e)
Subtotal net admitted deferred tax assets
61,691,428

(24,093,318
)
37,598,110

 
(f)
Deferred tax liabilities
94,983,485

(22,315,206
)
72,668,279

 
(g)
Net admitted deferred tax asset/(net deferred tax liability)
$
(33,292,057
)
$
(1,778,112
)
$
(35,070,169
)
2
 
 
Change During 2015
 
 
 
Ordinary
Capital
Total
 
Admission Calculation Components SSAP No. 101 :
 
 
 
 
(a)
Federal income taxes paid in prior years recoverable by carrybacks
$
—

$
—

$
—

 
(b)
Adjusted gross DTA expected to be realized
(33,292,057
)
(1,778,112
)
(35,070,169
)
 
 
(1) DTAs expected to be realized after the balance sheet date
(33,292,057
)
(1,778,112
)
(35,070,169
)
 
 
(2) DTAs allowed per limitation threshold
XXX

XXX

(110,489,157
)
 
(c)
DTAs offset against DTLs
94,983,485

(22,315,206
)
72,668,279

 
(d)
DTAs admitted as a result of application of SSAP No. 101
$
61,691,428

$
(24,093,318
)
$
37,598,110

3
(a)
Ratio % used to determine recovery period and threshold limitation
(449
)%
 
 
 
(b)
Adjusted capital and surplus used to determine 2(b) thresholds
$
(736,594,377
)
 
 

37
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

4
 
 
Change During 2015
 
 
 
 
Ordinary
Capital
 
 
Impact of Tax Planning Strategies:
 
 
 
 
(a)
Determination of adjusted gross DTA and net admitted DTA,
 
 
 
 
 
by tax character as a %.
 
 
 
 
 
(1) Adjusted gross DTAs amount from Note 5A1c
$
(132,068,758
)
$
199,461,612

 
 
 
(2) % of net admitted adjusted gross DTAs by tax character attributable
 
 
 
 
 
to the impact of tax planning strategies
0
 %
0
 %
 
 
 
(3) Net admitted adj. gross DTAs amount from Note 5A1e
$
61,691,428

$
(24,093,318
)
 
 
 
(4) % of net admitted adjusted gross DTAs by tax character admitted
 
 
 
 
 
because of the impact of planning strategies
(80
)%
(2
)%
 

B.
DTLs are not recognized for the following amounts:

Not Applicable.


38
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

C.
Significant Components of Income Taxes Incurred
1.
The components of current income tax (benefit)/expense are as follows:
 
 
 
 
 
 
2015
2014
Change
 
(a)
Federal
$
26,747,635

$
(294,390,300
)
$
321,137,935

 
(b)
Foreign
490

—

490

 
(c)
Subtotal
26,748,125

(294,390,300
)
321,138,425

 
(d)
Federal income tax on net capital gains
(5,819,624
)
(18,803,650
)
12,984,026

 
(e)
Utilization of capital loss carryforwards
—

—

—

 
(f)
Other
—

—

—

 
(g)
Federal and foreign income taxes incurred
$
20,928,501

$
(313,193,950
)
$
334,122,451

2.
The main components of the period end deferred tax amounts and the change in those components are as follows:
 
 
 
 
2015
2014
Change
 
 
DTA: Ordinary
 
 
 
 
 
Reserves
$
52,731,996

$
796,635

$
51,935,361

 
 
Tax deferred acquisition costs
73,930,746

63,961,807

9,968,939

 
 
Employee benefits
11,369,418

12,443,198

(1,073,780
)
 
 
Bonds and other investments
290,088

192,740,509

(192,450,421
)
 
 
NOL/Min tax credit/Foreign tax credits
889,124,912

890,593,141

(1,468,229
)
 
 
Other
11,883,027

10,863,655

1,019,372

 
 
Subtotal: DTA Ordinary
1,039,330,187

1,171,398,945

(132,068,758
)
 
 
Total adjusted gross ordinary DTA
1,039,330,187

1,171,398,945

(132,068,758
)
 
 
Nonadmitted ordinary DTA
403,333,664

597,093,850

(193,760,186
)
 
 
Admitted ordinary DTA
635,996,523

574,305,095

61,691,428

 
 
DTA: Capital
 
 
 
 
 
Bonds and other investments
267,323,709

67,862,097

199,461,612

 
 
Subtotal: DTA Capital
267,323,709

67,862,097

199,461,612

 
 
Total adjusted gross capital DTA
267,323,709

67,862,097

199,461,612

 
 
Nonadmitted capital DTA
264,486,490

40,931,560

223,554,930

 
 
Admitted capital DTA
2,837,219

26,930,537

(24,093,318
)
 
 
Total Admitted DTA
$
638,833,742

$
601,235,632

$
37,598,110

 
 
DTL: Ordinary
 
 
 
 
 
Bonds and other investments
$
306,772,356

$
282,678,237

$
24,094,119

 
 
Deferred and uncollected
1,221,868

113,561

1,108,307

 
 
Reserves
62,409,123

16,574,193

45,834,930

 
 
Other
34,939,055

10,992,926

23,946,129

 
 
Gross DTL ordinary
405,342,402

310,358,917

94,983,485

 
 
DTL: Capital
 
 
 
 
 
Investment related
—

22,315,206

(22,315,206
)
 
 
Gross DTL capital
—

22,315,206

(22,315,206
)
 
 
Total DTL
405,342,402

332,674,123

72,668,279

 
 
Net adjusted DTA/(DTL)
$
233,491,340

$
268,561,509

$
(35,070,169
)
 
 
Adjust for the change in deferred tax on unrealized gains/losses
 
 
127,985,420

 
 
Adjust for the stock compensation transfer
 
 
(556,617
)
 
 
Adjust for the change in nonadmitted deferred tax
 
 
29,794,744

 
 
Other adjustments
 
 
(2
)
 
 
Adjusted change in net deferred Income Tax
 
 
$
122,153,376



39
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

D.
Reconciliation of federal income tax rate to actual effective rate:

The sum of the income tax incurred and the change in the DTA/DTL is different from the result obtained by applying the statutory federal income tax rate to the pretax income. The significant items causing this difference are as follows:
 
 
% of Pre-tax
 
% of Pre-tax
 
% of Pre-tax
 
2015
income
2014
income
2013
income
 
Tax effect
$
101,842,924

Tax effect
$
(217,990,004
)
Tax effect
$
417,530,035

Statutory tax - 35%
$
35,645,023

35.00
 %
$
(76,296,501
)
35.00
 %
$
146,135,512

35.00
 %
Tax preferred investments
(87,245,687
)
(85.67
)%
(66,000,000
)
30.28
 %
(81,000,000
)
(19.40
)%
Interest maintenance reserve
19,337,905

18.99
 %
(19,633,778
)
9.01
 %
—

—
 %
Amortization of inception gain
(21,619,703
)
(21.23
)%
(26,758,068
)
12.27
 %
—

—
 %
VA Hedge Reclass
(44,333,658
)
(43.53
)%
—

—
 %
—

—
 %
All other
(3,008,755
)
(2.95
)%
(4,335,266
)
1.99
 %
(6,590,231
)
(1.58
)%
Total statutory income tax
(101,224,875
)
(99.39
)%
(193,023,613
)
88.55
 %
58,545,281

14.02
 %
Federal and foreign income taxes incurred
20,928,501

20.55
 %
(313,193,950
)
143.68
 %
(316,709,554
)
(75.85
)%
Change in net deferred income taxes
(122,153,376
)
(119.94
)%
120,170,337

(55.13
)%
375,254,835

89.87
 %
Total statutory income tax
$
(101,224,875
)
(99.39
)%
$
(193,023,613
)
88.55
 %
$
58,545,281

14.02
 %

E.
Operating loss and tax credit carryforwards and protective tax deposits

1. At December 31, 2015, the Company had $1,799,821,240 of net operating loss carryforwards which expire between 2023 and 2029 and $93,018,930 of foreign tax credit carryforwards which expire between 2019 and 2024.

2. The amount of federal income taxes incurred in the current year and each preceding year that will be available for recoupment in the event of future net losses are:
2015
—

2014
—

2013
—


3. The aggregate amounts of deposits reported as admitted assets under Section 6603 of the IRS Code was $0 as of December 31, 2015.


40
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

F.
Consolidated Federal Income Tax Return

1. The Company’s federal income tax return is consolidated within The Hartford’s consolidated federal income tax return. The consolidated federal income tax return includes the following entities:
The Hartford Financial Services Group, Inc. (Parent)
Business Management Group, Inc.
Hartford Holdings, Inc.
Nutmeg Insurance Agency, Inc.
Nutmeg Insurance Company
Hartford Lloyd's Corporation
Heritage Holdings, Inc.
1stAgChoice, Inc.
Hartford Fire Insurance Company
Access CoverageCorp, Inc.
Hartford Accident and Indemnity Company
Access CoverageCorp Technologies, Inc.
Hartford Casualty Insurance Company
Hartford Casualty General Agency, Inc.
Hartford Underwriters Insurance Company
Hartford Fire General Agency, Inc.
Twin City Fire Insurance Company
Hartford Strategic Investments LLC
Pacific Insurance Company, Limited
Hartford Underwriters General Agency, Inc.
Trumbull Insurance Company
Hartford of Texas General Agency, Inc.
Hartford Insurance Company of Illinois
Hartford Life, Inc.
Hartford Insurance Company of the Midwest
Hartford Life and Accident Insurance Company
Hartford Insurance Company of the Southeast
HIMCO Distribution Services Company
Hartford Lloyd's Insurance Company
Hartford-Comprehensive Employee Benefit Service Co.
Property & Casualty Insurance Co. of Hartford
Hartford Securities Distribution Company, Inc.
Sentinel Insurance Company, Ltd.
The Evergreen Group, Incorporated
First State Insurance Company
Hartford Administrative Services Company
New England Insurance Company
Hartford Life, LTD.
New England Reinsurance Corporation
Hartford Funds Management Group, Inc.
Fencourt Reinsurance Company, Ltd.
Hartford Life International Holding Company
Heritage Reinsurance Company, Ltd.
Hartford Life Insurance Company
New Ocean Insurance Co., Ltd.
Hartford Life and Annuity Insurance Company
Hartford Investment Management Co.
Hartford International Life Reassurance Corp.
HRA Brokerage Services. Inc.
American Maturity Life Insurance Company
Hartford Integrated Technologies, Inc.
 

2.
Federal Income Tax Allocation

Estimated tax payments are made quarterly, at which time intercompany tax balances are settled. In the subsequent year, additional settlements are made on the unextended due date of the return and at the time that the return is filed. The method of allocation among affiliates of the Company is subject to written agreement approved by the Board of Directors and based upon separate return calculations with current credit for net losses to the extent the losses provide a benefit in the consolidated tax return.

6. Reinsurance

The amount of reinsurance recoverables from and payables to affiliated and unaffiliated reinsurers were $12,358,106 and $44,479,130 respectively, as of December 31, 2015 and $8,969,569 and $52,130,428 respectively, as of December 31, 2014.

The effect of reinsurance as of and for the years ended December 31 is summarized as follows:
2015
Direct
Assumed
Ceded
Net
Aggregate reserves for future benefits
$
13,096,202,774

$
1,032,533,433

$
(10,423,928,459
)
$
3,704,807,748

Liability for deposit-type contracts
37,351,852

934,859,443

(1,817
)
972,209,478

Policy and contract claim liabilities
173,742,873

19,580,979

(172,841,525
)
20,482,327

Premium and annuity considerations
1,358,118,477

108,221,449

(1,153,228,469
)
313,111,457

Death, annuity, disability and other benefits
990,762,200

267,631,533

(837,201,360
)
421,192,373

Surrenders and other fund withdrawals
5,789,852,802

186,423,521

(424,779,950
)
5,551,496,373

                                                                                                                                                               

41
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

2014
Direct
Assumed
Ceded
Net
Aggregate reserves for future benefits
$
12,401,106,393

$
1,048,607,747

$
(9,577,895,699
)
$
3,871,818,441

Liability for deposit-type contracts
40,757,800

1,152,058,189

(20,468,091
)
1,172,347,898

Policy and contract claim liabilities
107,460,386

18,933,697

(107,290,179
)
19,103,904

Premium and annuity considerations
1,788,988,738

(73,107,311
)
39,676,872,085

41,392,753,512

Death, annuity, disability and other benefits
801,686,972

293,031,891

(663,455,070
)
431,263,793

Surrenders and other fund withdrawals
8,767,621,374

210,257,704

(2,632,097,533
)
6,345,781,545

2013
Direct
Assumed
Ceded
Net
Aggregate reserves for future benefits
$
11,905,322,306

$
1,076,972,436

$
(9,094,015,409
)
$
3,888,279,333

Liability for deposit-type contracts
48,225,329

1,335,518,462

(24,594,176
)
1,359,149,615

Policy and contract claim liabilities
117,147,937

17,567,410

(117,061,305
)
17,654,042

Premium and annuity considerations
2,263,956,031

214,306,601

(5,460,857,455
)
(2,982,594,824
)
Death, annuity, disability and other benefits
768,962,763

335,485,820

(780,296,543
)
324,152,040

Surrenders and other fund withdrawals
11,128,056,539

211,476,401

(11,495,364,832
)
(155,831,892
)

a. External reinsurance

The Company cedes insurance to unaffiliated insurers in order to limit its maximum losses. Such agreements do not relieve the Company from its primary liability to policyholders. The inability or unwillingness of a reinsurer to meet its financial obligations to us, including the impact of any insolvency or rehabilitation proceedings involving a reinsurer that could affect the Company's access to collateral held in trust, could have a material adverse effect on our financial condition, results of operations and liquidity. The Company reduces this risk by evaluating the financial condition of reinsurers and monitoring for possible concentrations of credit risk. As of December 31, 2015, the Company has one reinsurance-related concentration of credit risk greater than 10% of the Company’s capital and surplus. This concentration, which is actively monitored, is as follows: reserve credits totaling $10.3 billion for Prudential offset by $7.1 billion of market value of assets held in trust, for a net exposure of $3.2 billion. As of December 31, 2014, the Company had one reinsurance-related concentration of credit risk greater than 10% of the Company’s capital and surplus. The concentration, which was actively monitored, was as follows: reserve credits totaling $9.4 billion for Prudential offset by $6.7 billion of market value of assets held in trust, for a net exposure of $2.6 billion.

The Company has a reinsurance agreement under which the reinsurer has a limited right to unilaterally cancel the reinsurance for reasons other than for nonpayment of premium or other similar credits. The estimated amount of aggregate reduction in the Company’s surplus of this limited right to unilaterally cancel this reinsurance agreement by the reinsurer for which cancellation results in a net obligation of the Company to the reinsurer, and for which such obligation is not presently accrued is $135.9 million in 2015, a decrease of $8.8 million from the 2014 balance of $144.7 million. The total amount of reinsurance credits taken for this agreement was $209.0 million in 2015, a decrease of $13.6 million from the 2014 balance of $222.6 million.

On January 2, 2013, The Hartford completed the sale of its Individual Life insurance business to Prudential for consideration consisting primarily of a ceding commission of which $457 million, before tax, was allocated to the Company. The transaction resulted from The Hartford’s strategic business realignment announced in March 2012. The sale was structured as a reinsurance transaction and resulted in a before tax gain of approximately $1.6 billion consisting of a reinsurance gain and investment-related gains, and an estimated increase to surplus of approximately $1.4 billion, before tax. A reinsurance gain of approximately $600 million, before tax, was deferred and will be amortized over 20 years as earnings are estimated to emerge from the business reinsured. Upon closing, the Company reinsured $7.1 billion of policyholder liabilities and $3.8 billion of Separate Account liabilities under an indemnity reinsurance agreement. The Company also transferred invested assets (excluding cash) with a statement value of $5.1 billion to Prudential.




42
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

b. Reinsurance Assumed from Affiliates

On June 30, 2014, HLIC’s parent, HLI, completed the sale of all of the issued and outstanding equity of HLIKK, a Japan affiliate, to ORIX Life Insurance Corporation ("Buyer"), a subsidiary of ORIX Corporation, a Japanese company. Concurrent with the sale, HLIKK recaptured certain risks that had been reinsured to the Company and HLIC by terminating intercompany agreements. As a result, the Company recognized a reduction in surplus of approximately $165 million, including an after-tax loss of approximately $323 million, which includes the impacts of unwinding hedging derivatives related to the recaptured risks.

Upon closing, the Buyer is responsible for all liabilities for the recaptured business. The Company continues to provide reinsurance to the Buyer for approximately $0.9 billion of fixed payout annuities, as of December 31, 2015, related to the “3Win” product formerly written by HLIKK.

Under this agreement, the Buyer continues to cede the following: in-force “3Win” annuities which bundled guaranteed minimum accumulation benefits (“GMAB”), GMIB and GMDB product features and risks. The liability for this assumed reinsurance is presented within Liability for deposit-type contracts on the Statements of Admitted Assets, Liabilities and Capital and Surplus. In connection with this reinsurance agreement, the Company collected immaterial premiums for the years ended December 31, 2015, 2014 and 2013.

The Company entered into a funding agreement with HLIC in 2009 to fund required payouts under this agreement, however the funding agreement was terminated in 2014 as a result of the sale of HLIKK.

Prior to the sale, the Company had the following reinsurance agreements with HLIKK. Under these agreements, HLIKK ceded 100% of its covered risks to the Company. The following list described the reinsurance agreements with HLIKK:

•
The Company assumed GMDB on covered contracts that have an associated GMIB rider in force on or after July 31, 2006, and GMIB riders issued on or after April 1, 2005. In connection with this reinsurance agreement, the Company collected premiums of $0, $(187,673,983) and $89,335,190 for the years ended December 31, 2015, 2014 and 2013, respectively.

•
The Company assumed certain in-force and prospective GMIB and GMDB riders issued on or after February 1, 2008. In connection with this reinsurance agreement, the Company collected immaterial premiums for the years ended December 31, 2015, 2014 and 2013.

•
The Company assumed certain in-force and prospective GMDB riders issued on or after April 1, 2005. In connection with this reinsurance agreement, the Company collected immaterial premiums for the years ended December 31, 2015, 2014 and 2013.

The Company had a modified coinsurance (“Modco”) reinsurance agreement with Hartford Life Limited ("HLL"), an affiliated wholly-owned subsidiary of Hartford Life International, Ltd (“HLIL”) which was novated in 2013. The Company had assumed 100% of the risks associated with GMDB and GMWB riders written by and in-force with HLL as of November 1, 2010. In connection with this agreement as of December 31, 2013, the Company recorded a net (payable)/receivable of $0, and collected premiums of $8,066,899 for the year ended December 31, 2013. The Company sold HLIL on December 12, 2013, and due to the sale of HLIL, the Company novated its Modco reinsurance agreement with HLL. See Note 12.

c. Reinsurance Ceded to Affiliates

In March 2014, the Company received permission from the Department and the Vermont Department of Financial Regulation to terminate the reinsurance agreement with its affiliate White River Life Reinsurance Company ("WRR") effective April 1, 2014. As a result the Company received a return of ceded premium related to Separate Account business totaling $41 billion offset by Modco adjustments of $41 billion; reassumed $281 million in aggregate reserves for annuity contracts; WRR returned the funds withheld totaling $281 million to the Company; and the Company paid a recapture fee of $0 to WRR. In addition, the Company received a capital contribution of $1.022 billion from its parent HLIC in support of the business recaptured.


43
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The Company had a Modco and coinsurance with funds withheld reinsurance agreement (“WRR Agreement”) with WRR, an affiliated captive insurance company unauthorized in the State of Connecticut. The Company ceded to WRR variable annuity contracts, associated riders, and payout annuities written by the Company; annuity contracts and associated riders assumed by the Company under unaffiliated reinsurance agreements; and GMAB, GMIB riders and GMDB risks assumed by the Company from HLIKK. Due to the sale of HLIL, the Company ceased ceding GMDB and GMWB riders assumed by the Company from HLL as of December 1, 2013. See Note 12.

Under Modco, the assets and liabilities, and under coinsurance with funds withheld, the assets, associated with the reinsured business remained on the balance sheet of the Company in segregated portfolios, and WRR received the economic risks and rewards related to the reinsured business through Modco and funds withheld adjustments.

In connection with the WRR Agreement as of December 31, 2014, the Company recorded a receivable of $0 within Amounts recoverable for reinsurance on the Statements of Admitted Assets, Liabilities and Capital and Surplus; a payable of $0, reported within Other liabilities; Funds held under reinsurance treaties with unauthorized reinsurers of $0 and paid premiums of $(41,015,622,260) and $518,156,124, for the years ended December 31, 2014 and 2013, respectively.

Effective November 1, 2007, the Company entered into a Modco and coinsurance with funds withheld reinsurance agreement with Champlain Life Reinsurance Company (“Champlain”), an affiliated captive insurance company unauthorized in the State of Connecticut. Champlain used a third-party letter of credit to back a certain portion of its statutory reserves, and this letter of credit was assigned to the Company in order to provide collateral for the Company to take reinsurance credit under this agreement. The increase in surplus, net of federal income tax, that resulted from the reinsurance agreement on the effective date was $194,430,212. This surplus benefit was amortized into income on a net of tax basis as earnings emerged from the business reinsured, resulting in a net $0 future impact to surplus. This agreement was recaptured in 2013, and the Company reported paid premiums of $(2,768,952,656) for the year ended December 31, 2013.

As a result of the sale of the individual life insurance business to Prudential, the Company simultaneously recaptured the individual life insurance assumed by Champlain. On January 2, 2013, the Company re-assumed all of the life reserves and claims payable totaling $3.0 billion from Champlain; Champlain returned the funds withheld totaling $2.8 billion to the Company; the Company paid a recapture fee of $347 million to Champlain; and, the Company ceded the recaptured reserves to Prudential. The amounts resulting from the transaction with Prudential disclosed above included the release of the Company’s remaining deferred gain of $167 million, deferred at the inception of the reinsurance to Champlain, from restricted surplus.

7. Related Party Transactions

Transactions between the Company and its affiliates, relate principally to tax settlements, reinsurance, insurance coverages, rental and service fees, capital contributions, returns of capital and payments of dividends. Investment management fees are charged by Hartford Investment Management Company and are a component of net investment income. Substantially all general insurance expenses related to the Company, including rent and benefit plan expenses, are initially paid by the affiliate Hartford Fire Insurance Company.

Direct expenses are allocated 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.

At December 31, 2015 and 2014, the Company reported $0 and $25,391,221, respectively, as receivables from and $22,991,721 and $31,185,084, respectively, as payables to parent, subsidiaries, and affiliates. The terms of the written settlement agreements require that these amounts be settled generally within 30 days.

The Company participates in an Intercompany Liquidity Agreement (the “Agreement”) that The Hartford entered into with its insurance company subsidiaries that are domiciled in the State of Connecticut. The Agreement allows for short-term advances of funds between Hartford affiliates for liquidity and other general corporate purposes. The Company had no issued and outstanding notes as of December 31, 2015 and 2014.

On June 29, 2015, The Hartford received permission from the Department to pay extraordinary dividends (as returns of capital) of $500,000,000 from HLAI to HLIC and $500,000,000 from HLIC to HLI. HLAI and HLIC paid these returns of capital on July 15, 2015.


44
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

On January 9, 2015, The Hartford received permission from the Department to pay extraordinary dividends (as returns of capital) of $500,000,000 from HLAI to HLIC and $500,000,000 from HLIC to HLI. HLAI and HLIC paid these returns of capital on January 30, 2015.

On July 8, 2014, The Hartford received permission from the Department to pay extraordinary dividends (as returns of capital) of $500,000,000 from HLAI to HLIC, and $500,000,000 from HLIC to HLI. HLAI and HLIC paid these returns of capital on July 15, 2014.

On January 30, 2014, The Hartford received permission from the Department to pay extraordinary dividends (as returns of capital) of $642,349,730 from HLAI to HLIC and $800,000,000 from HLIC to Hartford Life and Accident Insurance Company (“HLA”). HLAI and HLIC paid these returns of capital on February 27, 2014.

In conjunction with the capitalization of HLA to support the Group Benefits business, on January 30, 2014, The Hartford received permission from the Department to distribute the shares of stock of HLIC from HLA to HLI, as an extraordinary dividend (as a return of capital). This was completed on March 3, 2014.

On February 22, 2013, the Company paid an extraordinary cash return of capital of $1.05 billion to HLIC.

Related party transactions may not be indicative of the costs that would have been incurred on a stand-alone basis. For additional information, see Notes 5, 6, 8 and 11.

8. Retirement Plans, Other Postretirement Benefit Plans and Postemployment Benefits

The Hartford maintains The Hartford Retirement Plan for U.S. employees, a U.S. qualified defined benefit pension plan (the “Plan”), that covers substantially all U.S. employees of the Company hired prior to January 1, 2013. The Hartford also maintains non-qualified pension plans to accrue retirement benefits in excess of Internal Revenue Code limitations. These plans shall be collectively referred to as the “Pension Plans.”

Effective December 31, 2012, The Hartford amended the Plan to freeze participation and benefit accruals. As a result, employees will not accrue further benefits under the Plan, although interest will continue to accrue to existing account balances. Compensation earned by employees up to December 31, 2012 will be used for purposes of calculating benefits under the Plan but there will be no future benefit accruals after that date. Participants as of December 31, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. The freeze also applies to The Hartford Excess Pension Plan II, The Hartford's non-qualified excess benefit plan for certain highly compensated employees, effective December 31, 2012.

For the years ended December 31, 2015, 2014 and 2013, the Company incurred expenses related to the Pension Plans of $4,778,327, $5,780,928 and $5,659,399, respectively, related to the allocation of the net periodic benefit cost, benefit payments and funding to the Pension Plans.

The Hartford also provides certain health care and life insurance benefits for eligible retired employees. The Hartford's contribution for health care benefits will depend upon the retiree's date of retirement and years of service. In addition, the plan has a defined dollar cap for certain retirees which limits average company contributions. The Hartford has prefunded a portion of the health care obligations through a trust fund where such prefunding can be accomplished on a tax effective basis. Effective January 1, 2002, company-subsidized retiree medical, retiree dental and retiree life insurance benefits were eliminated for employees with original hire dates on or after January 1, 2002. As of December 31, 2012, the Hartford’s other postretirement medical, dental and life insurance coverage plans were amended to no longer provide subsidized coverage for current employees who retire on or after January 1, 2014. For the years ended December 31, 2015, 2014 and 2013, the Company incurred immaterial expense/(income) related to the other postretirement benefit plans.

Substantially all U.S. employees are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in common stock of The Hartford or certain other investments. The Company's contributions include a non-elective contribution of 2% of eligible compensation and a dollar-for-dollar matching contribution of up to 6% of eligible compensation contributed by the employee each pay period. Eligible compensation includes overtime and bonuses but is limited to a total of $1,000,000 annually. The expense allocated to the Company for the years ended December 31, 2015 and 2014 were $1,663,096 and $2,334,909, respectively.


45
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The Company participates in postemployment plans sponsored by the Hartford Fire Insurance Company. These plans provide for medical and salary continuance benefits for employees on long-term disability. For the years ended December 31, 2015, 2014 and 2013, (income)/expense allocated to the Company for long-term disability was immaterial. The (income)/expense includes immaterial incurred expenses and immaterial valuation adjustments for the years ended December 31, 2015, 2014 and 2013, respectively.

9. Capital and Surplus and Shareholder Dividend Restrictions

Dividend Restrictions

The maximum amount of dividends which can be paid to shareholders by Connecticut domiciled insurance companies, without prior approval of the Connecticut Insurance Commissioner (the “Commissioner”), is generally restricted to the greater of 10% of surplus as of the preceding December 31st or the net gain from operations after dividends to policyholders, federal income taxes and before realized capital gains or (losses) for the previous year. In addition, if any dividend exceeds the insurer's earned surplus, it requires the prior approval of the Commissioner. Dividends are paid as determined by the Board of Directors in accordance with state statutes and regulations, and are not cumulative. There were no dividends paid in 2015, 2014, and 2013. For returns of capital, see Note 7. With respect to dividends to its parent HLIC, the Company’s dividend limitation under the holding company laws of Connecticut is $412,807,544 in 2016. See Note 13 Subsequent Events.

Unassigned Funds

The portion of unassigned funds reduced by each item below at December 31, was as follows:
 
2015
2014
Unrealized capital losses, gross of tax
$
132,572,545

$
364,226,230

Nonadmitted asset values
682,502,840

651,935,726

Asset valuation reserve
57,553,274

62,391,546


10. Separate Accounts

The Company maintained Separate Account assets totaling $32,190,324,610 and $38,162,711,736 as of December 31, 2015 and 2014, respectively. The Company utilizes Separate Accounts to record and account for assets and liabilities for particular lines of business. For the current reporting year, the Company recorded assets and liabilities for individual variable annuities, variable life and variable universal life product lines in the Separate Accounts.

The Separate Account classifications are supported by state statute and are in accordance with the domiciliary state procedures for approving items within the Separate Accounts. Separate Account assets are segregated from other investments and reported at fair value. Some assets are considered legally insulated whereas others are not legally insulated from the General Account. As of December 31, 2015 and 2014, the Company’s Separate Account statement included legally insulated assets of $32,190,324,610 and $38,162,711,736, respectively.

Separate Account liabilities are determined in accordance with prescribed actuarial methodologies, which approximate the market value less applicable surrender charges. The resulting surplus is recorded in the General Account Statements of Operations as a component of Net transfers from Separate Accounts. The Company’s Separate Accounts are non-guaranteed, wherein the policyholder assumes substantially all the investment risks and rewards. Investment income (including investment gains and losses) and interest credited to policyholders on Separate Account assets are not separately reflected in the Statements of Operations.

Separate Account fees, net of minimum guarantees, were $710,679,585, $813,720,444 and $899,999,354 for the years ended December 31, 2015, 2014 and 2013, respectively, and are recorded as a component of fee income on the Company’s Statements of Operations.


46
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

An analysis of the Separate Accounts as of December 31, 2015 is as follows:
 
Indexed
Nonindexed Guaranteed Less Than or Equal to 4%
Nonindexed Guaranteed More Than 4%
Nonguaranteed Separate Accounts
Total
Premium considerations or deposits for the
 
 
 
 
 
year ended December 31, 2015
$
—

$
—

$
—

$
493,301,666

$
493,301,666

Reserves at year-end:
 
 
 
 
 
For accounts with assets at:
 
 
 
 
 
    Fair value
 
—

—

—

32,053,057,135

32,053,057,135

    Amortized cost
 
—

—

—

—

—

    Total reserves
 
—

—

—

32,053,057,135

32,053,057,135

By withdrawal characteristics:
 
 
 
 
 
    Subject to discretionary withdrawal
—

—

—

—

—

    With market value adjustment
—

—

—

27,421,407,462

27,421,407,462

    At book value without market value adjustment
 
 
 
 
 
           and with surrender charge of 5% or more
—

—

—

—

—

    At fair value
—

—

—

4,280,413,144

4,280,413,144

    At book value without market value adjustment
 
 
 
 
 
           and with surrender charge of less than 5%
—

—

—

—

—

    Subtotal
—

—

—

31,701,820,606

31,701,820,606

    Not subject to discretionary withdrawal
—

—

—

351,236,529

351,236,529

    Total
$
—

$
—

$
—

$
32,053,057,135

$
32,053,057,135


Below is a reconciliation of net transfers from Separate Accounts as of December 31,
 
December 31, 2015
December 31, 2014
December 31, 2013
Transfer to Separate Accounts
$
493,301,666

$
665,027,557

$
914,828,458

Transfer from Separate Accounts
5,673,300,519

8,473,206,078

10,913,496,680

Net Transfer from Separate Accounts
(5,179,998,853
)
(7,808,178,521
)
(9,998,668,222
)
Internal exchanges and other Separate Account activity
(29,214,533
)
(17,801,650)

81,476,262

Transfer from Separate Accounts on the Statements of Operations
$
(5,209,213,386
)
$
(7,825,980,171
)
$
(9,917,191,960
)

11. Commitments and Contingent Liabilities

a. Litigation

The Company is or may become involved in various legal actions, some of which assert claims for substantial amounts. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses and costs of defense, will not be material to the financial condition of the Company.

b. Guaranty Funds

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.

Under insurance guaranty fund laws in each state, the District of Columbia and Puerto Rico, insurers licensed to do business can be assessed by state insurance guaranty associations for certain obligations of insolvent insurance companies to policyholders and claimants. Part of the assessments paid by/refunded to the Company pursuant to these laws may be used as credits for a portion of the associated premium taxes. The Company paid immaterial net guaranty fund assessments in 2015, 2014, and 2013. The Company has a guaranty fund receivable of $3,771,126 and $3,771,126 as of December 31, 2015 and 2014, respectively.


47
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

c. Leases

As discussed in Note 7, transactions with The Hartford include rental facilities and equipment. Rent paid by the Company to The Hartford for its share of space occupied and equipment used by the Company was $6,380,352, $4,789,032 and $608,095 in 2015, 2014, and 2013, respectively. Future minimum rental commitments are immaterial.

The principal executive office of the Company, together with its parent and other life insurance affiliates, is located in Hartford, Connecticut.

d. Tax Matters

The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years prior to 2012. The audit of the years 2007-2011 were concluded in 2015, with no material impact on the Company's financial condition or results of operations. The federal audit of the years 2012 and 2013 began in March 2015 and is expected to be completed in 2016. 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 Company’s unrecognized tax benefits are settled with the parent consistent with the terms of the tax sharing agreement described in Note 5.

The Separate Account dividend received deduction (“DRD”) is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in 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 $87,245,687, $68,270,923 and $80,401,818 related to the Separate Account DRD for the years ended December 31, 2015, 2014, and 2013, respectively.

e. Funding Obligations

At December 31, 2015 and 2014, the Company has outstanding commitments totaling $2,256,000 and $1,772,780, respectively, to fund partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

12. Sales of Affiliates and Discontinued Operations

On December 12, 2013, The Company sold HLIL, a direct wholly-owned subsidiary of the Company, in a cash transaction to Columbia Insurance Company, a Berkshire Hathaway company, for approximately $285 million. At closing, HLIL’s sole asset was its subsidiary, HLL, a Dublin-based company that sold variable annuities in the U.K. from 2005 to 2009. The disposition resulted in a decrease is surplus of approximately $225 million, after tax. As part of the transaction, the Company novated its Modco reinsurance agreement with HLL.


48
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

The amounts related to Discontinued Operations and the effect on the Company’s Balance Sheet and Summary of Operations as of December 31, 2013 are as follows:
(Amounts in millions)
2013
Assets
 
 
a.
Line 5
Cash
$
285

b.
Line 28
Total assets
(400
)
Liabilities, Surplus and Other Funds
 
c.
Line 28
Total liabilities
—

d.
Line 37
Surplus
(225
)
e.
Line 39
Total liabilities and surplus
(225
)
Summary of Operations
 
f.
Line 1
Premiums
—

g.
Line 19
Increase in aggregate reserves for accident & health (current year less prior year)
—

h.
Line 32
Federal and foreign income taxes incurred
—

i.
Line 34
Net realized capital gains (losses)
(434
)
j.
Line 35
Net income
$
(472
)

13. Subsequent Events

The Company has evaluated events subsequent to December 31, 2015, through April 8, 2016, the date the statutory-basis financial statements were available to be issued. The Company has not evaluated subsequent events after that date for presentation in these statutory-basis financial statements.

On January 13, 2016, The Hartford received permission from the Department to pay an extraordinary dividend of $500,000,000 from HLAI to HLIC. HLAI paid this dividend on January 29, 2016.

On March 29, 2016, The Hartford received permission from the Department to change the ownership structure of certain of its affiliates to re-align affiliates more closely with the businesses they support. As a result, effective April 1, 2016, HLAI will sell its subsidiary Hartford Life International Holding Company ("HLIHC") to HLIC, resulting in an immaterial realized loss. In addition, HLIC will contribute its ownership interest in HLAI to HLIHC, and therefore HLIHC will become HLAI's new parent company.

49
 


PART C
OTHER INFORMATION

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a)
 
All financial statements are included in Part A and Part B of the Registration Statement
(b)
(1)
Resolution of the Board of Directors of Hartford Life and Annuity Insurance Company ("Hartford") authorizing the establishment of the Separate Account.(1)
 
(2)
Not applicable.
 
(3)
(a) Principal Underwriter Agreement.(2)
 
(3)
(b) Form of Dealer Agreement.(2)
 
(4)
(a) Form of Individual Flexible Premium Variable Annuity Contract.(1)
 
(4)
(b) Principal First (7)
 
(4)
(c) Optional Death Benefit Enhancement Rider (7)
 
(4)
(d) Amendatory Rider (Annuity Commencement Date Deferral Option)
 
(5)
Form of Application.(1)
 
(6)
(a) Certificate of Incorporation of Hartford.(3)
 
(6)
(b) Amended and Restated Bylaws of Hartford.(6)
 
(7)
Form of Reinsurance Agreement.(4)
 
(8)
Form of Fund Participation Agreement.(5)
 
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel.
 
(10)
Consents of Deloitte & Touche LLP
 
(11)
No financial statements are omitted.
 
(12)
Not applicable.
 
(99)
Copy of Power of Attorney.

(1) Incorporated by reference to Post-Effective Amendment No. 5, to the Registration Statement File No. 33-56790, dated May 1, 1995.

(2) Incorporated by reference to Post-Effective Amendment No. 6, to the Registration Statement File No. 33-56790, dated May 1, 1996.

(3) Incorporated by reference to Post-Effective Amendment No. 7, to the Registration Statement File No. 333-69487, filed on April 9, 2001.

(4) Incorporated by reference to Post-Effective Amendment No. 27, to the Registration Statement File No. 33-73570, filed on April 12, 1999.

(5) Incorporated by reference to Post-Effective Amendment No. 2 to the Registration Statement File No. 333-91921, filed on August 25, 2000.

(6) Incorporated by reference to Post-Effective Amendment No. 7 to the Registration Statement File No. 333-176152, filed on April 25, 2014.

(7) Incorporated by reference to Post-Effective Amendment No. 30 to the Registration Statement File No. 333-69487, filed on April 23, 2012.




ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR


NAME
POSITION
Ellen T. Below
Vice President
John B. Brady
Actuary, Vice President
Michael R. Chesman
Senior Vice President, Director of Taxes
Robert A. Cornell
Actuary, Vice President
Csaba Gabor
Chief Compliance Officer of Separate Accounts
John W. Gallant
Vice President
Michael R. Hazel
Vice President, Controller
Donna R. Jarvis
Actuary, Vice President
Brion S. Johnson
President, Chairman of the Board, Director*
Aidan Kidney
Senior Vice President
Diane Krajewski
Vice President
Lisa S. Levin
Corporate Secretary
Craig D. Morrow
Appointed Actuary, Vice President
Matthew J. Poznar
Senior Vice President, Director*
Robert W. Paiano
Treasurer, Senior Vice President, Director*
Lisa M. Proch
Chief Compliance Officer of Talcott Resolution, Vice President, Assistant General Counsel
David G. Robinson
Executive Vice President, General Counsel
Peter F. Sannizzaro
Senior Vice President, Chief Accounting Officer, Chief Financial Officer
Robert Siracusa
Vice President





















Unless otherwise indicated, the principal business address of each of the above individuals is One Hartford Plaza, Hartford, CT 06155.

* Denotes Board of Directors.







ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT.

Incorporated by reference to Post-Effective Amendment No. 10 to the Registration Statement File No. 333-176150, filed on April 21, 2016.
 
ITEM 27. NUMBER OF CONTRACT OWNERS

As of February 29, 2016, there were 183,668 Contract Owners.

ITEM 28. INDEMNIFICATION

Section 33-776 of the Connecticut General Statutes states that: "a corporation may provide indemnification of, or advance expenses to, a director, officer, employee or agent only as permitted by sections 33-770 to 33-779, inclusive."

Provision is made that the Corporation, to the fullest extent permissible by applicable law as then in effect, shall indemnify any individual who is
a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, and whether formal or informal (each, a "Proceeding") because such individual is or was (i) a Director, or (ii) an officer or employee of the Corporation (for purposes of the by laws, each an "Officer"), against obligations to pay judgments, settlements, penalties, fines or reasonable expenses (including counsel fees) incurred in a Proceeding if such Director or Officer: (l)(A) conducted him or herself in good faith; (B) reasonably believed (i) in the case of conduct in such person's official capacity, which shall include service at the request of the Corporation as a director, officer or fiduciary of a Covered Entity (as defined below), that his or her conduct was in the best interests of the Corporation; and (ii) in all other cases, that his or her conduct was at least not opposed to the best interests of the Corporation; and (C) in the case of any criminal proceeding, such person had no reasonable cause to believe his or her conduct was unlawful; or (2) engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of the Corporation's Certificate, in each case, as determined in accordance with the procedures set forth in the by laws. For purposes of the by laws, a "Covered Entity" shall mean another corporation, partnership, joint venture, trust or other enterprise (including, without limitation, any employee benefit plan) in respect of which such person is serving at the request of the Corporation as a director, officer or fiduciary.

Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

ITEM 29. PRINCIPAL UNDERWRITERS

(a) HSD acts as principal underwriter for the following investment companies:

Hartford Life Insurance Company - Separate Account One
Hartford Life Insurance Company - Separate Account Two
Hartford Life Insurance Company - Separate Account Two (DC Variable Account I)
Hartford Life Insurance Company - Separate Account Two (DC Variable Account II)
Hartford Life Insurance Company - Separate Account Two (QP Variable Account)
Hartford Life Insurance Company - Separate Account Two (Variable Account "A")
Hartford Life Insurance Company - Separate Account Two (NQ Variable Account)
Hartford Life Insurance Company - Separate Account Ten
Hartford Life Insurance Company - Separate Account Three
Hartford Life Insurance Company - Separate Account Five
Hartford Life Insurance Company - Separate Account Seven
Hartford Life Insurance Company - Separate Account Eleven
Hartford Life Insurance Company - Separate Account Twelve
Hartford Life and Annuity Insurance Company - Separate Account One
Hartford Life and Annuity Insurance Company - Separate Account Ten
Hartford Life and Annuity Insurance Company - Separate Account Three
Hartford Life and Annuity Insurance Company - Separate Account Five
Hartford Life and Annuity Insurance Company - Separate Account Six
Hartford Life and Annuity Insurance Company - Separate Account Seven













(b) Directors and Officers of HSD

Name
Positions and Offices with Underwriter
Diana Benken
Chief Financial Officer, Controller/FINOP
Christopher S. Conner (1)
AML Compliance Officer, Chief Compliance Officer, Privacy Officer, Secretary
Christopher J. Dagnault (2)
President, Chief Executive Officer, Director
Aidan Kidney
Chairman of the Board, Director
Kathleen E. Jorens
Vice President, Assistant Treasurer
Robert W. Paiano
Senior Vice President, Treasurer
Michael Chesman
Senior Vice President, Director of Taxes
Andrew Diaz-Matos
Vice President
Donald C. Hunt
Vice President
Mark M. Sosha
Vice President
Diane Krajewski
Director






Unless otherwise indicated, the principal business address of each of the above individuals is One Hartford Plaza, Hartford, CT 06155.

(1) Address: 1500 Liberty Ridge Dr., Wayne, PA 19087
(2) Address: 500 Bielenberg Drive, Woodbury, MN 55125


ITEM 30. LOCATION OF ACCOUNTS AND RECORDS

All of the accounts, books, records or other documents required to be kept by Section 31(a) of the Investment Company Act of 1940 and rules thereunder are maintained by Hartford at One Hartford Plaza, Hartford, CT 06155.


ITEM 31. MANAGEMENT SERVICES

All management contracts are discussed in Part A and Part B of this Registration Statement.

ITEM 32. UNDERTAKINGS

(a) The Registrant hereby undertakes to file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old so long as payments under the variable annuity Contracts may be accepted.

(b) The Registrant hereby undertakes to include either (1) as part of any application to purchase a Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.

(c) The Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request.

(d) Hartford hereby represents that the aggregate fees and charges under the Contract are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Hartford.

The Registrant is relying on the no-action letter issued by the Division of Investment Management to American Counsel of Life Insurance, Ref. No. IP-6-88, November 28, 1988. Registrant has complied with conditions one through four of the no-action letter.





SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf, in the Town of Hartford, and State of Connecticut on April 21, 2016.

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE (Registrant)

By:
Brion S. Johnson*
*By:
/s/ Lisa Proch

Brion S. Johnson

Lisa Proch

President, Chief Executive Officer,

Attorney-in-Fact

Chairman of the Board




HARTFORD LIFE AND ANNUITY
INSURANCE COMPANY
(Depositor)

By:
Brion S. Johnson*

Brion S. Johnson

President, Chief Executive Officer,

Chairman of the Board


Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons and in the capacities and on the dates indicated.

Brion S. Johnson, President, Chief Executive Officer,


Chairman of the Board, Director*


Matther J. Poznar, Senior Vice President, Director*
*By:
/s/ Lisa Proch
Robert W. Paiano, Senior Vice President, Treasurer, Director*

Lisa Proch
Peter F. Sannizzaro, Senior Vice President, Chief Accounting Officer,

Attorney-in-Fact
Chief Financial Officer
Date:
April 21, 2016







 
EXHIBIT INDEX
(4)(d)
Amendatory Rider (Annuity Commencement Date Deferral Option)
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel
(10)
Consent of Deloitte and Touche, LLP
(99)
Power of Attorney