The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — Smith Barney Variable Annuity Guaranteed Living Benefits Seminar (September 2003)
11 slides from The Hartford Insurance's conference presentation, Sep 11, 2003
Slide 1: Smith Barney's Variable Annuity Guaranteed Living Benefits Seminar
T H E H A R T F O R D Smith Barney’s Variable Annuity Guaranteed Living Benefits Seminar September 11, 2003
Slide 2: Principal First - Overview
Principal First - Overview • What Is It • How it Works • The Opportunity • Risk Control
Slide 3: Principal First: What Is It
Principal First : What Is It • Optional rider to variable annuity contract which guarantees principal provided client withdraws 7% of premium or less annually • Step-up feature is available after 5 years, multiple step-ups are permissible • Investment flexibility • Cost is 35 bps
Slide 4: Principal First: How It Works
Principal First : How It Works Think of the Benefit Payment as a “Speed Limit” Î Abide by the speed limit, your benefit amount is guaranteed
Slide 5: Principal First: The Basics
Principal First : The Basics Assumes $100,000 initial investment into the S&P 500 on 1/1/2000. Assumes actual performance 2000-2002 and flat thereafter with a $7,000 Benefit Payment annually. End of Contract Benefit Payment Remaining Year Value (Maximum – 7%) Contract Value Benefit Amount Initial $1
Slide 6: Principal First: How It Works
Principal First : How It Works Every 5 years, you can re-fuel Step-up Feature: • Available after 5th Anniversary, upon owner’s election • New 5 year waiting period begins after Step-up • Unlimited Step-ups are available
Slide 7: Principal First: Upside Potential
Principal First : Upside Potential Assumes $100,000 initial investment into Hartford Advisers HLS Fund investment option on 3/31/83 with a $5,000 Benefit Payment and a step-up every 5th anniversary. Performance is net of total fund operating expenses, a 1.15% M&E Risk Charge, and a 0.35% charge for
Slide 8: The Opportunity: Current Population
Principal First : The Opportunity Accumulation Asset Protection/Income 25 Current Population 20 (millions) 15 10 5 0 Age 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ Source: National Underwriter
Slide 9: Hartford Life - Variable Annuity Sales
Hartford Life - Variable Annuity Sales Total VA Sales VA Market Share* ($Mil) $5,000 15.00% 13.21% $4,234 11.95% 11.80% $4,000 $3,492 $3,446 8.64% 10.00% 8.40% 8.11% $3,000 $2,407 $2,178 $2,139 $2,000 5.00% $1,000 $0 0.00% 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 Direc
Slide 10: Principal First: Risk Control
Principal First : Risk Control Principal First Non-Principal First Stocks 76% Asset Mix* 74% Bonds 17% 12% MM 3% 3% Fixed Acct. 4% 11% 60 Age of Annuitant** 58 $69 K Average Ticket** $59 K 58% % IRA** 43% *Based on 6/30/03 Assets **Based on YTD 6/03 Sales
Slide 11: Principal First: Risk Control
Principal First : Risk Control • Reinsurance • Hedging • Product Design