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Pricing Term Sheet
  Free Writing Prospectus
dated as of March 17, 2010
  Filed pursuant to Rule 433
as amended on March 18, 2010
  Relating to the
 
  Preliminary Prospectus Supplements each dated March 16, 2010 to the
 
  Prospectus dated April 11, 2007
 
  File No. 333-142044
The Hartford Financial Services Group, Inc.
Concurrent Offerings of
52,252,252 Shares of Common Stock, par value $0.01 per Share
(the “common stock offering”)
and
20,000,000 Depositary Shares
Each Representing a 1/40
th Interest in a Share of
7.25% Mandatory Convertible Preferred Stock, Series F
(the “depositary shares offering”)
The information in this pricing term sheet relates only to the common stock offering and the depositary shares offering and should be read together with (i) the preliminary prospectus supplement dated March 16, 2010 relating to the common stock offering (the “common stock preliminary prospectus supplement”, including the documents incorporated by reference therein, (ii) the preliminary prospectus supplement dated March 16, 2010 relating to the depositary shares offering (the “depositary shares preliminary prospectus supplement”), including the documents incorporated by reference therein and (iii) the related base prospectus dated April 11, 2007, each filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, Registration Statement No. 333-142044. Neither the common stock offering nor the depositary shares offering is contingent on the successful completion of the other offering. Terms not defined in this pricing term sheet have the meanings given to such terms in the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as applicable.
     
Issuer:
  The Hartford Financial Services Group, Inc.
 
   
Ticker / Exchange for common stock:
  HIG / The New York Stock Exchange (“NYSE”)
 
   
Trade date:
  March 18, 2010.
 
   
Settlement date:
  March 23, 2010 (T + 3).
 
   
 
  Common Stock Offering
 
   
Common stock offered:
  52,252,252 shares of the Issuer’s common stock, par value $0.01 per share (the “common stock”)
 
   
Option for underwriters to purchase additional shares of common stock:
  7,837,837 additional shares
 
   
Last reported sale price of common stock on NYSE on March 17, 2010:
  $28.58 per share of common stock
 
   
Public offering price:
  $27.75 per share / $1,450 million total, subject to the underwriters’ option to purchase additional shares.

 


 

     
Underwriting discount:
  $0.888 per share / $46.4 million total, subject to the underwriters’ option to purchase additional shares.
 
   
Proceeds, before expenses, to the Issuer:
  $26.862 per share / $1,403.6 million total, subject to the underwriters’ option to purchase additional shares.
 
   
Common stock to be outstanding after the depositary shares offering and the common stock offering:
  436,380,790 shares (based on the number of shares of the common stock outstanding as of February 15, 2010, and excluding, among other things, shares reserved for issuance under certain compensation plans and certain outstanding contracts, and including the 52,252,252 shares offered in the common stock offering, assuming no exercise of the underwriters’ option to purchase additional shares in the common stock offering). See “Capitalization” in the common stock preliminary prospectus supplement.
 
   
Joint Book-Running Managers:
  Goldman, Sachs & Co. and J.P. Morgan
 
   
Joint Lead Managers:
  Citi and Wells Fargo Securities
 
   
Senior Co-Managers:
  BofA Merrill Lynch; Credit Suisse and Morgan Stanley
 
   
Junior Co-Managers:
  Barclays Capital; BNY Mellon Capital Markets, LLC; Deutsche Bank Securities; Piper Jaffray & Co.; SunTrust Robinson Humphrey and UBS Investment Bank
 
   
CUSIP / ISIN:
  416515104 / US4165151048
 
   
Additional document incorporated by
reference:
  Current Report on Form 8-K dated March 17, 2010.
 
   
 
  Depositary Shares Offering
 
   
Depositary shares offered:
  20,000,000 depositary shares, each of which represents a 1/40th interest in a share of the Issuer’s 7.25% Mandatory Convertible Preferred Stock, Series F (“mandatory convertible preferred stock”). At the consummation of the depositary shares offering, the Issuer will issue 500,000 shares of mandatory convertible preferred stock, subject to the underwriters’ option to purchase additional depositary shares.
 
   
Option for underwriters to purchase additional depositary shares:
  3,000,000 additional depositary shares (corresponding to 75,000 additional shares of the mandatory convertible preferred stock).
 
   
Public offering price:
  $25 per depositary share / $500,000,000 million total, subject to the underwriters’ option to purchase additional depositary shares.
 
   
Underwriting discount:
  $0.75 per depositary share / $15 million total, subject to the underwriters’ option to purchase additional depositary shares.
 
   
Proceeds, before expenses, to the Issuer:
  $24.25 per depositary share / $485,000,000 million total, subject to the underwriters’ option to purchase additional depositary shares.
 
   
Dividends:
  7.25% on the liquidation amount of $1,000 for each share of mandatory convertible preferred stock per year (equivalent to $72.50 per annum per share of mandatory convertible preferred stock, corresponding to

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  $1.8125 per annum per depositary share). The dividend payable on the first dividend payment date, if declared, is expected to be $19.7361 per share of mandatory convertible preferred stock and on each subsequent dividend payment date, if declared, is expected to be $18.1250 per share of mandatory convertible preferred stock (equivalent to $0.4934 and $0.4531, respectively, per depositary share).
 
   
 
  On the final dividend payment date or any earlier conversion date, the Issuer may pay dividends in cash, shares of the common stock or a combination thereof, at its election and subject to the share cap. The “share cap” is an amount per share equal to the product of (i) 2 and (ii) the maximum conversion rate, subject to adjustment as described in the depositary shares preliminary prospectus supplement. If the Issuer elects not to pay any dividends prior to the mandatory conversion date, and to pay accrued and unpaid dividends on the mandatory conversion date solely in shares of the common stock, and if the average VWAP of the common stock for the relevant measurement period is less than $6.27, the shares of the common stock that a holder of depositary shares will receive will have a value that is less than the amount of such accrued and unpaid dividends.
 
   
Dividend payment dates:
  If declared, January 1, April 1, July 1 and October 1 of each year, commencing on July 1, 2010 and ending on April 1, 2013.
 
   
Mandatory conversion date:
  April 1, 2013.
 
   
Initial price:
  $27.75.
 
   
Threshold appreciation price:
  $33.857, which represents an appreciation of approximately 22% over the initial price.
 
   
Conversion rate per share of mandatory convertible preferred stock:
  The conversion rate for each share of mandatory convertible preferred stock will not be more than 36.036 shares of the common stock and not less than 29.536 shares of the common stock (respectively, the “maximum conversion rate” and “minimum conversion rate”) (and, correspondingly, the conversion rate for each depositary share will not be more than 0.9009 shares of the common stock and not less than 0.7384 shares of the common stock).
 
   
 
  The following table illustrates the conversion rate per share of the mandatory convertible preferred stock, subject to adjustment as described in the depositary shares preliminary prospectus supplement, based on the applicable market value of the common stock on the mandatory conversion date:
     
Applicable Market Value on the
Mandatory Conversion Date
  Conversion Rate per Share of Mandatory Convertible Preferred Stock
 
   
Less than or equal to $27.75

Greater than $27.75 and less than $33.857
  36.036 shares of common stock

$1,000, divided by the applicable market value
 
   
Equal to or greater than the threshold appreciation price, or $33.857
  29.536 shares of common stock

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  If the applicable market value of the common stock exceeds the threshold appreciation price, the value of the common stock received by the holder of a depositary share upon conversion will be approximately 81.96% of the value of the common stock that could be purchased with $25 in the concurrent common stock offering.
 
   
 
  The following table illustrates the conversion rate per depositary share, subject to adjustment as described in the depositary shares preliminary prospectus supplement, based on the applicable market value of the common stock on the mandatory conversion date:
     
Applicable Market Value on the
Mandatory Conversion Date
  Conversion Rate per Depositary Share
 
   
Less than or equal to $27.75
  0.9009 shares of common stock
 
   
Greater than $27.75 and less than $33.857
  $25, divided by the applicable market value
 
   
Equal to or greater than the threshold appreciation price, or $33.857
  0.7384 shares of common stock
     
Optional conversion:
  At any time prior to March 15, 2013, other than during the fundamental change conversion period, a holder of mandatory convertible preferred stock may elect to convert such holder’s shares of mandatory convertible preferred stock at the minimum conversion rate of 29.536 shares of the common stock per share of mandatory convertible preferred stock (equivalent to 0.7384 shares of the common stock per depositary share), subject to adjustment as described in the depositary shares preliminary prospectus supplement. Because each depositary share represents a 1/40th fractional interest in a share of mandatory convertible preferred stock, a holder of depositary shares may only convert its depositary shares in lots of 40 depositary shares.
 
   
Common stock to be outstanding after the depositary shares offering and the common stock offering:
  436,380,790 shares (based on the number of shares of the common stock outstanding as of February 15, 2010, and excluding, among other things, shares reserved for issuance under certain compensation plans and certain outstanding contracts, and including the 52,252,252 shares offered in the common stock offering, assuming no exercise of the underwriters’ option to purchase additional shares in the common stock offering). See “Capitalization” in the depositary shares preliminary prospectus supplement.
 
   
Fundamental change:
  The following table sets forth the fundamental change conversion rate per share of mandatory convertible preferred stock based on the effective date of the fundamental change and the stock price in the fundamental change:

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Stock Price on Effective Date
Effective Date   $5.00   $10.00   $15.00   $20.00   $25.00   $27.75   $30.00   $33.86   $35.00   $40.00   $50.00   $60.00   $75.00   $100.00
March 23, 2010
    71.178       52.425       44.724       40.098       37.146       36.036       35.257       34.278       34.046       33.257       32.359       31.883       31.458       31.016  
July 1, 2010
    68.559       51.306       44.144       39.714       36.829       35.706       34.972       34.012       33.786       33.023       32.173       31.732       31.338       30.923  
October 1, 2010
    65.841       50.117       43.520       39.304       36.492       35.388       34.667       33.727       33.508       32.772       31.972       31.568       31.208       30.820  
January 1, 2011
    63.075       48.899       42.895       38.907       36.165       35.077       34.366       33.443       33.228       32.518       31.768       31.400       31.073       30.713  
April 1, 2011
    60.252       47.638       42.258       38.516       35.844       34.768       34.064       33.154       32.944       32.257       31.557       31.227       30.931       30.600  
July 1, 2011
    57.387       46.344       41.621       38.151       35.545       34.476       33.773       32.868       32.661       31.994       31.343       31.050       30.785       30.483  
October 1, 2011
    54.479       45.011       40.980       37.817       35.278       34.205       33.495       32.586       32.380       31.727       31.125       30.868       30.633       30.361  
January 1, 2012
    51.524       43.630       40.323       37.518       35.049       33.961       33.234       32.305       32.097       31.453       30.900       30.679       30.472       30.233  
April 1, 2012
    48.520       42.195       39.630       37.255       34.872       33.754       32.994       32.023       31.809       31.165       30.663       30.479       30.302       30.100  
July 1, 2012
    45.469       40.710       38.883       37.037       34.783       33.611       32.791       31.740       31.512       30.855       30.411       30.265       30.121       29.963  
October 1, 2012
    42.373       39.182       38.047       36.864       34.856       33.597       32.661       31.445       31.189       30.504       30.140       30.035       29.930       29.822  
January 1, 2013
    39.230       37.622       37.083       36.642       35.239       33.878       32.687       31.074       30.757       30.054       29.843       29.789       29.734       29.679  
April 1, 2013
    36.036       36.036       36.036       36.036       36.036       36.036       33.333       29.536       29.536       29.536       29.536       29.536       29.536       29.536  
The exact stock price and effective date may not be set forth on the table, in which case:
    if the stock price is between two stock price amounts on the table or the effective date is between two dates on the table, the fundamental change conversion rate will be determined by straight-line interpolation between the fundamental change conversion rates set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year;
 
    if the stock price is in excess of $100.00 per share (subject to adjustment as described in the depositary shares preliminary prospectus supplement), then the fundamental change conversion rate will be the minimum conversion rate, subject to adjustment as described in the depositary shares preliminary prospectus supplement; and
 
    if the stock price is less than $5.00 per share (subject to adjustment as described in the depositary shares preliminary prospectus supplement) (the “minimum stock price”), then the fundamental change conversion rate will be determined (a) as if the stock price equaled the minimum stock price and (b) if the effective date is between two dates on the table, using straight-line interpolation, as described in the depositary shares preliminary prospectus supplement, subject to adjustment.
The following table sets forth the fundamental change conversion rate per depositary share based on the effective date of the fundamental change and the stock price in the fundamental change:
                                                                                                                 
Stock Price on Effective Date
Effective Date   $5.00   $10.00   $15.00   $20.00   $25.00   $27.75   $30.00   $33.86   $35.00   $40.00   $50.00   $60.00   $75.00   $100.00
March 23, 2010
    1.7794       1.3106       1.1181       1.0025       0.9286       0.9009       0.8814       0.8569       0.8511       0.8314       0.8090       0.7971       0.7864       0.7754  
July 1, 2010
    1.7140       1.2826       1.1036       0.9929       0.9207       0.8926       0.8743       0.8503       0.8446       0.8256       0.8043       0.7933       0.7835       0.7731  
October 1, 2010
    1.6460       1.2529       1.0880       0.9826       0.9123       0.8847       0.8667       0.8432       0.8377       0.8193       0.7993       0.7892       0.7802       0.7705  
January 1, 2011
    1.5769       1.2225       1.0724       0.9727       0.9041       0.8769       0.8591       0.8361       0.8307       0.8129       0.7942       0.7850       0.7768       0.7678  
April 1, 2011
    1.5063       1.1910       1.0564       0.9629       0.8961       0.8692       0.8516       0.8288       0.8236       0.8064       0.7889       0.7807       0.7733       0.7650  
July 1, 2011
    1.4347       1.1586       1.0405       0.9538       0.8886       0.8619       0.8443       0.8217       0.8165       0.7998       0.7836       0.7762       0.7696       0.7621  
October 1, 2011
    1.3620       1.1253       1.0245       0.9454       0.8820       0.8551       0.8374       0.8146       0.8095       0.7932       0.7781       0.7717       0.7658       0.7590  
January 1, 2012
    1.2881       1.0908       1.0081       0.9380       0.8762       0.8490       0.8309       0.8076       0.8024       0.7863       0.7725       0.7670       0.7618       0.7558  
April 1, 2012
    1.2130       1.0549       0.9907       0.9314       0.8718       0.8438       0.8248       0.8006       0.7952       0.7791       0.7666       0.7620       0.7575       0.7525  
July 1, 2012
    1.1367       1.0177       0.9721       0.9259       0.8696       0.8403       0.8198       0.7935       0.7878       0.7714       0.7603       0.7566       0.7530       0.7491  
October 1, 2012
    1.0593       0.9795       0.9512       0.9216       0.8714       0.8399       0.8165       0.7861       0.7797       0.7626       0.7535       0.7509       0.7483       0.7456  
January 1, 2013
    0.9807       0.9405       0.9271       0.9161       0.8810       0.8469       0.8172       0.7768       0.7689       0.7514       0.7461       0.7447       0.7433       0.7420  
April 1, 2013
    0.9009       0.9009       0.9009       0.9009       0.9009       0.9009       0.8333       0.7384       0.7384       0.7384       0.7384       0.7384       0.7384       0.7384  

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  Because each depositary share represents a 1/40th fractional interest in a share of mandatory convertible preferred stock, a holder of depositary shares may only convert its depositary shares upon the occurrence of a fundamental change in lots of 40 depositary shares.
 
   
Joint Book-Running Managers:
  Goldman, Sachs & Co. and J.P. Morgan
 
   
Joint Lead Managers:
  BofA Merrill Lynch and Morgan Stanley
 
   
Senior Co-Managers:
  Citi; Credit Suisse and Wells Fargo Securities
 
   
Junior Co-Managers:
  BB&T Capital Markets; BNY Mellon Capital Markets, LLC; Deutsche Bank Securities; RBS; UBS Investment Bank and U.S. Bancorp Investments, Inc.
 
   
Listing:
  The Issuer will apply to list the depositary shares on the New York Stock Exchange, and expects trading on the New York Stock Exchange to begin within 30 days of the initial issuance of the depositary shares.
 
   
CUSIP / ISIN:
  416515708 / US4165157086
 
   
Rating:
  Standard & Poor’s: BB
 
   
 
  The security rating above is not a recommendation to buy, sell or hold the securities offered hereby. The rating is subject to revision or withdrawal at any time by Standard & Poor’s. The security rating above should be evaluated independently of any other security rating.
 
   
Additional document
incorporated by reference:
  Current Report on Form 8-K dated March 17, 2010.
 
The Issuer has filed a registration statement (including a prospectus and related preliminary prospectus supplements for the offerings) with the U.S. Securities and Exchange Commission (the “SEC”) for the offerings to which this communication relates. Before you invest, you should read the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, the accompanying prospectus in that registration statement and the other documents the Issuer has filed with the SEC for more complete information about the Issuer and the offering. You may get these documents for free by visiting EDGAR on the SEC’s website at http://www.sec.gov. Alternatively, copies may be obtained from sales representatives of Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, New York 10004, telephone (212) 902-1171 or toll-free (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; and J.P. Morgan Securities Inc., National Statement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245; telephone: (718) 242-8002.
This communication should be read in conjunction with the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, and the accompanying prospectus. The information in this communication supersedes the information in the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, and the accompanying prospectus to the extent it is inconsistent with the information in such preliminary prospectus supplement or the accompanying prospectus.

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