Question-and-Answer Session
Operator
(Operator Instructions)
Your first question will come from the line of Dan Arita with Deutsche Bank.
Darin Arita - Deutsche Bank
Hi, good morning. I was hoping if we could talk first a little bit about variable annuity GMWB reinsurance capacity. It seems like Hartford was able to use some reinsurance again. Can you talk about the reinsurance market's appetite for the GMWBs?
Tom Marra
Good morning, Darin. It is Tom. We are very pleased to be able to execute this reinsurance trade just recently. As you know, it is not been a wide open field and my guess is going forward it will be available although not abundant would be the way I would put it maybe ask John or Liz if they want to add to that.
Liz Zlatkus
Yes, I would say the reinsurance market hasn't changed that much, Darin, but we are pleased that we executed both this reinsurance treaty as well as the other treaties that we have transacted over the years. And so, as you can see in the Q, we have over 57% of the variable annuity GMWB book basically protected by either reinsurance or long dated customized derivatives.
So, we feel really good about having that much of our book locked in and protected over the length and duration of the products. But I wouldn't say that the market has changed much, but we certainly take the opportunity to secure reinsurance when it makes sense.
Darin Arita - Deutsche Bank
Okay, that is helpful. And then just in terms of thinking about the capital margin, it sounds like it is still at $1.5 billion. Can you help me think about how the decline in the equity market has affected your capital position? I recall you had a slide in our previous Investor Day where a 15% drop in the equity market lead to a $500 million reduction in capital. Now the equity markets are off more than 15% within a 12-month period, and so is that the same, has that had the same effect on your capital position?
Liz Zlatkus
Darin, it is Liz again. First of all, yes, the markets obviously through June, S&P was down about 13%. And as I spoke about, 1200 S&P level, that would be down about 18% from year-end. So, all of that impact that we talked about in terms of the impact on our statutory capital and markets go down is assumed in our capital planning and when we stress test, we are always looking at various market scenarios. So, that $1.5 billion capital margin we would expect at 1200 would include the impacts of the market decline.
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