0000874766false00008747662021-07-282021-07-280000874766us-gaap:CommonStockMember2021-07-282021-07-280000874766us-gaap:DeferrableNotesMember2021-07-282021-07-280000874766us-gaap:JuniorSubordinatedDebtMember2021-07-282021-07-280000874766us-gaap:NoncumulativePreferredStockMember2021-07-282021-07-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2021

 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Delaware			001-13958						13-3317783
(State or Other Jurisdiction of Incorporation)			(Commission File Number)						(IRS Employer Identification No.)

The Hartford Financial Services Group, Inc.

One Hartford Plaza, Hartford, Connecticut 06155

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (860) 547-5000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $0.01 per share			HIG			The New York Stock Exchange
6.10% Notes due October 1, 2041			HIG 41			The New York Stock Exchange
7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042			HGH			The New York Stock Exchange
Depositary Shares, Each Representing a 1/1,00th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share			HIG PR G			The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

Item 2.02			Results of Operations and Financial Condition

On July 28, 2021, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended June 30, 2021, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarterly period ended June 30, 2021. Copies of the press release and the IFS are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01			Financial Statements and Exhibits

Exhibit No.
99.1			Press Release of The Hartford Financial Services Group, Inc. dated July 28, 2021
99.2			Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended June 30, 2021
101			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104			The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.

---

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:			July 28, 2021			By:			/s/ Scott R. Lewis
						Name:			Scott R. Lewis
						Title:			Senior Vice President and Controller

    

NEWS RELEASE

The Hartford Announces Second Quarter 2021 Financial Results

•Second quarter 2021 net income available to common stockholders of $900 million ($2.51 per diluted share) increased 94% from second quarter 2020, and core earnings* of $836 million (core earnings per diluted share* of $2.33) were up 91% from second quarter 2020

•Net income ROE for the trailing 12-month period ended June 30, 2021, was 12.3% and core earnings ROE* for the same period was 13.1%

•Net investment income of $581 million, before tax, increased 71% from second quarter 2020. Results benefited from $191 million, before tax, or a 33% annualized return, on limited partnerships and alternative investments

•Commercial Lines written premiums of $2.5 billion were 15% higher than second quarter 2020 with increases in all three businesses. Standard Commercial new business premiums increased 46%

•Commercial Lines combined ratio of 88.9 in second quarter 2021 with an underlying combined ratio* of 89.4, a 13.5 point improvement from 102.9 in second quarter 2020, and a 3.7 point improvement when excluding COVID-19 losses in both periods

•Group Benefits net income margin was 10.7% while the core earnings margin* was 9.5%; both the net income margin and core earnings margin included approximately 1 point of excess mortality and COVID-19 related short-term disability impacts

•During the quarter, The Hartford returned $694 million to shareholders, including $568 million of shares repurchased and $126 million in common dividends paid. Share repurchases from July 1 to July 27, 2021 totaled $116 million

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures

** All amounts and percentages set forth in this press release are approximate unless otherwise noted.

HARTFORD, Conn., July 28, 2021 – The Hartford (NYSE: HIG) today announced financial results for the second quarter ended June 30, 2021. In the quarter, The Hartford earned $900 million in net income available to common shareholders, or $2.51 per diluted share, and core earnings* of $836 million, or $2.33 per diluted share. Reported results included catastrophe (CAT) losses of $128 million, before tax, Property & Casualty (P&C) favorable prior accident

1

---

year reserve development (PYD) of $149 million, before tax, and COVID-19 related excess mortality losses in Group Benefits of $25 million, before tax.

Improving operating efficiencies and a lower expense ratio from Hartford Next, the company’s cost transformation program, have contributed to margin expansion. The program delivered $195 million in pre-tax expense savings in the six months ended June 30, 2021 compared to the six month period in 2019. We continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.

"Our performance was outstanding with all businesses and investment returns contributing to very strong second quarter results that generated a 13.1 percent core earnings ROE. As we continue to execute with confidence and precision, our product breadth, underwriting capabilities, and customer experience will differentiate the competitive advantages we bring to the market," said Chairman and CEO Christopher Swift.

The Hartford's President Doug Elliot said, "Property and Casualty had simply a superb quarter, with robust top line growth, especially new business sales, and excellent underwriting results. New business was terrific across Commercial Lines. Continued underwriting discipline combined with consistent pricing and risk selection contributed to a superior underlying combined ratio of 89.2 percent. In Personal Lines, the launch of Prevail, our new home and auto product, provides optimism that this cloud based, contemporary design will meaningfully impact written premium levels and margins. We have never been stronger and I'm confident in our future success".

Swift continued, "All the components of our strategy have come together as we deliver on growth, underwriting margin expansion and operating efficiencies to generate industry leading returns and enhance value for all stakeholders".

CONSOLIDATED RESULTS:

			Three Months Ended
($ in millions except per share data)			Jun 30 2021			Jun 30 2020			Change
Net income available to common stockholders			$900			$463			94%
Net income available to common stockholders per diluted share1			$2.51			$1.29			95%
Core earnings2			$836			$438			91%
Core earnings per diluted share2			$2.33			$1.22			91%
Book value per diluted share			$50.62			$46.59			9%
Book value per diluted share (ex. AOCI)2			$49.01			$45.25			8%
Net income available to common stockholders' return on equity (ROE)3, last 12-months			12.3%			11.3%			1.0
Core earnings ROE2,3, last 12-months			13.1%			12.7%			0.4

[1] Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends

[2] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures

[3] Return on equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is stockholders’ equity including AOCI; for core earnings ROE, the denominator is stockholders’ equity excluding AOCI

The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as "NM" or not meaningful

2

---

Second quarter 2021 net income available to common stockholders was $900 million, or $2.51 per diluted share, up $437 million, or 94% from second quarter 2020, primarily due to a $266 million, before tax, increase in P&C underwriting gain*, a $242 million, before tax, increase in net investment income, a $38 million, before tax, increase in net realized capital gains, and higher earnings from Hartford Funds, partially offset by a decrease in income from the company's retained interest in Talcott Resolution and, within Group Benefits, a higher group disability loss ratio that was largely offset by lower excess mortality losses.

Second quarter 2021 core earnings were $836 million, or $2.33 per diluted share, increasing 91% from second quarter 2020.The increase was primarily due to:

•An increase in net investment income to $581 million, before tax, from $339 million in second quarter 2020 with the increase primarily driven by a change from $71 million of losses on limited partnerships and alternative investments (LPs) in second quarter 2020 to $191 million of income on LPs in second quarter 2021 due to higher valuations and sales of underlying investments within private equity funds

•P&C COVID-19 incurred losses of $3 million, before tax, in second quarter 2021, compared with $213 million in second quarter 2020

•P&C current accident year (CAY) CAT losses of $128 million, before tax, in second quarter 2021, compared to $248 million in second quarter 2020 which included $110 million of civil unrest losses

•Underlying ex-COVID-19 Commercial Lines loss ratio* improved 1.3 points to 57.0% in second quarter 2021 from 58.3% in second quarter 2020 driven by improvement in Middle & Large Commercial and Global Specialty

•Higher Commercial Lines earned premium, including higher audit and endorsement premiums

•An $18 million increase in Hartford Funds core earnings largely driven by higher assets under management

•$25 million, before tax, of excess mortality in group life in second quarter 2021, primarily caused by direct and indirect impacts of the COVID-19 pandemic, compared with $45 million, before tax, in second quarter 2020

Partially offset by:

•Favorable P&C PYD within core earnings of $188 million, before tax, in second quarter 2021, compared with $322 million of net favorable PYD within core earnings in second quarter 2020, which included $400 million, before tax, of favorable development on CAT reserves

◦Net favorable PYD in second quarter 2021 included $82 million, before tax, of favorable CAT reserve development as well as reserve reductions in workers' compensation, personal auto liability, package business and bond

•Underlying Personal Lines loss ratio* increased 9.3 points to 60.6% in second quarter 2021 from 51.3% in second quarter 2020 as the prior year benefited from lower auto claim frequency due to the pandemic

•A loss in core earnings from the retained equity interest in Talcott Resolution of $3 million, before tax, in second quarter 2021 compared to income of $68 million, before tax, in second quarter 2020. This investment was sold in second quarter 2021, resulting in a $46 million, before tax, gain within net realized capital gains

June 30, 2021 book value per diluted share of $50.62 was mostly flat from $50.39 at Dec. 31, 2020.

3

---

Book value per diluted share (excluding AOCI) of $49.01 as of June 30, 2021, increased from $47.16 at Dec. 31, 2020, due to the increase in net income, partially offset by share repurchases and stockholder dividends during the six months ended June 30, 2021.

Through June 30, 2021, The Hartford returned $933 million to shareholders, consisting of $242 million in common stockholder dividends paid and $691 million of common share repurchases.

Second quarter 2021 net income available to common stockholders' ROE (net income ROE) was 12.3% at June 30, 2021.

Core earnings ROE at June 30, 2021 was 13.1%, an increase of 0.4 points from 12.7% in second quarter 2020 due to higher trailing 12-month core earnings partially offset by higher average common stockholder's equity ex AOCI.

BUSINESS RESULTS:

Commercial Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net income (loss)			$569			$(66)			NM
Core earnings (loss)			$560			$(57)			NM
Written premiums			$2,494			$2,165			15%
Underwriting gain (loss)1			$261			$(332)			NM
Underlying underwriting gain (loss)1			$249			$(62)			NM
Losses and loss adjustment expense ratio
Current accident year before catastrophes			57.1			68.2			(11.1)
Current accident year catastrophes			4.0			8.9			(4.9)
Prior accident year development (PYD)			(4.5)			3.6			(8.1)
Expenses			32.0			34.3			(2.3)
Policyholder dividends			0.3			0.3			—
Combined ratio			88.9			115.4			(26.5)
Impact of catastrophes and PYD on combined ratio			0.5			(12.5)			13.0
Underlying combined ratio1			89.4			102.9			(13.5)

[1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures

Second quarter 2021 net income of $569 million increased from a net loss of $66 million in second quarter 2020, principally due to a change from an underwriting loss of $332 million in second quarter 2020 to an underwriting gain of $261 million in second quarter 2021, as well as higher net investment income, partially offset by a decrease in net realized capital gains.

Commercial Lines core earnings of $560 million in the second quarter of 2021 increased by $617 million from the second quarter of 2020, primarily from:

4

---

•Improved underlying margins before COVID-19 losses by $101 million, before tax, or 3.7 points, including a lower CAY ex-COVID-19 loss ratio before CATs of 1.3 points and a lower expense ratio of 2.3 points

•A $210 million, before tax, decrease in COVID-19 incurred losses with $3 million, before tax of COVID-19 losses in second quarter 2021 compared to $213 million, before tax, in second quarter 2020

•Favorable PYD within core earnings of $144 million, before tax, in second quarter 2021, compared to $23 million of unfavorable PYD within core earnings in second quarter 2020. The $144 million of net favorable development in second quarter 2021 primarily included reserve decreases in prior year CATs, workers’ compensation, package business and bond

•CAY CAT losses of $93 million, before tax, in second quarter 2021 compared with $193 million in second quarter 2020 which included $110 million from civil unrest losses

•Net investment income of $382 million before tax, compared with $204 million in second quarter 2020, including higher returns on LP investments

Combined ratio was 88.9 in second quarter 2021, 26.5 points lower than 115.4 in second quarter 2020, primarily due to a 13.5 point improvement in the underlying combined ratio, an 8.1 point improvement in PYD, and a 4.9 point decrease in CAY CAT losses. The combined ratio included 1.7 points, or $39 million, before tax, of adverse development for Navigators related to 2018 and prior accident years that has been economically ceded to NICO but recorded as a deferred gain, compared to 2.5 points, or $54 million, before tax, of Navigators adverse development recognized in second quarter 2020.

Underlying combined ratio was 89.4, improving 13.5 points from second quarter 2020 primarily due to 9.9 points of COVID-19 incurred losses in second quarter 2020 compared to 0.1 points of COVID-19 incurred losses in second quarter 2021.

Before COVID-19 losses, the underlying combined ratio improved 3.7 points, including:

•A 2.3 point decrease in the expense ratio, driven by the effect of earned premium growth, a lower provision for doubtful accounts, the effect of Hartford Next cost reduction initiatives and a lower average commission rate, partially offset by higher incentive compensation

•A 1.3 point decrease in the underlying loss and loss adjustment expense ratio

The underlying combined ratio in Commercial Lines improved across all three businesses:

•Small Commercial underlying combined ratio of 87.0 improved by 5.9 points from second quarter 2020 driven primarily by COVID-19 incurred losses in second quarter 2020 of 4.1 points and a 3.1 point decrease in the expense ratio in second quarter 2021, partially offset by higher non-CAT property losses before COVID-19 in second quarter 2021

•Middle & Large Commercial underlying combined ratio of 91.5 improved by 21.4 points from second quarter 2020 primarily due to COVID-19 incurred losses in second quarter 2020 of 14.6 points, a lower expense ratio and a lower ex-COVID-19 CAY loss ratio before CATs in general liability and workers' compensation, partially offset by higher non-CAT property losses driven, in part, by higher building costs

•Global Specialty underlying combined ratio of 90.3 improved by 15.2 points from second quarter 2020 due to COVID-19 incurred losses of 13.0 points in second quarter 2020 compared with 0.4 points in second quarter 2021, a lower expense ratio and lower ex-COVID-19 CAY loss ratios before CATs in wholesale, US financial lines and Global Re

5

---

Second quarter 2021 written premiums of $2.5 billion were up 15% from second quarter 2020, reflecting higher audit and endorsement premiums as well as an increase in new business across Small Commercial, Middle & Large Commercial and Global Specialty and continued strong renewal written price increases in Middle Market and Global Specialty.

Personal Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net income			$118			$371			(68%)
Core earnings			$113			$364			(69%)
Written premiums			$760			$738			3%
Underwriting gain			$96			$428			(78%)
Underlying underwriting gain			$87			$134			(35%)
Losses and loss adjustment expense ratio
Current accident year before catastrophes			60.6			51.3			9.3
Current accident year catastrophes			4.7			7.9			(3.2)
Prior accident year development (PYD)			(6.0)			(50.3)			44.3
Expenses			27.6			29.4			(1.8)
Combined ratio			87.0			38.3			48.7
Impact of catastrophes and PYD on combined ratio			1.3			42.4			(41.1)
Underlying combined ratio			88.2			80.7			7.5

Net income of $118 million in second quarter 2021 was down $253 million from second quarter 2020 largely driven by a decrease in underwriting results, partially offset by an increase in net investment income.

Personal Lines core earnings of $113 million declined by $251 million due to:

•Less favorable PYD with $44 million, before tax, of favorable PYD in second quarter 2021, compared to $349 million of favorable PYD in second quarter 2020 that was largely attributable to a $333 million reduction in prior accident year CAT reserves. The $44 million of net favorable development in second quarter 2021 primarily included reserve decreases for prior year CATs and auto liability

•Underlying underwriting gain of $87 million compared to a gain of $134 million in second quarter 2020, largely due to an increase in auto claim frequency. Second quarter 2020 benefited from low auto claims frequency due to effects of the pandemic resulting in fewer miles driven, partially offset by $81 million, before tax, in premium refunds

Partially offset by:

•A $20 million, before tax, decrease in CAY CAT losses

•Higher net investment income of $40 million, before tax, compared with $28 million in second quarter 2020, driven by higher returns on LPs

Combined ratio of 87.0 in second quarter 2021 was 48.7 points higher than second quarter 2020, primarily due to lower net favorable PYD as the prior year quarter benefited from a 48.0 point reduction in prior year CAT reserves, including a $260 million, before tax, subrogation benefit from PG&E related to the 2017 and 2018 wildfires, as well as higher CAY loss costs before CATs, partially offset by a lower CAY CAT ratio and a decrease in the expense ratio.

6

---

Underlying combined ratio of 88.2 was 7.5 points higher than second quarter 2020, primarily due to an increase in CAY losses before CATs in both auto and homeowners, partially offset by a 1.8 point improvement in the expense ratio.

•The auto underlying combined ratio of 92.1 increased 5.8 points from 86.3 in second quarter 2020, primarily due to an increase in auto frequency as a result of increased miles driven

•The homeowners underlying combined ratio of 79.2 increased 9.1 points from 70.1 in second quarter 2020, primarily due to higher non-CAT property losses driven by higher severity from a greater number of large losses and higher building costs, partially offset by lower claim frequency

The improvement in the expense ratio was driven by the effect that premium refunds in second quarter 2020 had on the expense ratio in that period, cost savings from Hartford Next initiatives, and a lower provision for doubtful accounts, partially offset by an increase in direct marketing costs, higher incentive compensation, and the effect of a decline in earned premium before considering the second quarter 2020 premium refunds.

Written premiums in second quarter 2021 were $760 million compared to $738 million in second quarter 2020 primarily due to the effect of $81 million, before tax, in premium refunds issued in second quarter 2020, partially offset by:

•A reduction in auto written premiums before refunds as non-renewed premium exceeded new business

•A reduction in homeowners as non-renewed premium exceeded new business, partially offset by renewal written price increases in homeowners of 8.6% in second quarter 2021

Group Benefits

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net income			$170			$101			68%
Core earnings			$149			$102			46%
Fully insured ongoing premiums (ex. buyout premiums)			$1,378			$1,349			2%
Loss ratio			71.4%			72.0%			(0.6)
Expense ratio			25.1%			25.6%			(0.5)
Net income margin			10.7%			6.7%			4.0
Core earnings margin			9.5%			6.9%			2.6

Net income and core earnings were $170 million and $149 million, respectively, increasing from $101 million and $102 million, respectively, in second quarter 2020, largely driven by an increase in net investment income and lower excess mortality. Also contributing to the increase in net income was an increase in net realized capital gains.

Fully insured ongoing premiums were up 2%, compared to second quarter 2020, driven by an increase in exposure on existing accounts as our customers emerge from the pandemic as well as strong persistency and sales. Fully insured ongoing sales were $99 million in second quarter 2021, down 34%, as the prior year period had two large account sales.

7

---

Loss ratio of 71.4% improved 0.6 points compared to 72.0% in second quarter 2020 driven by a 1.5 point decrease in excess mortality partially offset by higher short-term disability incidence:

•Total group life loss ratio of 83.6% decreased 2.3 points, primarily due to a 3.3 point decrease in excess mortality losses. Excess mortality losses were $25 million, before tax, in second quarter 2021 compared to $45 million, before tax, in second quarter 2020. The $25 million in second quarter 2021 primarily included $88 million related to claims with dates of loss in the second quarter, partially offset by a $63 million decrease related to prior quarters, almost all of which related to first quarter 2021

•Total disability loss ratio of 64.2% increased 1.6 points compared with second quarter 2020, due to an increase in short-term disability claim incidence as the prior year was favorably impacted by fewer elective procedures during the onset of the pandemic

Expense ratio of 25.1% improved 0.5 points from second quarter 2020 due to the prior year period including an increase in the allowance for uncollectible premium, and expense savings from Hartford Next, partially offset by higher incentive compensation and increased claims expenses to handle the higher volume of excess mortality claims.

Hartford Funds

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net income			$52			$39			33%
Core earnings			$51			$33			55%
Daily average Hartford Funds AUM			$150,527			$110,864			36%
Mutual Funds and exchange-traded products (ETP) net flows			$2,440			$(675)			NM
Total Hartford Funds assets under management (AUM)			$153,793			$117,844			31%

Net income and core earnings were $52 million and $51 million, respectively, increasing from $39 million and $33 million in second quarter 2020, largely driven by higher daily average Hartford Funds AUM. Daily average AUM of $151 billion rose 36% from second quarter 2020 due to increases in market values and strong net inflows. Fee income and variable expenses rose with the increase in AUM.

Mutual fund and ETP net inflows totaled $2.4 billion in second quarter 2021, compared with net outflows of $675 million in second quarter 2020.

8

---

Corporate

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net income (loss)			$(21)			$18			NM
Net income (loss) available to common stockholders			$(26)			$13			NM
Core loss			$(52)			$(6)			NM
Other revenue (loss)			$(2)			$73			NM
Net investment income, before tax			$3			$4			(25)%
Interest expense and preferred dividends, before tax			$62			$62			—%

Net loss available to common stockholders of $26 million in second quarter 2021 compared with net income of $13 million in second quarter 2020, driven by a decrease in income from the company's retained interest in Talcott Resolution, which was sold on June 30, 2021, partially offset by an increase in net realized capital gains. Net realized capital gains of $61 million, before tax, in second quarter 2021 included a $46 million, before tax, gain on the sale of the company's investment in Talcott Resolution.

Second quarter 2021 core loss of $52 million increased $46 million compared with second quarter 2020 core loss of $6 million primarily due to $68 million, before tax, of income in second quarter 2020 from our retained 9.7% equity interest in Talcott Resolution, which was sold on June 30, 2021, partially offset by a decrease in consulting expenses.

INVESTMENT INCOME AND PORTFOLIO DATA:

			Three Months Ended
($ in millions, unless otherwise noted)			Jun 30 2021			Jun 30 2020			Change
Net investment income, before tax			$581			$339			71%
Annualized investment yield, before tax			4.4%			2.7%			1.7
Annualized investment yield, before tax, excluding LPs*			3.1%			3.4%			(0.3)
Annualized LP yield, before tax			32.5%			(15.3%)			47.8
Annualized investment yield, after tax			3.6%			2.2%			1.4

Second quarter 2021 consolidated net investment income of $581 million increased $242 million from $339 million in second quarter 2020 largely driven by higher income from LPs and higher invested assets, partially offset by reinvesting at lower rates and a lower yield on floating rate investments.

Income from LPs was $191 million, before tax, in second quarter 2021, increasing from a loss of $71 million, before tax, in second quarter 2020, mostly driven by higher valuations and sales of underlying investments within private equity funds. Income from LPs, including from private equity and other funds, is generally reported on a three-month lag.

Total invested assets of $56.8 billion rose 1% from Dec. 31, 2020, primarily due to increases in LPs, mortgage loans and equity securities at fair value, partially offset by a decrease in fixed

9

---

maturities. Valuations of fixed maturities decreased driven by higher interest rates, partially offset by tighter credit spreads.

10

---

CONFERENCE CALL

The Hartford will discuss its second quarter 2021 financial results on a webcast at 8:30 a.m. EDT on Thursday, July 29, 2021. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for June 30, 2021, and the second quarter 2021 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

About The Hartford

The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at https://www.thehartford.com. Follow us on Twitter at https://twitter.com/thehartford_pr.

The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Connecticut. For additional details, please read https://www.thehartford.com/legal-notice.

HIG-F

From time to time, The Hartford may use its website and/or social media outlets, such as Twitter and Facebook, to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com, Twitter account at www.twitter.com/TheHartford_pr and Facebook at https://facebook.com/thehartford. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at https://ir.thehartford.com.

Media Contacts:    Investor Contact:

Michelle Loxton     Susan Spivak Bernstein

860-547-7413     860-547-6233

[email protected]     [email protected]

Matthew Sturdevant

860-547-8664

[email protected]

11

---

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended June 30, 2021
($ in millions)
			Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Hartford Funds			Corporate						Consolidated
Earned premiums			$	2,344		$	738		$	—		$	1,378		$	—		$	—					$	4,460
Fee income			8			8			—			49			296			14						375
Net investment income			382			40			20			136			—			3						581
Other revenue (loss)			7			21			—			—			—			(2)						26
Net realized capital gains			47			6			3			28			2			61						147
Total revenues			2,788			813			23			1,591			298			76						5,589
Benefits, losses, and loss adjustment expenses			1,327			438			—			1,019			—			2						2,786
Amortization of DAC			346			58			—			10			3			—						417
Insurance operating costs and other expenses			417			170			2			340			228			45						1,202
Loss on extinguishment of debt			—			—			—			—			—			—						—
Interest expense			—			—			—			—			—			57						57
Amortization of other intangible assets			7			—			—			10			—			—						17
Total benefits, losses and expenses			2,097			666			2			1,379			231			104						4,479
Income (loss) before income taxes			691			147			21			212			67			(28)						1,110
Income tax expense (benefit)			122			29			4			42			15			(7)						205
Net income (loss)			569			118			17			170			52			(21)						905
Preferred stock dividends			—			—			—			—			—			5						5
Net income (loss) available to common stockholders			569			118			17			170			52			(26)						900
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized capital gains, excluded from core earnings, before tax			(47)			(6)			(3)			(28)			(2)			(62)						(148)
Integration and other non-recurring M&A costs, before tax			4			—			—			2			—			30						36
Change in deferred gain on retroactive reinsurance, before tax			39			—			—			—			—			—						39
Income tax expense (benefit)			(5)			1			1			5			1			6						9
Core earnings (losses)			$	560		$	113		$	15		149			51			(52)						$	836

12

---

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended June 30, 2020
($ in millions)
			Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits						Hartford Funds			Corporate						Consolidated
Earned premiums			$	2,157		$	694		$	—		$	1,378					$	—		$	5					$	4,234
Fee income			5			9			—			45						227			12						298
Net investment income			204			28			10			92						1			4						339
Other revenue			(1)			21			—			—						—			68						88
Net realized capital gains			64			8			2			3						8			24						109
Total revenues			2,429			760			12			1,518						236			113						5,068
Benefits, losses, and loss adjustment expenses			1,742			62			4			1,033						—			6						2,847
Amortization of DAC			351			61			—			13						3			1						429
Insurance operating costs and other expenses			404			167			3			340						183			28						1,125
Interest expense			—			—			—			—						—			57						57
Amortization of other intangible assets			7			2			—			9						—			—						18
Total benefits, losses and expenses			2,504			292			7			1,395						186			92						4,476
Income (loss) before income taxes			(75)			468			5			123						50			21						592
Income tax expense (benefit)			(9)			97			—			22						11			3						124
Net income (loss)			(66)			371			5			101						39			18						468
Preferred stock dividends			—			—			—			—						—			5						5
Net income (loss) available to common stockholders			(66)			371			5			101						39			13						463
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized capital gains, excluded from core earnings, before tax			(61)			(8)			(2)			(2)						(8)			(26)						(107)
Change in deferred gain on retroactive reinsurance, before tax			54			—			—			—						—			—						54
Integration and other non-recurring M&A costs, before tax			8			—			—			5						—			—						13
Income tax expense (benefit)			8			1			(1)			(2)						2			7						15
Core earnings (losses)			$	(57)		$	364		$	2		$	102					$	33		$	(6)					$	438

13

---

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Hartford uses non-GAAP financial measures in this press release to assist investors in analyzing the company's operating performance for the periods presented herein. Because The Hartford's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford's non-GAAP financial measures to those of other companies. Definitions and calculations of other financial measures used in this press release can be found below and in The Hartford's Investor Financial Supplement for second quarter 2021, which is available on The Hartford's website, https://ir.thehartford.com.

Annualized investment yield, excluding limited partnerships and other alternative investments - This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure.

			Three Months Ended
			Jun 30 2021			Jun 30 2020			Jun 30 2021			Jun 30 2020			Jun 30 2021			Jun 30 2020
			Consolidated						P&C						Group Benefits
Annualized investment yield, before tax			4.4		%	2.7		%	4.5		%	2.6		%	4.7		%	3.2		%
Impact on annualized investment yield of limited partnerships and other alternative investments, before tax			(1.3)		%	0.7		%	(1.4)		%	0.9		%	(1.2)		%	0.4		%
Annualized investment yield excluding limited partnerships and other alternative investments, before tax			3.1		%	3.4		%	3.1		%	3.5		%	3.5		%	3.6		%

14

---

Book value per diluted share (excluding AOCI) - This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure.

			As of
			Jun 30 2021			Dec 31 2020			Change
Book value per diluted share			$50.62			$50.39			—%
Per diluted share impact of AOCI			$(1.61)			$(3.23)			50%
Book value per diluted share (excluding AOCI)			$49.01			$47.16			4%

15

---

Core earnings - The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

•Certain realized capital gains and losses - Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.

•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.

•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.

•Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.

•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.

•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.

•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.

•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.

In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.

16

---

Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance.

A reconciliation of net income (loss) to core earnings for the quarterly periods ended June 30, 2021 and 2020, is included in this press release. A reconciliation of net income (loss) to core earnings for individual reporting segments can be found in this press release under the heading "The Hartford Financial Services Group, Inc. Consolidating Income Statements" and in The Hartford's Investor Financial Supplement for the quarter ended June 30, 2021.

Core earnings margin - The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin for the quarterly periods ended June 30, 2021 and 2020, is set forth below.

			Three Months Ended
Margin			Jun 30 2021			Jun 30 2020			Change
Net income margin			10.7%			6.7%			4.0
Adjustments to reconcile net income margin to core earnings margin
Net realized capital losses (gains) excluded from core earnings, before tax			(1.7)%			(0.1)%			(1.6)
Integration and other non-recurring M&A costs, before tax			0.1%			0.3%			(0.2)
Income tax expense			0.4%			(0.1)%			0.5
Impact of excluding buyouts from denominator of core earnings margin			—%			0.1%			(0.1)
Core earnings margin			9.5%			6.9%			2.6

17

---

Core earnings per diluted share - This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income (loss) available to common stockholders per diluted common share to core earnings per diluted share for the quarterly periods ended June 30, 2021 and 2020 is provided in the table below.

			Three Months Ended
			Jun 30 2021			Jun 30 2020			Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common stockholders per share1			$2.51			$1.29			95%
Adjustment made to reconcile net income available to common stockholders per share to core earnings per share
Net realized capital losses (gains), excluded from core earnings, before tax			(0.41)			(0.30)			(37)%
Integration and other non-recurring M&A costs, before tax			0.10			0.04			150%
Change in deferred gain on retroactive reinsurance, before tax			0.11			0.15			(27)%
Income tax expense (benefit) on items excluded from core earnings			0.02			0.04			(50)%
Core earnings per diluted share			$2.33			$1.22			91%

[1] Net income (loss) available to common stockholders includes dilutive potential common shares

18

---

Core Earnings Return on Equity - The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition.

A reconciliation of consolidated net income (loss) ROE to Consolidated Core earnings ROE is set forth below.

			Last Twelve Months Ended
			Jun 30 2021			Jun 30 2020
Net income (loss) available to common stockholders ROE			12.3%			11.3%
Adjustments to reconcile net income (loss) available to common stockholders ROE to core earnings ROE
Net realized capital losses (gains) excluded from core earnings, before tax			(1.9)			(0.2)
Restructuring and other costs, before tax			0.7			—
Loss on extinguishment of debt, before tax			—			0.6
Integration and other non-recurring M&A costs, before tax			0.4			0.5
Changes in loss reserves upon acquisition of a business, before tax			—			—
Change in deferred gain on retroactive reinsurance, before tax			1.6			0.6
Income tax expense (benefit) on items not included in core earnings			(0.3)			(0.3)
Impact of AOCI, excluded from core earnings ROE			0.3			0.2
Core earnings ROE			13.1%			12.7%

19

---

Net investment income, excluding limited partnerships and other alternative investments -This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure.

			Three Months Ended
			Jun 30 2021			Jun 30 2020			Jun 30 2021			Jun 30 2020			Jun 30 2021			Jun 30 2020
			Consolidated						P&C						Group Benefits
Total net investment income			$581			$339			$442			$242			$136			$92
Loss (income) from limited partnerships and other alternative assets			(191)			71			(151)			62			(40)			9
Net investment income excluding limited partnerships and other alternative investments			$390			$410			$291			$304			$96			$101

20

---

Underlying combined ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance.A reconciliation of the combined ratio to the underlying combined ratio for individual reporting segments can be found in this press release under the heading "Business Results" for Commercial Lines" and "Personal Lines"

Underwriting gain (loss) - The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities.A reconciliation of net income to underwriting results for the quarterly periods ended June 30, 2021 and 2020, is set forth below.

Underlying underwriting gain (loss) - This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of net income (loss) to underlying underwriting gain (loss) for individual reporting segments for the quarterly periods ended June 30, 2021 and 2020, is set forth below.

21

---

COMMERCIAL LINES

			Three Months Ended
			Jun 30 2021			Jun 30 2020
Net income (loss)			$	569		$	(66)
Adjustments to reconcile net income to underwriting gain
Net servicing income			(7)			—
Net investment income			(382)			(204)
Net realized capital gains			(47)			(64)
Other expense			6			11
Income tax expense			122			(9)
Underwriting gain			261			(332)
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			93			193
Prior accident year development			(105)			77
Underlying underwriting gain			$	249		$	(62)

PERSONAL LINES

			Three Months Ended
			Jun 30 2021			Jun 30 2020
Net income			$	118		$	371
Adjustments to reconcile net income to underwriting gain
Net servicing income			(5)			(3)
Net investment income			(40)			(28)
Net realized capital gains			(6)			(8)
Other expense			—			(1)
Income tax expense			29			97
Underwriting gain			96			428
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			35			55
Prior accident year development			(44)			(349)
Underlying underwriting gain			$	87		$	134

22

---

PROPERTY & CASUALTY

			Three Months Ended
			Jun 30 2021			Jun 30 2020
Net income			$	704		$	310
Adjustments to reconcile net income to underwriting gain
Net investment income			(442)			(242)
Net realized capital gains			(56)			(74)
Net servicing and other expense			(6)			7
Income tax expense			155			88
Underwriting gain (loss)			355			89
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			128			248
Prior accident year development			(149)			(268)
Underlying underwriting gain			$	334		$	69

Underlying combined ratio before COVID-19 losses - This non-GAAP financial measure of the combined ratio for Commercial Lines represents the combined ratio before catastrophes, prior accident year development and COVID-19 incurred losses. The combined ratio is the most directly comparable GAAP measure. The underlying combined expense ratio before COVID-19 losses is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses, prior accident year reserve development and COVID-19 incurred losses. A reconciliation of the combined ratio to the underlying combined ratio before COVID-19 losses is set forth below.

Commercial Lines

						Three Months Ended
						Jun 30 2021						Jun 30 2020			Change
Combined Ratio
Combined Ratio						88.9						115.4			(26.5)
Current accident year catastrophes						(4.0)						(8.9)			4.9
Prior accident year development						4.5						(3.6)			8.1
Underlying Combined Ratio						89.4						102.9			(13.5)
COVID-19 losses						(0.1)						(9.9)			9.8
Underlying combined ratio before COVID-19 losses						89.3						93.0			(3.7)

Underlying loss and loss adjustment expense ratio before COVID-19 losses- This non-GAAP financial measure of the loss and loss adjustment expense ratio for Commercial Lines represents the loss and loss adjustment expense ratio before catastrophes, prior accident year development and COVID-19 incurred losses. The loss and loss adjustment expense ratio is the most directly comparable GAAP measure. The underlying loss and loss adjustment expense ratio before COVID-19 losses is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses, prior accident year reserve

23

---

development and COVID-19 incurred losses. A reconciliation of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio before COVID-19 losses is set forth below.

Commercial Lines

						Three Months Ended
						Jun 30 2021						Jun 30 2020			Change
Loss and loss adjustment expense ratio
Total losses and loss adjustment expenses						56.6						80.8			(24.2)
Current accident year catastrophes						(4.0)						(8.9)			4.9
Prior accident year development						4.5						(3.6)			8.1
Underlying loss and loss adjustment expenses						57.1						68.2			(11.1)
COVID-19 losses						(0.10)						(9.9)			9.8
Underlying loss and loss adjustment expenses before COVID-19 losses						57.0						58.3			(1.3)

24

---

SAFE HARBOR STATEMENT

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects,” and similar references to future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations, depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; or in Part I, Item 1A, Risk Factors, in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and those identified from time to time in our other filings with the Securities and Exchange Commission.

Risks relating to the pandemic caused by the spread of the novel strain of coronavirus, specifically identified as the Coronavirus Disease 2019 (“COVID-19”) including impacts to the Company's insurance and product-related, regulatory/legal, recessionary and other global economic, capital and liquidity and operational risks;

Risks Relating to Economic, Political and Global Market Conditions: challenges related to the Company’s current operating environment, including global political, economic and market conditions, and the effect of financial market disruptions, economic downturns, changes in trade regulation including tariffs and other barriers or other potentially adverse macroeconomic developments on the demand for our products and returns in our investment portfolios; market risks associated with our business, including changes in credit spreads, equity prices, interest rates, inflation rate, foreign currency exchange rates and market volatility;the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy; the impacts of changing climate and weather patterns on our businesses, operations and investment portfolio including on claims, demand and pricing of our products, the availability and cost of reinsurance, our modeling data used to evaluate and manage risks of catastrophes and severe weather events, the value of our investment portfolios and credit risk with reinsurers and other counterparties; the risks associated with the discontinuance of the London Inter-Bank Offered Rate ("LIBOR") on the securities we hold or may have issued, other financial instruments and any other assets and liabilities whose value is tied to LIBOR; the impacts associated with the withdrawal of the United Kingdom (“U.K.”) from the European Union (“E.U.”) on our international operations in the U.K. and E.U.

Insurance Industry and Product-Related Risks: the possibility of unfavorable loss development, including with respect to long-tailed exposures; the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims; the possibility of another pandemic, civil unrest, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the intensity and frequency of storms, hail, wildfires, flooding, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; the possible occurrence of terrorist attacks and the Company’s inability to contain its exposure as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; the Company’s ability to effectively price its property and casualty policies, including its ability to obtain regulatory consents to pricing actions or to non-

25

---

renewal or withdrawal of certain product lines; actions by competitors that may be larger or have greater financial resources than we do; technological changes, including usage-based methods of determining premiums, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing, the Company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues;

Financial Strength, Credit and Counterparty Risks: risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments; capital requirements which are subject to many factors, including many that are outside the Company’s control, such as National Association of Insurance Commissioners ("NAIC") risk based capital formulas, rating agency capital models, Funds at Lloyd's and Solvency Capital Requirement, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; losses due to nonperformance or defaults by others, including credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; state and international regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;

Risks Relating to Estimates, Assumptions and Valuations: risk associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance and catastrophe risk management; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the Company’s fair value estimates for its investments and the evaluation of intent-to-sell impairments and allowance for credit losses on available-for-sale securities and mortgage loans; the potential for further impairments of our goodwill;

Strategic and Operational Risks: the Company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber or other information security incident or other unanticipated event; the potential for difficulties arising from outsourcing and similar third-party relationships; the risks, challenges and uncertainties associated with capital management plans, expense reduction initiatives and other actions, which may include acquisitions, divestitures or restructurings; risks associated with acquisitions and divestitures, including the challenges of integrating acquired companies or businesses, which may result in our inability to achieve the anticipated benefits and synergies and may result in unintended consequences; difficulty in attracting and retaining talented and qualified personnel, including key employees, such as executives, managers and employees with strong technological, analytical and other specialized skills; the Company’s ability to protect its intellectual property and defend against claims of infringement;

Regulatory and Legal Risks: the cost and other potential effects of increased federal, state and international regulatory and legislative developments, including those that could adversely impact the demand for the Company’s products, operating costs and required capital levels; unfavorable judicial or legislative developments; the impact of changes in federal, state or foreign tax laws; regulatory requirements that could delay, deter or prevent a takeover attempt that stockholders might consider in their best interests; and the impact of potential changes in accounting principles and related financial reporting requirements.

26

---

Any forward-looking statement made by the Company in this document speaks only as of the date of the filing of this release. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

27

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2021

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear in this document. These measures are defined within the Discussion of Non-GAAP and Other Financial Measures section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

---

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

As of July 27, 2021

Address:

One Hartford Plaza

A.M. Best

Standard & Poor’s

Moody’s

Hartford, CT 06155

Insurance Financial Strength Ratings:

Hartford Fire Insurance Company

A+

A+

A1

Hartford Life and Accident Insurance Company

A+

A+

A1

Navigators Insurance Company

A+

A

NR

- Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s

- Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s

Internet address:

- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's

http://www.thehartford.com

NR- Not Rated

Other Ratings:

Contact:

Senior debt

a-

BBB+

Baa1

Susan Spivak Bernstein

Junior subordinated debentures

bbb

BBB-

Baa2

Senior Vice President

Preferred stock

bbb

BBB-

Baa3

Investor Relations

Phone (860) 547-6233

- Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.

TRANSFER AGENT

Stockholder correspondence should be mailed to:

Overnight correspondence should be mailed to:

Computershare

Computershare

P.O. Box 505000

462 South 4th Street, Suite 1600

Louisville, KY 40233

Louisville, KY 40202

Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.

This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange

Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

---

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

CONSOLIDATED			Consolidated Financial Results						1
			Consolidated Statements of Operations						2
			Operating Results by Segment						3
			Consolidating Balance Sheets						4
			Capital Structure						5
			Statutory Capital to GAAP Stockholders’ Equity Reconciliation						6
			Accumulated Other Comprehensive Income (Loss)						7
PROPERTY & CASUALTY			Property & Casualty Income Statements						8
			Property & Casualty Income Statements (Continued)						9
			Property & Casualty Underwriting Ratios						10
			Commercial Lines Income Statements						11
			Commercial Lines Income Statements (Continued)						12
			Commercial Lines Underwriting Ratios						13
			Commercial Lines Supplemental Data						14
			Personal Lines Income Statements						15
			Personal Lines Income Statements (Continued)						16
			Personal Lines Underwriting Ratios						17
			Personal Lines Supplemental Data						18
			Personal Lines Supplemental Data (Continued)						19
			P&C Other Operations Income Statements						20
GROUP BENEFITS			Income Statements						21
			Supplemental Data						22
HARTFORD FUNDS			Income Statements						23
			Asset Value Rollforward - Assets Under Management By Asset Class						24
CORPORATE			Income Statements						25
INVESTMENTS			Investment Income Before Tax - Consolidated						26
			Investment Income Before Tax - Property & Casualty						27
			Investment Income Before Tax - Group Benefits						28
			Net Investment Income						29
			Components of Net Realized Capital Gains (Losses)						30
			Composition of Invested Assets						31
			Invested Asset Exposures						32
APPENDIX			Basis of Presentation and Definitions						33
			Discussion of Non-GAAP and Other Financial Measures						34

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
HIGHLIGHTS
Net income			$	905		$	249		$	537		$	459		$	468		$	273											$	1,154		$	741
Net income available to common stockholders [1]			$	900		$	244		$	532		$	453		$	463		$	268											$	1,144		$	731
Core earnings*			$	836		$	203		$	636		$	527		$	438		$	485											$	1,039		$	923
Total revenues			$	5,589		$	5,299		$	5,328		$	5,171		$	5,068		$	4,956											$	10,888		$	10,024
Total assets			$	74,732		$	74,201		$	74,111		$	72,319		$	70,990		$	68,724
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders			$	2.54		$	0.68		$	1.48		$	1.26		$	1.29		$	0.75											$	3.21		$	2.04
Core earnings*			$	2.36		$	0.57		$	1.77		$	1.47		$	1.22		$	1.35											$	2.92		$	2.58
Diluted earnings per common share
Net income available to common stockholders			$	2.51		$	0.67		$	1.47		$	1.26		$	1.29		$	0.74											$	3.17		$	2.03
Core earnings*			$	2.33		$	0.56		$	1.76		$	1.46		$	1.22		$	1.34											$	2.88		$	2.56
Weighted average common shares outstanding (basic)			353.7			358.2			358.4			358.3			358.1			358.5												356.0			358.3
Dilutive effect of stock compensation			4.8			4.0			3.1			2.2			1.2			2.6												4.4			1.9
Weighted average common shares outstanding and dilutive potential common shares (diluted)			358.5			362.2			361.5			360.5			359.3			361.1												360.4			360.2
Common shares outstanding			349.0			357.5			358.5			358.2			358.1			357.9
Book value per common share			$	51.32		$	48.58		$	50.83		$	48.77		$	46.74		$	41.72
Per common share impact of accumulated other comprehensive income [2]			(1.64)			(0.74)			(3.27)			(2.39)			(1.34)			2.68
Book value per common share (excluding AOCI)*			$	49.68		$	47.84		$	47.56		$	46.38		$	45.40		$	44.40
Book value per diluted share			$	50.62		$	48.04		$	50.39		$	48.47		$	46.59		$	41.42
Per diluted share impact of AOCI			(1.61)			(0.73)			(3.23)			(2.38)			(1.34)			2.65
Book value per diluted share (excluding AOCI)*			$	49.01		$	47.31		$	47.16		$	46.09		$	45.25		$	44.07
Common shares outstanding and dilutive potential common shares			353.8			361.5			361.6			360.4			359.3			360.5
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")			12.3		%	10.5		%	10.0		%	10.4		%	11.3		%	11.8		%
Core earnings ROE*			13.1		%	10.9		%	12.7		%	12.3		%	12.7		%	13.3		%

[1]Net income available to common stockholders includes the impact of preferred stock dividends.

[2]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement benefit plan adjustments.

[3]For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page 33.

1

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Earned premiums			$	4,460		$	4,343		$	4,316		$	4,347		$	4,234		$	4,391											$	8,803		$	8,625
Fee income			375			355			336			323			298			320												730			618
Net investment income			581			509			556			492			339			459												1,090			798
Net realized capital gains (losses)			147			80			102			6			109			(231)												227			(122)
Other revenues			26			12			18			3			88			17												38			105
Total revenues			5,589			5,299			5,328			5,171			5,068			4,956												10,888			10,024
Benefits, losses and loss adjustment expenses [1]			2,786			3,350			3,080			2,962			2,847			2,916												6,136			5,763
Amortization of deferred acquisition costs ("DAC")			417			416			419			421			429			437												833			866
Insurance operating costs and other expenses			1,202			1,144			1,086			1,093			1,125			1,176												2,346			2,301
Interest expense			57			57			57			58			57			64												114			121
Amortization of other intangible assets			17			18			17			18			18			19												35			37
Restructuring and other costs [2]			—			11			17			87			—			—												11			—
Total benefits, losses and expenses			4,479			4,996			4,676			4,639			4,476			4,612												9,475			9,088
Income before income taxes			1,110			303			652			532			592			344												1,413			936
Income tax expense			205			54			115			73			124			71												259			195
Net income			905			249			537			459			468			273												1,154			741
Preferred stock dividends			5			5			5			6			5			5												10			10
Net income available to common stockholders			900			244			532			453			463			268												1,144			731
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(148)			(77)			(101)			(6)			(107)			232												(225)			125
Restructuring and other costs, before tax [2]			—			11			17			87			—			—												11			—
Integration and other non-recurring M&A costs, before tax [3]			36			9			11			14			13			13												45			26
Change in deferred gain on retroactive reinsurance, before tax [4]			39			6			215			14			54			29												45			83
Income tax expense (benefit) [5]			9			10			(38)			(35)			15			(57)												19			(42)
Core earnings			$	836		$	203		$	636		$	527		$	438		$	485											$	1,039		$	923

[1]P&C incurred losses arising from the Coronavirus Disease 2019 ("COVID-19") pandemic were $3 and $27, respectively, in the three and six months ended June 30, 2021 and were $213 in both the three and six months ended June 30, 2020. Incurred losses in Group Benefits from excess mortality, primarily caused by direct and indirect impacts of COVID-19, were $25 and $210, respectively, for the three and six months ended June 30, 2021 and were $45 in both the three and six months ended June 30, 2020. COVID-19 related losses from short-term disability and New York Paid Family Leave claims were $(6) and $7, respectively, in the three and six months ended June 30, 2021 and were $(16) and $0, respectively, in the three and six months ended June 30, 2020. The six months ended June 30, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America. See note [1] on page 9 for more information.

[2]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.

[3]The three and six months ended June 30, 2021 included Navigators Group acquisition integration costs of $4 and $11, respectively, and integration costs related to the 2017 acquisition of Aetna's group benefits business of $2 and $4. The three and six month periods ended June 30, 2020 included Navigators Group acquisition transaction and integration costs of $8 and $16, respectively, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $5 and $10. The three and six months ended June 30, 2021 included legal and consulting costs associated with the unsolicited proposals from Chubb Limited to acquire the Company.

[4]As of June 30, 2021, the Company has cumulatively ceded $254 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $39 and $45 in the three and six month periods ended June 30, 2021. Of the $254 cumulative losses ceded, $163 the ceded losses has been recognized as a deferred gain within other liabilities as of June 30, 2021 since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded exceed the ceded premium paid of $91. As the Company has ceded $254 of the $300 available limit, there is $46 of remaining limit available as of June 30, 2021.

[5]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.

2

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income (loss):
Commercial Lines			$	569		$	129		$	478		$	323		$	(66)		$	121											$	698		$	55
Personal Lines			118			135			170			79			371			98												253			469
P&C Other Operations			17			(13)			(180)			2			5			5												4			10
Property & Casualty ("P&C")			704			251			468			404			310			224												955			534
Group Benefits			170			9			59			119			101			104												179			205
Hartford Funds			52			47			51			44			39			36												99			75
Sub-total			926			307			578			567			450			364												1,233			814
Corporate			(21)			(58)			(41)			(108)			18			(91)												(79)			(73)
Net income			905			249			537			459			468			273												1,154			741
Preferred stock dividends			5			5			5			6			5			5												10			10
Net income available to common stockholders			$	900		$	244		$	532		$	453		$	463		$	268											$	1,144		$	731
Core earnings (losses):
Commercial Lines			$	560		$	105		$	444		$	349		$	(57)		$	262											$	665		$	205
Personal Lines			113			131			164			77			364			117												244			481
P&C Other Operations			15			(15)			(16)			2			2			11												—			13
P&C			688			221			592			428			309			390												909			699
Group Benefits			149			(3)			49			116			102			115												146			217
Hartford Funds			51			45			46			40			33			44												96			77
Sub-total			888			263			687			584			444			549												1,151			993
Corporate			(52)			(60)			(51)			(57)			(6)			(64)												(112)			(70)
Core earnings			$	836		$	203		$	636		$	527		$	438		$	485											$	1,039		$	923

3

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

			PROPERTY & CASUALTY									GROUP BENEFITS									HARTFORD FUNDS									CORPORATE [1]									CONSOLIDATED
			Jun 30 2021			Dec 31 2020						Jun 30 2021			Dec 31 2020						Jun 30 2021			Dec 31 2020						Jun 30 2021			Dec 31 2020						Jun 30 2021			Dec 31 2020
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value			$	33,668		$	34,173					$	9,961		$	10,521					$	—		$	—					$	394		$	341					$	44,023		$	45,035
Equity securities, at fair value			1,117			961						288			204						68			74						220			199						1,693			1,438
Mortgage loans, net			3,496			3,133						1,380			1,360						—			—						—			—						4,876			4,493
Limited partnerships and other alternative investments			2,089			1,711						476			371						—			—						—			—						2,565			2,082
Other investments			154			143						7			7						56			30						15			21						232			201
Short-term investments			1,310			1,086						295			254						238			238						1,555			1,705						3,398			3,283
Total investments			41,834			41,207						12,407			12,717						362			342						2,184			2,266						56,787			56,532
Cash			155			120						18			13						3			15						1			3						177			151
Restricted cash			119			82						12			6						—			—						—			—						131			88
Premiums receivable and agents’ balances, net			4,117			3,779						505			489						—			—						—			—						4,622			4,268
Reinsurance recoverables, net [2]			5,679			5,461						255			244						—			—						283			306						6,217			6,011
DAC			809			744						36			38						7			7						—			—						852			789
Deferred income taxes			(154)			(240)						(261)			(277)						—			2						566			561						151			46
Goodwill			778			778						723			723						181			181						229			229						1,911			1,911
Property and equipment, net			914			961						77			83						12			12						64			66						1,067			1,122
Other intangible assets			436			462						458			478						10			10						—			—						904			950
Other assets			1,335			1,425						205			218						104			93						89			330						1,733			2,066
Assets held for sale [3]			180			177						—			—						—			—						—			—						180			177
Total assets			$	56,202		$	54,956					$	14,435		$	14,732					$	679		$	662					$	3,416		$	3,761					$	74,732		$	74,111
Unpaid losses and loss adjustment expenses			$	30,582		$	29,622					$	8,120		$	8,233					$	—		$	—					$	—		$	—					$	38,702		$	37,855
Reserves for future policy benefits [2]			—			—						407			420						—			—						204			218						611			638
Other policyholder funds and benefits payable [2]			—			—						418			415						—			—						267			286						685			701
Unearned premiums			7,135			6,589						32			40						—			—						—			—						7,167			6,629
Debt			—			—						—			—						—			—						4,354			4,352						4,354			4,352
Other liabilities			2,324			2,631						211			259						213			211						2,057			2,121						4,805			5,222
Liabilities held for sale [3]			164			158						—			—						—			—						—			—						164			158
Total liabilities			40,205			39,000						9,188			9,367						213			211						6,882			6,977						56,488			55,555
Common stockholders' equity, excluding AOCI*			14,436			13,997						4,604			4,565						466			451						(2,166)			(1,961)						17,340			17,052
Preferred stock			—			—						—			—						—			—						334			334						334			334
AOCI, net of tax			1,561			1,959						643			800						—			—						(1,634)			(1,589)						570			1,170
Total stockholders' equity			15,997			15,956						5,247			5,365						466			451						(3,466)			(3,216)						18,244			18,556
Total liabilities and stockholders' equity			$	56,202		$	54,956					$	14,435		$	14,732					$	679		$	662					$	3,416		$	3,761					$	74,732		$	74,111

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.7 billion and $1.8 billion as of June 30, 2021 and December 31, 2020, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.

[2]Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold.

[3]Related to the sale of Continental Europe Operations classified as held for sale beginning in the third quarter of 2020.

4

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
DEBT
Senior notes			$	3,264		$	3,263		$	3,262		$	3,261		$	3,260		3,260
Junior subordinated debentures			1,090			1,090			1,090			1,090			1,090			1,089
Total debt			$	4,354		$	4,353		$	4,352		$	4,351		$	4,350		$	4,349
STOCKHOLDERS’ EQUITY
Total stockholders’ equity			$	18,244		$	17,702		$	18,556		$	17,802		$	17,072		$	15,266
Less: Preferred stock			334			334			334			334			334			334
Less: AOCI			570			264			1,170			856			479			(957)
Common stockholders' equity, excluding AOCI			$	17,340		$	17,104		$	17,052		$	16,612		$	16,259		$	15,889
CAPITALIZATION
Total capitalization, including AOCI, net of tax			$	22,598		$	22,055		$	22,908		$	22,153		$	21,422		$	19,615
Total capitalization, excluding AOCI, net of tax*			$	22,028		$	21,791		$	21,738		$	21,297		$	20,943		$	20,572
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI			19.3		%	19.7		%	19.0		%	19.6		%	20.3		%	22.2		%
Total debt to capitalization, excluding AOCI*			19.8		%	20.0		%	20.0		%	20.4		%	20.8		%	21.1		%
Total debt and preferred stock to capitalization, including AOCI			20.7		%	21.3		%	20.5		%	21.1		%	21.9		%	23.9		%
Total debt and preferred stock to capitalization, excluding AOCI*			21.3		%	21.5		%	21.6		%	22.0		%	22.4		%	22.8		%
Total rating agency adjusted debt to capitalization [1] [2]			22.0		%	22.6		%	21.8		%	22.9		%	23.5		%	25.6		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]			10.7:1			4.8:1			8.9:1			8.2:1			7.7:1			5.4:1

[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.9 billion and $1.0 billion as of June 30, 2021 and 2020, respectively.

[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.

[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.

5

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

JUNE 30, 2021

			P&C			GROUP BENEFITS
U.S. statutory net income [1][6]			$	678		$	94
U.S. statutory capital [2][6]			$	11,305		$	2,576
U.S. GAAP adjustments [6]:
DAC			791			36
Non-admitted deferred tax assets [3]			229			169
Deferred taxes [4]			(990)			(581)
Goodwill			129			723
Other intangible assets			62			458
Non-admitted assets other than deferred taxes			810			106
Asset valuation and interest maintenance reserve			—			311
Benefit reserves			(86)			114
Unrealized gains on investments			1,897			868
Deferred gain on retroactive reinsurance agreements [5]			(316)			—
Other, net			979			467
U.S. GAAP stockholders’ equity of U.S. insurance entities [6]			14,810			5,247
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group			1,187			—
Total U.S. GAAP stockholders’ equity			$	15,997		$	5,247

[1]Statutory net income (loss) is for the six months ended June 30, 2021.

[2]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".

[3]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").

[4]Represents the tax timing differences between U.S. GAAP and U.S. STAT.

[5]Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and A&E ADC agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.

[6]Excludes insurance operations in the U.K. and Continental Europe.

6

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

			AS OF
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
Net unrealized gain on fixed maturities, AFS			$	2,204		$	1,909		$	2,834		$	2,431		$	2,055		$	627
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")			(2)			(2)			(2)			(2)			(2)			(2)
Net gains on cash flow hedging instruments			12			17			12			31			48			53
Total net unrealized gain			$	2,214		$	1,924		$	2,844		$	2,460		$	2,101		$	678
Foreign currency translation adjustments			46			44			43			33			27			26
Pension and other postretirement plan adjustments			(1,690)			(1,704)			(1,717)			(1,637)			(1,649)			(1,661)
Total AOCI			$	570		$	264		$	1,170		$	856		$	479		$	(957)

7

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Written premiums			$	3,254		$	3,218		$	2,870		$	2,980		$	2,903		$	3,152											$	6,472		$	6,055
Change in unearned premium reserve			172			249			(128)			(50)			52			113												421			165
Earned premiums			3,082			2,969			2,998			3,030			2,851			3,039												6,051			5,890
Fee income			16			17			17			16			14			17												33			31
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			1,786			1,710			1,747			1,802			1,828			1,806												3,496			3,634
Current accident year catastrophes			128			214			55			229			248			74												342			322
Prior accident year development [2]			(149)			229			184			(75)			(268)			23												80			(245)
Total losses and loss adjustment expenses			1,765			2,153			1,986			1,956			1,808			1,903												3,918			3,711
Amortization of DAC			404			402			405			404			412			420												806			832
Underwriting expenses [3]			561			544			520			539			540			597												1,105			1,137
Amortization of other intangible assets			7			8			7			8			9			8												15			17
Dividends to policyholders			6			6			6			8			7			8												12			15
Underwriting gain (loss)*			355			(127)			91			131			89			120												228			209
Net investment income			442			378			425			371			242			334												820			576
Net realized capital gains (losses)			56			53			54			(21)			74			(173)												109			(99)
Net servicing and other income (expense)			6			2			(3)			(4)			(7)			(3)												8			(10)
Income before income taxes			859			306			567			477			398			278												1,165			676
Income tax expense			155			55			99			73			88			54												210			142
Net income			704			251			468			404			310			224												955			534
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(56)			(51)			(54)			20			(71)			173												(107)			102
Integration and other non-recurring M&A costs, before tax			4			7			8			9			8			8												11			16
Change in deferred gain on retroactive reinsurance, before tax [2]			39			6			215			14			54			29												45			83
Income tax expense (benefit) [4]			(3)			8			(45)			(19)			8			(44)												5			(36)
Core earnings			$	688		$	221		$	592		$	428		$	309		$	390											$	909		$	699
ROE
Net income available to common stockholders [5]			13.8		%	11.5		%	10.6		%	10.2		%	11.0		%	12.7		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(1.2		%)	(1.4		%)	0.6		%	0.6		%	(0.2		%)	(0.2		%)
Loss on reinsurance transaction, before tax			—		%	—		%	—		%	—		%	—		%	1.0		%
Integration and other non-recurring M&A costs, before tax			0.2		%	0.3		%	0.3		%	0.3		%	0.4		%	0.5		%
Changes in loss reserves upon acquisition of a business, before tax			—		%	—		%	—		%	—		%	—		%	1.1		%
Change in deferred gain on retroactive reinsurance, before tax [2]			2.2		%	2.6		%	2.6		%	1.0		%	0.9		%	0.5		%
Income tax expense (benefit) [4]			(0.5		%)	(0.4		%)	(0.8		%)	(0.4		%)	(0.2		%)	(0.6		%)
Impact of AOCI, excluded from core earnings ROE			2.0		%	0.7		%	1.7		%	1.5		%	1.4		%	0.5		%
Core earnings [5]			16.5		%	13.3		%	15.0		%	13.2		%	13.3		%	15.5		%

[1]The three and six months ended June 30, 2021 included $3 and $27 of COVID-19 losses and loss adjustment expenses in Commercial Lines, with $27 of losses in the six month period including $20 in workers' compensation and $7 in financial lines and other. The three and six months ended June 30, 2020 included $213 of COVID-19 losses and loss adjustment expenses, including $141 for commercial property, $37 for financial lines and other and $35 for workers' compensation net of favorable frequency.

[2]Prior accident year development does not include a benefit for the portion of losses ceded to NICO in excess of ceded premium paid under the Navigators and A&E ADC agreements which is recognized as a deferred gain under retroactive reinsurance accounting. See [4] on page 2 for more information.

[3]The three months ended June 30, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($11) and $30, respectively, related to the increasing (lessening) impacts of COVID-19. The six months ended June 30, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($15) and $48, respectively, related to the increasing (lessening) impacts of COVID-19.

[4]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

[5]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.

8

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS (CONTINUED)

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines			$	—		$	—		$	—		$	—		$	22		$	5											$	—		$	27
Auto liability - Personal Lines			(20)			(23)			(8)			(32)			(15)			(6)												(43)			(21)
Homeowners			4			(3)			4			3			2			(2)												1			—
Marine			(5)			6			2			—			1			—												1			1
Professional liability			(6)			(1)			2			(21)			4			1												(7)			5
Package business			(19)			(27)			(34)			(18)			(7)			1												(46)			(6)
General liability [1]			—			307			125			(2)			102			12												307			114
Bond			(14)			—			(9)			—			(10)			—												(14)			(10)
Assumed Reinsurance			(2)			2			1			—			(7)			—												—			(7)
Commercial property			(7)			(13)			2			(4)			5			(7)												(20)			(2)
Net asbestos reserves			—			—			(2)			—			—			—												—			—
Workers’ compensation			(43)			(40)			(38)			(34)			(21)			(17)												(83)			(38)
Workers' compensation discount accretion			9			9			8			9			9			9												18			18
Catastrophes [2]			(82)			(16)			(116)			—			(400)			(13)												(98)			(413)
Uncollectible reinsurance			(1)			(9)			—			(6)			(2)			—												(10)			(2)
Other reserve re-estimates			(2)			31			32			16			(5)			11												29			6
Prior accident year development before change in deferred gain			(188)			223			(31)			(89)			(322)			(6)												35			(328)
Change in deferred gain on retroactive reinsurance included in other liabilities [3]			39			6			215			14			54			29												45			83
Total prior accident year development			$	(149)		$	229		$	184		$	(75)		$	(268)		$	23											$	80		$	(245)

[1]The six months ended June 30, 2021 include an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America ("BSA"). For the three and six months ended June 30, 2020, general liability reserve development included a reserve increase of $102 for sexual molestation and sexual abuse claims.

[2]For the three and six months ended June 30, 2020, catastrophe reserve development included a $289 subrogation benefit related to 2017 and 2018 California wildfires, including $260 in Personal Lines and $29 in Commercial Lines.

[3]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. For the three and six months ended June 30, 2021, an increase in deferred gain of $39 and $45, respectively, was recognized relating to ceding losses to the Navigators ADC in excess of ceded premium paid. For the three months ended June 30, 2021, adverse development on Navigators 2018 and prior accident year reserves was primarily driven by public and private directors' and officers' insurance. For the three months ended June 30, 2020, the $54 of adverse development due to the increase in the deferred gain primarily included increased reserves for construction account business within general liability, professional liability, and assumed reinsurance. For the three months ended December 31, 2020, the $215 increase in the deferred gain primarily represented adverse development for A&E of $210 in excess of the ceded premium paid for the A&E ADC.

9

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
UNDERWRITING GAIN (LOSS)			$	355		$	(127)		$	91		$	131		$	89		$	120											$	228		$	209
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			57.9			57.6			58.3			59.5			64.1			59.4												57.8			61.7
Current accident year catastrophes			4.2			7.2			1.8			7.6			8.7			2.4												5.7			5.5
Prior accident year development [2]			(4.8)			7.7			6.1			(2.5)			(9.4)			0.8												1.3			(4.2)
Total losses and loss adjustment expenses			57.3			72.5			66.2			64.6			63.4			62.6												64.7			63.0
Expenses [3][4]			31.0			31.6			30.5			30.9			33.2			33.2												31.3			33.2
Policyholder dividends			0.2			0.2			0.2			0.3			0.2			0.3												0.2			0.3
Combined ratio			88.5			104.3			97.0			95.7			96.9			96.1												96.2			96.5
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			0.6			(14.9)			(7.9)			(5.1)			0.7			(3.2)												(7.0)			(1.3)
Underlying combined ratio *			89.2			89.4			89.0			90.6			97.6			92.9												89.3			95.1

[1]The three months ended June 30, 2021 and 2020 included 0.1 points and 7.5 points, respectively, and the six months ended June 30, 2021 and 2020 included 0.4 points and 3.6 points, respectively, of COVID-19 losses. See [1] on page 8.

[2]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance.

[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.

[4]The three and six months ended June 30, 2021 included a decrease in the ACL on premiums receivable of $11 and $15 respectively, related to the lessening impacts of COVID-19 representing 0.4 points and 0.2 points of the expense ratio, respectively. The three and six months ended June 30, 2020 included an increase in the ACL on premiums receivable of $30 and $48 respectively, due to the economic impacts of COVID-19 representing 1.1 points and 0.8 points of the expense ratio, respectively.

10

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Written premiums			$	2,494		$	2,503		$	2,197		$	2,199		$	2,165		$	2,408											$	4,997		$	4,573
Change in unearned premium reserve			150			268			(40)			(52)			8			143												418			151
Earned premiums			2,344			2,235			2,237			2,251			2,157			2,265												4,579			4,422
Fee income			8			9			9			8			5			8												17			13
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			1,339			1,296			1,307			1,366			1,472			1,343												2,635			2,815
Current accident year catastrophes			93			175			42			107			193			55												268			248
Prior accident year development [2]			(105)			238			(17)			(57)			77			41												133			118
Total losses and loss adjustment expenses			1,327			1,709			1,332			1,416			1,742			1,439												3,036			3,181
Amortization of DAC			346			344			346			344			351			356												690			707
Underwriting expenses			405			394			373			391			387			443												799			830
Amortization of other intangible assets			7			7			6			8			7			7												14			14
Dividends to policyholders			6			6			6			8			7			8												12			15
Underwriting gain (loss)			261			(216)			183			92			(332)			20												45			(312)
Net servicing income			7			2			2			1			—			1												9			1
Net investment income			382			327			363			316			204			277												709			481
Net realized capital gains (losses)			47			44			45			(26)			64			(143)												91			(79)
Other expenses			(6)			(4)			(10)			(8)			(11)			(6)												(10)			(17)
Income (loss) before income taxes			691			153			583			375			(75)			149												844			74
Income tax expense (benefit)			122			24			105			52			(9)			28												146			19
Net income (loss)			569			129			478			323			(66)			121												698			55
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(47)			(43)			(46)			25			(61)			143												(90)			82
Integration and other non-recurring M&A costs, before tax [3]			4			7			8			9			8			8												11			16
Change in deferred gain on retroactive reinsurance, before tax [2]			39			6			5			14			54			29												45			83
Income tax expense (benefit) [4]			(5)			6			(1)			(22)			8			(39)												1			(31)
Core earnings (losses)			$	560		$	105		$	444		$	349		$	(57)		$	262											$	665		$	205

[1]See [1] on page 8 for impact related to COVID-19.

[2]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance.

[3]Includes Navigators Group integration costs.

[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.

11

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

Prior accident year development included the following unfavorable (favorable) reserve development:

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Auto liability			$	—		$	—		$	—		$	—		$	22		$	5											$	—		$	27
Professional liability			(6)			(1)			2			(21)			4			1												(7)			5
Package business			(19)			(27)			(34)			(18)			(7)			1												(46)			(6)
General liability			—			307			125			(2)			102			12												307			114
Marine			(5)			6			2			—			1			—												1			1
Bond			(14)			—			(9)			—			(10)			—												(14)			(10)
Assumed Reinsurance			(2)			2			1			—			(7)			—												—			(7)
Commercial property			(7)			(13)			2			(4)			5			(7)												(20)			(2)
Workers’ compensation			(43)			(40)			(38)			(34)			(21)			(17)												(83)			(38)
Workers' compensation discount accretion			9			9			8			9			9			9												18			18
Catastrophes			(53)			(4)			(77)			—			(67)			(5)												(57)			(72)
Uncollectible reinsurance			—			(5)			—			—			—			—												(5)			—
Other reserve re-estimates			(4)			(2)			(4)			(1)			(8)			13												(6)			5
Prior accident year development before change in deferred gain			(144)			232			(22)			(71)			23			12												88			35
Change in deferred gain on retroactive reinsurance included in other liabilities [1]			39			6			5			14			54			29												45			83
Total prior accident year development			$	(105)		$	238		$	(17)		$	(57)		$	77		$	41											$	133		$	118

[1]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.

12

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS 

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
UNDERWRITING GAIN (LOSS)			$	261		$	(216)		$	183		$	92		$	(332)		$	20											$	45		$	(312)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			57.1			58.0			58.4			60.7			68.2			59.3												57.5			63.7
Current accident year catastrophes			4.0			7.8			1.9			4.8			8.9			2.4												5.9			5.6
Prior accident year development [2]			(4.5)			10.6			(0.8)			(2.5)			3.6			1.8												2.9			2.7
Total losses and loss adjustment expenses			56.6			76.5			59.5			62.9			80.8			63.5												66.3			71.9
Expenses [3] [4]			32.0			32.9			32.0			32.7			34.3			35.2												32.5			34.8
Policyholder dividends			0.3			0.3			0.3			0.4			0.3			0.4												0.3			0.3
Combined ratio [2] [5]			88.9			109.7			91.8			95.9			115.4			99.1												99.0			107.1
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			0.5			(18.4)			(1.1)			(2.3)			(12.5)			(4.2)												(8.8)			(8.3)
Underlying combined ratio			89.4			91.2			90.7			93.7			102.9			94.9												90.3			98.8
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio			83.6			95.4			80.2			89.5			97.4			93.2												89.4			95.3
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(3.8)			(12.1)			(2.9)			(5.5)			(13.2)			(2.6)												(7.8)			(7.8)
Prior accident year development			7.2			5.0			9.7			3.7			8.7			(1.3)												6.1			3.6
Underlying combined ratio			87.0			88.3			87.0			87.7			92.9			89.3												87.6			91.1
MIDDLE & LARGE COMMERCIAL
Combined ratio			92.9			98.9			86.5			101.2			124.3			103.8												95.8			113.7
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(5.8)			(7.0)			0.2			(5.1)			(9.8)			(3.6)												(6.4)			(6.6)
Prior accident year development			4.4			3.3			6.3			1.6			(1.6)			0.2												3.9			(0.7)
Underlying combined ratio			91.5			95.3			93.0			97.7			112.9			100.4												93.3			106.4
GLOBAL SPECIALTY
Combined ratio [2] [5]			91.9			92.4			95.1			99.6			113.8			102.2												92.1			108.1
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(1.8)			(2.2)			(3.0)			(3.2)			(1.2)			(0.6)												(2.0)			(0.9)
Prior accident year development [2]			0.1			(0.3)			1.3			1.8			(7.1)			(5.2)												(0.1)			(6.2)
Underlying combined ratio			90.3			89.9			93.3			98.2			105.5			96.4												90.1			101.0

[1]The three months ended June 30, 2021 and 2020 included COVID-19 losses of 0.1 points and 9.9 points, respectively, and the six months ended June 30, 2021 and 2020 included COVID-19 losses of 0.6 points and 4.8 points, respectively. See [1] on page 8.

[2]See [4] on page 2 for discussion related to the change in deferred gain on retroactive reinsurance for the three and six months ended June 30, 2021 and 2020.

[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.

[4]The three and six months ended June 30, 2021 included a before tax decrease in the ACL on premiums receivable primarily related to the lessening impacts of COVID-19 of $8 and $12, respectively, representing 0.3 points and 0.3 points, respectively, of the expense ratio. The three and six months ended June 30, 2020 included a before-tax increase in the ACL on premiums receivable related to the increasing impacts of COVID-19 of $27 and $44, respectively, representing 1.3 points and 1.0 points, respectively, of the expense ratio.

[5]The three and six months ended June 30, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $39 and $45, respectively, representing 1.7 points and 1.0 points, respectively, of the Commercial Lines combined ratio and 6.6 points and 3.9 points, respectively, of the global specialty combined ratio. The three and six months ended June 30, 2020 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $54 and $83, respectively, representing 2.5 points and 1.9 points, respectively, of the Commercial Lines combined ratio and 9.7 points and 7.5 points, respectively, of the global specialty combined ratio.

13

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
WRITTEN PREMIUMS
Small Commercial			$	977		$	1,053		$	873		$	890		$	877		$	1,011											$	2,030		$	1,888
Middle & Large Commercial			817			775			746			750			683			797												1,592			1,480
Middle Market			720			662			647			653			609			680												1,382			1,289
National Accounts and Other			97			113			99			97			74			117												210			191
Global Specialty [1]			689			665			568			549			595			589												1,354			1,184
U.S.			466			421			395			395			389			379												887			768
International			113			110			107			88			119			98												223			217
Global Re			110			134			66			66			87			112												244			199
Other			11			10			10			10			10			11												21			21
Total			$	2,494		$	2,503		$	2,197		$	2,199		$	2,165		$	2,408											$	4,997		$	4,573
EARNED PREMIUMS
Small Commercial			$	956		$	916		$	908		$	935		$	877		$	930											$	1,872		$	1,807
Middle & Large Commercial			788			752			742			749			713			772												1,540			1,485
Middle Market			682			653			649			646			625			673												1,335			1,298
National Accounts and Other			106			99			93			103			88			99												205			187
Global Specialty [1]			589			556			577			555			557			552												1,145			1,109
U.S.			406			386			386			387			368			374												792			742
International			99			102			99			101			117			112												201			229
Global Re			84			68			92			67			72			66												152			138
Other			11			11			10			12			10			11												22			21
Total			$	2,344		$	2,235		$	2,237		$	2,251		$	2,157		$	2,265											$	4,579		$	4,422
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium			$	170		$	176		$	153		$	129		$	118		$	157											$	346		$	275
Renewal Written Price Increases			2.9		%	2.3		%	2.1		%	1.6		%	1.8		%	2.3		%										2.6		%	2.0		%
Policy Count Retention [2]			84		%	84		%	83		%	84		%	83		%	83		%										84		%	83		%
Policy Count Retention, Net of Cancellations [2] [3]			82		%	86		%	84		%	79		%	88		%	84		%										84		%	86		%
Policies in Force (in thousands)			1,329			1,304			1,283			1,278			1,297			1,291
Middle Market [4]
Net New Business Premium			$	147		$	122		$	124		$	131		$	99		$	125											$	269		$	224
Renewal Written Price Increases			6.1		%	6.2		%	7.6		%	8.1		%	7.4		%	7.6		%										6.1		%	7.5		%
Policy Count Retention [2]			82		%	80		%	77		%	79		%	78		%	79		%										81		%	79		%
Policy Count Retention, Net of Cancellations [2]			81		%	81		%	77		%	77		%	79		%	77		%										81		%	78		%
Policies in Force (in thousands)			59			58			59			59			60			62
Global Specialty
Gross New Business Premium [5]			$	237		$	216		$	184		$	185		$	186		$	197											$	453		$	383
U.S. - Renewal Written Price Increases			11.4		%	15.5		%	18.5		%	20.5		%	19.2		%	11.5		%										13.2		%	15.6		%
International - Renewal Written Price Increases [6]			23.8		%	26.6		%	48.8		%	53.3		%	47.4		%	21.9		%										25.3		%	34.0		%

[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure"). International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.

[2]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations, represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar period.

[3]Policy count retention, net of cancellations for small commercial increased in the three month period ended June 30, 2020 largely due to suspension of cancellations for non-payment of premium as a result of providing policyholders additional time to pay their premium.

[4]Middle market disclosures exclude loss sensitive and programs businesses.

[5]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.

[6]Excludes offshore energy policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 delegates underwriting authority to coverholders and other third parties.

14

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Written premiums [1]			$	760		$	715		$	673		$	781		$	738		$	744											$	1,475		$	1,482
Change in unearned premium reserve			22			(19)			(88)			2			44			(30)												3			14
Earned premiums [1]			738			734			761			779			694			774												1,472			1,468
Fee income			8			8			8			8			9			9												16			18
Losses and loss adjustment expenses
Current accident year before catastrophes			447			414			440			436			356			463												861			819
Current accident year catastrophes			35			39			13			122			55			19												74			74
Prior accident year development			(44)			(42)			(42)			(29)			(349)			(18)												(86)			(367)
Total losses and loss adjustment expenses			438			411			411			529			62			464												849			526
Amortization of DAC			58			58			59			60			61			64												116			125
Underwriting expenses			154			148			144			146			150			151												302			301
Amortization of other intangible assets			—			1			1			—			2			1												1			3
Underwriting gain			96			124			154			52			428			103												220			531
Net servicing income			5			4			4			5			3			2												9			5
Net investment income			40			35			47			41			28			41												75			69
Net realized capital gains (losses)			6			7			7			3			8			(23)												13			(15)
Other income (expense)			—			—			—			(2)			1			—												—			1
Income before income taxes			147			170			212			99			468			123												317			591
Income tax expense			29			35			42			20			97			25												64			122
Net income			118			135			170			79			371			98												253			469
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(6)			(6)			(6)			(3)			(8)			23												(12)			15
Income tax expense (benefit) [2]			1			2			—			1			1			(4)												3			(3)
Core earnings			$	113		$	131		$	164		$	77		$	364		$	117											$	244		$	481

[1]Written and earned premiums for the three months ended June 30, 2020 included a reduction of $81 for automobile premium credits given to policyholders because of the reduction in miles driven resulting from shelter-in-place guidelines due to COVID-19.

[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

15

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS (CONTINUED)

Prior accident year development included the following unfavorable (favorable) reserve development:

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Auto liability			$	(20)		$	(23)		$	(8)		$	(32)		$	(15)		$	(6)											$	(43)		$	(21)
Homeowners			4			(3)			4			3			2			(2)												1			—
Catastrophes [1]			(29)			(12)			(39)			—			(333)			(8)												(41)			(341)
Other reserve re-estimates, net			1			(4)			1			—			(3)			(2)												(3)			(5)
Total prior accident year development			$	(44)		$	(42)		$	(42)		$	(29)		$	(349)		$	(18)											$	(86)		$	(367)

[1]The three months ended June 30, 2020 included reductions in catastrophe reserves for various 2018 and 2019 wind and hail events and for the 2017 and 2018 California wildfires, including a $260 subrogation benefit from PG&E. See note [2] on page 9 for further discussion.

16

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
UNDERWRITING GAIN			$	96		$	124		$	154		$	52		$	428		$	103											$	220		$	531
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes			60.6			56.4			57.8			56.0			51.3			59.8												58.5			55.8
Current accident year catastrophes			4.7			5.3			1.7			15.7			7.9			2.5												5.0			5.0
Prior accident year development [1]			(6.0)			(5.7)			(5.5)			(3.7)			(50.3)			(2.3)												(5.8)			(25.0)
Total losses and loss adjustment expenses			59.3			56.0			54.0			67.9			8.9			59.9												57.7			35.8
Expenses			27.6			27.1			25.8			25.4			29.4			26.7												27.4			28.0
Combined ratio			87.0			83.1			79.8			93.3			38.3			86.7												85.1			63.8
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			1.3			0.4			3.8			(12.0)			42.4			(0.2)												0.8			20.0
Underlying combined ratio			88.2			83.5			83.6			81.4			80.7			86.6												85.9			83.8
PRODUCT
Automobile
Combined ratio			89.2			83.5			88.3			81.3			82.5			89.8												86.3			86.4
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(1.3)			(0.5)			(0.5)			(1.5)			(1.8)			(0.3)												(0.9)			(1.0)
Prior accident year development			4.2			3.3			1.9			5.2			5.6			1.5												3.8			3.4
Underlying combined ratio			92.1			86.3			89.6			84.9			86.3			90.9												89.2			88.8
Homeowners
Combined ratio			82.0			86.8			60.3			122.9			(45.8)			79.2												84.4			16.7
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(12.8)			(15.9)			(4.5)			(47.7)			(20.1)			(7.0)												(14.3)			(13.6)
Prior accident year development			10.0			6.3			14.0			(1.2)			136.0			4.0												8.1			70.0
Underlying combined ratio			79.2			77.2			69.9			74.0			70.1			76.2												78.2			73.1

[1]See note [1] on page 16 for explanation of the favorable prior accident year development in the three months ended June 30, 2020.

17

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct			$	653		$	612		$	564		$	666		$	627		$	627											$	1,265		$	1,254
AARP Agency			51			51			53			53			50			57												102			107
Other Agency			50			45			51			54			54			52												95			106
Other			6			7			5			8			7			8												13			15
Total			$	760		$	715		$	673		$	781		$	738		$	744											$	1,475		$	1,482
EARNED PREMIUMS
AARP Direct			$	629		$	623		$	644		$	657		$	581		$	647											$	1,252		$	1,228
AARP Agency			53			53			56			56			52			60												106			112
Other Agency			50			51			54			57			54			60												101			114
Other			6			7			7			9			7			7												13			14
Total			$	738		$	734		$	761		$	779		$	694		$	774											$	1,472		$	1,468
PRODUCT LINE
WRITTEN PREMIUMS
Automobile			$	515		$	508		$	459		$	529		$	481		$	534											$	1,023		$	1,015
Homeowners			245			207			214			252			257			210												452			467
Total			$	760		$	715		$	673		$	781		$	738		$	744											$	1,475		$	1,482
EARNED PREMIUMS
Automobile			$	509		$	507		$	525		$	541		$	456		$	536											$	1,016		$	992
Homeowners			229			227			236			238			238			238												456			476
Total			$	738		$	734		$	761		$	779		$	694		$	774											$	1,472		$	1,468

18

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile			$	56		$	53		$	45		$	55		$	65		$	58											$	109		$	123
Homeowners			$	16		$	13		$	12		$	16		$	18		$	17											$	29		$	35
Renewal Written Price Increases
Automobile			2.3		%	1.8		%	1.7		%	2.1		%	2.5		%	3.1		%										2.1		%	2.8		%
Homeowners			8.6		%	9.4		%	8.7		%	7.1		%	5.1		%	4.7		%										8.9		%	4.9		%
Policy Count Retention [1]
Automobile			85		%	85		%	85		%	85		%	84		%	84		%										85		%	84		%
Homeowners			85		%	85		%	85		%	85		%	84		%	84		%										85		%	84		%
Policy Count Retention, Net of Cancellations[1] [2]
Automobile			79		%	85		%	84		%	84		%	90		%	86		%										82		%	88		%
Homeowners			81		%	85		%	84		%	84		%	89		%	86		%										83		%	87		%
Policies in Force (in thousands)
Automobile			1,339			1,357			1,369			1,392			1,416			1,410
Homeowners			799			815			826			846			865			868

[1]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar period.

[2]Policy count retention, net of cancellations, increased in the three month period ended June 30, 2020 largely due to suspension of cancellations for non-payment of premium as a result of providing policyholders additional time to pay their premium.

19

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

 

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Losses and loss adjustment expenses
Prior accident year development			$	—		$	33		$	243		$	11		$	4		$	—											$	33		$	4
Total losses and loss adjustment expenses			—			33			243			11			4			—												33			4
Underwriting expenses			2			2			3			2			3			3												4			6
Underwriting loss			(2)			(35)			(246)			(13)			(7)			(3)												(37)			(10)
Net investment income			20			16			15			14			10			16												36			26
Net realized capital gains (losses)			3			2			2			2			2			(7)												5			(5)
Other income			—			—			1			—			—			—												—			—
Income (loss) before income taxes			21			(17)			(228)			3			5			6												4			11
Income tax expense (benefit)			4			(4)			(48)			1			—			1												—			1
Net income (loss)			17			(13)			(180)			2			5			5												4			10
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax			(3)			(2)			(2)			(2)			(2)			7												(5)			5
Change in deferred gain on retroactive reinsurance, before tax			—			—			210			—			—			—												—			—
Income tax expense (benefit) [1]			1			—			(44)			2			(1)			(1)												1			(2)
Core earnings (losses)			$	15		$	(15)		$	(16)		$	2		$	2		$	11											$	—		$	13

[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

20

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Earned premiums			$	1,378		$	1,374		$	1,318		$	1,317		$	1,378		$	1,348											$	2,752		$	2,726
Fee income			49			44			43			44			45			43												93			88
Net investment income			136			127			124			117			92			115												263			207
Net realized capital gains (losses)			28			19			18			9			3			(8)												47			(5)
Total revenues			1,591			1,564			1,503			1,487			1,518			1,498												3,155			3,016
Benefits, losses and loss adjustment expenses [1]			1,019			1,196			1,092			1,005			1,033			1,007												2,215			2,040
Amortization of DAC			10			11			11			13			13			13												21			26
Insurance operating costs and other expenses [2]			340			339			317			312			340			339												679			679
Amortization of other intangible assets			10			10			10			10			9			11												20			20
Total benefits, losses and expenses			1,379			1,556			1,430			1,340			1,395			1,370												2,935			2,765
Income before income taxes			212			8			73			147			123			128												220			251
Income tax expense (benefit)			42			(1)			14			28			22			24												41			46
Net income			170			9			59			119			101			104												179			205
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(28)			(18)			(17)			(9)			(2)			8												(46)			6
Integration and other non-recurring M&A costs, before tax			2			2			3			5			5			5												4			10
Income tax expense (benefit) [3]			5			4			4			1			(2)			(2)												9			(4)
Core earnings (losses)			$	149		$	(3)		$	49		$	116		$	102		$	115											$	146		$	217
Margin
Net income margin			10.7		%	0.6		%	3.9		%	8.0		%	6.7		%	6.9		%										5.7		%	6.8		%
Core earnings margin*			9.5		%	(0.2		%)	3.3		%	7.9		%	6.9		%	7.8		%										4.7		%	7.3		%
ROE
Net income available to common stockholders [4]			7.6		%	6.4		%	8.3		%	11.0		%	12.0		%	13.4		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(1.8		%)	(1.2		%)	(0.5		%)	(0.3		%)	(0.4		%)	(0.6		%)
Integration and other non-recurring M&A costs, before tax			0.3		%	0.4		%	0.4		%	0.6		%	0.7		%	0.9		%
Income tax expense (benefit) [3]			0.3		%	0.2		%	—		%	(0.1		%)	(0.1		%)	(0.1		%)
Impact of AOCI, excluded from core earnings ROE			1.1		%	0.5		%	1.4		%	1.8		%	1.5		%	0.6		%
Core earnings [4]			7.5		%	6.3		%	9.6		%	13.0		%	13.7		%	14.2		%

[1]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $25 and $45, respectively, for the three months ended June 30, 2021 and 2020 and $210 and $45, respectively, for the six months ended June 30, 2021 and 2020. The $25 of excess mortality losses in second quarter of 2021 included $88 of losses with dates of loss in the second quarter, a $59 reduction in estimated losses from the first accident quarter of 2021 and a $4 reduction of estimated losses from the 2020 accident year. Also includes COVID-19 related losses (benefit) from short-term disability and New York Paid Family Leave claims of $(6) and $(16), respectively, for the three months ended June 30, 2021 and 2020 and $7 and $0, respectively, for the six months ended June 30, 2021 and 2020.

[2]The three months ended June 30, 2021 and 2020 included $1 and $14, respectively, of before tax increases in the ACL on uncollectible premiums receivable and the six months ended June 30, 2021 and 2020 included increases (decreases) of $(3) and $16, respectively.

[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.

21

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA

 

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
PREMIUMS
Fully insured ongoing premiums
Group disability			$	696		$	693		$	646		$	652		$	672		$	660											$	1,389		$	1,332
Group life			603			602			601			594			605			605												1,205			1,210
Other [1]			79			77			70			70			72			58												156			130
Total fully insured ongoing premiums			1,378			1,372			1,317			1,316			1,349			1,323												2,750			2,672
Total buyouts [2]			—			2			1			1			29			25												2			54
Total premiums			$	1,378		$	1,374		$	1,318		$	1,317		$	1,378		$	1,348											$	2,752		$	2,726
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability			$	44		$	321		$	28		$	55		$	65		$	213											$	365		$	278
Group life			43			151			15			69			73			136												194			209
Other [1]			12			40			6			10			11			36												52			47
Total fully insured ongoing sales			99			512			49			134			149			385												611			534
Total buyouts [2]			—			2			1			1			29			25												2			54
Total sales			$	99		$	514		$	50		$	135		$	178		$	410											$	613		$	588
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]			64.2		%	68.4		%	65.1		%	65.3		%	62.6		%	71.5		%										66.3		%	67.0		%
Group life loss ratio [4]			83.6		%	108.3		%	102.0		%	87.5		%	85.9		%	74.6		%										96.0		%	80.3		%
Total loss ratio			71.4		%	84.3		%	80.2		%	73.8		%	72.0		%	71.9		%										77.8		%	72.0		%
Expense ratio [5]			25.1		%	25.3		%	24.6		%	24.3		%	25.6		%	26.2		%										25.2		%	25.9		%

[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.

[2]Takeover of open claim liabilities and other non-recurring premium amounts. The six months ended June 30, 2020 included buyout premiums primarily from two large accounts.

[3]Includes losses (benefits) on short-term disability and New York Paid Family Leave claims related to COVID-19 of (0.8) points and (2.2) points, respectively, for the three months ended June 30, 2021 and 2020 and 0.5 points for the six months ended June 30, 2021.

[4]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 4.1 points and 7.4 points, respectively, for the three months ended June 30, 2021 and 2020 and 17.4 points and 3.7 points, respectively, for the six months ended June 30, 2021 and 2020.

[5]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.

22

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

INCOME STATEMENTS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Investment management fees			$	221		$	208		$	194		$	182		$	165		$	178											$	429		$	343
Shareholder servicing fees			25			24			22			22			20			22												49			42
Other revenue			50			51			50			47			43			48												101			91
Net realized capital gains (losses)			2			2			6			5			8			(11)												4			(3)
Total revenues			298			285			272			256			236			237												583			473
Sub-advisory expense			81			75			70			66			60			64												156			124
Employee compensation and benefits			33			37			30			29			28			32												70			60
Distribution and service			92			90			84			82			75			80												182			155
General, administrative and other [1]			25			25			23			24			23			17												50			40
Total expenses			231			227			207			201			186			193												458			379
Income before income taxes			67			58			65			55			50			44												125			94
Income tax expense			15			11			14			11			11			8												26			19
Net income			$	52		$	47		$	51		$	44		$	39		$	36											$	99		$	75
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(2)			(2)			(6)			(5)			(8)			11												(4)			3
Income tax expense (benefit) [2]			1			—			1			1			2			(3)												1			(1)
Core earnings			$	51		$	45		$	46		$	40		$	33		$	44											$	96		$	77
Daily average Hartford Funds AUM			$	150,527		$	143,164		$	130,485		$	122,528		$	110,864		$	119,632											$	146,866		$	115,248
Return on assets (bps, net of tax) [3]
Net income			13.8			13.1			15.6			14.4			14.1			12.0												13.5			13.0
Core earnings*			13.6			12.6			14.1			13.1			11.9			14.7												13.1			13.4
ROE
Net income available to common stockholders [4]			54.3		%	52.9		%	49.9		%	48.2		%	48.2		%	50.2		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains) excluded from core earnings, before tax			(4.3		%)	(6.3		%)	(2.4		%)	(0.9		%)	0.3		%	3.0		%
Income tax expense (benefit) [2]			0.9		%	1.2		%	0.3		%	—		%	(0.3		%)	(1.0		%)
Impact of AOCI, excluded from core earnings ROE			0.3		%	(0.2		%)	0.3		%	0.3		%	0.1		%	(0.7		%)
Core earnings [4]			51.2		%	47.6		%	48.1		%	47.6		%	48.3		%	51.5		%

[1]The six months ended June 30, 2020 included a $12 reduction in contingent consideration payable related to the 2016 acquisition of Lattice Strategies.

[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

[3]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.

[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.

23

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

ASSET VALUE ROLLFORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Equity Funds
Beginning balance			$	87,456		$	82,123		$	70,649		$	66,838		$	55,076		$	71,629											$	82,123		$	71,629
Sales			5,927			6,202			4,303			3,545			5,038			5,313												12,129			10,351
Redemptions			(4,461)			(5,191)			(4,873)			(5,102)			(5,083)			(5,701)												(9,652)			(10,784)
Net flows			1,466			1,011			(570)			(1,557)			(45)			(388)												2,477			(433)
Change in market value and other			4,526			4,322			12,044			5,368			11,807			(16,165)												8,848			(4,358)
Ending balance			$	93,448		$	87,456		$	82,123		$	70,649		$	66,838		$	55,076											$	93,448		$	66,838
Fixed Income Funds
Beginning balance			$	17,705		$	17,034		$	15,655		$	14,771		$	14,558		$	16,130											$	17,034		$	16,130
Sales			2,098			2,258			2,108			1,640			1,667			1,782												4,356			3,449
Redemptions			(1,121)			(1,486)			(1,142)			(1,121)			(2,241)			(2,632)												(2,607)			(4,873)
Net flows			977			772			966			519			(574)			(850)												1,749			(1,424)
Change in market value and other			231			(101)			413			365			787			(722)												130			65
Ending balance			$	18,913		$	17,705		$	17,034		$	15,655		$	14,771		$	14,558											$	18,913		$	14,771
Multi-Strategy Investments Funds [1]
Beginning balance			$	22,170		$	22,645		$	21,116		$	20,526		$	18,407		$	21,332											$	22,645		$	21,332
Sales			629			738			688			693			801			1,026												1,367			1,827
Redemptions			(718)			(1,751)			(798)			(841)			(733)			(1,145)												(2,469)			(1,878)
Net flows			(89)			(1,013)			(110)			(148)			68			(119)												(1,102)			(51)
Change in market value and other			958			538			1,639			738			2,051			(2,806)												1,496			(755)
Ending balance			$	23,039		$	22,170		$	22,645		$	21,116		$	20,526		$	18,407											$	23,039		$	20,526
Exchange-traded Products ("ETP") AUM
Beginning balance			$	2,923		$	2,825		$	2,621		$	2,586		$	2,574		$	3,442											$	2,825		$	3,442
Net flows			86			4			(5)			(80)			(124)			(67)												90			(191)
Change in market value and other			102			94			209			115			136			(801)												196			(665)
Ending balance			$	3,111		$	2,923		$	2,825		$	2,621		$	2,586		$	2,574											$	3,111		$	2,586
Mutual Fund and ETP AUM
Beginning balance			$	130,254		$	124,627		$	110,041		$	104,721		$	90,615		$	112,533											$	124,627		$	112,533
Sales - mutual fund			8,654			9,198			7,099			5,878			7,506			8,121												17,852			15,627
Redemptions - mutual fund			(6,300)			(8,428)			(6,813)			(7,064)			(8,057)			(9,478)												(14,728)			(17,535)
Net flows - ETP			86			4			(5)			(80)			(124)			(67)												90			(191)
Net flows - mutual fund and ETP			2,440			774			281			(1,266)			(675)			(1,424)												3,214			(2,099)
Change in market value and other			5,817			4,853			14,305			6,586			14,781			(20,494)												10,670			(5,713)
Ending balance			138,511			130,254			124,627			110,041			104,721			90,615												138,511			104,721
Talcott Resolution life and annuity separate account AUM [2]			15,282			14,944			14,809			13,669			13,123			11,538												15,282			13,123
Hartford Funds AUM			$	153,793		$	145,198		$	139,436		$	123,710		$	117,844		$	102,153											$	153,793		$	117,844

[1]Includes balanced, allocation, and alternative investment products.

[2]Represents AUM of the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.

24

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

 

			THREE MONTHS ENDED																											SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Fee income [1]			$	14		$	12		$	11		$	13		$	12		$	13											$	26		$	25
Other revenue (loss) [2]			(2)			(8)			(1)			(21)			73			2												(10)			75
Net investment income			3			3			6			3			4			9												6			13
Net realized capital gains (losses)			61			6			24			13			24			(39)												67			(15)
Total revenues			76			13			40			8			113			(15)												89			98
Benefits, losses and loss adjustment expenses [3]			2			1			2			1			6			6												3			12
Insurance operating costs and other expenses [1]			45			13			17			9			29			21												58			50
Interest expense			57			57			57			58			57			64												114			121
Restructuring and other costs			—			11			17			87			—			—												11			—
Total expenses			104			82			93			155			92			91												186			183
Income (loss) before income taxes			(28)			(69)			(53)			(147)			21			(106)												(97)			(85)
Income tax expense (benefit)			(7)			(11)			(12)			(39)			3			(15)												(18)			(12)
Net income (loss)			(21)			(58)			(41)			(108)			18			(91)												(79)			(73)
Preferred stock dividends			5			5			5			6			5			5												10			10
Net income (loss) available to common stockholders			(26)			(63)			(46)			(114)			13			(96)												(89)			(83)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(62)			(6)			(24)			(12)			(26)			40												(68)			14
Integration and other non-recurring M&A costs, before tax [4]			30			—			—			—			—			—												30			—
Restructuring and other costs, before tax			—			11			17			87			—			—												11			—
Income tax expense (benefit) [5]			6			(2)			2			(18)			7			(8)												4			(1)
Core losses			$	(52)		$	(60)		$	(51)		$	(57)		$	(6)		$	(64)											$	(112)		$	(70)

[1]Includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution.

[2]The three months ended June 30, 2021 and 2020 included $(3) and $68, respectively, and the six months ended June 30, 2021 and 2020 included $(11) and $64, of income (loss) before tax from the Company's retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021 and the gain on sale of $46, before tax, is included in realized capital gains (losses) in the three and six months ended June 30, 2021.

[3]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.

[4]See note [3] on page 2 for explanation of the integration and other non-recurring M&A costs in the three months ended June 30, 2021.

[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

25

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	273		$	279		$	280		$	287		$	280		$	298											$	552		$	578
Tax-exempt			65			70			69			72			77			79												135			156
Total fixed maturities			338			349			349			359			357			377												687			734
Equity securities			10			10			12			9			6			12												20			18
Mortgage loans			45			43			44			44			42			42												88			84
Limited partnerships and other alternative investments [2]			191			112			152			83			(71)			58												303			(13)
Other [3]			18			14			19			14			21			(12)												32			9
Subtotal			602			528			576			509			355			477												1,130			832
Investment expense			(21)			(19)			(20)			(17)			(16)			(18)												(40)			(34)
Total net investment income			$	581		$	509		$	556		$	492		$	339		$	459											$	1,090		$	798
Annualized investment yield, before tax [4]			4.4		%	3.8		%	4.3		%	3.8		%	2.7		%	3.7		%										4.1		%	3.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			32.5		%	21.1		%	32.3		%	18.3		%	(15.3		%)	13.2		%										27.8		%	(1.5		%)
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*			3.1		%	3.1		%	3.2		%	3.3		%	3.4		%	3.3		%										3.1		%	3.4		%
Annualized investment yield, net of tax [4]			3.6		%	3.1		%	3.5		%	3.2		%	2.2		%	3.0		%										3.4		%	2.6		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*			2.5		%	2.6		%	2.6		%	2.7		%	2.8		%	2.7		%										2.5		%	2.8		%
Average reinvestment rate [5]			2.5		%	2.3		%	2.5		%	2.1		%	2.7		%	2.9		%										2.4		%	2.8		%
Average sales/maturities yield [6]			2.9		%	2.9		%	3.2		%	3.5		%	3.6		%	3.3		%										2.9		%	3.5		%
Portfolio duration (in years) [7]			4.6			4.8			4.9			5.0			5.0			4.8												4.6			5.0

[1]Includes income on short-term investments.

[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in fixed income, private equity, and hedge funds.

[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value.

[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and repurchase agreement and securities lending collateral, if any.

[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.

[7]Excludes certain short-term investments.

26

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	203		$	207		$	207		$	210		$	206		$	216											$	410		$	422
Tax-exempt			49			52			52			53			57			58												101			115
Total fixed maturities			252			259			259			263			263			274												511			537
Equity securities			8			7			7			6			3			10												15			13
Mortgage loans			32			30			30			31			30			29												62			59
Limited partnerships and other alternative investments [2]			151			84			128			72			(62)			48												235			(14)
Other [3]			15			12			15			12			19			(14)												27			5
Subtotal			458			392			439			384			253			347												850			600
Investment expense			(16)			(14)			(14)			(13)			(11)			(13)												(30)			(24)
Total net investment income			$	442		$	378		$	425		$	371		$	242		$	334											$	820		$	576
Annualized investment yield, before tax [4]			4.5		%	3.9		%	4.4		%	3.9		%	2.6		%	3.6		%										4.2		%	3.1		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			31.4		%	19.2		%	32.9		%	19.2		%	(15.9		%)	13.1		%										26.2		%	(1.8		%)
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.1		%	3.2		%	3.2		%	3.3		%	3.5		%	3.2		%										3.1		%	3.3		%
Annualized investment yield, net of tax [4]			3.7		%	3.2		%	3.6		%	3.3		%	2.2		%	3.0		%										3.5		%	2.6		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			2.6		%	2.6		%	2.6		%	2.7		%	2.9		%	2.7		%										2.6		%	2.8		%
Average reinvestment rate [5]			2.5		%	2.3		%	2.6		%	2.0		%	2.7		%	2.9		%										2.4		%	2.8		%
Average sales/maturities yield [6]			2.9		%	2.8		%	3.0		%	3.4		%	3.5		%	3.2		%										2.8		%	3.4		%
Portfolio duration (in years) [7]			4.5			4.7			4.9			5.0			4.9			4.7												4.5			4.9

Footnotes [1] through [7] are explained on page 26.

27

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	69		$	71		$	72		$	76		$	73		$	76											$	140		$	149
Tax-exempt			15			16			16			17			18			19												31			37
Total fixed maturities			84			87			88			93			91			95												171			186
Equity securities			1			2			1			2			1			1												3			2
Mortgage loans			13			13			14			13			12			13												26			25
Limited partnerships and other alternative investments [2]			40			28			24			11			(9)			10												68			1
Other [3]			3			2			3			2			2			1												5			3
Subtotal			141			132			130			121			97			120												273			217
Investment expense			(5)			(5)			(6)			(4)			(5)			(5)												(10)			(10)
Total net investment income			$	136		$	127		$	124		$	117		$	92		$	115											$	263		$	207
Annualized investment yield, before tax [4]			4.7		%	4.4		%	4.3		%	4.1		%	3.2		%	4.0		%										4.5		%	3.6		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			37.1		%	29.8		%	29.4		%	13.8		%	(12.4		%)	14.0		%										35.0		%	0.3		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.5		%	3.5		%	3.5		%	3.8		%	3.6		%	3.7		%										3.5		%	3.7		%
Annualized investment yield, net of tax [4]			3.8		%	3.5		%	3.5		%	3.3		%	2.6		%	3.3		%										3.7		%	2.9		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			2.8		%	2.9		%	2.9		%	3.1		%	3.0		%	3.0		%										2.8		%	3.0		%
Average reinvestment rate [5]			2.7		%	2.8		%	2.7		%	2.4		%	3.3		%	3.2		%										2.7		%	3.3		%
Average sales/maturities yield [6]			3.4		%	3.3		%	4.0		%	3.8		%	3.9		%	4.0		%										3.3		%	4.0		%
Portfolio duration (in years) [7]			5.7			5.8			6.0			6.2			6.1			5.9												5.7			6.1

Footnotes [1] through [7] are explained on page 26.

28

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

			THREE MONTHS ENDED																											SIX MONTHS ENDED
Net Investment Income by Segment			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020																					Jun 30 2021			Jun 30 2020
Net Investment Income
Commercial Lines			$	382		$	327		$	363		$	316		$	204		$	277																				$	709		$	481
Personal Lines			40			35			47			41			28			41																					75			69
P&C Other Operations			20			16			15			14			10			16																					36			26
Total Property & Casualty			442			378			425			371			242			334																					820			576
Group Benefits			136			127			124			117			92			115																					263			207
Hartford Funds			—			1			1			1			1			1																					1			2
Corporate			3			3			6			3			4			9																					6			13
Total net investment income by segment			$	581		$	509		$	556		$	492		$	339		$	459																				$	1,090		$	798
			THREE MONTHS ENDED																																	SIX MONTHS ENDED
Net Investment Income (Loss) From Limited Partnerships and Other Alternative Investments			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020																					Jun 30 2021			Jun 30 2020
Total Property & Casualty			$	151		$	84		$	128		$	72		$	(62)		$	48																				$	235		$	(14)
Group Benefits			40			28			24			11			(9)			10																					68			1
Total net investment income (loss) from limited partnerships and other alternative investments [1]			$	191		$	112		$	152		$	83		$	(71)		$	58																				$	303		$	(13)

[1]Amounts are included above in total net investment income by segment.

29

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Realized Capital Gains (Losses)
Gross gains on sales			$	68		$	31		$	54		$	27		$	96		$	78											$	99		$	174
Gross losses on sales			(15)			(31)			(8)			(12)			(22)			(8)												(46)			(30)
Equity securities [1]			88			43			55			42			75			(386)												131			(311)
Net credit losses on fixed maturities, AFS			—			4			5			(1)			(20)			(12)												4			(32)
Change in ACL on mortgage loans			10			4			—			5			(22)			(2)												14			(24)
Intent-to-sell impairments			—			—			—			—			—			(5)												—			(5)
Other net gains (losses) [2]			(4)			29			(4)			(55)			2			104												25			106
Total net realized capital gains (losses)			147			80			102			6			109			(231)												227			(122)
Net realized capital gains, included in core earnings, before tax			1			(3)			(1)			—			(2)			(1)												(2)			(3)
Total net realized capital gains (losses) excluded from core earnings, before tax			148			77			101			6			107			(232)												225			(125)
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings			(32)			(15)			(21)			5			(21)			48												(47)			27
Total net realized capital gains (losses) excluded from core earnings, after tax			$	116		$	62		$	80		$	11		$	86		$	(184)											$	178		$	(98)

[1]Includes all changes in fair value and trading gains and losses for equity securities.

[2]Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and equity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation. Includes a realized gain on the sale of the Company's 9.7% retained interest in Talcott Resolution, of $46, before tax, for the three and six months ended June 30, 2021. Also includes realized gains (losses) on the sale of Continental Europe Operations of $(19), $1, $3, and $(51) for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

30

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

			Jun 30 2021						Mar 31 2021						Dec 31 2020						Sept 30 2020						Jun 30 2020
			Amount [1]			Percent			Amount			Percent			Amount [1]			Percent			Amount			Percent			Amount			Percent
Total investments			$	56,787		100.0		%	$	55,727		100.0		%	$	56,532		100.0		%	$	54,778		100.0		%	$	53,028		100.0		%
Asset-backed securities			$	1,321		3.0		%	$	1,435		3.2		%	$	1,564		3.5		%	$	1,490		3.4		%	$	1,416		3.3		%
Collateralized loan obligations			3,100			7.0		%	3,049			7.0		%	2,780			6.2		%	2,449			5.6		%	2,187			5.2		%
Commercial mortgage-backed securities			4,095			9.3		%	4,167			9.5		%	4,484			9.9		%	4,444			10.1		%	4,211			10.0		%
Corporate			19,161			43.5		%	19,495			44.8		%	20,273			45.0		%	19,416			44.1		%	18,563			44.0		%
Foreign government/government agencies			873			2.0		%	868			2.0		%	919			2.0		%	984			2.2		%	972			2.3		%
Municipal [2]			9,161			20.8		%	9,214			21.1		%	9,503			21.1		%	9,310			21.1		%	9,394			22.2		%
Residential mortgage-backed securities			3,520			8.0		%	4,025			9.3		%	4,107			9.2		%	4,548			10.3		%	3,895			9.3		%
U.S. Treasuries			2,792			6.4		%	1,354			3.1		%	1,405			3.1		%	1,403			3.2		%	1,562			3.7		%
Total fixed maturities, AFS			$	44,023		100.0		%	$	43,607		100.0		%	$	45,035		100.0		%	$	44,044		100.0		%	$	42,200		100.0		%
U.S. government/government agencies			$	6,031		13.7		%	$	4,837		11.1		%	$	5,214		11.6		%	$	5,650		12.8		%	$	5,204		12.3		%
AAA			6,350			14.4		%	6,759			15.5		%	6,848			15.2		%	6,789			15.4		%	6,471			15.3		%
AA			8,030			18.2		%	8,327			19.1		%	8,453			18.8		%	8,152			18.5		%	8,013			19.0		%
A			11,175			25.4		%	11,109			25.5		%	11,595			25.7		%	11,414			25.9		%	11,289			26.8		%
BBB			10,145			23.1		%	10,359			23.7		%	10,856			24.1		%	10,291			23.4		%	9,590			22.7		%
BB			1,724			3.9		%	1,604			3.7		%	1,507			3.3		%	1,222			2.8		%	1,112			2.6		%
B			521			1.2		%	557			1.3		%	523			1.2		%	480			1.1		%	481			1.2		%
CCC			41			0.1		%	47			0.1		%	31			0.1		%	37			0.1		%	31			0.1		%
CC & below			6			—		%	8			—		%	8			—		%	9			—		%	9			—		%
Total fixed maturities, AFS			$	44,023		100.0		%	$	43,607		100.0		%	$	45,035		100.0		%	$	44,044		100.0		%	$	42,200		100.0		%

[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).

[2]Primarily comprised of $6.8 billion in Property & Casualty, $2.2 billion in Group Benefits, and $0.2 billion in Corporate as of June 30, 2021.

31

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

JUNE 30, 2021

			Cost or Amortized Cost			Fair Value			Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services			$	4,991		$	5,282		9.3		%
Technology and communications			2,913			3,189			5.6		%
Consumer non-cyclical			2,736			2,953			5.2		%
Utilities			1,937			2,115			3.7		%
Energy [1]			1,547			1,683			3.0		%
Capital goods			1,485			1,591			2.8		%
Consumer cyclical			1,484			1,561			2.8		%
Transportation			758			816			1.4		%
Basic industry			752			802			1.4		%
Other			830			862			1.5		%
Total			$	19,433		$	20,854		36.7		%
Top Ten Exposures by Issuer [2]
Apple Inc.			$	225		$	249		0.4		%
Government of Canada			219			222			0.4		%
IBM Corporation			186			207			0.4		%
Bank of America Corporation			186			205			0.4		%
Comcast Corporation			170			196			0.4		%
New York City Municipal Water Finance Authority			183			194			0.3		%
Morgan Stanley			171			189			0.3		%
New York State Dormitory Authority			175			185			0.3		%
Hyundai Motor Company			172			174			0.3		%
Wells Fargo & Company			163			171			0.3		%
Total			$	1,850		$	1,992		3.5		%

[1]Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of, or exposures to, energy-related companies.

[2]Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exchange-traded mutual funds, and exposures resulting from derivative transactions.

32

---

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

APPENDIX

BASIS OF PRESENTATION AND DEFINITIONS

All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.

The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.

Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 90% of the Company's asbestos and environmental exposures.

Group Benefits provides group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups and associations. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.

Hartford Funds provides investment management, administration, distribution and related services to investors through investment products in domestic markets. Mutual fund and exchange-traded products are sold primarily through retail, bank trust and registered investment advisor channels.

The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").

Certain operating and statistical measures for P&C Commercial Lines and for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include policies in-force, net new business premium, gross new business premium, policy count retention, policy count retention, net of cancellations, and renewal written price increases. Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar period. Renewal written price increases for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits. Net new business premium represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium. Gross new business premium represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium. For global specialty, gross new business premium is used by management, as it is thought to be more indicative of new business growth trends, in part because global specialty includes the Global Re assumed reinsurance book of business.

The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses less fee income to earned premiums. Underwriting expenses included in the expense ratio consists of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and other non-recurring M&A costs. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.

A catastrophe is a severe loss, resulting from natural or man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack, civil unrest and similar events. Each catastrophe has unique characteristics and the events are unpredictable as to timing or loss amount. Catastrophe losses are not included in either earnings or in losses and loss adjustment expense reserves prior to occurrence of the catastrophe event. The Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines catastrophes. The Company does not treat incurred benefits and losses arising from the COVID-19 pandemic as catastrophe losses.

The Company, along with others in the insurance industry, uses loss and expense ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and other non-recurring M&A costs) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.The Hartford Funds segment provides supplemental data on sales, redemptions, net flows and account value that indicate current trends in that segment.

33

---

Table of Contents

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.

Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

•Certain realized capital gains and losses - Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.

•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.

•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.

•Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.

•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.

•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.

•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.

•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.

In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.

Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.

Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.

34

---

Table of Contents

BASIC EARNINGS PER SHARE

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Income available to common stockholders per share			$	2.54		$	0.68		$	1.48		$	1.26		$	1.29		$	0.75											$	3.21		$	2.04
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized capital losses (gains), excluded from core earnings, before tax			(0.42)			(0.21)			(0.28)			(0.02)			(0.30)			0.65												(0.63)			0.35
Restructuring and other costs, before tax			—			0.03			0.05			0.24			—			—												0.03			—
Integration and other non-recurring M&A costs, before tax			0.10			0.03			0.03			0.04			0.04			0.04												0.13			0.07
Change in deferred gain on retroactive reinsurance, before tax			0.11			0.02			0.60			0.04			0.15			0.08												0.13			0.23
Income tax expense (benefit) on items excluded from core earnings			0.03			0.02			(0.11)			(0.09)			0.04			(0.17)												0.05			(0.11)
Core earnings per share			$	2.36		$	0.57		$	1.77		$	1.47		$	1.22		$	1.35											$	2.92		$	2.58

Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.

DILUTED EARNINGS PER SHARE

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net Income available to common stockholders per diluted share			$	2.51		$	0.67		$	1.47		$	1.26		$	1.29		$	0.74											$	3.17		$	2.03
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized capital losses (gains), excluded from core earnings, before tax			(0.41)			(0.21)			(0.28)			(0.02)			(0.30)			0.64												(0.62)			0.35
Restructuring and other costs, before tax			—			0.03			0.05			0.24			—			—												0.03			—
Integration and other non-recurring M&A costs, before tax			0.10			0.02			0.03			0.04			0.04			0.04												0.12			0.07
Change in deferred gain on retroactive reinsurance, before tax			0.11			0.02			0.59			0.04			0.15			0.08												0.12			0.23
Income tax expense (benefit) on items excluded from core earnings			0.02			0.03			(0.10)			(0.10)			0.04			(0.16)												0.06			(0.12)
Core earnings per diluted share			$	2.33		$	0.56		$	1.76		$	1.46		$	1.22		$	1.34											$	2.88		$	2.56

Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.

Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:

35

---

Table of Contents

			LAST TWELVE MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
Net income ROE			12.3		%	10.5		%	10.0		%	10.4		%	11.3		%	11.8		%
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized capital losses (gains), excluded from core earnings, before tax			(1.9		%)	(1.8		%)	0.1		%	0.3		%	(0.2		%)	—		%
Restructuring and other costs, before tax			0.7		%	0.7		%	0.6		%	0.5		%	—		%	—		%
Loss on extinguishment of debt, before tax			—		%	—		%	—		%	—		%	0.6		%	0.6		%
Loss on reinsurance transaction, before tax			—		%	—		%	—		%	—		%	—		%	0.6		%
Integration and other non-recurring M&A costs, before tax			0.4		%	0.3		%	0.3		%	0.4		%	0.5		%	0.6		%
Changes in loss reserves upon acquisition of a business, before tax			—		%	—		%	—		%	—		%	—		%	0.7		%
Change in deferred gain on retroactive reinsurance, before tax			1.6		%	1.8		%	1.8		%	0.7		%	0.6		%	0.3		%
Income tax benefit on items not included in core earnings			(0.3		%)	(0.3		%)	(0.7		%)	(0.4		%)	(0.3		%)	(0.6		%)
Impact of AOCI, excluded from denominator of core earnings ROE			0.3		%	(0.3		%)	0.6		%	0.4		%	0.2		%	(0.7		%)
Core earnings ROE			13.1		%	10.9		%	12.7		%	12.3		%	12.7		%	13.3		%

Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 5.

Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in shareholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.

Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.

Underlying underwriting gain (loss)-This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.

36

---

Table of Contents

PROPERTY & CASUALTY

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income			$	704		$	251		$	468		$	404		$	310		$	224											$	955		$	534
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income			(442)			(378)			(425)			(371)			(242)			(334)												(820)			(576)
Net realized capital losses (gains)			(56)			(53)			(54)			21			(74)			173												(109)			99
Net servicing and other expense (income)			(6)			(2)			3			4			7			3												(8)			10
Income tax expense			155			55			99			73			88			54												210			142
Underwriting gain (loss)			355			(127)			91			131			89			120												228			209
Current accident year catastrophes			128			214			55			229			248			74												342			322
Prior accident year development			(149)			229			184			(75)			(268)			23												80			(245)
Underlying underwriting gain			$	334		$	316		$	330		$	285		$	69		$	217											$	650		$	286

COMMERCIAL LINES

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income			$	569		$	129		$	478		$	323		$	(66)		$	121											$	698		$	55
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income			(7)			(2)			(2)			(1)			—			(1)												(9)			(1)
Net investment income			(382)			(327)			(363)			(316)			(204)			(277)												(709)			(481)
Net realized capital losses (gains)			(47)			(44)			(45)			26			(64)			143												(91)			79
Other expense			6			4			10			8			11			6												10			17
Income tax expense (benefit)			122			24			105			52			(9)			28												146			19
Underwriting gain (loss)			261			(216)			183			92			(332)			20												45			(312)
Current accident year catastrophes			93			175			42			107			193			55												268			248
Prior accident year development			(105)			238			(17)			(57)			77			41												133			118
Underlying underwriting gain (loss)			$	249		$	197		$	208		$	142		$	(62)		$	116											$	446		$	54

37

---

Table of Contents

PERSONAL LINES

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income			$	118		$	135		$	170		$	79		$	371		$	98											$	253		$	469
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income			(5)			(4)			(4)			(5)			(3)			(2)												(9)			(5)
Net investment income			(40)			(35)			(47)			(41)			(28)			(41)												(75)			(69)
Net realized capital losses (gains)			(6)			(7)			(7)			(3)			(8)			23												(13)			15
Other expense (income)			—			—			—			2			(1)			—												—			(1)
Income tax expense			29			35			42			20			97			25												64			122
Underwriting gain			96			124			154			52			428			103												220			531
Current accident year catastrophes			35			39			13			122			55			19												74			74
Prior accident year development			(44)			(42)			(42)			(29)			(349)			(18)												(86)			(367)
Underlying underwriting gain			$	87		$	121		$	125		$	145		$	134		$	104											$	208		$	238

P&C OTHER OPERATIONS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income (loss)			$	17		$	(13)		$	(180)		$	2		$	5		$	5											$	4		$	10
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income			(20)			(16)			(15)			(14)			(10)			(16)												(36)			(26)
Net realized capital losses (gains)			(3)			(2)			(2)			(2)			(2)			7												(5)			5
Other income			—			—			(1)			—			—			—												—			—
Income tax expense (benefit)			4			(4)			(48)			1			—			1												—			1
Underwriting loss			(2)			(35)			(246)			(13)			(7)			(3)												(37)			(10)
Prior accident year development			—			33			243			11			4			—												33			4
Underlying underwriting loss			$	(2)		$	(2)		$	(3)		$	(2)		$	(3)		$	(3)											$	(4)		$	(6)

Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.

38

---

Table of Contents

Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Net income margin			10.7		%	0.6		%	3.9		%	8.0		%	6.7		%	6.9		%										5.7		%	6.8		%
Adjustments to reconcile net income margin to core earnings margin:
Net realized capital losses (gains) excluded from core earnings, before tax			(1.7)		%	(1.1)		%	(1.1)		%	(0.6)		%	(0.1)		%	0.6		%										(1.4)		%	0.2		%
Integration and other non-recurring M&A costs, before tax			0.1		%	0.1		%	0.2		%	0.3		%	0.3		%	0.3		%										0.1		%	0.3		%
Income tax expense (benefit)			0.4		%	0.2		%	0.3		%	0.2		%	(0.1)		%	(0.1)		%										0.3		%	(0.1)		%
Impact of excluding buyouts from denominator of core earnings margin			—		%	—		%	—		%	—		%	0.1		%	0.1		%										—		%	0.1		%
Core earnings margin			9.5		%	(0.2)		%	3.3		%	7.9		%	6.9		%	7.8		%										4.7		%	7.3		%

Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Return on Assets ("ROA")			13.8			13.1			15.6			14.4			14.1			12.0												13.5			13.0
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized capital losses (gains), excluded from core earnings, before tax			(0.5)			(0.5)			(1.8)			(1.6)			(2.9)			3.7												(0.5)			0.7
Effect of income tax expense			0.3			—			0.3			0.3			0.7			(1.0)												0.1			(0.3)
Return on Assets ("ROA"), core earnings			13.6			12.6			14.1			13.1			11.9			14.7												13.1			13.4

39

---

Table of Contents

Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.

CONSOLIDATED

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Total net investment income			$	581		$	509		$	556		$	492		$	339		$	459											$	1,090		$	798
Adjustment for loss (gain) from limited partnerships and other alternative investments			(191)			(112)			(152)			(83)			71			(58)												(303)			13
Net investment income excluding limited partnerships and other alternative investments			$	390		$	397		$	404		$	409		$	410		$	401											$	787		$	811

PROPERTY & CASUALTY

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Total net investment income			$	442		$	378		$	425		$	371		$	242		$	334											$	820		$	576
Adjustment for loss (gain) from limited partnerships and other alternative investments			(151)			(84)			(128)			(72)			62			(48)												(235)			14
Net investment income excluding limited partnerships and other alternative investments			$	291		$	294		$	297		$	299		$	304		$	286											$	585		$	590

GROUP BENEFITS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Total net investment income			$	136		$	127		$	124		$	117		$	92		$	115											$	263		$	207
Adjustment for loss (gain) from limited partnerships and other alternative investments			(40)			(28)			(24)			(11)			9			(10)												(68)			(1)
Net investment income excluding limited partnerships and other alternative investments			$	96		$	99		$	100		$	106		$	101		$	105											$	195		$	206

40

---

Table of Contents

Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of annualized investment yield to annualized investment yield, excluding limited partnerships and other alternative investments is set forth below.

CONSOLIDATED

			THREE MONTHS ENDED																								SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Annualized investment yield			4.4		%	3.8		%	4.3		%	3.8		%	2.7		%	3.7		%										4.1		%	3.2		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(1.3)		%	(0.7)		%	(1.1)		%	(0.5)		%	0.7		%	(0.4)		%										(1.0)		%	0.2		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.1		%	3.1		%	3.2		%	3.3		%	3.4		%	3.3		%										3.1		%	3.4		%

PROPERTY & CASUALTY

			THREE MONTHS ENDED																								SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Annualized investment yield			4.5		%	3.9		%	4.4		%	3.9		%	2.6		%	3.6		%										4.2		%	3.1		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(1.4)		%	(0.7)		%	(1.2)		%	(0.6)		%	0.9		%	(0.4)		%										(1.1)		%	0.2		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.1		%	3.2		%	3.2		%	3.3		%	3.5		%	3.2		%										3.1		%	3.3		%

GROUP BENEFITS

			THREE MONTHS ENDED																					SIX MONTHS ENDED
			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020												Jun 30 2021			Jun 30 2020
Annualized investment yield			4.7		%	4.4		%	4.3		%	4.1		%	3.2		%	4.0		%										4.5		%	3.6		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(1.2)		%	(0.9)		%	(0.8)		%	(0.3)		%	0.4		%	(0.3)		%										(1.0)		%	0.1		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.5		%	3.5		%	3.5		%	3.8		%	3.6		%	3.7		%										3.5		%	3.7		%

41