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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): October 29, 2020

 

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

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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. ☐

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Item 2.02			Results of Operations and Financial Condition

On October 29, 2020, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended September 30, 2020, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarterly period ended September 30, 2020. 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 October 29, 2020
99.2			Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended September 30, 2020
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.

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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:			October 29, 2020			By:			/s/ Scott R. Lewis
						Name:			Scott R. Lewis
						Title:			Senior Vice President and Controller

    

NEWS RELEASE

The Hartford Announces Third Quarter 2020 Financial Results

•Third quarter 2020 net income available to common stockholders of $453 million ($1.26 per diluted share) decreased 14% from third quarter 2019, and core earnings* of $527 million (core earnings per diluted share* of $1.46) declined 4% from third quarter 2019

•Net income ROE for the trailing 12-month period ended Sept. 30, 2020, was 10.4% and core earnings ROE* for the same period was 12.3%

•Book value per diluted share was $48.47; book value per diluted share excluding accumulated other comprehensive income (AOCI) rose 5% to $46.09 since Dec. 31, 2019

•Incurred losses from COVID-19 were $72 million, before tax, comprised of Property and Casualty (P&C) losses of $37 million and Group Benefits losses of $35 million

•Catastrophe (CAT) losses in third quarter 2020 were $229 million, before tax, or a 7.6 point P&C combined ratio impact, compared to $106 million, before tax, or a 3.5 point combined ratio impact in third quarter 2019

•P&C combined ratio of 95.7 compared with 95.5 in third quarter 2019; underlying combined ratio* of 90.6 improved 3.0 points from third quarter 2019 and included a 1.2 point combined ratio impact from COVID-19 incurred losses

* 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

HARTFORD, Conn., Oct. 29, 2020 – The Hartford (NYSE: HIG) today announced financial results for the third quarter ended Sept. 30, 2020.

“Third quarter core earnings of $527 million or $1.46 per diluted share and a 12-month core earnings ROE of 12.3 percent reflect improving underlying margins across our businesses and solid investment returns. These results demonstrate the strength of our underlying business in the face of challenges posed by the global pandemic and unusually high industry catastrophes in the third quarter” said The Hartford’s Chairman and CEO Christopher Swift.

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The Hartford's President, Doug Elliot, said, “Third quarter results demonstrate strong business execution. Accelerating levels of economic activity contributed to an improving top-line and pricing remained strong in the quarter. Excluding workers’ compensation, renewal written pricing across our combined standard commercial and U.S. Global Specialty lines was approximately 11 percent. I am especially pleased with underlying margin expansion in both our Commercial and Personal Lines businesses.”

Swift added, “Investments in recent years in the digital transformation of our platform have enabled us to support our customers and distribution partners, while navigating the challenges the pandemic has brought to our daily lives. We entered this crisis with strong business fundamentals and are well positioned to continue to effectively manage through these unprecedented times. As always, the enterprise remains focused on building greater value for all our stakeholders.”

CONSOLIDATED RESULTS:

			Three Months Ended
($ in millions except per share data)			Sep 30 2020			Sep 30 2019			Change1
Net income available to common stockholders			$453			$524			(14)%
Net income available to common stockholders per diluted share2			$1.26			$1.43			(12)%
Core earnings			$527			$548			(4)%
Core earnings per diluted share			$1.46			$1.50			(3)%
Book value per diluted share			$48.47			$43.13			12%
Book value per diluted share (ex. AOCI)*			$46.09			$42.55			8%
Net income available to common stockholders' return on equity (ROE)3, last 12-months			10.4%			12.0%			(1.6)
Core earnings ROE3, last 12-months			12.3%			12.3%			—

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

[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

Third quarter 2020 net income available to common stockholders was $453 million, or $1.26 per diluted share, down 14% from third quarter 2019 while core earnings of $527 million, or $1.46 per diluted share, declined 4% from third quarter 2019. Contributing to the decrease in net income were $87 million of restructuring costs, before tax, in third quarter 2020 and an $83 million reduction in net realized capital gains, before tax, partially offset by a $90 million loss on extinguishment of debt, before tax, in third quarter 2019. Net realized capital gains in third quarter 2020 included a $51 million, before tax, loss on the sale of the company’s continental Europe operations.

Core earnings decreased $21 million, primarily due to a $123 million, before tax, increase in catastrophe losses and a $35 million, before tax, change from income to loss on the company’s retained equity interest in Talcott Resolution, partially offset by an $89 million, before tax,

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increase in P&C underlying underwriting results and a $28 million, before tax, increase in net favorable P&C prior accident year development.

Underlying business margins in P&C, which included $37 million, before tax, of COVID-19 losses in third quarter 2020, expanded, with underlying combined ratio improvement in Small Commercial, Middle & Large Commercial, and Personal Lines, while the underlying margin for Global Specialty decreased largely due to COVID-19 and ocean marine losses. Net income margin for the Group Benefits business declined 1.6 points, though it increased by 0.3 points when excluding the impacts of $35 million, before tax, in COVID-19 claims.

•P&C underwriting gain of $131 million was down 4% from third quarter 2019. An increase in current accident year (CAY) CATs of $123 million, before tax, and COVID-19 losses of $37 million, before tax, net of lower non-COVID-19 workers' compensation claim frequency, was partially offset by lower personal auto claim frequency, an increase in net favorable prior year development, lower non-catastrophe property losses unrelated to COVID-19 and lower underwriting expenses

•Group Benefits core earnings were down $25 million compared to third quarter 2019 due to $35 million, before tax, of incurred losses related to COVID-19 in group life and short-term disability, partially offset by lower insurance operating costs and other expenses

•Net investment income was $492 million in the quarter, slightly higher than the prior year, as higher limited partnership income was offset by reinvesting fixed maturities at lower rates and earning lower yields on floating rate investments

Sept. 30, 2020, book value per diluted share of $48.47 rose 11% from $43.85 at Dec. 31, 2019, principally due to an increase in net unrealized gains on investments within AOCI and net income in excess of common stockholder dividends.

Book value per diluted share (excluding AOCI) of $46.09 as of Sept. 30, 2020, increased 5% from $43.71 at Dec. 31, 2019, primarily due to net income in excess of common stockholder dividends.

The net income available to common stockholder ROE (net income ROE) was 10.4% at Sept. 30, 2020, decreasing from 12.0% for the twelve months ended Sept. 30, 2019 due to an increase in average stockholders' equity. The core earnings ROE at Sept. 30, 2020 was 12.3%, flat with the 12.3% recognized in the same period of 2019 as an increase in twelve-month trailing core earnings was offset by the effect of an increase in average stockholders' equity.

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BUSINESS RESULTS:

Commercial Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net income			$323			$336			(4)%
Core earnings			$349			$303			15%
Written premiums			$2,199			$2,235			(2)%
Underwriting gain*			$92			$82			12%
Underlying underwriting gain*			$142			$137			4%
Losses and loss adjustment expense ratio
Current accident year before catastrophes			60.7			59.4			1.3
Current accident year catastrophes			4.8			3.3			1.5
Prior accident year development (PYD)			(2.5)			(0.8)			(1.7)
Expenses			32.7			34.0			(1.3)
Policyholder dividends			0.4			0.5			(0.1)
Combined ratio			95.9			96.4			(0.5)
Impact of catastrophes and PYD on combined ratio			(2.3)			(2.5)			0.2
Underlying combined ratio*			93.7			93.9			(0.2)

Third quarter 2020 net income of $323 million declined from $336 million in third quarter 2019 principally due to a change from net realized capital gains in 2019 to net realized capital losses in 2020, offset by higher net investment income and a higher underwriting gain. The higher underwriting gain was driven by an increase in net favorable prior accident year development and lower underwriting expenses, largely offset by higher CAY losses, including higher CATs and COVID-19 incurred losses.

COVID-19 incurred losses of $37 million, before tax, in the quarter included $17 million of losses in workers' compensation, net of favorable frequency on other workers' compensation claims, and $20 million of losses in financial and other lines. By comparison, COVID-19 incurred losses in second quarter 2020 were $213 million, before tax, including $141 million for crisis management and performance disruption property claims, $35 million for workers’ compensation, net of favorable frequency on other workers' compensation claims, and $37 million in financial and other lines.

Third quarter 2020 written premiums of $2.2 billion decreased 2% from third quarter 2019, driven by the economic impacts of COVID-19, including lower new business across most lines as well as the impact of a declining exposure base on workers' compensation premiums, partially offset by continued written pricing increases in all lines except workers' compensation. Third quarter policy and premium retention were down sequentially due to resumption of policy cancellations for non-payment of premium in the third quarter.

•Small Commercial written premium declined by 1% driven primarily by lower new business premium, policy cancellations and endorsements reducing premiums, with a decrease in workers' compensation premium partially offset by growth in package business

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•Middle & Large Commercial written premium decreased by 2% driven by lower new business and premium retention across all lines primarily driven by declines in general industries, led by workers’ compensation, as well as in industry verticals and national accounts, partially offset by growth in specialty and commercial excess lines

•Global Specialty written premium decreased by 2% due to a decline in international and bond business, partially offset by growth in wholesale and professional liability

Combined ratio was 95.9 in third quarter 2020, 0.5 points lower than 96.4 in third quarter 2019 including a 1.7 point increase in net favorable PYD offset by a 1.5 point increase in CAY CATs. Underlying combined ratio of 93.7 decreased 0.2 points from third quarter 2019 primarily due to lower non-CAT property losses and lower underwriting expenses, partially offset by COVID-19 incurred losses of $37 million, before tax, and a few large international marine losses.

Personal Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net income			$79			$94			(16)%
Core earnings			$77			$87			(11)%
Written premiums			$781			$822			(5)%
Underwriting gain			$52			$58			(10)%
Underlying underwriting gain			$145			$62			134%
Losses and loss adjustment expense ratio
Current accident year before catastrophes			56.0			66.1			(10.1)
Current accident year catastrophes			15.7			4.0			11.7
Prior accident year development (PYD)			(3.7)			(3.5)			(0.2)
Expenses			25.4			26.2			(0.8)
Combined ratio			93.3			92.8			0.5
Impact of catastrophes and PYD on combined ratio			(12.0)			(0.5)			(11.5)
Underlying combined ratio			81.4			92.3			(10.9)

Net income of $79 million in third quarter 2020 was $15 million lower than third quarter 2019, while core earnings of $77 million declined by $10 million. Favorable auto frequency, lower non-CAT losses in homeowners and lower underwriting expenses were more than offset by higher CAY CAT losses, lower net investment income, and contributing to the decrease in net income, lower net realized capital gains.

Written premiums of $781 million were down 5% from third quarter 2019, with decreases in AARP Direct and both Agency channels. Written premiums for both automobile and homeowners declined as the amount of non-renewed premium exceeded new business. In auto, contributing to the written premium decline in third quarter 2020 was the resumption of non-payment policy cancellations after a suspension of policy cancellations in second quarter 2020 due to extending the time policyholders had to pay their premium. New business premium of $71 million decreased 10% with decreases in auto and homeowners of 5% and 24%, respectively.

Combined ratio of 93.3 in third quarter 2020 was 0.5 points higher than third quarter 2019 due to an increase in CAY CATs, largely offset by favorable auto frequency. Underlying combined ratio of 81.4 was 10.9 points better than third quarter 2019 principally due to lower auto claim

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frequency as a result of fewer miles driven, lower non-CAT property weather losses in homeowners, and lower underwriting expenses.

Group Benefits

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net income			$119			$146			(18)%
Core earnings			$116			$141			(18)%
Fully insured ongoing premiums (ex. buyout premiums)			$1,316			$1,337			(2)%
Loss ratio			73.8%			71.1%			2.7
Expense ratio			24.3%			24.9%			(0.6)
Net income margin			8.0%			9.6%			(1.6)
Core earnings margin*			7.9%			9.4%			(1.5)

Net income and core earnings were $119 million and $116 million, respectively, decreasing 18% from third quarter 2019, largely driven by $35 million, before tax, of incurred losses related to COVID-19 in group life and disability, partially offset by lower insurance operating costs and other expenses.

Fully insured ongoing premiums were down 2%, compared to third quarter 2019, primarily due to lower insured exposure on in-force policies, partially offset by higher voluntary product premiums.

Loss ratio of 73.8% increased 2.7 points from third quarter 2019 with increases in both group life and group disability:

•Total disability loss ratio of 65.3% deteriorated 0.9 points compared to third quarter 2019, which included favorable updates to long-term disability claim recovery reserve assumptions, representing 2.7 points. Third quarter 2020 included short-term disability COVID-19 losses of $7 million, or 1.0 point, more than offset by strong claim recoveries on prior incurral years and lower claim incidence for the current incurral year

•Total group life loss ratio increased 6.7 points, primarily due to COVID-19 incurred losses of $28 million, before tax, or 4.7 points, and an increase in reserves for late reported prior incurral year group life claims, partly offset by lower non-COVID-19 group life mortality in the current incurral year

Expense ratio of 24.3% was 0.6 points lower than third quarter 2019, primarily driven by a decrease in the bad debt allowance on premiums receivable due to favorable collection experience relative to prior expectations.

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Hartford Funds

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net income			$44			$40			10%
Core earnings			$40			$39			3%
Daily average Hartford Funds AUM			$122,528			$119,738			2%
Mutual Funds and exchange-traded products (ETP) net flows			$(1,266)			$(800)			(58)%
Total Hartford Funds assets under management (AUM)			$123,710			$119,981			3%

Net income of $44 million was up $4 million compared with third quarter 2019, primarily due to an increase in net realized capital gains due to mark-to-market gains on company assets invested in certain Hartford funds and lower operating costs and other expenses, largely offset by a decrease in fee income. Core earnings were up $1 million, or 3%, as lower variable operating expenses were offset by a decrease in fee income. The decrease in fee income was principally driven by a continued shift to lower fee generating funds, partially offset by higher daily average Hartford Funds AUM.

Daily average AUM of $123 billion in third quarter 2020 was up 2% from third quarter 2019 driven by increases in market values, partially offset by net outflows.

Mutual fund and ETP net outflows totaled $1.3 billion in third quarter 2020, compared with net outflows of $800 million in third quarter 2019.

Corporate

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net loss			$(108)			$(99)			(9)%
Core loss			$(57)			$(37)			(54)%
Other revenue (loss)			$(21)			$24			NM
Net investment income, before tax			$3			$10			(70)%
Interest and preferred dividend expense, before tax			$64			$78			(18)%

Net loss of $108 million in third quarter 2020 compared with a net loss of $99 million in third quarter 2019, with the net loss in third quarter 2020 including planned restructuring costs of $87 million, before tax, related to Hartford Next and the third quarter 2019 net loss including a $90 million, before tax, loss on extinguishment of debt. Third quarter 2020 core loss of $57 million increased $20 million compared with third quarter 2019 mostly due to a change from income to

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loss from the company's retained equity interest in Talcott Resolution recognized within other revenues, and a decrease in net investment income, partially offset by a decrease in interest expense.

INVESTMENT INCOME AND PORTFOLIO DATA:

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2020			Sep 30 2019			Change
Net investment income, before tax			$492			$490			0%
Annualized investment yield, before tax			3.8%			4.0%			(0.2)
Annualized investment yield, before tax, excluding LPs*			3.3%			3.6%			(0.3)
Annualized LP yield, before tax			18.3%			15.3%			3.0
Annualized investment yield, after tax			3.2%			3.3%			(0.1)

Third quarter 2020 consolidated net investment income of $492 million was slightly higher than third quarter 2019 as higher income from limited partnerships and other alternative investments was offset by lower income from fixed maturities. Income from fixed maturities declined as a result of reinvesting at lower rates and lower yields on floating rate investments, partially offset by higher asset levels and income from non-routine income items, which primarily included make-whole payments.

Income from LPs was $83 million, before tax, in third quarter 2020, increasing from $65 million, before tax, in third quarter 2019, driven by improved performance of certain equity and credit funds. Income from LPs, including from private equity and other funds, is generally reported on a three-month lag.

Total invested assets of $55 billion increased 3% from Dec. 31, 2019, with increases in fixed maturities and short term investments, partially offset by a decrease in equity securities largely due to the sale of equity securities during March and April. Fixed maturities increased, primarily due to net additions of corporate securities and an increase in valuations as a result of a decline in interest rates, partially offset by wider credit spreads. Short-term investments increased due to actions taken in the first half of the year to increase liquidity, primarily by reinvesting principal and interest, as well as proceeds from sales, into short-term instruments.

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CONFERENCE CALL

The Hartford will discuss its third quarter 2020 financial results on a webcast at 9 a.m. EDT on Friday, Oct. 30, 2020. 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 Sept. 30, 2020, and the Third Quarter 2020 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]

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended September 30, 2020
($ in millions)
			Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Hartford Funds			Corporate						Consolidated
Earned premiums			$	2,251		$	779		$	—		$	1,317		$	—		$	—					$	4,347
Fee income			8			8			—			44			250			13						323
Net investment income			316			41			14			117			1			3						492
Other revenues			1			23			—			—			—			(21)						3
Net realized capital gains (losses)			(26)			3			2			9			5			13						6
Total revenues			2,550			854			16			1,487			256			8						5,171
Benefits, losses, and loss adjustment expenses			1,416			529			11			1,005			—			1						2,962
Amortization of DAC			344			60			—			13			4			—						421
Insurance operating costs and other expenses			407			166			2			312			197			9						1,093
Restructuring and other costs			—			—			—			—			—			87						87
Interest expense			—			—			—			—			—			58						58
Amortization of other intangible assets			8			—			—			10			—			—						18
Total benefits, losses and expenses			2,175			755			13			1,340			201			155						4,639
Income (loss) before income taxes			375			99			3			147			55			(147)						532
Income tax expense (benefit)			52			20			1			28			11			(39)						73
Net income (loss)			323			79			2			119			44			(108)						459
Preferred stock dividends			—			—			—			—			—			6						6
Net income (loss) available to common stockholders			323			79			2			119			44			(114)						453
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized capital gains (losses), excluded from core earnings, before tax			25			(3)			(2)			(9)			(5)			(12)						(6)
Restructuring and other costs			—			—			—			—			—			87						87
Change in deferred gain on retroactive reinsurance, before tax			14			—			—			—			—			—			—			14
Integration and transaction costs associated with an acquired business, before tax			9			—			—			5			—			—						14
Income tax expense (benefit)			(22)			1			2			1			1			(18)						(35)
Core earnings (losses)			$	349		$	77		$	2		$	116		$	40		$	(57)					$	527

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended September 30, 2019
($ in millions)
			Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Hartford Funds			Corporate						Consolidated
Earned premiums			$	2,250		$	803		$	—		$	1,337		$	—		$	4					$	4,394
Fee income			8			9			—			45			254			14						330
Net investment income			291			46			21			121			1			10						490
Other revenues			1			23			—			—			—			20						44
Net realized capital gains			60			9			4			14			1			1						89
Total revenues			2,610			890			25			1,517			256			49						5,347
Benefits, losses, and loss adjustment expenses			1,391			535			—			983			—			5						2,914
Amortization of DAC			356			64			—			14			3			—						437
Insurance operating costs and other expenses			441			173			3			329			202			19						1,167
Loss on extinguishment of debt			—			—			—			—			—			90						90
Loss on reinsurance transaction			—			—			—			—			—			—						—
Interest expense			—			—			—			—			—			67						67
Amortization of other intangible assets			7			1			—			10			—			1						19
Total benefits, losses and expenses			2,195			773			3			1,336			205			182						4,694
Income (loss) before income taxes			415			117			22			181			51			(133)						653
Income tax expense (benefit)			79			23			4			35			11			(34)						118
Income (loss) from continuing operations, net of tax			336			94			18			146			40			(99)						535
Net income (loss)			336			94			18			146			40			(99)						535
Preferred stock dividends			—			—			—			—			—			11						11
Net income (loss) available to common stockholders			336			94			18			146			40			(110)						524
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized capital gains (losses), excluded from core earnings, before tax			(59)			(9)			(4)			(15)			(1)			—						(88)
Loss on extinguishment of debt, before tax			—			—			—			—			—			90						90
Integration and transaction costs, before tax			19			—			—			9			—			1						29
Income tax expense (benefit)			7			2			1			1			—			(18)						(7)
Core earnings (losses)			$	303		$	87		$	15		$	141		$	39		$	(37)					$	548

11

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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 third quarter 2020, 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
			Sept 30 2020			Sept 30 2019			Sept 30 2020			Sept 30 2019			Sept 30 2020			Sept 30 2019
			Consolidated						P&C						Group Benefits
Annualized investment yield, before tax			3.8		%	4.0		%	3.9		%	4.0		%	4.1		%	4.2		%
Impact on annualized investment yield of limited partnerships and other alternative investments, before tax			(0.5)		%	(0.4)		%	(0.6)		%	(0.4)		%	(0.3)		%	(0.4)		%
Annualized investment yield excluding limited partnerships and other alternative investments, before tax			3.3		%	3.6		%	3.3		%	3.6		%	3.8		%	3.8		%

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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
			Sept 30 2020			Dec 31 2019			Change
Book value per diluted share			$48.47			$43.85			11%
Per diluted share impact of AOCI			$(2.38)			$(0.14)			NM
Book value per diluted share (excluding AOCI)			$46.09			$43.71			5%

13

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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 transaction costs in connection with an acquired business - As transaction costs are incurred upon acquisition of a business and integration costs are completed within a short period after an acquisition, they do not represent ongoing costs 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.

14

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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 September 30, 2020 and 2019, 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 September 30, 2020.

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 September 30, 2020 and 2019, is set forth below.

			Three Months Ended
Margin			Sept 30 2020			Sept 30 2019			Change
Net income margin			8.0%			9.6%			(1.6)
Adjustments to reconcile net income margin to core earnings margin
Net realized capital losses (gains) excluded from core earnings, before tax			(0.6)%			(0.9)%			0.3
Integration and transaction costs associated with acquired business, before tax			0.3%			0.6%			(0.3)
Income tax benefit			0.2%			0.1%			0.1
Core earnings margin			7.9%			9.4%			(1.5)

15

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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 September 30, 2020 and 2019 is provided in the table below.

			Three Months Ended
			Sept 30 2020			Sept 30 2019			Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common stockholders per share1			$1.26			$1.43			(12)%
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			(0.02)			(0.24)			92%
Restructuring and other costs, before tax			0.24			—			100%
Loss on extinguishment of debt, before tax			—			0.25			(100)%
Integration and transaction costs associated with an acquired business, before tax			0.04			0.08			(50)%
Change in deferred gain on retroactive reinsurance, before tax			0.04			—			NM
Income tax expense (benefit) on items excluded from core earnings			(0.10)			(0.02)			NM
Core earnings per diluted share			$1.46			$1.50			(3)%

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

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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
			Sept 30 2020			Sept 30 2019
Net income (loss) available to common stockholders ROE			10.4%			12.0%
Adjustments to reconcile net income (loss) available to common stockholders ROE to core earnings ROE
Net realized capital gains excluded from core earnings, before tax			0.3			(1.1)
Restructuring and other costs, before tax			0.5			—
Loss on extinguishment of debt, before tax			—			0.6
Loss on reinsurance transactions, before tax			—			0.6
Integration and transaction costs associated with an acquired business, before tax			0.4			0.6
Changes in loss reserves upon acquisition of a business, before tax			—			0.7
Change in deferred gain on retroactive reinsurance, before tax			0.7			—
Income tax expense (benefit) on items not included in core earnings			(0.4)			(0.7)
Impact of AOCI, excluded from core earnings ROE			0.4			(0.4)
Core earnings ROE			12.3%			12.3%

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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
			Sept 30 2020			Sept 30 2019			Sept 30 2020			Sept 30 2019			Sept 30 2020			Sept 30 2019
			Consolidated						P&C						Group Benefits
Total net investment income			$492			$490			$371			$358			$117			$121
Loss (income) from limited partnerships and other alternative assets			(83)			(65)			(72)			(52)			(11)			(13)
Net investment income excluding limited partnerships and other alternative investments			$409			$425			$299			$306			$106			$108

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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 September 30, 2020 and 2019, 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 September 30, 2020 and 2019, is set forth below.

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COMMERCIAL LINES

			Three Months Ended
			Sept 30 2020			Sept 30 2019
Net income			$	323		$	336
Adjustments to reconcile net income to underwriting gain
Net servicing loss (income)			(1)			(2)
Net investment income			(316)			(291)
Net realized capital gains			26			(60)
Other expense (income)			8			20
Income tax expense			52			79
Underwriting gain			92			82
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			107			74
Prior accident year development			(57)			(19)
Underlying underwriting gain			$	142		$	137

PERSONAL LINES

			Three Months Ended
			Sept 30 2020			Sept 30 2019
Net income			$	79		$	94
Adjustments to reconcile net income to underwriting gain
Net servicing income			(5)			(4)
Net investment income			(41)			(46)
Net realized capital losses (gains)			(3)			(9)
Other expense			2			—
Income tax expense (benefit)			20			23
Underwriting gain			52			58
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			122			32
Prior accident year development			(29)			(28)
Underlying underwriting gain			$	145		$	62

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PROPERTY & CASUALTY

			Three Months Ended
			Sept 30 2020			Sept 30 2019
Net income			$	404		$	448
Adjustments to reconcile net income to underwriting gain
Net investment income			(371)			(358)
Net realized capital losses (gains)			21			(73)
Net servicing and other expense			4			14
Income tax expense (benefit)			73			106
Underwriting gain			131			137
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			229			106
Prior accident year development			(75)			(47)
Underlying underwriting gain			$	285		$	196

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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 The Hartford’s 2019 Form 10-K Annual Report, as amended in Part II Item 1A in its Form 10-Q Quarterly Reports; 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 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 a pandemic, 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-renewal or withdrawal of certain

22

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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, 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; the potential for further impairments of our goodwill or the potential for changes in valuation allowances against deferred tax assets;

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.

23

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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.

24

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2020

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

As of October 27, 2020

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+

A2

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

Other Ratings:

Contact:

Senior debt

a-

BBB+

Baa1

Susan Spivak Bernstein

Commercial paper

AMB-1

A-2

P-2

Senior Vice President

Preferred stock

bbb

BBB-

Baa3

Investor Relations

Junior subordinated debentures

bbb

BBB-

Baa2

Phone (860) 547-6233

- Hartford Financial Services Group, Inc. senior debt and junior subordinated debentures 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.

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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 Earnings Before Tax - Consolidated			26
			Investment Earnings Before Tax - Property & Casualty			27
			Investment Earnings 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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
HIGHLIGHTS
Net income			$	459		$	468		$	273		$	548		$	535		$	372		$	630								$	1,200		$	1,537
Net income available to common stockholders [1]			$	453		$	463		$	268		$	543		$	524		$	372		$	625								$	1,184		$	1,521
Core earnings*			$	527		$	438		$	485		$	522		$	548		$	485		$	507								$	1,450		$	1,540
Total revenues			$	5,171		$	5,068		$	4,956		$	5,361		$	5,347		$	5,092		$	4,940								$	15,195		$	15,379
Total assets			$	72,319		$	70,990		$	68,724		$	70,817		$	70,256		$69,472			$	63,324
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders			$	1.26		$	1.29		$	0.75		$	1.51		$	1.45		$	1.03		$	1.74								$	3.30		$	4.21
Core earnings*			$	1.47		$	1.22		$	1.35		$	1.45		$	1.52		$	1.34		$	1.41								$	4.05		$	4.27
Diluted earnings per common share
Net income available to common stockholders			$	1.26		$	1.29		$	0.74		$	1.49		$	1.43		$	1.02		$	1.71								$	3.29		$	4.17
Core earnings*			$	1.46		$	1.22		$	1.34		$	1.43		$	1.50		$	1.33		$	1.39								$	4.02		$	4.22
Weighted average common shares outstanding (basic)			358.3			358.1			358.5			360.5			361.4			361.4			360.0									358.3			361.0
Dilutive effect of stock compensation			2.2			1.2			2.6			3.8			4.0			3.2			3.3									2.0			3.4
Dilutive effect of warrants [2]			—			—			—			—			—			0.5			1.4									—			0.7
Weighted average common shares outstanding and dilutive potential common shares (diluted)			360.5			359.3			361.1			364.3			365.4			365.1			364.7									360.3			365.1
Common shares outstanding			358.2			358.1			357.9			359.6			361.0			361.6			360.9
Book value per common share			$	48.77		$	46.74		$	41.72		$	44.32		$	43.61		$	41.37		$	38.81
Per common share impact of accumulated other comprehensive income [3]			(2.39)			(1.34)			2.68			(0.15)			(0.59)			0.54			2.45
Book value per common share (excluding AOCI)*			$	46.38		$	45.40		$	44.40		$	44.17		$	43.02		$	41.91		$	41.26
Book value per diluted share			$	48.47		$	46.59		$	41.42		$	43.85		$	43.13		$	41.00		$	38.36
Per diluted share impact of AOCI			(2.38)			(1.34)			2.65			(0.14)			(0.58)			0.55			2.43
Book value per diluted share (excluding AOCI)*			$	46.09		$	45.25		$	44.07		$	43.71		$	42.55		$	41.55		$	40.79
Common shares outstanding and dilutive potential common shares			360.4			359.3			360.5			363.4			365.0			364.8			365.1
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [4]
Net income (loss) available to common stockholders' ROE ("Net income (loss) ROE")			10.4		%	11.3		%	11.8		%	14.4		%	12.0		%	11.8		%	13.5		%
Core earnings ROE*			12.3		%	12.7		%	13.3		%	13.6		%	12.3		%	11.7		%	11.5		%

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

[2]On June 26, 2019, the Capital Purchase Program warrants issued in 2009 expired.

[3]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 plan adjustments.

[4]For reconciliation of Net income (loss) ROE to Core earnings ROE, see Appendix, page 36.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

1

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Earned premiums			$	4,347		$	4,234		$	4,391		$	4,423		$	4,394		$	4,166		$	3,940								$	12,972		$	12,500
Fee income			323			298			320			331			330			326			314									941			970
Net investment income			492			339			459			503			490			488			470									1,290			1,448
Net realized capital gains (losses) [1]			6			109			(231)			63			89			80			163									(116)			332
Other revenues			3			88			17			41			44			32			53									108			129
Total revenues			5,171			5,068			4,956			5,361			5,347			5,092			4,940									15,195			15,379
Benefits, losses and loss adjustment expenses [2]			2,962			2,847			2,916			2,939			2,914			2,934			2,685									8,725			8,533
Amortization of deferred acquisition costs ("DAC")			421			429			437			438			437			392			355									1,287			1,184
Insurance operating costs and other expenses			1,093			1,125			1,176			1,224			1,167			1,141			1,048									3,394			3,356
Loss on extinguishment of debt [3]			—			—			—			—			90			—			—									—			90
Loss on reinsurance transaction			—			—			—			—			—			91			—									—			91
Interest expense			58			57			64			65			67			63			64									179			194
Amortization of other intangible assets			18			18			19			19			19			15			13									55			47
Restructuring and other costs			87			—			—			—			—			—			—									87			—
Total benefits, losses and expenses			4,639			4,476			4,612			4,685			4,694			4,636			4,165									13,727			13,495
Income before income taxes			532			592			344			676			653			456			775									1,468			1,884
Income tax expense			73			124			71			128			118			84			145									268			347
Net income			459			468			273			548			535			372			630									1,200			1,537
Preferred stock dividends [4]			6			5			5			5			11			—			5									16			16
Net income available to common stockholders			453			463			268			543			524			372			625									1,184			1,521
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [1]			(6)			(107)			232			(62)			(88)			(79)			(160)									119			(327)
Restructuring and other costs, before tax [5]			87			—			—			—			—			—			—									87			—
Loss on extinguishment of debt, before tax			—			—			—			—			90			—			—									—			90
Loss on reinsurance transaction, before tax			—			—			—			—			—			91			—									—			91
Integration and transaction costs associated with acquired business, before tax [6]			14			13			13			21			29			31			10									40			70
Change in loss reserves upon acquisition of a business, before tax [7]			—			—			—			—			—			97			—									—			97
Change in deferred gain on retroactive reinsurance, before tax [8]			14			54			29			16			—			—			—									97			—
Income tax expense (benefit) [9]			(35)			15			(57)			4			(7)			(27)			32									(77)			(2)
Core earnings			$	527		$	438		$	485		$	522		$	548		$	485		$	507								$	1,450		$	1,540

[1]The three and nine month periods ended September 30, 2020 included a loss on sale of Continental Europe Operations of $51 before-tax and $32 after-tax.

[2]The three and nine months ended September 30, 2020 included $72 and $339, respectively, of benefits, losses and loss adjustment expenses incurred arising from the Coronavirus Disease 2019 ("COVID-19") pandemic.

[3]For the three and nine months ended September 30, 2019, amount relates to the redemptions of $265 of 5.75% senior notes that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes of The Hartford Financial Services Group, Inc.

[4]No preferred stock dividends were declared in second quarter 2019. Preferred stock dividends of $5 and $6 were declared on July 18, 2019 and September 12, 2019, respectively, and were recognized in third quarter 2019.

[5]The three and nine month periods ended September 30, 2020 represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan and included $78 of accrued severance costs.

[6]The three and nine month periods ended September 30, 2020 included Navigators Group acquisition integration costs of $9 and $25, respectively, and integration costs related to the 2017 acquisition of Aetna's group benefits business of $5 and $15, respectively. The three and nine month periods ended September 30, 2019 included Navigators Group acquisition transaction and integration costs of $20 and $42, respectively, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $9 and $28, respectively.

[7]Upon acquisition of Navigators Group and a review of Navigators Insurers reserves, the nine months ended September 30, 2019 included $68 of prior accident year reserve increases and $29 of current accident year reserve increases included in net income.

[8]As of September 30, 2020, the Company has cumulatively ceded $204 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $97 ceded in the nine month period ended September 30, 2020. Of the $204 of cumulative losses ceded, $113 of the ceded losses has been recognized as a deferred gain within other liabilities as of September 30, 2020 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 $204 of the $300 available limit, there is $96 of remaining limit available as of September 30, 2020.

[9]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings. The three and nine month periods ended September 30, 2020 include a tax benefit of $19 related to the loss on sale of Continental Europe Operations (see Note [2] in the Form 10-Q for the quarterly period ended September 30, 2020).

2

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net income (loss):
Commercial Lines			$	323		$	(66)		$	121		$	302		$	336		$	191		$	363								$	378		$	890
Personal Lines			79			371			98			66			94			62			96									548			252
P&C Other Operations			2			5			5			9			18			11			23									12			52
Property & Casualty ("P&C")			404			310			224			377			448			264			482									938			1,194
Group Benefits			119			101			104			159			146			113			118									324			377
Hartford Funds			44			39			36			41			40			38			30									119			108
Sub-total			567			450			364			577			634			415			630									1,381			1,679
Corporate			(108)			18			(91)			(29)			(99)			(43)			—									(181)			(142)
Net income			459			468			273			548			535			372			630									1,200			1,537
Preferred stock dividends			6			5			5			5			11			—			5									16			16
Net income available to common stockholders			$	453		$	463		$	268		$	543		$	524		$	372		$	625								$	1,184		$	1,521
Core earnings (losses):
Commercial Lines			$	349		$	(57)		$	262		$	292		$	303		$	304		$	274								$	554		$	881
Personal Lines			77			364			117			61			87			55			82									558			224
P&C Other Operations			2			2			11			7			15			8			16									15			39
P&C			428			309			390			360			405			367			372									1,127			1,144
Group Benefits			116			102			115			161			141			115			122									333			378
Hartford Funds			40			33			44			40			39			38			28									117			105
Sub-total			584			444			549			561			585			520			522									1,577			1,627
Corporate			(57)			(6)			(64)			(39)			(37)			(35)			(15)									(127)			(87)
Core earnings			$	527		$	438		$	485		$	522		$	548		$	485		$	507								$	1,450		$	1,540

3

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

			PROPERTY & CASUALTY									GROUP BENEFITS									HARTFORD FUNDS									CORPORATE									CONSOLIDATED
			Sept 30 2020			Dec 31 2019						Sept 30 2020			Dec 31 2019						Sept 30 2020			Dec 31 2019						Sept 30 2020			Dec 31 2019						Sept 30 2020			Dec 31 2019
Investments
Fixed maturities, available-for-sale, at fair value			$	33,591		$	31,294					$	10,241		$	10,310					$	—		$	25					$	212		$	519					$	44,044		$	42,148
Fixed maturities, at fair value using the fair value option			—			8						—			3						—			—						—			—						—			11
Equity securities, at fair value			475			1,295						97			85						73			67						174			210						819			1,657
Mortgage loans			3,110			2,944						1,351			1,271						—			—						—			—						4,461			4,215
Limited partnerships and other alternative investments			1,538			1,463						330			295						—			—						—			—						1,868			1,758
Other investments			137			123						5			7						24			31						21			159						187			320
Short-term investments			1,178			1,476						331			361						244			185						1,646			899						3,399			2,921
Total investments [1]			40,029			38,603						12,355			12,332						341			308						2,053			1,787						54,778			53,030
Cash [1]			151			163						18			13						2			8						2			1						173			185
Restricted cash			87			72						10			5						—			—						—			—						97			77
Premiums receivable and agents’ balances, net			3,941			3,901						509			483						—			—						—			—						4,450			4,384
Reinsurance recoverables, net [2]			5,108			4,954						250			253						—			—						310			320						5,668			5,527
DAC			760			726						41			51						7			8						—			—						808			785
Deferred income taxes			(255)			(168)						(246)			(179)						4			6						546			640						49			299
Goodwill			778			780						723			723						181			181						229			229						1,911			1,913
Property and equipment, net			980			1,011						84			86						13			14						67			70						1,144			1,181
Other intangible assets			474			541						489			519						10			10						—			—						973			1,070
Other assets			1,290			1,328						350			309						79			99						382			630						2,101			2,366
Assets held for sale [3]			167			—						—			—						—			—						—			—						167			—
Total assets			$	53,510		$	51,911					$	14,583		$	14,595					$	637		$	634					$	3,589		$	3,677					$	72,319		$	70,817
Unpaid losses and loss adjustment expenses			$	29,151		$	28,261					$	8,155		$	8,256					$	—		$	—					$	—		$	—					$	37,306		$	36,517
Reserves for future policy benefits [2]			—			—						426			411						—			—						224			224						650			635
Other policyholder funds and benefits payable [2]			—			—						422			459						—			—						289			296						711			755
Unearned premiums			6,715			6,596						46			39						—			—						—			—						6,761			6,635
Debt			—			—						—			—						—			—						4,351			4,848						4,351			4,848
Other liabilities			2,037			2,384						262			422						201			227						2,085			2,124						4,585			5,157
Liabilities held for sale [3]			153			—						—			—						—			—						—			—						153			—
Total liabilities			38,056			37,241						9,311			9,587						201			227						6,949			7,492						54,517			54,547
Common stockholders' equity, excluding AOCI			13,750			13,520						4,581			4,547						436			407						(2,155)			(2,590)						16,612			15,884
Preferred stock			—			—						—			—						—			—						334			334						334			334
AOCI, net of tax			1,704			1,150						691			461						—			—						(1,539)			(1,559)						856			52
Total stockholders' equity			15,454			14,670						5,272			5,008						436			407						(3,360)			(3,815)						17,802			16,270
Total liabilities and equity			$	53,510		$	51,911					$	14,583		$	14,595					$	637		$	634					$	3,589		$	3,677					$	72,319		$	70,817

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.6 billion and $1.2 billion as of September 30, 2020 and December 31, 2019, 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 reserves and reinsurance recoverables for run-off structured settlement and terminal funding agreement liabilities.

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

4

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019
DEBT
Short-term debt			$	—		$	—		$	—		$	500		$	500		$	500		$	499
Senior notes			3,261			3,260			3,260			3,259			3,257			2,961			2,678
Junior subordinated debentures			1,090			1,090			1,089			1,089			1,089			1,089			1,089
Total debt			$	4,351		$	4,350		$	4,349		$	4,848		$	4,846		$	4,550		$	4,266
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI			$	16,612		$	16,259		$	15,889		$	15,884		$	15,530		$	15,156		$	14,891
Preferred stock			334			334			334			334			334			334			334
AOCI			856			479			(957)			52			214			(198)			(885)
Total stockholders’ equity			$	17,802		$	17,072		$	15,266		$	16,270		$	16,078		$	15,292		$	14,340
CAPITALIZATION
Total capitalization, including AOCI, net of tax			$	22,153		$	21,422		$	19,615		$	21,118		$	20,924		$	19,842		$	18,606
Total capitalization, excluding AOCI, net of tax			$	21,297		$	20,943		$	20,572		$	21,066		$	20,710		$	20,040		$	19,491
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI			19.6		%	20.3		%	22.2		%	23.0		%	23.2		%	22.9		%	22.9		%
Total debt to capitalization, excluding AOCI			20.4		%	20.8		%	21.1		%	23.0		%	23.4		%	22.7		%	21.9		%
Total debt and preferred stock to capitalization, including AOCI			21.1		%	21.9		%	23.9		%	24.5		%	24.8		%	24.6		%	24.7		%
Total debt and preferred stock to capitalization, excluding AOCI			22.0		%	22.4		%	22.8		%	24.6		%	25.0		%	24.4		%	23.6		%
Total rating agency adjusted debt to capitalization [1] [2]			22.9		%	23.5		%	25.6		%	26.1		%	26.6		%	26.6		%	25.7		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]			8.2:1			7.7:1			5.4:1			9.8:1			9.7:1			10.1:1			11.9:1

[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 $1.1 billion as of September 30, 2020 and 2019.

[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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

SEPTEMBER 30, 2020

			P&C			GROUP BENEFITS
U.S. statutory net income [1][5]			$	1,061		$	302
U.S. statutory capital [2][5]			$	10,398		$	2,645
U.S. GAAP adjustments:
DAC			762			41
Non-admitted deferred tax assets [3]			177			167
Deferred taxes [4]			(994)			(565)
Goodwill			125			723
Other intangible assets			68			489
Non-admitted assets other than deferred taxes			772			135
Asset valuation and interest maintenance reserve			—			240
Benefit reserves			(71)			6
Unrealized gains on investments			2,072			909
Other, net			944			482
U.S. GAAP stockholders’ equity of U.S. insurance entities [5]			14,253			5,272
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group			1,201			—
Total U.S. GAAP stockholders’ equity			$	15,454		$	5,272

[1]Statutory net income is for the nine months ended September 30, 2020.

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

6

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

			AS OF
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019
Fixed maturities net unrealized gain			$	2,431		$	2,055		$	627		$	1,684		$	1,768		$	1,367		$	703
Unrealized loss on fixed maturities with ACL			(2)			(2)			(2)
OTTI losses recognized in AOCI												(3)			(3)			(3)			(3)
Net gains (losses) on cash flow hedging instruments			31			48			53			9			17			11			—
Total net unrealized gain			$	2,460		$	2,101		$	678		$	1,690		$	1,782		$	1,375		$	700
Foreign currency translation adjustments			33			27			26			34			30			34			31
Pension and other postretirement plan adjustments			(1,637)			(1,649)			(1,661)			(1,672)			(1,598)			(1,607)			(1,616)
Total AOCI			$	856		$	479		$	(957)		$	52		$	214		$	(198)		$	(885)

7

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Written premiums			$	2,980		$	2,903		$	3,152		$	2,904		$	3,057		$	2,902		$	2,720								$	9,035		$	8,679
Change in unearned premium reserve			(50)			52			113			(169)			4			114			144									115			262
Earned premiums			3,030			2,851			3,039			3,073			3,053			2,788			2,576									8,920			8,417
Fee income			16			14			17			18			17			19			18									47			54
Losses and loss adjustment expenses
Current accident year before catastrophes [1][2]			1,802			1,828			1,806			1,900			1,867			1,696			1,537									5,436			5,100
Current accident year catastrophes			229			248			74			115			106			138			104									551			348
Prior accident year development [1][3]			(75)			(268)			23			(42)			(47)			35			(11)									(320)			(23)
Total losses and loss adjustment expenses			1,956			1,808			1,903			1,973			1,926			1,869			1,630									5,667			5,425
Amortization of DAC			404			412			420			421			420			375			339									1,236			1,134
Underwriting expenses [4]			539			540			597			625			567			550			495									1,676			1,612
Amortization of other intangible assets			8			9			8			9			8			4			3									25			15
Dividends to policyholders			8			7			8			6			12			6			6									23			24
Underwriting gain* [5]			131			89			120			57			137			3			121									340			261
Net investment income			371			242			334			363			358			348			323									947			1,029
Net realized capital gains (losses) [6]			(21)			74			(173)			52			73			66			143									(120)			282
Loss on reinsurance transaction			—			—			—			—			—			(91)			—									—			(91)
Net servicing and other income (expense)			(4)			(7)			(3)			(10)			(14)			(2)			2									(14)			(14)
Income before income taxes			477			398			278			462			554			324			589									1,153			1,467
Income tax expense			73			88			54			85			106			60			107									215			273
Net income			404			310			224			377			448			264			482									938			1,194
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [6]			20			(71)			173			(52)			(72)			(65)			(140)									122			(277)
Loss on reinsurance transaction, before tax			—			—			—			—			—			91			—									—			91
Integration and transaction costs associated with an acquired business, before tax			9			8			8			12			19			6			1									25			26
Change in loss reserves upon acquisition of a business, before tax [1]			—			—			—			—			—			97			—									—			97
Change in deferred gain on retroactive reinsurance, before tax [3]			14			54			29			16			—			—			—									97			—
Income tax expense (benefit) [7]			(19)			8			(44)			7			10			(26)			29									(55)			13
Core earnings			$	428		$	309		$	390		$	360		$	405		$	367		$	372								$	1,127		$	1,144
ROE
Net income available to common stockholders [8]			10.2		%	11.0		%	12.7		%	16.1		%	12.0		%	11.6		%	15.2		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital gains, excluded from core earnings, before tax [6]			0.6		%	(0.2		%)	(0.2		%)	(3.7		%)	(1.6		%)	(1.2		%)	(1.2)		%
Loss on reinsurance transaction, before tax			—		%	—		%	1.0		%	1.0		%	1.0		%	1.0		%	—		%
Integration and transaction costs associated with an acquired business, before tax			0.3		%	0.4		%	0.5		%	0.4		%	0.3		%	0.1		%	—		%
Changes in loss reserves upon acquisition of a business, before tax [1]			—		%	—		%	1.1		%	1.1		%	1.1		%	1.1		%	—		%
Change in deferred gain on retroactive reinsurance, before tax [3]			1.0		%	0.9		%	0.5		%	0.2		%	—		%	—		%	—		%
Income tax expense (benefit) [7]			(0.4		%)	(0.2		%)	(0.6		%)	0.2		%	(0.3		%)	(0.3		%)	0.1		%
Impact of AOCI, excluded from core earnings ROE			1.5		%	1.4		%	0.5		%	0.8		%	0.8		%	0.6		%	0.7		%
Core earnings [8]			13.2		%	13.3		%	15.5		%	16.1		%	13.3		%	12.9		%	14.8		%

[1]See [7] on page 2 for impact of Navigators Group acquisition for the nine months ended September 30, 2019.

[2]The three months ended September 30, 2020 included $37 of COVID-19 losses and loss adjustment expenses, including $20 for financial lines and other and $17 for workers' compensation net of favorable frequency. The nine months ended September 30, 2020 included $250 of COVID-19 losses and loss adjustment expenses, including $141 for commercial property, $57 for financial lines and other and $52 for workers' compensation net of favorable frequency.

[3]Prior accident year development does not include a benefit for the portion of losses ceded to National Indemnity Company ("NICO") under the Navigators ADC which are recognized as a deferred gain under retroactive reinsurance accounting.

[4]The three and nine months ended September 30, 2020 included an increase (decrease) in the allowance for credit losses ("ACL") on premiums receivable of $(1) and $47 respectively, due to the economic impacts of COVID-19.

[5]Excluding the non-core change in loss reserves upon acquisition of Navigators Group (see [7] on page 2), underwriting gain for the nine months ended September 30, 2019 was $358.

[6]See [1] on page 2 for impact of the loss on sale of Continental Europe Operations.

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

[8]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.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

8

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS (CONTINUED)

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines			$	—		$	22		$	5		$	—		$	25		$	2		$	—								$	27		$	27
Auto liability - Personal Lines			(32)			(15)			(6)			(10)			(23)			—			(5)									(53)			(28)
Homeowners			3			2			(2)			3			(1)			—			1									3			—
Marine			—			1			—			—			(2)			10			—									1			8
Professional liability			(21)			4			1			(3)			(1)			33			—									(16)			32
Package business			(18)			(7)			1			(15)			(23)			(14)			5									(24)			(32)
General liability			(2)			102			12			(1)			19			37			6									112			62
Bond			—			(10)			—			(1)			(2)			—			—									(10)			(2)
Assumed Reinsurance			—			(7)			—			—			—			3			—									(7)			3
Commercial property			(4)			5			(7)			5			(1)			(13)			(2)									(6)			(16)
Workers’ compensation			(34)			(21)			(17)			(30)			(40)			(30)			(20)									(72)			(90)
Workers' compensation discount accretion			9			9			9			8			8			9			8									27			25
Catastrophes [1]			—			(400)			(13)			(15)			(5)			(14)			(8)									(413)			(27)
Uncollectible reinsurance			(6)			(2)			—			(30)			—			—			—									(8)			—
Other reserve re-estimates			16			(5)			11			31			(1)			12			4									22			15
Prior accident year development before change in deferred gain			(89)			(322)			(6)			(58)			(47)			35			(11)									(417)			(23)
Change in deferred gain on retroactive reinsurance included in other liabilities [2]			14			54			29			16			—			—			—									97			—
Total prior accident year development [3]			$	(75)		$	(268)		$	23		$	(42)		$	(47)		$	35		$	(11)								$	(320)		$	(23)

[1]For the three months ended June 30, 2020 and nine months ended September 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.

[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. For the three months ended September 30, 2020, the $14 of adverse development related to the increase in the deferred gain primarily included increased reserves for construction account business within general liability, ocean marine, and assumed reinsurance.

[3]Total prior accident year development for the three months ended June 30, 2019 and nine months ended September 30, 2019 included $68 of reserve increases related to the Navigators Group acquisition, consisting of $34 for general liability, $25 for professional liability, $10 for marine, $3 for assumed reinsurance and $2 for commercial automobile liability, partially offset by a reserve decrease of $6 for commercial property.

9

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
UNDERWRITING GAIN (LOSS)			$	131		$	89		$	120		$	57		$	137		$	3		121									$	340		$	261
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1] [2]			59.5			64.1			59.4			61.8			61.2			60.8			59.7									60.9			60.6
Current accident year catastrophes			7.6			8.7			2.4			3.7			3.5			4.9			4.0									6.2			4.1
Prior accident year development [3][4]			(2.5)			(9.4)			0.8			(1.4)			(1.5)			1.3			(0.4)									(3.6)			(0.3)
Total losses and loss adjustment expenses			64.6			63.4			62.6			64.2			63.1			67.0			63.3									63.5			64.5
Expenses [5][6]			30.9			33.2			33.2			33.7			32.0			32.6			31.8									32.4			32.2
Policyholder dividends			0.3			0.2			0.3			0.2			0.4			0.2			0.2									0.3			0.3
Combined ratio			95.7			96.9			96.1			98.1			95.5			99.9			95.3									96.2			96.9
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development [3]			(5.1)			0.7			(3.2)			(2.3)			(2.0)			(6.2)			(3.6)									(2.6)			(3.8)
Current accident year change in loss reserves upon acquisition of a business			—			—			—			—			—			(1.1)			—									—			(0.4)
Underlying combined ratio *			90.6			97.6			92.9			95.8			93.6			92.6			91.7									93.6			92.7

[1]The three and nine months ended September 30, 2020 included COVID-19 losses, net of favorable workers' compensation frequency, of 1.2 points and 2.8 points, respectively. See note [2] on page 8.

[2]The three months ended June 30, 2019 and nine months ended September 30, 2019, includes an increase in loss reserves of $29 upon acquisition of Navigators Group (see [7] on page 2).

[3]The three months ended June 30, 2019 and nine months ended September 30, 2019 include an increase in loss reserves of $68 upon acquisition of Navigators Group (see [7] on page 2).

[4]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.

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

[6]The three and nine months ended September 30, 2020 included an increase (decrease) in the ACL on premiums receivable of $(1) and $47 respectively, due to the economic impacts of COVID-19 representing (0.03) points and 0.5 points of the expense ratio, respectively.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Written premiums			$	2,199		$	2,165		$	2,408		$	2,190		$	2,235		$	2,078		$	1,949								$	6,772		$	6,262
Change in unearned premium reserve			(52)			8			143			(86)			(15)			91			172									99			248
Earned premiums			2,251			2,157			2,265			2,276			2,250			1,987			1,777									6,673			6,014
Fee income			8			5			8			9			8			9			9									21			26
Losses and loss adjustment expenses
Current accident year before catastrophes [1][2]			1,366			1,472			1,343			1,361			1,336			1,179			1,037									4,181			3,552
Current accident year catastrophes			107			193			55			89			74			90			70									355			234
Prior accident year development [1][3]			(57)			77			41			(37)			(19)			22			(10)									61			(7)
Total losses and loss adjustment expenses			1,416			1,742			1,439			1,413			1,391			1,291			1,097									4,597			3,779
Amortization of DAC			344			351			356			356			356			310			274									1,051			940
Underwriting expenses			391			387			443			461			410			392			337									1,221			1,139
Amortization of other intangible assets			8			7			7			7			7			2			2									22			11
Dividends to policyholders			8			7			8			6			12			6			6									23			24
Underwriting gain (loss) [4]			92			(332)			20			42			82			(5)			70									(220)			147
Net servicing income (loss)			1			—			1			(1)			2			2			(1)									2			3
Net investment income			316			204			277			298			291			281			259									797			831
Net realized capital gains (losses) [5]			(26)			64			(143)			42			60			54			115									(105)			229
Loss on reinsurance transaction			—			—			—			—			—			(91)			—									—			(91)
Other expenses			(8)			(11)			(6)			(11)			(20)			(6)			(1)									(25)			(27)
Income (loss) before income taxes			375			(75)			149			370			415			235			442									449			1,092
Income tax expense (benefit)			52			(9)			28			68			79			44			79									71			202
Net income (loss)			323			(66)			121			302			336			191			363									378			890
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [5]			25			(61)			143			(42)			(59)			(54)			(113)									107			(226)
Integration and transaction costs associated with an acquired business, before tax [6]			9			8			8			12			19			6			1									25			26
Change in loss reserves upon acquisition of a business, before tax [1]			—			—			—			—			—			97			—									—			97
Change in deferred gain on retroactive reinsurance, before tax			14			54			29			16			—			—			—									97			—
Loss on reinsurance transaction, before tax			—			—			—			—			—			91			—									—			91
Income tax expense (benefit) [7]			(22)			8			(39)			4			7			(27)			23									(53)			3
Core earnings (loss)			$	349		$	(57)		$	262		$	292		$	303		$	304		$	274								$	554		$	881

[1]See [7] on page 2 for impact related to Navigators Group acquisition for the nine months ended September 30, 2019.

[2]See [2] on page 8 for impact related to COVID-19.

[3]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.

[4]Excluding the non-core change in loss reserves upon acquisition of Navigators Group of $97 (see [7] on page 2), underwriting gain for the nine months ended September 30, 2019 was $244.

[5]See [1] on page 2 for impact of the loss on sale of Continental Europe Operations.

[6]Includes Navigators Group integration costs.

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

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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																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Auto liability			$	—		$	22		$	5		$	—		$	25		$	2		$	—								$	27		$	27
Professional liability			(21)			4			1			(3)			(1)			33			—									(16)			32
Package business			(18)			(7)			1			(15)			(23)			(14)			5									(24)			(32)
General liability			(2)			102			12			(1)			19			37			6									112			62
Marine			—			1			—			—			(2)			10			—									1			8
Bond			—			(10)			—			(1)			(2)			—			—									(10)			(2)
Assumed Reinsurance			—			(7)			—			—			—			3			—									(7)			3
Commercial property			(4)			5			(7)			5			(1)			(13)			(2)									(6)			(16)
Workers’ compensation			(34)			(21)			(17)			(30)			(40)			(30)			(20)									(72)			(90)
Workers' compensation discount accretion			9			9			9			8			8			9			8									27			25
Catastrophes			—			(67)			(5)			(7)			(5)			(16)			(12)									(72)			(33)
Uncollectible reinsurance			—			—			—			(5)			—			—			—									—			—
Other reserve re-estimates			(1)			(8)			13			(4)			3			1			5									4			9
Prior accident year development before change in deferred gain [1]			(71)			23			12			(53)			(19)			22			(10)									(36)			(7)
Change in deferred gain on retroactive reinsurance included in other liabilities [2]			14			54			29			16			—			—			—									97			—
Total prior accident year development			$	(57)		$	77		$	41		$	(37)		$	(19)		$	22		$	(10)								$	61		$	(7)

[1]See [1] on page 9 for discussion related to catastrophes prior year development.

[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended September 30, 2020.

12

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS 

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
UNDERWRITING GAIN (LOSS)			$	92		$	(332)		$	20		$	42		$	82		$	(5)		$	70								$	(220)		$	147
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			60.7			68.2			59.3			59.8			59.4			59.3			58.4									62.7			59.1
Current accident year catastrophes			4.8			8.9			2.4			3.9			3.3			4.5			3.9									5.3			3.9
Prior accident year development [2]			(2.5)			3.6			1.8			(1.6)			(0.8)			1.1			(0.6)									0.9			(0.1)
Total losses and loss adjustment expenses			62.9			80.8			63.5			62.1			61.8			65.0			61.7									68.9			62.8
Expenses [3]			32.7			34.3			35.2			35.8			34.0			35.0			34.0									34.1			34.3
Policyholder dividends			0.4			0.3			0.4			0.3			0.5			0.3			0.3									0.3			0.4
Combined ratio [4]			95.9			115.4			99.1			98.2			96.4			100.3			96.1									103.3			97.6
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			(2.3)			(12.5)			(4.2)			(2.3)			(2.5)			(5.6)			(3.3)									(6.2)			(3.8)
Current accident year change in loss reserves upon acquisition of a business			—			—			—			—			—			(1.5)			—									—			(0.5)
Underlying combined ratio			93.7			102.9			94.9			95.9			93.9			93.2			92.7									97.1			93.3
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio			89.5			97.4			93.2			93.0			86.6			89.2			92.4									93.3			89.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(5.5)			(13.2)			(2.6)			(4.4)			(1.9)			(5.6)			(3.4)									(7.0)			(3.6)
Prior accident year development			3.7			8.7			(1.3)			3.1			3.2			4.3			(0.1)									3.6			2.5
Underlying combined ratio			87.7			92.9			89.3			91.7			87.9			87.8			88.9									89.9			88.2
MIDDLE & LARGE COMMERCIAL
Combined ratio			101.2			124.3			103.8			100.5			107.3			105.8			103.0									109.5			105.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(5.1)			(9.8)			(3.6)			(4.2)			(5.4)			(4.1)			(5.0)									(6.1)			(4.9)
Prior accident year development			1.6			(1.6)			0.2			1.1			(2.4)			(0.7)			0.2									0.1			(1.0)
Underlying combined ratio			97.7			112.9			100.4			97.4			99.6			100.9			98.1									103.5			99.6
GLOBAL SPECIALTY
Combined ratio [2] [4]			99.6			113.8			102.2			104.5			97.9			120.4			85.7									105.2			103.1
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(3.2)			(1.2)			(0.6)			(2.7)			(2.9)			(2.3)			(2.3)									(1.7)			(2.6)
Prior accident year development [2]			1.8			(7.1)			(5.2)			(1.1)			1.1			(18.2)			5.9									(3.5)			(4.2)
Current accident year change in loss reserves upon acquisition of a business			—			—			—			—			—			(9.1)			—									—			(2.9)
Underlying combined ratio			98.2			105.5			96.4			100.8			96.2			90.7			89.4									100.0			93.4

[1]The three and nine months ended September 30, 2020 included COVID-19 losses, net of favorable workers' compensation frequency, of 1.6 points and 3.7 points, respectively. See note [2] on page 8.

[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended September 30, 2020.

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

[4]The three and nine months ended September 30, 2020 included a change in deferred gain on retroactive reinsurance of $14 and $97, respectively, representing 0.6 points and 1.5 points, respectively of the Commercial Lines combined ratio and 2.5 points and 5.8 points, respectively, of the global specialty combined ratio.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
WRITTEN PREMIUMS
Small Commercial			$	890		$	877		$	1,011		$	881		$	897		$	960		$	1,010								$	2,778		$	2,867
Middle & Large Commercial			750			683			797			779			768			757			757									2,230			2,282
Middle Market			653			609			680			673			675			673			641									1,942			1,989
National Accounts and Other			97			74			117			106			93			84			116									288			293
Global Specialty			549			595			589			519			559			353			171									1,733			1,083
U.S. [1]			395			389			379			364			376			274			171									1,163			821
International [2]			88			119			98			113			115			43			—									305			158
Global Re [3]			66			87			112			42			68			36			—									265			104
Other			10			10			11			11			11			8			11									31			30
Total			$	2,199		$	2,165		$	2,408		$	2,190		$	2,235		$	2,078		$	1,949								$	6,772		$	6,262
EARNED PREMIUMS
Small Commercial			$	935		$	877		$	930		$	939		$	936		$	933		$	910								$	2,742		$	2,779
Middle & Large Commercial			749			713			772			786			765			729			703									2,234			2,197
Middle Market			646			625			673			683			674			637			608									1,944			1,919
National Accounts and Other			103			88			99			103			91			92			95									290			278
Global Specialty			555			557			552			542			538			314			153									1,664			1,005
U.S. [1]			387			368			374			360			362			241			153									1,129			756
International [2]			101			117			112			106			101			44			—									330			145
Global Re [3]			67			72			66			76			75			29			—									205			104
Other			12			10			11			9			11			11			11									33			33
Total			$	2,251		$	2,157		$	2,265		$	2,276		$	2,250		$	1,987		$	1,777								$	6,673		$	6,014
U.S. STANDARD COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION [4]
New Business Premium
Small Commercial			$	129		$	118		$	157		$	138		$	150		$	183		$	175								$	404		$	508
Middle Market			$	131		$	99		$	125		$	121		$	146		$	177		$	140								$	355		$	463
Renewal Price Increases [5]
Standard Commercial Lines - Written			3.7		%	3.8		%	4.3		%	3.6		%	3.1		%	2.1		%	1.5		%							4.0		%	2.2		%
Standard Commercial Lines - Earned			4.1		%	3.8		%	3.1		%	2.5		%	2.1		%	2.1		%	2.3		%							3.7		%	2.2		%
Policy Count Retention [5]
Small Commercial [6]			79		%	88		%	84		%	83		%	83		%	83		%	84		%							84		%	83		%
Middle Market			77		%	79		%	77		%	77		%	83		%	81		%	81		%							78		%	82		%
Premium Retention [5]
Small Commercial			82		%	86		%	86		%	86		%	85		%	86		%	85		%							85		%	85		%
Middle Market			75		%	77		%	82		%	81		%	83		%	86		%	84		%							78		%	84		%
Policies in Force (in thousands) [5]
Small Commercial			1,278			1,297			1,291			1,291			1,294			1,291			1,280
Middle Market			59			60			62			62			64			64			64

[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").

[2]International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.

[3]Global Re includes assumed premiums previously written by Navigators Re.

[4]Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines.

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

[6]Policy count retention for small commercial increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium with resumption of non-payment cancellations in third quarter 2020.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Written premiums [1]			$	781		$	738		$	744		$	714		$	822		$	824		$	771								$	2,263		$	2,417
Change in unearned premium reserve			2			44			(30)			(81)			19			23			(28)									16			14
Earned premiums [1]			779			694			774			795			803			801			799									2,247			2,403
Fee income			8			9			9			9			9			10			9									26			28
Losses and loss adjustment expenses
Current accident year before catastrophes			436			356			463			539			531			517			500									1,255			1,548
Current accident year catastrophes			122			55			19			26			32			48			34									196			114
Prior accident year development			(29)			(349)			(18)			(17)			(28)			4			(1)									(396)			(25)
Total losses and loss adjustment expenses			529			62			464			548			535			569			533									1,055			1,637
Amortization of DAC			60			61			64			65			64			65			65									185			194
Underwriting expenses			146			150			151			161			154			155			155									447			464
Amortization of other intangible assets			—			2			1			2			1			2			1									3			4
Underwriting gain			52			428			103			28			58			20			54									583			132
Net servicing income			5			3			2			2			4			4			3									10			11
Net investment income			41			28			41			45			46			46			42									110			134
Net realized capital gains (losses)			3			8			(23)			7			9			8			19									(12)			36
Other income (expense)			(2)			1			—			—			—			(2)			1									(1)			(1)
Income before income taxes			99			468			123			82			117			76			119									690			312
Income tax expense			20			97			25			16			23			14			23									142			60
Net income			79			371			98			66			94			62			96									548			252
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax			(3)			(8)			23			(7)			(9)			(8)			(18)									12			(35)
Income tax expense (benefit) [2]			1			1			(4)			2			2			1			4									(2)			7
Core earnings			$	77		$	364		$	117		$	61		$	87		$	55		$	82								$	558		$	224

[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.

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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																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Auto liability			$	(32)		$	(15)		$	(6)		$	(10)		$	(23)		$	—		$	(5)								$	(53)		$	(28)
Homeowners			3			2			(2)			3			(1)			—			1									3			—
Catastrophes [1]			—			(333)			(8)			(8)			—			2			4									(341)			6
Other reserve re-estimates, net			—			(3)			(2)			(2)			(4)			2			(1)									(5)			(3)
Total prior accident year development			$	(29)		$	(349)		$	(18)		$	(17)		$	(28)		$	4		$	(1)								$	(396)		$	(25)

[1] The three months ended June 30, 2020 and the nine months ended September 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 [1] on page 9 for further discussion.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
UNDERWRITING GAIN			$	52		$	428		$	103		$	28		$	58		$	20		$	54								$	583		$	132
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes			56.0			51.3			59.8			67.8			66.1			64.5			62.6									55.9			64.4
Current accident year catastrophes			15.7			7.9			2.5			3.3			4.0			6.0			4.3									8.7			4.7
Prior accident year development			(3.7)			(50.3)			(2.3)			(2.1)			(3.5)			0.5			(0.1)									(17.6)			(1.0)
Total losses and loss adjustment expenses			67.9			8.9			59.9			68.9			66.6			71.0			66.7									47.0			68.1
Expenses			25.4			29.4			26.7			27.5			26.2			26.5			26.5									27.1			26.4
Combined ratio			93.3			38.3			86.7			96.5			92.8			97.5			93.2									74.1			94.5
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			(12.0)			42.4			(0.2)			(1.2)			(0.5)			(6.5)			(4.2)									8.9			(3.7)
Underlying combined ratio			81.4			80.7			86.6			95.3			92.3			91.0			89.1									83.0			90.8
PRODUCT
Automobile
Combined ratio			81.3			82.5			89.8			100.3			95.7			97.2			93.1									84.6			95.3
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(1.5)			(1.8)			(0.3)			(0.6)			(1.2)			(0.9)			(0.6)									(1.2)			(0.9)
Prior accident year development			5.2			5.6			1.5			2.8			4.2			0.5			1.1									4.0			1.9
Underlying combined ratio			84.9			86.3			90.9			102.5			98.8			96.7			93.6									87.4			96.4
Homeowners
Combined ratio			122.9			(45.8)			79.2			87.8			86.5			99.3			93.1									52.1			93.0
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(47.7)			(20.1)			(7.0)			(9.2)			(10.6)			(17.6)			(12.7)									(24.9)			(13.6)
Prior accident year development			(1.2)			136.0			4.0			0.4			0.7			(2.6)			(2.1)									46.2			(1.3)
Underlying combined ratio			74.0			70.1			76.2			79.1			76.6			79.2			78.4									73.4			78.1

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct			$	666		$	627		$	627		$	590		$	690		$	692		$	643								$	1,920		$	2,025
AARP Agency			53			50			57			58			59			60			62									160			181
Other Agency			54			54			52			58			64			63			58									160			185
Other			8			7			8			8			9			9			8									23			26
Total			$	781		$	738		$	744		$	714		$	822		$	824		$	771								$	2,263		$	2,417
EARNED PREMIUMS
AARP Direct			$	657		$	581		$	647		$	664		$	667		$	663		$	657								$	1,885		$	1,987
AARP Agency			56			52			60			61			62			63			65									168			190
Other Agency			57			54			60			63			64			66			68									171			198
Other			9			7			7			7			10			9			9									23			28
Total			$	779		$	694		$	774		$	795		$	803		$	801		$	799								$	2,247		$	2,403
PRODUCT LINE
WRITTEN PREMIUMS
Automobile			$	529		$	481		$	534		$	495		$	562		$	564		$	555								$	1,544		$	1,681
Homeowners			252			257			210			219			260			260			216									719			736
Total			$	781		$	738		$	744		$	714		$	822		$	824		$	771								$	2,263		$	2,417
EARNED PREMIUMS
Automobile			$	541		$	456		$	536		$	551		$	558		$	557		$	555								$	1,533		$	1,670
Homeowners			238			238			238			244			245			244			244									714			733
Total			$	779		$	694		$	774		$	795		$	803		$	801		$	799								$	2,247		$	2,403

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile			$	55		$	65		$	58		$	47		$	58		$	59		$	56								$	178		$	173
Homeowners			$	16		$	18		$	17		$	16		$	21		$	20		$	16								$	51		$	57
Renewal Written Price Increases
Automobile			2.2		%	2.6		%	3.1		%	3.8		%	4.1		%	4.8		%	5.5		%							2.6		%	4.8		%
Homeowners			7.2		%	5.1		%	4.7		%	5.1		%	5.9		%	7.0		%	7.9		%							5.7		%	6.9		%
Renewal Earned Price Increases
Automobile			3.1		%	3.6		%	4.2		%	4.6		%	5.1		%	5.6		%	6.5		%							3.7		%	5.8		%
Homeowners			5.3		%	5.4		%	6.1		%	7.0		%	8.0		%	8.9		%	9.6		%							5.6		%	8.8		%
Policy Count Retention [1]
Automobile			84		%	90		%	86		%	85		%	85		%	85		%	85		%							86		%	85		%
Homeowners			84		%	89		%	86		%	85		%	86		%	85		%	84		%							86		%	85		%
Premium Retention
Automobile [2]			85		%	74		%	86		%	86		%	87		%	87		%	87		%							81		%	87		%
Homeowners			91		%	92		%	89		%	88		%	90		%	90		%	89		%							91		%	90		%
Policies in Force (in thousands)
Automobile			1,392			1,416			1,410			1,422			1,445			1,465			1,485
Homeowners			846			865			868			877			893			903			913

[1] Policy count retention increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium (until May 31, 2020 in most states) and resumption of non-payment cancellations in third quarter 2020.

[2] Premium retention for automobile decreased in the three month period ended June 30, 2020 largely due to $81 of premium credits given to automobile policyholders. Excluding the impact of the premium credits, automobile premium retention would have been 88% in second quarter 2020. See footnote [1] on page 15 for further information.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

 

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Written premiums			$	—		$	—		$	—		$	—		$	—		$	—		$	—								$	—		$	—
Change in unearned premium reserve			—			—			—			(2)			—			—			—									—			—
Earned premiums			—			—			—			2			—			—			—									—			—
Losses and loss adjustment expenses
Prior accident year development			11			4			—			12			—			9			—									15			9
Total losses and loss adjustment expenses			11			4			—			12			—			9			—									15			9
Underwriting expenses			2			3			3			3			3			3			3									8			9
Underwriting loss			(13)			(7)			(3)			(13)			(3)			(12)			(3)									(23)			(18)
Net investment income			14			10			16			20			21			21			22									40			64
Net realized capital gains (losses)			2			2			(7)			3			4			4			9									(3)			17
Income before income taxes			3			5			6			10			22			13			28									14			63
Income tax expense			1			—			1			1			4			2			5									2			11
Net income			2			5			5			9			18			11			23									12			52
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax			(2)			(2)			7			(3)			(4)			(3)			(9)									3			(16)
Income tax expense (benefit) [1]			2			(1)			(1)			1			1			—			2									—			3
Core earnings			$	2		$	2		$	11		$	7		$	15		$	8		$	16								$	15		$	39

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Earned premiums			$	1,317		$	1,378		$	1,348		$	1,345		$	1,337		$	1,377		$	1,364								$	4,043		$	4,078
Fee income			44			45			43			45			45			45			45									132			135
Net investment income			117			92			115			123			121			121			121									324			363
Net realized capital gains (losses)			9			3			(8)			8			14			7			5									4			26
Total revenues			1,487			1,518			1,498			1,521			1,517			1,550			1,535									4,503			4,602
Benefits, losses and loss adjustment expenses [1]			1,005			1,033			1,007			957			983			1,062			1,053									3,045			3,098
Amortization of DAC			13			13			13			13			14			14			13									39			41
Insurance operating costs and other expenses [2]			312			340			339			343			329			324			315									991			968
Amortization of other intangible assets			10			9			11			10			10			11			10									30			31
Total benefits, losses and expenses			1,340			1,395			1,370			1,323			1,336			1,411			1,391									4,105			4,138
Income before income taxes			147			123			128			198			181			139			144									398			464
Income tax expense			28			22			24			39			35			26			26									74			87
Net income			119			101			104			159			146			113			118									324			377
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(9)			(2)			8			(7)			(15)			(6)			(5)									(3)			(26)
Integration and transaction costs associated with acquired business, before tax			5			5			5			8			9			10			9									15			28
Income tax expense (benefit) [3]			1			(2)			(2)			1			1			(2)			—									(3)			(1)
Core earnings			$	116		$	102		$	115		$	161		$	141		$	115		$	122								$	333		$	378
Margin
Net income margin			8.0		%	6.7		%	6.9		%	10.5		%	9.6		%	7.3		%	7.7		%							7.2		%	8.2		%
Core earnings margin*			7.9		%	6.9		%	7.8		%	10.6		%	9.4		%	7.5		%	8.0		%							7.5		%	8.3		%
ROE
Net income available to common stockholders [4]			11.0		%	12.0		%	13.4		%	14.2		%	12.9		%	11.2		%	11.1		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(0.3		%)	(0.4		%)	(0.6		%)	(1.0		%)	(0.1		%)	0.4		%	0.6		%
Integration and transaction costs associated with acquired business, before tax			0.6		%	0.7		%	0.9		%	1.1		%	1.2		%	1.3		%	1.4		%
Income tax benefit [3]			(0.1		%)	(0.1		%)	(0.1		%)	—		%	(0.4		%)	(0.1		%)	(0.1)		%
Impact of AOCI, excluded from core earnings ROE			1.8		%	1.5		%	0.6		%	0.5		%	0.7		%	0.5		%	0.3		%
Core earnings [4]			13.0		%	13.7		%	14.2		%	14.8		%	14.3		%	13.3		%	13.3		%

[1]The three and nine months ended September 30, 2020 included $35 and $89, respectively, of incurred benefits and losses arising from the COVID-19 pandemic, with benefits and losses in the nine month period including $28 and $71, respectively, in group life claims and $7 and $18, respectively, in losses from short-term disability and New York Paid Family Leave claims.

[2]The three and nine months ended September 30, 2020 included ($8) and $8, respectively, of before tax increases (decreases) in the ACL on uncollectible premiums receivable with the increase for the nine month period due to the economic impacts of COVID-19.

[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.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

21

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA

 

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
PREMIUMS
Fully insured ongoing premiums
Group disability			$	652		$	672		$	660		$	657		$	652		$	679		$	659								$	1,984		$	1,990
Group life			594			605			605			620			621			633			641									1,804			1,895
Other [1]			70			72			58			67			64			61			62									200			187
Total fully insured ongoing premiums			1,316			1,349			1,323			1,344			1,337			1,373			1,362									3,988			4,072
Total buyouts [2]			1			29			25			1			—			4			2									55			6
Total premiums			$	1,317		$	1,378		$	1,348		$	1,345		$	1,337		$	1,377		$	1,364								$	4,043		$	4,078
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability			$	55		$	65		$	213		$	43		$	29		$	48		$	219								$	333		$	296
Group life			69			73			136			16			30			43			143									278			216
Other [1]			10			11			36			8			15			8			45									57			68
Total fully insured ongoing sales			134			149			385			67			74			99			407									668			580
Total buyouts [2]			1			29			25			1			—			4			2									55			6
Total sales			$	135		$	178		$	410		$	68		$	74		$	103		$	409								$	723		$	586
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]			65.3		%	62.6		%	71.5		%	62.0		%	64.4		%	72.9		%	69.6		%							66.4		%	69.0		%
Group life loss ratio [4]			87.5		%	85.9		%	74.6		%	78.1		%	80.8		%	77.8		%	81.3		%							82.6		%	80.0		%
Total loss ratio			73.8		%	72.0		%	71.9		%	68.8		%	71.1		%	74.6		%	74.7		%							72.6		%	73.5		%
Expense ratio [5]			24.3		%	25.6		%	26.2		%	25.8		%	24.9		%	23.9		%	23.4		%							25.4		%	24.1		%

[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 nine months ended September 30, 2020 included buyout premiums primarily from two large accounts.

[3]The three and nine months ended September 30, 2020 included 1.0 points and 0.9 points, respectively, of incurred losses from COVID-19 short-term disability and New York paid family leave claims.

[4]The three and nine months ended September 30, 2020 included 4.7 points and 3.9 points, respectively, of incurred losses from COVID-19 group life claims.

[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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Investment management fees			$	182		$	165		$	178		$	185		$	183		$	180		$	171								$	525		$	534
Shareholder servicing fees			22			20			22			22			22			21			21									64			64
Other revenue			47			43			48			51			50			52			48									138			150
Net realized capital gains (losses)			5			8			(11)			2			1			—			2									2			3
Total revenues			256			236			237			260			256			253			242									729			751
Sub-advisory expense			66			60			64			67			67			65			62									190			194
Employee compensation and benefits			29			28			32			28			26			28			32									89			86
Distribution and service			82			75			80			83			84			84			81									237			249
General, administrative and other			24			23			17			31			28			29			30									64			87
Total expenses			201			186			193			209			205			206			205									580			616
Income before income taxes			55			50			44			51			51			47			37									149			135
Income tax expense			11			11			8			10			11			9			7									30			27
Net income			$	44		$	39		$	36		$	41		$	40		$	38		$	30								$	119		$	108
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(5)			(8)			11			(1)			(1)			—			(2)									(2)			(3)
Income tax expense (benefit) [1]			1			2			(3)			—			—			—			—									—			—
Core earnings			$	40		$	33		$	44		$	40		$	39		$	38		$	28								$	117		$	105
Daily average Hartford Funds AUM			$122,528			$110,864			$119,632			$121,709			$119,738			$117,875			$112,210									$	117,693		$	116,635
Return on assets (bps, net of tax) [2]
Net income			14.4			14.1			12.0			13.0			13.3			12.9			10.9									13.5			12.4
Core earnings*			13.1			11.9			14.7			12.7			12.9			12.9			10.3									13.3			12.1
ROE
Net income available to common stockholders [3]			48.2		%	48.2		%	50.2		%	49.7		%	48.0		%	49.7		%	51.3		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains) excluded from core earnings, before tax			(0.9		%)	0.3		%	3.0		%	(1.4		%)	—		%	0.4		%	0.7		%
Income tax benefit [1]			—		%	(0.3		%)	(1.0		%)	—		%	(0.3		%)	(0.4		%)	(0.4)		%
Impact of AOCI, excluded from core earnings ROE			0.3		%	0.1		%	(0.7		%)	(0.5		%)	(0.6		%)	(0.6		%)	(0.4)		%
Core earnings [3]			47.6		%	48.3		%	51.5		%	47.8		%	47.1		%	49.1		%	51.2		%

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

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

[3]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.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

23

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

ASSET VALUE ROLLFORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Equity Funds
Beginning balance			$	66,838		$	55,076		$	71,629		$	66,999		$	68,474		$	66,158		$	56,986								$	71,629		$	56,986
Sales			3,545			5,038			5,313			2,888			3,003			3,761			4,358									13,896			11,122
Redemptions			(5,102)			(5,083)			(5,701)			(3,554)			(3,867)			(4,153)			(3,893)									(15,886)			(11,913)
Net flows			(1,557)			(45)			(388)			(666)			(864)			(392)			465									(1,990)			(791)
Change in market value and other			5,368			11,807			(16,165)			5,296			(611)			2,708			8,707									1,010			10,804
Ending balance			$	70,649		$	66,838		$	55,076		$	71,629		$	66,999		$	68,474		$	66,158								$	70,649		$	66,999
Fixed Income Funds
Beginning balance			$	14,771		$	14,558		$	16,130		$	15,685		$	15,569		$	15,070		$	14,467								$	16,130		$	14,467
Sales			1,640			1,667			1,782			1,421			1,420			1,274			1,314									5,089			4,008
Redemptions			(1,121)			(2,241)			(2,632)			(1,122)			(1,491)			(1,121)			(1,138)									(5,994)			(3,750)
Net flows			519			(574)			(850)			299			(71)			153			176									(905)			258
Change in market value and other			365			787			(722)			146			187			346			427									430			960
Ending balance			$	15,655		$	14,771		$	14,558		$	16,130		$	15,685		$	15,569		$	15,070								$	15,655		$	15,685
Multi-Strategy Investments Funds [1]
Beginning balance			$	20,526		$	18,407		$	21,332		$	20,429		$	20,095		$	19,540		$	18,233								$	21,332		$	18,233
Sales			693			801			1,026			952			776			672			640									2,520			2,088
Redemptions			(841)			(733)			(1,145)			(825)			(768)			(823)			(869)									(2,719)			(2,460)
Net flows			(148)			68			(119)			127			8			(151)			(229)									(199)			(372)
Change in market value and other			738			2,051			(2,806)			776			326			706			1,536									(17)			2,568
Ending balance			$	21,116		$	20,526		$	18,407		$	21,332		$	20,429		$	20,095		$	19,540								$	21,116		$	20,429
Exchange-traded Products ("ETP") AUM
Beginning balance			$	2,586		$	2,574		$	3,442		$	2,847		$	2,751		$	2,457		$	1,871								$	3,442		$	1,871
Net flows			(80)			(124)			(67)			458			127			285			462									(271)			874
Change in market value and other			115			136			(801)			137			(31)			9			124									(550)			102
Ending balance			$	2,621		$	2,586		$	2,574		$	3,442		$	2,847		$	2,751		$	2,457								$	2,621		$	2,847
Mutual Fund and ETP AUM
Beginning balance			$	104,721		$	90,615		$	112,533		$	105,960		$	106,889		$	103,225		$	91,557								$	112,533		$	91,557
Sales - mutual fund			5,878			7,506			8,121			5,261			5,199			5,707			6,312									21,505			17,218
Redemptions - mutual fund			(7,064)			(8,057)			(9,478)			(5,501)			(6,126)			(6,097)			(5,900)									(24,599)			(18,123)
Net flows - ETP			(80)			(124)			(67)			458			127			285			462									(271)			874
Net flows - mutual fund and ETP			(1,266)			(675)			(1,424)			218			(800)			(105)			874									(3,365)			(31)
Change in market value and other			6,586			14,781			(20,494)			6,355			(129)			3,769			10,794									873			14,434
Ending balance			110,041			104,721			90,615			112,533			105,960			106,889			103,225									110,041			105,960
Talcott Resolution life and annuity separate account AUM [2]			13,669			13,123			11,538			14,425			14,021			14,412			14,364									13,669			14,021
Hartford Funds AUM			$	123,710		$	117,844		$	102,153		$	126,958		$	119,981		$	121,301		$	117,589								$	123,710		$	119,981

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

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

24

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

 

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Fee income			$	13		$	12		$	13		$	12		$	14		$	11		$	13								$	38		$	38
Other revenue (loss) [1]			(21)			73			2			28			24			10			34									54			68
Net investment income			3			4			9			15			10			17			24									16			51
Net realized capital gains (losses)			13			24			(39)			1			1			7			13									(2)			21
Total revenues			8			113			(15)			56			49			45			84									106			178
Benefits, losses and loss adjustment expenses [2]			1			6			6			9			5			3			2									13			10
Insurance operating costs and other expenses			9			29			21			17			20			33			13									59			66
Loss on extinguishment of debt [3]			—			—			—			—			90			—			—									—			90
Interest expense			58			57			64			65			67			63			64									179			194
Restructuring and other costs			87			—			—			—			—			—			—									87			—
Total expenses			155			92			91			91			182			99			79									338			360
Income (loss) before income taxes			(147)			21			(106)			(35)			(133)			(54)			5									(232)			(182)
Income tax expense (benefit)			(39)			3			(15)			(6)			(34)			(11)			5									(51)			(40)
Net income (loss)			(108)			18			(91)			(29)			(99)			(43)			—									(181)			(142)
Preferred stock dividends			6			5			5			5			11			—			5									16			16
Net income (loss) available to common stockholders			(114)			13			(96)			(34)			(110)			(43)			(5)									(197)			(158)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax			(12)			(26)			40			(2)			—			(8)			(13)									2			(21)
Restructuring and other costs, before tax			87			—			—			—			—			—			—									87			—
Loss on extinguishment of debt, before tax			—			—			—			—			90			—			—									—			90
Transaction costs, before tax [4]			—			—			—			1			1			15			—									—			16
Income tax expense (benefit) [5]			(18)			7			(8)			(4)			(18)			1			3									(19)			(14)
Core losses			$	(57)		$	(6)		$	(64)		$	(39)		$	(37)		$	(35)		$	(15)								$	(127)		$	(87)

[1]The three months ended September 30, 2020 and 2019 include $(21)and $14, respectively, and the nine months ended September 30, 2020 and 2019 include $43 and $45, respectively, of income (loss) before tax from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.

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

[3]For the three and nine month periods ended September 30, 2019, amount relates to the redemptions of $265 of 5.75% senior notes that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes of The Hartford Financial Services Group, Inc.

[4]Related to transaction costs incurred in connection with the acquisition of Navigators Group that are included in insurance operating costs and other expenses.

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

25

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable			$	287		$	280		$	298		$	319		$	306		$	296		$	284								$	865		$	886
Tax-exempt			72			77			79			81			86			90			97									228			273
Total fixed maturities			359			357			377			400			392			386			381									1,093			1,159
Equity securities			9			6			12			15			12			12			7									27			31
Mortgage loans			44			42			42			47			37			41			40									128			118
Limited partnerships and other alternative investments [2]			83			(71)			58			51			65			60			56									70			181
Other [3]			14			21			(12)			11			5			7			9									23			21
Subtotal			509			355			477			524			511			506			493									1,341			1,510
Investment expense			(17)			(16)			(18)			(21)			(21)			(18)			(23)									(51)			(62)
Total net investment income			$	492		$	339		$	459		$	503		$	490		$	488		$	470								$	1,290		$	1,448
Annualized investment yield, before tax [4]			3.8		%	2.7		%	3.7		%	4.0		%	4.0		%	4.2		%	4.1		%							3.4		%	4.1		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			18.3		%	(15.3		%)	13.2		%	11.9		%	15.3		%	13.9		%	13.4		%							5.2		%	14.7		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*			3.3		%	3.4		%	3.3		%	3.8		%	3.6		%	3.8		%	3.7		%							3.3		%	3.7		%
Annualized investment yield, net of tax [4]			3.2		%	2.2		%	3.0		%	3.3		%	3.3		%	3.4		%	3.4		%							2.8		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*			2.7		%	2.8		%	2.7		%	3.1		%	3.0		%	3.1		%	3.1		%							2.7		%	3.1		%
Average reinvestment rate [5]			2.1		%	2.7		%	2.9		%	3.1		%	3.1		%	3.5		%	4.1		%							2.5		%	3.5		%
Average sales/maturities yield [6]			3.5		%	3.6		%	3.3		%	3.8		%	4.1		%	4.0		%	4.1		%							3.5		%	4.0		%
Portfolio duration (in years) [7]			5.0			5.0			4.8			5.0			4.9			4.9			4.8									5.0			4.9

[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.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable			$	210		$	206		$	216		$	232		$	218		$	201		$	182								$	632		$	601
Tax-exempt			53			57			58			59			65			68			73									168			206
Total fixed maturities			263			263			274			291			283			269			255									800			807
Equity securities			6			3			10			9			9			8			5									19			22
Mortgage loans			31			30			29			32			26			28			27									90			81
Limited partnerships and other alternative investments [2]			72			(62)			48			38			52			50			46									58			148
Other [3]			12			19			(14)			9			3			7			7									17			17
Subtotal			384			253			347			379			373			362			340									984			1,075
Investment expense			(13)			(11)			(13)			(16)			(15)			(14)			(17)									(37)			(46)
Total net investment income			$	371		$	242		$	334		$	363		$	358		$	348		$	323								$	947		$	1,029
Annualized investment yield, before tax [4]			3.9		%	2.6		%	3.6		%	4.0		%	4.0		%	4.2		%	4.2		%							3.4		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			19.2		%	(15.9		%)	13.1		%	10.6		%	14.6		%	13.9		%	13.0		%							5.2		%	14.3		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.3		%	3.5		%	3.2		%	3.7		%	3.6		%	3.8		%	3.8		%							3.3		%	3.7		%
Annualized investment yield, net of tax [4]			3.3		%	2.2		%	3.0		%	3.3		%	3.3		%	3.5		%	3.6		%							2.8		%	3.5		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			2.7		%	2.9		%	2.7		%	3.1		%	3.0		%	3.2		%	3.2		%							2.7		%	3.1		%
Average reinvestment rate [5]			2.0		%	2.7		%	2.9		%	3.0		%	3.1		%	3.5		%	4.1		%							2.4		%	3.5		%
Average sales/maturities yield [6]			3.4		%	3.5		%	3.2		%	3.8		%	4.1		%	3.9		%	4.1		%							3.4		%	4.0		%
Portfolio duration (in years) [7]			5.0			4.9			4.7			4.8			4.8			4.8			4.9									5.0			4.8

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

27

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable			$	76		$	73		$	76		$	79		$	81		$	81		$	81								$	225		$	243
Tax-exempt			17			18			19			20			20			20			22									54			62
Total fixed maturities			93			91			95			99			101			101			103									279			305
Equity securities			2			1			1			—			1			1			—									4			2
Mortgage loans			13			12			13			15			11			13			13									38			37
Limited partnerships and other alternative investments [2]			11			(9)			10			13			13			10			10									12			33
Other [3]			2			2			1			1			1			—			1									5			2
Subtotal			121			97			120			128			127			125			127									338			379
Investment expense			(4)			(5)			(5)			(5)			(6)			(4)			(6)									(14)			(16)
Total net investment income			$	117		$	92		$	115		$	123		$	121		$	121		$	121								$	324		$	363
Annualized investment yield, before tax [4]			4.1		%	3.2		%	4.0		%	4.3		%	4.2		%	4.2		%	4.2		%							3.7		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			13.8		%	(12.4		%)	14.0		%	18.2		%	19.0		%	14.0		%	15.6		%							5.0		%	16.9		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.8		%	3.6		%	3.7		%	3.9		%	3.8		%	3.9		%	3.9		%							3.7		%	3.9		%
Annualized investment yield, net of tax [4]			3.3		%	2.6		%	3.3		%	3.5		%	3.4		%	3.4		%	3.4		%							3.1		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			3.1		%	3.0		%	3.0		%	3.2		%	3.1		%	3.2		%	3.2		%							3.0		%	3.2		%
Average reinvestment rate [5]			2.4		%	3.3		%	3.2		%	3.3		%	3.4		%	3.8		%	4.0		%							2.9		%	3.7		%
Average sales/maturities yield [6]			3.8		%	3.9		%	4.0		%	4.1		%	4.3		%	4.2		%	4.0		%							3.9		%	4.2		%
Portfolio duration (in years) [7]			6.2			6.1			5.9			6.1			6.0			5.9			5.8									6.2			6.0

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

			THREE MONTHS ENDED																								NINE MONTHS ENDED
Net Investment Income by Segment			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Investment Income
Commercial Lines			$	316		$	204		$	277		$	298		$	291		$	281		$	259								$	797		$	831
Personal Lines			41			28			41			45			46			46			42									110			134
P&C Other Operations			14			10			16			20			21			21			22									40			64
Total Property & Casualty			371			242			334			363			358			348			323									947			1,029
Group Benefits			117			92			115			123			121			121			121									324			363
Hartford Funds			1			1			1			2			1			2			2									3			5
Corporate			3			4			9			15			10			17			24									16			51
Total net investment income by segment			$	492		$	339		$	459		$	503		$	490		$	488		$	470								$	1,290		$	1,448
			THREE MONTHS ENDED																											NINE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Total Property & Casualty			$	72		$	(62)		$	48		$	38		$	52		$	50		$	46								$	58		$	148
Group Benefits			11			(9)			10			13			13			10			10									12			33
Total net investment income from limited partnerships and other alternative investments [1]			$	83		$	(71)		$	58		$	51		$	65		$	60		$	56								$	70		$	181

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Realized Capital Gains (Losses)
Gross gains on sales			$	27		$	96		$	78		$	44		$	77		$	69		$	44								$	201		$	190
Gross losses on sales			(12)			(22)			(8)			(12)			(4)			(19)			(21)									(42)			(44)
Equity securities [1]			42			75			(386)			73			19			30			132									(269)			181
Net credit losses on fixed maturities, AFS			(1)			(20)			(12)																					(33)
Change in ACL on mortgage loans			5			(22)			(2)																					(19)
Intent-to-sell impairments			—			—			(5)			—			—			—			—									(5)			—
Net impairment losses												—			(1)			—			(2)												(3)
Valuation allowances on mortgage loans												—			—			1			—												1
Other net gains (losses) [2]			(55)			2			104			(42)			(2)			(1)			10									51			7
Total net realized capital gains (losses)			6			109			(231)			63			89			80			163									(116)			332
Net realized capital gains, included in core earnings, before tax			—			(2)			(1)			(1)			(1)			(1)			(3)									(3)			(5)
Total net realized capital gains (losses) excluded from core earnings, before tax			6			107			(232)			62			88			79			160									(119)			327
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings			5			(21)			48			(11)			(18)			(18)			(34)									32			(70)
Total net realized capital gains (losses) excluded from core earnings, after tax			$	11		$	86		$	(184)		$	51		$	70		$	61		$	126								$	(87)		$	257

[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. The three and nine months ended September 30, 2020 included $0 and $75, respectively, of realized gains on terminated derivatives used to hedge against a decline in equity market levels. For the same periods, also includes a loss on sale of Continental Europe Operations of $51.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

			Sept 30 2020						Jun 30 2020						Mar 31 2020						Dec 31 2019						Sept 30 2019
			Amount [1]			Percent			Amount			Percent			Amount			Percent			Amount [1]			Percent			Amount			Percent
Total investments			$	54,778		100.0		%	$	53,028		100.0		%	$	50,359		100.0		%	$	53,030		100.0		%	$	52,577		100.0		%
Asset-backed securities			$	1,490		3.4		%	$	1,416		3.3		%	$	1,348		3.4		%	$	1,476		3.5		%	$	1,337		3.1		%
Collateralized loan obligations			2,449			5.6		%	2,187			5.2		%	1,989			5.0		%	2,183			5.2		%	2,158			5.1		%
Commercial mortgage-backed securities			4,444			10.1		%	4,211			10.0		%	4,302			10.6		%	4,338			10.3		%	4,254			10.1		%
Corporate			19,416			44.1		%	18,563			44.0		%	16,798			41.8		%	17,396			41.4		%	17,801			42.0		%
Foreign government/government agencies			984			2.2		%	972			2.3		%	1,063			2.6		%	1,123			2.7		%	1,117			2.6		%
Municipal [2]			9,310			21.1		%	9,394			22.2		%	9,497			23.6		%	9,498			22.5		%	9,895			23.4		%
Residential mortgage-backed securities			4,548			10.3		%	3,895			9.3		%	4,086			10.2		%	4,869			11.4		%	4,732			11.1		%
U.S. Treasuries			1,403			3.2		%	1,562			3.7		%	1,122			2.8		%	1,265			3.0		%	1,095			2.6		%
Total fixed maturities, available-for-sale			$	44,044		100.0		%	$	42,200		100.0		%	$	40,205		100.0		%	$	42,148		100.0		%	$	42,389		100.0		%
U.S. government/government agencies			$	5,650		12.8		%	$	5,204		12.3		%	$	5,126		12.8		%	$	5,644		13.4		%	$	5,588		13.2		%
AAA			6,789			15.4		%	6,471			15.3		%	6,395			15.9		%	6,617			15.7		%	6,360			15.0		%
AA			8,152			18.5		%	8,013			19.0		%	7,755			19.3		%	8,146			19.3		%	8,202			19.4		%
A			11,414			25.9		%	11,289			26.8		%	10,541			26.2		%	10,843			25.7		%	10,894			25.7		%
BBB			10,291			23.4		%	9,590			22.7		%	8,962			22.3		%	9,530			22.6		%	9,850			23.2		%
BB			1,222			2.8		%	1,112			2.6		%	974			2.4		%	877			2.1		%	994			2.3		%
B			480			1.1		%	481			1.2		%	408			1.0		%	456			1.1		%	463			1.1		%
CCC			37			0.1		%	31			0.1		%	35			0.1		%	26			0.1		%	29			0.1		%
CC & below			9			—		%	9			—		%	9			—		%	9			—		%	9			—		%
Total fixed maturities, available-for-sale			$	44,044		100.0		%	$	42,200		100.0		%	$	40,205		100.0		%	$	42,148		100.0		%	$	42,389		100.0		%

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

[2]Primarily comprised of $6.9 billion in Property & Casualty, $2.2 billion in Group Benefits, and $0.2 billion in Corporate as of September 30, 2020.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

SEPTEMBER 30, 2020

			Cost or Amortized Cost			Fair Value			Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services			$	4,818		$	5,117		9.3		%
Consumer non-cyclical			2,882			3,140			5.7		%
Technology and communications			2,611			2,924			5.3		%
Utilities			1,971			2,174			4.0		%
Capital goods			1,537			1,635			3.0		%
Energy [1]			1,463			1,547			2.8		%
Consumer cyclical			1,361			1,448			2.6		%
Transportation			685			753			1.4		%
Basic industry			691			740			1.4		%
Other			730			757			1.4		%
Total			$	18,749		$	20,235		36.9		%
Top Ten Exposures by Issuer [2]
New York City Transitional Finance Authority			$	214		$	220		0.4		%
IBM Corporation			191			217			0.4		%
Commonwealth of Massachusetts			194			208			0.4		%
Comcast Corporation			177			208			0.4		%
Apple Inc.			171			202			0.4		%
Bank of America Corporation			180			202			0.4		%
New York State Dormitory Authority			189			200			0.4		%
Morgan Stanley			165			186			0.3		%
Bristol-Myers Squibb Company			163			186			0.3		%
BP PLC			165			178			0.3		%
Total			$	1,809		$	2,007		3.7		%

[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.

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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, 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 ("Talcott Resolution"). Talcott Resolution is the holding company of the life and annuity business that we sold in May 2018. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold.

Certain operating and statistical measures for P&C standard 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, new business, premium retention, policy count retention and renewal earned and written price increases. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. Policy count retention represents the ratio of the number of policies renewed during the period divided by the number of policies from the previous policy term period. Renewal earned price increases represent the portions of the prior and current period renewal written price increases that have been earned based on the period of time the underlying renewal policies have been in effect. 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 and includes the combined effect of rate changes, amount of insurance and other changes in exposure. 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.

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 transaction costs associated with an acquired business.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 transaction costs associated with an acquired business) 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

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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 transaction costs in connection with an acquired business - As transaction costs are incurred upon acquisition of a business and integration costs are completed within a short period after an acquisition, they do not represent ongoing costs 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.

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BASIC EARNINGS PER SHARE

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Income available to common stockholders per share			$	1.26		$	1.29		$	0.75		$	1.51		$	1.45		$	1.03		1.74									$	3.30		$	4.21
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			(0.02)			(0.30)			0.65			(0.17)			(0.24)			(0.22)			(0.44)									0.33			(0.91)
Restructuring and other costs, before tax			0.24			—			—			—			—			—			—									0.24			—
Loss on extinguishment of debt, before tax			—			—			—			—			0.25			—			—									—			0.25
Loss on reinsurance transactions, before tax			—			—			—			—			—			0.25			—									—			0.25
Integration and transaction costs associated with an acquired business, before tax			0.04			0.04			0.04			0.06			0.08			0.09			0.03									0.11			0.19
Change in loss reserves upon acquisition of a business, before tax			—			—			—			—			—			0.27			—									—			0.27
Change in deferred gain on retroactive reinsurance, before tax			0.04			0.15			0.08			0.04			—			—			—									0.27			—
Income tax expense (benefit) on items excluded from core earnings			(0.09)			0.04			(0.17)			0.01			(0.02)			(0.08)			0.08									(0.20)			0.01
Core earnings per share			$	1.47		$	1.22		$	1.35		$	1.45		$	1.52		$	1.34		1.41									$	4.05		$	4.27

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																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net Income available to common stockholders per diluted share			$	1.26		$	1.29		$	0.74		$	1.49		$	1.43		$	1.02		1.71									$	3.29		$	4.17
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			(0.02)			(0.30)			0.64			(0.17)			(0.24)			(0.22)			(0.44)									0.33			(0.90)
Restructuring and other costs, before tax			0.24			—			—			—			—			—			—									0.24			—
Loss on extinguishment of debt, before tax			—			—			—			—			0.25			—			—									—			0.25
Loss on reinsurance transactions, before tax			—			—			—			—			—			0.25			—									—			0.25
Integration and transaction costs associated with an acquired business, before tax			0.04			0.04			0.04			0.06			0.08			0.08			0.03									0.11			0.19
Change in loss reserves upon acquisition of a business, before tax			—			—			—			—			—			0.27			—									—			0.27
Change in deferred gain on retroactive reinsurance, before tax			0.04			0.15			0.08			0.04			—			—			—									0.27			—
Income tax expense (benefit) on items excluded from core earnings			(0.10)			0.04			(0.16)			0.01			(0.02)			(0.07)			0.09									(0.22)			(0.01)
Core earnings per diluted share			$	1.46		$	1.22		$	1.34		$	1.43		$	1.50		$	1.33		1.39									$	4.02		$	4.22

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:

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			LAST TWELVE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019
Net income ROE			10.4		%	11.3		%	11.8		%	14.4		%	12.0		%	11.8		%	13.5		%
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized capital gains, excluded from core earnings, before tax			0.3		%	(0.2		%)	—		%	(2.7		%)	(1.1		%)	(0.7		%)	(0.5)		%
Restructuring and other costs, before tax			0.5		%	—		%	—		%	—		%	—		%	—		%	—		%
Loss on extinguishment of debt, before tax			—		%	0.6		%	0.6		%	0.6		%	0.6		%	—		%	—		%
Loss on reinsurance transaction, before tax			—		%	—		%	0.6		%	0.6		%	0.6		%	0.7		%	—		%
Integration and transaction costs associated with an acquired business, before tax			0.4		%	0.5		%	0.6		%	0.6		%	0.6		%	0.5		%	0.3		%
Changes in loss reserves upon acquisition of a business, before tax			—		%	—		%	0.7		%	0.7		%	0.7		%	0.7		%	—		%
Change in deferred gain on retroactive reinsurance, before tax			0.7		%	0.6		%	0.3		%	0.1		%	—		%	—		%	—		%
Income tax expense (benefit) on items not included in core earnings			(0.4		%)	(0.3		%)	(0.6		%)	—		%	(0.7		%)	(0.5		%)	(0.3)		%
Income from discontinued operations, net of tax			—		%	—		%	—		%	—		%	—		%	—		%	(1.1)		%
Impact of AOCI, excluded from denominator of core earnings ROE			0.4		%	0.2		%	(0.7		%)	(0.7		%)	(0.4		%)	(0.8		%)	(0.4)		%
Core earnings ROE			12.3		%	12.7		%	13.3		%	13.6		%	12.3		%	11.7		%	11.5		%

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.

PROPERTY & CASUALTY

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net income			$	404		$	310		$	224		$	377		$	448		$	264		$	482								$	938		$	1,194
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income			(371)			(242)			(334)			(363)			(358)			(348)			(323)									(947)			(1,029)
Net realized capital losses (gains)			21			(74)			173			(52)			(73)			(66)			(143)									120			(282)
Net servicing and other expense (income)			4			7			3			10			14			2			(2)									14			14
Loss on reinsurance transaction			—			—			—			—			—			91			—									—			91
Income tax expense			73			88			54			85			106			60			107									215			273
Underwriting gain			131			89			120			57			137			3			121									340			261
Current accident year catastrophes			229			248			74			115			106			138			104									551			348
Prior accident year development			(75)			(268)			23			(42)			(47)			35			(11)									(320)			(23)
Current accident year change in loss reserves upon acquisition of a business			—			—			—			—			—			29			—									—			29
Underlying underwriting gain			$	285		$	69		$	217		$	130		$	196		$	205		$	214								$	571		$	615

36

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COMMERCIAL LINES

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net income			$	323		$	(66)		$	121		$	302		$	336		$	191		$	363								$	378		$	890
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing loss (income)			(1)			—			(1)			1			(2)			(2)			1									(2)			(3)
Net investment income			(316)			(204)			(277)			(298)			(291)			(281)			(259)									(797)			(831)
Net realized capital losses (gains)			26			(64)			143			(42)			(60)			(54)			(115)									105			(229)
Other expense			8			11			6			11			20			6			1									25			27
Loss on reinsurance transaction			—			—			—			—			—			91			—									—			91
Income tax expense (benefit)			52			(9)			28			68			79			44			79									71			202
Underwriting gain (loss)			92			(332)			20			42			82			(5)			70									(220)			147
Current accident year catastrophes			107			193			55			89			74			90			70									355			234
Prior accident year development			(57)			77			41			(37)			(19)			22			(10)									61			(7)
Current accident year change in loss reserves upon acquisition of a business			—			—			—			—			—			29			—									—			29
Underlying underwriting gain (loss)			$	142		$	(62)		$	116		$	94		$	137		$	136		$	130								$	196		$	403

PERSONAL LINES

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net income (loss)			$	79		$	371		$	98		$	66		$	94		$	62		$	96								$	548		$	252
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income			(5)			(3)			(2)			(2)			(4)			(4)			(3)									(10)			(11)
Net investment income			(41)			(28)			(41)			(45)			(46)			(46)			(42)									(110)			(134)
Net realized capital losses (gains)			(3)			(8)			23			(7)			(9)			(8)			(19)									12			(36)
Other expense (income)			2			(1)			—			—			—			2			(1)									1			1
Income tax expense			20			97			25			16			23			14			23									142			60
Underwriting gain			52			428			103			28			58			20			54									583			132
Current accident year catastrophes			122			55			19			26			32			48			34									196			114
Prior accident year development			(29)			(349)			(18)			(17)			(28)			4			(1)									(396)			(25)
Underlying underwriting gain			$	145		$	134		$	104		$	37		$	62		$	72		$	87								$	383		$	221

37

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P&C OTHER OPERATIONS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019						Sept 30 2020			Sept 30 2019
Net income			$	2		$	5		$	5		$	9		$	18		$	11		$	23					$	12		$	52
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income			(14)			(10)			(16)			(20)			(21)			(21)			(22)						(40)			(64)
Net realized capital losses (gains)			(2)			(2)			7			(3)			(4)			(4)			(9)						3			(17)
Income tax expense			1			—			1			1			4			2			5						2			11
Underwriting loss			(13)			(7)			(3)			(13)			(3)			(12)			(3)						(23)			(18)
Prior accident year development			11			4			—			12			—			9			—						15			9
Underlying underwriting loss			$	(2)		$	(3)		$	(3)		$	(1)		$	(3)		$	(3)		$	(3)					$	(8)		$	(9)

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.

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																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Net income margin			8.0		%	6.7		%	6.9		%	10.5		%	9.6		%	7.3		%	7.7		%							7.2		%	8.2		%
Adjustments to reconcile net income margin to core earnings margin:
Net realized capital losses (gains) excluded from core earnings, before tax			(0.6)		%	(0.1)		%	0.6		%	(0.5)		%	(0.9)		%	(0.4)		%	(0.3)		%							(0.1)		%	(0.5)		%
Integration and transaction costs associated with acquired business, before tax			0.3		%	0.3		%	0.3		%	0.5		%	0.6		%	0.7		%	0.6		%							0.3		%	0.6		%
Income tax expense (benefit)			0.2		%	(0.1)		%	(0.1)		%	0.1		%	0.1		%	(0.1)		%	—		%							—		%	—		%
Impact of excluding buyouts from denominator of core earnings margin			—		%	0.1		%	0.1		%	—		%	—		%	—		%	—		%							0.1		%	—		%
Core earnings margin			7.9		%	6.9		%	7.8		%	10.6		%	9.4		%	7.5		%	8.0		%							7.5		%	8.3		%

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.

38

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			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Return on Assets ("ROA")			14.4			14.1			12.0			13.0			13.3			12.9			10.9									13.5			12.4
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized capital losses (gains), excluded from core earnings, before tax			(1.6)			(2.9)			3.7			(0.3)			(0.4)			—			(0.6)									(0.2)			(0.3)
Effect of income tax expense			0.3			0.7			(1.0)			—			—			—			—									—			—
Return on Assets ("ROA"), core earnings			13.1			11.9			14.7			12.7			12.9			12.9			10.3									13.3			12.1

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																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Total net investment income			$	492		$	339		$	459		$	503		$	490		$	488		$	470								$	1,290		$	1,448
Adjustment for loss (gain) from limited partnerships and other alternative investments			(83)			71			(58)			(51)			(65)			(60)			(56)									(70)			(181)
Net investment income excluding limited partnerships and other alternative investments			$	409		$	410		$	401		$	452		$	425		$	428		$	414								$	1,220		$	1,267

PROPERTY & CASUALTY

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Total net investment income			$	371		$	242		$	334		$	363		$	358		$	348		$	323								$	947		$	1,029
Adjustment for loss (gain) from limited partnerships and other alternative investments			(72)			62			(48)			(38)			(52)			(50)			(46)									(58)			(148)
Net investment income excluding limited partnerships and other alternative investments			$	299		$	304		$	286		$	325		$	306		$	298		$	277								$	889		$	881

GROUP BENEFITS

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Total net investment income			$	117		$	92		$	115		$	123		$	121		$	121		$	121								$	324		$	363
Adjustment for loss (gain) from limited partnerships and other alternative investments			(11)			9			(10)			(13)			(13)			(10)			(10)									(12)			(33)
Net investment income excluding limited partnerships and other alternative investments			$	106		$	101		$	105		$	110		$	108		$	111		$	111								$	312		$	330

39

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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																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Annualized investment yield			3.8		%	2.7		%	3.7		%	4.0		%	4.0		%	4.2		%	4.1		%							3.4		%	4.1		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(0.5)		%	0.7		%	(0.4)		%	(0.2)		%	(0.4)		%	(0.4)		%	(0.4)		%							(0.1)		%	(0.4)		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.3		%	3.4		%	3.3		%	3.8		%	3.6		%	3.8		%	3.7		%							3.3		%	3.7		%

PROPERTY & CASUALTY

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Annualized investment yield			3.9		%	2.6		%	3.6		%	4.0		%	4.0		%	4.2		%	4.2		%							3.4		%	4.2		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(0.6)		%	0.9		%	(0.4)		%	(0.3)		%	(0.4)		%	(0.4)		%	(0.4)		%							(0.1)		%	(0.5)		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.3		%	3.5		%	3.2		%	3.7		%	3.6		%	3.8		%	3.8		%							3.3		%	3.7		%

GROUP BENEFITS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2020			Jun 30 2020			Mar 31 2020			Dec 31 2019			Sept 30 2019			Jun 30 2019			Mar 31 2019									Sept 30 2020			Sept 30 2019
Annualized investment yield			4.1		%	3.2		%	4.0		%	4.3		%	4.2		%	4.2		%	4.2		%							3.7		%	4.2		%
Adjustment for loss (gain) from limited partnerships and other alternative investments			(0.3)		%	0.4		%	(0.3)		%	(0.4)		%	(0.4)		%	(0.3)		%	(0.3)		%							—		%	(0.3)		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.8		%	3.6		%	3.7		%	3.9		%	3.8		%	3.9		%	3.9		%							3.7		%	3.9		%

40