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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 28, 2021

 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)

 

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

The Hartford Financial Services Group, Inc.

One Hartford Plaza, Hartford, Connecticut 06155

(Address of Principal Executive Offices) (Zip Code)

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

 

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

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

Item 9.01			Financial Statements and Exhibits

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

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

    

NEWS RELEASE

The Hartford Announces Third Quarter 2021 Financial Results and Capital Management Actions

•Third quarter 2021 net income available to common stockholders of $476 million ($1.36 per diluted share) increased 5% from third quarter 2020, and core earnings* of $442 million (core earnings per diluted share* of $1.26) were down 16% from third quarter 2020

•Net income ROE for the trailing 12-month period ended Sept. 30, 2021 was 12.3% and core earnings ROE* for the same period was 12.5%

•The Commercial Lines combined ratio was 101.2 in third quarter 2021 with an underlying combined ratio* of 87.2, a 6.5 point improvement from 93.7 in third quarter 2020. Commercial Lines written premiums of $2.5 billion were 15% higher than third quarter 2020 with increases in all three businesses. Standard Commercial new business premiums increased 17%

•Group Benefits net income margin was 1.8% while the core earnings margin* was 1.2%. Both the net income margin and core earnings margin included $228 million, before tax, or approximately 11.4 points, of excess mortality and COVID-19 related short-term-disability impacts

•During the quarter, The Hartford returned $634 million to shareholders, including $511 million of shares repurchased and $123 million in common dividends paid. The share repurchase authorization increased from $2.5 billion to $3 billion through year-end 2022 and the quarterly common dividend increased 10%, to $0.385, payable Jan. 4, 2022 to shareholders of record at the close of business on Dec. 1, 2021

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

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

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HARTFORD, Conn., Oct. 28, 2021 – The Hartford (NYSE: HIG) today announced financial results for the third quarter ended Sept. 30, 2021. In the quarter, The Hartford earned $476 million in net income available to common stockholders, or $1.36 per diluted share, and core earnings* of $442 million, or $1.26 per diluted share. Reported results included catastrophe (CAT) losses of $300 million, before tax, Property & Casualty (P&C) unfavorable prior accident year reserve development (PYD) of $90 million, before tax, and excess mortality losses in Group Benefits of $212 million, before tax.

Improving operating efficiencies and a lower expense ratio from Hartford Next, the company’s operational transformation and cost reduction program, have benefited results. The program delivered $306 million in pre-tax expense savings in the nine months ended Sept. 30, 2021, compared with the corresponding period in 2019. We continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.

“Our outstanding underwriting capabilities and ability to consistently execute on our strategic initiatives become increasingly evident with each quarterly earnings report. Strong underlying results and excellent investment returns offset the impact of higher catastrophe losses and an increase in pandemic related excess mortality, resulting in a trailing 12-month core earnings ROE of 12.5%,” said Chairman and CEO Christopher Swift.

President, Doug Elliot said, “Our P&C underlying results were excellent, driven by strong earned pricing and underwriting execution. Commercial Lines delivered a second consecutive quarter of double-digit top line growth led by strong new business and retention. Commercial Lines renewal written pricing, excluding workers’ compensation, was 8.1%. In Personal Lines, we continued the rollout of our new auto and home product, now available in seven states."

Swift said, “Our focus remains on optimizing returns. In the first nine months of the year we returned $1.6 billion of capital to shareholders and are pleased to announce a 10% increase in our common dividend and an increase in the share repurchase authorization to $3.0 billion through 2022. With high recurring cash flow and active capital management we are on the path to generate sustainable industry leading returns, deliver on our financial objectives and maximize value creation for all stakeholders.”

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CONSOLIDATED RESULTS:

			Three Months Ended
($ in millions except per share data)			Sep 30 2021			Sep 30 2020			Change
Net income available to common stockholders			$476			$453			5%
Net income available to common stockholders per diluted share1			$1.36			$1.26			8%
Core earnings2			$442			$527			(16)%
Core earnings per diluted share2			$1.26			$1.46			(14)%
Book value per diluted share			$50.53			$48.47			4%
Book value per diluted share (ex. AOCI)2			$49.64			$46.09			8%
Net income available to common stockholders' return on equity (ROE)3, last 12-months			12.3%			10.4%			1.9
Core earnings ROE2,3, last 12-months			12.5%			12.3%			0.2

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

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

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

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

Third quarter 2021 net income available to common stockholders was $476 million, or $1.36 per diluted share, up $23 million, or 5% from third quarter 2020, primarily due to a $158 million, before tax, increase in net investment income, a $99 million, before tax, decrease in restructuring and other costs, a $64 million, before tax, increase in net realized gains and higher earnings from Hartford Funds partially offset by a $148 million, before tax, decrease in P&C underwriting gain*, and a $170 million, before tax, increase in excess mortality losses.

Third quarter 2021 core earnings were $442 million, or $1.26 per diluted share, decreasing 16% from third quarter 2020.The decrease was primarily due to:

•Excess mortality of $212 million, before tax, in group life in third quarter 2021, primarily caused by direct and indirect impacts of the COVID-19 pandemic, compared with $42 million, before tax, in third quarter 2020

•Unfavorable P&C PYD within core earnings of $62 million, before tax, in third quarter 2021, compared with $89 million of net favorable PYD within core earnings in third quarter 2020

•P&C CAY CAT losses of $300 million, before tax, in third quarter 2021, compared with $229 million of CAY CAT losses in third quarter 2020

•Underlying Personal Lines loss ratio* of 64.4% in third quarter 2021, up 8.4 points from 56.0% in third quarter 2020 as the prior year benefited from lower auto claim frequency due to the pandemic

•An increase in insurance operating costs and other expenses in P&C and Group Benefits, primarily driven by higher incentive compensation, technology costs, P&C commissions and claim costs in Group Benefits to handle elevated claim levels resulting from the pandemic, partially offset by lower staffing and other costs due to the Hartford Next program

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•An increase in short-term-disability losses as the prior year period benefited from fewer elective procedures during the early stages of the pandemic

Partially offset by:

•An increase in net investment income to $650 million, before tax, from $492 million in third quarter 2020, primarily driven by higher income from limited partnerships and alternative investments (LPs), which were $83 million, before tax, in third quarter 2020 compared with $259 million, before tax, in third quarter 2021, with LP income in third quarter 2021 driven by higher valuations and cash distributions within private equity funds and sales of underlying investments in real estate

•Underlying ex-COVID-19 Commercial Lines loss ratio* of 55.1% in third quarter 2021, down 4.0 points from 59.1% in third quarter 2020 driven by improvement in all three businesses

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

•A $34 million, before tax, decrease in COVID-19 incurred losses with $3 million of COVID-19 losses in third quarter 2021 compared with $37 million in third quarter 2020

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

•A loss in core earnings from the previously owned equity interest in Talcott Resolution of $21 million, before tax, in third quarter 2020

Sept. 30, 2021 book value per diluted share of $50.53 was mostly flat compared with $50.39 at Dec. 31, 2020, as the effect of share repurchases on diluted shares outstanding was largely offset by a decrease in total stockholders' equity driven by a decline in AOCI.

Book value per diluted share (excluding AOCI) of $49.64 as of Sept. 30, 2021 increased from $47.16 at Dec. 31, 2020, due to net income in excess of share repurchases and common stockholder dividends during the nine months ended September 30, 2021.

Through Sept. 30, 2021, The Hartford returned approximately $1.6 billion to shareholders, consisting of $1.2 billion of share repurchases and $365 million in common stockholder dividends paid.

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

Core earnings ROE at Sept. 30, 2021 was 12.5%, an increase of 0.2 points from 12.3% in third quarter 2020 due to higher trailing 12-month core earnings partially offset by higher average common stockholders' equity.

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BUSINESS RESULTS:

Commercial Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net income			$357			$323			11%
Core earnings			$344			$349			(1%)
Written premiums			$2,532			$2,199			15%
Underwriting gain (loss)1			$(30)			$92			NM
Underlying underwriting gain1			$314			$142			121%
Losses and loss adjustment expense ratio
Current accident year before catastrophes			55.2			60.7			(5.5)
Current accident year catastrophes			9.1			4.8			4.3
Prior accident year development (PYD)			5.0			(2.5)			7.5
Expenses			31.8			32.7			(0.9)
Policyholder dividends			0.2			0.4			(0.2)
Combined ratio			101.2			95.9			5.3
Impact of catastrophes and PYD on combined ratio			(14.1)			(2.3)			(11.8)
Underlying combined ratio1			87.2			93.7			(6.5)

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

Third quarter 2021 net income of $357 million increased from net income of $323 million in third quarter 2020, principally due to higher net investment income and a change from net realized losses to net realized gains, partially offset by a change from an underwriting gain of $92 million in third quarter 2020 to an underwriting loss of $30 million in third quarter 2021.

Commercial Lines core earnings of $344 million in third quarter 2021 decreased by $5 million from third quarter 2020, primarily resulting from:

•Unfavorable PYD within core earnings of $94 million, before tax, in third quarter 2021, compared with $71 million of favorable PYD within core earnings in third quarter 2020. The $94 million of net unfavorable development in third quarter 2021 primarily included $144 million, before tax, of reserve increases for general liability driven by the settlement agreement with BSA announced in September, partially offset by reserve reductions in workers' compensation, package business and bond

•CAY CAT losses of $222 million, before tax, in third quarter 2021, including $164 million from Hurricane Ida, compared with $107 million in third quarter 2020

Partially offset by:

•Improved underlying underwriting gain before COVID-19 losses of $138 million, before tax, or 5.0 points, including a lower CAY ex-COVID-19 loss ratio before CATs of 4.0 points and a lower expense ratio of 0.9 points

•Net investment income of $421 million, before tax, compared with $316 million in third quarter 2020, including higher returns on LP investments

•Higher earned premium, including higher audit and endorsement premiums

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•A $34 million, before tax, decrease in COVID-19 incurred losses with $3 million of COVID-19 losses in third quarter 2021 compared with $37 million in third quarter 2020

Combined ratio was 101.2 in third quarter 2021, 5.3 points higher than 95.9 in third quarter 2020, primarily due to a 7.5 point change from favorable to unfavorable PYD and a 4.3 point increase in CAY CAT losses, partially offset by a 6.5 improvement in the underlying combined ratio. The combined ratio included 1.1 points, or $28 million, before tax, of adverse development for Navigators related to 2018 and prior accident years that has been economically ceded to NICO but recorded as a deferred gain, compared with 0.6 points, or $14 million, before tax, of Navigators adverse development recognized in third quarter 2020.

Underlying combined ratio was 87.2, improving 6.5 points from third quarter 2020 with 1.5 points of the improvement driven by lower COVID-19 incurred losses.

Before COVID-19 losses, the underlying combined ratio improved 5.0 points, including:

•A 4.0 point decrease in the underlying loss and loss adjustment expense ratio primarily due to lower loss ratios in Global Specialty, workers' compensation, general liability, and non-catastrophe property

•A 0.9 point decrease in the expense ratio, driven by the effect of earned premium growth, a lower provision for doubtful accounts, and savings from the Hartford Next program, partially offset by higher commissions, incentive compensation and technology costs

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

•Small Commercial underlying combined ratio of 83.9 improved by 3.8 points from third quarter 2020 driven primarily by a lower CAY loss ratio before CATs and COVID losses in workers’ compensation, lower non-CAT property losses, and, to a lesser extent, a 0.5 point decrease in COVID losses and a 0.5 point decrease in the expense ratio

•Middle & Large Commercial underlying combined ratio of 91.4 improved by 6.3 points from third quarter 2020 primarily due to a lower CAY loss ratio before CATs and COVID losses in workers’ compensation and general liability, a 1.6 point decrease in COVID losses and, to a lesser extent, a 0.3 point decrease in the expense ratio

•Global Specialty underlying combined ratio of 86.9 improved by 11.3 points from third quarter 2020 due to a lower CAY loss ratio before CATs and COVID losses in several lines, including international, Global Re, U.S. wholesale and U.S. financial lines, a 3.3 point decrease in COVID losses and a 2.0 point decrease in the expense ratio

Third quarter 2021 written premiums of $2.5 billion were up 15% from third quarter 2020, reflecting higher audit and endorsement premiums, an increase in new business across Small Commercial, Middle Market, and Global Specialty, higher policy retention in Middle Market and continued strong renewal written price increases in Middle Market and Global Specialty.

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Personal Lines

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net income			$51			$79			(35%)
Core earnings			$48			$77			(38%)
Written premiums			$765			$781			(2)%
Underwriting gain			$10			$52			(81%)
Underlying underwriting gain			$61			$145			(58%)
Losses and loss adjustment expense ratio
Current accident year before catastrophes			64.4			56.0			8.4
Current accident year catastrophes			10.5			15.7			(5.2)
Prior accident year development (PYD)			(3.6)			(3.7)			0.1
Expenses			27.4			25.4			2.0
Combined ratio			98.7			93.3			5.4
Impact of catastrophes and PYD on combined ratio			(6.9)			(12.0)			5.1
Underlying combined ratio			91.8			81.4			10.4

Net income of $51 million in third quarter 2021 was down $28 million from third quarter 2020 largely driven by a decrease in underwriting gain, partially offset by an increase in net investment income.

Personal Lines core earnings of $48 million declined by $29 million primarily due to a decrease in underlying underwriting gain, partially offset by a $44 million, before tax, decrease in CAY CAT losses. An underlying underwriting gain of $61 million, before tax, in third quarter 2021 compared with a gain of $145 million in third quarter 2020, largely due to a higher CAY loss ratio before CATs in auto and, to a lesser extent, an increase in underwriting expenses and lower earned premiums.

Combined ratio of 98.7 in third quarter 2021 was 5.4 points higher than third quarter 2020, primarily due to higher CAY losses before CATs and an increase in the expense ratio, partially offset by a lower CAY CAT ratio.

Underlying combined ratio of 91.8 was 10.4 points higher than third quarter 2020, primarily due to an increase in CAY losses before CATs in auto and a 2.0 point increase in the expense ratio.

•The auto underlying combined ratio of 99.7 increased 14.8 points from 84.9 in third quarter 2020, primarily due to an increase in auto frequency as a result of increased miles driven and an increase in claim severity as well as a higher expense ratio

•The homeowners underlying combined ratio of 74.6 increased 0.6 points from 74.0 in third quarter 2020, primarily due to a higher expense ratio. The CAY loss ratio before CATs was flat year over year as the effect of earned pricing increases was offset by an increase in both weather and non-weather non-catastrophe losses with an increase in severity partially offset by lower claim frequency. Contributing to the increase in homeowners severity was the effect of higher rebuilding costs and a greater number of large losses

The increase in the expense ratio was driven by higher incentive compensation, technology and direct marketing costs, as well as the effect of a decline in earned premium, partially offset by savings from the Hartford Next program.

Written premiums in third quarter 2021 were $765 million compared with $781 million in third quarter 2020 with the decrease due to:

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

•A reduction in homeowners as non-renewed premium exceeded new business, partially offset by renewal written price increases in homeowners of 8.1% in third quarter 2021

Group Benefits

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net income			$28			$119			(76)%
Core earnings			$19			$116			(84%)
Fully insured ongoing premiums (ex. buyout premiums)			$1,372			$1,316			4%
Loss ratio			84.7%			73.8%			10.9
Expense ratio			25.2%			24.3%			0.9
Net income margin			1.8%			8.0%			(6.2)
Core earnings margin			1.2%			7.9%			(6.7)

Net income and core earnings were $28 million and $19 million, respectively, decreasing from $119 million and $116 million, respectively, in third quarter 2020, largely driven by an increase in excess mortality losses in group life, partially offset by an increase in net investment income.

Fully insured ongoing premiums were up 4%, compared with third quarter 2020, driven by an increase in exposure on existing accounts as our customers emerge from the pandemic as well as strong persistency and sales. Fully insured ongoing sales were $82 million in third quarter 2021, down 39%, as the prior year period had two large account sales.

Loss ratio of 84.7% deteriorated 10.9 points compared with 73.8% in third quarter 2020 driven by an increase in group life and, to a lesser extent, an increase in group disability:

•Total group life loss ratio of 110.9% increased 23.4 points, primarily due to a 28.8 point increase in excess mortality losses. Excess mortality losses were $212 million, before tax, or 35.9 points, in third quarter 2021 compared with $42 million, before tax, or 7.1 points, in third quarter 2020. The $212 million in third quarter 2021 included $233 million related to claims with dates of death in the third quarter, partially offset by a $21 million decrease related to prior quarters, the majority of which related to second quarter 2021

•Total disability loss ratio of 68.4% increased 3.1 points compared with third quarter 2020, due to an increase in short-term disability claim incidence as the prior year benefited from fewer elective procedures during the early stages of the pandemic

Expense ratio of 25.2% increased 0.9 points from third quarter 2020 due to an increase in incentive compensation, technology costs and claim costs to handle elevated claim levels resulting from the pandemic as well as a lower decrease in the allowance for credit losses on premiums receivables, partially offset by lower staffing and other costs as a result of the Hartford Next program and higher earned premiums.

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Hartford Funds

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net income			$56			$44			27%
Core earnings			$58			$40			45%
Daily average Hartford Funds AUM			$155,041			$122,528			27%
Mutual Funds and exchange-traded products (ETP) net flows			$295			$(1,266)			123%
Total Hartford Funds assets under management (AUM)			$152,086			$123,710			23%

Net income and core earnings were $56 million and $58 million, respectively, increasing from $44 million and $40 million in third quarter 2020, largely driven by higher daily average Hartford Funds AUM. Daily average AUM of $155 billion rose 27% from third quarter 2020 due to increases in market values and strong net inflows over the previous 12 months. Fee income and variable expenses rose with the increase in AUM.

Mutual fund and ETP net inflows totaled $0.3 billion in third quarter 2021, compared with net outflows of $1.3 billion in third quarter 2020.

Corporate

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net loss			$(32)			$(108)			70%
Net loss available to common stockholders			$(38)			$(114)			67%
Core loss			$(47)			$(57)			18%
Other revenue (loss)			$0			$(21)			NM
Net investment income, before tax			$2			$3			(33)%
Interest expense and preferred dividends, before tax			$64			$64			—%

Net loss available to common stockholders of $38 million in third quarter 2021 decreased $76 million compared with third quarter 2020, driven by a decrease in restructuring and other costs and the effect of a loss from the company’s previously owned 9.7% equity interest in Talcott Resolution in the 2020 period, partially offset by a decrease in net realized gains.

Third quarter 2021 core loss of $47 million decreased $10 million compared with third quarter 2020 core loss of $57 million primarily due to a $21 million, before tax, loss in third quarter 2020 from the company's previously owned 9.7% equity interest in Talcott Resolution, partially offset by an increase in expenses.

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INVESTMENT INCOME AND PORTFOLIO DATA:

			Three Months Ended
($ in millions, unless otherwise noted)			Sep 30 2021			Sep 30 2020			Change
Net investment income, before tax			$650			$492			32%
Annualized investment yield, before tax			4.8%			3.8%			1.0
Annualized investment yield, before tax, excluding LPs*			3.0%			3.3%			(0.3)
Annualized LP yield, before tax			39.6%			18.3%			21.3
Annualized investment yield, after tax			3.9%			3.2%			0.7

Third quarter 2021 consolidated net investment income of $650 million increased $158 million from $492 million in third quarter 2020 largely driven by higher income from LPs, a higher level of invested assets and higher income from equity investments, partially offset by a lower yield on fixed maturities resulting from reinvesting at lower rates.

Income from LPs was $259 million, before tax, in third quarter 2021, increasing from $83 million, before tax, in third quarter 2020, mostly driven by higher valuations and cash distributions within private equity funds and sales of underlying investments within real estate. Income from LPs, including from private equity and other funds, is generally reported on a three-month lag.

Total invested assets of $57.6 billion increased 2% from Dec. 31, 2020, primarily due to increases in LPs and mortgage loans, partially offset by a decrease in fixed maturities. Valuations of fixed maturities decreased driven by higher interest rates, partially offset by tighter credit spreads.

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CONFERENCE CALL

The Hartford will discuss its third quarter 2021 financial results on a webcast at 9:00 a.m. EDT on Friday, Oct. 29, 2021. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

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

About The Hartford

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

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

HIG-F

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

Media Contacts:    Investor Contact:

Michelle Loxton     Susan Spivak Bernstein

860-547-7413     860-547-6233

[email protected]     [email protected]

Matthew Sturdevant

860-547-8664

[email protected]

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended September 30, 2021
($ in millions)
			Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Hartford Funds			Corporate						Consolidated
Earned premiums			$	2,449		$	744		$	—		$	1,372		$	—		$	—					$	4,565
Fee income			8			8			—			43			306			12						377
Net investment income			421			44			22			159			2			2						650
Other revenue			2			22			—			—			—			—						24
Net realized gains (losses)			51			4			2			13			(3)			3						70
Total revenues			2,931			822			24			1,587			305			17						5,686
Benefits, losses, and loss adjustment expenses			1,695			530			(5)			1,199			—			1						3,420
Amortization of DAC			348			57			—			11			3			—						419
Insurance operating costs and other expenses			442			171			2			336			232			17						1,200
Restructuring and other costs			—			—			—			—						(12)						(12)
Loss on extinguishment of debt			—			—			—			—			—			—						—
Interest expense			—			—			—			—			—			58						58
Amortization of other intangible assets			7			1			—			10			—			—						18
Total benefits, losses and expenses			2,492			759			(3)			1,556			235			64						5,103
Income (loss) before income taxes			439			63			27			31			70			(47)						583
Income tax expense (benefit)			82			12			5			3			14			(15)						101
Net income (loss)			357			51			22			28			56			(32)						482
Preferred stock dividends			—			—			—			—			—			6						6
Net income (loss) available to common stockholders			357			51			22			28			56			(38)						476
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized gains (losses), excluded from core earnings, before tax			(50)			(4)			(2)			(13)			3			(2)						(68)
Restructuring and other costs, before tax																		(12)						(12)
Integration and other non-recurring M&A costs, before tax			5			—			—			1			—			2						8
Change in deferred gain on retroactive reinsurance, before tax			28			—			—			—			—			—						28
Income tax expense (benefit)			4			1			—			3			(1)			3						10
Core earnings (losses)			$	344		$	48		$	20		19			58			(47)						$	442

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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 revenue (loss)			1			23			—			—						—			(21)						3
Net realized 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 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 other non-recurring M&A costs, 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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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 2021, which is available on The Hartford's website, https://ir.thehartford.com.

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

			Three Months Ended
			Sept 30 2021			Sept 30 2020			Sept 30 2021			Sept 30 2020			Sept 30 2021			Sept 30 2020
			Consolidated						P&C						Group Benefits
Annualized investment yield, before tax			4.8		%	3.8		%	4.8		%	3.9		%	5.4		%	4.1		%
Impact on annualized investment yield of limited partnerships and other alternative investments, before tax			(1.8)		%	(0.5)		%	(1.8)		%	(0.6)		%	(1.9)		%	(0.3)		%
Annualized investment yield excluding limited partnerships and other alternative investments, before tax			3.0		%	3.3		%	3.0		%	3.3		%	3.5		%	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 2021			Dec 31 2020			Change
Book value per diluted share			$50.53			$50.39			—%
Per diluted share impact of AOCI			$(0.89)			$(3.23)			72%
Book value per diluted share (excluding AOCI)			$49.64			$47.16			5%

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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 gains and losses - Some realized 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 gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

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

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

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

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

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

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

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

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

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

Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as

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

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

			Three Months Ended
Margin			Sept 30 2021			Sept 30 2020			Change
Net income margin			1.8%			8.0%			(6.2)
Adjustments to reconcile net income margin to core earnings margin
Net realized losses (gains) excluded from core earnings, before tax			(0.9)%			(0.6)%			(0.3)
Integration and other non-recurring M&A costs, before tax			0.1%			0.3%			(0.2)
Income tax expense			0.2%			0.2%			—
Core earnings margin			1.2%			7.9%			(6.7)

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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, 2021 and 2020 is provided in the table below.

			Three Months Ended
			Sept 30 2021			Sept 30 2020			Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common stockholders per share1			$1.36			$1.26			8%
Adjustment made to reconcile net income available to common stockholders per share to core earnings per share
Net realized losses (gains), excluded from core earnings, before tax			(0.19)			(0.02)			NM
Restructuring and other costs, before tax			(0.03)			0.24			NM
Integration and other non-recurring M&A costs, before tax			0.02			0.04			(50)%
Change in deferred gain on retroactive reinsurance, before tax			0.08			0.04			100%
Income tax expense (benefit) on items excluded from core earnings			0.02			(0.10)			NM
Core earnings per diluted share			$1.26			$1.46			(14)%

[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 2021			Sept 30 2020
Net income (loss) available to common stockholders ROE			12.3%			10.4%
Adjustments to reconcile net income (loss) available to common stockholders ROE to core earnings ROE
Net realized losses (gains) excluded from core earnings, before tax			(2.3)			0.3
Restructuring and other costs, before tax			0.1			0.5
Loss on extinguishment of debt, before tax			—			—
Integration and other non-recurring M&A costs, before tax			0.4			0.4
Changes in loss reserves upon acquisition of a business, before tax			—			—
Change in deferred gain on retroactive reinsurance, before tax			1.6			0.7
Income tax expense (benefit) on items not included in core earnings			(0.1)			(0.4)
Impact of AOCI, excluded from core earnings ROE			0.5			0.4
Core earnings ROE			12.5%			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 2021			Sept 30 2020			Sept 30 2021			Sept 30 2020			Sept 30 2021			Sept 30 2020
			Consolidated						P&C						Group Benefits
Total net investment income			$650			$492			$487			$371			$159			$117
Loss (income) from limited partnerships and other alternative assets			(259)			(83)			(198)			(72)			(61)			(11)
Net investment income excluding limited partnerships and other alternative investments			$391			$409			$289			$299			$98			$106

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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, 2021 and 2020, is set forth below.

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

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COMMERCIAL LINES

			Three Months Ended
			Sept 30 2021			Sept 30 2020
Net income			$	357		$	323
Adjustments to reconcile net income to underwriting gain
Net servicing income			(2)			(1)
Net investment income			(421)			(316)
Net realized gains (losses)			(51)			26
Other expense			5			8
Income tax expense			82			52
Underwriting gain (loss)			(30)			92
Adjustments to reconcile underwriting gain (loss) to underlying underwriting gain
Current accident year catastrophes			222			107
Prior accident year development			122			(57)
Underlying underwriting gain			$	314		$	142

PERSONAL LINES

			Three Months Ended
			Sept 30 2021			Sept 30 2020
Net income			$	51		$	79
Adjustments to reconcile net income to underwriting gain
Net servicing income			(6)			(5)
Net investment income			(44)			(41)
Net realized gains			(4)			(3)
Other expense			1			2
Income tax expense			12			20
Underwriting gain			10			52
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			78			122
Prior accident year development			(27)			(29)
Underlying underwriting gain			$	61		$	145

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PROPERTY & CASUALTY

			Three Months Ended
			Sept 30 2021			Sept 30 2020
Net income			$	430		$	404
Adjustments to reconcile net income to underwriting gain (loss)
Net investment income			(487)			(371)
Net realized gains (losses)			(57)			21
Net servicing and other expense			(2)			4
Income tax expense			99			73
Underwriting gain (loss)			(17)			131
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes			300			229
Prior accident year development			90			(75)
Underlying underwriting gain			$	373		$	285

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

Commercial Lines

						Three Months Ended
						Sept 30 2021						Sept 30 2020			Change
Combined Ratio
Combined Ratio						101.2						95.9			5.3
Current accident year catastrophes						(9.1)						(4.8)			(4.3)
Prior accident year development						(5.0)						2.5			(7.5)
Underlying Combined Ratio						87.2						93.7			(6.5)
COVID-19 losses						(0.1)						(1.6)			1.5
Underlying combined ratio before COVID-19 losses						87.1						92.1			(5.0)

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

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

Commercial Lines

						Three Months Ended
						Sept 30 2021						Sept 30 2020			Change
Loss and loss adjustment expense ratio
Total losses and loss adjustment expenses						69.2						62.9			6.3
Current accident year catastrophes						(9.1)						(4.8)			(4.3)
Prior accident year development						(5.0)						2.5			(7.5)
Underlying loss and loss adjustment expenses						55.2						60.7			(5.5)
COVID-19 losses						(0.1)						(1.6)			1.5
Underlying loss and loss adjustment expenses before COVID-19 losses						55.1						59.1			(4.0)

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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 statement, the Risk Factors of The Hartford's 2020 Form 10-K Annual Report, and our other filings with the Securities and Exchange Commission.

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

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

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

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of determining premiums, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing, the Company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues;

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

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

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

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

26

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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.

27

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2021

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

As of October 27, 2021

Address:

One Hartford Plaza

A.M. Best

Standard & Poor’s

Moody’s

Hartford, CT 06155

Insurance Financial Strength Ratings:

Hartford Fire Insurance Company

A+

A+

A1

Hartford Life and Accident Insurance Company

A+

A+

A1

Navigators Insurance Company

A+

A

NR

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

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

Internet address:

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

http://www.thehartford.com

NR- Not Rated

Other Ratings:

Contact:

Senior debt

a-

BBB+

Baa1

Susan Spivak Bernstein

Junior subordinated debentures

bbb

BBB-

Baa2

Senior Vice President

Preferred stock

bbb

BBB-

Baa3

Investor Relations

Phone (860) 547-6233

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

TRANSFER AGENT

Stockholder correspondence should be mailed to:

Overnight correspondence should be mailed to:

Computershare

Computershare

P.O. Box 505000

462 South 4th Street, Suite 1600

Louisville, KY 40233

Louisville, KY 40202

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

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

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

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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 Income Before Tax - Consolidated						26
			Investment Income Before Tax - Property & Casualty						27
			Investment Income Before Tax - Group Benefits						28
			Net Investment Income						29
			Components of Net Realized 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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
HIGHLIGHTS
Net income			$	482		$	905		$	249		$	537		$	459		$	468		$	273								$	1,636		$	1,200
Net income available to common stockholders [1]			$	476		$	900		$	244		$	532		$	453		$	463		$	268								$	1,620		$	1,184
Core earnings*			$	442		$	836		$	203		$	636		$	527		$	438		$	485								$	1,481		$	1,450
Total revenues			$	5,686		$	5,589		$	5,299		$	5,328		$	5,171		$	5,068		$	4,956								$	16,574		$	15,195
Total assets			$	76,290		$	74,732		$	74,201		$	74,111		$	72,319		$	70,990		$	68,724
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders			$	1.38		$	2.54		$	0.68		$	1.48		$	1.26		$	1.29		$	0.75								$	4.60		$	3.30
Core earnings*			$	1.28		$	2.36		$	0.57		$	1.77		$	1.47		$	1.22		$	1.35								$	4.20		$	4.05
Diluted earnings per common share
Net income available to common stockholders			$	1.36		$	2.51		$	0.67		$	1.47		$	1.26		$	1.29		$	0.74								$	4.54		$	3.29
Core earnings*			$	1.26		$	2.33		$	0.56		$	1.76		$	1.46		$	1.22		$	1.34								$	4.15		$	4.02
Weighted average common shares outstanding (basic)			345.6			353.7			358.2			358.4			358.3			358.1			358.5									352.5			358.3
Dilutive effect of stock compensation			5.1			4.8			4.0			3.1			2.2			1.2			2.6									4.7			2.0
Weighted average common shares outstanding and dilutive potential common shares (diluted)			350.7			358.5			362.2			361.5			360.5			359.3			361.1									357.2			360.3
Common shares outstanding			341.8			349.0			357.5			358.5			358.2			358.1			357.9
Book value per common share			$	51.28		$	51.32		$	48.58		$	50.83		$	48.77		$	46.74		$	41.72
Per common share impact of accumulated other comprehensive income [2]			(0.90)			(1.64)			(0.74)			(3.27)			(2.39)			(1.34)			2.68
Book value per common share (excluding AOCI)*			$	50.38		$	49.68		$	47.84		$	47.56		$	46.38		$	45.40		$	44.40
Book value per diluted share			$	50.53		$	50.62		$	48.04		$	50.39		$	48.47		$	46.59		$	41.42
Per diluted share impact of AOCI			(0.89)			(1.61)			(0.73)			(3.23)			(2.38)			(1.34)			2.65
Book value per diluted share (excluding AOCI)*			$	49.64		$	49.01		$	47.31		$	47.16		$	46.09		$	45.25		$	44.07
Common shares outstanding and dilutive potential common shares			346.9			353.8			361.5			361.6			360.4			359.3			360.5
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")			12.3		%	12.3		%	10.5		%	10.0		%	10.4		%	11.3		%	11.8		%
Core earnings ROE*			12.5		%	13.1		%	10.9		%	12.7		%	12.3		%	12.7		%	13.3		%

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

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

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

1

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Earned premiums			$	4,565		$	4,460		$	4,343		$	4,316		$	4,347		$	4,234		$	4,391								$	13,368		$	12,972
Fee income			377			375			355			336			323			298			320									1,107			941
Net investment income			650			581			509			556			492			339			459									1,740			1,290
Net realized gains (losses)			70			147			80			102			6			109			(231)									297			(116)
Other revenues			24			26			12			18			3			88			17									62			108
Total revenues			5,686			5,589			5,299			5,328			5,171			5,068			4,956									16,574			15,195
Benefits, losses and loss adjustment expenses [1]			3,420			2,786			3,350			3,080			2,962			2,847			2,916									9,556			8,725
Amortization of deferred acquisition costs ("DAC")			419			417			416			419			421			429			437									1,252			1,287
Insurance operating costs and other expenses			1,200			1,202			1,144			1,086			1,093			1,125			1,176									3,546			3,394
Interest expense			58			57			57			57			58			57			64									172			179
Amortization of other intangible assets			18			17			18			17			18			18			19									53			55
Restructuring and other costs [2]			(12)			—			11			17			87			—			—									(1)			87
Total benefits, losses and expenses			5,103			4,479			4,996			4,676			4,639			4,476			4,612									14,578			13,727
Income before income taxes			583			1,110			303			652			532			592			344									1,996			1,468
Income tax expense			101			205			54			115			73			124			71									360			268
Net income			482			905			249			537			459			468			273									1,636			1,200
Preferred stock dividends			6			5			5			5			6			5			5									16			16
Net income available to common stockholders			476			900			244			532			453			463			268									1,620			1,184
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(68)			(148)			(77)			(101)			(6)			(107)			232									(293)			119
Restructuring and other costs, before tax [2]			(12)			—			11			17			87			—			—									(1)			87
Integration and other non-recurring M&A costs, before tax [3]			8			36			9			11			14			13			13									53			40
Change in deferred gain on retroactive reinsurance, before tax [4]			28			39			6			215			14			54			29									73			97
Income tax expense (benefit) [5]			10			9			10			(38)			(35)			15			(57)									29			(77)
Core earnings			$	442		$	836		$	203		$	636		$	527		$	438		$	485								$	1,481		$	1,450

[1]P&C incurred losses arising from the Coronavirus Disease 2019 ("COVID-19") pandemic were $3 and $30, respectively, for the three and nine months ended September 30, 2021 and were $37 and $250, respectively, for the three and nine months ended September 30, 2020. Incurred losses in Group Benefits from excess mortality, primarily caused by direct and indirect impacts of COVID-19, were $212 and $422, respectively, for the three and nine months ended September 30, 2021 and were $42 and $87, respectively, for the three and nine months ended September 30, 2020. COVID-19 related losses from short-term disability claims were $16 and $23, respectively, for the three and nine months ended September 30, 2021 and were $(14) and $(14), respectively, for the three and nine months ended September 30, 2020. The three and nine months ended September 30, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America. See note [1] on page 9 for more information.

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

[3]The three and nine months ended September 30, 2021 included Navigators Group acquisition integration costs of $5 and $16, respectively, and integration costs related to the 2017 acquisition of Aetna's group benefits business of $1 and $5, respectively. The three and nine month periods ended September 30, 2020 included Navigators Group acquisition transaction and integration costs of $9 and $25, respectively, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $5 and $15, respectively. The nine months ended September 30, 2021 included legal and consulting costs associated with the unsolicited proposals from Chubb Limited to acquire the Company.

[4]As of September 30, 2021, the Company has cumulatively ceded $282 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $28 and $73 in the three and nine month periods ended September 30, 2021. Of the $282 cumulative losses ceded, $191 of the ceded losses has been recognized as a deferred gain within other liabilities as of September 30, 2021 since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded exceed the ceded premium paid of $91. As the Company has ceded $282 of the $300 available limit, there is $18 of remaining limit available as of September 30, 2021.

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income (loss):
Commercial Lines			$	357		$	569		$	129		$	478		$	323		$	(66)		$	121								$	1,055		$	378
Personal Lines			51			118			135			170			79			371			98									304			548
P&C Other Operations			22			17			(13)			(180)			2			5			5									26			12
Property & Casualty ("P&C")			430			704			251			468			404			310			224									1,385			938
Group Benefits			28			170			9			59			119			101			104									207			324
Hartford Funds			56			52			47			51			44			39			36									155			119
Sub-total			514			926			307			578			567			450			364									1,747			1,381
Corporate			(32)			(21)			(58)			(41)			(108)			18			(91)									(111)			(181)
Net income			482			905			249			537			459			468			273									1,636			1,200
Preferred stock dividends			6			5			5			5			6			5			5									16			16
Net income available to common stockholders			$	476		$	900		$	244		$	532		$	453		$	463		$	268								$	1,620		$	1,184
Core earnings (losses):
Commercial Lines			$	344		$	560		$	105		$	444		$	349		$	(57)		$	262								$	1,009		$	554
Personal Lines			48			113			131			164			77			364			117									292			558
P&C Other Operations			20			15			(15)			(16)			2			2			11									20			15
P&C			412			688			221			592			428			309			390									1,321			1,127
Group Benefits			19			149			(3)			49			116			102			115									165			333
Hartford Funds			58			51			45			46			40			33			44									154			117
Sub-total			489			888			263			687			584			444			549									1,640			1,577
Corporate			(47)			(52)			(60)			(51)			(57)			(6)			(64)									(159)			(127)
Core earnings			$	442		$	836		$	203		$	636		$	527		$	438		$	485								$	1,481		$	1,450

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

			PROPERTY & CASUALTY									GROUP BENEFITS									HARTFORD FUNDS									CORPORATE [1]									CONSOLIDATED
			Sept 30 2021			Dec 31 2020						Sept 30 2021			Dec 31 2020						Sept 30 2021			Dec 31 2020						Sept 30 2021			Dec 31 2020						Sept 30 2021			Dec 31 2020
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value			$	33,663		$	34,173					$	9,900		$	10,521					$	—		$	—					$	379		$	341					$	43,942		$	45,035
Equity securities, at fair value			1,023			961						288			204						87			74						218			199						1,616			1,438
Mortgage loans, net			3,702			3,133						1,404			1,360						—			—						—			—						5,106			4,493
Limited partnerships and other alternative investments			2,391			1,711						570			371						—			—						—			—						2,961			2,082
Other investments			213			143						29			7						79			30						16			21						337			201
Short-term investments			1,232			1,086						224			254						221			238						1,935			1,705						3,612			3,283
Total investments			42,224			41,207						12,415			12,717						387			342						2,548			2,266						57,574			56,532
Cash			199			120						20			13						10			15						3			3						232			151
Restricted cash			145			82						20			6						—			—						—			—						165			88
Premiums receivable and agents’ balances, net			4,100			3,779						498			489						—			—						—			—						4,598			4,268
Reinsurance recoverables, net [2]			5,715			5,461						252			244						—			—						280			306						6,247			6,011
DAC			844			744						32			38						7			7						—			—						883			789
Deferred income taxes			(105)			(240)						(251)			(277)						—			2						565			561						209			46
Goodwill			778			778						723			723						181			181						229			229						1,911			1,911
Property and equipment, net			896			961						77			83						11			12						63			66						1,047			1,122
Other intangible assets			423			462						448			478						10			10						—			—						881			950
Other assets			1,763			1,425						415			218						106			93						92			330						2,376			2,066
Assets held for sale [3]			167			177						—			—						—			—						—			—						167			177
Total assets			$	57,149		$	54,956					$	14,649		$	14,732					$	712		$	662					$	3,780		$	3,761					$	76,290		$	74,111
Unpaid losses and loss adjustment expenses			$	31,190		$	29,622					$	8,188		$	8,233					$	—		$	—					$	—		$	—					$	39,378		$	37,855
Reserves for future policy benefits [2]			—			—						402			420						—			—						200			218						602			638
Other policyholder funds and benefits payable [2]			—			—						420			415						—			—						265			286						685			701
Unearned premiums			7,223			6,589						45			40						—			—						—			—						7,268			6,629
Debt			—			—						—			—						—			—						4,943			4,352						4,943			4,352
Other liabilities			2,697			2,631						459			259						237			211						2,008			2,121						5,401			5,222
Liabilities held for sale [3]			151			158						—			—						—			—						—			—						151			158
Total liabilities			41,261			39,000						9,514			9,367						237			211						7,416			6,977						58,428			55,555
Common stockholders' equity, excluding AOCI*			14,537			13,997						4,559			4,565						475			451						(2,350)			(1,961)						17,221			17,052
Preferred stock			—			—						—			—						—			—						334			334						334			334
AOCI, net of tax			1,351			1,959						576			800						—			—						(1,620)			(1,589)						307			1,170
Total stockholders' equity			15,888			15,956						5,135			5,365						475			451						(3,636)			(3,216)						17,862			18,556
Total liabilities and stockholders' equity			$	57,149		$	54,956					$	14,649		$	14,732					$	712		$	662					$	3,780		$	3,761					$	76,290		$	74,111

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $2.1 billion and $1.8 billion as of September 30, 2021 and December 31, 2020, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
DEBT
Senior notes			$	3,853		$	3,264		$	3,263		$	3,262		$	3,261		3,260			3,260
Junior subordinated debentures			1,090			1,090			1,090			1,090			1,090			1,090			1,089
Total debt			$	4,943		$	4,354		$	4,353		$	4,352		$	4,351		$	4,350		$	4,349
STOCKHOLDERS’ EQUITY
Total stockholders’ equity			$	17,862		$	18,244		$	17,702		$	18,556		$	17,802		$	17,072		$	15,266
Less: Preferred stock			334			334			334			334			334			334			334
Less: AOCI			307			570			264			1,170			856			479			(957)
Common stockholders' equity, excluding AOCI			$	17,221		$	17,340		$	17,104		$	17,052		$	16,612		$	16,259		$	15,889
CAPITALIZATION
Total capitalization, including AOCI, net of tax			$	22,805		$	22,598		$	22,055		$	22,908		$	22,153		$	21,422		$	19,615
Total capitalization, excluding AOCI, net of tax*			$	22,498		$	22,028		$	21,791		$	21,738		$	21,297		$	20,943		$	20,572
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI			21.7		%	19.3		%	19.7		%	19.0		%	19.6		%	20.3		%	22.2		%
Total debt to capitalization, excluding AOCI*			22.0		%	19.8		%	20.0		%	20.0		%	20.4		%	20.8		%	21.1		%
Total debt and preferred stock to capitalization, including AOCI			23.1		%	20.7		%	21.3		%	20.5		%	21.1		%	21.9		%	23.9		%
Total debt and preferred stock to capitalization, excluding AOCI*			23.5		%	21.3		%	21.5		%	21.6		%	22.0		%	22.4		%	22.8		%
Total rating agency adjusted debt to capitalization [1] [2]			24.3		%	22.0		%	22.6		%	21.8		%	22.9		%	23.5		%	25.6		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]			9.8:1			10.7:1			4.8:1			8.9:1			8.2:1			7.7:1			5.4:1

[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.9 billion and $1.1 billion as of September 30, 2021 and 2020, respectively.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

SEPTEMBER 30, 2021

			P&C			GROUP BENEFITS
U.S. statutory net income [1][2]			$	1,015		$	58
U.S. statutory capital [2][3]			$	11,394		$	2,481
U.S. GAAP adjustments [2]:
DAC			822			32
Non-admitted deferred tax assets [4]			230			169
Deferred taxes [5]			(941)			(576)
Goodwill			129			723
Other intangible assets			60			448
Non-admitted assets other than deferred taxes			807			105
Asset valuation and interest maintenance reserve			—			340
Benefit reserves			(88)			153
Unrealized gains on investments			1,668			784
Deferred gain on retroactive reinsurance agreements [6]			(344)			—
Other, net			983			476
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]			14,720			5,135
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group			1,168			—
Total U.S. GAAP stockholders’ equity			$	15,888		$	5,135

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

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

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

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

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

			AS OF
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
Net unrealized gain on fixed maturities, AFS			$	1,930		$	2,204		$	1,909		$	2,834		$	2,431		$	2,055		$	627
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")			(2)			(2)			(2)			(2)			(2)			(2)			(2)
Net gains on cash flow hedging instruments			13			12			17			12			31			48			53
Total net unrealized gain			$	1,941		$	2,214		$	1,924		$	2,844		$	2,460		$	2,101		$	678
Foreign currency translation adjustments			42			46			44			43			33			27			26
Pension and other postretirement plan adjustments			(1,676)			(1,690)			(1,704)			(1,717)			(1,637)			(1,649)			(1,661)
Total AOCI			$	307		$	570		$	264		$	1,170		$	856		$	479		$	(957)

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Written premiums			$	3,297		$	3,254		$	3,218		$	2,870		$	2,980		$	2,903		$	3,152								$	9,769		$	9,035
Change in unearned premium reserve			104			172			249			(128)			(50)			52			113									525			115
Earned premiums			3,193			3,082			2,969			2,998			3,030			2,851			3,039									9,244			8,920
Fee income			16			16			17			17			16			14			17									49			47
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			1,830			1,786			1,710			1,747			1,802			1,828			1,806									5,326			5,436
Current accident year catastrophes			300			128			214			55			229			248			74									642			551
Prior accident year development [2]			90			(149)			229			184			(75)			(268)			23									170			(320)
Total losses and loss adjustment expenses			2,220			1,765			2,153			1,986			1,956			1,808			1,903									6,138			5,667
Amortization of DAC			405			404			402			405			404			412			420									1,211			1,236
Underwriting expenses [3]			588			561			544			520			539			540			597									1,693			1,676
Amortization of other intangible assets			8			7			8			7			8			9			8									23			25
Dividends to policyholders			5			6			6			6			8			7			8									17			23
Underwriting gain (loss)*			(17)			355			(127)			91			131			89			120									211			340
Net investment income			487			442			378			425			371			242			334									1,307			947
Net realized gains (losses)			57			56			53			54			(21)			74			(173)									166			(120)
Net servicing and other income (expense)			2			6			2			(3)			(4)			(7)			(3)									10			(14)
Income before income taxes			529			859			306			567			477			398			278									1,694			1,153
Income tax expense			99			155			55			99			73			88			54									309			215
Net income			430			704			251			468			404			310			224									1,385			938
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(56)			(56)			(51)			(54)			20			(71)			173									(163)			122
Integration and other non-recurring M&A costs, before tax			5			4			7			8			9			8			8									16			25
Change in deferred gain on retroactive reinsurance, before tax [2]			28			39			6			215			14			54			29									73			97
Income tax expense (benefit) [4]			5			(3)			8			(45)			(19)			8			(44)									10			(55)
Core earnings			$	412		$	688		$	221		$	592		$	428		$	309		$	390								$	1,321		$	1,127
ROE
Net income available to common stockholders [5]			14.0		%	13.8		%	11.5		%	10.6		%	10.2		%	11.0		%	12.7		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(1.8		%)	(1.2		%)	(1.4		%)	0.6		%	0.6		%	(0.2		%)	(0.2)		%
Loss on reinsurance transaction, before tax			—		%	—		%	—		%	—		%	—		%	—		%	1.0		%
Integration and other non-recurring M&A costs, before tax			0.2		%	0.2		%	0.3		%	0.3		%	0.3		%	0.4		%	0.5		%
Changes in loss reserves upon acquisition of a business, before tax			—		%	—		%	—		%	—		%	—		%	—		%	1.1		%
Change in deferred gain on retroactive reinsurance, before tax [2]			2.4		%	2.2		%	2.6		%	2.6		%	1.0		%	0.9		%	0.5		%
Income tax expense (benefit) [4]			(0.3		%)	(0.5		%)	(0.4		%)	(0.8		%)	(0.4		%)	(0.2		%)	(0.6)		%
Impact of AOCI, excluded from core earnings ROE			1.8		%	2.0		%	0.7		%	1.7		%	1.5		%	1.4		%	0.5		%
Core earnings [5]			16.3		%	16.5		%	13.3		%	15.0		%	13.2		%	13.3		%	15.5		%

[1]The three and nine months ended September 30, 2021 included $3 and $30 of COVID-19 losses and loss adjustment expenses in Commercial Lines, with the nine month period including $20 in workers' compensation and $10 in financial lines and other. The three and nine months ended September 30, 2020 included $37 and $250 of COVID-19 losses and loss adjustment expenses, with the nine month period including $141 for commercial property, $57 for financial lines and other and $52 for workers' compensation net of favorable frequency.

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

[3]The three months ended September 30, 2021 and 2020 included a decrease in the ACL on premiums receivable of $7 and $1, respectively, related to the lessening impacts of COVID-19. The nine months ended September 30, 2021 and 2020 included a decrease (increase) in the ACL on premiums receivable of $22 and ($47), respectively, related to the lessening (increasing) impacts of COVID-19.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS (CONTINUED)

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines			$	9		$	—		$	—		$	—		$	—		$	22		$	5								$	9		$	27
Auto liability - Personal Lines			(30)			(20)			(23)			(8)			(32)			(15)			(6)									(73)			(53)
Homeowners			1			4			(3)			4			3			2			(2)									2			3
Marine			(1)			(5)			6			2			—			1			—									—			1
Professional liability			—			(6)			(1)			2			(21)			4			1									(7)			(16)
Package business			(20)			(19)			(27)			(34)			(18)			(7)			1									(66)			(24)
General liability [1]			144			—			307			125			(2)			102			12									451			112
Bond			(12)			(14)			—			(9)			—			(10)			—									(26)			(10)
Assumed Reinsurance			—			(2)			2			1			—			(7)			—									—			(7)
Commercial property			(4)			(7)			(13)			2			(4)			5			(7)									(24)			(6)
Net asbestos reserves			—			—			—			(2)			—			—			—									—			—
Workers’ compensation			(30)			(43)			(40)			(38)			(34)			(21)			(17)									(113)			(72)
Workers' compensation discount accretion			8			9			9			8			9			9			9									26			27
Catastrophes [2]			—			(82)			(16)			(116)			—			(400)			(13)									(98)			(413)
Uncollectible reinsurance			—			(1)			(9)			—			(6)			(2)			—									(10)			(8)
Other reserve re-estimates			(3)			(2)			31			32			16			(5)			11									26			22
Prior accident year development before change in deferred gain			62			(188)			223			(31)			(89)			(322)			(6)									97			(417)
Change in deferred gain on retroactive reinsurance included in other liabilities [3]			28			39			6			215			14			54			29									73			97
Total prior accident year development			$	90		$	(149)		$	229		$	184		$	(75)		$	(268)		$	23								$	170		$	(320)

[1]The three and nine months ended September 30, 2021 included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America ("BSA"). On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA under which The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s, an increase from the $650 settlement announced in April, 2021.

[2]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.

[3]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. For the three and nine months ended September 30, 2021, an increase in deferred gain of $28 and $73, respectively, was recognized relating to ceding losses to the Navigators ADC in excess of ceded premium paid. For the three months ended September 30, 2021, adverse development on Navigators 2018 and prior accident year reserves was primarily driven by wholesale construction. For the three months ended June 30, 2020, the $54 of adverse development due to the increase in the deferred gain primarily included increased reserves for construction account business within general liability, professional liability, and assumed reinsurance. For the three months ended December 31, 2020, the $215 increase in the deferred gain primarily represented adverse development for A&E of $210 in excess of the ceded premium paid for the A&E ADC.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
UNDERWRITING GAIN (LOSS)			$	(17)		$	355		$	(127)		$	91		$	131		$	89		$	120								$	211		$	340
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			57.3			57.9			57.6			58.3			59.5			64.1			59.4									57.6			60.9
Current accident year catastrophes			9.4			4.2			7.2			1.8			7.6			8.7			2.4									6.9			6.2
Prior accident year development [2]			2.8			(4.8)			7.7			6.1			(2.5)			(9.4)			0.8									1.8			(3.6)
Total losses and loss adjustment expenses			69.5			57.3			72.5			66.2			64.6			63.4			62.6									66.4			63.5
Expenses [3][4]			30.8			31.0			31.6			30.5			30.9			33.2			33.2									31.1			32.4
Policyholder dividends			0.2			0.2			0.2			0.2			0.3			0.2			0.3									0.2			0.3
Combined ratio			100.5			88.5			104.3			97.0			95.7			96.9			96.1									97.7			96.2
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			(12.2)			0.6			(14.9)			(7.9)			(5.1)			0.7			(3.2)									(8.7)			(2.6)
Underlying combined ratio *			88.3			89.2			89.4			89.0			90.6			97.6			92.9									88.9			93.6

[1]The three months ended September 30, 2021 and 2020 included 0.1 points and 1.2 points, respectively, and the nine months ended September 30, 2021 and 2020 included 0.3 points and 2.8 points, respectively, of COVID-19 losses. See [1] on page 8.

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

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

[4]The three and nine months ended September 30, 2021 included a decrease in the ACL on premiums receivable of $7 and $22 respectively, related to the lessening impacts of COVID-19 representing 0.2 points and 0.2 points of the expense ratio, respectively. The three and nine months ended September 30, 2020 included a decrease (increase) 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.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Written premiums			$	2,532		$	2,494		$	2,503		$	2,197		$	2,199		$	2,165		$	2,408								$	7,529		$	6,772
Change in unearned premium reserve			83			150			268			(40)			(52)			8			143									501			99
Earned premiums			2,449			2,344			2,235			2,237			2,251			2,157			2,265									7,028			6,673
Fee income			8			8			9			9			8			5			8									25			21
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			1,351			1,339			1,296			1,307			1,366			1,472			1,343									3,986			4,181
Current accident year catastrophes			222			93			175			42			107			193			55									490			355
Prior accident year development [2]			122			(105)			238			(17)			(57)			77			41									255			61
Total losses and loss adjustment expenses			1,695			1,327			1,709			1,332			1,416			1,742			1,439									4,731			4,597
Amortization of DAC			348			346			344			346			344			351			356									1,038			1,051
Underwriting expenses			432			405			394			373			391			387			443									1,231			1,221
Amortization of other intangible assets			7			7			7			6			8			7			7									21			22
Dividends to policyholders			5			6			6			6			8			7			8									17			23
Underwriting gain (loss)			(30)			261			(216)			183			92			(332)			20									15			(220)
Net servicing income			2			7			2			2			1			—			1									11			2
Net investment income			421			382			327			363			316			204			277									1,130			797
Net realized gains (losses)			51			47			44			45			(26)			64			(143)									142			(105)
Other expenses			(5)			(6)			(4)			(10)			(8)			(11)			(6)									(15)			(25)
Income (loss) before income taxes			439			691			153			583			375			(75)			149									1,283			449
Income tax expense (benefit)			82			122			24			105			52			(9)			28									228			71
Net income (loss)			357			569			129			478			323			(66)			121									1,055			378
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(50)			(47)			(43)			(46)			25			(61)			143									(140)			107
Integration and other non-recurring M&A costs, before tax [3]			5			4			7			8			9			8			8									16			25
Change in deferred gain on retroactive reinsurance, before tax [2]			28			39			6			5			14			54			29									73			97
Income tax expense (benefit) [4]			4			(5)			6			(1)			(22)			8			(39)									5			(53)
Core earnings (losses)			$	344		$	560		$	105		$	444		$	349		$	(57)		$	262								$	1,009		$	554

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

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

[3]Includes Navigators Group integration costs.

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

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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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Auto liability			$	9		$	—		$	—		$	—		$	—		$	22		$	5								$	9		$	27
Professional liability			—			(6)			(1)			2			(21)			4			1									(7)			(16)
Package business			(20)			(19)			(27)			(34)			(18)			(7)			1									(66)			(24)
General liability			144			—			307			125			(2)			102			12									451			112
Marine			(1)			(5)			6			2			—			1			—									—			1
Bond			(12)			(14)			—			(9)			—			(10)			—									(26)			(10)
Assumed Reinsurance			—			(2)			2			1			—			(7)			—									—			(7)
Commercial property			(4)			(7)			(13)			2			(4)			5			(7)									(24)			(6)
Workers’ compensation			(30)			(43)			(40)			(38)			(34)			(21)			(17)									(113)			(72)
Workers' compensation discount accretion			8			9			9			8			9			9			9									26			27
Catastrophes			—			(53)			(4)			(77)			—			(67)			(5)									(57)			(72)
Uncollectible reinsurance			—			—			(5)			—			—			—			—									(5)			—
Other reserve re-estimates			—			(4)			(2)			(4)			(1)			(8)			13									(6)			4
Prior accident year development before change in deferred gain			94			(144)			232			(22)			(71)			23			12									182			(36)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]			28			39			6			5			14			54			29									73			97
Total prior accident year development			$	122		$	(105)		$	238		$	(17)		$	(57)		$	77		$	41								$	255		$	61

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS 

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
UNDERWRITING GAIN (LOSS)			$	(30)		$	261		$	(216)		$	183		$	92		$	(332)		$	20								$	15		$	(220)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]			55.2			57.1			58.0			58.4			60.7			68.2			59.3									56.7			62.7
Current accident year catastrophes			9.1			4.0			7.8			1.9			4.8			8.9			2.4									7.0			5.3
Prior accident year development [2]			5.0			(4.5)			10.6			(0.8)			(2.5)			3.6			1.8									3.6			0.9
Total losses and loss adjustment expenses			69.2			56.6			76.5			59.5			62.9			80.8			63.5									67.3			68.9
Expenses [3] [4]			31.8			32.0			32.9			32.0			32.7			34.3			35.2									32.2			34.1
Policyholder dividends			0.2			0.3			0.3			0.3			0.4			0.3			0.4									0.2			0.3
Combined ratio [2] [5]			101.2			88.9			109.7			91.8			95.9			115.4			99.1									99.8			103.3
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			(14.1)			0.5			(18.4)			(1.1)			(2.3)			(12.5)			(4.2)									(10.6)			(6.2)
Underlying combined ratio			87.2			89.4			91.2			90.7			93.7			102.9			94.9									89.2			97.1
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio			84.5			83.6			95.4			80.2			89.5			97.4			93.2									87.6			93.3
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(5.0)			(3.8)			(12.1)			(2.9)			(5.5)			(13.2)			(2.6)									(6.8)			(7.0)
Prior accident year development			4.4			7.2			5.0			9.7			3.7			8.7			(1.3)									5.5			3.6
Underlying combined ratio			83.9			87.0			88.3			87.0			87.7			92.9			89.3									86.3			89.9
MIDDLE & LARGE COMMERCIAL
Combined ratio			108.0			92.9			98.9			86.5			101.2			124.3			103.8									100.1			109.5
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(16.3)			(5.8)			(7.0)			0.2			(5.1)			(9.8)			(3.6)									(9.8)			(6.1)
Prior accident year development			(0.4)			4.4			3.3			6.3			1.6			(1.6)			0.2									2.4			0.1
Underlying combined ratio			91.4			91.5			95.3			93.0			97.7			112.9			100.4									92.7			103.5
GLOBAL SPECIALTY
Combined ratio [2] [5]			97.1			91.9			92.4			95.1			99.6			113.8			102.2									93.9			105.2
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(6.2)			(1.8)			(2.2)			(3.0)			(3.2)			(1.2)			(0.6)									(3.4)			(1.7)
Prior accident year development [2]			(4.0)			0.1			(0.3)			1.3			1.8			(7.1)			(5.2)									(1.4)			(3.5)
Underlying combined ratio			86.9			90.3			89.9			93.3			98.2			105.5			96.4									89.0			100.0

[1]The three months ended September 30, 2021 and 2020 included COVID-19 losses of 0.1 points and 1.6 points, respectively, and the nine months ended September 30, 2021 and 2020 included COVID-19 losses of 0.4 points and 3.7 points, respectively. See [1] on page 8.

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

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

[4]The three and nine months ended September 30, 2021 included a before tax decrease in the ACL on premiums receivable primarily related to the lessening impacts of COVID-19 of $7 and $19, respectively, representing 0.3 points and 0.3 points, respectively, of the expense ratio. The nine months ended September 30, 2020 included a before-tax increase in the ACL on premiums receivable related to the increasing impacts of COVID-19 of $44, representing 0.7 points of the expense ratio.

[5]The three and nine months ended September 30, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $28 and $73, respectively, representing 1.1 points and 1.0 points, respectively, of the Commercial Lines combined ratio and 4.6 points and 4.2 points, respectively, of the global specialty combined ratio. The three and nine months ended September 30, 2020 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC 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.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
WRITTEN PREMIUMS
Small Commercial			$	1,012		$	977		$	1,053		$	873		$	890		$	877		$	1,011								$	3,042		$	2,778
Middle & Large Commercial			884			817			775			746			750			683			797									2,476			2,230
Middle Market			765			720			662			647			653			609			680									2,147			1,942
National Accounts and Other			119			97			113			99			97			74			117									329			288
Global Specialty [1]			625			689			665			568			549			595			589									1,979			1,733
U.S.			452			466			421			395			395			389			379									1,339			1,163
International			81			113			110			107			88			119			98									304			305
Global Re			92			110			134			66			66			87			112									336			265
Other			11			11			10			10			10			10			11									32			31
Total			$	2,532		$	2,494		$	2,503		$	2,197		$	2,199		$	2,165		$	2,408								$	7,529		$	6,772
EARNED PREMIUMS
Small Commercial			$	1,015		$	956		$	916		$	908		$	935		$	877		$	930								$	2,887		$	2,742
Middle & Large Commercial			820			788			752			742			749			713			772									2,360			2,234
Middle Market			704			682			653			649			646			625			673									2,039			1,944
National Accounts and Other			116			106			99			93			103			88			99									321			290
Global Specialty [1]			604			589			556			577			555			557			552									1,749			1,664
U.S.			421			406			386			386			387			368			374									1,213			1,129
International			95			99			102			99			101			117			112									296			330
Global Re			88			84			68			92			67			72			66									240			205
Other			10			11			11			10			12			10			11									32			33
Total			$	2,449		$	2,344		$	2,235		$	2,237		$	2,251		$	2,157		$	2,265								$	7,028		$	6,673
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium			$	165		$	170		$	176		$	153		$	129		$	118		$	157								$	511		$	404
Renewal Written Price Increases			3.2		%	3.1		%	2.4		%	2.1		%	1.6		%	1.8		%	2.3		%							2.9		%	1.9		%
Policy Count Retention [2]			84		%	84		%	84		%	83		%	84		%	83		%	83		%							84		%	83		%
Policy Count Retention, Net of Cancellations [2] [3]			93		%	82		%	86		%	84		%	79		%	88		%	84		%							87		%	84		%
Policies in Force (in thousands)			1,352			1,329			1,304			1,283			1,278			1,297			1,291
Middle Market [4]
Net New Business Premium			$	139		$	147		$	122		$	124		$	131		$	99		$	125								$	408		$	355
Renewal Written Price Increases			6.0		%	6.2		%	6.1		%	7.6		%	8.0		%	7.4		%	7.7		%							6.1		%	7.7		%
Policy Count Retention [2]			87		%	82		%	80		%	77		%	79		%	78		%	79		%							83		%	79		%
Policy Count Retention, Net of Cancellations [2]			90		%	81		%	81		%	77		%	77		%	79		%	77		%							84		%	78		%
Policies in Force (in thousands)			61			59			58			59			59			60			62
Global Specialty
Gross New Business Premium [5]			$	234		$	237		$	216		$	184		$	185		$	186		$	197								$	687		$	568
U.S. - Renewal Written Price Increases			9.9		%	11.8		%	15.8		%	18.6		%	20.5		%	18.9		%	11.6		%							12.4		%	17.0		%
International - Renewal Written Price Increases [6]			17.3		%	22.7		%	27.0		%	48.5		%	52.6		%	47.3		%	21.8		%							22.7		%	38.8		%

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

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

[3]Policy count retention, net of cancellations for small commercial increased in the three month period ended June 30, 2020 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.

[4]Except for net new business premium, metrics for Middle Market exclude loss sensitive and programs businesses.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Written premiums [1]			$	765		$	760		$	715		$	673		$	781		$	738		$	744								$	2,240		$	2,263
Change in unearned premium reserve			21			22			(19)			(88)			2			44			(30)									24			16
Earned premiums [1]			744			738			734			761			779			694			774									2,216			2,247
Fee income			8			8			8			8			8			9			9									24			26
Losses and loss adjustment expenses
Current accident year before catastrophes			479			447			414			440			436			356			463									1,340			1,255
Current accident year catastrophes			78			35			39			13			122			55			19									152			196
Prior accident year development			(27)			(44)			(42)			(42)			(29)			(349)			(18)									(113)			(396)
Total losses and loss adjustment expenses			530			438			411			411			529			62			464									1,379			1,055
Amortization of DAC			57			58			58			59			60			61			64									173			185
Underwriting expenses			154			154			148			144			146			150			151									456			447
Amortization of other intangible assets			1			—			1			1			—			2			1									2			3
Underwriting gain			10			96			124			154			52			428			103									230			583
Net servicing income			6			5			4			4			5			3			2									15			10
Net investment income			44			40			35			47			41			28			41									119			110
Net realized gains (losses)			4			6			7			7			3			8			(23)									17			(12)
Other income (expense)			(1)			—			—			—			(2)			1			—									(1)			(1)
Income before income taxes			63			147			170			212			99			468			123									380			690
Income tax expense			12			29			35			42			20			97			25									76			142
Net income			51			118			135			170			79			371			98									304			548
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(4)			(6)			(6)			(6)			(3)			(8)			23									(16)			12
Income tax expense (benefit) [2]			1			1			2			—			1			1			(4)									4			(2)
Core earnings			$	48		$	113		$	131		$	164		$	77		$	364		$	117								$	292		$	558

[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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Auto liability			$	(30)		$	(20)		$	(23)		$	(8)		$	(32)		$	(15)		$	(6)								$	(73)		$	(53)
Homeowners			1			4			(3)			4			3			2			(2)									2			3
Catastrophes [1]			—			(29)			(12)			(39)			—			(333)			(8)									(41)			(341)
Other reserve re-estimates, net			2			1			(4)			1			—			(3)			(2)									(1)			(5)
Total prior accident year development			$	(27)		$	(44)		$	(42)		$	(42)		$	(29)		$	(349)		$	(18)								$	(113)		$	(396)

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
UNDERWRITING GAIN			$	10		$	96		$	124		$	154		$	52		$	428		$	103								$	230		$	583
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes			64.4			60.6			56.4			57.8			56.0			51.3			59.8									60.5			55.9
Current accident year catastrophes			10.5			4.7			5.3			1.7			15.7			7.9			2.5									6.9			8.7
Prior accident year development [1]			(3.6)			(6.0)			(5.7)			(5.5)			(3.7)			(50.3)			(2.3)									(5.1)			(17.6)
Total losses and loss adjustment expenses			71.2			59.3			56.0			54.0			67.9			8.9			59.9									62.2			47.0
Expenses			27.4			27.6			27.1			25.8			25.4			29.4			26.7									27.4			27.1
Combined ratio			98.7			87.0			83.1			79.8			93.3			38.3			86.7									89.6			74.1
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development			(6.9)			1.3			0.4			3.8			(12.0)			42.4			(0.2)									(1.8)			8.9
Underlying combined ratio			91.8			88.2			83.5			83.6			81.4			80.7			86.6									87.9			83.0
PRODUCT
Automobile
Combined ratio			96.5			89.2			83.5			88.3			81.3			82.5			89.8									89.8			84.6
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(2.3)			(1.3)			(0.5)			(0.5)			(1.5)			(1.8)			(0.3)									(1.4)			(1.2)
Prior accident year development			5.5			4.2			3.3			1.9			5.2			5.6			1.5									4.3			4.0
Underlying combined ratio			99.7			92.1			86.3			89.6			84.9			86.3			90.9									92.7			87.4
Homeowners
Combined ratio			103.4			82.0			86.8			60.3			122.9			(45.8)			79.2									90.8			52.1
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes			(28.3)			(12.8)			(15.9)			(4.5)			(47.7)			(20.1)			(7.0)									(19.0)			(24.9)
Prior accident year development			(0.5)			10.0			6.3			14.0			(1.2)			136.0			4.0									5.2			46.2
Underlying combined ratio			74.6			79.2			77.2			69.9			74.0			70.1			76.2									77.0			73.4

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct			$	659		$	653		$	612		$	564		$	666		$	627		$	627								$	1,924		$	1,920
AARP Agency			51			51			51			53			53			50			57									153			160
Other Agency			49			50			45			51			54			54			52									144			160
Other			6			6			7			5			8			7			8									19			23
Total			$	765		$	760		$	715		$	673		$	781		$	738		$	744								$	2,240		$	2,263
EARNED PREMIUMS
AARP Direct			$	635		$	629		$	623		$	644		$	657		$	581		$	647								$	1,887		$	1,885
AARP Agency			52			53			53			56			56			52			60									158			168
Other Agency			49			50			51			54			57			54			60									150			171
Other			8			6			7			7			9			7			7									21			23
Total			$	744		$	738		$	734		$	761		$	779		$	694		$	774								$	2,216		$	2,247
PRODUCT LINE
WRITTEN PREMIUMS
Automobile			$	516		$	515		$	508		$	459		$	529		$	481		$	534								$	1,539		$	1,544
Homeowners			249			245			207			214			252			257			210									701			719
Total			$	765		$	760		$	715		$	673		$	781		$	738		$	744								$	2,240		$	2,263
EARNED PREMIUMS
Automobile			$	511		$	509		$	507		$	525		$	541		$	456		$	536								$	1,527		$	1,533
Homeowners			233			229			227			236			238			238			238									689			714
Total			$	744		$	738		$	734		$	761		$	779		$	694		$	774								$	2,216		$	2,247

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile			$	58		$	56		$	53		$	45		$	55		$	65		$	58								$	167		$	178
Homeowners			$	17		$	16		$	13		$	12		$	16		$	18		$	17								$	46		$	51
Renewal Written Price Increases
Automobile			2.2		%	2.4		%	1.8		%	1.7		%	2.1		%	2.5		%	3.1		%							2.1		%	2.6		%
Homeowners			8.1		%	8.5		%	9.4		%	8.7		%	7.1		%	5.1		%	4.7		%							8.6		%	5.7		%
Policy Count Retention [1]
Automobile			84		%	85		%	85		%	85		%	85		%	84		%	84		%							85		%	84		%
Homeowners			84		%	85		%	85		%	85		%	85		%	84		%	84		%							85		%	84		%
Policy Count Retention, Net of Cancellations[1] [2]
Automobile			87		%	79		%	85		%	84		%	84		%	90		%	86		%							83		%	86		%
Homeowners			86		%	81		%	85		%	84		%	84		%	89		%	86		%							84		%	86		%
Policies in Force (in thousands)
Automobile			1,328			1,339			1,357			1,369			1,392			1,416			1,410
Homeowners			786			799			815			826			846			865			868

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

[2]Policy count retention, net of cancellations, increased in the three month period ended June 30, 2020 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.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

 

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Losses and loss adjustment expenses
Prior accident year development			$	(5)		$	—		$	33		$	243		$	11		$	4		$	—								$	28		$	15
Total losses and loss adjustment expenses			(5)			—			33			243			11			4			—									28			15
Underwriting expenses			2			2			2			3			2			3			3									6			8
Underwriting gain (loss)			3			(2)			(35)			(246)			(13)			(7)			(3)									(34)			(23)
Net investment income			22			20			16			15			14			10			16									58			40
Net realized gains (losses)			2			3			2			2			2			2			(7)									7			(3)
Other income			—			—			—			1			—			—			—									—			—
Income (loss) before income taxes			27			21			(17)			(228)			3			5			6									31			14
Income tax expense (benefit)			5			4			(4)			(48)			1			—			1									5			2
Net income (loss)			22			17			(13)			(180)			2			5			5									26			12
Adjustments to reconcile net income to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax			(2)			(3)			(2)			(2)			(2)			(2)			7									(7)			3
Change in deferred gain on retroactive reinsurance, before tax			—			—			—			210			—			—			—									—			—
Income tax expense (benefit) [1]			—			1			—			(44)			2			(1)			(1)									1			—
Core earnings (losses)			$	20		$	15		$	(15)		$	(16)		$	2		$	2		$	11								$	20		$	15

[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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Earned premiums			$	1,372		$	1,378		$	1,374		$	1,318		$	1,317		$	1,378		$	1,348								$	4,124		$	4,043
Fee income			43			49			44			43			44			45			43									136			132
Net investment income			159			136			127			124			117			92			115									422			324
Net realized gains (losses)			13			28			19			18			9			3			(8)									60			4
Total revenues			1,587			1,591			1,564			1,503			1,487			1,518			1,498									4,742			4,503
Benefits, losses and loss adjustment expenses [1]			1,199			1,019			1,196			1,092			1,005			1,033			1,007									3,414			3,045
Amortization of DAC			11			10			11			11			13			13			13									32			39
Insurance operating costs and other expenses [2]			336			340			339			317			312			340			339									1,015			991
Amortization of other intangible assets			10			10			10			10			10			9			11									30			30
Total benefits, losses and expenses			1,556			1,379			1,556			1,430			1,340			1,395			1,370									4,491			4,105
Income before income taxes			31			212			8			73			147			123			128									251			398
Income tax expense (benefit)			3			42			(1)			14			28			22			24									44			74
Net income			28			170			9			59			119			101			104									207			324
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(13)			(28)			(18)			(17)			(9)			(2)			8									(59)			(3)
Integration and other non-recurring M&A costs, before tax			1			2			2			3			5			5			5									5			15
Income tax expense (benefit) [3]			3			5			4			4			1			(2)			(2)									12			(3)
Core earnings (losses)			$	19		$	149		$	(3)		$	49		$	116		$	102		$	115								$	165		$	333
Margin
Net income margin			1.8		%	10.7		%	0.6		%	3.9		%	8.0		%	6.7		%	6.9		%							4.4		%	7.2		%
Core earnings margin*			1.2		%	9.5		%	(0.2		%)	3.3		%	7.9		%	6.9		%	7.8		%							3.5		%	7.5		%
ROE
Net income available to common stockholders [4]			5.4		%	7.6		%	6.4		%	8.3		%	11.0		%	12.0		%	13.4		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(1.9		%)	(1.8		%)	(1.2		%)	(0.5		%)	(0.3		%)	(0.4		%)	(0.6		%)
Integration and other non-recurring M&A costs, before tax			0.2		%	0.3		%	0.4		%	0.4		%	0.6		%	0.7		%	0.9		%
Income tax expense (benefit) [3]			0.4		%	0.3		%	0.2		%	—		%	(0.1		%)	(0.1		%)	(0.1		%)
Impact of AOCI, excluded from core earnings ROE			0.8		%	1.1		%	0.5		%	1.4		%	1.8		%	1.5		%	0.6		%
Core earnings [4]			4.9		%	7.5		%	6.3		%	9.6		%	13.0		%	13.7		%	14.2		%

[1]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $212 and $42, respectively, for the three months ended September 30, 2021 and 2020 and $422 and $87, respectively, for the nine months ended September 30, 2021 and 2020. The $212 of excess mortality losses in third quarter of 2021 included $233 of losses with dates of loss in the third quarter, a $17 net reduction in estimated losses from the first six months of 2021 and a $4 reduction of estimated losses from the 2020 accident year. Also includes COVID-19 related losses (benefit) from short-term disability and paid family leave claims of $16 and $(14), respectively, for the three months ended September 30, 2021 and 2020 and $23 and $(14), respectively, for the nine months ended September 30, 2021 and 2020.

[2]The three months ended September 30, 2021 and 2020 included $3 and $8, respectively, of before tax decreases (increases) in the ACL on uncollectible premiums receivable and the nine months ended September 30, 2021 and 2020 included decreases (increases) of $6 and $(8), respectively.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA

 

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
PREMIUMS
Fully insured ongoing premiums
Group disability			$	702		$	696		$	693		$	646		$	652		$	672		$	660								$	2,091		$	1,984
Group life			591			603			602			601			594			605			605									1,796			1,804
Other [1]			79			79			77			70			70			72			58									235			200
Total fully insured ongoing premiums			1,372			1,378			1,372			1,317			1,316			1,349			1,323									4,122			3,988
Total buyouts [2]			—			—			2			1			1			29			25									2			55
Total premiums			$	1,372		$	1,378		$	1,374		$	1,318		$	1,317		$	1,378		$	1,348								$	4,124		$	4,043
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability			$	35		$	44		$	321		$	28		$	55		$	65		$	213								$	400		$	333
Group life			31			43			151			15			69			73			136									225			278
Other [1]			16			12			40			6			10			11			36									68			57
Total fully insured ongoing sales			82			99			512			49			134			149			385									693			668
Total buyouts [2]			—			—			2			1			1			29			25									2			55
Total sales			$	82		$	99		$	514		$	50		$	135		$	178		$	410								$	695		$	723
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]			68.4		%	64.2		%	68.4		%	65.1		%	65.3		%	62.6		%	71.5		%							67.0		%	66.4		%
Group life loss ratio [4]			110.9		%	83.6		%	108.3		%	102.0		%	87.5		%	85.9		%	74.6		%							100.9		%	82.6		%
Total loss ratio			84.7		%	71.4		%	84.3		%	80.2		%	73.8		%	72.0		%	71.9		%							80.1		%	72.6		%
Expense ratio [5]			25.2		%	25.1		%	25.3		%	24.6		%	24.3		%	25.6		%	26.2		%							25.2		%	25.4		%

[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]Includes losses (benefits) on short-term disability claims related to COVID-19 of 2.1 points and (2.0) points, respectively, for the three months ended September 30, 2021 and 2020 and 1.0 points and (0.7) points, respectively, for the nine months ended September 30, 2021 and 2020.

[4]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 35.9 points and 7.1 points, respectively, for the three months ended September 30, 2021 and 2020 and 23.5 points and 4.8 points, respectively, for the nine months ended September 30, 2021 and 2020.

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

INCOME STATEMENTS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Investment management fees			$	229		$	221		$	208		$	194		$	182		$	165		$	178								$	658		$	525
Shareholder servicing fees			26			25			24			22			22			20			22									75			64
Other revenue			53			50			51			50			47			43			48									154			138
Net realized gains (losses)			(3)			2			2			6			5			8			(11)									1			2
Total revenues			305			298			285			272			256			236			237									888			729
Sub-advisory expense			83			81			75			70			66			60			64									239			190
Employee compensation and benefits			31			33			37			30			29			28			32									101			89
Distribution and service			94			92			90			84			82			75			80									276			237
General, administrative and other			27			25			25			23			24			23			17									77			64
Total expenses			235			231			227			207			201			186			193									693			580
Income before income taxes			70			67			58			65			55			50			44									195			149
Income tax expense			14			15			11			14			11			11			8									40			30
Net income			$	56		$	52		$	47		$	51		$	44		$	39		$	36								$	155		$	119
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			3			(2)			(2)			(6)			(5)			(8)			11									(1)			(2)
Income tax expense (benefit) [1]			(1)			1			—			1			1			2			(3)									—			—
Core earnings			$	58		$	51		$	45		$	46		$	40		$	33		$	44								$	154		$	117
Daily average Hartford Funds AUM			$	155,041		$	150,527		$	143,164		$	130,485		$	122,528		$	110,864		$	119,632								$	149,599		$	117,693
Return on assets (bps, net of tax) [2]
Net income			14.4			13.8			13.1			15.6			14.4			14.1			12.0									13.8			13.5
Core earnings*			15.0			13.6			12.6			14.1			13.1			11.9			14.7									13.7			13.3
ROE
Net income available to common stockholders [3]			56.9		%	54.3		%	52.9		%	49.9		%	48.2		%	48.2		%	50.2		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax			(2.0		%)	(4.3		%)	(6.3		%)	(2.4		%)	(0.9		%)	0.3		%	3.0		%
Income tax expense (benefit) [1]			0.3		%	0.9		%	1.2		%	0.3		%	—		%	(0.3		%)	(1.0)		%
Impact of AOCI, excluded from core earnings ROE			0.4		%	0.3		%	(0.2		%)	0.3		%	0.3		%	0.1		%	(0.7)		%
Core earnings [3]			55.6		%	51.2		%	47.6		%	48.1		%	47.6		%	48.3		%	51.5		%

[1]Represents federal income tax expense (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.

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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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Equity Funds
Beginning balance			$	93,448		$	87,456		$	82,123		$	70,649		$	66,838		$	55,076		$	71,629								$	82,123		$	71,629
Sales			4,757			5,927			6,202			4,303			3,545			5,038			5,313									16,886			13,896
Redemptions			(5,076)			(4,461)			(5,191)			(4,873)			(5,102)			(5,083)			(5,701)									(14,728)			(15,886)
Net flows			(319)			1,466			1,011			(570)			(1,557)			(45)			(388)									2,158			(1,990)
Change in market value and other			(1,529)			4,526			4,322			12,044			5,368			11,807			(16,165)									7,319			1,010
Ending balance			$	91,600		$	93,448		$	87,456		$	82,123		$	70,649		$	66,838		$	55,076								$	91,600		$	70,649
Fixed Income Funds
Beginning balance			$	18,913		$	17,705		$	17,034		$	15,655		$	14,771		$	14,558		$	16,130								$	17,034		$	16,130
Sales			1,708			2,098			2,258			2,108			1,640			1,667			1,782									6,064			5,089
Redemptions			(996)			(1,121)			(1,486)			(1,142)			(1,121)			(2,241)			(2,632)									(3,603)			(5,994)
Net flows			712			977			772			966			519			(574)			(850)									2,461			(905)
Change in market value and other			7			231			(101)			413			365			787			(722)									137			430
Ending balance			$	19,632		$	18,913		$	17,705		$	17,034		$	15,655		$	14,771		$	14,558								$	19,632		$	15,655
Multi-Strategy Investments Funds [1]
Beginning balance			$	23,039		$	22,170		$	22,645		$	21,116		$	20,526		$	18,407		$	21,332								$	22,645		$	21,332
Sales			621			629			738			688			693			801			1,026									1,988			2,520
Redemptions			(706)			(718)			(1,751)			(798)			(841)			(733)			(1,145)									(3,175)			(2,719)
Net flows			(85)			(89)			(1,013)			(110)			(148)			68			(119)									(1,187)			(199)
Change in market value and other			(29)			958			538			1,639			738			2,051			(2,806)									1,467			(17)
Ending balance			$	22,925		$	23,039		$	22,170		$	22,645		$	21,116		$	20,526		$	18,407								$	22,925		$	21,116
Exchange-traded Products ("ETP") AUM
Beginning balance			$	3,111		$	2,923		$	2,825		$	2,621		$	2,586		$	2,574		$	3,442								$	2,825		$	3,442
Net flows			(13)			86			4			(5)			(80)			(124)			(67)									77			(271)
Change in market value and other			31			102			94			209			115			136			(801)									227			(550)
Ending balance			$	3,129		$	3,111		$	2,923		$	2,825		$	2,621		$	2,586		$	2,574								$	3,129		$	2,621
Mutual Fund and ETP AUM
Beginning balance			$	138,511		$	130,254		$	124,627		$	110,041		$	104,721		$	90,615		$	112,533								$	124,627		$	112,533
Sales - mutual fund			7,086			8,654			9,198			7,099			5,878			7,506			8,121									24,938			21,505
Redemptions - mutual fund			(6,778)			(6,300)			(8,428)			(6,813)			(7,064)			(8,057)			(9,478)									(21,506)			(24,599)
Net flows - ETP			(13)			86			4			(5)			(80)			(124)			(67)									77			(271)
Net flows - mutual fund and ETP			295			2,440			774			281			(1,266)			(675)			(1,424)									3,509			(3,365)
Change in market value and other			(1,520)			5,817			4,853			14,305			6,586			14,781			(20,494)									9,150			873
Ending balance			137,286			138,511			130,254			124,627			110,041			104,721			90,615									137,286			110,041
Talcott Resolution life and annuity separate account AUM [2]			14,800			15,282			14,944			14,809			13,669			13,123			11,538									14,800			13,669
Hartford Funds AUM			$	152,086		$	153,793		$	145,198		$	139,436		$	123,710		$	117,844		$	102,153								$	152,086		$	123,710

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS 

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Fee income [1]			$	12		$	14		$	12		$	11		$	13		$	12		$	13								$	38		$	38
Other revenue (loss) [2]			—			(2)			(8)			(1)			(21)			73			2									(10)			54
Net investment income			2			3			3			6			3			4			9									8			16
Net realized gains (losses)			3			61			6			24			13			24			(39)									70			(2)
Total revenues			17			76			13			40			8			113			(15)									106			106
Benefits, losses and loss adjustment expenses [3]			1			2			1			2			1			6			6									4			13
Insurance operating costs and other expenses [1]			17			45			13			17			9			29			21									75			59
Interest expense			58			57			57			57			58			57			64									172			179
Restructuring and other costs			(12)			—			11			17			87			—			—									(1)			87
Total expenses			64			104			82			93			155			92			91									250			338
Income (loss) before income taxes			(47)			(28)			(69)			(53)			(147)			21			(106)									(144)			(232)
Income tax expense (benefit)			(15)			(7)			(11)			(12)			(39)			3			(15)									(33)			(51)
Net income (loss)			(32)			(21)			(58)			(41)			(108)			18			(91)									(111)			(181)
Preferred stock dividends			6			5			5			5			6			5			5									16			16
Net income (loss) available to common stockholders			(38)			(26)			(63)			(46)			(114)			13			(96)									(127)			(197)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax			(2)			(62)			(6)			(24)			(12)			(26)			40									(70)			2
Integration and other non-recurring M&A costs, before tax [4]			2			30			—			—			—			—			—									32			—
Restructuring and other costs, before tax			(12)			—			11			17			87			—			—									(1)			87
Income tax expense (benefit) [5]			3			6			(2)			2			(18)			7			(8)									7			(19)
Core losses			$	(47)		$	(52)		$	(60)		$	(51)		$	(57)		$	(6)		$	(64)								$	(159)		$	(127)

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

[2]The three months ended September 30, 2020 included $(21) of income (loss) before tax, and the nine months ended September 30, 2021 and 2020 included $(11) and $43, respectively, of income (loss) before tax from the Company's retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021 and the gain on sale of $46, before tax, is included in realized gains (losses) in the nine months ended September 30, 2021.

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

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

[5]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.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	269		$	273		$	279		$	280		$	287		$	280		$	298								$	821		$	865
Tax-exempt			63			65			70			69			72			77			79									198			228
Total fixed maturities			332			338			349			349			359			357			377									1,019			1,093
Equity securities			23			10			10			12			9			6			12									43			27
Mortgage loans			45			45			43			44			44			42			42									133			128
Limited partnerships and other alternative investments [2]			259			191			112			152			83			(71)			58									562			70
Other [3]			11			18			14			19			14			21			(12)									43			23
Subtotal			670			602			528			576			509			355			477									1,800			1,341
Investment expense			(20)			(21)			(19)			(20)			(17)			(16)			(18)									(60)			(51)
Total net investment income			$	650		$	581		$	509		$	556		$	492		$	339		$	459								$	1,740		$	1,290
Annualized investment yield, before tax [4]			4.8		%	4.4		%	3.8		%	4.3		%	3.8		%	2.7		%	3.7		%							4.3		%	3.4		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			39.6		%	32.5		%	21.1		%	32.3		%	18.3		%	(15.3		%)	13.2		%							33.7		%	5.2		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*			3.0		%	3.1		%	3.1		%	3.2		%	3.3		%	3.4		%	3.3		%							3.1		%	3.3		%
Annualized investment yield, net of tax [4]			3.9		%	3.6		%	3.1		%	3.5		%	3.2		%	2.2		%	3.0		%							3.6		%	2.8		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*			2.5		%	2.5		%	2.6		%	2.6		%	2.7		%	2.8		%	2.7		%							2.5		%	2.7		%
Average reinvestment rate [5]			2.6		%	2.5		%	2.3		%	2.5		%	2.1		%	2.7		%	2.9		%							2.5		%	2.5		%
Average sales/maturities yield [6]			3.1		%	2.9		%	2.9		%	3.2		%	3.5		%	3.6		%	3.3		%							3.0		%	3.5		%
Portfolio duration (in years) [7]			4.5			4.6			4.8			4.9			5.0			5.0			4.8									4.5			5.0

[1]Includes income on short-term investments.

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

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

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

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

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

[7]Excludes certain short-term investments.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	200		$	203		$	207		$	207		$	210		$	206		$	216								$	610		$	632
Tax-exempt			47			49			52			52			53			57			58									148			168
Total fixed maturities			247			252			259			259			263			263			274									758			800
Equity securities			18			8			7			7			6			3			10									33			19
Mortgage loans			31			32			30			30			31			30			29									93			90
Limited partnerships and other alternative investments [2]			198			151			84			128			72			(62)			48									433			58
Other [3]			8			15			12			15			12			19			(14)									35			17
Subtotal			502			458			392			439			384			253			347									1,352			984
Investment expense			(15)			(16)			(14)			(14)			(13)			(11)			(13)									(45)			(37)
Total net investment income			$	487		$	442		$	378		$	425		$	371		$	242		$	334								$	1,307		$	947
Annualized investment yield, before tax [4]			4.8		%	4.5		%	3.9		%	4.4		%	3.9		%	2.6		%	3.6		%							4.4		%	3.4		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			37.3		%	31.4		%	19.2		%	32.9		%	19.2		%	(15.9		%)	13.1		%							31.6		%	5.2		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.0		%	3.1		%	3.2		%	3.2		%	3.3		%	3.5		%	3.2		%							3.1		%	3.3		%
Annualized investment yield, net of tax [4]			4.0		%	3.7		%	3.2		%	3.6		%	3.3		%	2.2		%	3.0		%							3.6		%	2.8		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			2.5		%	2.6		%	2.6		%	2.6		%	2.7		%	2.9		%	2.7		%							2.5		%	2.7		%
Average reinvestment rate [5]			2.6		%	2.5		%	2.3		%	2.6		%	2.0		%	2.7		%	2.9		%							2.4		%	2.4		%
Average sales/maturities yield [6]			3.0		%	2.9		%	2.8		%	3.0		%	3.4		%	3.5		%	3.2		%							2.9		%	3.4		%
Portfolio duration (in years) [7]			4.5			4.5			4.7			4.9			5.0			4.9			4.7									4.5			5.0

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable			$	69		$	69		$	71		$	72		$	76		$	73		$	76								$	209		$	225
Tax-exempt			14			15			16			16			17			18			19									45			54
Total fixed maturities			83			84			87			88			93			91			95									254			279
Equity securities			4			1			2			1			2			1			1									7			4
Mortgage loans			14			13			13			14			13			12			13									40			38
Limited partnerships and other alternative investments [2]			61			40			28			24			11			(9)			10									129			12
Other [3]			2			3			2			3			2			2			1									7			5
Subtotal			164			141			132			130			121			97			120									437			338
Investment expense			(5)			(5)			(5)			(6)			(4)			(5)			(5)									(15)			(14)
Total net investment income			$	159		$	136		$	127		$	124		$	117		$	92		$	115								$	422		$	324
Annualized investment yield, before tax [4]			5.4		%	4.7		%	4.4		%	4.3		%	4.1		%	3.2		%	4.0		%							4.8		%	3.7		%
Annualized limited partnerships and other alternative investment yield, before tax [4]			49.7		%	37.1		%	29.8		%	29.4		%	13.8		%	(12.4		%)	14.0		%							42.9		%	5.0		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]			3.5		%	3.5		%	3.5		%	3.5		%	3.8		%	3.6		%	3.7		%							3.5		%	3.7		%
Annualized investment yield, net of tax [4]			4.4		%	3.8		%	3.5		%	3.5		%	3.3		%	2.6		%	3.3		%							3.9		%	3.1		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]			2.8		%	2.8		%	2.9		%	2.9		%	3.1		%	3.0		%	3.0		%							2.8		%	3.0		%
Average reinvestment rate [5]			2.9		%	2.7		%	2.8		%	2.7		%	2.4		%	3.3		%	3.2		%							2.8		%	2.9		%
Average sales/maturities yield [6]			3.5		%	3.4		%	3.3		%	4.0		%	3.8		%	3.9		%	4.0		%							3.4		%	3.9		%
Portfolio duration (in years) [7]			5.6			5.7			5.8			6.0			6.2			6.1			5.9									5.6			6.2

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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020															Sept 30 2021			Sept 30 2020
Net Investment Income
Commercial Lines			$	421		$	382		$	327		$	363		$	316		$	204		$	277														$	1,130		$	797
Personal Lines			44			40			35			47			41			28			41															119			110
P&C Other Operations			22			20			16			15			14			10			16															58			40
Total Property & Casualty			487			442			378			425			371			242			334															1,307			947
Group Benefits			159			136			127			124			117			92			115															422			324
Hartford Funds			2			—			1			1			1			1			1															3			3
Corporate			2			3			3			6			3			4			9															8			16
Total net investment income by segment			$	650		$	581		$	509		$	556		$	492		$	339		$	459														$	1,740		$	1,290
			THREE MONTHS ENDED																														NINE MONTHS ENDED
Net Investment Income (Loss) From Limited Partnerships and Other Alternative Investments			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020															Sept 30 2021			Sept 30 2020
Total Property & Casualty			$	198		$	151		$	84		$	128		$	72		$	(62)		$	48														$	433		$	58
Group Benefits			61			40			28			24			11			(9)			10															129			12
Total net investment income (loss) from limited partnerships and other alternative investments [1]			$	259		$	191		$	112		$	152		$	83		$	(71)		$	58														$	562		$	70

[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 GAINS (LOSSES)

CONSOLIDATED

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Realized Gains (Losses)
Gross gains on sales			$	63		$	68		$	31		$	54		$	27		$	96		$	78								$	162		$	201
Gross losses on sales			(8)			(15)			(31)			(8)			(12)			(22)			(8)									(54)			(42)
Equity securities [1]			3			88			43			55			42			75			(386)									134			(269)
Net credit losses on fixed maturities, AFS			—			—			4			5			(1)			(20)			(12)									4			(33)
Change in ACL on mortgage loans			(2)			10			4			—			5			(22)			(2)									12			(19)
Intent-to-sell impairments			—			—			—			—			—			—			(5)									—			(5)
Other net gains (losses) [2]			14			(4)			29			(4)			(55)			2			104									39			51
Total net realized gains (losses)			70			147			80			102			6			109			(231)									297			(116)
Net realized gains, included in core earnings, before tax			(2)			1			(3)			(1)			—			(2)			(1)									(4)			(3)
Total net gains (losses) excluded from core earnings, before tax			68			148			77			101			6			107			(232)									293			(119)
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings			(14)			(32)			(15)			(21)			5			(21)			48									(61)			32
Total net realized gains (losses) excluded from core earnings, after tax			$	54		$	116		$	62		$	80		$	11		$	86		$	(184)								$	232		$	(87)

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

			Sept 30 2021						Jun 30 2021						Mar 31 2021						Dec 31 2020						Sept 30 2020
			Amount [1]			Percent			Amount			Percent			Amount			Percent			Amount [1]			Percent			Amount			Percent
Total investments			$	57,574		100.0		%	$	56,787		100.0		%	$	55,727		100.0		%	$	56,532		100.0		%	$	54,778		100.0		%
Asset-backed securities			$	1,207		2.7		%	$	1,321		3.0		%	$	1,435		3.2		%	$	1,564		3.5		%	$	1,490		3.4		%
Collateralized loan obligations			3,011			6.9		%	3,100			7.0		%	3,049			7.0		%	2,780			6.2		%	2,449			5.6		%
Commercial mortgage-backed securities			4,191			9.5		%	4,095			9.3		%	4,167			9.5		%	4,484			9.9		%	4,444			10.1		%
Corporate			18,861			43.0		%	19,161			43.5		%	19,495			44.8		%	20,273			45.0		%	19,416			44.1		%
Foreign government/government agencies			953			2.2		%	873			2.0		%	868			2.0		%	919			2.0		%	984			2.2		%
Municipal [2]			8,878			20.2		%	9,161			20.8		%	9,214			21.1		%	9,503			21.1		%	9,310			21.1		%
Residential mortgage-backed securities			3,286			7.4		%	3,520			8.0		%	4,025			9.3		%	4,107			9.2		%	4,548			10.3		%
U.S. Treasuries			3,555			8.1		%	2,792			6.4		%	1,354			3.1		%	1,405			3.1		%	1,403			3.2		%
Total fixed maturities, AFS			$	43,942		100.0		%	$	44,023		100.0		%	$	43,607		100.0		%	$	45,035		100.0		%	$	44,044		100.0		%
U.S. government/government agencies			$	6,640		15.1		%	$	6,031		13.7		%	$	4,837		11.1		%	$	5,214		11.6		%	$	5,650		12.8		%
AAA			6,183			14.1		%	6,350			14.4		%	6,759			15.5		%	6,848			15.2		%	6,789			15.4		%
AA			7,794			17.7		%	8,030			18.2		%	8,327			19.1		%	8,453			18.8		%	8,152			18.5		%
A			11,068			25.2		%	11,175			25.4		%	11,109			25.5		%	11,595			25.7		%	11,414			25.9		%
BBB			9,895			22.5		%	10,145			23.1		%	10,359			23.7		%	10,856			24.1		%	10,291			23.4		%
BB			1,769			4.0		%	1,724			3.9		%	1,604			3.7		%	1,507			3.3		%	1,222			2.8		%
B			550			1.3		%	521			1.2		%	557			1.3		%	523			1.2		%	480			1.1		%
CCC			38			0.1		%	41			0.1		%	47			0.1		%	31			0.1		%	37			0.1		%
CC & below			5			—		%	6			—		%	8			—		%	8			—		%	9			—		%
Total fixed maturities, AFS			$	43,942		100.0		%	$	44,023		100.0		%	$	43,607		100.0		%	$	45,035		100.0		%	$	44,044		100.0		%

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

[2]Primarily comprised of $6.6 billion in Property & Casualty, $2.1 billion in Group Benefits, and $0.2 billion in Corporate as of September 30, 2021.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

SEPTEMBER 30, 2021

			Cost or Amortized Cost			Fair Value			Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services			$	4,977		$	5,232		9.1		%
Technology and communications			2,948			3,191			5.5		%
Consumer non-cyclical			2,682			2,874			5.0		%
Utilities			1,880			2,042			3.5		%
Energy [1]			1,459			1,585			2.8		%
Capital goods			1,466			1,560			2.7		%
Consumer cyclical			1,351			1,420			2.5		%
Basic industry			793			836			1.5		%
Transportation			741			793			1.4		%
Other			916			944			1.6		%
Total			$	19,213		$	20,477		35.6		%
Top Ten Exposures by Issuer [2]
Government of Canada			$	277		$	279		0.5		%
Apple Inc.			213			236			0.4		%
IBM Corporation			201			220			0.4		%
Bank of America Corporation			190			206			0.4		%
Comcast Corporation			169			192			0.3		%
Morgan Stanley			170			186			0.3		%
State of California			169			185			0.3		%
New York City Municipal Water Finance Authority			176			184			0.3		%
Hyundai Motor Company			173			172			0.3		%
JPMorgan Chase & Company			165			171			0.3		%
Total			$	1,903		$	2,031		3.5		%

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

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

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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, certain M&A costs, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").

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

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

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

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

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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 gains and losses - Some realized 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 gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

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

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

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

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

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

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

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

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

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

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

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

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BASIC EARNINGS PER SHARE

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Income available to common stockholders per share			$	1.38		$	2.54		$	0.68		$	1.48		$	1.26		$	1.29		$	0.75								$	4.60		$	3.30
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax			(0.20)			(0.42)			(0.21)			(0.28)			(0.02)			(0.30)			0.65									(0.83)			0.33
Restructuring and other costs, before tax			(0.03)			—			0.03			0.05			0.24			—			—									—			0.24
Integration and other non-recurring M&A costs, before tax			0.02			0.10			0.03			0.03			0.04			0.04			0.04									0.15			0.11
Change in deferred gain on retroactive reinsurance, before tax			0.08			0.11			0.02			0.60			0.04			0.15			0.08									0.21			0.27
Income tax expense (benefit) on items excluded from core earnings			0.03			0.03			0.02			(0.11)			(0.09)			0.04			(0.17)									0.07			(0.20)
Core earnings per share			$	1.28		$	2.36		$	0.57		$	1.77		$	1.47		$	1.22		$	1.35								$	4.20		$	4.05

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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net Income available to common stockholders per diluted share			$	1.36		$	2.51		$	0.67		$	1.47		$	1.26		$	1.29		$	0.74								$	4.54		$	3.29
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax			(0.19)			(0.41)			(0.21)			(0.28)			(0.02)			(0.30)			0.64									(0.82)			0.33
Restructuring and other costs, before tax			(0.03)			—			0.03			0.05			0.24			—			—									—			0.24
Integration and other non-recurring M&A costs, before tax			0.02			0.10			0.02			0.03			0.04			0.04			0.04									0.15			0.11
Change in deferred gain on retroactive reinsurance, before tax			0.08			0.11			0.02			0.59			0.04			0.15			0.08									0.20			0.27
Income tax expense (benefit) on items excluded from core earnings			0.02			0.02			0.03			(0.10)			(0.10)			0.04			(0.16)									0.08			(0.22)
Core earnings per diluted share			$	1.26		$	2.33		$	0.56		$	1.76		$	1.46		$	1.22		$	1.34								$	4.15		$	4.02

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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020
Net income ROE			12.3		%	12.3		%	10.5		%	10.0		%	10.4		%	11.3		%	11.8		%
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains), excluded from core earnings, before tax			(2.3		%)	(1.9		%)	(1.8		%)	0.1		%	0.3		%	(0.2		%)	—		%
Restructuring and other costs, before tax			0.1		%	0.7		%	0.7		%	0.6		%	0.5		%	—		%	—		%
Loss on extinguishment of debt, before tax			—		%	—		%	—		%	—		%	—		%	0.6		%	0.6		%
Loss on reinsurance transaction, before tax			—		%	—		%	—		%	—		%	—		%	—		%	0.6		%
Integration and other non-recurring M&A costs, before tax			0.4		%	0.4		%	0.3		%	0.3		%	0.4		%	0.5		%	0.6		%
Changes in loss reserves upon acquisition of a business, before tax			—		%	—		%	—		%	—		%	—		%	—		%	0.7		%
Change in deferred gain on retroactive reinsurance, before tax			1.6		%	1.6		%	1.8		%	1.8		%	0.7		%	0.6		%	0.3		%
Income tax benefit on items not included in core earnings			(0.1		%)	(0.3		%)	(0.3		%)	(0.7		%)	(0.4		%)	(0.3		%)	(0.6)		%
Impact of AOCI, excluded from denominator of core earnings ROE			0.5		%	0.3		%	(0.3		%)	0.6		%	0.4		%	0.2		%	(0.7)		%
Core earnings ROE			12.5		%	13.1		%	10.9		%	12.7		%	12.3		%	12.7		%	13.3		%

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

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

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

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

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PROPERTY & CASUALTY

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income			$	430		$	704		$	251		$	468		$	404		$	310		$	224								$	1,385		$	938
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income			(487)			(442)			(378)			(425)			(371)			(242)			(334)									(1,307)			(947)
Net realized losses (gains)			(57)			(56)			(53)			(54)			21			(74)			173									(166)			120
Net servicing and other expense (income)			(2)			(6)			(2)			3			4			7			3									(10)			14
Income tax expense			99			155			55			99			73			88			54									309			215
Underwriting gain (loss)			(17)			355			(127)			91			131			89			120									211			340
Current accident year catastrophes			300			128			214			55			229			248			74									642			551
Prior accident year development			90			(149)			229			184			(75)			(268)			23									170			(320)
Underlying underwriting gain			$	373		$	334		$	316		$	330		$	285		$	69		$	217								$	1,023		$	571

COMMERCIAL LINES

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income			$	357		$	569		$	129		$	478		$	323		$	(66)		$	121								$	1,055		$	378
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income			(2)			(7)			(2)			(2)			(1)			—			(1)									(11)			(2)
Net investment income			(421)			(382)			(327)			(363)			(316)			(204)			(277)									(1,130)			(797)
Net realized losses (gains)			(51)			(47)			(44)			(45)			26			(64)			143									(142)			105
Other expense			5			6			4			10			8			11			6									15			25
Income tax expense (benefit)			82			122			24			105			52			(9)			28									228			71
Underwriting gain (loss)			(30)			261			(216)			183			92			(332)			20									15			(220)
Current accident year catastrophes			222			93			175			42			107			193			55									490			355
Prior accident year development			122			(105)			238			(17)			(57)			77			41									255			61
Underlying underwriting gain (loss)			$	314		$	249		$	197		$	208		$	142		$	(62)		$	116								$	760		$	196

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PERSONAL LINES

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income			$	51		$	118		$	135		$	170		$	79		$	371		$	98								$	304		$	548
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income			(6)			(5)			(4)			(4)			(5)			(3)			(2)									(15)			(10)
Net investment income			(44)			(40)			(35)			(47)			(41)			(28)			(41)									(119)			(110)
Net realized losses (gains)			(4)			(6)			(7)			(7)			(3)			(8)			23									(17)			12
Other expense (income)			1			—			—			—			2			(1)			—									1			1
Income tax expense			12			29			35			42			20			97			25									76			142
Underwriting gain			10			96			124			154			52			428			103									230			583
Current accident year catastrophes			78			35			39			13			122			55			19									152			196
Prior accident year development			(27)			(44)			(42)			(42)			(29)			(349)			(18)									(113)			(396)
Underlying underwriting gain			$	61		$	87		$	121		$	125		$	145		$	134		$	104								$	269		$	383

P&C OTHER OPERATIONS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income (loss)			$	22		$	17		$	(13)		$	(180)		$	2		$	5		$	5								$	26		$	12
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income			(22)			(20)			(16)			(15)			(14)			(10)			(16)									(58)			(40)
Net realized losses (gains)			(2)			(3)			(2)			(2)			(2)			(2)			7									(7)			3
Other income			—			—			—			(1)			—			—			—									—			—
Income tax expense (benefit)			5			4			(4)			(48)			1			—			1									5			2
Underwriting loss			3			(2)			(35)			(246)			(13)			(7)			(3)									(34)			(23)
Prior accident year development			(5)			—			33			243			11			4			—									28			15
Underlying underwriting loss			$	(2)		$	(2)		$	(2)		$	(3)		$	(2)		$	(3)		$	(3)								$	(6)		$	(8)

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.

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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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Net income margin			1.8		%	10.7		%	0.6		%	3.9		%	8.0		%	6.7		%	6.9		%							4.4		%	7.2		%
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains) excluded from core earnings, before tax			(0.9)		%	(1.7)		%	(1.1)		%	(1.1)		%	(0.6)		%	(0.1)		%	0.6		%							(1.3)		%	(0.1)		%
Integration and other non-recurring M&A costs, before tax			0.1		%	0.1		%	0.1		%	0.2		%	0.3		%	0.3		%	0.3		%							0.1		%	0.3		%
Income tax expense (benefit)			0.2		%	0.4		%	0.2		%	0.3		%	0.2		%	(0.1)		%	(0.1)		%							0.3		%	—		%
Impact of excluding buyouts from denominator of core earnings margin			—		%	—		%	—		%	—		%	—		%	0.1		%	0.1		%							—		%	0.1		%
Core earnings margin			1.2		%	9.5		%	(0.2)		%	3.3		%	7.9		%	6.9		%	7.8		%							3.5		%	7.5		%

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

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Return on Assets ("ROA")			14.4			13.8			13.1			15.6			14.4			14.1			12.0									13.8			13.5
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax			0.8			(0.5)			(0.5)			(1.8)			(1.6)			(2.9)			3.7									(0.1)			(0.2)
Effect of income tax expense			(0.2)			0.3			—			0.3			0.3			0.7			(1.0)									—			—
Return on Assets ("ROA"), core earnings			15.0			13.6			12.6			14.1			13.1			11.9			14.7									13.7			13.3

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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. 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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Total net investment income			$	650		$	581		$	509		$	556		$	492		$	339		$	459								$	1,740		$	1,290
Adjustment for loss (income) from limited partnerships and other alternative investments			(259)			(191)			(112)			(152)			(83)			71			(58)									(562)			(70)
Net investment income excluding limited partnerships and other alternative investments			$	391		$	390		$	397		$	404		$	409		$	410		$	401								$	1,178		$	1,220

PROPERTY & CASUALTY

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Total net investment income			$	487		$	442		$	378		$	425		$	371		$	242		$	334								$	1,307		$	947
Adjustment for loss (income) from limited partnerships and other alternative investments			(198)			(151)			(84)			(128)			(72)			62			(48)									(433)			(58)
Net investment income excluding limited partnerships and other alternative investments			$	289		$	291		$	294		$	297		$	299		$	304		$	286								$	874		$	889

GROUP BENEFITS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Total net investment income			$	159		$	136		$	127		$	124		$	117		$	92		$	115								$	422		$	324
Adjustment for loss (income) from limited partnerships and other alternative investments			(61)			(40)			(28)			(24)			(11)			9			(10)									(129)			(12)
Net investment income excluding limited partnerships and other alternative investments			$	98		$	96		$	99		$	100		$	106		$	101		$	105								$	293		$	312

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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 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Annualized investment yield			4.8		%	4.4		%	3.8		%	4.3		%	3.8		%	2.7		%	3.7		%							4.3		%	3.4		%
Adjustment for loss (income) from limited partnerships and other alternative investments			(1.8)		%	(1.3)		%	(0.7)		%	(1.1)		%	(0.5)		%	0.7		%	(0.4)		%							(1.2)		%	(0.1)		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.0		%	3.1		%	3.1		%	3.2		%	3.3		%	3.4		%	3.3		%							3.1		%	3.3		%

PROPERTY & CASUALTY

			THREE MONTHS ENDED																											NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Annualized investment yield			4.8		%	4.5		%	3.9		%	4.4		%	3.9		%	2.6		%	3.6		%							4.4		%	3.4		%
Adjustment for loss (income) from limited partnerships and other alternative investments			(1.8)		%	(1.4)		%	(0.7)		%	(1.2)		%	(0.6)		%	0.9		%	(0.4)		%							(1.3)		%	(0.1)		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.0		%	3.1		%	3.2		%	3.2		%	3.3		%	3.5		%	3.2		%							3.1		%	3.3		%

GROUP BENEFITS

			THREE MONTHS ENDED																								NINE MONTHS ENDED
			Sept 30 2021			Jun 30 2021			Mar 31 2021			Dec 31 2020			Sept 30 2020			Jun 30 2020			Mar 31 2020									Sept 30 2021			Sept 30 2020
Annualized investment yield			5.4		%	4.7		%	4.4		%	4.3		%	4.1		%	3.2		%	4.0		%							4.8		%	3.7		%
Adjustment for loss (income) from limited partnerships and other alternative investments			(1.9)		%	(1.2)		%	(0.9)		%	(0.8)		%	(0.3)		%	0.4		%	(0.3)		%							(1.3)		%	—		%
Annualized investment yield excluding limited partnerships and other alternative investments			3.5		%	3.5		%	3.5		%	3.5		%	3.8		%	3.6		%	3.7		%							3.5		%	3.7		%

41