Segment Information

12 Months Ended

Dec. 31, 2018

4. SEGMENT INFORMATION

The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty ("P&C") Other Operations, Group Benefits and Hartford Funds (previously referred to as "Mutual Funds"), as well as a Corporate category. The Company includes in the Corporate category discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), 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. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold. For further discussion of continued involvement in the life and annuity business sold in May 2018, see Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements.

The Company’s reporting segments, as well as the Corporate category, are as follows:

Commercial Lines

Commercial Lines provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the U.S., along with a variety of customized insurance products and risk management services including professional liability, bond, surety, and specialty casualty coverages.

Personal Lines

Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP.

Property & Casualty Other Operations

Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental exposures.

Group Benefits

Group Benefits provides employers, associations and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Hartford Funds

Hartford Funds offers investment products for retail and retirement accounts as well as ETPs and provides investment management and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support the variable annuity products within the life and annuity business sold in May 2018.

Corporate

The Company includes in the Corporate category investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution, discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold in May 2018.

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions.

Revenues



	For the years ended December 31,
	2018			2017		2016
Earned premiums and fee income:
Commercial Lines
Workers’ compensation	$	3,341		$	3,287	$	3,187
Liability	653			604		585
Package business	1,364			1,301		1,249
Property	618			604		577
Professional liability	254			246		231
Bond	241			230		218
Automobile	610			630		643
Total Commercial Lines	7,081			6,902		6,690
Personal Lines
Automobile	2,398			2,617		2,749
Homeowners	1,041			1,117		1,188
Total Personal Lines [1]	3,439			3,734		3,937
Property & Casualty Other Operations	—			—		—
Group Benefits
Group disability	2,746			1,718		1,506
Group life	2,611			1,745		1,512
Other	241			214		205
Total Group Benefits	5,598			3,677		3,223
Hartford Funds
Mutual fund and Exchange-Traded Products ("ETP")	932			888		779
Talcott Resolution life and annuity separate accounts [3]	100			104		106
Total Hartford Funds [2]	1,032			992		885
Corporate	32			4		3
Total earned premiums and fee income	17,182			15,309		14,738
Total net investment income	1,780			1,603		1,577
Net realized capital gains (losses)	(112		)	165		(110		)
Other revenues	105			85		86
Total revenues	$	18,955		$	17,162	$	16,291


[1]	For 2018, 2017 and 2016, AARP members accounted for earned premiums of $3.0 billion, $3.2 billion and $3.3 billion, respectively.


[2]	Excludes distribution costs of $188 and $184 for the years ended December 31, 2017, and 2016, respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.


[3]	Represents revenues earned on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment.

Net Income (Loss)



	For the years ended December 31,
	2018			2017			2016
Commercial Lines	$	1,212		$	865		$	994
Personal Lines	(32		)	(9		)	(9		)
Property & Casualty Other Operations	15			69			(529		)
Group Benefits	340			294			230
Hartford Funds	148			106			78
Corporate	124			(4,456		)	132
Net income (loss)	$	1,807		$	(3,131	)	$	896
Preferred stock dividends	6			—			—
Net income (loss) available to common stockholders	$	1,801		$	(3,131	)	$	896

Net Investment Income



	For the years ended December 31,
	2018		2017		2016
Commercial Lines	$	997	$	949	$	917
Personal Lines	155		141		135
Property & Casualty Other Operations	90		106		127
Group Benefits	474		381		366
Hartford Funds	5		3		1
Corporate	59		23		31
Net investment income	$	1,780	$	1,603	$	1,577

Amortization of Deferred Policy Acquisition Costs



	For the years ended December 31,
	2018		2017		2016
Commercial Lines	$	1,048	$	1,009	$	973
Personal Lines	275		309		348
Group Benefits	45		33		31
Hartford Funds	16		21		24
Corporate	—		—		1
Total amortization of deferred policy acquisition costs	$	1,384	$	1,372	$	1,377

Amortization of Other Intangible Assets



	For the years ended December 31,
	2018		2017		2016
Commercial Lines	$	4	$	1	$	—
Personal Lines	4		4		4
Group Benefits	60		9		—
Total amortization of other intangible assets	$	68	$	14	$	4

Income Tax Expense (Benefit)



	For the years ended December 31,
	2018			2017		2016
Commercial Lines	$	267		377		415
Personal Lines	(19		)	26		(23		)
Property & Casualty Other Operations	(7		)	24		(355		)
Group Benefits	84			38		83
Hartford Funds	38			63		43
Corporate	(95		)	457		(329		)
Total income tax expense (benefit)	$	268		$	985	$	(166	)

Assets



	As of December 31,
	2018		2017
Commercial Lines	$	31,693	$	31,281
Personal Lines	6,180		6,251
Property & Casualty Other Operations	3,351		3,568
Group Benefits	14,114		14,478
Hartford Funds	583		547
Corporate	6,386		169,135
Total assets	$	62,307	$	225,260